KIOCL Limited. - The Kudremukh Iron Ore Company Limited

2. Bank Guarantee in prescribed Proforma (attached), executed by a Nationalised Bank /Scheduled Bank. If the bank guarantee is from a non-Indian Bank, the same shall be gotstamped at Bangalore, karnataka State, India, by the Foreign Banker‟s Associates /Subsidiaries or agents in India, in accordance with the laws applicable in State of Karnataka,India.B. If CONTRACTOR fails to provide the security within the period specified, such failure will constitute a breachof the Contract and the Owner shall be entitled to award the work elsewhere at CONTRACTOR‟s risk andcost.C. No claims shall lie against OWNER either in respect of interest due, if any, on security deposits ordepreciation in their value.D. As and by way of additional security, from every progressive bill of CONTRACTOR, Security Deposit at therate of 7% of the Gross Value of such bill as determined before payment shall be retained by OWNER orCONTRACTOR can submit additional Security Deposit by Bank guarantee.E. Whenever the Security Deposit is furnished by CONTRACTOR in any form other than cash or DemandDraft, CONTRACTOR shall be entirely responsible to keep such form of security deposit enforceable byOWNER by extending the validity thereof, if required, by removing the restrictions thereon, within one monthbefore the due date of expiry and keep them enforceable until released by OWNER after the period ofmaintenance.F. The Security Deposit shall remain at the entire disposal of OWNER as a security for satisfactory executionand completion of the Work(s). OWNER shall be at liberty to deduct and appropriate from the SecurityDeposit such damages (liquidated or otherwise) and other dues and recoveries from CONTRACTOR underthis CONTRACT and the amount by which Security Deposit is reduced by such appropriations will be madeby further deductions from CONTRACTOR‟s subsequent bills to that extent as to make up the SecurityDeposit to the full.G. Notwithstanding anything to contrary, in as much as the Security Deposit is to be in cash with OWNER,OWNER shall be entitled to enforce any of the approved forms of Security Deposit furnished byCONTRACTOR at any time and realise cash thereof irrespective of whether or not CONTRACTOR disputessuch right. However, if CONTRACTOR obtains the extension of the time limit, if any, for the enforceability ofsuch form of Security Deposit and intimates OWNER of such extension within one month before expiry,OWNER may not enforce such form of Security Deposit, unless it has otherwise become enforceable.H. On due and satisfactory performance of all the obligations of CONTRACTOR under this CONTRACTincluding completion of work in all respects carrying out the obligations of CONTRACTOR during Period ofMaintenance, Security Deposit shall be released by OWNER subject to recoveries, deductions andretentions there from as provided under the CONTRACT.38.00 PERIOD OF MAINTENANCE AND MAINTENANCE CERTIFICATEA. To the extent that the work shall, at or as soon as practicable after the expiry of the Period ofMaintenance, be delivered upto OWNER in as good and perfect condition (fair wear and tearexcepted) to the satisfaction of OWNER, as that, in which they were at the commencement of thePeriod of Maintenance, CONTRACTOR shall execute all such work of repair, modification,reconstruction, rectification and making good of defects, imperfections, shrinkages or other faultsas may be required on CONTRACTOR in writing by ENGINEER / OWNER during the Period ofMaintenance or within fourteen days after the expiry as a result of an inspection made by or onbehalf of OWNER prior to its expiry. The decision of OWNER shall be final, conclusive to andbinding on the Parties in this regard.B. All such work shall be carried out by CONTRACTOR at his own expense if the necessity thereofshall, in the opinion of ENGINEER/OWNER, be due to the use of material or workmanship not inaccordance with this CONTRACT or to neglect or failure on the part of CONTRACTOR to complywith any obligation expressed or implied on CONTRACTOR‟s part under this Contract. If, in theopinion of ENGINEER/OWNER, such necessity is due to any other cause, the value of work shallbe ascertained and paid for as if it was Extra Work. In case the CONTRACTOR fails to keep therequired work force at Site during maintenance period, the OWNER reserves the right to change /replace any portion of the work without waiting for the CONTRACTOR, if the same is essential forkeeping the operations running. The cost of such work will be recovered from the CONTRACTOR.56