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Deputy Registrar


Request for clarification of Clause 60.13 of the contract executed

between Project Director QWSEIP and NCL

Kindly refer our earlier letter No QWSEIP/PD/3957-67 dated April 29, 2014,(AnnexureA) vide which clarification regarding subject matter was sought under clause 15.3(3.a.3)
stating, Whether the technical staff means all the engineers, supervisors, skill & unskill staff deployed at the project site or it also covers other non-technical staff
engaged by NCL for administration, account, store and transport duties. In
response to our said letter PEC vide their letter No PEC/DR-II/QWSEIP/2014 dated June
9, 2014, (Annexure-B) replied that As per your contract agreement only technical
staff which has worked at site is to be paid. This includes surveyors, laboratory
technicians, quantity surveyors, material inspectors, site engineers and project
manager only. It does not include skilled and unskilled workers as they are part and
parcel of item rates.
Subsequently NCL vide their letter No NCL/ISL/MD/2014/90 dated June 25, 2014
(Annexure-C) referred back the matter to PEC, asking whether supporting staff deployed
at project office is payable under the provisions of the contract or not. In response to
which PEC vide their letter No PEC/DR-II/QWSEIP/2014 dated October 16, 2014
(Annexure-D) stated that as per contract agreement, 10% premium will be
applicable in case of profit and Head office overheads w.ef. from 1 st January 2011.
further the contract clause 3(b)(2) stipulates that on site, no premium will be
allowed on operating cost of contractors plant, machinery and vehicle including
rental thereof if any. Here the term operating cost means site overheads which will
also include salary /benefits for allied admin/ finance staff on site.
In presence of above quoted two opinions, which are contradictory to each other, we were
not in position to release the payment and the matter was sent to consultants M/S
NESPAK, they vide their letter No 2592/QTA/MH/01/7431 dated November 13, 2014
(Annexure-E) stated that ruling given by PEC in their letter of October is irrelevant
as per clause 60.13(a)(5) of the contract agreement signed between PMU and NCL.
It is worth noting that the work is being executed on cost plus basis and that the most of
the work is being executed through subcontractors. The NCL claims that they are entitled
for payment of all project staff whether technical or non-technical and other expenses on
account of their project office and other activities. There is no dispute on sub-contract
cost, however there is difference of opinion on the issue of cost claimed by NCL
regarding expenditure on project team and allied facilities. It is therefore requested to
please give us specific advice /clarification regarding the cost payable to NCL, under the
provisions of the contract agreement clause 1.1(g)(i) and clause 60.13 (as amended at
para-3 of last amendment signed between PMU and NCL (Annexure-F).