General Conditions of Contract

Larsen & Toubro Limited
L&T Construction
Heavy Civil Infrastructure IC
Khulna Project Office
Road No. 3, Plot No.:372
Sonadonga, 2nd Phase
Khulna, Bangladesh
TERMS & CONDITIONS

1. DEFINITIONS
Purchase Order: The Contract between L&T (Purchaser) and M/s
_____________________________________________________ , (Supplier/ Vendor/ Agency) shall mean and
include all documents like enquiry, amendments, offer submitted by supplier and purchase
order issued by L&T and other documents connected with the issue of purchase order,
instructions, drawings, change orders, directions issued by the Client / L&T ENGINEER-IN-
CHARGE / L&T SITE-IN-CHARGE for the execution and completion of the works and the
period of contract mentioned in the contract, including such periods of time extensions as
may be granted by L&T at the request of supplier and such period of time for which the work
is continued by supplier for the purposes of completion of work. M/s
______________________________________________________, having their registered Office at
________________________________________________________________________________________________________,
whose offer has been accepted by L&T as a supplier and includes suppliers’ legal heirs,
representatives, successors and permitted assignees. L&T means: Larsen & Toubro
Limited — L&T Construction, Heavy Civil Infrastructure Independent Company, having
its registered office at “L&T House”, Narottam-Morarji Marg, Ballard Estate, Mumbai-
400001 and its Construction Division headquarters office at PB No 979, Mount Poonamallee
Road, Manapakkam, Chennai 600089.
The “Owner / Authority /Employer / Client” shall mean Bangladesh Railways (BR), its
legal successors and assignees
“PMC/ Consultant” shall mean “STUP Consultants Pvt. Ltd.”
“Engineer” or Engineer-in-Charge (EI) or Site-In- Charge, mean the person appointed or
designated as such by L&T and shall include those who are expressly authorized by L&T to
act for and on behalf of it.
“Specification” shall mean the various technical and other specifications attached and
referred to in the Enquiry / Contract / Purchase order / Work order, It shall also include the:
latest editions including all Addenda / corrigenda or relevant IRC/ MORTH/ RDSO/ IS
Standard specifications, and any modification thereof or addition thereto, as may from time
to time be furnished or approved in writing by the Engineer.
“Work” means the work to be executed in accordance with the Purchase order or part
thereof as the case may be and shall include extra, additional, altered or substituted works
as may be required for the purposes of completion of the work contemplated under the
contract.
Tel: +91 44 2252 6000, 2252 8000 Fax: +91 44 2252 6868 / 8811 www.Lntecc.com
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai- 400 001, INDIA
L&T Construction – Heavy Civil Infrastructure is a brand of Larsen & Toubro Limited
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Sensitivity: LNT Construction Internal Use

L&T Construction
Khulna, Bangladesh
Applicable language: All correspondence incidentals to this contract shall be in English

language only.
2. SCOPE OF WORK
The scope of work will include but not limited to the following:
i. Manufacturing of the rivets as per drawing, specification, standards and as per
approved QAP plan.
ii. Inspection of fasteners after manufacturing as per approved quality plan by L&T/
Client/ Third Party.
iii. Dispatch of rivets after testing & Inspection clearance from L&T/ Client as per
QAP.
iv. Rivets to be packed in boxes with proper packing and identification seals suitable
for transport conditions.
v. Selection of suitable transport vehicle, proper loading & dispatch to designated
location.
3. PRICES
The basic price mentioned in the order shall be Firm & Fixed and No escalation shall be
entertained for any reason whatsoever, till the complete execution of the order. The prices
are for Incoterm CIP Benapole. Basic Price against each line of item is inclusive of cost of all
Materials, Labor, Plant & Machinery, Tools and Tackles, Consumables, Transportation and
miscellaneous / Incidental / sundry cost, as applicable. The contract shall be on item rate
basis.
L&T reserves the right to change the quantity on either side (Increase / Decrease) by any
extent at the same price mentioned in the BOQ.
4. TAXES & DUTIES

The net price mentioned in the offer is inclusive of all applicable taxes and duties. All the
taxes and duties, levies payable under central, state or local laws applicable in India as well
as those applicable outside India, shall form part of the contract price. The sub-contractor
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L&T Construction
Khulna, Bangladesh
shall bear all the taxes, duties, levies on the supply of goods, materials, plant and on
performance of the services, under central, state or local laws applicable in India as well as
those levied outside India.
The total amount is exclusive of GST, since it is a direct export order. The PO shall be released
on the agency in US Dollars ($) currency.
5. SCHEDULE OF SUPPLY
Time is the essence of the contract and as such the Supplier is expected to take all necessary
action well in advance for the timely completion of the delivery. The Supplier shall
coordinate with our project management team and ensure delivery as per the delivery
schedule provided (Refer Annexure I). This program is to be adhered to without any slippage,
and the same shall be reviewed periodically by Project manager/ Engineer in-Charge. The
incoterm for supply is CIP Benapole.
In case the time period of completion of work has been extended beyond above period by
Client / LTHCIIC, then suitable extension of time shall be provided.
6. QUALITY ASSURANCE PLANS (QAP) and APPROVALS

One set of MTC, Commercial Invoice & a Packing list, Certificate of origin shall be couriered
to our Kolkata office & one set to be sent along with material submitted initially, and after
concurrence, 3 sets of hard copy / soft copy shall be submitted.
7. LIQUIDATED DAMAGES
If the vendor fails to complete the delivery within the time period of completion stipulated
in the PO due to the reasons attributable to the vendor, then the LD shall be applicable at the
rate of 2% of the total contract value per week of delay or part thereof subject to a maximum
of 10% of the total contract value.
8. PRICE VARIATION CLAUSE / ESCALATION

The price shall remain firm till the completion of the project. No Price escalation shall be
payable.
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L&T Construction
Khulna, Bangladesh
9. TESTING & INSPECTION

Materials testing certificate shall be provided along with dispatch of every batch of material
Fasteners shall be inspected by L&T / Client / Third party inspection at the Supplier’s/
manufacturer's factory/workshop before dispatch. Necessary inspection arrangements shall
be made by the Supplier at its factory. The Supplier shall give inspection call with a minimum
period of 7 (Seven) working days in advance to organize inspection. The Supplier shall
submit an inspection schedule to enable L&T personnel to plan inspection visits accordingly.
The Supplier shall obtain inspection clearances from the concerned inspection authorities
for all the items inspected as per the approved quality plans. Any defects pointed out during
inspection shall be rectified immediately by you, without any time and cost implication. The
Fasteners shall be dispatched only after rectification of defects, if any, pointed out during
inspection and after issue of dispatch clearance certificate or inspection waiver certificate,
as the case may be from our end. In the event it is found that Fasteners are not ready despite
of your call, all expenditures pertaining to the visit shall be debited to your account.
L&T may appoint an independent third party agency for inspection/checking of the
materials at various stages of manufacturing as per the agreed QAP. The Fasteners shall be
dispatched only after obtaining satisfactory report by certifying the specifications from the
appointed third party agency and subsequent dispatch clearance from L&T.
The Fasteners shall be inspected at the manufacturer’s factory by L&T/Client/ Third Party -
before dispatch of material and meeting Client’s / contractual obligations as per approved
QAP. If any Third Party lab testing (NABL Approved) is required, then the same shall be
arranged by the Supplier and the cost for the same shall be borne by L&T. However, if the
Supplier's materials fail to pass the tests, complete expenses incurred for the testing shall be
recovered from Supplier.
10. TRANSIT INSURANCE

Transit Insurance is under Supplier's scope. Ensuring delivery of materials at designated
location in sound and satisfactory condition shall be in the scope of Supplier.
11. PACKING
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L&T Construction
Khulna, Bangladesh
a) The items shall be packed securely for export purpose to avoid any damage to
the consignment in transit.
b) The items shall be packed as per the procedure and proper identification marks.
c) Any damage caused due to poor packing can lead to non-acceptance of claim by
the Insurance Company. Supplier will have to replace the damaged portion free
of cost in a manner acceptable to the Client.
12. WARRANTY TERMS

The warranty period shall be 24 (Twenty four) months from the date of last supply. Within
the terms of the warranty the Agency shall be liable for replacement of any defects arising
out of faulty design, faulty material, manufacturing defects and poor workmanship,
Wherever it is established that a defect in component is occurred by a faulty design/ faulty
manufacturing /poor workmanship, upon detection of such defects, the vendor shall
immediately take appropriate and efficient measures to fix it at its own cost by repair or
replacement as may be approved by L&T.
The issue of acceptance certificate/inspection certificate approval of the L&T shall in no way
exempt the Supplier from the provision of the warranty clause.
13. DESPATCH INSTRUCTIONS

Despatch clearance and instruction may be given to supplier after receipt of inspection
clearance from inspection agency. After receiving the dispatch clearance certificate from
L&T/ Client, the items shall be duly packed and dispatched (Transportation is in Supplier
scope only).
Supplier shall submit the following documents along with each consignment.
• Tax Invoice in Duplicate ( Original + 1 Copy )
• Delivery Challan / Packing list in triplicate / Bill of Entry
• Consignee Copy of Consignment note (3 photocopies)
• Copy of detailed inspection report in 2 sets
• Copy of Dispatch Clearance letter
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Khulna, Bangladesh
• Guarantee/Warranty Certificate
• Material Test certificates
14. TERMS OF PAYMENT

100% payment on pro-rata basis with credit period of 60 days from the date of receipt of
shipping/dispatch documents against submission of the following documents:
a. Export Commercial Invoice,
b. Original delivery challan duly signed by authorized representative of Supplier,
c. Packing List mentioning the package weight,
d. Shipping release note in original issued by inspection authority of L&T,
e. Bill of Lading (B/L) or Lorry Receipt (LR),
f. Certificate of Origin,
g. Transit insurance documents,
h. MTC for materials,
i. Warranty certificate,
j. Contract Performance Bank Guarantee within 28 days of issue of purchase order.
15. PERFORMANCE BANK GAURATNTEE

The Agency/Supplier shall provide unconditional bank guarantees for an amount equal to
Ten percent (10%) of the basic contract value for its performance under the conditions of
this contract, within 28 days of receipt of Purchase Order with a validity till warranty period.
The Performance Bank Guarantee shall be issued in favour of L&T from a
Nationalized/Scheduled Indian Bank as per the L&T format.
Performance Bank Guarantee amount and duration may vary depending upon purchase
order & work order changes with respect to increase or decrease in scope, value, and
schedule acceleration or deceleration. In case the contract value exceeds beyond 25% of the
original contract value, the contractor shall have to submit additional performance bank
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L&T Construction
Khulna, Bangladesh
guarantee. The PBG validity shall be extended further if the Supplier is awarded additional
works / granted extension of time for the work already awarded.
Sub-Contractor is to ensure that the BG confirmation is transmitted by their bank only in IFN
760 format through SFMS (Structured Financial Messaging system) to facilitate faster
processing of the BGs / Invoices at SSC, The below procedure / requirements for reference:
a) While making the 8G application, Vendors to inform their Bank to send BG confirmation
only through IFN 760 (Guarantee) vide SFMS to L&T Bank.
b) IFN 760 (Guarantee) should contain the following details: BG No, BG Amount, BG Type,
date of issuance, Expiry date, Name of BG Applicant & Beneficiary’s name and address.
c) Sub-Contractor should obtain a copy of IFN 760 sent through SFMS by their bank and
attach the same with the Original hardcopy of BG and submit the same to SSC.
The details of L&T bank to which SFMS confirmation has to be sent is as under:
Name of Beneficiary – Larsen & Toubro Limited
Bank Name: ICICI BANK LIMITED
IFSC Code: ICICQ000009
Bank Address: 110, First Floor, Nungambakkam High Road, Nungambakkam, Chennai –
600034
Original Performance Bank Guarantee should be sent to SSC at the following address:
Mr. M. Ragupathirajaram
Larsen & Toubro Construction
Finance & Accounts
SSC-Accounts payable
TCTC Building, 2nd Floor,
Mount Poonamallee Road
Manapakkam, P.O.No 979
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L&T Construction
Khulna, Bangladesh
Chennai — 600 089
16. SUBMISSION OF INVOICE

Invoice along with complete despatch documents in 2 sets duly signed by authorized
signatory of your company shall be sent to the addresses mentioned below. Supplier is
supposed to coordinate with our project manager & site finance & accounts for all payment
related document submission and follow up for further activities.
Original set of documents to be sent to our Payment Centre at below address:
M/s Larsen & Toubro Limited
L&T - Construction, Shared Service Centre,
SSC-BG, Vendor Payments,
TCTC Building, Second Floor,
Mount Poonamallee Road,
Manapakkam, Chennai – 600089
Ph.No. 044-22528868 / 22526000
2nd set of dispatch documents with consignee copy of the LR to be sent along with the
materials to the site address given in the purchase order.
The tax invoice in duplicate duly signed by authorized signatory of your company shall be
sent to our site office for effecting payment.
17. CANCELLATION / TERMINATION

In case the Supplier / Agency does not comply with any of the clauses mentioned, The
Purchaser reserves the right to cancel the PO without assigning any reason whatsoever, and
shall invoke the risk purchase clause as mentioned below.
18. RISK PURCHASE
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L&T Construction
Khulna, Bangladesh
In the event supplier fails to execute the order as per the provisions of this contract including
adherence to the delivery/time period of completion indicated therein, L&T reserves the
right to cancel the order in part or full without any compensation and purchase/execute such
cancelled items from alternative sources,
Any extra cost incurred by us on such procurement/services shall be recovered by us
together with administrative charges @ 20% of the extra cost; either by way of deduction
from your pending bills and/or by means of encashing all your bank guarantees available
with LTHIIC and/or by means of separate remittance from you within 15 days or receipt by
you of our debit note/notes.
19. FORCE MAJEURE

Any delay or impediment in the fulfillment of its obligation by either party by reason of
“Force majeure”, means exceptional events or circumstances:
a. which is beyond the control of either party,
b. which such party could not reasonably have provided against before entering into the
contract,
c. which, having risen, such party could not reasonably have avoided or overcome and
d. which is not substantially attributable to the other party,
shall constitute excusable delay and no compensation or idle time payment shall be made for
such delays, but extension of time for such period shall be granted by L&T after examining
the merit of the case for each such individual happenings. The Supplier shall inform L&T of
any force majeure condition faced by it in writing within one week of its occurrence.
20. DISPUTES OF ARBITRATION

All disputes or difference of opinions, on account. of interpretation of clauses, technical
specifications, etc. shall be resolved through direct and mutual discussions between the
parties. If the dispute is not resolved upon such direct and mutual discussion, the same shall
be referred for adjudication before a sole arbitrator to be appointed by L&T. Arbitration shall
be conducted as per Arbitration and Conciliation Act, 1996. Language to be followed is
English and venue shall be at Chennai.
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L&T Construction
Khulna, Bangladesh
21. JURISDICTION
Courts in Chennai shall have exclusive Jurisdiction for any proceedings arising out of this
agreement.
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L&T Construction
Khulna, Bangladesh
Annexure I
Schedule of Supply
Rivet Rivet Delivery Schedule

S
Dia. Size Lot 1: 7th Lot 2: 15th Lot 3: 15th
No. Total
(mm) (mm) August 2020 October 2020 November 2020
1 20 42 80 80 120 280
2 20 44 42 42 63 147
3 20 46 9,770 9,770 14,655 34,195
4 20 48 1,504 1,504 2,256 5,264
5 20 50 2,688 2,688 4,032 9,408
6 20 52 5,838 5,838 8,757 20,433
7 20 54 10 10 15 35
8 20 56 2,756 2,756 4,134 9,646
9 20 60 2,306 2,306 3,459 8,071
10 20 62 564 564 846 1,974
11 20 64 630 630 945 2,205
12 20 66 420 420 630 1,470
13 20 72 336 336 504 1,176
14 20 76 68 68 102 238
15 22 46 26 26 39 91
16 22 48 1,282 1,282 1,923 4,487
17 22 50 126 126 189 441
18 22 54 14 14 21 49
19 22 58 546 546 819 1,911
20 22 60 34 34 51 119
21 22 62 6,594 6,594 9,891 23,079
22 22 64 1,866 1,866 2,799 6,531
23 22 66 2,832 2,832 4,248 9,912
24 22 68 1,606 1,606 2,409 5,621
25 22 70 8,544 8,544 12,816 29,904
26 22 72 102 102 153 357
27 22 74 4,974 4,974 7,461 17,409
28 22 76 472 472 708 1,652
29 22 80 2,160 2,160 3,240 7,560
30 22 82 2,978 2,978 4,467 10,423
31 22 84 2,110 2,110 3,165 7,385
32 22 86 68 68 102 238
33 22 88 1,512 1,512 2,268 5,292
34 22 90 3,394 3,394 5,091 11,879
35 22 92 1,942 1,942 2,913 6,797
36 22 96 4,612 4,612 6,918 16,142
37 22 98 68 68 102 238
38 22 100 690 690 1,035 2,415
39 22 102 1,816 1,816 2,724 6,356
40 22 104 68 68 102 238
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L&T Construction
Khulna, Bangladesh
41 22 106 168 168 252 588

42 22 108 3,646 3,646 5,469 12,761
43 22 110 370 370 555 1,295
44 22 114 404 404 606 1,414
45 22 120 1,916 1,916 2,874 6,706
46 22 122 2,268 2,268 3,402 7,938
47 22 124 3,462 3,462 5,193 12,117
48 22 128 2,218 2,218 3,327 7,763
49 22 130 118 118 177 413
50 22 132 286 286 429 1,001
51 22 134 1,428 1,428 2,142 4,998
52 22 136 60 60 90 210
53 22 138 278 278 417 973
54 22 140 370 370 555 1,295
55 22 142 354 354 531 1,239
56 22 144 118 118 177 413
57 22 146 8,376 8,376 12,564 29,316
58 22 146 10 10 15 35
59 22 150 60 60 90 210
60 22 156 530 530 795 1,855
61 22 160 598 598 897 2,093
62 22 170 118 118 177 413
63 22 178 370 370 555 1,295
Total 1,04,974 1,04,974 1,57,461 3,67,409
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Larsen & Toubro Limited

TERMS & CONDITIONS

Sensitivity: LNT Construction Internal Use

Applicable language: All correspondence incidentals to this contract shall be in English

4. TAXES & DUTIES

Sensitivity: LNT Construction Internal Use

6. QUALITY ASSURANCE PLANS (QAP) and APPROVALS

8. PRICE VARIATION CLAUSE / ESCALATION

Sensitivity: LNT Construction Internal Use

9. TESTING & INSPECTION

10. TRANSIT INSURANCE

Sensitivity: LNT Construction Internal Use

12. WARRANTY TERMS

13. DESPATCH INSTRUCTIONS

Sensitivity: LNT Construction Internal Use

14. TERMS OF PAYMENT

15. PERFORMANCE BANK GAURATNTEE

Sensitivity: LNT Construction Internal Use

Sensitivity: LNT Construction Internal Use

Chennai — 600 089

16. SUBMISSION OF INVOICE

17. CANCELLATION / TERMINATION

18. RISK PURCHASE

Sensitivity: LNT Construction Internal Use

19. FORCE MAJEURE

20. DISPUTES OF ARBITRATION

Sensitivity: LNT Construction Internal Use

Sensitivity: LNT Construction Internal Use

Rivet Rivet Delivery Schedule

Sensitivity: LNT Construction Internal Use

41 22 106 168 168 252 588

Sensitivity: LNT Construction Internal Use

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