scope of work and special conditions of contract(scc) - GAIL

SCOPE OF WORK AND SPECIAL CONDITIONS OF CONTRACT(SCC)
Special Conditions of Contract and scope of work shall be read in
conjunction with the General Conditions of Contract (for consultancy
services), specifications of work, Drawings, Schedule of Rates ( SOR) and
any other document forming part of this contract wherever the context
so requires.
Where any portion of the General Conditions of Contract is
repugnant to or at variance with any provisions of the Special Conditions
of contract unless a different intention appears, the provision of the
Special Conditions of Contract shall be deemed to override the
provisions of the General Conditions of Contract and shall to the extent
such repugnancy or variations, prevail.
Project Description:
Implementation of up-gradation of existing fire water system as per OISD-214
in Despatch Terminal at Vizag and Receiving Terminal, Cheralapalli of VSPL LPG
Pipeline.
Introduction
GAIL (India) Limited is operating LPG pipeline network starting from Vizag in
Andhra Pradesh to Secunderabad in Andhra Pradesh State. The pipeline is
called as VSPL and it is meant for supplying LPG to various clients en route
such as IOCL, BPCL and HPCL. The total length of the pipeline (mainline &
spur lines) is approximately 580 Kms. and to maintain required flow in the
pipeline, there is LPG Pumping/Booster Stations at Vizag, TOT Vijayawada
and Receipt terminal at Cheralapally( near Secunderabad , AP).
Consultant’s Scope of Work:
The Project Management Consultant (PMC) is being appointed for executing
the project(augmentation of the fire fighting system which is necessitated due to
change in OISD 116/117 to OISD 214/144 ) right from Design to
Commissioning based on M/S Mecon Limited report NO.
MEC/05/28/23MN/GAIL/06 &7 (enclose as annexure-1) on total and single
point responsibility basis. The PMC Project Manager will be the “Engineer-In
charge” for the said Project and from GAIL Vizag and GAIL- Cheralapally
HOD(F&S) shall be coordinator for respective sites. The scope of work of the
PMC is broadly

defined under the following heads but not limited to:
i. Design & Detail Engineering as per M/S Mecon Limited report NO.
MEC/05/28/23MN/GAIL/06 (enclose as annexure-1).
ii. Planning & Scheduling
iii. Tendering & Ordering including Purchase of all equipment and materials,
award of works contracts, Custom clearance of foreign supplied items if any &
their Transportation from Indian port to site etc. Tendering & Ordering to be
done as per GAIL’s C&P Procedure.
iv. Inspection/ Expediting of equipment/Materials being manufactured by
vendors including contractors supplied items and inspection of works being
carried out by the works contractor, Quality assurance and Quality control.
v. Stores Management & material accounting during the project time.
vi. Construction Management & Supervision
vii. Project Commissioning/ Commissioning Assistance.
viii. Project Cost Control, Management & Monitoring.
ix. Project close out.
The scope of work broadly includes followings:
i) Installation /replacement of approximately 200 metre of various size
pipe in Vizag and 25 metre of various size pipe in Cherapally.
ii) Installation /replacement of various size valves, strainers, flanges,
hydrants, monitors, pressure gauge, switch and other accessories in
Vizag and Cherapally.
iii) Installation of additional water spray system in Vizag and Cherapally.
iv) Installation of two nos. each new diesel driven 616(m3/hr) Fire water
pumps with associated accessories on the existing fire water
pumps(410 m3/hr) foundation with the required modification
(Preferably by back of existing pumps by the pump vendor).
v) Associated Fire detection and alarm system.
vi) Associated Electrical & instrumentation works.
vii) Associated Civil works
viii) Installation of pressure safety valves
PMC deliverables:
The PMC is required to submit all deliverables within the schedule time line as
per the requirement mentioned in various sections of this document. The
deliverables includes all documents, drawings, Plan, Schedule, Costing, Best
Practices, Replies etc mentioned under various disciplines of the WBS
elements. The deliverables are summarized as under but not limited to:
a) All Periodic Reports, Daily Progress Reports during construction,
Customized Reports, presentations, best practices/ international practices
required for submission to Management / External Agencies.

) All documents related to engineering, tendering, ordering, manufacturing,
delivery, construction, commissioning.
c) Stage wise recommendations
d) Design basis, Data sheets, P& IDs, Engineering Drawings
e) Project Cost reports
f) Various types of Plan, Manuals including Risk & Disaster Management
Plan
g) Documentation for OISD compliance
h) Performance Evaluation Reports of vendors / contractors
i) Project Close out reports
j) Any type of report required for obtaining Statutory permissions by the
authorities.
k) Any other deliverable not mentioned here but required elsewhere in
tender.
Both hard and editable soft copies to be provided.
Time Schedule:
The contractual time frame of completion of total Fire water up gradation job
for the PMC shall be 15 months from the date of FOI.
Note: (i)PMC is required to commission the project within 12 months from the
date of FOI and close out all the project activities/contracts within next 3
months. PMC is required to put manpower and resources accordingly. PMC is
required to work simultaneously in various procurement/work packages and
make strong efforts to complete the project on or before the targeted date of
commissioning.
(ii) The modifications to be carried such that the plant will be on running
condition to the extent possible.

SPECIAL CO�DIO�S OF CO�TRACT(SCC)
Terms of PMC payments
i. All the relevant clauses of GENERAL CONDITIONS OF CONTRACT (for
consultancy services), ITB & SPECIAL CONDITIONS OF CONTRACTS( SCC) shall be
applicable.
ii. Payment shall start only after signing of Contact Agreement .
iii. Payments will be based on successful completion of milestone activities,
as per the amount value quoted by the PMC through e-banking. The consultant
shall raise fortnightly invoices for the milestones attained during the billing
period. The PMC is required to mandatory fill all the columns against each
milestone. The Cumulative amount quoted against the milestones will be
considered for evaluation for award of job. The details of the milestones
are as enclosed at Annexure- 2.
iv. The PMC shall be responsible to submit the invoices with required
documents and same will be processed through GAIL Bill Watch System
(BWS) . An electronic receipt of the bill will send to vendor. Owner shall
endeavour to release payments within 15 days for the bills raised by the PMC
through e-banking.
v. Payment shall be made to the bank account bearing the name of PMC in
SBI/ICICI/HDFC to whom work order has been released by GAIL. The PMC
should open account in India.
vi. Close out of Project” in milestone list refers to:
Mechanical completion of the project, subsequent commissioning of all
facilities installed, closure of all purchase orders, work orders, contracts,
submission of all as built drawings, operating manuals, documents etc from
vendors/ contractors to owner and receipt of all unused material from
contractors and return to owner after due material reconciliation,
recommending penalties, recoveries if any for shortage, damages in goods and
submission of Project Close Out Report, Reconciliation with Customs etc.
vii. Safety statutory requirements:
The work is to be carried out in “Restricted Area” and the bidder shall have to
obtain the necessary permission to work as per instructions of the EIC and shall
start the job only after obtaining suitable work permit. Up gradation need to be
carried out with all safety precautions for personnel and plant.
Contractor has to obtain proper safety permit while carrying out any job. Proper
safety arrangement is required for safety of personnel inside the premises and
while carrying out the job. While working at height for more than 1.3 metres
contractor has to provide scaffolding for the working person. For

excavation/road cutting at any depth permit is to be obtained. Contractor is
totally responsible for the safety of the personnel. Permission will not be given
for the work if any unsafe condition prevails. All applicable statutory
requirement to be complied by the contractor .Contractor shall be responsible
for all safety equipment and personnel protection .If personal protective
equipment is not found in place ,GAIL has right to provide the same and deduct
the amount from the bill of the contractor.
VIII. statutory requirements:
The PMC and the execution contractors shall bound to discharge statutory
obligations as below and other relevant Acts, Rules & Regulations in force from
time to time.
1. It shall be the sole liability of the contractor (including the contracting firm)
or company should have independent PF Codes allotted by the PF Authorities
under the employees Provident Funds and Miscellaneous Provision Act, 1952.
2. The contractor shall also be bound to discharge obligations as provide under
various statutory enactments including the employees provident fund and
Miscellaneous Provisions Act1952, ESI Act, 1948, Minimum Wages Act 1948,
Payment of Bonus Act, Payment of Wages Act 1936, Workmen’s Compensation
Act 1923, the Contract Labour (R&A) Act, 1970 the inter state Migrant
workmen (Regulation of employment and condition of service) Act, 1979 and
other relevant Act, Rules and regulations in force from time to time.
3. The Contractor shall ensure that the Contractor / Contracting firm should
have separate ESI Code allotted under the Employees’ State Insurance Act –
1948 in case the work center / site office is covered under the said Act. In case
the area where our work center is situated is not covered under the ESI. It
must be ensured that the Contractor / Contracting firm should cover his/ its
employees under suitable insurance coverage.
The contractor to produce necessary EPF code before commencement of work.
The contractor should produce necessary ESIC code before commencement of
work or workmen who are not covered under ESI Act, the contractor should
take appropriate workmen compensation insurance policy and submit copy of
the same to GAIL before commencement of work.

4. The contractor shall be responsible for necessary contributions towards PF.
Pension, ESIC or any other statutory payment to Government Agencies as
applicable under the law in respect of the contract and personnel employed by
the contractor for rendering services to GAIL and shall deposit the required
amounts with the concerned authorities on or before due dates. The
contractor shall also be responsible for payment of any administration /
inspection charge there of, wherever applicable in respect of personnel
deployed by him relating to the work of GAIL. The contractors shall also submit
the proof of depositing the employees Provident fund contribution.
5. The contractor shall regularly submit all relevant records / documents in this
regard to GAIL representative for verification and upon such satisfactory only,
GAIL shall make payment of monthly running account bills only to contractor.
6. The contractor shall ensure and will be solely responsible for payment for
wages and other dues latest by 7th of the following month to the personnel
deployed by him. The contractor shall be directly responsible and indemnify
the company against all charges, actions, suites,losses, claims, dues
proceedings etc arising out of disputes relating to the dues and employment of
personnel deployed by him.
7. The contractor shall indemnify the company against all losses or damages if
any caused to it on account of acts of the personnel deployed by him.
8. The contractor shall ensure regular and effective supervision and control of
the personnel deployed by him and gives suitable direction for undertaking the
contractual obligations.
9.The contractor shall indemnify and keep the owner harmless of all claims,
damages or compensation payable at law in respect or in consequence of any
accident or damage arising under or by reason of this agreement or execution
of contract.
10. The contractor / contracting firm shall issue proper identity cards to all the
persons deployed for execution of work. The identity cards shall be signed by
the contractor / contracting firm or his authorized representative.
11. The contractor shall not employ any person below eighteen (18) years of
age.

12. The persons to be deployed under the contractor shall be on the rolls of
the contractor/contracting firm
13. If due to any reason whatsoever ,GAIL is made liable to meet any obligation
to pay the contribution towards PF/ESI or any other statutory payment, GAIL
shall be at liberty to recover such amount by deducting it from the security
deposit/contract performance security or any sum due to the contract whether
under this contract or otherwise.
The PMC shall ensure and keep the owner harmless of all claims, damages or
compensation payable at law in respect or in consequence of any accident or
damage arising under or by reason of this agreement or execution of contract.
ix. PRICES ,TAXES, DUTIES, OCTROI, LEVIES ETC.
The quoted rates shall remain valid for the entire period of contract and no
escalation whatsoever shall be permissible after award of the contract. The
bidder shall make his own arrangement for the transportation, conveyance,
lodging &boarding of his men and GAIL will have no obligation in this respect.
The quoted rates shall be deemed to be inclusive of all taxes, duties, octroi ,
levies, work contract tax, bonuses, statutory payments, etc. and excluding
service tax till the completion of the contract and consultant shall not be eligible
for any compensation on this account.
Service tax: The quoted rates shall be inclusive of all taxes and duties applicable
during the contract period except for service tax & education cess thereon.
Service tax & cess thereon shall be paid extra, if applicable, on submission of
documentary evidence/ invoice(s).The bidder shall indicate in the bid the
service tax registration number and in case the service tax registration number is
not available, the bidder will give confirmation for obtaining registration with a
copy of application for registration.
The consultant liable to pay service tax for the work/ services rendered to
GAIL, shall

specifically mention the service tax registration number in their invoices.
Further, the amount and rate of service tax shall be separately and distinctly
specified in the invoice. For payment of service tax, serially numbered invoice/
bill shall be issued by service provider and should also specify the following:
(i) The name, address and registration number of the service provider.
(ii) The name and address of the recipient of the taxable service.
(iii) Description, classification & value of taxable service provided and;
(iv) The service tax payable on such services.
X.TERMINATION OF CONTRACT
A) GAIL may without prejudice to its right against the contractor in respect
of any delay of otherwise or any claims for damage, in respect of any
breach of the terms of the contract and without prejudice to any right or
remedies under any of the provisions of this contract or otherwise, by
notice in writing absolutely terminate the contract with immediate
effect in nay of the following cases:
In the even of the contractor going into liquidation or winding up his
business or making arrangement with his creditors, GAIL shall have the right
to terminate the contract without prejudice to any other right/remedies.
In the event, if it is found that contract has been procured by submitting
incorrect or incomplete statements by the contractor or by making any mis
representation. If in the opinion of GAIL, the contractor has delayed or
suspended the execution of work, the facilities and Vehicles etc., offered by
the contractor to be inadequate for effective completion of the job. In the
event of any breach of the terms and conditions of the contract by the
contractor or if the contractor is found to be indulging in activity subversive to
GAIL’s interest or activity prejudicial to the interest of GAIL and for any other
good or sufficient reasons. Up to such termination of the contract the security
Deposit/Bank Guarantee are liable to be forfeited / invoked to satisfy the
outstanding claims of GAIL.
Notwithstanding anything contained above, GAIL may, as its sole discretion,
terminate this contract by giving the contractor 30 days written notice to the

effect, without assigning any reasons whatsoever. The contract shall be
deemed to have expired on expiry of the original period unless extended.
B) SUMMARY OF TERMINATION OF CONTRACT DUE TO SUBMISSION OF FALSE
DOCUMENTS:
Bidders are required to furnish the complete and correct information /
documents required for evaluation of their bids. If the information /
documents forming basis of evaluation is found to be false/forged, the same
shall be considered adequate group for rejection of the Bids and forfeiture of
Earnest Money Deposit( EMD not applicable for this contract).
In case, the information/documents furnished by the contractor forming basis
of evaluation of his bid is found to be false/forged after the award of the
contract, GAIL shall have full right to terminate the contract immediate and get
the remaining job executed at the risk & cost of such contractor without any
prejudice to the other rights available to GAIL under the contract such as
forfeiture of Security Deposits, withholding of payments etc.
In the case the issue of submission of false document comes to the notice after
execution of the work, GAIL shall have full right to forfeit any amount due to
the contractor along with forfeiture of Security Deposit furnished by the
contractor. Further, such contractor/bidder shall be blacklisted for future
business with GAIL.
XI. ABNORMALLY HIGH RATED ITEMS (AHR ITEMS):
In items rate contract where the quoted rates for the items exceed 50% of the
owners/estimated rates, such items will be considered as Abnormally High
Rates Items (AHR) and payment of AHR items beyond the SOR stipulated
quantities shall be made at the least of the following rates:
(I) Rates as per SOR, quoted by the contractor.
(II) Rate of the item, which shall be derived as follows:
Based on rates of machine and labour as available from the contract (which
includes contractor's supervision, profit, overheads and other expenses).

In case rates are not available in the contract, rates will be calculated based on
prevailing market rates of machine, material and labour plus 15% to cover
contractor's supervision profit, overhead & other expenses.
XII:PRICE REDUCTION SCHEDULE
The Price Reduction Schedule of this contract shall be same as specified in the General
Conditions of Contract (for consultancy services) Clause no.3.12.
XIII.DEFECT LIABILITY PERIOD (DLP): DLP for PMC shall be applicable till The
Defect Liability of main execution contractor.
XIV.RIGHT TO GET SERVICES CARRIED OUT THROUGH OTHER AGE�CIES:
GAIL has the right to accept similar services from other agencies at its discretion at the cost
& risk of the PMC, if it fails to provide the services as per terms and conditions of tender
documents.

Annexure 2
SCHEDULE OF MILE STONE VS PAYMENT
SL NO. MILE STONE DESCRIPTION PERCENTAGE OF
PAYMENT FOR
VIZAG
1 AWARD OF COMPOSITE WO
FOR UP GRADATION PROJECT
SITE EXECUTION CONTRACT
2 AWARD OF POS FOR PUMPS
FOR UP GRADATION
3 AWARD OF POS FOR ALL
MATERIALS (other than pumps)
FOR UP GRADATION
4 MECHANICAL COMPLETION OF
UPGRADATION
5 COMMISIONING OF
UPGRADATION PROJECT IN
TOTALITY
10% 10%
10% 10%
5% 5%
15% 15%
5% 5%
6 PROJECT CLOSE OUT 5% 5%
PERCENTAGE OF
PAYMENT FOR
CHERAPALLY
REMARKS

Full Postal
Address
and
phone nos
of Client
& Name
of Officerin-Charge
Description of
work
PRESENT COMMITMENTS OF THE BIDDER
Date of Commencement
of Work
Scheduled
Comp.
Period
Note: This list must be a full list of all type of works in hand
%Age
Comp. as
on Date
Expected
Date of
Completion
Remarks
SEAL SIGNATURE OF BIDDER

Descr
iptio
n of
work
Location
of the
work
DETAILS OF SIMILAR WORK DONE DURING PAST FIVE YEARS
Full Postal
Address and
phone nos of
Client & Name of
Officer-in-Charge
Value of
Contract
Date of
Commen
-cement
of Work
Scheduled
Completion
Time(Months)
Date
of
Actual
Compl
etion
Note: Copies of Letter of awards and Completion certificate for the above works to be enclosed
The Work completed earlier than three years need to be indicated here
The list of work, not of similar nature need to be indicated here
Failing to comply aforementioned instructions may lead to rejection of bid.
BIDDER
Reasons for
delay in
project
completion, if
any
SEAL AND SIGNATURE OF