REQUEST FOR QUOTATION - GAIL (India)

REQUEST FOR QUOTATIONTO,GAIL WEBSITE VENDORIndiaVendor Code - 101019938RFQ No.: GAIL/PY/06/W004/3300010310/2K6005Dated : 10.05.2006Kind Attn : Mr/MsDear Sir/Madam,GAIL (India) Ltd. invites you to submit your offer in sealed envelope superscribing RFQ No. & Due date for thefollowing services in complete accordance with enquiry documents/attachments:Name of work :Bid Due Date & TimeOpening of Bids onValidity of Offer Upto : 24.09.2006Date of Pre Tender Conference: at _________Hrs: 24.05.2006 at 14:00 Hrs: 24.05.2006 at 15:00 Hrs (In case of Two Bid systemtender,unpriced bids shall be opened.)Earnest Money:EMD of RS.10000/- (Rupees Ten Thousand Only) should be deposited in the form of Demand Draft / BankGuarantee (BG in the enclosed format having a validity of two months beyond the bid validity) in favour ofGAIL(India)Ltd, payable at Pondicherry as per clause no.6.0 of GCC. Offers without EMD shall be summarily rejected.Instruction to Bidders :Bid is to be submitted in two parts (under two bid system). i.e techo-commercial bid(Part-I) should contain all technicaland commercial details along with EMD, original tender document signed and stamped on each page, exact copy ofSOR submitted in price bid (this copy however should not contain any prices quoted by the bidder in the price bidwhich is to be certified that the bidder has quoted for all the items without any deviation) in separate envelope andprice bid(part-II), contains only prices as per schedule of rates(SOR)duly signed and stamped by the Tenderer inseparate envelope. Both the envelopes shall be placed in one sufficient bid envelope and sealed. Bids are to besubmitted in sealed envelope superscribed with the above tender no. & due date and description of work. Bids receivedafter the due date & time are liable to be rejected. If not bidding please return the enquiry document along with theregret letter within the due date. The tenderer should quote in English both in figures as well as in words the rates andamounts tendered by him in the schedule of rates (SOR) of tender submitted by the bidder for each item and in such a

RFQ No.: GAIL/PY/06/W004/3300010310/2K6005Dated : 10.05.2006way that interpolation is not possible. The amount for each item should be worked out and entered and requisite totalgiven of all items, both in figures and in words. The tendered amount for the work shall be entered in the tender andduly signed and stamped by the tenderer. Tenders incomplete in any respect and/or the prescribed conditions are notfulfilled are liable to rejected.GAIL has to finalise the work/purchase within the time schedule. Hence it may not be feasible to seek clarification inrespect of in complete offers. Evaluation shall be made based on available documents. Prospective bidders are advisedto ensure that the bids are complete in all respect and confirm to our terms & conditions. Bids not complying withGAIL's requirement may be rejected without seeking any clarification.Bidders are requested to sign and stamp all the pages of tender documents.The bidder has not put on holiday by GAIL, or black listed by any other Govt. departments/ Public sectors.Bids should be valid for 120 days from the date of opening of tender. Bids thru telex/ telegram/fax/email are notacceptable.This RFQ is an integral and in separable part of the bid document.Bidders are advised to quote strictly as per terms & conditions of the tender document including GCC & SCC, Scope ofwork and not to deviate any stipulations/ exceptions. Once quoted, the bidders shall not make any subsequent pricechange whether resulting of arising out of any technical/commercial clarifications sought regarding the bid, even if anydeviation of exception may specifically stated in the bid. Such price changes shall render the offer liable for rejection.Tenderers are requested to quote as per tender terms & conditions and submit the documents as asked for without anydeviation failing which the tender shall be rejected without seeking any clarification.If desired, you may depute your representative with proper authorization for attending the bid opening. GAIL reservesthe right to accept or reject any or all tenders received at its absolute discretion without assigning any reason what soever.In case the bidder to down load the bidding documents from GAIL,s website (http://www.gailonline.com) or fromGovt.website: (http://govtenders.nic.in) are requested to contact Dy.Manager(C&P), GAIL(India) Limited, 4th Floor,Savitha Plaza, 100 Feet Road, Indira Gandhi Square, Pondicherry - 605 005, Phone:0413-2200932-934. incase of anyclarifications.Tender also to be submitted to the above address within the due date and time as mentioned in the tender.GAIL reserves the right to allow purchase preference to Central public sector undertakings as admissible under theprevailing Govt.of India Policy.Delivery/Completion Scheduele :PERIOD OF CONTRACT IS FOR TWO YEARS AND EXTENDABLE FOR ANOTHER SIX MONTHS ON THESAME RATES, TERMS AND CONDITIONS AT THE DISCRETION OF GAILTerms of Payment :MONTHLY PAYMENT SHALL BE RELEASED AFTER COMPLETION OF THE JOB AS CERTIFIED BYENGINEER-IN-CHARGE. PAYMENT SHALL BE RELEASED THROUGH E-BANKING. PLEASE CONFIRMDETAILS OF YOUR BANK ACCOUNT WITH SBI/ICICI.Price Reduction Schedule :APPLICABLE @ 0.5 % PER WEEK SUBJECT TO MAXIMUM OF 5% ORDER VALUEPerformance Bank Gaurantee :PBG FOR 10% ORDER VALUE TO BE SUBMITTED AS SECURITY DEPOSIT.Other Contractual Stipulations:AS PER SOR, GCC, SCOPE OF WORK ENCLOSEDGeneral Conditions of Contract :

RFQ No.: GAIL/PY/06/W004/3300010310/2K6005Dated : 10.05.2006AS PER GCCSpecial Conditions of Contract :AS PER SCC ENCLOSEDEnclosures :AS ENCLOSEDBid Evaluation Criterion:AS PER BEC ENCLOSEDAgreed upon Terms & Conditions:AS PER SOR, GCC, SCOPE OF WORK ENCLOSEDBids complete in all respects should reach office of Incharge (C&P), GAIL (India) Ltd., at the above addresson or before 14.00 hrs of the scheduled date. Bids received after the due date and time are liable to be rejected.GAIL reserves the right to accept or reject any or all tenders received at its absolute discretion without assigningany reason whatsoever.Thanking You,Yours truly,For & on behalf ofGAIL (India) Ltd.(Authorised Signatory)

Tender No.: PY/06/W004SCHEDULE OF RATESOut. lev.Item No. Service Description Qty. UOM Rate AmountITEM 00001 ARC MECH & ELECT. NARIMANAM ZONEPlant : 3140,NG Transmission - PondicherryI Taking delivery of spare valves( Flange)Taking delivery of spare valves( Flange)from GAIL stores and installation at allelevation of the p/l terminals bydismanling the existing one and bringing'back the old valve to storesA) Upto 4" 300# 20 EA ____________ _________B) Above 4" 300# 6 EA ____________ _________C) Upto 1" 800 # (NPT) 20 EA ____________ _________2 Sealent injection/Servicing of plug & ba 3,640 EA ____________ _________3 Charging of Stemsealing comp 40 EA ____________ _________4 Tightening of Gland nuts/Gland packing 10 EA ____________ _________5 Servicing of QOEC 280 EA ____________ _________6 Cleaning of filters 164 EA ____________ _________7 Cleaning of Scrubbers/slug catcher 22 EA ____________ _________8 Installation of Blinds/ Gaskets upto 4" 20 EA ____________ _________9 Installation of Blinds/ Gaskets above 4" 20 EA ____________ _________10 Measurement of PSP/Anode bed values 1,800 EA ____________ _________Measurement of PSP/Anode bed valuesalong the pipeline network in field11 Measrement of Ref Cell Value/ TR Para 25 EA ____________ _________Measrement of Ref Cell Value/ TR Parameters as directed by EIC or his rep12 Measurement of Earth pit resistance at 620 EA ____________ _________Measurement of Earth pit resistance atvarious terminals13 Maintanence of Switch gear Panel 6 EA ____________ _________14 Maintanence of Ceiling Fans 20 EA ____________ _________15 Maintanence of Tube lights fixtures&lamp 250 EA ____________ _________16 Providing manpower assitance for EmergenProviding manpower assitance for Emergency/shut down jobs and for the other works notcovered above as per the directions of EICA) Skilled Technician 300 D ____________ _________B) Helper 150 D ____________ _________17 Maintanence of condensate tank/pit inclu 6 EA ____________ _________Maintanence of condensate pump includinglifting of motor pump from 2 m depth & servicingcleaning greasing of motor & pumpPage 1

Tender No.: PY/06/W004ITEM 00001 ARC MECH & ELECT. NARIMANAM ZONEPlant : 3140,NG Transmission - Pondicherry18 Maintanence of condensate pump including 6 EA ____________ _________Maintanence of condensate pump includinglifting of motor pump from 2 m depth & servicingcleaning greasing of motor & pumpQuotation Item 00001 Total Value :TOTAL QUOTATION VALUE :Page 2

SUBJECT: - TENDER FOR ARC MECHANICAL & ELECTRICAL WORKS AT GAIL,NARIMANAM ZONE.1.0 INSTRUCTION TO BIDDERS: -INSTRUCTIONS TO BIDDERS1.1 GAIL (India) Limited, Having its office at PPCL Gas receiving terminal, villagepolagam, T.R.Pattinam, Karaikal is indending to award a Annual Rate Contract forMechanical & electrical works of the pipeline and Natural gas distributionterminals at Narimanam Zone. The total number of consumer of consumerterminals is 35 and GAIL has its own Gas collecting stations at Narimanam,Adiyakkamangalam, Kamalapuram, Nannilam and 2 SV stations at Thirumarugaland Marakanchavadi in Tamilnadu. The length of the pipelene under this region is150 Kms of various sizes.2.1 Special conditions of contract shall be read in conjunction with the GeneralConditions of Contract, specifications of work, drawings and any other documentforming part of this contract wherever the context so requires.3.1 Bids shall be submitted in a sealed cover superscribed TENDER. This shallcontain separately sealed envelopes super scribed as below: -Part – I TECHNO-COMMERCIAL ASPECTS OF OFFER.Part – II PRICE PART - DO NOT OPEN WITH PART - I3.2 Part - I of offer shall contain: -- Earnest Money Deposit in a sealed envelope as specified.- ORIGINAL Tender Document signed and stamped on each page. Cuttingand overwriting should be avoided. Proforma, Schedule of Quantity etc.,forming part of this shall not be filled in.- Covering letter, technical submissions and other details in accordance withBEC conditions.- Exact copy of SOR submitted in Price Bid (This copy however should notcontain any prices quoted by bidder in the Price Bid).3.3 Part - II of offer shall contain only duly filled Format of Schedule of Rates with allrates and amounts filled in against each item in the SOR. . Corrections if any inquoted rates must be signed and stamped. Any conditions mentioned in Part - IIshall not be taken into account and shall render the offer liable for rejection.3.4 The two envelopes containing Part - I & Part - II of the bid separately should beenclosed in a larger envelope duly sealed and super scribed with enquiry No. duedate & item.3.5 Bids complete in all respects should reach GAIL’s Office on or before Bid duedate & time . Fax , Telex, Telegraphic, E-Mail bids shall be rejected.

4.0 VALIDITY OF OFFFER:-4.1 Tender submitted by Tenderer shall remain valid for a minimum period of 120days from the date of opening of the Tenders. The tenderers shall not be entitledduring the said period, without the consent in writing of the Owner, to revoke orcancel their tender or to vary the tender or any term thereof. In case of tenderersrevoking or canceling their tenders or varying any terms in regard thereof withoutthe consent of Owner in writing, Owner shall forfeit Earnest Money paid by themalongwith their offers.5.1 EARNEST MONEY DEPOSIT(EMD): -Tenderer should submit E.M.D(Earnest Money Deposit) Rs.10,000/-(Rupees Tenthousand only) in the form of Demand Draft/Bank Guarantee(BG should be validfor two months beyond the bid validity ) infavour of GAIL (India) Ltd payable atPondicherry without which the offer shall be liable for rejection5.2 DEVIATION TO THE TENDER REQUIREMENTS: -No deviation from tender provisions is acceptable. The bidders are required tosubmit offers strictly as per the terms and conditions / specifications given in thetender document .5.3 EVALUATION OF PRICE BIDS:-The ‘Price Bids’ of only techno-commercially acceptable bidders shall beconsidered for price opening.6.0 CONTRACT AGREEMENT:-6.1 Contractor shall be required to execute Contract Agreement in Format provided inthe tender document on Judicial stamp paper within 15 days from the date ofwork order.. Stamp duty charge is to be born by the tenderer.6.2 This tender document together with the annexed documents, modification,deletions agreed upon by the Owner and Bidders & acceptance thereof shallconstitute a binding contract between the successful tenderer and the Ownerbased on terms contained in the aforesaid documents and the finally submittedand accepted prices7.0 Addendum / Corrigendum to the Tender document (if any) may be issued to theparty before expiry of the date of submission of tender.

5. Smoking inside the plant is strictly prohibited. No contract personnel are allowed topossess match boxes lighters cigarettes, beedies, transistors, mobile phones or anyother material which cause of fire hazards inside the plant.6. Contractor should deploy personnel who are medically fit. Regular health check-up ofthe contract personnel as per the factory’s act is to be complied by the contractor.7. In the event of accident, the contractor shall be required to fill injury report andsubmit to Fire & Safety Officer of GAIL immediately and ensure the compliance ofWorkmen’s Compensation Act and Rules made there under.8. Police verification of all the personnel deployed by the contractor is to be made withina month after mobilization and copy of the same is to be submitted to EIC.Contractor is also to verify details and credentials of all the personnel employed byhim and give an undertaking in prescribed format.9. The contractor’s personnel are required to display the passes on demand in the gateas well as inside the plant. A list of contract personnel on working / would be deputedshould be informed to EIC and GAIL security department.ANNEXURE - IIGENERAL STATURATY REQUIREMENTSFor execution of contracts within GAIL Premises.In addition to provisions stated under Section VIII on labour laws in the General ContractConditions of GAIL, following provisions are also required to be complied as per relevantLabour laws / Act.1. The payments/ wages paid to contract workers shall be verified by thedepartmental supervisor with his name and designation with the followingcertificate on the payment sheet : “Certified that the amount shown in Column No.________ has been paid to the workmen concerned in my presence on __________.4. The following Documents / forms will be maintained by the concerned contractor& furnished to GAIL (if required) for employing contract labour as per provisions ofthe Factories Act, 1948.(i) Register of Audit Workers - Form No. 12 ( Rule 78 )

12. The Contractor fully understands that he is liable to pay bonus to his employees inaccordance with the payment of Bonus Act 1965.13. The Contractor shall promptly furnish every information and document requiredby GAIL authorities for the purpose of fulfilling their obligations and shall renderall necessary assistance for the same.14 Notwithstanding any thing contrary to this, in the event of accident the contractorshall be required to fill injury report and submit to Fire & Safety Officer of GAILimmediately and ensure the compliance of Workmen’s Compensation Act andRules made there under.15 The Contractor shall within seven days of the close of every month, submit to theEIC/OIC concerned of GAIL or Engineer / Officer-In-Charge statement showingrecoveries of contributions in respect of employees employed by or through himand shall also furnish such information as GAIL 1 is required to furnish under theprovisions of the schemes under the Employees Provident funds and Misc.Provisions Act 1952 to the authorities under the said Act.16 The Contractor or his authorized representative shall be required to be present atthe appropriate place / site during working hours for the purpose of taking day-todayinstructions and coordinating the work assigned to him.17. the contractor will maintain proper discipline at his work-place and will ensurethat his workers do not remove or damage any departmental or Companyproperty.18. The Contractor shall, without fail, give upto-date information in writing of theattendance of the workers engaged by him.ANNEXURE - IIISTATUTORIAL REQUIREMENT OF PROVIDENT FUNDS

Contractor must ensure the compliance of the Employees Provident Funds andMiscellaneous Provisions Act, 1952. Accordingly, the following procedures should bestrictly followed :-1. It should be ensured that the certified copy of challan of the payment made by theContractor towards contribution to the Provident Funds in respect of ContractLabour engaged for the works of GAIL, is enclosed with the bill for the monthimmediately preceding to the month on which the bill is being raised beforeforwarding the same to the Finance Deptt. for payment.2. The Contractor should also enclose a copy of Form V / V - A with the bill so as toindicate the coverage of the workmen employee on his rolls as working for GAIL /other Companies and it should be ensured that the PF Contribution covers allworkers engaged for GAIL’s work.3. Each bill of the contractor should also be supported with the ‘Payment Certificate’to be supplied, which should be issued by the concerned Head of the Deptt. andalso counter-singed by the work Supervisor / Representative / Engineer-In-Chargeof GAIL, under whose functional control the contractor is performing the entrustedwork. Through such Certificate, it is to ensure that :-a. The payments made to the Contract labour should not be less than the MinimumWages prescribed and are paid before the expiry of seventh day of followingmonth.b. That the payments have been made to all the Contract Labour employed by theContractor in the presence of authorised representative.c. That the necessary payments Records / Form - 12 / Leave Register / Books asapplicable under Labour and Industrial Law and other necessary records havebeen maintained by the Contractor.d. That there is no outstanding dues of the Contractor towards any of the Contractlabour employed by him for the works of GAIL.4. The Finance deptt. should entertain only of those bills which are supported by theenclosures as indicated above.

BID EVALUATION CRITERIA(To be furnished alongwith technical portion of bid)The tenderer must essentially submit alongwith the bid following information toauthenticate its technical capacity and suitability for undertaking the contract.1) Experience: Must have experience in maintenance of electrical, mechanical ,pipeline & general equipments.Tenderer should have successfully completed atleast one work of similar nature having value of Rs.1.20 Lakhs during the last 5to 7 years . Details of experience along with copies of work order/completioncertificate should be furnished alongwith technical bid .2) Turnover :- The minimum Annual turnover of the bidder should be 1.20 lakhsduring preceding any one of the three years. Copies of P&L A/c and Balancesheet are to be furnished as a proof. The Net worth and Return on equity of thefirm should be positive during the last financial year (2004-2005). Bidder shouldhave minimum working capital of Rs.0.47 lakhs as per the last audited financialyear. If the bidder working capital is inadequate, the bidder should supplementthis with the vendor bank having net worth not less than 100 crores3) P. F. No. : The tenderer must have Permanent P. F. account no. from regional P.F. Commissioner. The copy of the same should be furnished alongwith technicalbid, without which his offer will not be considered.4) EMD : Tenderer should submit E.M.D(Earnest Money Deposit) Rs.10000/-(Rupees ten thousand only) in the form of Demand Draft/Bank Guarantee(BG shouldbe valid for two months beyond the bid validity ) infavour of GAIL (India) Ltd payableat Pondicherry without which the offer shall be liable for rejection

------------SCOPE OF WORK AND SPECIAL CONDITIONS OF CONTRACT FOR ANNUALRATE CONTRACT OF MECHANICAL &ELECTRICAL WORKS AT GAIL,NARIMANAM ZONE2. Scope of Work: The natural gas metering terminals and associated pipeline network is to bemaintained in such a way that the gas supply to the consumers are not getting affected anduninterrupted gas supply is maintained. The scope includes routine preventive/predictivemaintenance of all mechanical and electrical equipments as per the directions of Engineer inCharge (EIC) or his authorized representative and attending break down maintenance calls whichincludes planned/ unplanned shut down activities on round the clock basis. The contractor has todeploy a minimum of two qualified technicians of mechanical/electrical ITI/diploma holders (or)a person having sufficient work experience in relevant field on daily basis at PPCL terminal baseoffice during normal working hours ( 0900 hrs to 1800 hrs with an half hour lunch break) toattend the maintenance works. However in case of emergency, the contractor may have toarrange for more manpower to complete the job without any delay.3. Contract Period: - Two Years from the Date of Issue of LOI . The contract is extendable foranother period of six months on the same rates, terms and conditions.4. Contract Work Value:-a) The value of work under this contract shall be per attached Schedule of Rates. Actual workmay vary to any extent. Minimum value of work under this contract is not guaranteed as thequantities indicated in schedule of rates are only tentative.b) The rates quoted by the contractor in accordance with Schedule of Rates shall be inclusive ofall taxes, duties, and any other expenditure incurred by the contractor.5. Safe custody of materials:-The contractor shall make his own arrangement for the safecustody of the materials brought by him to the site, while the job in progress.6. Defect liability period:-The contractor shall guarantee for the work done for a period ofTHREE months from the date of completion of work. Any damage or defect which my arise orlie undiscovered at the time of completion of work, related any way the equipment of materialmaintained by him, or in the workmanship shall be rectified or replaced by the contractor at theirown expense or in default GAIL may get it rectified by any other agency at the risk and cost ofthe contractor.7 Measurement and billing: -All measurement shall be in metric system. All the works inprogress will be jointly measured by the representative of the Engineer-in-charge and thecontractor’s authorized agent progressively. Such measurement will be recorded in measurementbook by Engineer-in-charge or his authorized representative.The contractor will submit a bill in approved proforma in Quadruplicate to the Engineer-inchargeof the work giving abstract and detailed measurements for the various item executedduring a month before expiry of the 1st week of the succeeding month.

a) Monthly on running account payment shall be made to the contractor against bill within10 days of receipt of bill from the contractor.b) Income tax as per rules of the total value of work shall be deducted at source.8 Completion certificate & Final bill:-The Engineer-in-charge shall normally issue to thecontractor, the completion certificate within one week after receiving from the completiondocuments and satisfying himself that the work has been completed in all respect in accordancewith the instructions, specifications of the contract documents. The contractor will also provideno claim and no dues certificate before obtaining completion certificate.The contractor after obtaining the completion certificate is eligible to present the final bill for thework executed by him. The final bill shall be prepared on the basis of the final measurementsentered in the measurement book/sheets. The final bill shall be prepared in the prescribedproforma with reference to total work covered by the contract, such bill to be drawn up byapplying the applicable rates, specified in the schedule or rates to the relative measuredquantities. The final bill shall also include all additional claims of the contractor and will beconsidered as conclusive.9. Recovery: -1. Income tax shall be deducted from your bill as per income tax rules.2. Cost of any damage/loss of the property of GAIL, by the contractor shall be recovered.GAIL’S decision in this regard shall be final, binding and conclusive.3. Contractor shall be responsible for safe custody of any equipment handed over to him. Incase of loss theft, the purchase cost of the equipment plus 25% departmental chargesshall be recovered from the contractor. GAIL’S decision in this regard shall be final,binding and conclusive.10 Penalty: - If the contractor fails to execute the scope under ARC in line with the requirementof GAIL, penalty will be imposed at double the rate of quoted value for the items not executed.During execution of work, if the contractor abandons the work in between or causing delay thesame item will be executed through other agencies at your risk and cost.11 Sub letting of contract: - The job under this contract shall not be sub-contracted to anotherparty with out prior permission of GAIL.12 Quoted Rate:-The rates quoted under this tender will remain firm during the tenancy ofcontract and no escalation shall be permissible for any reason, whatsoever, after reward of thecontract. While quoting unit rate, the contractor must load the value for providing of safety kit(helmet, shoes, uniform) to the employees and the cost of medical check up.13 Insurance:-The contractor shall arrange for full insurance for all workers engaged on the jobas per relevant act, rules and regulations etc. under workmen’s compensation insurance.14 Termination of contract:-The work under this contract will be awarded for one year initially but if in the opinion ofEngineer in Charge, contractor’s performance is not found satisfactory, the contract will beterminated by giving a 7 days notice. Any loss incurred by the company on this account shall be

ecovered from the contractor. GAIL may engage another agency to complete pending jobsunder this contract at the risk and cost of the contractor.16. Delay in work because of natural calamities:-The terms and conditions mutually agreedupon with respect of this agreement shall be subject to force majure. Neither the contractor northe company shall be considered in the performance of its obligations hereunder if suchperformance is prevented or delayed because of war, epidemic, accidents, fire, wind, flood ofbecause of any low, order proclamation regulation or ordinance of Government or act of god.Should one or both parties be prevented from fulfilling their contractual obligations by a State offorce majure lasting continuously for a period of on week, the two parties should consult eachother regarding future implication of the contract.17. Safety:-Contractor shall comply with all applicable Safety laws and other laws including butnot limited to the Contract Labour (R&A) Act, 1970, etc. Contractor should be conversant withlabour laws and regulations in practice and shall keep the GAIL, harmless and indemnifiedagainst any action brought against it for any violation/non-compliance of any act etc.Contractor’s should be registered with the Labour Commissioned and such details be submittedto GAIL, at Contractor’s own cost.18 Engineer-in-charge: -The Engineer-in-charge shall look after general supervision anddirection of the work. He will be authorized to stop the work, whenever such stoppage may benecessary to ensure proper execution of the contract. He shall also have authority to reject allwork which do not confirm to the specification. The Engineer-in-charge reserves the right tosuspend the work of part thereof at any time and no claim whatsoever on this account will beentertained. In case of any dispute, the contractor may appeal to the Engineer-in-charge whosedecision shall be final and binding.19. Insurance and liabilities:-The contractor agrees to and does hereby accept full and exclusive liability for the compliancewith all obligations imposed and further agrees to defend, indemnify and hold owner harmlessfor any liability or penalty which may be imposed by the Central, State or Local Authority alsofrom all claims, suits or proceedings that may be brought against the Owner arising under,growing out of or by reason of the work provided for by this contract whether brought byemployees of the contractor, by third parties or any central Government, State Government orLocal Authority for the following Act (s) and liability (s).1. Employees State Insurance Act2. Workmen compensation and Employer’s Liability Insurance3. Any other insurance required under law or regulations or by owner4. Accident or injury to workmen5. Damages to property or to any persons or any third party6. The contractor shall take insurance under-workmen compensation7. Act for all his workmen to be deployed for the work and submit a copy of the policybefore commencement of work, if awarded.

The contractor shall indemnify and keeps the owner harmless of all claims, damages orcompensation payable at law in respect or in consequence of any accident, or damages arisingunder or by reason of this agreement or execution of contract.20. Statutory Compliance under labour & Industrial Law:-a) The contractor (which shall include the contracting firm/company) should be anindependent business establishment/firm having its own P.F. registration and it shallbe solely liable to obtain and to abide by all necessary licences/permissions from theconcerned authorities as provided under the various labour laws, legislationsincluding labour licence from the competent authority under the contract Labour(Regulation & Abolition) Act 1970.b) The contractor should have independent PF code issued by concerned RPFC.c) The personnels deployed must be on his rolls and covered under work men’scompensation act.d) The contractor shall be bound to discharge obligations as provided under variousstatutory enactments including the Employees provident Fund & Miscellaneous Act.1952, ESI Act 1948, contract Labour (Regulation and abolition) Act 1970, Minimumwages Act 1948, payment of Wages Act 1936, Workmen’s compensation Act. 1923and other relevant Acts, Rules, adn Regulations enforced from time to time.e) The contractor shall be responsible for necessary contributions towards, PF, familypension, ESIC, or any other statutory payment to Government Agencies as applicableunder the law in respect of the contract and of personnel employed by the contractorfor rendering services to GAIL and shall deposit the required amount with theconcerned statutory authorities on or before due dates. Each contractor shall obtain aseparate PF no. from the concerned Regional provident fund commissioner andsubmit necessary proof of having deposited the employees as also the employer’scontribution to the provident fund. The contractor shall also be responsible forpayment of any administration/inspection charge thereof, wherever applicable, inrespect of the personnel deployed by him relating to the work of GAIL.f) The contractor shall regularly submit all relevant records/documents in this regards toGAIL representative for verification and upon such satisfaction only, GAIL willallow reimbursement of the amounts paid.g) The contractor shall ensure and will be solely responsible month to the personneldeployed by him. The payment of wages to the personnel to be deployed by thecontractor shall be made in the presence of the representative of the company. Thecontractor shall be directly responsible and indemnify the company against allcharges, claims, dues, etc. arising out of disputes relating to the dues and employmentof personnel deployed by him.h) The contractor shall indemnify the company against all losses or damages caused to iton account of acts of the personnel deployed by the contractor.i) The contractor shall ensure regular and effective supervision of personnel deployedby him.j) No contract employee below age of eighteen years shall be deployed on the work.

21.Special Conditions of Contract:1. The Schedule of quantities given in the tender document is arrived based on themaintenance requirement of equipment and periodicity of maint will be decided by EIC.2. GAIL will provide transportation arrangement to the technicians deployed by thecontractor for attending the maintenance calls at various sites and all the works to beexecuted in the presence of GAIL representatives.3. Contractor has to provide uniform, safety shoes for the persons engaged by him.4. All statutory payments like Service Tax, educational cess, PF etc., to be paid by thecontractor and proof of payment to be submitted along with the Running account bills.This is required from 2 nd RA Bill only.5. Contractor has to ensure that minimum wages are paid to the persons deployed by themas per the rates of Central Government. Wages on or before 7 th of succeeding month &copy of wage sheet is to be submitted to EIC from time to time. Yearly Bonus Paymentis to be made as per the relevant provisions.6. GAIL will not be liable for giving permanent employment to the persons deployed by thecontractor/firm.7. GAIL will make necessary arrangements for obtaining gate Pass for entering PPCLterminal on receipt of a request letter from the contractor.8. Water & Electricity will be provided free of cost by GAIL subject to availability.9. The persons deployed by the contractor has to maintain proper discipline/decorum in theoffice premises and in case of any misbehavior with GAIL representative, GAIL has theright to remove the person without assigning any reason and contractor has to provideimmediate replacement of technician .10. The contractor has to provide minimum tools and tackles to carry out the maintenancework as per the details given in Annexure.11. Contractor has to maintain a measurement book for the items being executed under ARCand the same to be submitted along with Invoices.

ANNEXURELIST OF MINIMUM REQUIRED TOOL & TACKLES, EQUIPMENT & INSTRUMENTSAPPROACH CAPACITY & RANGE & ACCURACY TO BE USED FOR MAINTENACE BYCONTRACTOR & NOT SUPPLIED BY GAIL.A. STANDARD TOOL KIT: ONE SET for each technician1. Double end spanner 6mm to 32mm SET2. Ring Spanner 6 mm to 32 mm SET3. Hexagonal head hammer 500gm ONE4. Cutting chisel ONE5. Allenkey set 1mm to 10mm SET6. Slide wrench ONE7. Screw driver 8”, 10”(insulated) SET8. Line tester (insulated) ONE9. Plier combination 8” (insulated) ONE10. Plier nose type 6” (insulated) ONE11. Hacksaw blade with frame ONEB. SPECIAL TOOL SET TO BE KEPT AS COMMON FACILITY:-1. MULTIMETER ONE2. BRASS HAMMER TWO3. MEGGER 500V ONE

ANNUAL TURNOVERFORMAT-AApplicant’s Legal Name:JV Partner’s Legal Name:Date:Tender No.:Page…of….Each Bidder must fill in this form (Single Entity)Annual Turnover data for the last 3 yearsYear Currency Amount Ex. Rate(*) Amount (INR)(*)Year 1:Year 2:Year3:Each member of a JV/Consortium must fill in this form (JV/Consortium)Annual Turnover data for the last 3 yearsYear Currency Amount Ex. Rate(*) Amount (INR)(*)Leader ofJV/ConsortiumYear 1:Year 2:Year3:Partner AYear 1:Year 2:Year 3:Partner BYear 1:Year 2:Year 3:Total:1. The information supplied should be the Annual Turnover of theapplicant and each member of a JV/Consortium.2. A brief note should be appended describing thereby details of turnoveras per audited result.(*) to be filled by Owner/CSignature of Bidder

ANNUAL TURNOVERFORMAT-BApplicant’s Legal Name:Date:JV Partner’s Legal Name:Tender No.:Page…of….Each Bidder or member of a JV/Consortium must fill in this formFINANCIAL DATA FOR LAST AUDITED FINACIAL YEARDescriptionYearAmount Ex. Rate(*) Amount (INR)(*)1. Current Assets2. Current Liabilities3. Working Capital (1-2)4. Net Wroth OwnersFunds (Paid up sharecapital and free reserves &surplus)5. Profits before taxes6. Return on Equity (5/4) x100Attached are copies of the audited balance sheets, including all related note andincome statement for the last Audited Financial Year, as indicated above,complying with the following conditions- All such documents reflect the financial situation of the bidderor partner to a JV/Consortium, and not sister or parentcompanies.- Historic financial statement must be audited by a certifiedaccountant.- Historic financial statements must be completed, including allnotes to the financial statements.- Historic financial statement must correspond to accountingperiods already completed and audited (no statement for partialperiods shall be requested or accepted)(*) to be filled by Owner/ConsultantSignature of Bidder

REJECTION CRITERIA FOR BIDSDeviations to the following clauses are Rejection Criteria for Bids:I. Firm PriceII. EMD/Bid BondIII. Scope of workIV. SpecificationsV. Price ScheduleVI. Delivery / Completion ScheduleVII. Period of Validity of bidVIII. Price Reduction ScheduleIX. Performance Bank Guarantee / Security DepositX. GuaranteeXI. Arbitration / Resolution of DisputeXII. Force MajureXIII. Applicable LawsXIV. EPF Registration in case of Domestic bidderXV. Non-Submission of Documents as per BEC and otherTender Conditions.Any other condition specifically mentioned in the tender document elsewhere thatnon-compliance of the clause lead to rejection of the bid.

CHECK LISTTenderers are requested to check the following documents are enclosed before submitthe tender.1. Copies of Balance sheet & Profit & Loss account enclosed as per BEC Yes/ NoIncluding latest balance sheet and P&L Account (2004-2005)2. Copies of work orders & completion certificates enclosed as per BEC Yes/ No3. Copies of PF Registration certificate (PF No.) enclosed Yes/No4. EMD Rs.10000/-(Ten thousand only) by DD enclosed Yes/No5. All the pages of tender documents & GCC signed & stamped Yes/No6. All the items as per SOR quoted signed & stamped Yes/No

PROFORMA FOR BANK GUARANTEE FOR EARNEST MONEY DEPOSIT(To be stamped in accordance with the Stamp Act)Ref:----------------ToM/s GAIL (India) Limited,4 th Floor, Savitha Plaza,Indira Gandhi Square,Pondicherry-605 005.Bank Guarantee No.----------------Date-----------------------------------Dear Sir (s),In accordance with Letter inviting Tender under your reference No.---------------------M/s---------------------------------------------------------------having their Registered/Head Office at --------------------------------------------------------(hereinafter called Bidder) wish to participate in the said tender for--------------------------------------------------------------------------As an irrevocable Bank Guarantee against Earnest Money Deposit for an amount of--------- is required tobe submitted by the Bidder as a condition precedent for participation in the said Tender which amount inliable to be for 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 by GAIL (India) Limited., theamount ---------------------------------------------------------------------without any reservation, protest, demurand recourse. Any such demand made by GAIL, shall be conclusive and binding on us irrespective of anydispute or difference raised by the Bidder.This guarantee shall be irrevocable and shall remain, valid upto ---------------------(This date should be 180days (One hundred & eighty days) after the date finally set out foe closing of tender). If any furtherextension of the guarantee is required the same shall be extended to such required period on receivinginstructions from M/s -------------------------------------------------------------------- on whose behalf thisguarantee is issued.In Witness whereof the Bank, through its authorized, has set its hand and stamp on this ----------------------- day of ---------------------- 200 -------------------- at ----------------------------WITNESS:(SIGNATURE)(NAME)(OFFICIAL ADDRESS)(SIGNATURE)(NAME)Designation with Bank StampAttorney as per -----------------------

Power of Attorney No.Date:-----------------------

General Conditions of ContractSECTION- I DEFINITIONS1. Definition of Terms: 1.1 In this CONTRACT (as here-in-after defined) the following wordsand expressions shall have the meanings hereby assigned to themexcept where the context otherwise required.1.1.1 The EMPLOYER/COMPANY/GAIL means GAIL (INDIA) LTD., apublic limited company, incorporated under the Company’s act1956 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 orCompany or corporation whose tender has been accepted by theEMPLOYER and includes the CONTRACTOR's legalRepresentatives his successors and permitted assigns.1.1.3 The ENGINEER/ENGINEER-IN-CHARGE" shall mean the persondesignated from time to time by the GAIL and shall include thosewho are expressly authorized by him to act for and on his behalffor operation of this CONTRACT.1.1.4 The "WORK" shall mean and include all items and things to besupplied/ done and services and activities to be performed by theCONTRACTOR in pursuant to and in accordance withCONTRACT or part thereof as the case may be and shall includeall extra, additional, altered or substituted works as required forpurpose of the CONTRACT.1.1.5 The "PERMANENT WORK" means and includes works which willbe incorporated in and form a part of the work to be handed overto the EMPLOYER by the CONTRACTOR on completion of theCONTRACT.1.1.6 "CONSTRUCTION EQUIPMENT" means allappliances/equipment and things whatsoever nature for the use inor for the execution, completion, operation, or maintenance of thework or temporary works (as hereinafter defined) but does notinclude materials or other things intended to form or to beincorporated into the WORK, or camping facilities.1.1.7 "CONTRACT DOCUMENTS" means collectively the TenderDocuments, Designs, Drawings, Specification, Schedule ofQuantities and Rates, Letter of Acceptance and agreed variationsif any, and such other documents constituting the tender andacceptance thereof.1.1.8 CONSULTANT: means ------------------------------- who are theconsulting engineer to the Employer for this project and havingregistered office at --------------------------------------------------------------------------------------------------------------------------------------------------------1.1.9 The "SUB-CONTRACTOR" means any person or firm orCompany (other than the CONTRACTOR) to whom any part ofthe work has been entrusted by the CONTRACTOR, with thewritten consent of the ENGINEER-IN-CHARGE, and the legalrepresentatives, successors and permitted assigns of suchperson, firm or company.1

General Conditions of Contract1.1.10 The "CONTRACT” shall mean the Agreement between theEMPLOYER and the CONTRACTOR for the execution of theworks including therein all contract documents.1.1.11 The "SPECIFICATION" shall mean all directions the varioustechnical specifications, provisions attached and referred to theTender Documents which pertain to the method and manner ofperforming the work or works to the quantities and qualities of thework or works and the materials to be furnished under theCONTRACT for the work or works, as may be amplified ormodified by the GAIL or ENGINEER-IN-CHARGE during theperformance of CONTRACT in order to provide the unforseenconditions or in the best interests of the work or works. It shallalso include the latest edition of relevant Standard Specificationsincluding all addenda/corrigenda published before entering intoCONTRACT.1.1.12 The "DRAWINGS" shall include maps, plans and tracings or printsor sketches thereof with any modifications approved in writing bythe ENGINEER- IN-CHARGE and such other drawing as may,from time to time, be furnished or approved in writing by theENGINEER-IN-CHARGE.1.1.13 The "TENDER" means the proposal along with supportingdocuments submitted by the CONTRACTOR for consideration bythe EMPLOYER.1.1.14 The "CHANGE ORDER" means an order given in writing by theENGINEER-IN-CHARGE to effect additions to or deletion fromand alteration in the works.1.1.15 The "COMPLETION CERTIFICATE" shall mean the certificate tobe issued by the ENGINEER-IN-CHARGE when the works havebeen completed entirely in accordance with CONTRACTDOCUMENT to his satisfaction.1.1.16 The "FINAL CERTIFICATE" in relation to a work means thecertificate regarding the satisfactory compliance of variousprovision of the CONTRACT by the CONTRACTOR issued by theENGINEER-IN- CHARGE/EMPLOYER after the period of liabilityis over.1.1.17 “DEFECT LIABILITY PERIOD” in relation to a work means thespecified period from the date of COMPLETION CERTIFICATEupto the date of issue of FINAL CERTIFICATE during which theCONTRACTOR stands responsible for rectifying all defects thatmay appear in the works executed by the CONTRACTOR inpursuance of the CONTRACT and includes warranties againstManufacturing/Fabrication/ Erection/Construction defects coveringall materials plants, equipment, components, and the like suppliedby the CONTRACTOR, works executed against workmanshipdefects.1.1.18 The "APPOINTING AUTHORITY" for the purpose of arbitrationshall be the CHAIRMAN and MANAGING DIRECTOR or anyother person so designated by the EMPLOYER.1.1.19 "TEMPORARY WORKS" shall mean all temporary works of everykind required in or about the execution, completion ormaintenance of works.2

General Conditions of Contract1.1.20 "PLANS" shall mean all maps, sketches and layouts as areincorporated in the CONTRACT in order to define broadly thescope and specifications of the work or works, and allreproductions thereof.1.1.21 "SITE" shall mean the lands and other places on, under, in orthrough which the permanent works are to be carried out and anyother lands or places provided by the EMPLOYER for the purposeof the CONTRACT.1.1.22 "NOTICE IN WRITING OR WRITTEN NOTICE" shall mean anotice in written, typed or printed characters sent (unless deliveredpersonally or otherwise proved to have been received by theaddressee) by registered post to the latest known private orbusiness address or registered office of the addressee and shallbe deemed to have been received in the ordinary course of post itwould have been delivered.1.1.23 "APPROVED" shall mean approved in writing includingsubsequent 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 bya Fax/Letter to Tenderer(s) that the tender has been accepted inaccordance with the provisions contained in the letter.1.1.25 "DAY" means a day of 24 hours from midnight to midnightirrespective of the number of hours worked in that day.1.1.26 "WORKING DAY" means any day which is not declared to beholiday 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 theconstruction of works are given in the metric system and all workin the project should be carried out according to the metric system.All documents concerning the work shall also be maintained in themetric system.1.1.29 "VALUE OF CONTRACT” or “TOTAL CONTRACT PRICE” shallmean the sum accepted or the sum calculated in accordance withthe prices accepted in tender and/or the CONTRACT rates aspayable to the CONTRACTOR for the entire execution and fullcompletion of the work, including change order.1.1.30 "LANGUAGE FOR DRAWINGS AND INSTRUCTION" All thedrawings, titles, notes, instruction, dimensions, etc. shall be inEnglish Language.1.1.31 "MOBILIZATION" shall mean establishment of sufficientlyadequate infrastructure by the CONTRACTOR at "SITE"comprising of construction equipments, aids, tools tacklesincluding setting of site offices with facilities such as power, water,communication etc. establishing manpower organisationcomprising of Resident Engineers, Supervising personnel and anadequate strength of skilled, semi-skilled and un-skilled workers,who with the so established infrastructure shall be in a position to3

General Conditions of Contractcommence execution of work at site(s), in accordance with theagreed Time Schedule of Completion of Work. "MOBILISATION"shall be considered to have been achieved, if the CONTRACTORis able to establish infrastructure as per Time Schedule, where sowarranted in accordance with agreed schedule of workimplementation to the satisfaction of ENGINEER-IN-CHARGE/EMPLOYER.1.1.32 "COMMISSIONING" shall mean pressing into service of thesystem including the plant(s), equipment(s), vessel(s), pipeline,machinery(ies), or any other section or sub-section ofinstallation(s) pertaining to the work of the CONTRACTOR aftersuccessful testing and trial runs of the same."COMMISSIONING" can be either for a completed system or apart of system of a combination of systems or sub-systems andcan be performed in any sequence as desired by EMPLOYER andin a manner established to be made suited according to availabilityof pre-requisites. Any such readjustments made by EMPLOYERin performance of "COMMISSIONING" activity will not beconstrued to be violating CONTRACT provisions andCONTRACTOR shall be deemed to have provided for the same.SECTION-II GENERAL INFORMATION2. General Information 2.1 a) Location of Site: The proposed location of Project site is definedin the Special Conditions of Contract.b) Access by Road: CONTRACTOR, if necessary, shall buildother temporary access roads to the actual site of construction forhis own work at his own cost. The CONTRACTOR shall berequired to permit the use of the roads so constructed by him forvehicles of any other parties who may be engaged on the projectsite. The CONTRACTOR shall also facilitate the construction ofthe permanent roads should the construction there of start whilehe is engaged on this work. He shall make allowance in histender for any inconvenience he anticipates on such account.Non-availability of access roads, railway siding and railwaywagons for the use of the CONTRACTOR shall in no casecondone any delay in the execution of WORK nor be the cause forany claim for compensation against the EMPLOYER.2.2 Scope of Work: The scope of WORK is defined in the TechnicalPart of the tender document. The CONTRACTOR shall provideall necessary materials, equipment, labour etc. for the executionand maintenance of the WORK till completion unless otherwisementioned in the Tender Document.2.3 Water Supply: Contractor will have to make his own arrangementsfor supply of water to his labour camps and for works. All pumpinginstallations, pipe net work and distribution system will have to becarried out by the Contractor at his own risk and cost.Alternatively the Employer at his discretion may endeavour toprovide water to the Contractor at the Employer's source of supply4

General Conditions of Contractprovided the Contractor makes his own arrangement for the watermeter which shall be in custody of the Employer and other pipenet works from source of supply and such distribution pipenetwork shall have prior approval of the Engineer-in-Charge so asnot to interfere with the layout and progress of the otherconstruction works. In such case, the rate for water shall bededucted from the running account bills.However, the Employer does not guarantee the supply of waterand this does not relieve the Contractor of his responsibility inmaking his own arrangement and for the timely completion of thevarious works as stipulated.2.4 Power Supply:2.4.1 Subject to availability, EMPLOYER will supply power at 400/440 Vat only one point at the nearest sub-station, from where theCONTRACTOR will make his own arrangement for temporarydistribution. The point of supply will not be more than 500 m awayfrom the CONTRACTOR'S premises. All the works will be doneas per the applicable regulations and passed by theENGINEER-IN-CHARGE. The temporary line will be removedforthwith after the completion of work or if there is any hindrancecaused to the other works due to the alignment of these lines, theCONTRACTOR will re-route or remove the temporary lines at hisown cost. The CONTRACTOR at his cost will also providesuitable electric meters, fuses, switches, etc. for purposes ofpayment to the EMPLOYER which should be in the custody andcontrol of the EMPLOYER. The cost of power supply shall bepayable to the EMPLOYER every month for Construction Workspower which would be deducted from the running account bills.The EMPLOYER shall not, however, guarantee the supply ofelectricity nor have any liability in respect thereof. No claim forcompensation for any failure or short supply of electricity will beadmissible.2.4.2 It shall be the responsibility of the CONTRACTOR to provide andmaintain the complete installation on the load side of the supplywith due regard to safety requirement at site. All cabling,equipment, installations etc. shall comply in all respects with thelatest statutory requirements and safety provisions i.e., as per theCentral/State Electricity Acts and Rules etc. The CONTRACTORwill ensure that his equipment and Electrical Wiring etc., areinstalled, modified, maintained by a licensedElectrician/Supervisor. A test certificate is to be produced to theENGINEER-IN-CHARGE for his approval, before power is madeavailable.2.4.3 At all times, IEA regulations shall be followed failing which theEMPLOYER has a right to disconnect the power supply withoutany reference to the CONTRACTOR. No claim shall beentertained for such disconnection by theENGINEER-IN-CHARGE. Power supply will be reconnected onlyafter production of fresh certificate from authorized electricalsupervisors.2.4.4 The EMPLOYER is not liable for any loss or damage to theCONTRACTOR's equipment as a result of variation in voltage orfrequency or interruption in power supply or other loss to theCONTRACTOR arising therefrom.5

General Conditions of Contract2.4.5 The CONTRACTOR shall ensure that the Electrical equipmentinstalled by him are such that average power factors does not fallbelow 0.90 at his premises. In case power factor falls below 0.90in any month, he will reimburse to the EMPLOYER at the penalrate determined by the EMPLOYER for all units consumed duringthe month.2.4.6 The power supply required for CONTRACTOR's colony near theplant site will be determined by the EMPLOYER and shall be asper State Electricity Board's Rules and other statutory provisionsapplicable for such installations from time to time. In case ofpower supply to CONTRACTOR's colony, the power will be madeavailable at a single point and the CONTRACTOR shall make hisown arrangement at his own cost for distribution to the occupantsof the colony as per Electricity Rules and Acts. The site andcolony shall be sufficiently illuminated to avoid accidents.2.4.7 The CONTRACTOR will have to provide and install his own lightsand power meters which will be governed as per Central/StateGovernment Electricity Rules. The metres shall be sealed by theEMPLOYER.2.4.8 In case of damage of any of the EMPLOYER’s equipment onaccount of fault, intentional or unintentional on the part of theCONTRACTOR, the EMPLOYER reserves the right to recover thecost of such damage from the CONTRACTOR's bill. Cost of HRCFuses replaced at the EMPLOYER's terminals due to any fault inthe CONTRACTOR's installation shall be to CONTRACTOR'saccount 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 Startingdevice approved by the ENGINEER- IN-CHARGE shall beprovided by the CONTRACTOR. For motors above 100 HPslipring induction motors with suitable starting devices as approvedby the ENGINEER- IN-CHARGE shall be provided by theCONTRACTOR.2.4.10 The CONTRACTOR shall ensure at his cost that all electrical linesand equipment and all installations are approved by the StateElectricity Inspector before power can be supplied to theEMPLOYER.2.4.11 The total requirement of power shall be indicated by the tendereralongwith his tender.2.5 Land for Contractor’s Field Office, Godown and Workshop: TheEMPLOYER will, at his own discretion and convenience and forthe duration of the execution of the work make available near thesite, land for construction of CONTRACTOR's Temporary FieldOffice, godowns workshops and assembly yard required for theexecution of the CONTRACT. The CONTRACTOR shall at hisown cost construct all these temporary buildings and providesuitable water supply and sanitary arrangement and get the sameapproved by the ENGINEER-IN-CHARGE.On completion of the works undertaken by the CONTRACTOR,he shall remove all temporary works erected by him and have theSITE cleaned as directed by ENGINEER-IN-CHARGE. If the6

General Conditions of ContractCONTRACTOR shall fail to comply with these requirements, theENGINEER-IN-CHARGE may at he expenses of theCONTRACTOR remove such surplus, and rubbish materials anddispose off the same as he deems fit and get the site cleared asaforesaid; and CONTRACTOR shall forthwith pay the amount ofall expenses so incurred and shall have no claim in respect of anysuch surplus materials disposed off as aforesaid. But theEMPLOYER reserves the right to ask the CONTRACTOR anytime during the pendency of the CONTRACT to vacate the land bygiving 7 days notice on security reasons or on national interest orotherwise. Rent may be charged for the land so occupied fromcontractor by the Employer.The CONTRACTOR shall put up temporary structures as requiredby them for their office, fabrication shop and construction storesonly in the area allocated to them on the project site by theEMPLOYER or his authorised representative. No teastalls/canteens should be put up or allowed to be put up by anyCONTRACTOR in the allotted land or complex area withoutwritten permission of the EMPLOYER.No unauthorised buildings, constructions or structures should beput up by the CONTRACTOR anywhere on the project site.For uninterrupted fabrication work, the CONTRACTOR shall putup temporary covered structures at his cost within Area in thelocation allocated to them in the project site by the EMPLOYER orhis authorised representative.No person except for authorised watchman shall be allowed tostay in the plant area/CONTRACTOR's area after completion ofthe day's job without prior written permission fromENGINEER-IN-CHARGE.2.6 Land for Residential Accommodation:-:No Land shall be madeavailable for residential accommodation for staff and labour ofCONTRACTOR.SECTION-III GENERAL INSTRUCTIONS TO TENDERERS3. 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 spaceprovided under “Submission of Tender at the beginning of GCC ofTender Document. The rate shall be filled only in the schedulegiven in this Tender Document.3.2 Addenda/Corrigenda to this Tender Document, if issued, must besigned, submitted alongwith the Tender Document. the tenderershould write clearly the revised quantities in Schedule of Rates ofTender Document and should price the WORK based on revisedquantities when amendments of quantities are issued in addenda.3.3 Covering letter alongwith its enclosures accompanying the TenderDocument and all further correspondence shall be submitted induplicate.7

General Conditions of Contract4. Documents: 4.1 General:3.4 Tenderers are advised to submit quotations based strictly on theterms and conditions and specifications contained in the TenderDocuments 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 duefor opening on _______________________]. The Full Name,Address and Telegraphic Address, Fax No. of the Tenderers shallbe 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 dulyfilled in and signed by the tenderer as prescribed in differentclauses of the Tender Documents.ii)iii)iv)Earnest money in the manner specified in Clause 6 hereof.Power of Attorney or a true copy thereof duly attested by aGazetted Officer in case an authorised representative hassigned the tender, as required by Clause 14 hereof.Information regarding tenderers in the proforma enclosed.v) Details of work of similar type and magnitude carried out bythe Tenderer in the proforma provided in the tenderdocument.vi)vii)viii)ix)Organisation chart giving details of field management atsite, the tenderer proposes to have for this job.Details of construction plant and equipments available withthe tenderer for using in this work.Solvency Certificate from Scheduled Bank to prove thefinancial ability to carry out the work tendered for.Latest Balance Sheet and Profit & Loss Account dulyaudited.x) Details of present commitment as per proforma enclosed totender.xi)xii)xiii)Data required regarding SUB-CONTRACTOR(s)/ Supplier/Manufacturers and other technical informations the tendererwish to furnish.Provident fund registration certificateList showing all enclosures to tender.4.2 All pages are to be Initiated: All signatures in Tender Documentsshall be dated, as well as, all the pages of all sections of TenderDocuments shall be initialed at the lower right hand corner andsigned wherever required in the tender papers by the TENDERER8

General Conditions of Contract10.2 A joint programme of execution of the WORK will be prepared bythe ENGINEER-IN-CHARGE and CONTRACTOR based onpriority requirement of this project. This programme will take intoaccount the time of completion mentioned in 10.1 above and thetime allowed for the priority works by theENGINEER-IN-CHARGE.10.3 Monthly/Weekly construction programme will; be drawn up by theENGINEER-IN-CHARGE jointly with the CONTRACTOR, basedon availability of work fronts and the joint construction programmeas per 10.2 above. The CONTRACTOR shall scrupulouslyadhere to these targets /programmes by deploying adequatepersonnel, construction tools and tackles and he shall also supplyhimself all materials of his scope of supply in good time to achievethe targets/programmes. In all matters concerning the extent oftargets set out in the weekly and monthly programmes and thedegree of achievements the decision of theENGINEER-IN-CHARGE will be final and binding on theCONTRACTOR.11 Tenderer’s Responsibility 11.1 The intending tenderers shall be deemed to have visited the SITEand familiarised submitting the tender. Non-familiarity with thesite conditions will not be considered a reason either for extraclaims or for not carrying out the works in strict conformity with theDRAWINGS and SPECIFICATIONS or for any delay inperformance.12 Retired Government orCompany Officers12.1 No Engineer of Gazetted rank or other Gazetted Officer employedin Engineering or Administrative duties in an EngineeringDepartment of the States/ Central Government or of theEMPLOYER is allowed to work as a CONTRACTOR for a periodof two years after his retirement from Government Service, or fromthe employment of the EMPLOYER without the previouspermission of the EMPLOYER. The CONTRACT, if awarded, isliable to be cancelled if either the CONTRACTOR or any of hisemployees is found at any time to be such a person, who has notobtained the permission of the State/Central Government or of theEMPLOYER as aforesaid before submission of tender, orengagement 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 anAGREEMENT in the proforma attached with TENDERDOCUMENT within 15 days of the receipt by him of theNotification of Acceptance of Tender. In the event of failure onthe part of the successful tenderer to sign the AGREEMENT withinthe above stipulated period, the Earnest Money or his initialdeposit will be forefeited and the acceptance of the tender shall beconsidered as cancelled.14 Field Management &Controlling/CoordinatingAuthority:14.1 The field management will be the responsibility of theENGINEER-IN-CHARGE, who will be nominated by theEMPLOYER. The ENGINEER-IN-CHARGE may also authorisehis representatives to assist in performing his duties and functions.14.2 The ENGINEER-IN-CHARGE shall coordinate the works ofvarious agencies engaged at site to ensure minimum disruption ofwork carried out by different agencies. It shall be the responsibilityof the CONTRACTOR to plan and execute the work strictly inaccordance with site instructions to avoid hindrance to the workbeing executed by other agencies.12

General Conditions of Contract15 Note to Schedule ofRates:15.1 The Schedule of Rates should be read in conjunction with all theother sections of the tender.15.2 The tenderer shall be deemed to have studied the DRAWINGS,SPECIFICATIONS and details of work to be done within TIMESCHEDULE and to have aquainted himself of the conditionprevailing at site.15.3 Rates must be filled in the Schedule of Rates of original TenderDocuments. If quoted in separate typed sheets no variation in itemdescription or specification shall be accepted. Any exceptionstaken by the tenderer to the Schedule of Rates shall be broughtout in the terms and conditions of the offer.15.4 The quantities shown against the various items are onlyapproximate. Any increase or decrease in the quantities shall notform the basis of alteration of the rates quoted and accepted.15.5 The EMPLOYER reserves the right to interpolate the rates for suchitems of work falling between similar items of lower and highermagnitude.16 Policy for Tenders UnderConsideration:16.1 Only Those Tenders which are complete in all respects and arestrictly in accordance with the Terms and Conditions andTechnical Specifications of Tender Document, shall be consideredfor evaluation. Such Tenders shall be deemed to be underconsideration immediately after opening of Tender and until suchtime an official intimation of acceptance /rejection of Tender ismade by GAIL to the Bidder.16.2 Zero Deviation: Bidders to note that this is a ZERO DEVIATIONTENDER. GAIL will appreciate submission of offer based on theterms and conditions in the enclosed General Conditions ofContract (GCC), Special Conditions of Contract (SCC),Instructions to Bidders (ITB), Scope of Work, technicalspecifications etc. to avoid wastage of time and money inseeking clarifications on technical/ commercial aspects of theoffer. Bidder may note that no technical and commercialclarifications will be sought for after the receipt of the bids. Incase of any deviation/nonconformity observed in the bid, it willbe liable for rejection.17 Award of Contract: 17.1 The Acceptance of Tender will be intimated to the successfulTenderer by GAIL either by Telex/ Telegram/ Fax or by Letter orlike means-defined as LETTER OF ACCEPTANCE OF TENDER.17.2 GAIL will be the sole judge in the matter of award of CONTRACTand the decision of GAIL shall be final and binding.18 Clarification of TenderDocument:18.1 The Tender is required to carefully examine the TechnicalSpecifications, Conditions of Contract, Drawings and other detailsrelating to WORK and given in Tender Document and fully informhimself as to all conditions and matters which may in any wayaffect the WORK or the cost thereof. In case the Tenderer is indoubt about the completeness or correctness of any of thecontents of the Tender Documents he should request in writing foran interpretation/clarification to GAIL in triplicate. GAIL will then13

General Conditions of Contractissue interpretation/clarification to Tenderer in writing. Suchclarifications and or interpretations shall form part of theSpecifications and Documents and shall accompany the tenderwhich shall be submitted by tenderer within time and date asspecified in invitations to tender.18.2 Verbal clarification and information given by GAIL or itsemployee(s) or its representatives shall not in any way be bindingon GAIL.19 Local Conditions: 19.1 It will be imperative on each tenderer to inform himself of all localconditions and factors which may have any effect on the executionof WORK covered under the Tender Document. In their owninterest, the tenderer are requested to familiarise themselves withthe Indian Income Tax Act 1961, Indian Companies Act 1956,Indian Customs Act 1962 and other related Acts and Laws andRegulations of India with their latest amendments, as applicableGAIL shall not entertain any requests for clarifications from thetenderer regarding such local conditions.19.2 It must be understood and agreed that such factors have properlybeen investigated and considered while submitting the tender. Noclaim for financial or any other adjustments to VALUE OFCONTRACT, 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 carefulanalysis of cost involved for the performance of the completeditem considering all specifications and Conditions of Contract.This will avoid loss of profit or gain in case of curtailment orchange of specification for any item. In case it is noticed that therates quoted by the tenderer for any item are unusually high orunusually low, it will be sufficient cause for the rejection of thetender unless the EMPLOYER is convinced about thereasonableness after scrutiny of the analysis for such rate(s) to befurnished by the tenderer (on demand).SECTION-IVGENERAL OBLIGATIONS21 Priority of ContractDocuments21.1 Except if and the extent otherwise provided by the Contract, theprovisions of the General Conditions of Contract and SpecialConditions shall prevail over those of any other documentsforming part of the CONTRACT. Several documents forming theCONTRACT are to be taken as mutually explanatory of oneanother, but in case of ambiguities or discrepancies the sameshall be explained and adjusted by the ENGINEER-IN-CHARGEwho shall thereupon issue to the Contractor instructions thereonand in such event, unless otherwise provided in the Contract, thepriority 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.14

General Conditions of ContractWorks shown in the DRAWING but not mentioned in theSPECIFICATIONS OR described in the SPECIFICATIONSwithout being shown in the DRAWINGS shall nevertheless bedeemed to be included in the same manner as if they had beenspecifically shown upon the DRAWINGS and described in theSPECIFICATIONS.21.2 Headings and Marginal Notes: All headings and marginal notes tothe clauses of these General Conditions of Contract or to theSPECIFICATIONS or to any other Tender Document are solelyfor the purpose of giving a concise indication and not a summaryof the contents thereof, and they shall never be deemed to be partthereof or be used in the interpretation or construction thereof theCONTRACT.21.3 Singular and Plural: In CONTRACT DOCUMENTS unlessotherwise stated specifically, the singular shall include the pluraland vice versa wherever the context so requires.21.4 Interpretation: Words implying `Persons' shall include relevant`Corporate Companies / Registered Associations/ Body ofIndividuals/ Firm of Partnership' as the case may be.22 Special Conditions ofContract:22.1 Special Conditions of Contract shall be read in conjunction withthe General Conditions of Contract, specification of Work,Drawings and any other documents forming part of thisCONTRACT wherever the context so requires.22.2 Notwithstanding the sub-division of the documents into theseseparate sections and volumes every part of each shall bedeemed to be supplementary to and complementary of everyother part and shall be read with and into the CONTRACT so faras it may be practicable to do so.22.3 Where any portion of the General Condition of Contract isrepugnant to or at variance with any provisions of the SpecialConditions of Contract, unless a different intention appears theprovisions of the Special Conditions of Contract shall be deemedto over-ride the provisions of the General Conditions of Contractand shall to the extent of such repugnancy, or variations, prevail.22.4 Wherever it is mentioned in the specifications that theCONTRACTOR shall perform certain WORK or provide certainfacilities, it is understood that the CONTRACTOR shall do so athis cost and the VALUE OF CONTRACT shall be deemed to haveincluded cost of such performance and provisions, so mentioned.22.5 The materials, design and workmanship shall satisfy the relevantINDIAN STANDARDS, the JOB SPECIFICATIONS containedherein and CODES referred to. Where the job specificationstipulate requirements in addition to those contained in thestandard codes and specifications, these additional requirementsshall also be satisfied.23 Contractor to obtain hisown Information:23.1 The CONTRACTOR in fixing his rate shall for all purposewhatsoever reason may be, deemed to have himselfindependently obtained all necessary information for the purposeof preparing his tender and his tender as accepted shall bedeemed to have taken into account all contingencies as may arise15

General Conditions of Contractdue to such information or lack of same. The correctness of thedetails, given in the Tender Document to help the CONTRACTORto make up the tender is not guaranteed.The CONTRACTOR shall be deemed to have examined theCONTRACT DOCUMENTS, to have generally obtained his owninformation in all matters whatsoever that might affect the carryingout of the works at the schedules rates and to have satisfiedhimself to the sufficiency of his tender. Any error in description ofquantity or omission therefrom shall not vitiate the CONTRACT orrelease the CONTRACTOR from executing the work comprised inthe CONTRACT according to DRAWINGS andSPECIFICATIONS at the scheduled rates. He is deemed to haveknown the scope, nature and magnitude of the WORKS and therequirements of materials and labour involved etc., and as to whatall works he has to complete in accordance with the CONTRACTdocuments whatever be the defects, omissions or errors that maybe found in the DOCUMENTS. The CONTRACTOR shall bedeemed to have visited surroundings, to have satisfied himself tothe nature of all existing structures, if any, and also as to thenature and the conditions of the Railways, Roads, Bridges andCulverts, means of transport and communication, whether byland, water or air, and as to possible interruptions thereto and theaccess 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 surplusmaterials, the available accommodation as to whatever required,depots and such other buildings as may be necessary forexecuting and completing the works, to have made localindependent enquiries as to the sub-soil, subsoil water andvariations thereof, storms, prevailing winds, climatic conditionsand all other similar matters effecting these works. He is deemedto have acquainted himself as to his liability of payment ofGovernment Taxes, Customs duty and other charges, levies etc.Any neglect or omission or failure on the part of theCONTRACTOR in obtaining necessary and reliable informationupon the foregoing or any other matters affecting the CONTRACTshall not relieve him from any risks or liabilities or the entireresponsibility from completion of the works at the scheduled ratesand times in strict accordance with the CONTRACT.It is, therefore, expected that should the CONTRACTOR have anydoubt as to the meaning of any portion of the CONTRACTDOCUMENT he shall set forth the particulars thereof in writing toEMPLOYER in duplicate, before submission of tender. TheEMPLOYER may provide such clarification as may be necessaryin writing to CONTRACT, such clarifications as provided byEMPLOYER shall form part of CONTRACT DOCUMENTS.No verbal agreement or inference from conversation with anyeffect or employee of the EMPLOYER either before, during orafter the execution of the CONTRACT agreement shall in any wayaffect or modify and of the terms or obligations herein contained.Any change in layout due to site conditions or technologicalrequirement shall be binding on the CONTRACTOR and no extraclaim on this account shall be entertained.16

General Conditions of Contract24 Contract PerformanceSecurity:24.1 The CONTRACTOR shall furnish to the EMPLOYER, within 15days from the date of notification of award, a security in the sumof 10% of the accepted value of the tender or the actual value ofwork to be done whichever is applicable due to any additionalwork or any other reasons, in the form of a Bank draft/Banker’scheque or Bank Guarantee or irrevocable Letter of credit (as perproforma enclosed) as Contract Performance Security with theEMPLOYER which will be refunded after the expiry of DEFECTSLIABILITY PERIOD.24.2 CONTRACTOR can furnish the Contract Performance Security inthe form of Demand Draft or through a Bank Guarantee orthrough an irrevocable Letter of Credit from any Indian scheduledbank or a branch of an International bank situated in India andregistered with Reserve Bank of India as scheduled foreignbank. However, other than the Nationalised Indian Banks, thebanks whose BGs are furnished, must be commercial bankshaving net worth in excess of Rs. 100 crores and a declarationto this effect should be made by such commercial bank either inthe bank guarantee itself or separately on a letter head.The bank guarantee or the Letter of Credit shall be submitted inthe prescribed format.24.3 If the CONTRACTOR/SUB-CONTRACTOR or their employees orthe CONTRACTOR’s agents and representatives shall damage,break, deface or destroy any property belonging to theEMPLOYER or others during the execution of the CONTRACT,the same shall be made good by the CONTRACTOR at his ownexpenses and in default thereof, the ENGINEER-IN-CHARGEmay cause the same to be made good by other agencies andrecover expenses from the CONTRACTOR (for which thecertificate of the ENGINEER- IN-CHARGE shall be final).24.4 All compensation or other sums of money payable by theCONTRACTOR to the EMPLOYER under terms of thisCONTRACT may be deducted from or paid by the encashment orsale of a sufficient part of his Contract Performance Security orfrom any sums which may be due or may become due to theCONTRACTOR by the EMPLOYER of any account whatsoeverand in the event of his Contract Performance Security beingreduced by reasons of any such deductions or sale of aforesaid,the CONTRACTOR shall within ten days thereafter make good incash, bank drafts as aforesaid any sum or sums which may havebeen deducted from or realised by sale of his ContractPerformance Security, or any part thereof. No interest shall bepayable by the EMPLOYER for sum deposited as ContractPerformance Security.24.5 Failure of the successful bidder to comply with the requirements ofthis Clause shall constitute sufficient grounds for the annulment ofthe award and the forfeiture of bid security.25 Time of Performance: 25.1 Time for MobilisationThe work covered by this CONTRACT shall be commenced withinfifteen (15) days, the date of letter/Fax of Intent and be completedin stages on or before the dates as mentioned in the TIMESCHEDULE OF COMPLETION OF WORK. The CONTRACTORshould bear in mind that time is the essence of this agreement.Request for revision of construction time after tenders are opened17

General Conditions of Contractwill 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 orany other reasons.25.2 Time Schedule of Construction:25.2.1 The general Time Schedule of construction is given in theTENDER DOCUMENT. CONTRACTOR should prepare adetailed monthly or weekly construction program jointly with theENGINEER-IN-CHARGE within 15 days of receipt ofLETTER/FAX OF INTENT or ACCEPTANCE OF TENDER. TheWORK shall be executed strictly as per the Time Schedule givenin the CONTRACT DOCUMENT. The period of constructiongiven includes the time required for mobilisation testing,rectifications, if any, retesting and completion in all respects inaccordance with CONTRACT DOCUMENT to the entiresatisfaction of the ENGINEER-IN-CHARGE.25.2.2 The CONTRACTOR shall submit a detailed PERT network withinthe time frame agreed above consisting of adequate number ofactivities covering various key phases of the WORK such asdesign, procurement, manufacturing, shipment and field erectionactivities within fifteen (15) days from the date of LETTER/FAXOF INTENT. This network shall also indicate the interfacefacilities to be provided by the EMPLOYER and the dates bywhich such facilities are needed.25.2.3 CONTRACTOR shall discuss the network so submitted with theEMPLOYER and the agreed network which may be in the formas submitted with the EMPLOYER or in revised form in line withthe outcome of discussions shall form part of the CONTRACT, tobe signed within fifteen (15) days from the date of LETTER OFACCEPTANCE OF TENDER. During the performance of theCONTRACT, if in the opinion of the EMPLOYER proper progressis not maintained suitable changes shall be made in theCONTRACTOR's operation to ensure proper progress.The above PERT network shall be reviewed periodically andreports shall be submitted by the CONTRACTOR as directed byEMPLOYER.26 Force Majeure: 26.1 CONDITIONS FOR FORCE MAJEUREIn the event of either party being rendered unable by ForceMajeure to perform any obligations required to be performed bythem under the CONTRACT the relative obligation of the partyaffected by such Force Majeures shall upon notification to theother party be suspended for the period during which ForceMajeures event lasts. The cost and loss sustained by the eitherparty shall be borne by the respective parties.The term "Force Majeures" as employed herein shall mean actsof God, earthquake, war (declared or undeclared), revolts, riots,fires, floods, rebellions, explosions, hurricane, sabotage, civilcommotions and acts and regulations of respective Governmentof the two parties, namely the EMPLOYER and theCONTRACTOR.18

General Conditions of ContractUpon the occurrence of such cause(s) and upon its termination,the party alleging that it has been rendered unable as aforesaidthereby, shall notify the other party in writing immediately but notlater than 72 (Seventy-two) hours of the alleged beginning andending thereof giving full particulars and satisfactory evidence insupport of its claim.Time for performance of the relative obligation suspended by theForce Majeures shall then stand extended by the period for whichsuch cause lasts.If deliveries of bought out items and/or works to be executed bythe CONTRACTOR are suspended by Force Majeure conditionslasting for more than 2 (two) months the EMPLOYER shall havethe option to terminate the CONTRACT or re-negotiate thecontract provisions.26.2 OUTBREAK OF WAR26.2.1 If during the currency of the CONTRACT there shall be anout-break of war whether declared or not, in that part of the Worldwhich whether financially or otherwise materially affect theexecution of the WORK the CONTRACTOR shall unless anduntil the CONTRACT is terminated under the provisions in thisclause continue to use his best endeavour to complete theexecution of the WORK, provided always that the EMPLOYERshall be entitled, at any time after such out-break of war toterminate or re-negotiate the CONTRACT by giving notice inwriting to the CONTRACTOR and upon such notice being giventhe CONTRACT shall, save as to the rights of the parties underthis clause and to the operation of the clauses entitled settlementof Disputes and Arbitration hereof, be terminated but withoutprejudice to the right of either party in respect of any antecedentbreach thereof.26.2.2 If the CONTRACT shall be terminated under the provisions of theabove clause, the CONTRACTOR shall with all reasonablediligence remove from the SITE all the CONTRACTOR'sequipment and shall give similar facilities to hisSUB-CONTRACTORS to do so.27 Price reductionschedule:27.1 Time is the essence of the CONTRACT. In case theCONTRACTOR fails to complete the WORK within the stipulatedperiod, then, unless such failure is due to Force Majeure asdefined in Clause 26 here above or due to EMPLOYER'sdefaults, the Total Contract price shall be reduced by ½ % of thetotal Contract Price per complete week of delay or part thereofsubject to a maximum of 5 % of the Total Contract Price, by wayof reduction in price for delay and not as penalty. The saidamount 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 toapplicability of Price Reduction Schedule shall be final andbinding on the CONTRACTOR.27.2 All sums payable under this clause is the reduction in price due todelay in completion period at the above agreed rate.19

General Conditions of Contract27.3 Bonus For EarlyCompletion (*)27.3 BONUS FOR EARLY COMPLETIONIf the Contractor achieves completion of Works in all respect priorto the time schedule stipulated in the SCC, the Employer shallpay to the Contractor the relevant sum, if mentioned specificallyin SCC, as bonus for early completion. The bonus for earlycompletion, if provided specifically in SCC, shall be payable tothe maximum ceiling of 2 ½ % of the total contract price.(*) Partial earlier completion may not always produce netbenefits to the Employer, for example where utilization of thecompleted Works requires (a) the fulfillment of all parts of theContract (e.g. the training of personnel); or (b) thecompletion of all Sections (e.g. in pipeline laying, where earlycompletion of the laying of pipeline would not be useful if thecompressor is still under installation); or (c) certain seasonaleffects to take place (e.g. onset of the rainy season, forimpounding a reservoir); or (d) other circumstances. Also amore rapid drawdown of budgeted funds may be required.All such factors should be considered prior to the inclusion ofa bonus clause in the Contract.28 Rights of the employer toforfeit contractperformance security:28.1 Whenever any claim against the CONTRACTOR for the paymentof a sum of money arises out or under the CONTRACT, theEMPLOYER shall be entitled to recover such sum byappropriating in part or whole the Contract Performance Securityof the CONTRACTOR. In the event of the security beinginsufficient or if no security has been taken from theCONTRACTOR, then the balance or the total sum recoverable,as the case may be shall be deducted from any sum then due orwhich at any time thereafter may become due to theCONTRACTOR. The CONTRACTOR shall pay to theEMPLOYER on demand any balance remaining due.29 Failure by the contractorto comply with theprovisions of thecontract:29.1 If the CONTRACTOR refuses or fails to execute the WORK orany separate part thereof with such diligence as will ensure itscompletion within the time specified in the CONTRACT orextension thereof or fails to perform any of his obligation underthe CONTRACT or in any manner commits a breach of any ofthe provisions of the CONTRACT it shall be open to theEMPLOYER at its option by written notice to the CONTRACTOR:a) TO DETERMINE THE CONTRACT in which event theCONTRACT shall stand terminated and shall cease to be inforce and effect on and from the date appointed by theEMPLOYER on that behalf, whereupon the CONTRACTORshall stop forthwith any of the CONTRACTOR's work then inprogress, except such WORK as the EMPLOYER may, inwriting, 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 theCONTRACTOR and complete the same through a freshcontractor or by other means, at the risk and cost of theCONTRACTOR, and any of his sureties if any, shall be liable tothe EMPLOYER for any excess cost occasioned by such workhaving to be so taken over and completed by the EMPLOYERover and above the cost at the rates specified in the schedule ofquantities and rate/prices.20

General Conditions of Contractb) WITHOUT DETERMINING THE CONTRACT to take overthe work of the CONTRACTOR or any part thereof and completethe same through a fresh contractor or by other means at the riskand cost of the CONTRACTOR. The CONTRACTOR and anyof his sureties are liable to the EMPLOYER for any excess costover and above the cost at the rates specified in the Schedule ofQuantities/ rates, occasioned by such works having been takenover 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 Securityfurnished by the CONTRACTOR is liable to be forfeited withoutprejudice to the right of the EMPLOYER to recover from theCONTRACTOR the excess cost referred to in the sub-clauseaforesaid, the EMPLOYER shall also have the right of takingpossession and utilising in completing the works or any partthereof, such as materials equipment and plants available atwork site belonging to the CONTRACTOR as may be necessaryand the CONTRACTOR shall not be entitled for anycompensation for use or damage to such materials, equipmentand plant.b) The amount that may have become due to theCONTRACTOR on account of work already executed by himshall not be payable to him until after the expiry of Six (6)calendar months reckoned from the date of termination ofCONTRACT or from the taking over of the WORK or part thereofby the EMPLOYER as the case may be, during which period theresponsibility for faulty materials or workmanship in respect ofsuch work shall, under the CONTRACT, rest exclusively with theCONTRACTOR. This amount shall be subject to deduction ofany amounts due from the CONTRACT to the EMPLOYERunder the terms of the CONTRACT authorised or required to bereserved 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 ordefaults committed by the CONTRACTOR is/are curable and canbe cured by the CONTRACTOR if an opportunity given to him,then the EMPLOYER may issue Notice in writing calling theCONTRACTOR to cure the default within such time specified inthe Notice.29.4 The EMPLOYER shall also have the right to proceed or takeaction as per 29.1(a) or (b) above, in the event that theCONTRACTOR becomes bankrupt, insolvent, compounds withhis creditors, assigns the CONTRACT in favour of his creditorsor any other person or persons, or being a company or acorporation goes into voluntary liquidation, provided that in thesaid events it shall not be necessary for the EMPLOYER to giveany prior notice to the CONTRACTOR.29.5 Termination of the CONTRACT as provided for in sub- clause29.1(a) above shall not prejudice or affect their rights of theEMPLOYER which may have accrued upto the date of suchtermination.30 Contractor remains liableto pay compensation if30.1 In any case in which any of the powers conferred upon theEMPLOYER BY CLAUSE 29.0 thereof shall have become21

General Conditions of Contractaction not taken underclause 29:exercisable and the same had not been exercised, thenon-exercise thereof shall not constitute a waiver of any of theconditions hereof and such powers shall notwithstanding beexercisable in .the event of any further case of default by theCONTRACTOR for which by any clause or clauses hereof he isdeclared liable to pay compensation amounting to the whole ofhis Contract Performance Security, and the liability of theCONTRACTOR for past and future compensation shall remainunaffected. In the event of the EMPLOYER putting in force thepower under above sub-clause (a), (b) or (c) vested in him underthe preceding clause he may, if he so desired, take possession ofall or any tools, and plants, materials and stores in or upon theworks or the site thereof belonging to the CONTRACTOR orprocured by him and intended to be used for the execution of theWORK or any part thereof paying or allowing for the same inaccount at the CONTRACT rates or in case of these not beingapplicable at current market rates to be certified by theENGINEER-IN-CHARGE whose certificate thereof shall be final,otherwise the ENGINEER-IN- CHARGE may give notice inwriting to the CONTRACTOR or his clerk of the works, foremanor other authorised agent, requiring him to remove such tools,plant, materials or stores from the premises (within a time to bespecified in such notice), and in the event of the CONTRACTORfailing to comply with any such requisition, theENGINEER-IN-CHARGE may remove them at theCONTRACTOR's expense or sell them by auction or private saleon account of the CONTRACTOR and at his risk in all respectswithout any further notice as to the date, time or place of sale andthe certificate of the ENGINEER-IN-CHARGE as to the expensesof any such removal and the amount of the proceeds andexpenses of any such sale shall be final and conclusive againstthe CONTRACTOR.31 Change in constitution: 31.1 Where the CONTRACTOR is a partnership firm, the priorapproval of the EMPLOYER shall be obtained in writing, beforeany change is made in the constitution of the firm. Where theCONTRACTOR is an individual or a Hindu undivided familybusiness concern, such approval as aforesaid shall,likewise beobtained before such CONTRACTOR enters into any agreementwith other parties, where under, the reconstituted firm would havethe right to carry out the work hereby undertaken by theCONTRACTOR. In either case if prior approval as aforesaid isnot obtained, the CONTRACT shall be deemed to have beenallotted in contravention of clause 37 hereof and the same actionmay be taken and the same consequence shall ensure asprovided in the said clause.32 Termination of contract 32(A) TERMINATION OF CONTRACT FOR DEATH:If the CONTRACTOR is an individual or a proprietary concernand the individual or the proprietor dies or if the CONTRACTORis a partnership concern and one of the partner dies thenunless, the EMPLOYER is satisfied that the legal representativeof the individual or the proprietory concern or the survivingpartners are capable of carrying out and completingCONTRACT, he (the EMPLOYER)is entitled to cancel theCONTRACT for the uncompleted part without being in any wayliable for any compensation payment to the estate of thediseased CONTRACTOR and/or to the surviving partners of theCONTRACTOR'S firm on account of the cancellation ofCONTRACT. The decision of the EMPLOYER in such22

General Conditions of Contractassessment shall be final and binding on the parties. In theevent of such cancellation, the EMPLOYER shall not hold theestate of the diseased CONTRACTOR and/or the survivingpartners of the CONTRACTOR'S firm liable for any damages fornon-completion of CONTRACT.32(B) TERMINATION OF CONTRACT IN CASE OF LIQUIDATION /BANKRUPTCY ETC.If the Contractor shall dissolve or become bankrupt or insolventor cause or suffer any receiver to be appointed of his businessof any assets thereof compound with his Creditors, or being acorporation commence to be wound up, not being a member’svoluntary winding up for the purpose of amalgamation orreconstruction, or carry on its business under a Receiver forthe benefits of its Creditors any of them, EMPLOYER shall beat liberty :-To terminate the contract forthwith upon coming to know of thehappening of any such event as aforesaid by notice in writing tothe Contractor or to give the Receiver or liquidator or otherperson, the option of carrying out the contract subject to hisproviding a guarantee upto an amount to be agreed upon byEMPLOYER for due and faithful performance of the contract.32 (C) TERMINATION OF CONTRACT FOR NON-PERFORMANCEAND SUBSEQUENTLY PUTTING THE CONTRACTOR ONHOLIDAY:In case of termination of CONTRACT herein set forth (underclause 29.0) except under conditions of Force Majeure andtermination after expiry of contract, the CONTRACTOR shall beput under holiday [i.e. neither any enquiry will be issued to theparty by GAIL (India) Ltd. against any type of tender nor theiroffer will be considered by GAIL against any ongoing tender (s)where contract between GAIL and that particularCONTRACTOR (as a bidder) has not been finalized] for threeyears from the date of termination by GAIL (India) Ltd. to suchCONTRACTOR.33 Members of the employernot individually liable :34 Employer not bound bypersonalrepresentations:35 Contractor's office atsite:33.1 No Director, or official or employee of the EMPLOYER/CONSULTANT shall in any way be personally bound or liable forthe acts or obligations of the EMPLOYER under the CONTRACTor answerable for any default or omission in the observance orperformance of any of the acts, matters or things which areherein contained.34.1 The CONTRACTOR shall not be entitled to any increase on thescheduled rates or any other right or claim whatsoever by reasonof any representation, explanation statement or allegedrepresentation, promise or guarantees given or alleged to havebeen given to him by any person.35.1 The CONTRACTOR shall provide and maintain an office at thesite for the accommodation of his agent and staff and such officeshall be open at all reasonable hours to receive instructions,notice or other communications. The CONTRACTOR at all timeshall maintain a site instruction book and compliance of theseshall be communicated to the ENGINEER-IN CHARGE from timeto time and the whole document to be preserved and handedover after completion of works.23

General Conditions of Contract36 Contractor's subordinatestaff and their conduct36.1 The CONTRACTOR, on or after award of the WORK shall nameand depute a qualified engineer having sufficient experience incarrying 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 theENGINEER-IN- CHARGE sufficient and qualified staff tosuperintend the execution of the WORK, competent sub-agents,foremen and leading hands including those specially qualified byprevious experience to supervise the types of works comprised inthe CONTRACT in such manner as will ensure work of the bestquality, expeditious working. Whenever in the opinion of theENGINEER-IN- CHARGE additional properly qualifiedsupervisory staff is considered necessary, they shall beemployed by the CONTRACTOR without additional charge onaccounts thereof. The CONTRACTOR shall ensure to thesatisfaction of the ENGINEER-IN-CHARGE thatSUB- CONTRACTORS, if any, shall provide competent andefficient supervision, over the work entrusted to them.36.2 If and whenever any of the CONTRACTOR's orSUB- CONTRACTOR'S agents, sub-agents, assistants, foremen,or other employees shall in the opinion ofENGINEER-IN- CHARGE be guilty of any misconduct or beincompetent or insufficiently qualified or negligent in theperformance of their duties of that in the opinion of theEMPLOYER or the ENGINEER-IN-CHARGE, it is undesirable foradministrative or any other reason for such person or persons tobe employed in the works, the CONTRACTOR, is so directed bythe ENGINEER-IN-CHARGE, shall at once remove such personor persons from employment thereon. Any person or persons soremoved from the works shall not again be employed inconnection with the WORKS without the written permission of theENGINEER-IN- CHARGE. Any person so removed from theWORK shall be immediately re-placed at the expense of theCONTRACTOR by a qualified and competent substitute. Shouldthe CONTRACTOR be requested to repatriate any personremoved from the works he shall do so and shall bear all costs inconnection herewith.36.3 The CONTRACTOR shall be responsible for the properbehaviour of all the staff, foremen, workmen, and others, andshall exercise a proper degree of control over them and inparticular and without prejudice to the said generality, theCONTRACTOR shall be bound to prohibit and prevent anyemployees from trespassing or acting in any way detrimental orprejudicial to the interest of the community or of the properties oroccupiers of land and properties in the neighborhood and in theevent of such employee so trespassing, the CONTRACTOR shallbe responsible therefore and relieve the EMPLOYER of allconsequent claims or actions for damages or injury or any othergrounds whatsoever. The decision of theENGINEER-IN-CHARGE upon any matter arising under thisclause shall be final. The CONTRACTOR shall be liable for anyliability to EMPLOYER on account of deployment ofCONTRACTOR's staff etc. or incidental or arising out of theexecution of CONTRACT.The CONTRACTOR shall be liable for all acts or omissions onthe part of his staff, Foremen and Workmen and others in hisemployment, including misfeasance or negligence of whatever24

General Conditions of Contractkind in the course of their work or during their employment, whichare connected directly or indirectly with the CONTRACT.36.4 If and when required by the EMPLOYER and CONTRACTOR'spersonnel entering upon the EMPLOYER's premises shall beproperly identified by badges of a type acceptable to theEMPLOYER which must be worn at all times on EMPLOYER'spremises. CONTRACTOR may be required to obtain daily entrypasses for his staff/employees from EMPLOYER to work withinoperating areas. These being safety requirements, norelaxations 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 shallin any manner or degree be transferred, assigned or sublet bythe CONTRACTOR directly or indirectly to any person, firm orcorporation whatsoever without the consent in writing, of theENGINEER/EMPLOYER except as provided for in thesucceeding sub-clause.i) SUB-CONTRACTS FOR TEMPORARY WORKS ETC.:The EMPLOYER may give written consent to Sub- contractfor the execution of any part of the WORK at the site, beingentered in to by CONTRACTOR provided each individualSub- contract is submitted to the ENGINEER-IN-CHARGEbefore being entered into and is approved by him.ii)LIST OF SUB-CONTRACTORS TO BE SUPPLIED:At the commencement of every month the CONTRACTORshall furnish to the ENGINEER-IN- CHARGE list of allSUB-CONTRACTORS or other persons or firms engaged bythe CONTRACTOR and working at the SITE during theprevious month with particulars of the general nature of theSubcontract or works done by them.iii) CONTRACTOR'S LIABILITY NOT LIMITED BYSUB- CONTRACTORS:Notwithstanding any sub-letting with such approval asaforesaid and notwithstanding that the ENGINEER-IN-CHARGE shall have received copies of any Subcontracts,the contractor shall be and shall remain solelyresponsible for the quality, proper and expeditious executionof the Contract in all respects as if such sub-letting orSubcontracting had not taken place, and as if such workhad been done directly by the CONTRACTOR. TheCONTRACTOR shall bear all responsibility for any act oromission on the part of sub-contractors in regard to work tobe performed under the CONTRACT.iv) EMPLOYER MAY TERMINATE SUB-CONTRACTS:If any SUB-CONTRACTOR engaged upon the works at thesite executes any works which in the opinion of theENGINEER-IN-CHARGE is not in accordance with theCONTRACT documents, the EMPLOYER may by writtennotice to the CONTRACTOR request him to terminate suchsubcontract and the CONTRACTOR upon the receipt of25

General Conditions of Contractsuch notice shall terminate such Subcontract and dismissthe SUB-CONTRACTOR(S) and the later shall forthwithleave the works, failing which the EMPLOYER shall have theright to remove such SUB- CONTRACTOR(S) from the site.v) NO REMEDY FOR ACTION TAKEN UNDER THISCLAUSE:No action taken by the EMPLOYER under the clause shallrelieve the CONTRACTOR of any of his liabilities under theCONTRACT or give rise to any right or compensation,extension of time or otherwise failing which the EMPLOYERshall 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 themanner previously described in the CONTRACT documents or ifhe shall at any time in the opinion of the ENGINEER-IN-CHARGE.i) fail to carry out the WORK in conformity with theCONTRACT documents, orii)fail to carry out the WORK in accordance with the TimeSchedule, oriii) substantially suspend work or the WORK for a period offourteen days without authority from theENGINEER-IN-CHARGE, oriv) fail to carry out and execute the WORK to the satisfaction ofthe ENGINEER-IN-CHARGE, orv) fail to supply sufficient or suitable construction plant,temporary works, labour, materials or things, orvi) Commit, suffer, or permit any other breach of any of theprovisions of the CONTRACT on his part to be performed orobserved or persist in any of the above mentioned breachesof the CONTRACT for fourteen days, after notice in writingshall have been given to the CONTRACTOR by theENGINEER-IN-CHARGE requiring such breach to beremedied, orvii) if the CONTRACTOR shall abandon the WORK , orviii) If the CONTRACTOR during the continuance of theCONTRACT shall become bankrupt, make any arrangementor composition with his creditors, or permit any execution tobe levied or go into liquidation whether compulsory orvoluntary not being merely a voluntary liquidation for thepurpose of amalgamation or reconstructionthen in any such case, the EMPLOYER shall have the power toenter upon the WORK and take possession thereof and of thematerials, temporary WORK, construction plant, and stockthereon, and to revoke the CONTRACTOR's licence to use thesame, and to complete the WORK by his agents, otherCONTRACTORS or workmen or to relate the same upon anyterms and to such other person, firm or corporation as the26

General Conditions of ContractEMPLOYER in his absolute discretion may think proper toemploy and for the purpose aforesaid to use or authorise the useof any materials, temporary work, CONSTRUCTION PLANT, andstock as aforesaid, without making payment or allowance to theCONTRACTOR for the said materials other than such as may becertified in writing by the ENGINEER-IN-CHARGE to bereasonable, and without making any payment or allowance to theCONTRACTOR for the use of the temporary said works,construction plant and stock or being liable for any loss ordamage thereto, and if the EMPLOYER shall by reason of histaking possession of the WORK or of the WORK beingcompleted by other CONTRACTOR (due account being taken ofany such extra work or works which may or be omitted) then theamount of such excess as certified by theENGINEER-IN- CHARGE shall be deducted from any moneywhich may be due for work done by the CONTRACTOR underthe CONTRACT and not paid for. Any deficiency shall forthwithbe made good and paid to the EMPLOYER by theCONTRACTOR and the EMPLOYER shall have power to sell insuch manner and for such price as he may think fit all or any ofthe construction plant, materials etc. constructed by or belongingto and to recoup and retain the said deficiency or any part thereofout of proceeds of the sale.39 Contractor'sresponsibility with themechanical, electrical,intercommunicationsystem, airconditioningcontractors and otheragencies:39.1 Without repugnance of any other condition, it shall be theresponsibility of the CONTRACTOR executing the work of civilconstruction, to work in close cooperation and coordinate theWORK with the Mechanical, Electrical, Air-conditioning andIntercommunication Contractor's and other agencies or theirauthorised representatives, in providing the necessary grooves,recesses, cuts and opening etc., in wall, slabs beams andcolumns etc. and making good the same to the desired finish asper specification, for the placement of electrical,intercommunication cables, conduits, air-conditioning inlets andoutlets grills and other equipments etc. where required. For theabove said requirements in the false ceiling and other partitions,the CONTRACTOR before starting-up the work shall inconsultation with the Electrical, Mechanical, Intercommunication,Air-conditioning contractor and other agencies prepare andput-up a joint scheme, showing the necessary openings,grooves, recesses, cuts, the methods of fixing required for theWORK of the aforesaid, and the finishes therein, to theENGINEER-IN-CHARGE and get the approval. TheCONTRACTOR before finally submitting the scheme to theENGINEER-IN-CHARGE, shall have the written agreement ofthe other agencies. The ENGINEER- IN-CHARGE, beforecommunicating his approval to the scheme, with any requiredmodification, shall get the final agreement of all the agencies,which shall be binding. No claim shall be entertained on accountof the above.The CONTRACTOR shall confirm in all respects with provision ofany statutory regulations, ordinances or byelaws of any local orduly constituted authorities or public bodies which may beapplicable from time to time to the WORK or any temporaryworks. The CONTRACTOR shall keep the EMPLOYERindemnified against all penalties and liabilities of every kind,arising out of non- adherance to such stains, ordinances, laws,rules, regulations, etc.27

General Conditions of Contract40 Other agencies at site: 40.1 The CONTRACTOR shall have to execute the WORK in suchplace and conditions where other agencies will also be engagedfor other works such as site grading, filling, and levelling,electrical and mechanical engineering works, etc. No claim shallbe entertained due to WORK being executed in the abovecircumstances.41 Notice: 41.1 TO THE CONTRACTOR:Any notice hereunder may be served on the CONTRACTOR orhis duly authorised representative at the job site or may beserved by registered mail direct to the address furnished by theCONTRACTOR. Proof of issue of any such notice could beconclusive of the CONTRACTOR having been duly informed ofall contents therein.41.2 TO THE EMPLOYER:Any notice to be given to the EMPLOYER under the terms of theCONTRACTOR shall be served by sending the same byRegistered mail to or delivering the same at the respective siteoffices of M/S. GAIL (INDIA) LTD. addressed to theHEAD/SITE-IN-CHARGE.42 Right of variousinterests:42.1 i) The EMPLOYER reserves the right to distribute the workbetween more than one agency(ies). TheCONTRACTOR shall cooperate and afford otheragency(ies) reasonable opportunity for access to theWORK for the carriage and storage of materials andexecution of their works.ii) Wherever the work being done by any department of theEMPLOYER or by other agency(ies) employed by theEMPLOYER is contingent upon WORK covered by thisCONTRACT, the respective rights of the variousinterests involved shall be determined by theENGINEER-IN-CHARGE to secure the completion of thevarious portions of the work in general harmony.43 Patents and royalties: 43.1 The CONTRACTOR, if licensed under any patent coveringequipment, machinery, materials or compositions of matter to beused or supplied or methods and process to be practised oremployed in the performance of this CONTRACT, agrees to payall royalties and licence fees which may be due with respectthereto. If any equipment, machinery, materials, composition ofmatters, be used or supplied or methods and processes to bepractised or employed in the performance of this CONTRACT,iscovered by a patent under which the CONTRACTOR is notlicensed then the CONTRACTOR before supplying or using theequipment, machinery materials, composition method orprocesses shall obtain such licences and pay such royalties andlicence fees as may be necessary for performance of thisCONTRACT. In the event the CONTRACTOR fails to pay anysuch royalty or obtain any such licence, any suit for infringementof such patents which is brought against the CONTRACTOR orthe EMPLOYER as a result such failure will be defended by theCONTRACTOR at his own expense and the CONTRACTOR willpay any damages and costs awarded in such suit. TheCONTRACTOR shall promptly notify the EMPLOYER if theCONTRACTOR has acquired the knowledge of any plant under28

General Conditions of Contractwhich a suit for infringement could be reasonably broughtbecause of the use by the EMPLOYER of any equipment,machinery, materials, process, methods to be suppliedhereunder. The CONTRACTOR agrees to and does herebygrant to EMPLOYER, together with the right to extend the sameto any of the subsidiaries of the EMPLOYER as irrevocable,royalty free licence to use in any country, any invention made bythe CONTRACTOR or his employee in or as result of theperformance of the WORK under the CONTRACT.43.2 All charges on account of royalty. toilage, rent, octroi terminal orsales tax and/or other duties or any other levy on materialsobtained for the work or temporary work or part thereof(excluding materials provided by the EMPLOYER) shall be borneby the CONTRACTOR.43.3 The CONTRACTOR shall not sell or otherwise dispose of orremove except for the purpose of this CONTRACT, the sand,stone, clay, ballast, earth, rock or other substances, or materialsobtained from any excavation made for the purpose of theWORK or any building or produce upon the site at the time ofdelivery of the possession thereof, but all such substances,materials, buildings and produce shall be the property of theEMPLOYER provided that the CONTRACTOR may with thepermission of the ENGINEER-IN-CHARGE, use the same for thepurpose of the work by payment of cost of the same at such arate as may be determined by the ENGINEER-IN- CHARGE.43.4 The EMPLOYER shall indemnify and save harmless theCONTRACTOR from any loss on account of claims againstCONTRACTOR for the contributory infringement of patent rightsarising out and based upon the claim that the use of theEMPLOYER of the process included in the design prepared bythe EMPLOYER and used in the operation of the plant infringeson any patent right. With respect to any subcontract entered intoby CONTRACTOR pursuant to the provisions of the relevantclause hereof, the CONTRACTOR shall obtain from theSUB-CONTRACTOR an undertaking to provide the EMPLOYERwith the same patent protection that CONTRACTOR is requiredto provide under the provisions of this clause.44 Liens: 44.1 If, at any time there should be evidence or any lien or claim forwhich the EMPLOYER might have become liable and which ischargeable to the CONTRACTOR, the EMPLOYER shall havethe right to retain out of any payment then due or thereafter tobecome due an amount sufficient to completely indemnify theEMPLOYER against such lien or claim and if such lien or claimbe valid, the EMPLOYER may pay and discharge the same anddeduct the amount so paid from any money which may be ormay become due and payable to the CONTRACTOR. If any lienor claim remain unsettled after all payments are made, theCONTRACTOR shall refund or pay to the EMPLOYER all moneythat the latter may be compelled to pay in discharging such lienor claim including all costs and reasonable expenses.EMPLOYER reserves the right to do the same.44.2 The EMPLOYER shall have lien on all materials, equipmentsincluding those brought by the CONTRACTOR for the purpose oferection, testing and commissioning of the WORK.29

General Conditions of Contract44.3 The final payment shall not become due until the CONTRACTORdelivers to the ENGINEER-IN-CHARGE a complete release orwaiver of all liens arising or which may arise out of his agreementor receipt in full or certification by the CONTRACTOR in a formapproved by ENGINEER-IN-CHARGE that all invoices for labour,materials, services have been paid in lien thereof and if requiredby the ENGINEER-IN-CHARGE in any case an affidavit that sofar as the CONTRACTOR has knowledge or information thereleases and receipts include all the labour and material for whicha lien could be filled.44.4 CONTRACTOR will indemnify and hold the EMPLOYERharmless, for a period of two years after the issue of FINALCERTIFICATE, from all liens and other encumbrances againstthe EMPLOYER on account of debts or claims alleged to be duefrom the CONTRACTOR or his SUB-CONTRACTOR to anyperson including SUB- CONTRACTOR and on behalf ofEMPLOYER will defend at his own expense, any claim orlitigation brought against the EMPLOYER or the CONTRACTORin connection therewith. CONTRACTOR shall defend or contestat his own expense any fresh claim or litigation by any personincluding his SUB-CONTRACTOR, till its satisfactory settlementeven after the expiry of two years from the date of issue of FINALCERTIFICATE.45 Delays by employer orhis authorised agents:45.1 In case the CONTRACTOR's performance is delayed due to anyact or omission on the part of the EMPLOYER or his authorisedagents, then the CONTRACTOR shall be given due extension oftime for the completion of the WORK, to the extent such omissionon the part of the EMPLOYER has caused delay in theCONTRACTOR's performance of his WORK.45.2 No adjustment in CONTRACT PRICE shall be allowed forreasons of such delays and extensions granted except asprovided in TENDER DOCUMENT, where the EMPLOYERreserves the right to seek indulgence of CONTRACTOR tomaintain the agreed Time Schedule of Completion.In such an event the CONTRACTOR shall be obliged for workingby CONTRACTOR's personnel for additional time beyondstipulated working hours as also Sundays and Holidays andachieve the completion date/interim targets.46 Payment if the contract isterminated:46.1 If the CONTRACT shall be terminated as per Tender pursuant toClause no. 29 of GCC, the CONTRACTOR shall be paid by theEMPLOYER in so far as such amounts or items shall not havealready been covered by payments of amounts made to theCONTRACTOR for the WORK executed and accepted byENGINEER-IN-CHARGE prior to the date of termination at therates and prices provided for in the CONTRACT and in additionto the following:a) The amount payable in respect of any preliminary items, sofar as the Work or service comprised therein has beencarried out or performed and an appropriate portion ascertified by ENGINEER-IN- CHARGE of any such items orservice comprised in which has been partially carried out orperformed.30

General Conditions of Contractb) Any other expenses which the CONTRACTOR hasexpended for performing the WORK under the CONTRACTsubject to being duly recommended byENGINEER-IN-CHARGE and approved by EMPLOYER forpayment, based on documentary evidence of his havingincurred such expenses.46.2 The CONTRACTOR will be further required to transfer the titleand provide the following in the manner and as directed by theEMPLOYER.a) Any and all completed works.b) Such partially completed WORK including drawings,informations and CONTRACT rights as the CONTRACTORhas specially performed, produced or acquired for theperformance 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 forpayment of money or any payment for or acceptance of thewhole or any part of the Work by the EMPLOYER nor anyextension of time, nor any possession taken by EMPLOYERshall operate as a waiver of any provision of the CONTRACT, orof any power herein reserved to the EMPLOYER, or any right todamages herein provided, nor shall any waiver of any breach inthe CONTRACT be held to be a waiver of any other subsequentbreach.48 Certificate not to affectright of employer andliability of contractor:48.1 No interim payment certificate(s) issued by the Engineer-in-Charge of the EMPLOYER, nor any sum paid on account by theEMPLOYER, nor any extension of time for execution of the workgranted by EMPLOYER shall affect or prejudice the rights of theEmployer against the CONTRACTOR or relieve theCONTRACTOR of his obligations for the due performance of theCONTRACT, or be interpreted as approval of the WORK done orof the equipment supplied and no certificate shall create liabilityfor the EMPLOYER to pay for alterations, amendments,variations or additional works not ordered, in writing, byEMPLOYER or discharge the liability of the CONTRACTOR forthe payment of damages whether due, ascertained, or certified ornot or any sum against the payment of which he is bound toindemnify the EMPLOYER.49 Language and measures: 49.1 All documents pertaining to the CONTRACT includingSpecifications, Schedules, Notices, Correspondence, operatingand maintenance Instructions, DRAWINGS, or any other writingshall be written in English language. The Metric System ofmeasurement shall be used in the CONTRACT unless otherwisespecified.50 Transfer of title: 50.1 The title of Ownership of supplies furnished by theCONTRACTOR shall not pass on to the EMPLOYER for allSupplies till the same are finally accepted by the EMPLOYERafter the successful completion of PERFORMANCE TEST andGUARANTEE TEST and issue of FINAL CERTIFICATE.50.2 However, the EMPLOYER shall have the lien on all such worksperformed as soon as any advance or progressive payment ismade by the EMPLOYER to the CONTRACTOR and the31

General Conditions of ContractCONTRACTOR shall not subject these works for use other thanthose 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, orother reproduction of the Work under this CONTRACT ordescription of the site dimensions, quantity , quality or otherinformation, concerning the Work unless prior written permissionhas been obtained from the EMPLOYER.52 Brand names: 52.1 The specific reference in the SPECIFICATIONS and documentsto any material by trade name, make or catalogue number shallbe construed as establishing standard or quality andperformance and not as limited competition. However,TENDERER may offer other similar equipments provided itmeets the specified standard design and performancerequirements.53 Completion of contract: 53.1 Unless otherwise terminated under the provisions of any otherrelevant clause, this CONTRACT shall be deemed to have beencompleted at the expiration of the PERIOD OF LIABILITY asprovided for under the CONTRACT.54 Spares: 54.1 The CONTRACTOR shall furnish to the EMPLOYER all sparesrequired for COMMISSIONING of the plants, recommendatoryand/or mandatory spares, which are required essential by themanufacturer/supplier. The same shall be delivered at SITE,3(Three) months before COMMISSIONING.Also the CONTRACTOR should furnish the manufacturingdrawings for fast wearing spares.54.2 The CONTRACTOR guarantees the EMPLOYER that before themanufacturers of the equipments, plants and machineries go outof production of spare parts for the equipment furnished anderected by him, he shall give at least twelve (12) months'advance notice to the EMPLOYER, so that the latter may orderhis requirement of spares in one lot, if he so desires.SECTION-VPERFORMANCE OF WORK55 Execution of work: 55.1 All the Works shall be executed in strict conformity with theprovisions of the CONTRACT Documents and with suchexplanatory detailed drawings, specification and instructionsas may be furnished from time to time to theCONTRACTOR by the ENGINEER-IN-CHARGE whethermentioned in the CONTRACT or not. The CONTRACTORshall be responsible for ensuring that works throughout areexecuted in the most substantial, proper and workmanlikemanner with the quality of material and workmanship in strictaccordance with the SPECIFICATIONS and to the entiresatisfaction of the ENGINEER-IN-CHARGE. TheCONTRACTOR shall provide all necessary materialsequipment labour etc. for execution and maintenance ofWORK till completion unless otherwise mentioned in theCONTRACT.32

General Conditions of Contract56 Co-ordination and inspectionof work:57 Work in monsoon anddewatering:56.1 The coordination and inspection of the day-to-day workunder the CONTRACT shall be the responsibility of theENGINEER-IN-CHARGE. The written instruction regardingany particular job will normally be passed by theENGINEER-IN-CHARGE or his authorised representative.A work order book will be maintained by the CONTRACTORfor each sector in which the aforesaid written instructions willbe entered. These will be signed by the CONTRACTOR orhis authorised representative by way of acknowledgementwithin 12 hours.57.1 Unless otherwise specified elsewhere in the tender, theexecution of the WORK may entail working in the monsoonalso. The CONTRACTOR must maintain a minimum labourforce as may be required for the job and plan and executethe construction and erection according to the prescribedschedule. No extra rate will be considered for such work inmonsoon.57.2 During monsoon and other period, it shall be theresponsibility of the CONTRACTOR to keep the constructionwork site free from water at his own cost.58 Work on Sundays andHolidays:59 General conditions forconstruction and erectionwork:58.1 For carrying out Work on Sundays, and Holidays, theCONTRACTOR will approach the ENGINEER-IN-CHARGEor his representative at least two days in advance and obtainpermission in writing. The CONTRACTOR shall observe alllabour laws and other statutory rules and regulations inforce. In case of any violations of such laws, rules andregulations, consequence if any, including the cost theretoshall be exclusively borne by the CONTRACTOR and theEMPLOYER shall have no liability whatsoever on thisaccount.59.1 The working time at the site of work is 48 hours per week.Overtime work is permitted in cases of need and theEMPLOYER will not compensate the same. Shift working at2 or 3 shifts per day will become necessary and theCONTRACTOR should take this aspect into considerationfor formulating his rates for quotation. No extra claims willbe entertained by the EMPLOYER no this account. Forcarrying out work beyond working hours the CONTRACTORwill approach the ENGINEER-IN-CHARGE or his authorisedrepresentative and obtain his prior written permission.59.2 The CONTRACTOR must arrange for the placement ofworkers in such a way that the delayed completion of theWORK or any part thereof for any reason whatsoever willnot affect their proper employment. The EMPLOYER willnot entertain any claim for idle time payment whatsoever.59.3 The CONTRACTOR shall submit to theEMPLOYER/ENGINEER-IN- CHARGE reports at regularintervals regarding the state and progress of WORK. Thedetails and proforma of the report will mutually be agreedafter the award of CONTRACT. The CONTRACTOR shallprovide display boards showing progress and labourstrengths at worksite, as directed by theENGINEER-IN-CHARGE.33

General Conditions of Contract60 Alterations in specifications,design and extra works:60.1 The WORK covered under this CONTRACT having to beexecuted by the CONTRACTOR on a lumpsum firmprice/item rate quoted by him, the EMPLOYER will notaccept any proposals for changes in VALUE OFCONTRACT or extension in time on account of any suchchanges which may arise to the CONTRACTOR's scope ofWORK as a result of detailed Engineering and thereafterduring the execution of WORK. The only exception to thiswill be a case where the EMPLOYER requests in writing tothe CONTRACTOR to upgrade the SPECIFICATIONS orthe size of any major pieces of equipments, plant ormachinery beyond what is normally required to meet thescope of WORK as defined in the CONTRACTDOCUMENT.In such cases, a change order will be initialled by theCONTRACTOR at the appropriate time for theEMPLOYER's prior approval giving the full back-up data fortheir review and for final settlement of any impact on pricewithin 30 (thirty) days thereafter.60.2 The ENGINEER-IN-CHARGE shall have to make anyalterations 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 benecessary or advisable during the progress of the WORKand the CONTRACTOR shall be bound to carry out thesuch altered/ extra/ new items of WORK in accordance withany instructions which may be given to him in writing signedby the ENGINEER-IN- CHARGE, and such alterations,omissions, additions or substitutions shall not invalidate theCONTRACT and any altered, additional or substituted workwhich the CONTRACTOR may be directed to do in themanner above specified as part of the WORK shall becarried out by the CONTRACTOR on the same conditions inall respects on which he agreed to do the main WORK. Thetime of completion of WORK may be extended for the part ofthe particular job at the discretion of theENGINEER-IN- CHARGE, for only such alterations,additions or substitutions of the WORK, as he may consideras just and reasonable. The rates for such additional,altered or substituted WORK under this clause shall beworked out in accordance with the following provisions:-I. For Item Rate Contracta) If the rates for the additional, altered or substitutedWORK are specified in the CONTRACT for theWORK, the CONTRACTOR is bound to carry on theadditional, altered or substituted WORK at the samerates as are specified in the CONTRACT.b) If the rates for the additional, altered or substitutedWORK are not specifically provided in theCONTRACT for the WORK, the rates will be derivedfrom the rates for similar class of WORK as arespecified in the CONTRACT for the WORK. Theopinion of the ENGINEER-IN- CHARGE, as towhether or not the rates can be reasonably so derived34

General Conditions of Contractfrom the items in this CONTRACT will be final andbinding on the CONTRACTOR.c) If the rates for the altered, additional or substitutedWORK cannot be determined in the manner specifiedin sub-clause(s) and (b) above, then theCONTRACTOR shall, within 7 days of the date ofreceipt of order to carry out the WORK, inform theENGINEER-IN-CHARGE of the rates which it is hisintention to charge for such class of WORK,supported by analysis of the rate or rates claimed,and the ENGINEER-IN-CHARGE shall determine therate or rates on the basis of the prevailing marketrates, labour cost at schedule of labour rates plus10% to cover contractor's supervision, overheads andprofit and pay the CONTRACTOR accordingly. Theopinion of the ENGINEER- IN-CHARGE as to currentmarket rates of materials and the quantum of labourinvolved per unit of measurement will be final andbinding on the CONTRACTOR.d) Where the item of work will be executed throughnominated specialist agency as approved by theENGINEER-IN-CHARGE, then the actual amountpaid to such nominated agency supported bydocumentary evidence and as certified byENGINEER-IN-CHARGE shall be considered plus10% (ten percent) to cover all contingencies,overhead, profits to arrive at the rates.e) Provisions contained in the Sub-clause (a) & (d)above shall, however, not apply for the following:-Where the value of additions of new items togetherwith the value of alterations, additions/deletions orsubstitutions does not exceed by or is not less thanplus/minus (+_)25% of the VALUE OF CONTRACT.The item rates in the Schedule of Rates shall holdgood for all such variations between the abovementioned limits, irrespective of anyincrease/decrease of quantities in the individual itemsof Schedule of Rates.Where the value of addition of new items togetherwith the value of alterations, additions/deletions orsubstitutions reduces more than 25% of the contractvalue but is within the following limits the tenderershall be paid compensation for decrease in the valueof work, as follows:S.No. Range of VariationPercentagecompensation fordecrease in the value ofwork in the respectiverange.a) Beyond (+) 25% No increase and/orupto & inclusive of decrease shall be(+) 50% applicable for theSchedule of Rates35

General Conditions of Contract(The rates quoted forthis increase shall bevalid).b) Beyond (-) 25% upto & For reduction beyondinclusive of (-) 50% 25%contractor shallbe compensated byan amount equivalentto 10% of thereduction in value ofthe contract asawarded. Forexample if the actualcontract value is 70%of awarded value thencompensation shallbe 10% of (75-70) i.e.0.5% of awardedcontract value.II. For Lumpsum ContractsCONTRACTOR shall, within 7 days of the date of receiptof order to carry out the WORK, inform theENGINEER-IN- CHARGE of the rates which it is hisintention to charge for such class of WORK, supported byanalysis of the rate or rates claimed, and theENGINEER-IN-CHARGE shall determine the rate or rateson the basis of the prevailing market rates, labour cost atschedule of labour rates plus 10% to cover contractor'ssupervision, overheads and profit and pay theCONTRACTOR accordingly. The opinion of theENGINEER- IN-CHARGE as to current market rates ofmaterials and the quantum of labour involved per unit ofmeasurement will be final and binding on theCONTRACTOR.61 Drawings to be supplied bythe employer61.1 The drawings attached with tender are only for the generalguidance to the CONTRACTOR to enable him to visualizethe type of work contemplated and scope of work involved.The CONTRACTOR will be deemed to have studied theDRAWINGS and formed an idea about the WORKinvolved.61.2 Detailed working drawings on the basis of which actualexecution of the WORK is to proceed, will be furnishedfrom time to time during the progress of the work. TheCONTRACTOR shall be deemed to have gone through theDRAWINGS supplied to him thoroughly and carefully andin conjunction with all other connected drawings and bringto the notice of the ENGINEER-IN-CHARGEdiscrepancies, if any, therein before actually carrying outthe Work.61.3 Copies of all detailed working drawings relating to theWORK shall be kept at the CONTRACTOR's office on thesite and shall be made available to theENGINEER-IN- CHARGE at any time during theCONTRACT. The drawings and other documents issuedby the EMPLOYER shall be returned to the EMPLOYER oncompletion of the WORK.36

General Conditions of Contract62 Drawings to be supplied bythe contractor:62.1 The drawings/date which are to be furnished by theCONTRACTOR are enumerated in the special conditionsof 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 beCONTRACTOR's responsibility to have these drawingsprepared as per the directions of ENGINEER-IN-CHARGEand got approved before proceeding withmanufacture/construction/fabrication as the case may be.Any change that may have become necessary in thesedrawings during the execution of the work shall have to becarried out by the CONTRACTOR to the satisfaction ofENGINEER-IN-CHARGE at no extra cost. All finaldrawings shall bear the certification stamp as indicatedbelow duly signed by both the CONTRACTOR andENGINEER-IN-CHARGE."Certified true for _________________________________(Name of Work)AgreementNo.___________________________________________Signed:__________________________________(CONTRACTOR)(ENGINEER-IN-CHARGE)62.3 The DRAWINGS submitted by the CONTRACTOR shall bereviewed by the ENGINEER-IN-CHARGE as far aspracticable within 3 (Three) weeks and shall be modified bythe CONTRACTOR, if any modifications and/or correctionsare required by the ENGINEER-IN-CHARGE. TheCONTRACTOR shall incorporate such modifications and/orcorrections and submit the final drawings for approval. Anydelays arising out of failure by the CONTRACTOR to rectifythe drawing in good time shall not alter the ContractCompletion Time.62.4 As built drawings showing all corrections, adjustments etc.shall be furnished by the CONTRACTOR in six copies andone transparent for record purposed to the EMPLOYER.63 Setting out works: 63.1 The ENGINEER-IN-CHARGE shall furnish theCONTRACTOR with only the four corners of the Works siteand a level bench mark and the CONTRACTOR shall setout the Works and shall provide an efficient staff for thepurpose and shall be solely responsible for the accuracy ofsuch setting out.63.2 The CONTRACTOR shall provide, fix and be responsiblefor the maintenance of all stakes, templates, level marks,profiles and other similar things and shall take all necessaryprecautions to prevent their removal or disturbance andshall be responsible for the consequence of such removalor disturbance should the same take place and for their37

General Conditions of Contractefficient and timely reinstatement. The CONTRACTORshall also be responsible for the maintenance of all existingsurvey marks, boundary marks, distance marks and centerline marks, either existing or supplied and fixed by theCONTRACTOR. The work shall be set out to thesatisfaction of the ENGINEER-IN-CHARGE. The approvalthere of joining with the CONTRACTOR by theENGINEER- IN-CHARGE in setting out the work, shall notrelieve the CONTRACTOR of any of his responsibility.63.3 Before beginning the Works, the CONTRACTOR shall athis own cost, provide all necessary reference and levelposts, pegs, bamboos, flags, ranging rods, strings andother materials for proper layout of the works in accordancewith the schemes for bearing marks acceptable to theENGINEER-IN-CHARGE. The center, longitudinal or facelines and cross lines shall be marked by means of smallmasonry pillars. Each pillar shall have distinct mark at thecentre to enable theodolite to be set over it. No work shallbe started until all these points are checked and approvedby the ENGINEER-IN-CHARGE in writing but suchapproval shall not relieve the CONTRACTOR of any of hisresponsibilities. The CONTRACTOR shall also provide alllabour, material and other facilities, as necessary, for theproper checking of layout and inspection of the pointsduring construction.63.4 Pillars bearing geodetic marks located at the sites of unitsof WORKS under construction should be protected andfenced by the CONTRACTOR.63.5 On completion of WORK, the CONTRACTOR must submitthe geodetic documents according to which the WORK wascarried out.64 Responsibility for level andalignment:65 Materials to be supplied bycontractor:64.1 The CONTRACTOR shall be entirely and exclusivelyresponsible for the horizontal and vertical alignment, thelevels and correctness of every part of the WORK and shallrectify effectively any errors or imperfections therein, suchrectifications shall be carried out by the CONTRACTOR, athis own cost, when instructions are issued to that effect bythe ENGINEER- IN-CHARGE.65.1 The CONTRACTOR shall procure and provide within theVALUE OF CONTRACT the whole of the materialsrequired for the construction including steels, cement andother building materials, tools, tackles, construction plantand equipment for the completion and maintenance of theWORK except the materials which will be issued by theEMPLOYER and shall make his own arrangement forprocuring such materials and for the transport thereof. TheEMPLOYER may give necessary recommendation to therespective authority if so desired by the CONTRACTOR butassumes no further responsibility of any nature. TheEMPLOYER will insist on the procurement of materialswhich bear ISI stamp and/or which are supplied by reputedsuppliers.38

General Conditions of Contract65.2 The CONTRACTOR shall properly store all materials eitherissued to him or brought by him to the SITE to preventdamages due to rain, wind, direct exposure to sun, etc. asalso from theft, pilferage, etc. for proper and speedyexecution of his works. The CONTRACTOR shall maintainsufficient stocks of all materials required by him.65.3 No material shall be despatched from the CONTRACTOR'sstores before obtaining the approval in writing of theENGINEER-IN-CHARGE.66 Stores supplied by theemployer:66.1 If the SPECIFICATION of the WORK provides for the useof any material of special description to be supplied fromthe EMPLOYER's stores or it is required that theCONTRACTOR shall use certain stores to be provided bythe ENGINEER-IN-CHARGE, such materials and stores,and price to be charged there for as hereinafter mentionedbeing so far as practicable for the convenience of theCONTRACTOR, but not so as in any way to control themeaning or effect of the CONTRACT, the CONTRACTORshall be bound to purchase and shall be supplied suchmaterials and stores as are from time to time required to beused by him for the purpose of the CONTRACT only. Thesums due from the CONTRACTOR for the value ofmaterials supplied by the EMPLOYER will be recoveredfrom the running account bill on the basis of the actualconsumption of materials in the works covered and forwhich the running account bill has been prepared. After thecompletion of the WORK, however, the CONTRACTORhas to account for the full quantity of materials supplied tohim as per relevant clauses in this document.66.2 The value of the stores/materials as may be supplied to theCONTRACTOR by the EMPLOYER will be debited to theCONTRACTOR's account at the rates shown in theschedule of materials and if they are not entered in theschedule, they will be debited at cost price, which for thepurpose of the CONTRACT shall include the cost ofcarriage and all other expenses whatsoever such asnormal storage supervision charges which shall have beenincurred in obtaining the same at the EMPLOYER's stores.All materials so supplied to the CONTRACTOR shallremain the absolute property of the EMPLOYER and shallnot be removed on any account from the SITE of theWORK, and shall be at all times open for inspection to theENGINEER-IN-CHARGE. Any such materials remainingunused at the time of the completion or termination of theCONTRACT shall be returned to the EMPLOYER's storesor at a place as directed by the ENGINEER-IN-CHARGE inperfectly good condition at CONTRACTOR's cost.67 Conditions for issue ofmaterials:67.1 i) Materials specified as to be issued by theEMPLOYER will be supplied to the CONTRACTORby the EMPLOYER form his stores. It shall beresponsibility of the CONTRACTOR to take deliveryof the materials and arrange for its loading, transportand unloading at the SITE of WORK at his own cost.The materials shall be issued between the workinghours and as per the rules of the EMPLOYER asframed from time to time.39

General Conditions of Contractii)The CONTRACTOR shall bear all incidental chargesfor the storage and safe custody of materials at siteafter these have been issued to him.iii) Materials specified as to be issued by theEMPLOYER shall be issued in standard sizes asobtained from the manufacturers.iv) The CONTRACTOR shall construct suitableGodowns at the SITE of WORK for storing thematerials safe against damage by rain, dampness,fire, theft etc. He shall also employ necessary watchand ward establishment for the purpose.v) It shall be duty of the CONTRACTOR to inspect thematerials supplied to him at the time of taking deliveryand satisfy himself that they are in good condition.After the materials have been delivered by theEMPLOYER, it shall be the responsibility of theCONTRACTOR to keep them in good condition and ifthe materials are damaged or lost, at any time, theyshall be repaired and/or replaced by him at his owncost according to the instructions of theENGINEER-IN-CHARGE.vi) The EMPLOYER shall not be liable for delay insupply or non-supply of any materials which theEMPLOYER has undertaken to supply where suchfailure or delay is due to natural calamities, act ofenemies, transport and procurement difficulties andany circumstances beyond the control of theEMPLOYER. In no case, the CONTRACTOR shallbe entitled to claim any compensation or loss sufferedby him on this account.vii) It shall be responsibility of the CONTRACTOR toarrange in time all materials required for the WORKother than those to be supplied by the EMPLOYER.If, however, in the opinion of theENGINEER-IN-CHARGE the execution of the WORKis likely to be delayed due to the CONTRACTOR'sinability to make arrangements for supply of materialswhich normally he has to arrange for, theENGINEER-IN-CHARGE shall have the right at hisown discretion to issue such materials, if availablewith the EMPLOYER or procure the materials fromthe market or as elsewhere and the CONTRACTORwill be bound to take such materials at the ratesdecided by the ENGINEER-IN-CHARGE. This,however, does not in any way absolve theCONTRACTOR from responsibility of makingarrangements for the supply of such materials in partor in full, should such a situation occur nor shall thisconstitute a reason for the delay in the execution ofthe WORK.40

General Conditions of Contractviii) None of the materials supplied to the CONTRACTORwill be utilised by the CONTRACTOR formanufacturing item which can be obtained assupplied from standard manufacturer in finishedform.ix) The CONTRACTOR shall, if desired by theENGINEER- IN-CHARGE, be required to execute anIndemnity Bond in the prescribed form for safecustody and accounting of all materials issued by theEMPLOYER.x) The CONTRACTOR shall furnish to theENGINEER-IN- CHARGE sufficiently in advance astatement showing his requirement of the quantitiesof the materials to be supplied by the EMPLOYERand the time when the same will be required by himfor the works, so as to enable theENGINEER-IN-CHARGE to make necessaryarrangements for procurement and supply of thematerial.xi)xii)Account of the materials issued by the EMPLOYERshall be maintained by CONTRACTOR indicating thedaily receipt, consumption and balance in hand. Thisaccount shall be maintained in a manner prescribedby the ENGINEER-IN-CHARGE along with allconnected papers viz. requisitions, issues, etc., andshall be always available for inspection in theCONTRACTOR's office at SITE.The CONTRACTOR should see that only therequired quantities of materials are got issued. TheCONTRACTOR shall not be entitled to cartage andincidental charges for returning the surplus materials,if any, to the stores wherefrom they were issued or tothe place as directed by theENGINEER-IN-CHARGE.xiii) Materials/Equipment(s) supplied by EMPLOYER shallnot be utilised for any purpose(s) than issued for.68 Material procured withassistance ofemployer/return of surplus:68.1 Notwithstanding anything contained to the contrary in anyor all the clauses of this CONTRACT where any materialsfor the execution of the CONTRACT are procured with theassistance of the EMPLOYER either by issue fromEMPLOYER's stock or purchases made under order orpermits or licences issued by Government, theCONTRACTOR shall hold the said materials as trustee forthe EMPLOYER and use such materials economically andsolely for the purpose of the CONTRACT and not disposethem off without the permission of the EMPLOYER andreturn, if required by the ENGINEER-IN-CHARGE, shalldetermine having due regard to the condition of thematerials. The price allowed to the CONTRACTOR,however, shall not exceed the amount charged to himexcluding the storage charges, if any. The decision of theENGINEER-IN-CHARGE shall be final and conclusive insuch matters. In the event of breach of the aforesaid41

General Conditions of Contractcondition, the CONTRACTOR shall, in terms of thelicences or permits and/or criminal breach of trust, be liableto compensate the EMPLOYER at double rate or anyhigher rate, in the event of those materials at that timehaving higher rate or not being available in the market, thenany other rate to be determined by theENGINEER-IN-CHARGE and his decision shall be finaland conclusive.69 Materials obtained fromdismantling:69.1 If the CONTRACTOR in the course of execution of theWORK is called upon to dismantle any part for reasonsother than those stipulated in Clauses 74 and 77hereunder, the materials obtained in the WORK ofdismantling etc., will be considered as the EMPLOYER'sproperty and will be disposed off to the best advantage ofthe EMPLOYER.70 Articles of value found: 70.1 All gold, silver and other minerals of any description and allprecious stones, coins, treasure relics, antiquities and othersimilar things which shall be found in, under or upon theSITE, shall be the property of the EMPLOYER and theCONTRACTOR shall duly preserve the same to thesatisfaction of the ENGINEER-IN-CHARGE and shall fromtime to time deliver the same to such person or personsindicated by the EMPLOYER.71 Discrepancies betweeninstructions:72 Action where no specificationis issued:71.1 Should any discrepancy occur between the variousinstructions furnished to the CONTRACTOR, his agent orstaff or any doubt arises as to the meaning of any suchinstructions or should there be any misunderstandingbetween the CONTRACTOR's staff and theENGINEER-IN- CHARGE's staff, the CONTRACTOR shallrefer the matter immediately in writing to theENGINEER-IN-CHARGE whose decision thereon shall befinal and conclusive and no claim for losses alleged to havebeen caused by such discrepancies between instructions,doubts, or misunderstanding shall in any event beadmissible.72.1 In case of any class of WORK for which there is noSPECIFICATION supplied by the EMPLOYER asmentioned in the Tender Documents such WORK shall becarried out in accordance with Indian StandardSpecifications and if the Indian Standard Specifications donot cover the same, the WORK should be carried out asper standard Engineering Practice subject to the approvalof the ENGINEER-IN-CHARGE.73 Inspection of works: 73.1 The ENGINEER-IN-CHARGE will have full power andauthority to inspect the WORK at any time wherever inprogress either on the SITE or at the CONTRACTOR'spremises/workshops wherever situated, premises/workshops of any person, firm or corporation where WORKin connection with the CONTRACT may be in hand orwhere materials are being or are to be supplied, and theCONTRACTOR shall afford or procure for theENGINEER-IN- CHARGE every facility and assistance tocarry out such inspection. The CONTRACTOR shall, at alltime during the usual working hours and at all other time at42

General Conditions of Contractwhich reasonable notice of the intention of theENGINEER-IN- CHARGE or his representative to visit theWORK shall have been given to the CONTRACTOR, eitherhimself be present or receive orders and instructions, orhave a responsible agent duly accredited in writing, presentfor the purpose. Orders given to the CONTRACTOR'sagent shall be considered to have the same force as if theyhad been given to the CONTRACTOR himself. TheCONTRACTOR shall give not less than seven days noticein writing to the ENGINEER-IN-CHARGE before coveringup or otherwise placing beyond reach of inspection andmeasurement of any work in order that the same may beinspected and measured. In the event of breach of abovethe same shall be uncovered at CONTRACTOR's expensefor carrying out such measurement or inspection.73.2 No material shall be despatched from the CONTRACTOR'sstores before obtaining the approval in writing of theEngineer-in-Charge.The CONTRACTOR is to provide at all time during theprogress of the WORK and the maintenance period, propermeans of access with ladders, gangways etc. and thenecessary attendance to move and adopt as directed forinspection or measurements of the WORK by theENGINEER- IN-CHARGE.73.3 The CONTRACTOR shall make available to theENGINEER-IN- CHARGE free of cost all necessaryinstruments and assistance in checking or setting out ofWORK and in the checking of any WORK made by theCONTRACTOR for the purpose of setting out and takingmeasurements of WORK.74 Tests for quality of work: 74.1 All workmanship shall be of the respective kinds describedin the CONTRACT DOCUMENTS and in accordance withthe instructions of the ENGINEER-IN-CHARGE and shallbe subjected from time to time to such test atCONTRACTOR's cost as the ENGINEER-IN-CHARGEmay direct at the place of manufacture or fabrication or onthe site or at all or any such places. The CONTRACTORshall provide assistance, instruments, labour and materialsas are normally required for examining, measuring andtesting any workmanship as may be selected and requiredby the ENGINEER-IN-CHARGE.74.2 All the tests that will be necessary in connection with theexecution of the WORK as decided by theENGINEER- IN-CHARGE shall be carried out at the fieldtesting laboratory of the EMPLOYER by paying the chargesas decided by the EMPLOYER from time to time. In case ofnon- availability of testing facility with the EMPLOYER, therequired test shall be carried out at the cost ofCONTRACTOR at Government or any other testinglaboratory as directed by ENGINEER-IN-CHARGE.74.3 If any tests are required to be carried out in conjunction withthe WORK or materials or workmanship not supplied by theCONTRACTOR, such tests shall be carried out by theCONTRACTOR as per instructions of43

General Conditions of ContractENGINEER-IN-CHARGE and cost of such tests shall bereimbursed by the EMPLOYER.75 Samples for approval: 75.1 The CONTRACTOR shall furnish to theENGINEER-IN-CHARGE for approval, when requested orif required by the specifications, adequate samples of allmaterials and finished to be used in the WORK. Suchsamples shall be submitted before the WORK iscommenced and in ample time to permit tests andexaminations thereof. All materials furnished and finishesapplied in actual WORK shall be fully equal to the approvedsamples.76 Action and compensation incase of bad work:76.1 If it shall appear to the ENGINEER-IN-CHARGE that anywork has been executed with unsound, imperfect orunskilled workmanship, or with materials of any inferiordescription, or that any materials or articles provided by theCONTRACTOR for the execution of the WORK areunsound, or of a quality inferior to that contracted for, orotherwise not in accordance with the CONTRACT, theCONTRACTOR shall on demand in writing from theENGINEER-IN-CHARGE or his authorised representativespecifying the WORK, materials or articles complained ofnotwithstanding that the same may have been inadvertentlypassed, certified and paid for, forthwith rectify or removeand reconstruct the WORK so specified and provide otherproper and suitable materials or articles at his own cost andin the event of failure to do so within the period specifiedby the ENGINEER-IN-CHARGE in his demand aforesaid,the CONTRACTOR shall be liable to pay compensation atthe rate of 1 % (One percent) of the estimated cost of thewhole WORK, for every week limited to a maximum of 10%(ten percent) of the value of the whole WORK, while hisfailure to do so shall continue and in the case of any suchfailure the ENGINEER-IN-CHARGE may on expiry ofnotice period rectify or remove and re-execute the WORKor remove and replaced with others, the materials orarticles complained of to as the case may be at the risk andexpense in all respects of the CONTRACTOR. Thedecision of the Engineering-in-charge as to any questionarising under this clause shall be final and conclusive.77 Suspension of works: 77.1 i) Subject to the provisions of sub-para (ii) of this clause,the CONTRACTOR shall, if ordered in writing by theENGINEER-IN-CHARGE, or his representative,temporarily suspend the WORKS or any part thereof forsuch written order, proceed with the WORK thereinordered to be suspended until, he shall have received awritten order to proceed therewith. TheCONTRACTOR shall not be entitled to claimcompensation for any loss or damage sustained by himby reason of temporary suspension of the WORKSaforesaid. An extension of time for completion,corresponding with the delay caused by any suchsuspension of the WORKS as aforesaid will be grantedto the ONTRACTOR should he apply for the sameprovided that the suspension was not consequent toany default or failure on the part of the CONTRACTOR.44

General Conditions of Contractii) In case of suspensions of entire WORK, ordered inwriting by ENGINEER-IN-CHARGE, for a period ofmore than two months, the CONTRACTOR shall havethe option to terminate the CONTRACT.78 Employer may do part ofwork:78.1 Upon failure of the CONTRACTOR to comply with anyinstructions given in accordance with the provisions of thisCONTRACT the EMPLOYER has the alternative right,instead of assuming charge of entire WORK, to placeadditional labour force, tools, equipments and materials onsuch parts of the WORK, as the EMPLOYER maydesignate or also engage another CONTRACTOR to carryout the WORK. In such cases, the EMPLOYER shalldeduct from the amount which otherwise might becomedue to the CONTRACTOR, the cost of such work andmaterial with ten percent (10%) added to cover alldepartmental charges and should the total amount thereofexceed the amount due to the CONTRACTOR, theCONTRACTOR shall pay the difference to theEMPLOYER.79 Possession prior tocompletion:80 Defects Liability Period(Twelve months period ofliability from the date of issueof completion certificate):79.1 The ENGINEER-IN-CHARGE shall have the right to takepossession of or use any completed or partially completedWORK or part of the WORK. Such possession or use shallnot be deemed to be an acceptance of any work completedin accordance with the CONTRACT agreement. If suchprior possession or use by the ENGINEER-IN- CHARGEdelays the progress of WORK, equitable adjustment in thetime of completion will be made and the CONTRACTagreement shall be deemed to be modified accordingly.80.1 The CONTRACTOR shall guarantee the installation/WORKfor a period of 12 months from the date of completion ofWORK as certified by the ENGINEER-IN-CHARGE whichis indicated in the Completion Certificate. Any damage ordefect that may arise or lie undiscovered at the time ofissue of Completion Certificate, connected in any way withthe equipment or materials supplied by him or in theworkmanship, shall be rectified or replaced by theCONTRACTOR at his own expense as deemed necessaryby the ENGINEER-IN-CHARGE or in default, theENGINEER- IN-CHARGE may carry out such works byother work and deduct actual cost incurred towards labour,supervision and materials consumables or otherwise plus100% towards overheads (of which the certificate ofENGINEER-IN-CHARGE shall be final) from any sums thatmay then be or at any time thereafter, become due to theCONTRACTOR or from his Contract Performance Security,or the proceeds of sale thereof or a sufficient part onthereof.80.2 If the CONTRACTOR feels that any variation in WORK orin quality of materials or proportions would be beneficial ornecessary to fulfil the guarantees called for, he shall bringthis to the notice of the ENGINEER- IN-CHARGE in writing.If during the period of liability any portion of theWORK/equipment, is found defective and is rectified/replaced, the period of liability for such equipment/ portion45

General Conditions of Contractof WORK shall be operative from the date suchrectification/ replacement are carried out and ContractPerformance Guarantee shall be furnished separately forthe extended period of liability for that portion of WORK/equipment only. Notwithstanding the above provisions thesupplier's, guarantees/warantees for the replacedequipment shall also be passed on to the EMPLOYER.80.3 LIMITATION OF LIABILITYNotwithstanding anything contrary contained herein, theaggregate total liability of CONTRACTOR under theAgreement or otherwise shall be limited to 100% ofAgreement / Contract Value. However, neither party shallbe liable to the other party for any indirect andconsequential damages, loss of profits or loss ofproduction.81 Care of works: 81.0 From the commencement to completion of the WORK, theCONTRACTOR shall take full responsibility for the care forall works including all temporary works and in case anydamages, loss or injury shall happen to the WORK or toany part thereof or to any temporary works from any causewhatsoever, shall at his own cost repair and make good thesame so that at completion the WORK shall be in goodorder and in conformity in every respects with therequirement of the CONTRACT and theENGINEER-IN- CHARGE's instructions.81.1 DEFECTS PRIOR TO TAKING OVER:If at any time, before the WORK is taken over, theENGINEER-IN-CHARGE shall:a) Decide that any works done or materials used by theCONTRACTOR or by any SUB-CONTRACTOR isdefective or not in accordance with the CONTRACT, orthat the works or any portion thereof are defective, or donot fulfill the requirements of CONTRACT (all suchmatters being hereinafter, called `Defects' in thisclause), andb) As soon as reasonably practicable, gives to theCONTRACTOR notice in writing of the said decision,specifying particulars of the defects alleged to exist or tohave occurred, then the CONTRACTOR shall at hisown expenses and with all speed make good thedefects so specified.In case CONTRACTOR shall fail to do so, the EMPLOYERmay take, at the cost of the CONTRACTOR, such steps asmay in all circumstances, be reasonable to make goodsuch defects. The expenditure so incurred by theEMPLOYER will be recovered from the amount due to theCONTRACTOR. The decision of theENGINEER-IN-CHARGE with regard to the amount to berecovered from the CONTRACTOR will be final and bindingon the CONTRACTOR. As soon as the WORK has beencompleted in accordance with the CONTRACT (except inminor respects that do not affect their use for the purpose46

General Conditions of Contractfor which they are intended and except for maintenancethere of provided in clause 80.1 of General Conditions ofContract) and have passed the tests on completion, theENGINEER-IN-CHARGE shall issue a certificate(hereinafter called Completion Certificate) in which he shallcertify the date on which the WORK have been socompleted and have passed the said tests and theEMPLOYER shall be deemed to have taken over theWORK on the date so certified. If the WORK has beendivided into various groups in the CONTRACT, theEMPLOYER shall be entitled to take over any group orgroups before the other or others and there upon theENGINEER-IN-CHARGE shall issue a CompletionCertificate which will, however, be for such group or groupsso taken over only. In such an event if the group /section/part so taken over is related, to the integrated system of thework, not withstanding date of grant of CompletionCertificate for group/ section/ part. The period of liability inrespect 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 aCOMPLETION CERTIFICATE he shall make good, with allpossible speed, any defect arising from the defectivematerials supplied by the CONTRACTOR or workmanshipor any act or omission of the CONTRACT or that may havebeen noticed or developed, after the works or groups of theworks has been taken over, the period allowed for carryingout such WORK will be normally one month. If any defectbe not remedied within a reasonable time, the EMPLOYERmay proceed to do the WORK at CONTRACTOR's risk andexpense and deduct from the final bill such amount as maybe decided by the EMPLOYER.If by reason of any default on the part of theCONTRACTOR a COMPLETION CERTIFICATE has notbeen issued in respect of any portion of the WORK withinone month after the date fixed by the CONTRACT for thecompletion of the WORK, the EMPLOYER shall be atliberty to use the WORK or any portion thereof in respect ofwhich a completion certificate has not been issued,provided that the WORK or the portion thereof so used asaforesaid shall be afforded reasonable opportunity forcompleting these works for the issue of CompletionCertificate.82 Guarantee/transfer ofguarantee:82.1 For works like water-proofing, acid and alkali resistingmaterials, pre-construction soil treatment against termite orany other specialized works etc. the CONTRACTOR shallinvariably engage SUB-CONTRACTORS who arespecialists in the field and firms of repute and such aSUB-CONTRACTOR shall furnish guarantees for theirworkmanship to the EMPLOYER, through theCONTRACTOR. In case such a SUB-CONTRACTOR/firm is not prepared to furnish a guarantee to theEMPLOYER, the CONTRACTOR shall give that guaranteeto the EMPLOYER directly.47

General Conditions of Contract83 Training of employer'spersonnel:84 Replacement of defectiveparts and materials:83.1 The CONTRACTOR undertakes to provide training toEngineering personnel selected and sent by theEMPLOYER at the works of the CONTRACTOR withoutany cost to the EMPLOYER. The period and the nature oftraining for the individual personnel shall be agreed uponmutually between the CONTRACTOR and theEMPLOYER. These engineering personnel shall be givenspecial training at the shops, where the equipment will bemanufactured and/ or in their collaborator's works andwhere possible, in any other plant where equipmentmanufactured by the CONTRACTOR or his collaborators isunder installation or test to enable those personnel tobecome familiar with the equipment being furnished by theCONTRACTOR. EMPLOYER shall bear only the to andfro fare of the said engineering personnel.84.1 If during the progress of the WORK, EMPLOYER shalldecide and inform in writing to the CONTRACTOR, that theCONTRACTOR has manufactured any plant or part of theplant unsound or imperfect or has furnished plant inferior tothe quality specified, the CONTRACTOR on receivingdetails of such defects or deficiencies shall at his ownexpenses within 7 (seven) days of his receiving the notice,or otherwise within such time as may be reasonablynecessary for making it good, proceed to alter, re-constructor remove such work and furnish fresh equipments upto thestandards of the specifications. In case theCONTRACTOR fails to do so, EMPLOYER may on givingthe CONTRACTOR 7 (seven) day's notice in writing of hisintentions to do so, proceed to remove the portion of theWORK so complained of and at the cost ofCONTRACTOR's, perform all such works or furnish allsuch equipments provided that nothing in the clause shallbe deemed to deprive the EMPLOYER of or affect anyrights under the CONTRACT, the EMPLOYER mayotherwise have in respect of such defects and deficiencies.84.2 The CONTRACTOR's full and extreme liability under thisclause shall be satisfied by the payments to theEMPLOYER of the extra cost, of such replacementsprocured including erection/installation as provided for inthe CONTRACT; such extra cost being the ascertaineddifference between the price paid by the EMPLOYER forsuch replacements and the CONTRACT price portion forsuch defective plants and repayments of any sum paid bythe EMPLOYER to the CONTRACTOR in respect of suchdefective plant. Should the EMPLOYER not so replace thedefective plant the CONTRACTOR's extreme liability underthis clause shall be limited to the repayment of all suchsums paid by the EMPLOYER under the CONTRACT forsuch defective plant.85 Indemnity 85.1 If any action is brought before a Court, Tribunal or anyother Authority against the Employer or an officer or agentof the EMPLOYER, for the failure, omission or neglect onthe part of the CONTRACTOR to perform any acts,matters, covenants or things under the CONTRACT, ordamage or injury caused by the alleged omission ornegligence on the part of the CONTRACTOR, his agents,representatives or his SUB- CONTRACTOR's, or in48

General Conditions of Contractconnection with any claim based on lawful demands ofSUB-CONTRACTOR's workmen suppliers or employees,the CONTRACTOR, shall in such cases indemnify andkeep the EMPLOYER and/or their representativesharmless from all losses, damages, expenses or decreesarising out of such action.86 Construction aids,equipments, tools & tackles:86.1 CONTRACTOR shall be solely responsible for makingavailable for executing the WORK, all requisiteCONSTRUCTION EQUIPMENTS, Special Aids, Barges,Cranes and the like, all Tools, Tackles and TestingEquipment and Appliances, including imports of suchequipment etc. as required. In case of import of the samethe rates applicable for levying of Custom Duty on suchEquipment, Tools, & Tackles and the duty drawbackapplicable thereon shall be ascertained by theCONTRACTOR from the concerned authorities ofGovernment of India. It shall be clearly understood thatEMPLOYER shall not in any way be responsible forarranging to obtain Custom Clearance and/or payment ofany duties and/or duty draw backs etc. for such equipmentsso imported by the CONTRACTOR and theCONTRACTOR shall be fully responsible for all taxes,duties and documentation with regard to the same.Tenderer in his own interest may contact, for anyclarifications in the matter, concernedagencies/Dept./Ministries of Govt. of India. All clarificationsso obtained and interpretations thereof shall be solely theresponsibility of the CONTRACTOR.SECTION-VICERTIFICATES AND PAYMENTS87 Schedule of rates andpayments:87.1 i) CONTRACTOR'S REMUNERATION:The price to be paid by the EMPLOYER toCONTRACTOR for the whole of the WORK to bedone and for the performance of all the obligationsundertaken by the CONTRACTOR under theCONTRACT DOCUMENTS shall be ascertained bythe application of the respective Schedule of Rates(the inclusive nature of which is more particularlydefined by way of application but not of limitation, withthe succeeding sub-clause of this clause) andpayment to be made accordingly for the WORKactually executed and approved by the ENGINEER-IN-CHARGE. The sum so ascertained shall(excepting only as and to the extent expresslyprovided herein) constitute the sole and inclusiveremuneration of the CONTRACTOR under theCONTRACT and no further or other paymentwhatsoever shall be or become due or payable to theCONTRACTOR under the CONTRACT.49

General Conditions of Contractii)SCHEDULE OF RATES TO BE INCLUSIVE:The prices/rates quoted by the CONTRACTOR shallremain firm till the issue of FINAL CERTIFICATE andshall not be subject to escalation. Schedule of Ratesshall be deemed to include and cover all costs,expenses and liabilities of every description and allrisks of every kind to be taken in executing,completing and handing over the WORK to theEMPLOYER by the CONTRACTOR. TheCONTRACTOR shall be deemed to have known thenature, scope, magnitude and the extent of theWORK and materials required though theCONTRACT DOCUMENT may not fully and preciselyfurnish them. Tenderer's shall make such provision inthe Schedule of Rates as he may consider necessaryto cover the cost of such items of WORK andmaterials as may be reasonable and necessary tocomplete the WORK. The opinion of theENGINEER-IN-CHARGE as to the items of WORKwhich are necessary and reasonable forCOMPLETION OF WORK shall be final and bindingon the CONTRACTOR, although the same may notbe shown on or described specifically in CONTRACTDOCUMENTS.Generality of this present provision shall not bedeemed to cut down or limit in any way because incertain cases it may and in other cases it may not beexpressly stated that the CONTRACTOR shall do orperform a work or supply articles or perform servicesat his own cost or without addition of payment orwithout extra charge or words to the same effect orthat it may be stated or not stated that the same areincluded in and covered by the Schedule of Rates.iii) SCHEDULE OF RATES TO COVERCONSTRUCTION EQUIPMENTS, MATERIALS,LABOUR ETC.:Without in any way limiting the provisions of thepreceding sub-clause the Schedule of Rates shall bedeemed to include and cover the cost of allconstruction equipment, temporary WORK (except asprovided for herein), pumps, materials, labour,insurance, fuel, consumables, stores and appliancesto be supplied by the CONTRACTOR and all othermatters in connection with each item in the Scheduleof Rates and the execution of the WORK or anyportion thereof finished, complete in every respect andmaintained as shown or described in the CONTRACTDOCUMENTS or as may be ordered in writing duringthe 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 allroyalties and fees for the articles and processes,50

General Conditions of Contractprotected by letters, patent or otherwise incorporatedin or used in connection with the WORK, also allroyalties, rents and other payments in connection withobtaining materials of whatsoever kind for the WORKand shall include an indemnity to the EMPLOYERwhich the CONTRACTOR hereby gives against allactions, proceedings, claims, damages, costs andexpenses arising from the incorporation in or use onthe WORK of any such articles, processes ormaterials, octroi or other municipal or local BoardCharges, if levied on materials, equipment ormachineries to be brought to site for use on WORKshall be borne by the CONTRACTOR.v) SCHEDULE OF RATES TO COVER TAXES ANDDUTIES:No exemption or reduction of Customs Duties, ExciseDuties, Sales Tax, Sales Tax on works Contract quayor any port dues, transport charges, stamp duties orCentral or State Government or local Body orMunicipal Taxes or duties, taxes or charges (from orof any other body), whatsoever, will be granted orobtained, all of which expenses shall be deemed to beincluded in and covered by the Schedule or Rates.The CONTRACTOR shall also obtain and pay for allpermits or other privileges necessary to complete theWORK.vi)SCHEDULE OF RATES TO COVER RISKS OFDELAY:The Schedule of Rates shall be deemed to includeand cover the risk of all possibilities of delay andinterference with the CONTRACTOR's conduct ofWORK which occur from any causes including ordersof the EMPLOYER in the exercise of his power andon account of extension of time granted due tovarious reasons and for all other possible or probablecauses of delay.vii)SCHEDULE OF RATES CANNOT BE ALTERED:For WORK under unit rate basis, no alteration will beallowed in the Schedule of Rates by reason of worksor any part of them being modified, altered, extended,diminished or committed. The Schedule of Rates arefully inclusive of rates which have been fixed by theCONTRACTOR and agreed to by the EMPLOYERand cannot be altered.For lumpsum CONTRACTS, the payment will bemade according to the WORK actually carried out, forwhich purpose an item wise, or work wise Schedule ofRates shall be furnished, suitable for evaluating thevalue of WORK done and preparing running accountbill.Payment for any additional work which is not coveredin the Schedule of Rates, shall only be released onissuance of change order.51

General Conditions of Contract88 Procedure for measurementand billing of work inprogress:88.1 BILLING PROCEDURE:Following procedures shall be adopted for billing of worksexecuted by the CONTRACTOR.88.1.1 All measurements shall be recorded in sextuplicate onstandard measurement sheets supplied by EMPLOYER andsubmitted to EMPLOYER/CONSULTANT for scrutiny andpassing.88.1.2 EMPLOYER/CONSULTANT shall scrutinise and check themeasurements recorded on the sheets and shall certifycorrectness of the same on the measurement sheets.88.1.3 ENGINEER-IN-CHARGE shall pass the bills after carrying outthe comprehensive checks in accordance with the terms andconditions of the CONTRACTS, within 7 days of submission ofthe bills, complete in all respects and send the same to theEmployer to effect payment to the CONTRACTOR.88.1.4 GAIL shall make all endeavour to make payments of undisputedamount of the bills submitted based on the jointmeasurements within 15 (Fifteen) days from the date ofcertification by the Engineer-in-Charge.88.1.5 Measurements shall be recorded as per the methods ofmeasurement spelt out in EMPLOYER/CONSULTANTSPECIFICATIONS / CONTRACT DOCUMENT.EMPLOYER/CONSULTANT shall be fully responsible forchecking the measurements quantitatively and qualitatively asrecorded in the Measurement Books/ Bills.88.1.6 While preparing the final bills overall measurements will not betaken again. Only volume of work executed since the lastmeasured bill alongwith summary of final measurements willbe considered for the final bill. However, a detailed checkshall be made as to missing measurements and in case thereare any missing items or measurements the same shall berecorded.88.1.7 COMPUTERISED BILLING SYSTEM : GAIL (India) Limitedhas introduced Computerised Billing System whereby whenthe Bills are submitted in GAIL by a Contractor, a receiptnumber is generated. The Contractor can know the status ofthe 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 forexecution of contracted items(s) shall be paid to the Contractorwhatsoever.88.3 DISPUTE IN MODE OF MEASUREMENT:In case of any dispute as to the mode of measurement notcovered by the CONTRACT to be adopted for any item ofWORK, mode of measurement as per latest Indian StandardSpecifications shall be followed.52

General Conditions of Contract88.4 ROUNDING-OFF OF AMOUNTS:In calculating the amount of each item due to theCONTRACTOR in every certificate prepared for payment, sumof less than 50 paise shall be omitted and the total amount oneach certificate shall be rounded off to the nearest rupees, i.e.,sum of less than 50 paise shall be omitted and sums of 50paise and more upto one rupee shall be reckoned as onerupee.89 Lumpsum in tender: 89.1 The payment against any Lumpsum item shall be made onlyon completion of that item as per the provision of theCONTRACT after certification by ENGINEER-IN-CHARGE.90 Running account paymentsto be regarded as advance:91 Notice of claims foradditional payments:90.1 All running account payments shall be regarded as paymentby way of advance against the final payment only and not aspayments for WORK actually done and completed and shallnot preclude the requiring of bad, unsound and imperfect orunskilled work to be removed and taken away andreconstructed or re-erected or be considered as an admissionof the due performance of the CONTRACT, or any partthereof, in this respect, or of the accurring of any claim by theCONTRACTOR, nor shall it conclude, determine or affect inany way the powers of the EMPLOYER under theseconditions or any of them as to the final settlement andadjustment of the accounts or otherwise, or in any other wayvary or affect the CONTRACT. The final bill shall be submittedby the CONTRACTOR within one month of the date ofphysical completion of the WORK, otherwise, theENGINEER-IN-CHARGE's certificate of the measurement andof total amount payable for the WORK accordingly shall befinal and binding on all parties91.1 Should the CONTRACTOR consider that he is entitled to anyextra payment for any extra/additional WORKS or MATERIALchange in original SPECIFICATIONS carried out by him inrespect of WORK he shall forthwith give notice in writing to theENGINEER-IN-CHARGE that he claims extra payment. Suchnotice shall be given to the ENGINEER-IN-CHARGE uponwhich CONTRACTOR bases such claims and such noticeshall contain full particulars of the nature of such claim with fulldetails of amount claimed. Irrespective of any provision in theCONTRACT to the contrary, the CONTRACTOR mustintimate his intention to lodge claim on the EMPLOYER within10 (ten) days of the commencement of happening of the eventand quantify the claim within 30 (thirty) days, failing which theCONTRACTOR will lose his right to claim anycompensation/reimbursement/damages etc. or refer thematter to arbitration. Failure on the part of CONTRACTOR toput forward any claim without the necessary particulars asabove within the time above specified shall be an absolutewaiver thereof. No omission by EMPLOYER to reject any suchclaim and no delay in dealing therewith shall be waiver byEMPLOYER of any of this rights in respect thereof.91.2 ENGINEER-IN-CHARGE shall review such claims within areasonably period of time and cause to discharge these in amanner considered appropriate after due deliberationsthereon. However, CONTRACTOR shall be obliged to carry53

General Conditions of Contracton with the WORK during the period in which his claims areunder consideration by the EMPLOYER, irrespective of theoutcome of such claims, where additional payments forWORKS considered extra are justifiable in accordance withthe CONTRACT provisions, EMPLOYER shall arrange torelease the same in the same manner as for normal WORKpayments. Such of the extra works so admitted byEMPLOYER shall be governed by all the terms, conditions,stipulations and specifications as are applicable for theCONTRACT. The rates for extra works shall generally be theunit rates provided for in the CONTRACT. In the event unitrates for extra works so executed are not available as perCONTRACT, payments may either be released on day workbasis for which daily/hourly rates for workmen and hourlyrates for equipment rental shall apply, or on the unit rate forWORK executed shall be derived by interpolation/extrapolation of unit rates already existing in the CONTRACT.In all the matters pertaining to applicability of rate andadmittance of otherwise of an extra work claim ofCONTRACTOR the decision of ENGINEER-IN-CHARGEshall be final and binding.92 Payment of contractor's bill: 92.1 No payment shall be made for works estimated to cost lessthan Rs.10,000/- till the whole of the work shall have beencompleted and a certificate of completion given. But in case ofworks estimated to cost more than Rs.10,000/-, thatCONTRACTOR on submitting the bill thereof be entitled toreceive a monthly payment proportionate to the part thereofapproved and passed by the ENGINEER-IN-CHARGE, whosecertificate of such approval and passing of the sum so payableshall be final and conclusive against the CONTRACTOR. Thispayment will be made after making necessarycorrections/deductions as stipulated elsewhere in theCONTRACT DOCUMENT for materials, ContractPerformance Security, taxes etc.92.2 Payment due to the CONTRACTOR shall be made by theEMPLOYER by Account Payee cheque forwarding the sameto registered office or the notified office of the CONTRACTOR.In no case will EMPLOYER be responsible if the cheque ismislaid or misappropriated by unauthorised person/persons.In all cases, the CONTRACTOR shall present his bill dulypre-receipted on proper revenue stamp payment shall bemade in Indian Currency.92.3 In general payment of final bill shall be made toCONTRACTOR within 60 days of the submission of bill onjoint measurements, after completion of all the obligationsunder the CONTRACT.93 Receipt for payment: 93.1 Receipt for payment made on account of work when executedby a firm, must be signed by a person holding due power ofattorney in this respect on behalf of the CONTRACTOR,except when the CONTRACTOR's are described in theirtender as a limited company in which case the receipts mustbe signed in the name of the company by one of its principalofficers or by some other person having authority to giveeffectual receipt for the company.54

General Conditions of Contract94 Completion certificate: 94.1 APPLICATION FOR COMPLETION CERTIFICATE:When the CONTRACTOR fulfils his obligation under Clause81.1 he shall be eligible to apply for COMPLETIONCERTIFICATE.The ENGINEER-IN-CHARGE shall normally issue to theCONTRACTOR the COMPLETION CERTIFICATE within onemonth after receiving any application therefore from theCONTRACTOR after verifying from the completion documentsand satisfying himself that the WORK has been completed inaccordance with and as set out in the construction anderection drawings, and the CONTRACT DOCUMENTS.The CONTRACTOR, after obtaining the COMPLETIONCERTIFICATE, is eligible to present the final bill for the WORKexecuted by him under the terms of CONTRACT.94.2 COMPLETION CERTIFICATE:Within one month of the completion of the WORK in allrespects, the CONTRACTOR shall be furnished with acertificate by the ENGINEER-IN-CHARGE of such completion,but no certificate shall be given nor shall the WORK bedeemed to have been executed until all scaffolding, surplusmaterials and rubbish is cleared off the SITE completely noruntil the WORK shall have been measured by theENGINEER-IN-CHARGE whose measurement shall bebinding and conclusive. The WORKS will not be consideredas complete and taken over by the EMPLOYER, until all thetemporary works, labour and staff colonies are cleared to thesatisfaction of the ENGINEER-IN-CHARGE.If the CONTRACTOR fails to comply with the requirements ofthis clause on or before the date fixed for the completion of theWORK, the ENGINEER-IN-CHARGE may at the expense ofthe CONTRACTOR remove such scaffolding, surplusmaterials and rubbish and dispose off the same as he thinks fitand clean off such dirt as aforesaid, and the CONTRACTORshall forthwith pay the amount of all expenses so incurred andshall have no claim in respect of any such scaffolding orsurplus materials as aforesaid except for any sum actuallyrealised by the sale thereof.94.3 COMPLETION CERTIFICATE DOCUMENTS:For the purpose of Clause 94.0 the following documents willbe deemed to form the completion documents:i) The technical documents according to which the WORKwas carried out.ii) Six (6) sets of construction drawings showing therein themodification and correction made during the course ofexecution and signed by the ENGINEER-IN-CHARGE.iii) COMPLETION CERTIFICATE for `embedded' and`covered' up work.iv) Certificates of final levels as set out for various works.55

General Conditions of Contractv) Certificates of tests performed for various WORKS.vi) Material appropriation, Statement for the materials issuedby the EMPLOYER for the WORK and list of surplusmaterials returned to the EMPLOYER's store dulysupported by necessary documents.95 Final decision and finalcertificate:96 Certificate and payments onevidence of completion:97 Deductions from the contractprice:95.1 Upon expiry of the period of liability and subject to theENGINEER-IN-CHARGE being satisfied that the WORKShave been duly maintained by the CONTRACTOR duringmonsoon or such period as hereinbefore provided in Clause80 & 81 and that the CONTRACTOR has in all respect dulymade-up any subsidence and performed all his obligationsunder the CONTRACT, the ENGINEER-IN- CHARGE shall(without prejudice to the rights of the EMPLOYER to retain theprovisions of relevant Clause hereof) otherwise give acertificate herein referred to as the FINAL CERTIFICATE tothat effect and the CONTRACTOR shall not be considered tohave fulfilled the whole of his obligations under CONTRACTuntil FINAL CERTIFICATE shall have been given by theENGINEER-IN- CHARGE notwithstanding any previous entryupon the WORK and taking possession, working or using ofthe same or any part thereof by the EMPLOYER.96.1 Except the FINAL CERTIFICATE, no other certificates orpayments against a certificate or on general account shall betaken to be an admission by the EMPLOYER of the dueperformance of the CONTRACT or any part thereof or ofoccupancy or validity of any claim by the CONTRACTOR.97.1 All costs, damages or expenses which EMPLOYER may havepaid or incurred, which under the provisions of theCONTRACT, the CONTRACTOR is liable/will be liable, will beclaimed by the EMPLOYER. All such claims shall be billed bythe EMPLOYER to the CONTRACTOR regularly as and whenthey fall due. Such claims shall be paid by theCONTRACTOR within 15 (fifteen) days of the receipt of thecorresponding bills and if not paid by the CONTRACTORwithin the said period, the EMPLOYER may, then, deduct theamount from any moneys due i.e., Contract PerformanceSecurity or becoming due to the CONTRACTOR under theCONTRACT or may be recovered by actions of law orotherwise, if the CONTRACTOR fails to satisfy theEMPLOYER of such claims.SECTION-VIITAXES AND INSURANCE98 Taxes, Duties, Octroi etc: 98.1 The CONTRACTOR agrees to and does hereby accept fulland exclusive liability for the payment of any and all Taxes,Duties, including Excise duty, octroi etc. now or hereafterimposed, increased, modified, all the sales taxes, duties,octrois etc. now in force and hereafter increased, imposed ormodified, from time to time in respect of WORKS andmaterials and all contributions and taxes for unemploymentcompensation, insurance and old age pensions or annuities56

General Conditions of Contractnow or hereafter imposed by any Central or StateGovernment authorities which are imposed with respect to orcovered by the wages, salaries, or other compensations paidto the persons employed by the CONTRACTOR and theCONTRACTOR shall be responsible for the compliance ofall SUB-CONTRACTORS, with all applicable Central, State,Municipal and local law and regulation and requirement ofany Central, State or local Government agency or authority.CONTRACTOR further agrees to defend, indemnify andhold EMPLOYER harmless from any liability or penaltywhich may be imposed by the Central, State or Localauthorities by reason or any violation by CONTRACTOR orSUB-CONTRACTOR of such laws, suits or proceedings thatmay be brought against the EMPLOYER arising under,growing out of, or by reason of the work provided for by thisCONTRACT, by third parties, or by Central or StateGovernment authority or any administrative sub-divisionthereof.Tax deductions will be made as per the rules and regulationsin force in accordance with acts prevailing from time to time.99 Sales tax/Turnover tax: 99.1 Tenderer should quote all inclusive prices including theliability of Sales Tax/Turnover Tax whether on the workscontract as a whole or in respect of bought out componentsused by the CONTRACTOR in execution of theCONTRACT. EMPLOYER shall not be responsible for anysuch liability of the CONTRACTOR in respect of thisCONTRACT.100 Statutory variations 100.1 Tenderer should quote prices inclusive of excise-duty andsales tax applicable on finished product. Any statutoryvariations in Excise Duty and sales tax on finished productduring the contractual completion period, shall be to theEmployer's account for which the Contractor will furnishdocumentary evidence(s) in support of their claims to GAIL.However, any increase in the rate of these taxes andduties (E.D. and S.T.) beyond the contractual completionperiod shall be to Contractor's account and any decreaseshall be passed on to GAIL.101 Insurance: 101.1 GENERALCONTRACTOR shall at his own expense arrange secureand maintain insurance with reputable insurance companiesto the satisfaction of the EMPLOYER as follows:CONTRACTOR at his cost shall arrange, secure andmaintain insurance as may be necessary and to its full valuefor all such amounts to protect the WORKS in progress fromtime to time and the interest of EMPLOYER against all risksas detailed herein. The form and the limit of such insurance,as defined here in together with the under works thereof ineach case should be as acceptable to the EMPLOYER.However, irrespective of work acceptance the responsibilityto maintain adequate insurance coverage at all times duringthe period of CONTRACT shall be that of CONTRACTORalone. CONTRACTOR's failure in this regard shall notrelieve him of any of his responsibilities and obligationsunder CONTRACT.57

General Conditions of ContractAny loss or damage to the equipment, during oceantransportation, port/custom clearance, inland and porthandling, inland transportation, storage, erection andcommissioning till such time the WORK is taken over byEMPLOYER, shall be to the account of CONTRACTOR.CONTRACTOR shall be responsible for preferring of allclaims and make good for the damage or loss by way ofrepairs and/or replacement of the parts of the Workdamaged or lost. CONTRACTOR shall provide theEMPLOYER with a copy of all insurance policies anddocuments taken out by him in pursuance of theCONTRACT. Such copies of document shall be submittedto the EMPLOYER immediately upon the CONTRACTORhaving taken such insurance coverage. CONTRACTORshall also inform the EMPLOYER at least 60(Sixty) days inadvance regarding the expiry cancellation and/or changes inany of such documents and ensure revalidation/renewal etc.,as may be necessary well in time.Statutory clearances, if any, in respect of foreign supplyrequired for the purpose of replacement of equipment lost intransit and/or during erection, shall be made available by theEMPLOYER. CONTRACTOR shall, however, beresponsible for obtaining requisite licences, port clearancesand other formalities relating to such import. The risks thatare to be covered under the insurance shall include, but notbe limited to the loss or damage in handling, transit, theft,pilferage, riot, civil commotion, weather conditions, accidentsof all kinds, fire, war risk (during ocean transportation only)etc. The scope of such insurance shall cover the entirevalue of supplies of equipments, plants and materials to beimported from time to time.All costs on account of insurance liabilities covered underCONTRACT will be to CONTRACTOR's account and will beincluded in VALUE OF CONTRACT. However, theEMPLOYER may from time to time, during the currency ofthe CONTRACT, ask the CONTRACTOR in writing to limitthe insurance coverage risk and in such a case, the partiesto the CONTRACT will agree for a mutual settlement, forreduction in VALUE OF CONTRACT to the extent ofreduced premium amounts.CONTRACTOR as far as possible shall cover insurance withIndian Insurance Companies, including marine Insuranceduring ocean transportation.i) EMPLOYEES STATE INSURANCE ACT:The CONTRACTOR agrees to and does hereby acceptfull and exclusive liability for the compliance with allobligations imposed by the Employee State InsuranceAct 1948 and the CONTRACTOR further agrees todefend, indemnify and hold EMPLOYER harmless forany liability or penalty which may be imposed by theCentral, State or Local authority by reason of anyasserted violation by CONTRACTOR orSUB-CONTRACTOR of the Employees' StateInsurance Act, 1948, and also from all claims, suits or58

General Conditions of Contractproceeding that may be brought against theEMPLOYER arising under, growing out of or byreasons of the work provided for by thisCONTRACTOR, by third parties or by Central or StateGovernment authority or any political sub- divisionthereof.The CONTRACTOR agrees to fill in with theEmployee's State Insurance Corporation, theDeclaration Forms, and all forms which may be requiredin respect of the CONTRACTOR's orSUB- CONTRACTOR's employees, who are employedin the WORK provided for or those covered by ESI fromtime to time under the Agreement. The CONTRACTORshall deduct and secure the agreement of theSUB- CONTRACTOR to deduct the employee'scontribution as per the first schedule of the Employee'sState Insurance Act from wages and affix theEmployees Contribution Card at wages paymentintervals. The CONTRACTOR shall remit and securethe agreement of SUB-CONTRACTOR to remit to theState Bank of India, Employee's State InsuranceCorporation Account, the Employee's contribution asrequired by the Act. The CONTRACTOR agrees tomaintain all cards and Records as required under theAct in respect of employees and payments and theCONTRACTOR shall secure the agreement of theSUB- CONTRACTOR to maintain such records. Anyexpenses incurred for the contributions, makingcontributions or maintaining records shall be to theCONTRACTOR's or SUB-CONTRACTOR's account.The EMPLOYER shall retain such sum as may benecessary from the total VALUE OF CONTRACT untilthe CONTRACTOR shall furnish satisfactory proof thatall contributions as required by the Employees StateInsurance Act, 1948, have been paid. This will bepending on the CONTRACTOR when the ESI Act isextended to the place of work.ii)WORKMEN COMPENSATION AND EMPLOYER'SLIABILITY INSURANCE:Insurance shall be effected for all the CONTRACTOR'semployees engaged in the performance of thisCONTRACT. If any of the work is sublet, theCONTRACTOR shall require the SUB-CONTRACTORto provide workman's Compensation and employer'sliability insurance for the later's employees if suchemployees are not covered under the CONTRACTOR'sInsurance.iii)ACCIDENT OR INJURY TO WORKMEN:The EMPLOYER shall not be liable for or in respect ofany damages or compensation payable at law inrespect or in consequence of any accident or injury toany workman or other person in the Employment of theCONTRACTOR or any SUB-CONTRACTOR save andexcept an accident or injury resulting from any act or59

General Conditions of Contractdefault of the EMPLOYER, his agents or servants andthe CONTRACTOR shall indemnify and keepindemnified the EMPLOYER against all such damagesand compensation (save and except and aforesaid) andagainst all claims, demands, proceeding, costs, chargesand expenses, whatsoever in respect or in relationthereto.iv)TRANSIT INSURANCEIn respect of all items to be transported by theCONTRACTOR to the SITE of WORK, the cost oftransit insurance should be borne by theCONTRACTOR and the quoted price shall beinclusive of this cost.v) COMPREHENSIVE AUTOMOBILE INSURANCEThis insurance shall be in such a form as to protectthe Contractor against all claims for injuries, disability,disease and death to members of public includingEMPLOYER’s men and damage to the property ofothers arising from the use of motor vehicles duringon or off the `site’ operations, irrespective of theEmployership of such vehicles.vi)COMPREHENSIVE GENERAL LIABILITYINSURANCEa) This insurance shall protect the Contractor againstall claims arising from injuries, disabilities,disease or death of member of public or damageto property of others due to any act or omissionon the part of the Contractor, his agents, hisemployees, his representatives and Sub-Contractor’s or from riots, strikes and civilcommotion.b) Contractor shall take suitable Group PersonalAccident Insurance Cover for taking care of injury,damage or any other risks in respect of hisEngineers and other Supervisory staff who are notcovered under Employees State Insurance Act.c) The policy shall cover third party liability. The thirdparty (liability shall cover the loss/ disablement ofhuman life (person not belonging to the Contractor)and also cover the risk of damage to othersmaterials/ equipment/ properties duringconstruction, erection and commissioning at site.The value of third party liability for compensation forloss of human life or partial/full disablement shall beof required statutory value but not less than Rs. 2lakhs per death, Rs. 1.5 lakhs per full disablementand Rs. 1 lakh per partial disablement and shallnevertheless cover such compensation as may beawarded by Court by Law in India and cover fordamage to others equipment/ property as approvedby the Purchaser. However, third party risk shall bemaximum to Rs. 10(ten) lakhs to death.60

General Conditions of Contractd) The Contractor shall also arrange suitable insuranceto cover damage, loss, accidents, risks etc., inrespect of all his plant, equipments and machinery,erection tools & tackles and all other temporaryattachments brought by him at site to execute thework.e) The Contractor shall take out insurance policy in thejoint name of EMPLOYER and Contractor from oneor more nationalised insurance company from anybranch office at Project site.f) Any such insurance requirements as are herebyestablished as the minimum policies and coverageswhich Contractor must secure and keep in forcemust be complied with, Contrator shall at all timesbe free to obtain additional or increased coveragesat Contractor’s sole expenses.vii)ANY OTHER INSURANCE REQUIRED UNDER LAWOR REGULATIONS OR BY EMPLOYER:CONTRACTOR shall also carry and maintain any andall other insurance(s) which he may be required underany law or regulation from time to time without any extracost to EMPLOYER. He shall also carry and maintainany other insurance which may be required by theEMPLOYER.102 Damage to Property or toany Person or any ThirdParty102.1 i) CONTRACTOR shall be responsible for making good tothe satisfaction of the EMPLOYER any loss or anydamage to structures and properties belonging to theEMPLOYER or being executed or procured or beingprocured by the EMPLOYER or of other agencies withinin the premises of all the work of the EMPLOYER, ifsuch loss or damage is due to fault and/or thenegligence or willful acts or omission of theCONTRACTOR, his employees, agents,representatives or SUB-CONTRACTORs.ii)The CONTRACTOR shall take sufficient care in movinghis plants, equipments and materials from one place toanother so that they do not cause any damage to anyperson or to the property of the EMPLOYER or anythird party including overhead and underground cablesand in the event of any damage resulting to the propertyof the EMPLOYER or of a third party during themovement of the aforesaid plant, equipment ormaterials the cost of such damages including eventualloss of production, operation or services in any plant orestablishment as estimated by the EMPLOYER orascertained or demanded by the third party shall beborne by the CONTRACTOR. Third party liability riskshall be Rupees One lakh for single accident andlimited to Rupees Ten lakhs.iii) The CONTRACTOR shall indemnify and keep theEMPLOYER harmless of all claims for damages toproperty other than EMPLOYER's property arising61

General Conditions of Contractunder or by reason of this agreement, if such claimsresult from the fault and/or negligence or willful acts oromission of the CONTRACTOR, his employees,agents, representative of SUB-CONTRACTOR.SECTION-VIIILABOUR LAWS103 Labour laws: 103.1 i) No labour below the age of 18 (eighteen) years shall beemployed on the WORK.ii) The CONTRACTOR shall not pay less than what isprovided under law to labourers engaged by him on theWORK.iii) The CONTRACTOR shall at his expense comply withall labour laws and keep the EMPLOYER indemnifiedin respect thereof.iv) The CONTRACTOR shall pay equal wages for menand women in accordance with applicable labourlaws.v) If the CONTRACTOR is covered under the Contractlabour (Regulation and Abolition) Act, he shall obtaina licence from licensing authority (i.e. office of thelabour commissioner) by payment of necessaryprescribed fee and the deposit, if any, before startingthe WORK under the CONTRACT. Such fee/depositshall be borne by the CONTRACTOR.vi) The CONTRACTOR shall employ labour in sufficientnumbers either directly or throughSUB- CONTRACTOR's to maintain the required rate ofprogress and of quality to ensure workmanship of thedegree specified in the CONTRACT and to thesatisfaction of the ENGINEER-IN-CHARGE.vii) The CONTRACTOR shall furnish to theENGINEER-IN- CHARGE the distribution return of thenumber and description, by trades of the work peopleemployed on the works. The CONTRACTOR shall alsosubmit on the 4th and 19th of every month to theENGINEER-IN-CHARGE a true statement showing inrespect of the second half of the preceding month andthe first half of the current month (1) the accidents thatoccurred during the said fortnight showing thecircumstances under which they happened and theextent of damage and injury caused by them and (2) thenumber of female workers who have been allowedMaternity Benefit as provided in the Maternity BenefitAct 1961 on Rules made thereunder and the amountpaid to them.viii) The CONTRACTOR shall comply with the provisions ofthe payment of Wage Act 1936, Employee Provident62

General Conditions of ContractFund Act 1952, Minimum Wages Act 1948. EmployersLiability Act 1938. Workmen's Compensation Act 1923,Industrial Disputes Act 1947, the Maternity Benefit Act1961 and Contract Labour Regulation and Abolition Act1970, Employment of Children Act 1938 or anymodifications thereof or any other law relating theretoand rules made thereunder from time to time.ix) The ENGINEER-IN-CHARGE shall on a report havingbeen made by an Inspecting Officer as defined inContract Labour (Regulation and Abolition) Act 1970have the power to deduct from the money due to theCONTRACTOR any sum required or estimated to berequired for making good the loss suffered by a workeror workers by reason of non- fulfillment of theConditions of the Contract for the benefit of workers,non-payment of wages or of deductions made from hisor their wages which are not justified by the terms of theContract or non-observance of the said regulations.x) The CONTRACTOR shall indemnify the EMPLOYERagainst any payments to be made under and for theobservance of the provisions of the aforesaid Actswithout prejudice to his right to obtain indemnity fromhis SUB-CONTRACTOR's. In the event of theCONTRACTOR committing a default or breach of anyof the provisions of the aforesaid Acts as amended fromtime to time, of furnishing any information or submittingor filling and Form/ Register/ Slip under the provisionsof these Acts which is materially incorrect then on thereport of the inspecting Officers, the CONTRACTORshall without prejudice to any other liability pay to theEMPLOYER a sum not exceeding Rs.50.00 asLiquidated Damages for every default, breach orfurnishing, making, submitting, filling materially incorrectstatement as may be fixed by theENGINEER-IN- CHARGE and in the event of theCONTRACTOR's default continuing in this respect, theLiquidated Damages may be enhanced to Rs.50.00 perday for each day of default subject to a maximum ofone percent of the estimated cost of the WORK put totender. The ENGINEER-IN-CHARGE shall deductsuch amount from bills or Contract PerformanceSecurity of the CONTRACTOR and credit the same tothe Welfare Fund constitute under these acts. Thedecision of the ENGINEER-IN-CHARGE in this respectshall be final and binding.104 Implementation ofApprentices Act, 1961:104.1 The CONTRACTOR shall comply with the provisions of theApprentices Act, 1961 and the Rules and Orders issuedthereunder from time to time. If he fails to do so, his failurewill be a breach of the CONTRACT and theENGINEER-IN-CHARGE may, at his discretion, cancel theCONTRACT. The CONTRACTOR shall also be liable forany pecuniary liability arising on account of any violation byhim of the provisions, of the Act.63

General Conditions of Contract105 Contractor to indemnify theEmployer:105.1 i) The CONTRACTOR shall indemnify the EMPLOYERand every member, office and employee of theEMPLOYER, also the ENGINEER-IN-CHARGE and hisstaff against all actions, proceedings, claims, demands,costs and expenses whatsoever arising out of or inconnection with the matters referred to in Clause 102.0and elsewhere and all actions, proceedings, claims,demands, costs and expenses which may be madeagainst the EMPLOYER for or in respect of or arisingout of any failure by the CONTRACTOR in theperformance of his obligations under the CONTRACTDOCUMENT. The EMPLOYER shall not be liable foror in respect of or arising out of any failure by theCONTRACTOR in the performance of his obligationsunder the CONTRACT DOCUMENT. The EMPLOYERshall not be liable for or in respect of any demand orcompensation payable by law in respect or inconsequence of any accident or injury to any workmenor other person. In the employment of theCONTRACTOR or his SUB-CONTRACTOR theCONTRACTOR shall indemnify and keep indemnifiedthe EMPLOYER against all such damages andcompensations and against all claims, damages,proceedings, costs, charges and expenses whatsoeverin respect thereof or in relation thereto.ii)PAYMENT OF CLAIMS AND DAMAGES:Should the EMPLOYER have to pay any money inrespect of such claims or demands as aforesaid theamount so paid and the costs incurred by theEMPLOYER shall be charged to and paid by theCONTRACTOR and the CONTRACTOR shall not be atliberty to dispute or question the right of theEMPLOYER to make such payments notwithstandingthe same, may have been made without the consent orauthority or in law or otherwise to the contrary.iii) In every case in which by virtue of the provisions ofSection 12, Sub-section (i) of workmen's compensationAct, 1923 or other applicable provision of WorkmenCompensation Act or any other Act, the EMPLOYER isobliged to pay compensation to a workman employedby the CONTRACTOR in execution of the WORK, theEMPLOYER will recover from the CONTRACTOR theamount of the compensation so paid, and withoutprejudice to the rights of EMPLOYER under Section 12,Sub- section (2) of the said act, EMPLOYER shall be atliberty to recover such amount or any part thereof bydeducting it from the Contract Performance Security orfrom any sum due to the CONTRACTOR whetherunder this CONTRACT or otherwise. The EMPLOYERshall not be bound to contest any claim made underSection 12, Sub-section (i) of the said act, except on thewritten request of the CONTRACTOR and upon hisgiving to the EMPLOYER full security for all costs forwhich the EMPLOYER might become liable inconsequence of contesting such claim.64

General Conditions of Contract106 Health and sanitaryarrangements for workers:106.1 In respect of all labour directly or indirectly employed in theWORKS for the performance of the CONTRACTOR's partof this agreement, the CONTRACTOR shall comply with orcause to be complied with all the rules and regulations ofthe local sanitary and other authorities or as framed by theEMPLOYER from time to time for the protection of healthand sanitary arrangements for all workers.106.2 The CONTRACTOR shall provide in the labour colony allamenities such as electricity, water and other sanitary andhealth arrangements. The CONTRACTOR shall alsoprovide necessary surface transportation to the place ofwork and back to the colony for their personnelaccommodated in the labour colony.SECTION-IXAPPLICABLE LAWS AND SETTLEMENT OF DISPUTES107 Arbitration: 107.1 Unless otherwise specified, the matters where decision ofthe Engineer-in-Charge is deemed to be final and bindingas provided in the Agreement and the issues/disputeswhich cannot be mutually resolved within a reasonabletime, all disputes shall be referred to arbitration by SoleArbitrator.The Employer [GAIL (India) Ltd.] shall suggest a panel ofthree independent and distinguished persons to thebidder/contractor/supplier/buyer (as the case may be) toselect any one among them to act as the Sole Arbitrator.In the event of failure of the other parties to select theSole Arbitrator within 30 days from the receipt of thecommunication suggesting the panel of arbitrators, theright of selection of the sole arbitrator by the other partyshall stand forfeited and the EMPLOYER (GAIL) shallhave discretion to proceed with the appointment of theSole Arbitrator. The decision of Employer on theappointment of the sole arbitrator shall be final andbinding on the parties.The award of sole arbitrator shall be final and binding onthe parties and unless directed/awarded otherwise by thesole arbitrator, the cost of arbitration proceedings shallbe shared equally by the parties. The Arbitrationproceedings shall be in English language and venueshall be New Delhi, India.Subject to the above, the provisions of (Indian)Arbitration & Conciliation ACT 1996 and the Rulesframed there under shall be applicable. All matterrelating to this contract are subject to the exclusivejurisdiction of the court situated in the state of Delhi.Bidders/suppliers/contractors may please note that theArbitration & Conciliation Act 1996 was enacted by the65

General Conditions of ContractIndian Parliament and is based on United NationsCommission on International Trade Law (UNCITRALmodel law), which were prepared after extensiveconsultation with Arbitral Institutions and centers ofInternational Commercial Arbitration. The United NationsGeneral Assembly vide resolution 31/98 adopted theUNCITRAL Arbitration rules on 15 December 1976.107.2 FOR THE SETTLEMENT OF DISPUTES BETWEENGOVERNMENT DEPARTMENT AND ANOTHER ANDONE GOVERNMENT DEPARTMENT AND PUBLICENTERPRISE AND ONE PUBLIC ENTERPRISE ANDANOTHER THE ARBITRATION SHALL BE ASFOLLOWS:"In the event of any dispute or difference between theparties hereto, such dispute or difference shall beresolved amicably by mutual consultation or through thegood offices of empowered agencies of the Government.If such resolution is not possible, then, the unresolveddispute or difference shall be referred to arbitration of anarbitrator to be nominated by Secretary, Department ofLegal Affairs ("Law Secretary") in terms of the OfficeMemorandum No.55/3/1/75-CF, dated the 19thDecember 1975 issued by the Cabinet Secretariat(Department of Cabinet Affairs), as modified from time totime. The Arbitration Act 1940 (10 of 1940) shall not beapplicable to the arbitration under this clause. The awardof the Arbitrator shall be binding upon parties to thedispute. Provided, however, any party aggrieved by suchaward may make a further reference for setting aside orrevision of the award to Law Secretary whose decisionshall bind the parties finally and conclusively.108 Jurisdiction: 108.1 The CONTRACT shall be governed by and constructedaccording to the laws in force in INDIA. TheCONTRACTOR hereby submits to the jurisdiction of theCourts situated at DELHI for the purposes of disputes,actions and proceedings arising out of the CONTRACT, thecourts at DELHI only will have the jurisdiction to hear anddecide such disputed, actions and proceedings.SECTION-XSAFETY CODES109 General: 109.1 CONTRACTOR shall adhere to safe construction practiceand guard against hazardous, and unsafe workingconditions and shall comply with EMPLOYER's safety rulesas 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 beenprepared.110 Safety regulations: 110.1 i) In respect of all labour, directly employed in theWORK for the performance of CONTRACTOR's part66

General Conditions of Contractof this agreement, the CONTRACTOR shall at hisown expense arrange for all the safety provisions asper safety codes of C.P.W.D., Indian StandardsInstitution. The Electricity Act, The Mines Act andsuch other acts as applicable.ii)The CONTRACTOR shall observe and abide by allfire and safety regulations of the EMPLOYER. Beforestarting construction work CONTRACTOR shallconsult with EMPLOYER's safety Engineers orENGINEER- IN-CHARGE and must make good tothe satisfaction of the EMPLOYER any loss ordamage due to fire to any portion of the work done orto be done under this agreement or to any of theEMPLOYER's existing property.111 First aid and industrialinjuries:111.1 i) CONTRACTOR shall maintain first aid facilities for itsemployees and those of its SUB-CONTRACTOR.ii)ii)CONTRACTOR shall make outside arrangements forambulance service and for the treatment of industrialinjuries. Names of those providing these servicesshall be furnished to EMPLOYER prior to start ofconstruction and their telephone numbers shall beprominently posted in CONTRACTOR's field office.All critical industrial injuries shall be reported promptlyto EMPLOYER, and a copy of CONTRACTOR'sreport covering each personal injury requiring theattention of a physician shall be furnished to theEMPLOYER.112 General rules: 112.1 Smoking within the battery area, tank farm or dock limits isstrictly prohibited. Violators of the no smoking rules shallbe discharged immediately.113 Contractor's barricades: 113.1 i) CONTRACTOR shall erect and maintain barricadesrequired in connection with his operation to guard orprotect:-a) Excavationsb) Hoisting Areas.c) Areas adjudged hazardous by CONTRACTOR's orEMPLOYER's inspectors.d) EMPLOYER's existing property subject to damageby CONTRACTOR's Operations.e) Rail Road unloading spots.ii) CONTRACTOR's employees and those of hisSUB- CONTRACTOR's shall become acquainted withEMPLOYER's barricading practice and shall respect theprovisions thereof.iii) Barricades and hazardous areas adjacent to, but notlocated in normal routes of travel shall be marked byred flasher lanterns at nights.114 Scaffolding: 114.1 i) Suitable scaffolding should be provided for workmen forall works that cannot safely be done from the ground orfrom solid construction except such short period workas can be done safely from ladders. When a ladder is67

General Conditions of Contractused an extra Mazdoor shall be engaged for holding theladder and if the ladder is used for carrying material aswell, suitable footholds and handholds shall be providedon the ladder and the ladder shall be given aninclination not steeper than 1 in 4 (1 horizontal and 4vertical).ii) Scaffolding or staging more than 4 metres above theground or floor, swing suspended from an overheadsupport or erected with stationary support shall have aguard rail properly attached, bolted, braced andotherwise retarded at least one metre high above thefloor or platform of such scaffolding or staging andextending along the entire length of the outside andends thereof with only such openings as may benecessary for the delivery of materials. Suchscaffolding or staging shall be so fastened as to preventit from swaying from the building or structure.iii) Working platform, gangway and stairway should be soconstructed that they should not sag unduly orunequally and if the height of platform of the gangwayor the stairway is more than 4 metres above the groundlevel or floor level, they should be closely boarded,should have adequate width and should be suitablyfastened as in ii) above.iv) Every opening in the floor of a building or in a workingplatform shall be provided with suitable means toprevent the fall of persons or materials by providingsuitable fencing of railing whose minimum heights shallbe 1 metre.v) Safe-means of access shall be provided to all workingplatforms and other working places, every ladder shallbe securely fixed. No portable single ladder shall beover 9 metres in length while the width between siderails in rung ladder shall in no case be less than 30 cmsfor ladder upto and including 3 metres in length. Forlonger ladder this width should be increased 5mm foreach additional foot of length. Uniform steps spacingshall not exceed 30 cms. Adequate precautions shallbe taken to prevent danger from electrical equipment.No materials on any of the sites or work shall be sostacked or placed to cause danger or inconvenience toany person or public. The CONTRACTOR shall alsoprovide all necessary fencing and lights to protect theworkers and staff from accidents, and shall be bound tobear the expenses of defense of every suit, action orother proceeding of law that may be brought by anyperson for injury sustained owing to neglect of theabove precautions and pay any damages and costswhich may be awarded in any such suit or action orproceeding to any such person or which may with theconsent of the CONTRACTOR be paid to compromiseany claim by any such person.115 Excavation and trenching: 115.1 All trenches 1.2 metres or more in depth, shall at all timesbe supplied with at least one ladder for each 50 metreslength or fraction thereof.68

General Conditions of ContractLadder shall be extended from bottom of the trenches toatleast 1 metre above the surface of the ground. The sidesof the trenches which are 1.5M in depth shall be steppedback to give suitable slope or securely held by timberbracing, so as to avoid the danger of sides to collapse.The excavated materials shall not be placed within 1.5metres of the edge of the trench or half of the trench widthwhichever is more. Cutting shall be done from top tobottom. Under no circumstances undermining orunder-cutting shall be done.116 Demolition/general safety: 116.1 i) Before any demolition work is commenced and alsoduring the progress of the demolition worka) All roads and open areas adjacent to the work siteshall either be closed or suitably protected.b) No electric cable or apparatus which is liable to bea source of danger shall remain electricallycharged.c) All practical steps shall be taken to prevent dangerto persons employed from risk of fire or explosionor flooding. No floor, roof or other part of thebuilding shall be so overloaded with debris ormaterials as to render it unsafe.ii) All necessary personal safety equipment as consideredadequate by the ENGINEER-IN-CHARGE, should bekept available for the use of the persons employed onthe SITE and maintained in condition suitable forimmediate use, and the CONTRACTOR shall takeadequate steps to ensure proper use of equipment bythose concerned.a) Workers employed on mixing asphaltic materials,cement and lime mortars shall be provided withprotective footwear and protective gloves.b) Those engaged in white washing and mixing orstacking or cement bags or any material which areinjurious to the eyes be provided with protectivegoggles.c) Those engaged in welding and cutting works shallbe provided with protective face & eye shield, handgloves, etc.d) Stone breakers shall be provided with protectivegoggles and protective clothing and seated atsufficiently safe intervals.e) When workers are employed in sewers andmanholes, which are in use, the CONTRACTORshall ensure that the manhole covers are openedand are ventilated atleast for an hour before theworkers are allowed to get into the manholes, andthe manholes so opened shall be cordoned off with69

General Conditions of Contractsuitable railing and provided with warning signals orboard to prevent accident to the public.f) The CONTRACTOR shall not employ men belowthe age of 18 years and women on the work ofpainting with products containing lead in any form.Wherever men above the age of 18 years areemployed on the work of lead painting, the followingprecautions should be taken.1) No paint containing lead or lead product shallbe used except in the form of paste orreadymade paint.2) Suitable face masks should be supplied for useby the workers when paint is applied in the formof spray or a surface having lead paint dryrubbed and scrapped.3) Overalls shall be supplied by theCONTRACTOR to the workmen and adequatefacilities shall be provided to enable theworking painters to wash them during and oncessation of work.iii) When the work is done near any place where there isrisk of drowning, all necessary safety equipmentshould be provided and kept ready for use and allnecessary steps taken for prompt rescue of anyperson in danger and adequate provision should bemade for prompt first aid treatment of all injuries likelyto be sustained during the course of the work.iv) Use of hoisting machines and tackles including theirattachments, anchorage and supports shall conformto the following standards or conditions:a) These shall be of good mechanical construction,sound materials and adequate strength and freefrom patent defect and shall be kept in goodworking order.b) Every rope used in hoisting or lowering materialsor as means of suspension shall be of durablequality and adequate strength and free frompatent defects.c) Every crane driver or hoisting appliance operatorshall be properly qualified and no person underthe age of 21 years should be in charge of anyhoisting machine including any scaffolding, winchor give signals to the operator.d) In case of every hoisting machine and of everychain ring hook, shackle, swivel, and pulley blockused in hoisting or lowering or as means ofsuspension, the safe working load shall beascertained by adequate means. Every hoistingmachine and all gears referred to above shall beplainly marked with the safe working load of the70

General Conditions of Contractconditions under which it is applicable and thesame shall be clearly indicated. No part of anymachine or any gear referred to above in thisparagraph shall be loaded beyond safe workingload except for the purpose of testing.e) In case of departmental machine, the safe workingload shall be notified by theENGINEER-IN-CHARGE. As regardsCONTRACTOR's machines, the CONTRACTORshall notify the safe working load of the machineto the ENGINEER-IN-CHARGE whenever hebrings any machinery to SITE of WORK and get itverified by the Engineer concerned.v) Motors, gears, transmission lines, electric wiring andother dangerous parts of hoisting appliances shouldbe provided with efficient safeguards. Hoistingappliances should be provided with such means as toreduce to minimum the accidental descent of theload, adequate precautions should be taken to reducethe minimum risk of any part or parts of a suspendedload becoming accidentally displaced. When workersare employed on electrical installations which arealready energised, insulating mats, wearing apparel,such as gloves, sleeves, and boots as may benecessary should be provided. The workers shall notwear any rings, watches and carry keys or othermaterials which are good conductors of electricity.vi) All scaffolds, ladders and other safety devicesmentioned or described herein shall be maintained insafe conditions and no scaffolds, ladder or equipmentshall be altered or removed while it is in use.Adequate washing facilities should be provided at ornear places of work.vii) These safety provisions should be brought to thenotice of all concerned by displaying on a noticeboard at a prominent place at the work-spot. Theperson responsible for compliance of the safety codeshall be named therein by the CONTRACTOR.viii) To ensure effective enforcement of the rules andregulations relating to safety precautions, thearrangements made by the CONTRACTOR shall beopen to inspection by the Welfare Officer,ENGINEER-IN- CHARGE or safety Engineer of theAdministration or their representatives.ix) Notwithstanding the above clauses there is nothing inthese to exempt the CONTRACTOR for theoperations of any other Act or rules in force in theRepublic of India. The work throughout including anytemporary works shall be carried out in such amanner as not to interfere in any way whatsoever withthe traffic on any roads or footpath at the site or in thevicinity thereto or any existing works whether theproperty of the Administration or of a third party.71

General Conditions of ContractIn addition to the above, the CONTRACTOR shallabide by the safety code provision as per C.P.W.D.Safety code and Indian Standard Safety Code fromtime to time.117 Care in handling inflammablegas:118 Temporary combustiblestructures:117.1 The CONTRACTOR has to ensure all precautionarymeasures and exercise utmost care in handling theinflammable gas cylinder/inflammable liquids/paints etc. asrequired under the law and/or as advised by the fireAuthorities of the EMPLOYER.118.1 Temporary combustible structures will not be built near oraround work site.119 Precautions against fire: 119.1 The CONTRACTOR will have to provide FireExtinguishers, Fire Buckets and drums at worksite asrecommended by ENGINEER-IN-CHARGE. They will haveto ensure all precautionary measures and exercise utmostcare in handling the inflammable gas cylinders/inflammable liquid/ paints etc. as advised byENGINEER-IN-CHARGE. Temporary combustiblestructures 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 onthe SITE by the CONTRACTOR without the permission ofthe ENGINEER-IN-CHARGE in writing and then only in themanner and to the extent to which such permission isgiven. When explosives are required for the WORK theywill be stored in a special magazine to be provided at thecost of the CONTRACTOR in accordance with theExplosives Rules. The CONTRACTOR shall obtain thenecessary licence for the storage and the use of explosivesand all operations in which or for which explosives areemployed shall be at sole risk and responsibility of theCONTRACTOR and the CONTRACTOR shall indemnifythe EMPLOYER against any loss or damage resultingdirectly or indirectly therefrom.121 Mines act: 121.1 SAFETY CODE: The CONTRACTOR shall at his ownexpense arrange for the safety provisions as required bythe ENGINEER-IN-CHARGE in respect of all labourdirectly employed for performance of the WORKS andshall provide all facilities in connection therewith. In casethe CONTRACTOR fails to make arrangements andprovides necessary facilities as aforesaid, theENGINEER-IN- CHARGE shall be entitled to do so andrecover the costs thereof from the CONTRACTOR.121.2 Failure to comply with Safety Code or the provisionsrelating to report on accidents and to grant of maternitybenefits to female workers shall make the CONTRACTORliable to pay Company Liquidated Damages an amount notexceeding Rs.50/- for each default or materially incorrectstatement. The decision of the ENGINEER-IN-CHARGEin such matters based on reports from the InspectingOfficer or from representatives of ENGINEER-IN-CHARGEshall be final and binding and deductions for recovery ofsuch Liquidated Damages may be made from any amountpayable to the CONTRACTOR from all the provisions of72

General Conditions of Contractthe Mines Act, 1952 or any statutory modifications orre-enactment thereof the time being in force and any Rulesand Regulations made thereunder in respect of all thepersons employed by him under this CONTRACT andshall indemnify the EMPLOYER from and against anyclaim under the Mines Act or the rules and regulationsframed thereunder by or on behalf of any personsemployed by him or otherwise.122 Preservation of place: 122.1 The CONTRACTOR shall take requisite precautions anduse his best endeavours to prevent any riotous or unlawfulbehaviour by or amongst his worker and others employedor the works and for the preservation of peace andprotection of the inhabitants and security of property in theneighborhood of the WORK. In the event of theEMPLOYER requiring the maintenance of a Special PoliceForce at or in the vicinity of the site during the tenure ofworks, the expenses thereof shall be borne by theCONTRACTOR and if paid by the EMPLOYER shall berecoverable from the CONTRACTOR.123 Outbreak of infectiousdiseases:123.1 The CONTRACTOR shall remove from his camp suchlabour and their facilities who refuse protective inoculationand vaccination when called upon to do so by theENGINEER-IN-CHARGE's representative. ShouldCholera, Plague or other infectious diseases break out theCONTRACTOR shall burn the huts, beddings, clothes andother belongings or used by the infected parties andpromptly erect new huts on healthy sites as required by theENGINEER-IN-CHARGE failing which within the timespecified in the Engineer's requisition, the work may bedone by the EMPLOYER and the cost thereof recoveredfrom the CONTRACTOR.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 withinthe control of the CONTRACTOR or any of his employee isforbidden and the CONTRACTOR shall exercise hisinfluence and authority to the utmost extent to secure strictcompliance with this condition.In addition to the above, the CONTRACTOR shall abide bythe safety code provision as per C.P.W.D. safety code andIndian Standard Code framed from time to time.73

General Conditions of ContractPROFORMA 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 shallunless repugnant to the context includes their legal representatives, successors andassigns having their registered office at 16, Bhikaiji Cama Place; R.K.Puram New Delhihas entered into a CONTRACT with ______________________ (hereinafter referred toas the CONTRACTOR which expression shall unless repugnant to the context includetheir legal representatives, successors and assigns) for ____________________on theterms and conditions as set out, inter-alia, in the CONTRACT No.................Dated............. and various documents forming part thereof hereinafter collectivelyreferred to as the "CONTRACT" which expression shall include all amendments,modifications and/or variations thereto.AND WHEREASi) GAIL has agreed to supply to the CONTRACTOR, equipment, plants andmaterials (finished, semi-finished and raw)for the purpose of EXECUTION of thesaid CONTRACT by the CONTRACTOR (the equipment, plants and materials tobe supplied by GAIL to the CONTRACTOR, hereinafter for the sake of brevityreferred to as the "said materials") and pending execution by the CONTRACTORof the CONTRACT incorporating the said materials, the said materials shall beunder 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 theCONTRACTOR.ii)As a pre-condition to the supply of the said materials by GAIL to theCONTRACTOR, GAIL has required the CONTRACTOR to furnish to GAIL anIndemnity Bond in the manner and upon terms and conditions hereinafterindicated.NOW, THEREFORE, in consideration of the premises aforesaid theCONTRACTOR hereby irrevocably and unconditionally undertakes to indemnifyand 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 thesaid 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, orfaulty method or technique of fabrication, strike, riot, civil commotion, or other actor omission or commission whatsoever within or beyond the control of theCONTRACTOR, misuse and misappropriation (inclusive but not limited to themisuse or misappropriation by the CONTRACTOR and the Contractor's servantsand/or agents) whatsoever to, or of in the said materials or any part of themthereof from the date that the same or relative part of item thereof was supplied tothe CONTRACTOR upto and until the date of return to GAIL of the said materialsor relative part of item thereof or completed fabricated works(s) incorporating thesaid material and undertake to pay to GAIL forthwith on demand in writing withoutprotest or demur the value as specified by GAIL of the said material or item or part74

General Conditions of Contractthereof, lost, damaged, destroyed, misused and/or misappropriated, as the casemay be or, together with GAIL'S costs and expenses (inclusive of but not limitedto handling, transportation, cartage, insurance, freight, packing and inspectioncosts/or expenses upto) and aggregate limit ofRs.______________________________________________(Rupees____________________________________________________________________________________Only).AND THE CONTRACTOR hereby agrees with GAIL that:i) This Indemnity/Undertaking shall be a continuing Indemnity/ Undertakingand shall remain valid and irrevocable for all claims of GAIL arisinghereunder upto and until the midnight of ________________. However, ifthe CONTRACT for which this Indemnity/Undertaking is given is notcompleted by this date, the CONTRACTOR hereby agrees to extend theIndemnity/Undertaking till such time as is required to fulfil the CONTRACT.ii)iii)This Indemnity/Undertaking shall not be determined by any change inconstitution or upon insolvency of the CONTRACTOR but shall be in allrespects and for all purposes be binding and operative until payment of allmoneys payable to GAIL in terms of hereof.The mere statement of allegation made by or on behalf of GAIL in anynotice or demand or other writing addressed to the CONTRACTOR as toany of the said material or item or part thereof having been lost , damaged,destroyed, misused or misappropriated while in the custody of theCONTRACTOR and/or prior to completion of the completed fabricatedwork(s) and delivery to job site thereof incorporating the said materialsshall be conclusive of the factum of the said material or item or part thereofhaving been supplied to the CONTRACTOR and/or the loss, damage,destruction, misuse or misappropriation thereof, as the case may be, whilein the custody of the CONTRACTOR and/or prior to the completion of thecompleted fabricated work(s) and delivery to job site thereof incorporatingthe said materials without necessity on the part of GAIL to produce anydocumentary proof or other evidence whatsoever in support of this.iv)The amount stated in any notice of demand addressed by GAIL to theCONTRACTOR as to the value of such said materials lost, damaged,destroyed, misused or misappropriated, inclusive relative to the costs andexpenses incurred by GAIL in connection therewith shall be conclusive ofthe value of such said materials and the said cost and expenses as also ofthe amount liable to be paid to GAIL to produce any voucher, bill or otherdocumentation or evidence whatsoever in support thereof and suchamount shall be paid without any demur and on demand and no disputeshall be raised concerning the same.75

General Conditions of ContractThe undersigned has full power to execute this Indemnity Bond on behalf of theCONTRACTOR under the Power of Attorney dated______.(SIGNED BY COMPETENT AUTHORITY)Place:Dated:Official seal of the CONTRACTOR76

General Conditions of ContractPROFORMA FOR CONTRACT AGREEMENTLOA 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 includeits successors and permitted assignees) of the one part and GAIL (INDIA) LIMITEDhereinafter called the “EMPLOYER” (which term shall, unless excluded by orrepugnant to the subject or context include its successors and assignees) of theother part.WHEREASA. The EMPLOYER being desirous of having provided and executed certain workmentioned, enumerated or referred to in the Tender Documents including LetterInviting Tender, General Tender Notice, General Conditions of Contract, SpecialConditions of Contract, Specifications, Drawings, Plans, Time Schedule ofcompletion of jobs, Schedule of Rates, Agreed Variations, other documents hascalled for Tender.B. The CONTRACTOR has inspected the SITE and surroundings of WORKspecified in the Tender Documents and has satisfied himself by carefulexamination 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, thequantities, nature and magnitude of the work, the availability of labour andmaterials necessary for the execution of work, the means of access to SITE, thesupply of power and water thereto and the accommodation he may require andhas made local and independent enquiries and obtained complete information asto the matters and thing referred to, or implied in the tender documents or havingany connection therewith and has considered the nature and extent of allprobable and possible situations, delays, hindrances or interferences to or withthe execution and completion of the work to be carried out under theCONTRACT, and has examined and considered all other matters, conditionsand things and probable and possible contingencies, and generally all mattersincidental thereto and ancillary thereof affecting the execution andcompletion of the WORK and which might have influenced him in making histender.C. The Tender Documents including the Notice Letter Inviting Tender, GeneralConditions of Contract, Special Conditions of Contract, Schedule of Rates,General Obligations, SPECIFICATIONS, DRAWINGS, PLANS, Time Schedulefor completion of Jobs, Letter of Acceptance of Tender and any statement ofagreed variations with its enclosures copies of which are hereto annexed formpart of this CONTRACT though separately set out herein and are included inthe expression “CONTRACT” wherever herein used.77

General Conditions of ContractAND WHEREASThe EMPLOYER accepted the Tender of the CONTRACTOR for the provision and theexecution of the said WORK at the rates stated in the schedule of quantities of the workand finally approved by EMPLOYER (hereinafter called the "Schedule of Rates") uponthe terms and subject to the conditions of CONTRACT.NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED ANDDECLARED AS FOLLOWS:-1. In consideration of the payment to be made to the CONTRACTOR for the WORKto be executed by him, the CONTRACTOR hereby covenants withEMPLOYER that the CONTRACTOR shall and will duly provide, execute andcomplete the said work and shall do and perform all other acts and things in theCONTRACT mentioned or described or which are to be implied there from ormay be reasonably necessary for the completion of the said WORK and at thesaid times and in the manner and subject to the terms and conditions orstipulations mentioned in the contract.2. In consideration of the due provision execution and completion of the saidWORK, EMPLOYER does hereby agree with the CONTRACTOR that theEMPLOYER will pay to the CONTRACTOR the respective amounts for theWORK actually done by him and approved by the EMPLOYER at the Scheduleof Rates and such other sum payable to the CONTRACTOR under provision ofCONTRACT, such payment to be made at such time in such manner asprovided for in the CONTRACT.A N D3. In consideration of the due provision, execution and completion of thesaid WORK the CONTRACTOR does hereby agree to pay such sums as maybe due to the EMPLOYER for the services rendered by the EMPLOYER tothe CONTRACTOR, such as power supply, water supply and others as setfor in the said CONTRACT and such other sums as may become payable tothe EMPLOYER towards the controlled items of consumable materials ortowards loss, damage to the EMPLOYER'S equipment, materials constructionplant and machinery, such payments to be made at such time and in suchmanner as is provided in the CONTRACT.It is specifically and distinctly understood and agreed between the EMPLOYERand the CONTRACTOR that the CONTRACTOR shall have no right, title orinterest in the SITE made available by the EMPLOYER for execution of theworks or in the building, structures or work executed on the said SITE by theCONTRACTOR or in the goods, articles, materials etc., brought on the saidSITE (unless the same specifically belongs to the CONTRACTOR) and theCONTRACTOR shall not have or deemed to have any lien whatsoevercharge for unpaid bills will not be entitled to assume or retain possession orcontrol of the SITE or structures and the EMPLOYER shall have an absoluteand unfettered right to take full possession of SITE and to remove theCONTRACTOR, their servants, agents and materials belonging to theCONTRACTOR and lying on the SITE.78

General Conditions of ContractThe CONTRACTOR shall be allowed to enter upon the SITE for execution ofthe 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 theEMPLOYER shall be entitled to terminate such license at any time withoutassigning any reason.The materials including sand, gravel, stone, loose, earth, rock etc., dug up orexcavated from the said SITE shall, unless otherwise expressly agreed under thisCONTRACT, exclusively belong to the EMPLOYER and the CONTRACTOR shallhave no right to claim over the same and such excavation and materials should bedisposed off on account of the EMPLOYER according to the instruction in writingissued from time to time by the ENGINEER-IN-CHARGE.In Witness whereof the parties have executed these presents in the day and the yearfirst above written.Signed and Delivered for and onon behalf of EMPLOYER.Signed and Delivered for andon behalf of the CONTRACTORs.GAIL (INDIA) LIMITED______________________________________________________________Date :___________Place:___________(NAME OF THE CONTRACTOR)________________________________________________________Date :____________Place:____________IN PRESENCE OF TWO WITNESSES1._________________________________________________________________________________2._________________________________________________________________________________1. ________________________________________________________________________2. ________________________________________________________________________79