INDIAN OIL CORPORATION LTD.

, (MARKETING DIVISION)

to constitute as a waiver thereof. Any application for extension of time made by the
Consultant after the expiry of due date for completion of the item of work as per terms of
contract shall not be entertained or be deemed to be valid.
If, in the opinion of Project In-charge, the delay in any activity is solely on account of
delays of consultant and no extension of time can be granted, then the Corporation
can take the actions without prejudice to any other right as per the conditions
contained in the offer document.
12.0

SECURITY DEPOSIT:

The successful tenderer shall pay security deposit up on placement of work order
equivalent to 10% of the work order value (excluding service tax) in any of the
following modes:
A. PAY ORDER / DEMAND DRAFT: Initial security deposit: The Initial Security
Deposit (ISD) equal to 2.5% (Two and a half percent) of the total work order value
shall be payable by the successful tenderer prior to commencement of work. The
ISD can be paid in the manner mentioned below:
x

Demand draft/ Pay order drawn on a nationalized / scheduled bank drawn in

favour of Indian Oil Corporation Limited payable at Mumbai.

If the EMD has been made in the form of DD, the Consultant may be
permitted to adjust the same towards the initial security deposit (ISD) and pay
the balance ISD amount in the manner stipulated in (a) above.

Balance security deposit equal to 7.5% (Seven and a half percent) of the total
work order value shall be recovered at the rate of 10% of gross certified value
of work from incoming running bills till such time entire security deposit is
recovered.

B. BANK GUARANTEE (Only if the quantum of security deposit is in excess of

Rs. 1,00,000/-): Entire amount of security deposit (worked out on the basis of
work order value excluding service tax) should be covered by BG as per the
format issued by the Corporation and should be submitted prior to
commencement of work. The BG will be valid for a period of 12 months plus 3
months claim period beyond the date of satisfactory completion of work, i.e. the
BG shall be valid for 36 months with a claim period of further 3 months. This BG
shall be submitted directly by the bankers under their covering letter to the office
of the Corporation in a sealed cover. In the event of the project completion getting
delayed beyond the scheduled completion period, the validity of BG shall be
extended further without any additional cost to IOCL.
x

The security deposit collected as per the terms shall be held for a period of 12 months
covering warranty period for the consultancy services from the date of completion of
consultancy works including site supervision services. The SD shall not carry any
interest.

13.0

Corporation reserves the right to accept any tender in whole or in part and reject any or
all tenders without assigning any reasons. The Corporation reserves the right to accept
more than one tender in parts. The Corporation also reserves the right to accord
purchase/ price preferences to the public enterprises and Joint ventures of the
Corporation as per the prevailing policy. Decision of the Corporation in this regard will
be final.
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