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SECTION I Page 1 of 36


1.! 1.1 Def"#"$"o# of $e%&' In construing these general conditions of contract and the annexed specification the following words shall have the meanings here in assigned to them unless there is some thing in the subject or context inconsistent with such construction. Corporation shall mean Karnataka ower Corporation !td "K C!# on whose behalf the en$uir% is issued b% its representative& the 'ngineer( and shall include its successors& assigns as well as its authori)ed officer*representative. 'ngineer shall mean the Chief 'ngineer "+,-# or such other officers as ma% be dul% authorised b% K C! to act as 'ngineer for the purpose of this contract. In case where no such ('ngineer( has been so appointed the word 'ngineer( shall mean the Corporation( or his dul% authorised representative. Consultant( shall mean the person or firm named in the contract to work as consultant or such other person as ma% be dul% authorised and appointed b% the Corporation( to act as consultant for the purpose of contract. ,ub vendor*,ub contractor shall mean the person or firm named in the contract& undertaking a part of the work or an% person or firm to whom a part of contract has been sub.let with the consent in writing of the Corporation(*'ngineer( and shall include his legal representative& successors and permitted assigns. lant( or e$uipment( or works( shall mean the goods to be supplied and service to be provided b% the contractor( under the purchase order or contract. ,ite( shall mean the actual place of the proposed project as detailed in the specification or an% other place where the work is to be executed under contract. /idder*0enderer shall mean the firm * part% who $uotes against an en$uir%& contractor( shall mean the successful bidder whose bid has been accepted b% the Corporation( and shall include his heirs& legal representatives successors and permitted assigns.










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1anufacturers( refers to a person or firm who is the producer and furnisher of material and* or designer and fabricator of e$uipment to either Corporation( or the contractor( or both under the contract. 2thers( shall mean other successful /idders whose bids have been accepted b% the Corporation( and to whom the order have been placed b% the Corporation( for the suppl% of other plants*works and shall include their heirs& legal representatives successors and permitted assign. roject( shall mean the project specified in the project information section under art . I ,ection . III of the specification. /id(*tender shall mean the proposal*document the /idder submits in the re$uested and specified form in the specification. ,pecification( shall mean collectivel% all the terms and stipulations contained in those portions of the /id document( and such amendments& deletion& additions& revisions as ma% be made in the agreement and all written agreements made or to be made pertaining to the method and manner of performing the work( or to the $uantities and $ualities of the materials to be furnished under this contract(. 0he term e$uipment portion( or the suppl% portion( of the contract price( shall mean the all.inclusive 324 destination "site# value of the e$uipment*supplies to be made under the contract(. 0he term 'rection portion( of the contract price( shall mean the value of the field activities of the work including but not limited to the erection& testing& commissioning etc.& to be performed at site b% the Contractor( Contractors works( or manufacturer(s works( shall mean and include the land and other places which are used b% the contractor or sub vendor*subcontractor for the manufacture of e$uipment or performing the works( Inspector( shall mean the authorised representatives appointed b% the (Corporation( or the 'ngineer( for the purpose of inspection of material*e$uipment*works. 0he letter of award( or the purchase order( shall mean the official notice issued b% the (Corporation( or 'ngineer( notif%ing the contractor( that his proposal has been accepted and that the












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contractor( is re$uired to sign the contract agreement(. 0he date of letter of award shall be taken as the effective date of commencement of all works under the contract( 1.1+uarantee period shall mean the period during which the plant or e$uipment shall give the same performance as guaranteed b% the contractor in the schedule of guarantee in the specification. 5ate of contract( shall mean the calendar date on which the Corporation( and the contractor( have signed the contract. 1onth( shall mean the calendar month and 5a%( shall mean the calendar da%. 1echanical completion( shall mean the readiness for preliminar% operation( after the due erection or completion of assembl% of all the material and item of e$uipment covered under the scope of work. reliminar% operation( shall mean all activities undertaken as a part of commissioning after 1echanical completion( upto commencement of Initial operation and include mechanical and electrical checkouts. Calibration and testing of instruments and protection devices& commissioning of sub supporting s%stem& chemical cleaning other methods of cleaning of the plant*s%stem*e$uipment etc.& covered under the contract. Commissioning( shall mean integrated activit% covered under preliminar% operation(& (0rial operation( 4eliabilit% operation( and carr%ing out performance guarantee tests( Initial operation( shall mean all operation under taken as a part of commissioning after completion of preliminar% operation( up to the commencement of 0rial operation&. It shall be the first integral operation of the complete plant*s%stem*e$uipment covered under the contract. 0rial operation( shall mean the integral operation of the plant*s%stem*e$uipment covered under the contract for a specified period at specified load to establish its capacit% performance. 4eliabilit% operation( shall mean the integrated operation of all the e$uipment and s%stem covered under the scope at a range of operation for the specified period as indicated in the contract to prove and











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establish the trouble free operation and reliabilit% of the e$uipment covered under the contract. 1.(, erformance guarantee( test shall mean the tests as prescribed in the specification to be done b% the Contractor( to prove the efficienc% operating and acceptance parameters as guaranteed in the contract document. 6irtual Completion date shall mean the date on which the e$uipment and*or works is read% for 0aking over( b% the Corporation( upon which it could be put on Commercial use. Commercial use shall mean that use of e$uipment for work which contract contemplates or that for which the e$uipment or works is commerciall% capable. -riting shall include an% manuscript7 t%pe written& printed statement under or over signature and seal as the case ma% be 5rawings( shall mean all of the following8 a# 5rawings furnished b% the Corporation( or the 'ngineer( as a basis for proposal ,upplementar% drawings furnished b% the Corporation( or the 'ngineer( to clarif% and to define in greater details the intent of the contract. 5rawings submitted b% the contractor( with his proposal provided such drawings are acceptable to the Corporation( or the 'ngineer( 5rawings furnished b% the Corporation( or 'ngineer to the Contractor( during the progress of the work provided such drawings are acceptable to the 'ngineer(









Codes and standards( shall mean all the applicable codes and standards as indicated in the specification. 0he term Contract or Contract document( shall mean and include all of the following which shall be deemed to form an integral part of the contract(




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a# Invitation to bid(& /rief 0ender 9otification( Instructions to bidder& contract agreement& general condition of contract and all other documents b# ,pecifications of the e$uipment to be furnished and erected under the contract. c# :mendment*clarification to bid document if an% and 1inutes of the pre bid meeting. d# /idder*Contractor(s bid proposal including the letter of clarification thereto& minutes of the meeting between the /idder*contractor and Corporation( or the 'ngineer( prior to the award of contract. e# :ll the material& literature data and information of an% sort given b% the Contractor along with his bid subjected to the approval of Corporation( or the 'ngineer(. f# :n% agreed variation to the condition of the /id document( if an% g# letter of award issued b% the Corporation( to the contractor 1.3* 0he contract price( shall mean the price referred to in the letter of award and agreed to in the Contract 5ocument 0he Contract period( shall mean the period during which the contract shall be executed and expected to be completed as agreed between the Corporation( and (Contractor( in the contract& including the guarantee period. 'ngineer(s instruction( shall mean the direction& details and explanation issued b% the 'ngineer from time to time during the contract period. 9otice in writing( or written notice( shall mean a notice in written& t%ped or printed characters sent "unless delivered personall% or otherwise proved to have been received# b% registered post to the last known private business address& or the registered office of the addressee and shall be deemed to have been received when the ordinar% course of post it would have been delivered.






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Correspondence( shall mean an% letter& telex& telegram& ' mail& or other written communication related to the contract but excluding notices( ,ervices( means installation& testing& commissioning& provision of technical assistance& training and other such obligations of the supplies covered under the contract. 3inal completion( shall mean that all works indicated in the Contract scope of work is completed as directed and the site is cleared to the satisfaction of the Corporation( or the 'ngineer(. -ords imparting person( shall include firm& compan%& Corporation and association or bodies of individuals whether incorporated or not. -ords imparting singular( shall also include plural and vice versa where the context so re$uires. 0he +oods shall mean the e$uipment machiner% and*or other materials which supplier is re$uired to suppl% under contract. :pproved shall means the written approval of the (Corporation( or 'ngineer( or his authorised representative. rescribed( shall mean prescribed b% the Corporation( or competent authorit% 0aking over shall mean the event as detailed in Clause ;<.<< of the +eneral Conditions of Contract. =nit( shall mean the power generating unit consisting of all auxiliaries and support s%stem for which the plant*e$uipment*works is supplied. 0he =nit si)e and capacit% is as indicated under project title furnished in the project information in art . I ,ection . III and art.II of the /id document. 9669 shall mean 90 C 6id%ut v%apar 9igam !td.&9ew 5elhi












SCOPE O T.E CONTRACT 0he scope of contract shall be the design& engineering& manufacture& >ualit% surveillance& and testing at manufacturers works& packing& forwarding& deliver% at site& unloading& handling and storage at site&



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erection& testing& commissioning& performance guarantee tests and handing over including insurance towards transit risk& storage& intra site transportation& erection& testing and commissioning of the complete e$uipments in accordance with the specifications and document as explained in the bid document. 3.! CONTRACTOR TO IN OR/ .I/SEL 0LL1 0he Contractor shall be deemed to have carefull% examined the conditions and specifications. If he shall have an% doubt& as to the meaning of an% portion of the ? contract documents( he shall7 before signing the contract set forth the particulars thereof and submit them to the Corporation in writing in order that such doubts ma% be clarified or removed. Corporation will provide such clarification as ma% be necessar% in writing to the Contractor. :n% information otherwise obtained b% the Corporation or 'ngineer@ shall not in an% wa% relieve the Contractor of his responsibilit% to fulfill his obligation under the contract. CO/PLETENESS O CONTRACT 0he contract shall be complete and shall include all accessories which even though not specificall% mentioned in these specification& schedules& drawings etc.& are essential for the satisfactor% operation of the plant as a whole. 0he Contractor shall co.operate full% with the other manufacturers in the design& manufacture and testing of the entire plant which shall be completed in all respect of suppl% erection& testing and commissioning. CONTRACT AGREE/ENT AND PER OR/ANCE G0ARANTEE 0he successful bidder shall sign the contract agreement within C< da%s from the date of issue of letter of award on 9on Dudicial stamp paper for a value of 4s. E<<*. purchased in Karnataka strictl% in K C! format furnished for due fulfillment of the contract. :greement will be signed in one original onl%. 2riginal will be retained b% the corporation and certified cop% will be provided to the contractor. ,ubse$uent to signing of the contract& the Contractor shall provide K C! with F copies of the contract agreement dul% bound. 0he successful bidder shall furnish following /ank guarantees from a 9ationalised*scheduled bank towards contract performance for due fulfillment of the contract at the time of entering in to contract agreement.. i# /+ e$uivalent to B<G "0en percent# of the Contract value towards performance of the contract with a validit% period of HC months


*.! A.<B




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from the date of contract agreement "guarantee period of C; months plus work completion period of I months# ii# In addition to the aboue /+& the successful bidder shall also furnish the following bank guarantees for a total amount of 4s BB&IF&BA&<<<.<< &splitting to C /+s & as under. B# /+B for 4s.ECA;C<<<.<< "E<G of total /+ amount# with a validit% period of BE months# E# /+E for 4s. H&IBE;<<<.<<"H< G of total /+ amount# with a validit% period of BE months# C# /+C for 4s. H&IBE;<<<.<< "H< G of total /+ amount# with a validit% period of BE months. iii# In case& the project is dela%ed be%ond C months from the scheduled date of commissioning as per !2:& penalt% at the rate of 4s.B lakh per 1- per da% of dela% will be recovered from the B<G bank guarantee and the contractor has to furnish a fresh /+ e$uivalent to B<G of the contract value with an appropriate validit% period so as ree$uip the amount recovered towards penalt% 0he /.+.s furnished shall be through a 9ationalised * ,cheduled /ank on 4s.E<<*. stamp paper as per K C! format. 6.! ;.B /ANNER O E2EC0TION O CONTRACT 0he Contractor after the receipt and acceptance of the letter of award( will send one set of the final contract agreement alongwith performance guarantee*securit% deposit /+ to the Corporation for the scrutin% and approval. 0he agreement shall be signed on a date and time to be mutuall% agreed within the specified period. 0he Contractor will present himself for signing with performance guarantee and power of attorne% and other re$uisite material. 0he agreement will be signed in one original. Contractor will be provided with a certified cop% and original will be retained b% the Corporation. ,ubse$uent to signing of the contract& the Contractor at his own cost shall provide the Corporation with at least BA"fifteen# dul% bound copies of the agreement within BA da%s of the signing of the contract. E ECT AND 30RIDICTION O







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0he contract shall be considered as having come into force from the date of issue of letter of award b% the Corporation to the Contractor. 0he law applicable to this contract is the law in force in India. :n% suit or proceedings arising out of this contract shall be initiated in the appropriate law courts at /angalore. ASSIGN/ENT AND S0BLETTING O CONTRACT 0he Contractor shall not assign the contract or an% part thereof or an% benefit or interest there in or there under "other wise than b% a charge in favour of the Contractors */ankers of an% mone% due or to become due under this contract# without the prior written consent of the Corporation. 0he Contractor shall submit two copies of the sub vendor*sub contractor(s experience capabilit% to the Corporation( to enable the latter to assess the suitabilit% of the sub vendor*subcontractors to perform work. 0he Contractor shall not sublet the whole of the contract. 'xcept where other wise provided b% the contract shall not sublet an% part of the contract without prior written consent of the 'ngineer or the Corporation& which shall not be unreasonabl% withheld and such a consent if given shall not relieve the Contractor from an% liabilit% or obligation under the contract and he shall be responsible for the acts& defaults and neglects of an% sub vendor*subcontractor& his agents& servants& workmen as full% as if the% were the acts& defaults& neglects of the contractor his agents& servants or workmen. In the event of the contractors contravening this condition Corporation shall be entitled to place the order for the sub.contracted portion elsewhere on the contractor account& and at his risk and the contractor shall be liable for an% loss or damage which the purchaser ma% sustain in conse$uence or arising out of such replacing of the sub.contract. 0he Contractor shall be responsible for transmitting pertinent data of all sub contract terms and conditions of the sub vendors*sub contractors. 0he Contractor shall furnish to the Corporation two un priced( copies of all sub vendors showing the promised deliver% dates*places*programme. ,hould an% sub.contractor fail to carr%out an% portion of the work satisfactoril%& this work shall be cancelled b% the Contractor on


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written notice to the Corporation to that effect. 0he work( however shall be continued b% the Contractor himself or through another approved sub contractor and complete the work as per agreed schedule. -.! J.B PATENT RIG.TS AND RO1ALTIES 4o%alties and fees for patents covering materials& articles& apparatus& devices& e$uipments or processes used in the works( shall be deemed to have been included in the contract prices. 0he Contractor shall satisf% all demands that ma% be made at an% time for such ro%alties or fees and he alone shall be liable for an% damages or claims for patent infringements and shall keep the Corporation indemnified in that regard. 0he Contractor shall at his own cost and expense& defend all suits or proceedings that ma% be initiated for alleged infringement of an% patent involved in the works( and in case of an% award of damages& the Contractor shall pa% for such award. In the event of an% suit or other proceedings instituted against Corporation& the same shall be defended at the cost and expenses of the Contractor who shall also satisf%*compl% an% decree& order or award made against the Corporation. /ut it shall be understood that no such machine& plant& work& material or thing has been used b% the Corporation for an% purpose or an% manner other than that for which the% have been furnished and installed b% the Contractor and specified under these specifications. 3inal pa%ment or an% pa%ment to the Contractor b% the Corporation( will not be made while an% such suit or claim remains unsettled. In the event an% apparatus or e$uipment or an% part there of furnished b% the Contractor is in such suit or proceedings held to constitute infringement& and its use is enjoined the Contractor shall at his opinion and at his own expense& either procure for the Corporation( the right to continue use of said apparatus& e$uipment or part thereof& replace it with non infringing apparatus or e$uipment or modif% it so it becomes non infringing. 0he Contractor shall indemnif% and keep indemnified the Corporation his successors and assignees for and against an% and all claims& suits& damages& losses& action& demands& costs& charges& ro%alties and expenses arising from or for infringement real or claimed& cop% rights or other protected rights& if an%& of designs& plans& devices& machine drawings or in respect of the material supplied b% the Contractor for the construction or the constructed portion of the project( or for the operation of the constructed portion of the project are found to have infringed an% rights. In the event of an% claim being made or action being brought against the Corporation( in respect of an% of the matters referred in clause above& the Contractor( shall promptl% be notified and he shall at his






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own expense conduct all negotiations and settlement of the same and an% litigation that ma% arise therefrom. 1!.! B<.B TI/E IS T.E ESSENCE O CONTRACT 0he time and date of completion of the works as stipulated b% the Corporation( in the tender specification and accepted b% the Contractor( shall deemed to be the essence of contract(. 0he Contractor( shall so organise his resources and perform his work as to complete it not later than the date agreed. 0he time for completion of the works( contracted for shall be reckoned from the date of the issue of the letter of award( to the Contractor(. Contractor shall submit the detail programme of work in the form of net work strictl% matching the milestone targets( indicated in the art . I ,ection . III of the /id document(. 0he re$uirement of Corporation( or input schedule if an% shall also be incorporated in the net work after detailed discussion and mutual agreement with the Corporation( or 'ngineer( CONTRACT PRICE lease refer art.I& ,ection.III . ,pecial conditions of contract. INS0RANCE Contractor shall arrange to serve and maintain the insurance as ma% be necessar% and for all such amounts to protect the interest of the Corporation against all risks. 0he form and such insurance as defined herein together with the under writer thereof in each case shall be acceptable to the Corporation. Kowever& irrespective of such acceptance& the responsibilit% to maintain insurance at all times during the period of contract shall be that of Contractor(s alone. 0he Contractors failure in this regard shall not relieve him of an% of his contractual responsibilities and obligation. :n% loss or damage to the e$uipment during handling& transportation& storage& erection& testing and commissioning and till such time the plant is taken over b% the Corporation shall be to the account of Contractor. 0he Contractor shall be responsible for preferring of all claims and make good for the damage or loss b% wa% of repair and*or replacement of the damaged portion of the works damaged or lost. 0he transfer of title shall not in an% wa% relieve the Contractor of the above responsibilities during the period of the contract. 0he Contractor shall provide the Corporation with a cop% of all insurance policies and documents taken out b% him in pursuance of the contract( such copies of documents shall be submitted to the Corporation immediatel% after such insurance coverage. 0he Contractor shall also inform the Corporation( in writing at least ;<



1(.! BEB




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da%s in advance regarding& expir%& cancellation and*or change in an% such documents and ensure revalidation * renewal etc.& as ma% be necessar%& well in time. BE.C Contractor shall take up repair or replacement of lost or damaged items without waiting for the settlement of claim b% the insurance authorities. 0he Contractor shall arrange& secure and maintain insurance for the contractor(s scope of suppl% of materials as ma% be necessar% and for all such accounts to protect his interest and the interest of the urchaser against all risks as detailed herein. 0his comprehensive insurance shall cover all t%pes of risks from the place and time of despatch till handing over to K C!& after storage& erection& testing L commissioning. 0he form and the limit of such insurance& as defined herein together with the under.writer thereof in each case shall be acceptable to the urchaser. Kowever& irrespective of such acceptance& the responsibilit% to maintain insurance at all times till the completion of work shall be that of C2904:C024 alone. 0he Contractor(s failure in this regard shall not relieve him of an% of his contractual responsibilities and obligations. 0he C2904:C024 shall as far as possible obtain insurance cover with Indian Insurance Companies and insurance cover shall be valid till such time the e$uipment is finall% accepted and taken over b% the urchaser. Wo%4&e#5' Co&6e#'a$"o# I#'7%a#8e8 0he successful bidder should obtain workmen(s compensation insurance. 0he insurance shall protect the C2904:C024 against all claims applicable under the -orkmen(s Compensation :ct BJHF "+ovt. of India#. 0his polic% shall also cover the C2904:C024 against claims for injur%& disabilit%& disease or death of his or his ,ub.Contractor(s emplo%ees& which for an% reason are not covered under the -orkmen(s Compensation :ct BJHF. 0he liabilities shall not be less than8 -orkmen(s Compensation provisions 'mplo%ee(s !iabilit% 13.! . . :s per statutor%




:s per statutor% provisions

DED0CTION RO/ T.E CONTRACTOR5' PRICE :ll costs& damages or expenses& which Corporation ma% have paid for which under the contract( the Contractor is liable& will be claimed b% the Corporation. :ll such claims will be deducted from an% mone% due or becoming due under law or otherwise the



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clarification*explanation for such deduction made b% the Corporation will be furnished to the Contractor on re$uest. 1).! TER/S O PA1/ENT 0he terms of pa%ment shall be as provided in ,ection M III of the ,pecial conditions of contract.

1*.! BA.B

PA1ING A0T.ORIT1 Invoices shall be addressed to the +eneral 1anager "3inance and :ccounts#(& /angalore or an% other person as authori)ed b% the Corporation in the contract. 0he Invoice will become pa%able after the conditions stipulated in the 0erms of pa%ment are satisfied*fulfilled. DETAILS O CONTRACTOR5S DRAWINGS :s has been detailed in part II of the /id document the contractor shall submit the list of all necessar% drawings with the schedule date of submission for approval within 3! da%s of the issuance of letter of award Contractor shall carr%out all works onl% on the approval of the drawings b% the Corporation or 'ngineer. :n% work performed or material ordered b% the contractor without the specific approval b% the Corporation or 'ngineer shall be at the risk of the Contractor. 0he copies of the drawings to be furnished to the Corporation or 'ngineer for approval and approved drawings in the form of prints * C5(s * pen drives*other storage devices& number of copies etc.& shall be as guided b% the instruction furnished in part II of the /id document. Contractor shall be responsible for an% alteration of the work due to an% discrepancies& errors& omission in the drawings or other particulars supplied b% him& whether such drawings have been approved b% Corporation or 'ngineer( or not provided such discrepancies or errors or omissions be not due to the inaccurate information provided b% the Corporation or 'ngineer to the contractor. PROGRA//E O WORK -ithin one month of the issuance of !etter of award( the Contractor shall furnish the detailed programme of work in the form of net work including design& manufacture& purchase of sub vendor item "including purchase of raw material erection testing and commissioning as detailed in part II of the /id document#. 0his programme shall meet the milestones schedules as indicated in art . I ,ection . III ,pecial


16.! B;.B




1+.! BI.B



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conditions of the contract and shall be got approved b% the Corporation or 'ngineer. BI.E 0he programme net work shall include all the customer input re$uired with its schedule of re$uirement. PACKING9 ORWARDING AND DESPATC. Contractor wherever applicable shall after painting and tropical treatment as re$uired in the contract shall pack and crate all e$uipment in a manner suitable or acceptable b% the Corporation( so as to protect the material from damage and deterioration in transit handling and during storage at site till the erection "other re$uirements shall be as in /id document art II#. Contractor shall notif% the 'ngineer the date of each consignment dispatched& mode of dispatch and expected date of arrival to site. Contractor shall give the complete details of the dispatch information concerning the weight& si)e& and contents in each package including other information the Corporation ma% re$uire. 9o material*e$uipment shall be dispatched without prior dispatch instruction from the Corporation*'ngineer. DESPATC. DOC0/ENT 0he Contractor shall prepare despatch documents in such a wa% as to enable the Corporation for eas% identification of material. 0he packing list shall clearl% indicate whether the dispatch of that particular item is partial or complete. In addition it should indicate& case number& gross and net weight of each case& dimension of each case and complete description of material with identification of each part& with respect to drawings& instruction manual and also furnish the storage procedures. 'ach part shall contain an identification tag securel% fastened to it. 0he description of item indicated in the contract in the packing list and in the invoice should tall%. Invoice must indicate in addition to other regular statement& the clear description of item& its $ualit% and $uantit% as indicated in the list of goods.

1,.! BF.B




1-.! BJ.B







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0he dispatch document and invoice must be furnished in triplicate to the 'ngineer with the copies to K C! site authorities as instructed b% 'ngineer. In case of short shipment "for which the Contractor is responsible# he shall make prompt deliver% of the short.shipped goods at no extra cost to corporation and the contractor shall bear all additional expenditure incurred b% the corporation due to short shipment. 0he external damages*shortages that are glaringl% visible& as a result of rough handling in the transit or due to defective packing will be intimated to the contractor after the receipt of material. Internal damages shortages which cannot be ordinaril% be detected b% superficial visual examination& though due to rough*bad handling in transit or defective packing would be intimated onl% after detailed surve%*inspection of such material. In either case the defective materials should be replaced b% the contractor free of cost at site without waiting for settlement of claim b% the under writers. LIABILIT1 OR ACCIDENT AND DA/AGES =nder the Contract( the Contractor shall be totall% responsible for all loss or damage to the plant until the plant is taken over in accordance with the clause entitled 0aking over(. DELIVER1 PERIOD / CO/PLETION PERIOD 0he period of 3inal completion of all the works including the suppl%& erection& testing& commissioning& trial operation& reliabilit% test& performance guarantee tests& acceptance b% K C!& suppl% of all the maintenance tools& spares as stipulated and detailed in the contract. 0his clause shall be read in conjunction with art.I ,ection.III .





((.! EE.B

PENALT1 OR DELA1 IN CO/PLETION 0he Contractor shall agree that the work shall be commenced and carried out on at such points and in the order of procedure as directed b% the Corporation or the 'ngineer in accordance with the milestone li$uidated damages scheduled in the special conditions& art. I& ,ection. III of specification. It is not incumbent on the Corporation or the 'ngineer to notif% the Contractor& when to begin& to cease or resume the work nor to give earl% notice of rejection of fault% work nor in an% wa% superintend so as to relieve the Contractor of responsibilit% or of an% conse$uence of neglect or carelessness b% him.





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If the Contractor has dela%ed at an% time in the commencement or during the progress of the work b% an% act& dela% or neglect of the Corporation or b% emplo%ees or b% an% other contractor utili)ed b% the Corporation or changes ordered in the work in writing b% the Corporation or the 'ngineer or b% 3orce majeure& the milestone li$uidated damages schedule and the completion period will be extended for a period e$uivalent to the dela% period justified and established b% the contractor with documentar% evidence at its examination and acceptance at the time of occurrence of such special circumstances occurring and not towards the end of the contract period( 0he time stipulated in the contract( for the execution and completion of each milestone& the virtual completion b% making it read% for 0aking over to put it on commercial use and the 3inal Completion of works shall be deemed to be the essence of the contract(. In the event the Contractor fails to execute L complete the milestones as scheduled and deliver the works within the time specified in the contract7 the Contractor shall pa% to the Corporation as b% wa% of milestone li$uidated damages& for not completing each milestones including the 0aking over( as indicated in the milestone li$uidated damages clause in section III art I. 0he Corporation( ma% without prejudice to an% method or recover%& deduct the amount for such damages from an% amount due or which ma% become due to the Contractor. In the event of extension of time being granted b% the Corporation or 'ngineer in writing for milestone completion and deliver% of completed works( as stated in clause EE.C the li$uidated damages clause will appl% after the expir% of such extension clause. If the Contractor( fails in the due performance of his contract b% not completing or dela%ing an% milestone of works and or not delivering the complete works as stipulated in the milestone li$uidated damages clause in art . I ,ection . III of /id document& Contractor( is liable for the penalt% as indicated in the enalt% for milestone and completion of works in /id document art . I ,ection . III. Kowever& the total penalt% is limited to the ceiling indicated. If the Contractor complete and deliver the work within the contract period and in the course execution has dela%ed one or more milestone completion& and in the view of the Corporation the dela% of milestone has not affected the overall performance of the project the Corporation( ma% consider the refund of the whole or part of the milestone penalt% imposed or imposable to the Contractor without an% interest.







SECTION I Page 1+ of 36

CONTRACTOR5S DE A0LT If the Contractor neglect to execute the -orks( with due diligence and expedition or refuse or neglect to compl% with reasonable orders given to him in writing b% Corporation or 'ngineer in connection with the works( or contravene the provision of the contract& the Corporation ma% give notice in writing to the Contractor to make good the failure& neglect or contravention complained of. ,hould the Contractor fail to compl% with the notice within C< da%s from the date of service thereof then in such case& the Corporation shall be at libert% to emplo% other workmen and forthwith execute the part of the works as the contractor has neglected to do or if the Corporation think it fit shall be lawful to the Corporation without prejudice to an% other right Corporation ma% have under the contract to take works( wholl% or under part out of the Contractor hands and reconstruct with an% other person or persons& complete the works or an% part thereof and in that event Corporation shall have free use of all Contractors( e$uipment that ma% have been at the time on the ,ite( in connection with the works without being responsible to the Contractor for the fair wear and tear thereof and to the exclusion of an% right to the Contractor over the same and the owner purchaser shall be entitled to retain and appl% an% balance which otherwise due on the contract b% him to the Contractor& or such part thereof as ma% be necessar% to the pa%ment of the cost of executing the said part of the works( or of completing the works as the case ma% be. If the cost of completing the works or executing the part thereof as aforesaid exceed the balance due to the Contractor7 the Contractor shall pa% such excess. ,uch pa%ment of the excess amount shall be independent of the penalt% for dela% if the Contractor shall have to pa% if the completion of works is dela%ed. In addition of such action b% the Corporation( as aforesaid shall not relieve the Contractor of his liabilit% to pa% li$uidated damages for dela% in completion of works as defined in clause EE.<<. 0he termination of contract under this clause shall not entitle the Contractor to reduce the value of performance bond ",ecurit% deposit# nor the time thereof .0he performance bond shall be valid for the full value of the full period as originall% stipulated in the contract. ORCE /A3E0RE 3orce majeure is herein defined as an% cause which is be%ond the control of the Contractor or the Corporation as the case ma% be which the% could not foreseen or with reasonable amount of diligence could not have been foreseen and which substantiall% affect the performance of contract such as a# 9atural phenomena including but not limited to& floods& earth $uakes and epidemics.


().! EH.B



SECTION I Page 1, of 36

b# :ct of an% +overnment& including but not limited to war declared or undeclared. c# 4iot and Civil commotion. d# 0ransportation dela% due to above force majeure clause under a& b and c onl%. rovided either part% shall within BA"fifteen# da%s of occurrence of such cause& notif% the other in writing of such causes. EH.E 0he Contractor or the Corporation shall not be liable for dela%s in performing his obligation resulting from an% force majeure cause as referred to and*or defined above. 0he date of completion will be subject to hereinafter provided be extended b% a reasonable time without an% price escalation of an% sort even though such cause ma% occur after the Contractor performance of his obligation has been dela%ed for other causes. If the performance in whole or part b% the Contractor or an% obligation under the contract is prevented or dela%ed b% 3orce 1ajeure condition for a period exceeding BE< da%s. 0he Corporation( ma% at its option& terminate the contract b% notice in writing. DELA1S B1 :CORPORATION; OR .IS A0T.ORISED AGENTS If in the opinion of the Corporation or the 'ngineer the work or the milestone is dela%ed b% a# b% reason of proceedings taken or threatened b% disputes with adjoining or neighboring owners or public authorities or b# b% the works or dela%s of other contractors or tradesmen engaged b% the Corporation or 'ngineer or c# b% reason of 'ngineers instruction or d# in conse$uence of Contractor not having received in due time& necessar% instructions from the Corporation or 'ngineer for which he shall have specificall% applied in writing or e# b% reason of non pa%ment of running bills within a period as agreed in the contract. 0he Corporation or 'ngineer shall extend the completion of contract and or the milestone date b% the period e$uivalent to the dela%ed period without price escalation of an% sort. 0he Contractor shall nevertheless endeavor to prevent dela% and shall do all that ma% be reasonabl% re$uired to the satisfaction of the Corporation or the engineer to proceed with the work. TER/INATION O CONTRACT 0he <Corporation( ma% terminate the contract after giving seven da%s notice if an% of the following occur.


(*.! EA.B

(6.! E;.B



SECTION I Page 1- of 36

a# 0he Contractor "being an individual or a firm# commits an% act of insolvenc%. b# ,hall be adjudged an insolvent or shall make an assignment or composition for the greater part in number of amount of his creditors or shall enter into a deed of assignment with his creditors. c# /eing an incorporated compan% shall have an order made against him or pass an effective resolution for winding up either compulsoril% or subject to the supervision of the court or voluntaril% or if the official assignee of the Contractor shall repudiate the contract or if the official assignee or the li$uidator in an% such winding up shall be unable& within seven da%s"I# after the notice to him re$uiring him to do so to show to the reasonable satisfaction of the Corporation or the 'ngineer that he is able to carr%out and fulfill the contract and if re$uired b% the Corporation or the 'ngineer to give securit% thereof. d# If the Contractor"whether an individual firm or incorporated compan%# shall suffer execution to be issued e# If the Contractor shall assign or sublet the contract( without obtaining the consent in writing of the Corporation or if the Contractor shall charge or encumber this( contract( for an% pa%ment due or which ma% become due to the Contractor there under. f# If the 'ngineer( shall certif% in writing to the Corporation that in his opinion& the Contractor "i# "ii# has abandoned the contract or has failed to commence the work( or has without an% lawful excuse under these condition suspend the progress of the works( for seven "I# da%s after receiving from the 'ngineer written notice to proceed.

"iii# has failed to proceed with the works with due diligence and failed to make such due progress as would enable the works to be completed within the time agreed upon or "iv# has failed to remove material from site or to pull down and replace works within seven"I# da%s after receiving from the Corporation or the 'ngineer written notice that the said




SECTION I Page (! of 36

material or work were condemned 'ngineer under these condition or "v#

and rejected b% the

has neglected or failed persistentl% to observe and perform all or an% of the act& matters or things b% this contract to be observed and performed b% the Contractor for seven"I# da%s after written notice have been given to the Contractor re$uiring the Contractor to observe and perform the same.has& to detriment of good workmanship or in defiance of the Corporation or the 'ngineer(s instruction to the contrar%& sub contracted part of the contract.


0hen in an% of the said causes& the Corporation ma% not& withstanding an% previous waiver after giving seven "I# da%s notice in writing to the Contractor determine the contract but without thereb% affecting the obligation and liabilities of the Contractor7 the whole of which shall continue to be in force as full% as if the contract( had not so been so determined and as if the works( subse$uentl% executed has been executed b% or on behalf of the Contractor. :nd further the Corporation or its agents or its emplo%ees*servants ma% enter upon and take possession of the works and all plants& tools& scaffoldings& sheds& machiner%& power source& utensils and other materials l%ing upon premises or the adjoining lands or roads and use them as its own propert% or ma% emplo% the same b% means of his own servants and workmen& engaged b% him to carr%on and complete the works( and the Contractor shall not in an% wa% interrupt or do an% thing to prevent or hinder others emplo%ed for completing and finishing or using the material and plant for the works(. -hen the works( shall be completed or as soon thereafter as convenient& the Corporation or the 'ngineer shall give a notice in writing to the Contractor to remove his surplus material and plant and should the Contractor fail to do so within a period of fourteen "BH# da%s after issue of such notice& the Corporation shall dispose them b% suitable means and shall give credit to the Contractor for the amount realised. 0he Corporation or the 'ngineer shall thereafter ascertain and certif% in writing under his hand what "if an% thing# shall be due or pa%able to b% the Contractor& after considering the realised value of the said plant and materials so taken possession of b% the Corporation might have incurred in getting the works( so completed and the progress or an% other pa%ment which ma% be due but not paid to the Contractor. 0he amount so certified shall be paid b% the Corporation to the Contractor or b% the Contractor to the Corporation as the case ma% be and the Certificate of the 'ngineer shall be final and conclusive.





SECTION I Page (1 of 36

2n termination of the contract( for an% cause the Contractor shall see to the orderl% suspension and termination of operation with due consideration to the interest of the Corporation with respect to completion& safeguarding or storing of e$uipment produced for the performance of the ?contract@ and the salvage and resale thereof. Kas failed to perform an% other obligation under contract Kas failed to rectif%*made good his failures within a period of C< da%s. NO WAIVER O RIG.TS 9either the inspection b% the Corporation or the 'ngineer( or an% of their officials& emplo%ees or agents nor an% order b% the Corporation or the 'ngineer( for pa%ment of mone% or an% pa%ment for or acceptance of the whole or an% part of the works b% the Corporation or the 'ngineer nor an% extension nor an% possession taken b% the Corporation shall operate as a waiver of an% provision of the contract or of an% power herein reserved to the Corporation or an% right to damages herein provided& nor shall an% waiver of an% breach in the contract( be held to be a waiver of an% other or subse$uent breach. CERTI ICATE NOT TO A ECT T.E RIG.T O :CORPORATION; AND LIABILIT1 O <CONTRACTOR5 9o interim pa%ment certificate of the Corporation( or the 'ngineer(& nor an% sum paid on account b% the Corporation nor an% extension of time for execution of the works( granted b% the Corporation or the 'ngineer shall affect or prejudice the right of the Corporation( against the Contractor or relieve the Contractor of his obligation for the due performance of the contract( or be interpreted as approval of the works( done or of the e$uipment furnished and no certificate shall create liabilit% in the Corporation( to pa% for alteration& amendment& variation or additional works( not ordered in writing b% the Corporation or the engineer or discharge the liabilit% of the contractor( for the pa%ment of damages whether due& ascertained or certified or not or an% sum against the pa%ment of which he is bound to indemnif% the Corporation nor shall an% such certificate nor the acceptance b% him of an% sum paid on account or otherwise affect or prejudice the right of the Corporation against the Contractor. CO/PLETION O CONTRACT =nless otherwise terminated under the provision of an% other relevant clause this contract shall be deemed to have been completed at the expiration of the +uarantee period( as provided for under the clause entitled +uarantee

E;.A E;.; (+.!





SECTION I Page (( of 36

EN ORCE/ENT O TER/ 0he failure of either part% to enforce at an% time an% of the provisions of this contract( or an% rights in respect thereto or to exercise an% option herein provided shall in no wa% be construed to be a waiver of such provisions& rights or options or in an% wa% to affect the validit% of the contract. 0he exercise b% either part% of an% of its rights herein shall not preclude or prejudice either part% from exercising the same or an% other right if an% have hereunder. :CORPORATION; OR ENGINEERS DECISION In respect of all matters which are left to the decision of the Corporation or the 'ngineer including the granting or withholding of the certificates& the 'ngineer shall if re$uired to do so b% the Contractor give in writing a decision thereon. In all matters of difference of opinion in respect of contract the decision of corporation shall be final and binding on the Contractor. If in the opinion of the Contractor a decision made b% 'ngineer is not in accordance with the meaning and intent of the contract( the Contractor ma% file with the Corporation within fifteen "BA# da%s after receipt of the decision a written objection to the decision. 3ailure to file an objection within the allotted time will be considered as acceptance of the Contractor of the 'ngineer(s decision and the decision shall become final and binding. 2n receipt of an% objection from the contractor on the decision of 'ngineer the Corporation will review and the decision of Corporation shall be final and binding on the contractor. CO=OPERATION WIT. OT.ER :CONTRACTORS;. 0he Contractor shall agree to co.operate with the Corporation(s other Contractor(s with regard to design& 'ngineering and construction work fronts etc. In case of difference or conflict with other Contractor in regard then respective obligation which cannot be settled b% mutual agreement& the matter shall be referred to 'ngineer( whose decision will be final and binding on all parties concerned. TRAINING O :CORPORATION5S; PERSONNEL 0he Contractor shall undertake to train free of cost& 'ngineering personnel selected and sent b% the Corporation at the works of the Contractor in accordance with the stipulation in the bid document.

31.! CB.B




3).! CH.B

S0SPENSION O WORKS 0he Corporation reserves the right to suspend and reinstate execution of the whole or an% part of the works( without invalidating the provision of the contract(. 2rders for suspension or reinvestment



SECTION I Page (3 of 36

of the works will be issued b% the Corporation( to the Contractor in writing. 0he time for completion of the works will be extended for a period e$ual to duration of the suspension. CH.E 0he Corporation shall not be responsible for an% liabilities if suspension or dela% is due to some default on the part of the Contractor or his sub.vendor* subcontractors. POWER TO VAR1 OR O/IT WORKS 9o alteration& amendments& omission& additions or variation of the works "herein after refereed to as variations# under the contract as detailed in the contract( documents shall be made unless directed in writing b% the 'ngineer but the Corporation or 'ngineer shall have full power subject to the provision herein after contained from time to time during the execution of Contract to make such variation without prejudice to contract( 0he Contractor shall carr%out such variation and be bound b% the same condition as though the said variation occurred in the contract documents. If an% suggested variation would be in the opinion of the Contractor& if carried out prevent him from fulfilling an% of his obligation or guarantees under the contract( he shall notif% the 'ngineer thereof in writing and the or the 'ngineer shall decide forthwith whether or not the same shall be carried out and if the engineer confirm his instruction& the Contractor obligation and guarantees shall be modified to such an extent as ma% be mutuall% agreed. :n% agreed difference in cost occasioned b% an% such variation shall be added to or deducted from the contract price as the case ma% be. In the event of Corporation or the 'ngineer re$uiring an% variation such reasonable and prompt notice shall be given to the Contractor to enable him to work his arrangement. In an% case in which the Contractor has received instructions from Corporation or the 'ngineer as to the re$uirement of carr%ing out the altered or additional substitutes work the addition or deletion of the scope of work will be governed b% the unit price indicated in the price schedule. 0he Contractor shall carr%out such variation work to the extent that would result in the total cost variation up to BAG of the contract price(. G0ARANTEE 0he Contractor shall guarantee that the e$uipment will be new and in accordance with the contract document and be free from defects for

3*.! CA.B




36.! C;.B



SECTION I Page () of 36

a period of C; months from the date of satisfactor% commissioning& or as specified in ,ection.III. 0he Contractor liabilit% shall be limited to the replacement of an% defective parts in the e$uipment of his own manufacture or those of his sub vendors*sub contractors& under normal use and arising out from fault% design& material and or workman ship& provided alwa%s that such defective parts are not repairable at the site and are not in the meantime essential in the Commercial use of the plant. In case the defective parts in the e$uipment of his own manufacture or through his sub vendor*sub contractor under normal use arising out of fault% design& material or workmanship prevents Commercial use of the plant the contractor liabilit% shall be to make good the conse$uential loss suffered b% the Corporation in addition to the replacement of defective parts. ,uch replaced defective parts shall be returned to the Contractor unless otherwise arranged. 9o repair or replacement shall normall% be carried out b% the Corporation( or the ('ngineer( when the plant is under commissioning under the supervision of contractors supervisor% 'ngineer or during +uarantee period( Kowever& the maximum limit of compensation of the conse$uential loss is limited to BAG of the contract price. C;.E If it becomes necessar% for the Contractor to replace or renew an% defective portion of the plant under this clause& the provision of this clause shall appl% to the portion of the plant so replaced or renewed until the expiration of C; months from the date of such replacement or renewal. If an% defect not remedied within a reasonable time& the Corporation or the 'ngineer ma% proceed to do the work at the contractor(s( risk and cost but without prejudice to an% other rights which the Corporation ma% have against the( contracts( in respect of such defects. In the event of an emergenc% where in the judgement of Corporation or the 'ngineer( dela% would cause serious loss or damage& repairs or replacement or adjustment ma% be made b% the Corporation or the 'ngineer or a third part% chosen b% Corporation or the 'ngineer without advance notice to the Contractor and the cost of such works shall be paid b% the Contractor. In the event such action is taken b% the Corporation or the 'ngineer& the Contractor will be notified promptl% and he shall assist wherever possible in making necessar% correction. 0his shall not extinguish the Contractor(s liabilit% under the terms and conditions of the contract. 0he repaired or new parts will be furnished and erected free of cost at site b% the Contractor. If an% repair is carried out on his behalf at the site& Contractor shall bear the cost of such repair. 0he cost of an% special or general overhaul rendered necessar% during the guarantee period due to defects in the plant or defective works






SECTION I Page (* of 36

carried out b% the contractor( the same shall be borne b% the contractor( C;.; 0he acceptance of the e$uipment b% the Corporation( or the 'ngineer( shall in no wa% relieve the Contractor( of his obligation under this clause. In the case of those defective parts which are not repairable at site but are essential for the Commercial use of the e$uipment the contractor and the Corporation( or 'ngineer( shall mutuall% agree to a programme of replacement or renewal which will minimi)e interruption to the maximum extent in the operation of the e$uipment. :t the end of the guarantee period( the contractor responsibilit% ceases except for latent defects. 5uring the guarantee period( contractor shall provide if re$uired b% the Corporation( the services of his engineers to advice the Corporation( for such periods and such number as ma% be mutuall% agreed upon. 0he contractor( engineer shall train (Corporation( operation personnel& act as a liaison with Corporation( to order and obtain spare parts& generall% monitor operation& maintenance and trouble shooting and supervising the repair works. 0he provision of this clause including the cost of shipment& transportation& taxes and other incidental if an% shall be implemented at * Contractor(s expense. 0he Contractor shall prove the guaranteed performance of the e$uipment in the performance test( as per clause AA.<< (0ests(. ,hould the contractor unable to do so in the first instance he shall be given an opportunit% to rectif% the defects and the performance test shall be repeated within the specified time. ,hould the performance of the e$uipment be still not be up to guarantees the Corporation( shall recover as a penalt% from the Contractor( the amount as specified in art II of the ?/id document( for the performance deficiencies. 0he Corporation also reserves the right to reject the e$uipment should the performance deficiencies be be%ond the margin specified in the art II of the bid document. REPLACE/ENT O DE ECTIVE/ DA/AGED PARTS AND /ATERIALS If in the progress of works( the Corporation or the @'ngineer shall decide and inform in writing to the Contractor that the Contractor has manufactured an% plant or part of the plant unsound or imperfect or






3+.! CI.B



SECTION I Page (6 of 36

has furnished the plant inferior than the $ualit% specified& the Contractor on receiving details of such defects or deficiencies shall at his own expense with in seven "I# da%s of his receiving the notice or other wise with in such time as ma% be reasonabl% necessar% and accepted b% the Corporation for making it good& proceed to alter& reconstruct or remove such work and furnish fresh e$uipment up to the standards of the specifications. In case the Contractor fails to do so the Corporation or the engineer ma% on giving the Contractor& seven da%s notice in writing of his intention to do so and proceed to remove& the portion of the works so complained of and at the cost of the Contractor& perform all such work or furnish all such e$uipment provided that nothing in the clause shall be deemed to deprive the Corporation or affect an% right under the contract( which the @Corporation ma% otherwise have in respect of such defects and deficiencies. CI.E 0he Contractor(s@ full and extreme liabilit% under this clause shall be satisfied b% the pa%ments to the Corporation of the extra cost of such replacements procured& including erection as provided for in the contract( such extra cost being the ascertained difference between the price paid b% the Corporation for such replacements and contract price portion for such defective plants and repa%ments of an% sum paid b% the Corporation to the Contractor in respect of such defective plant& the contractor(s extreme liabilit% under this clause shall be limited to the repa%ment of all sums paid b% the Corporation under the contract for such defective plant. If the material*e$uipment or an% portion thereof is damaged or lost during transit or storage or erection or commissioning the contractor shall immediatel% arrange to suppl% these material without waiting for insurance or an% other claims without unnecessar% dela% in putting of the e$uipment on commercial use(. DE ENCE O S0ITS If an% action in court is brought against the Corporation( or the 'ngineer( an officer or agent of the Corporation( for the failure& omission or neglect on the part of the Contractor( to perform an% acts& matters& covenants of things under the contract( or for damage of injur% caused b% the alleged omission or negligence on the part of the Contractor(& his agents& representatives or his sub.vendor*sub contractors or in connection with an% claim based on lawful demands of sub.vendors* workmen& suppliers or emplo%ees& the contractor( shall in all such cases indemnif% and keep the corporation( and the 'ngineer and *or his representative harmless from all losses& damages& expenses or decrees arising out of such action.


3,.! CF.B



SECTION I Page (+ of 36

0he Corporation( shall have full power and right at his discretion to defend or compromise an% suit or pa% claim or demand brought or made against him as aforesaid whether pending or threatened& as he ma% consider necessar% or desirable and shall be entitled to recover from the Contractor( all sums of mone% including the amount of damages and compensation and all legal costs& charges and expenses in connection with an% compromise or award which shall not be called into $uestion b% the contractor( and shall be final and binding upon him. LI/ITATIONS O LIABILITES 0he release of the contractor( from all his liabilities under the contract( shall be made onl% at the end of the +uarantee period( as detailed in Clause C;.< above or till such time of the contractual liabilities and responsibilities of the contractor( shall prevail. PER/ITS AND LICENCE :ll costs incurred in obtaining permits& licenses& approvals& necessar% for drawings and specifications or for manufacture& import& export& install& testing and operation the e$uipment covered b% the contract(& shall be met for b% the Contractor(. PROGRESS REPORTS AND P.OTOGRAP. 0he re$uirement shall be as per specification under title rogress ,chedule and 4eports enclosed in art I of /id document. SPARES 0he re$uirements shall be as per specification under ,pare parts enclosed in the bid document. SECREC1 0he 0echnical information& drawings& specifications and other related documents forming part of the en$uir% or contract( are propert% of the Corporation( and shall not be used for an% other purpose& except for execution of the contract. :ll rights& including rights in the event of grant of a patent and registration of designs are reserved. 0he technical information. 5rawings& specification& records and other documents shall not be copied& transcribed& traced or reproduced in an% other form or otherwise in whole and *or duplicated& modified& divulged and *or disclosed to a third part% nor misused in an% other form whatsoever& without the Corporation( previous consent in writing& except to the extent re$uired for the execution of this contract( E>0IP/ENT PER OR/ANCE G0ARANTEE









SECTION I Page (, of 36

0he performance guarantees of the e$uipment under the scope contract( are detailed separatel% in the specification(. 0hese guarantees shall supplement the general performance guarantee provisions covered under clause C;.<< enalt% for not meeting performance guarantees shall be assessed and recovered from the contractor as detailed in the specification( ENGINEERING DATA 0he furnishing of 'ngineering data b% the Contractor( shall be in accordance with the schedule as specified in the data sheets of /id document art II. 0he review of these data b% the 'ngineer( will cover onl% general conformance of the data to the specifications and documents& interfaces with the e$uipment provided under ,pecification(& external connections and of the dimensions which might effect plant la%out. 0his review b% the 'ngineer ma% not indicate thorough review of all dimensions& $uantities and details of the e$uipment materials& an% devices or items indicated or the accurac% of the information submitted. 0his review and * or approval b% the 'ngineer( shall not be construed b% the Contractor( as limiting an% of his responsibilities and liabilities for mistakes and deviations from the re$uirements& specified under these specifications and documents. :ll 'ngineering data submitted b% the Corporation( after final process including review and approval b% 'ngineer( shall form part of the contract and the entire -orks covered under these specifications shall be performed in strict conformit% unless otherwise expressl% re$uested b% the 'ngineer( in writing. DRAWINGS ? INSTR0CTION /AN0AL 0he re$uirement of drawings shall be as per the 5istribution ,chedule in the art.I of /id document. In addition& the Contractor( shall furnish two sets of all Certified e$uipment drawings in the form of C5*pen drives in addition to full si)e prints. /ISTAKES IN DRAWINGS 0he contractor shall be responsible for an% discrepancies& errors or omissions in the drawings and other particulars supplied b% him& whether such drawings and particulars have been approved b% the 'ngineer( or not provided that such discrepancies& errors& or omissions be not due to inaccurate information or particulars furnished in writing to the Contractor( b% the Corporation( or the 'ngineer(. 0he corporation shall be responsible for drawings and information supplied in writing b% the Corporation( or the 'ngineer( and for the details of


)*.! HA.B


)6.! H;.B





SECTION I Page (- of 36

special work specified b% either of them. 0he Corporation( shall pa% for an% alterations of the suppl% necessitated b% reason of inaccurate information so supplied to the Contractor( ),.! IRST ILL O OILS9 L0BRICANTS ETC.9 -herever applicable the first fill of oils& lubricants and essential chemicals& etc.& which will be re$uired to commission the e$uipment covered under the scope of the specification( shall be furnished b% the Contractor( unless specificall% excluded under the exclusions in these specifications and documents. 0he Contractor shall also suppl% an% make up and replacement of all the lubricants and oils that ma% be re$uired till the unit is taken over b% the Corporation(


/AN0 ACT0RING SC.ED0LE 0he Contractor( shall submit to the 'ngineer( his manufacture and deliver% schedules for all e$uipment within thirt% "C<# da%s from the date of acceptance of the !etter of award. ,uch schedules shall be in line with the detailed net work for all phases of the work of the Contractor. RE ERENCE STANDARDS 0he Codes& and *or standards referred to in the ,pecification( shall govern& in all the cases wherever such references are made. In case of conflict between such codes and * or standards and the specifications& the later shall govern. ,uch codes and * or standards referred to shall mean the latest revisions& amendments*changes adopted and published b% the relevant agencies. In case of an% further conflict in the matter& the same shall be refereed to the 'ngineer( whose decision shall be final and binding. 2ther Internationall% acceptable standards& which ensure e$ual or higher performance than those specified& shall also be accepted. DESIGN I/PROVE/ENTS 0he Corporation( or the 'ngineer or the Contractor( ma% propose changes in the ,pecification( of the e$uipment or $ualit% thereof and if the parties agree upon an% such changes the specifications( shall be modified accordingl%. >0ALIT1 ASS0RANCE PROGRA//E 0o ensure that the e$uipment and services under the scope of this contract( whether manufactured or performed within the Contractor(s( works or at his sub contractors premises or at the Corporation( site or an% place of work are in accordance with the

*!.! A<.B



*(.! AE.B



SECTION I Page 3! of 36

specification(& the contractor( shall adopt suitable $ualit% assurance programme to control such activities at all points& necessar%. ,uch programme shall be outlined b% the contractor and shall be finall% accepted b% the 'ngineer( after discussions. : >ualit% :ssurance rogramme of the contractor( shall generall% cover the following. a# b# c# Kis organisation structure for the management and implementation of the proposed $ualit% assurance programme. 5ocumentation control s%stem 0he procedure for purchase of materials& parts& components and selection of service including vendor anal%sis source inspection& incoming raw.material inspection& verification of materials purchased etc.& ,%stem for shop manufacturing and site erection controls including process controls and fabrication and assembl% controls. Control of non.conforming items and s%stems for corrective actions. Inspection and test procedure both for manufacture and field activities. Control of calibration and testing of measuring and testing e$uipment ,%stem for indication and appraisal of inspection status. ,%stem for $ualit% audits ,%stem for handling storage and deliver% and ,%stem for maintenance of records.

d# e# f# g# h# i# j# k# AE.E

0he /idder shall furnish the detailed stage wise $ualit% plan for each individual component of the e$uipment under the scope of work from raw material to final testing. ENGINEER5' S0PERVISION 0he work shall be performed under the direction and supervision of the 'ngineer(. 0he scope of the duties of the 'ngineer pursuant to the contract( will include but not limited to the following7 a# Interpretation of all the terms and conditions of these documents and specifications.

*3.! AC.B



SECTION I Page 31 of 36

4eview and interpretation of all the Contractor(s drawings& engineering data etc.& -itness or authorise his representative to witness tests and trails either at the manufacture(s works or at ,ite( or at an% place where work is performed under the contract( Inspect& accept or reject an% e$uipment& material and work under the contract( Issue certificate or acceptance and*or progressive pa%ment and final pa%ment certificates 4eview and suggest modifications and improvements in completion schedule from time to time and ,upervise the $ualit% assurance programme implementation at all stages of the works(







INSPECTION9 TESTING AND INSPECTION CERTI ICATES 0he re$uirement shall be as specified in art II of /id document. TESTS 0est shall be carried out as stipulated in the bid document part II.


*6.! A;.B

PRESERVATIVE S.OP COATING. :ll exposed metallic surfaces subject to corrosion shall be protected b% shop application of suitable coatings. :ll surfaces which will not be easil% accessible after the shop assembl%& shall before hand be treated and protected for the life of the e$uipment. :ll surfaces shall be thoroughl% cleaned of all mill scale& oxide and other coatings and prepared in the shop. 0he surfaces that are to be finish painted after installation or re$uire corrosion protection until installation& shall be shop painted with at least two coats of primer. 'lectrical e$uipment shall be shop finished with one or more coats of primer and two coats shall be as per manufacturers ,tandards to be selected and specified b% the 'ngineer( at a later date. ,hop primer for all steel surfaces which will be exposed to operating temperature below JA2C shall be selected b% the (Contractor& after obtaining the specific approval of the 'ngineer( regarding $ualit% of primer proposed to be applied. ,pecial high temperature primer shall




SECTION I Page 3( of 36

beused on surfaces exposed to temperatures higher than JA2C and such primer shall also be subject to the approval of the 'ngineer(. A;.C :ll other steel surfaces& which are not to be painted& shall be coated with suitable dust preventive compound subject to the approval of the 'ngineer(. PROTECTIVE G0ARDS ,uitable guards shall be provided for protection of personnel on all exposed rotating and *or moving machine parts. :ll such guards with necessar% spares and accessories shall be designed for eas% installation and removal for maintenance purposes. DESIGN CO ORDINATION 0he contractor shall be responsible for selection and design of appropriate e$uipment to provide the best co.ordinated performance of the entire s%stem. 0he basic design re$uirements are detailed out in the specification(. 0he design of various components& sub assemblies and assemblies shall be done& so as to facilitate eas% field assembl% and maintenance. :ll the rotating components shall be so selected that the natural fre$uenc% of the complete unit is not critical at or close to the operating range of the unit. TOOLS AND TACKLES 0he Contractor shall suppl% with the e$uipment one complete set of all.special tools and tackles for the erection& assembl%& dis.assembl% and maintenance of the e$uipment. Kowever& these tools and tackles shall be separatel% packed and brought on to( site . 0he other re$uirements shall be as per specification of /id document. TAKING OVER =pon successful completion of Commissioning& conducting all the test to be performed& operation and maintenance period of C; months of the plant from the date of commissioning the Corporation( shall issue to the contractor a 0aking over( certificate as a proof of the final acceptance of the e$uipment. 0he completion of commissioning of e$uipment and conducting of all tests shall include but not limited to the satisfactor% completion of 0rial operation(& reliabilit% operation and performance guarantee tests( as detailed in the bid document and also the successful demonstration of the working of all auxiliar% e$uipment*plants supplied under the scope of work to the satisfaction of the Corporation(s 'ngineer. ,uch certificate shall not unreasonabl% be withheld nor will the corporation( dela% the issuance thereof& on account of minor omission or defects which do not affect the( commercial use( and or cause an% serious risk to the e$uipment. Kowever& besides the specified conditions governing the period under







SECTION I Page 33 of 36

guarantee& additional conditions ma% be imposed and agreed to between the corporation( and the contractor( depending on the outcome of the( performance tests(. ,uch certificates shall not relieve the contractor( of an% of his obligations which otherwise survived b% the +eneral conditions of the contract( after the issuance of such certificates.

61.! ;B.B

CORRESPONDENCE :ll correspondence from the contractor to the Corporation( shall be as per distribution schedule in the /id document. art.I. :n% notice to the contractor under the terms of the Contract( shall be served b% registered mail or b% hand at the Contractor(s principal place of business. :n% notice to the Corporation shall be served b% the Contractor(s principal office in the same manner. LIABILIT1 OR ACCIDENTS AND DA/AGE In the case of deliver%( contract& the contractor( shall be entirel% responsible for all loss& damage or depreciation to the plant until the plant has been delivered at the site as defined in Clause ;<.< 0he Contractor shall be entirel% responsible for all loss& damage or depreciation to the plant until the plant is taken over( in accordance with the clause ;<.< 0he Contractor( shall during the progress of the work& properl% cover up and protect the plant from injur% b% exposure to the weather& and shall take ever% reasonable& proper& timel% and useful precaution against accident or injur% to the same from an% cause and shall be and remain answerable and liable for all accidents or injuries thereto which until the same be& or be deemed to be taken over under clause ;<.< ma% arise or be occasioned b% the acts or omissions of the contractor( or his workmen or and all losses and damages to the plant arising from such accidents or injuries as aforesaid shall be made good in the most complete and substantial manner b% and at the sole cost of the contractor and the reasonable satisfaction of the 'ngineer. =ntil plant shall be or deemed to be taken over as aforesaid& the contractor( shall also be liable for and shall be deemed to have indemnified the purchaser in respect of all damage or injur% to an% person or to an% propert% of the Corporation( or the other



6(.! ;E.B







SECTION I Page 3) of 36

occasioned b% the negligence of the Contractor or his workmen or sub. contractors or b% defective design& work or material& but not otherwise. ;E.A 0he Contractor( shall be deemed to have indemnified and saved harmless to the Corporation against all& demands& costs or expenses arising in connection with injuries suffered prior to the date when the plant shall have been taken over under clause ;<.< herein b% person emplo%ed b% the contractor or his on the works whether under the general law or under the -orkman(s compensation :ct BJEC& or an% other statute in force at the date of the contract dealing with the $uestion of the liabilit% of the emplo%ers for injuries suffered b% the emplo%ees and to have taken steps properl% to insure against an% claims there under. 2n the occurrence of an accident which results in the death of an% of the workmen emplo%ed b% the Contractor( or which is so serious as to be likel% to result in the death of an% such workmen& the contractor( shall& within EH hours of the happening of such accident intimate in writing to the 'ngineer& the fact of such accident. 0he contractor( shall indemnif% Corporation& against all loss or damage sustained b% Corporation resulting directl% or indirectl% from his failure to give intimation in the manner aforesaid including the penalties or fines if an% pa%able b% the Corporation(s as a conse$uence of K C!(s failure to give notice under the -orkmen(s Compensation :ct& or otherwise& to conform to the provision of the said :ct in regard to such accident. In the event of an% claim being made or action brought against the Corporation( involving the contractor( and arising out of the matters referred to and in respect of which the contractor( is liable under this clause& the contractor( shall be immediatel% notified thereof7 and he shall& with the assistance if he so re$uires of the purchaser(& but at the sole expense of the Contractor( conduct all negotiations for the settlement of the same or of an% litigation that ma% arise therefrom. In such case& the corporation shall& at the expense of the contractor& afford all available assistance for an% such purpose. In the event of an accident in respect of which compensation ma% become pa%able under the -orkmen(s Compensation :ct 6III of BJEC& whether b% the contractor or b% the +overnment as principal& it shall be lawful for the 'ngineer( to retain out of mone%s due and pa%able to the contractor( such sum or sums of mone% as ma%& in the opinion of the 'ngineer be sufficient to meet such liabilit%. 0he opinion of the 'ngineer shall be final in regard to all matters arising under this clause. CONSTR0CTION O CONTRACT AND APPLICABLE LAW







SECTION I Page 3* of 36

0he contract shall in respects be construed and operate as a contract as defined in Indian Contract :ct BFIE. Contract shall be interpreted in accordance with the laws in India.


NOTICES :n% notice given b% one part% to the other pursuant to this Contract shall be sent in writing. -ritten notice shall be deemed to have been dul% served if delivered to the individual or to a member of the firm or an officer of the contractor( of the Corporation( for whom it is intended or if delivered at& or sent b% mail& telegraph or cable to the last business address of the said Contractor or Corporation( at the address indicated at the beginning of the contract. : notice shall be effective when delivered or on the notices effective date& whichever is later.

6*.! ;A.B

RE3ECTION O DE ECTIVE PLANT If the completed plant& or an% portion thereof is found defective& or fails to fulfill the re$uirement of the contract& the 'ngineer shall give the Contractor( notice setting forth such defects of failure& and the contractor( shall forthwith make the defective plant good& or alter the same to make it compl% with the re$uirement of the contract. ,hould he fail to do so within a reasonable time& the Corporation ma% reject and replace at the cost of the Contractor(& the whole or an% portion of the plant& as the case ma% be which is defective or fails to fulfill the re$uirements of the contract. ,uch replacement shall be carried out b% the Corporation within a reasonable time and at a reasonable price& and where reasonabl% possible to the same specification and under competitive conditions. 0he Contractor(s full and extreme liabilit% under this clause shall be satisfied b% the pa%ment to the Corporation of the extra cost& if an%& of such replacement delivered and erected as provided for in the original contract& ,uch extra cost being the ascertained difference between the price paid b% the Corporation. =nder the provisions above mentioned& for such replacement and the contract price for the plant so replaced and the repa%ment of an% sum paid b% the Corporation to the Contractor in respect of such defective plant. ,hould the Corporation not so replace the rejected plant within a reasonable time& the Contractor(s full and extreme liabilit% under this clause shall be satisfied b% the repa%ment of all the mone% paid b% the Corporation to him in respect of such plant. In the event of such rejection& the Corporation shall be entitled to the use of the plant in a reasonable and proper manner for a time reasonabl% sufficient to enable him to obtain other replacement plant.





SECTION I Page 36 of 36

5uring the period the rejected plant is used commerciall% the Contractor shall not be entitled to an% pa%ment for such use. 66.! ;;.B OPERATION AND /AINTENANCE O T.E E>0IP/ENTS 0he 2peration and maintenance of all the e$uipments of the plant shall be carried out b% the contractor for a period of three %ears from the date of commissioning and acceptance of tests b% K C!. 5uring this period the contracto& shall maintain the e$uipments including the suppl% and replacement of all necessar% spares& lubricating oil& chemicals and consumables etc. which ma% be re$uired to keep the e$uipment in proper running condition.