(MC-5376)

GENERAL CONDITIONS OF CONTRACT

GENERAL CONDITIONS OF CONTRACT

MC-5376
NATIONAL ALUMINIUM COMPANY LIMITED
NALCO BHAWAN, P-1 NAYAPALLI,
BHUBANESWAR – 751 013

Web site: nalcoindia.com

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INDEX

Sl. Title Page

No. No.
1. Definitions and Interpretation (Section-1)
1.1 Definitions
2. Facilities to Contractor (Section-II)
2.1 Location of Site climatic conditions and Access by Road
2.1.1 Location of Site
2.1.2 Access by Road
2.2 Water Supply
2.3 Power Supply
2.4 Land for Contractor’s field office, godown and workshop
2.5 Land and Residential Accommodation
General Instructions to Tenderers (Section-III)
3. Submission of Tender:
4. Documents:
4.1.2 Details to be submitted along with the tender
4.2 All pages to be initiated
4.3 Rates to be in figures and words
4.4 Corrections and Erasures
4.5 Signature of Tenderer
4.6 Witness
5 Transfer of Tender Documents
6 Earnest Money
7 Validity
8 Addends/ Corrigenda
9 Right of Owner to accept or reject Tender
10 Time Schedule
11 Collection of data Tenderer’s responsibility
12 Retired Government or Company Officers
13 Signing of the Contract
14 Field Management and Controlling Authority
15 Note to schedule of Rates
General Obligations (Section-IV)
16 Interpretation of contract documents
17 Special Conditions of Contract
18 Tenderer to obtain his own information
19 Security Deposit
20 Forfeiture of Security Deposit
21. Time of Performance

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22. Extension of Time

23. Force Majeure
24. Compensation for delay.
25. Failure by the contractor to comply with the provisions of the contract.
26. Contractor remains liable to pay compensation if action not taken under Clause 25.

27. No Compensation for alteration in or restriction of work.

28. Change in Constitution
29. Termination of Contract for death
30. Members of the Owner not individually liable
31. Owner not bound by personal representations
32. Contractor’s Office at Site
33. Contractor’s subordinate staff and their conduct
34. Sub-letting of work
34.1 General
34.2 Sub-Contracting of works
34.3 List of sub-contracted works to be supplied
34.4 Contractor’s liability not limited by sub-contractors
34.5 Owner may terminate sub-contracts
34.6 No remedy for action taken under this clause
35. Power of Entry
36. Contractor’s responsibility with other agencies
37. Other agencies at site
38. Serving of Notices
38.1 To the Contractor
38.2 To the Owner
39 Rights of various interests
40 Patents, Royalties, Rent and excavated material
41. Liens
41.1 General
41.2 Nothing extra for adverse sub-soil conditions
41.3 Slip and Falls in excavation
41.4 No compensation in case of change on location of site
Performance of Work (Section V)
42. Execution of Works
43. Coordination and inspection of works
44. Work on monsoon and dewatering
45. Work on Sundays and Holidays
46. General Conditions of Construction and Erection Work
47. Drawing to be supplied by the Owner
48. Drawings to be supplied by the Contractor

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49. Setting out works

50. Responsibility for Level and Alignment
50.1 General
50.2. Lighting, Watch and Ward
51. Materials to be supplied by Contractor
52. Stores supplied by the Owner
53 Conditions for issue of materials
54. Return of Surplus
55. Materials obtained from dismantling
56. Articles of value found
57. Inspection of works
58. Assistance to the Engineer
59. Discrepancies between Instructions
60. Alterations in specifications & designs and extra works
61. Action where no specification is issued
62. Abnormal Rates
63. Test for quality of Works
64. Samples
65. Liabilities for defect imperfections etc and rectification’s thereof
66. Suspension of works
67. Possession prior to completion
68. Twelve months period of liability form the date of issue of completion certificate

68.1 Guarantee
68.2 Suggestions to fulfill the guarantees
68.3 Care of works
68.4 Defects prior to taking over
68.5 Defects after taking over
68.6 Guarantee/ Transfer of Guarantee
Certificate and Payments (Section-VI)
69. Schedule of Rates and Payments.
69.1 Contractor’s Remuneration.
69.2 Schedule of Rates to be inclusive.
69.3 Schedule of Rates to cover constructional plant, materials, labour etc.
69.4 Schedule of Rates to cover royalties, rents and claims
69.5 Schedule of Rates to cover taxes and duties.
69.6 Schedule of Rates to cover risks of delays.
69.7 Schedule of Rates can not be altered.
70. Procedure for measurement/ billing of work in progress.
70.1 Measurements.
70.2 Billing.

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70.3 Secured Advance on materials.

70.4 Dispute in mode of measurement.
70.5 Rounding of Amounts
71. Lumpsum in Tender
72. Running Account payment to be regarded as advances
73. Notice of claims for additional payment
74. Payment of Contractor’s Bill
75. Receipt for payment.
76. Completion Certificate.
76.1 Application for completion certificate.
76.2 Completion Certificate.
76.3 Completion Documents.
77. Final Decision and final Certificate.
78. Certificate and payments no evidence of completion.
Taxes and Insurance (Section –VII)
79. Taxes, duties, octroi etc.
80. Insurance
80.1 Employees State Insurance act.
80.2 Workmen compensation and employer’s liability insurance
80.3 Any other insurance required under law or regulations or by Owner
80.4 Accident or Injury to workmen
80.5 Transit Insurance
81. Damage to property or to any person or any third party
82. Demurrage dues.
Labour Laws and Arbitration (Section – VIII)
83. Labour laws.
84. Implementation of Apprentices Act 1961.
85. Contractor to Indemnify the Owner
86. Health and sanitary arrangements for workers
87. Arbitration
88 Jurisdiction/ Governing Laws
Safety Code (Section-IX).
89. General
90. Safety Regulations
91. First Aid and Industrial Injuries
92. General Rules.
93. Contractor’s Barricades.
94. Scaffolding.
95. Excavation and Trenching.
96. General Safety
97. Care in handling Inflammable gas.

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98. Temporary combustible Structures.

99. Precautions against fire.
100. Explosives.
101. Mines Act.
102. Preservation of peace.
103. Out Break of infectious diseases.
104. Treatment of Contractor’s Staff in Owner’s Hospital
105. Use of intoxicants.
Proforma (Section-X)
A. Proforma of Bank Guarantee.
B. Proforma of Agreement
C. Security Deposit Guarantee Bond
Proposal forms - (Appendixes) -
IA. Details of works of similar nature and magnitude carried out during the last 5 years.

IB. Concurred commitments of the tenderer

II Details of equipment, tools tackle.
III. Details of Minimum manpower proposed to be deployed on this work.
IV. Organisation Chart showing no. of qualified engineers and supervision)
V. List of proposed sub-contractors.
VI. Progress Billings.
VII. Information about Tenderers (Form H)
VIII List of enclosures (Form-I)
IX. Exceptions and Deviations (Form –J)

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SECTION – 1

DEFINITIONS AND INTERPRETATION

1. DEFINITION & INTERPRETATION:

1.1 Definition:

In the contract (as hereinafter defined) the following words and expressions shall have the
meanings hereby assigned to them except where the context otherwise requires.

1.1.1 The ‘Owner’ shall mean the National Aluminium Company Limited (NALCO), a Company
th
incorporated under the Companies Act, 1956 having its registered office at IDCO Tower, 8
Floor, Janapath, Bhubaneswar –751007 or any other place as modified subsequently and shall
include its Chairman-cum-Managing Director or other Administrative Officers authorised to deal
with these presents are concerned on his behalf posted in the any of the Offices of NALCO and
shall also include Owner’s successors and assignees.

The Chairman-cum-Managing Director has nominated the following persons as the

representative of the ‘Owner’ for the purpose of all contractual matters.

Smelter - General Manager (Smelter)

CPP - General Manager (CPP) Projects
Mines - General Manager (Mines)
Alumina - General Manager (Alumina)

1.1.2 The ‘Tender’ shall mean the tender submitted by the tenderer for acceptance by the Owner.

1.1.3. The ‘Chairman-cum-Managing Director’ shall mean the Chairman-cum-Managing Director of

National Aluminium Co. Ltd., or his successors in office as designated by the Owner.

1.1.4. The ‘Project Head’ shall mean General Manager/ Deputy General Manager of the Project of
National Aluminium Company Ltd., or his successor in office or his authorised representative.

1.1.5. The ‘Contractor’ shall mean the person or persons, firm or company whose tender has been
accepted by owner and includes the contractor’s legal representatives, his successors and
permitted assigns.

1.1.6. The ‘Sub-contractor’ shall mean any person or firm or company (other than the contractor to
whom any part of the work has been entrusted by the contractor, with the written consent of the
owner or his representative and the legal representatives, successors and permitted assignee
of such person, firm or company.

1.1.7. The ‘Engineer-in-Charge’ shall mean the person nominated by the Owner from time to time and
shall include those who are expressly authorised by the Owner to act for and on his behalf for
all function pertaining to operation of this contract. All functions pertaining to the operation of
contract means all acts necessary for execution of the contract coordinating between the
different agencies and final closing of the contract.

1.1.8. The ‘Works’ shall mean and include all works to be executed in accordance with the contract or
part thereof as the case may and shall include all extras, addition, altered or substituted works
as required for the purpose of the contract or as may be required to be executed by the owner/
engineer-in-charge.

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1.1.9. The ‘Contract’ shall mean the agreement between the Owner and the contractor for the
execution of the works including therein all documents such as the invitation to tender,
instructions to Tenders, General Conditions of Contract, Special Conditions of Contract, Job
Specifications, General Requirements, Time Schedule of Completion of Job, Drawings, Letter
of Intent awarding the work, Agreed variations, if any etc.
1.1.10. The ‘Contract Document’ shall mean collectively the tender documents, designs, drawings
specifications, agreed variations, if any and other documents constituting the tender and
acceptance thereof.
1.1.11. ‘Constitutional Plant’ shall mean all appliances or things of whatsoever nature required in or
about the execution, completion or maintenance of the works or temporary works (as
hereinafter defined) but does not include materials or other things intended to form of forming
part of the permanent work.
1.1.12. ‘Temporary Works’ shall mean all temporary works of every kind required in or about the
execution, completion or maintenance of the works.
1.1.13. ‘Specifications’ shall mean all directions, various technical specification, provisions, and
requirements, attached to the contract, which pertain to the method and manner of performing
the work or works to the quantities and qualities of the work or works and the materials to be
furnished under the contract for the work or works as may be amplified or modified by the
Owner or the Engineer-in-charge during the performance of Contract in order to provide the
unforeseen conditions or in the best interests of the work or works. It shall also include the
latest edition including all addenda/ corrigenda or relevant Indian Standard Specifications and
other relevant codes.
1.1.14. ‘Plans’ shall mean all maps, sketches, and layouts as are incorporated in the contract in order
to define broadly the scope and specifications of the work or works, and all reproductions
thereof.
1.1.15. ‘Drawings’ shall include maps, plans and tracings or prints thereof with any modifications
approved in writing by the Engineer-in-Charge and such other drawings as may, from time to
time, be furnished or approved in writing by the Engineer-in-charge.
1.1.16. ‘Foreign consultant’ shall mean a person, agency or firm including their successors and
assigns, who are nonresidents of India and are responsible for supply of process Technology
for expansion plant based on review of existing plant including material flow, energy balance,
additional facilities and improvement on the basis of the recent experience.
1.1.17. ‘Indian Consultant’ shall mean a person, agency or firm including their successors and assign
who are responsible for detailed engineering and construction management of the project.
1.1.18. ‘Project manager’ shall mean the authorised representative of the consultant posted at site. He
shall be responsible for supervision of the work by the contractors as well as coordinate with
different agencies within the organisation or otherwise.
1.1.19. ‘Site’ shall mean the lands and other places on, under in or through which the permanent works
are to be carried out and any other lands or places provided by the owner for the purpose of
the contract.
1.1.20. ‘Notice in writing or written Notice’ shall mean a notice in written, typed or printed characters
sent (unless delivered personally or other wise proved to have been received) by registered
post to the last known private or business address or registered office of the addressee and
shall be deemed to have been received in the ordinary course of post it would have been
delivered.
1.1.21. The ‘Completion Certificate’ shall mean the certificate to be issued by the owner or his
representative when the works have been completed to his satisfaction.

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1.1.22. The ‘Final Certificate’ in relation to the work shall mean the certificate regarding the satisfactory
compliance of the various provisions of the contract to be issued by the owner or his
representative after the period of liability is over.
1.1.23. ‘Approved’ shall mean approved in writing including subsequent written conformation of
previous verbal approval and ‘Approval’ means approved in writing including as aforesaid.
1.1.24. The ‘Period of Liability’ in relation to a work means the specified period from the date of issue
of completion certificate up to the date of issue of final certificate which the contractor stands
responsible for rectifying all defects that may appear in the works.
1.1.25. The ‘Appointing Authority’ for the purpose of arbitration shall be the Chairman and managing
Director or any other person so designated by him.
1.1.26. The ‘Alteration Variation Order’ means an order given in writing by the Engineer-in-Charge/
owner to effect additions to or deletions from or alteration in the works.
1.1.27. ‘Letter of Intent’ shall mean an intimation by a letter to tenderer that the tender has been
accepted in accordance with the provisions contained in the letter.
1.1.28. ‘Days’ means a day of 24 hours from mid night irrespective of the number of hours worked in
that day.
1.1.29. ‘Working Day’ mean any day which is not declared to be holiday or rest day by the Owner.
1.1.30. ‘Week’ means a period of any consecutive seven days.
1.1.31. ‘Metric System’: All technical documents regarding the construction of works are given in the
metric system and all work in the project should be carried out accordingly to the metric
system. All documents concerning the work shall also be maintained in the metric system.
1.1.32. ‘Value of Contract’ shall mean the sum accepted or the sum calculated in accordance with the
prices accepted in tender and / or the contract rates as payable to the contractor for the entire
execution and full completion of the work.
1.1.33. ‘Headings and Marginal Notes’ in these contract documents are given solely for facility of
reference and are not part of the contract documents and are not to be taken into account in
the interpretation of the provisions of the contract.
1.1.34. ‘Language for Drawings & Instruction’: All the drawings, titles, notes, instruction, dimensions
etc. shall be in English Language.
1.1.35. ‘Singular and Plural’: The singular shall include the plural and vice versa wherever the context
so requires.

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SECTION - II

2. FACILITIES TO CONTRACTOR
2.1 Location of Sites and Access by Road:
2.1.1 Locations of Sites:

The general information about Mines Alumina, Aluminium Smelter and Captive power Plants
furnished below is of indicative nature only and shall not be considered as binding in any way on
the Owner and shall not govern either the scope of work or the nature of the respective rights
and the obligations of the parties to such contract.

(a) Alumina Plant and Mines:

Alumina plant is on south-western side of the Panchpatmali hill near Damanjodi village in
Koraput District, Orissa State. The site is situated at 12 Km from the national highway No. 43
off Semiliguda village. The Alumina Plant Site has the form of saddle between groups of low
hills. The location of Red Mud Pond is in the natural basis of hills situated at a distance of 2 Km
from the western side of the plant. The Bauxite mine is located at 14 Km away from the
Alumina Plant Site.

(b) Smelter Plant:

Aluminium Smelter is on the Southern side of National Highway No. 42, with its approximate
o o
latitude and longitude as 20 51’N and 85 10’E respectively. The area, at a higher elevation in
comparison with adjacent land, is not subjected to either normal or flash foods. The prevalent
directions of wind are from North-West and West.

(c) Captive Power Plant:

Captive Power Plant is located at Angul, District Angul, Orissa on the south of Talcher Thermal
Power Station of Orissa State Electricity Board the main plant site is about 3 Km on the north of
the junction of the National Highway Nos. 42 and 23, between the villages Balaram Prasad
Patna and Gotamara. The access roads to the main plant site may be taken from either of the
highways.
2.1.2. Access by Road:
Contractor, if necessary, shall build other temporary access roads to the actual site of
construction for his own work at his own cost. The Contractor shall be required to permit the
use of the roads so constructed by him for vehicles of any other parties who may be engaged
on the project site. The Contractor shall also facilitate the construction of the permanent roads
should the construction thereof start while he is engaged on this work. He shall make due
allowance in his tender for any inconvenience he anticipates on such account.
Non-availability of access roads, railway siding and railway wagons for the use of contractor
shall in no case condone any delay in the execution of works not be the cause for any claim for
compensation against the Owner.
2.2 Water Supply:
2.2.1. Unless other wise provided in the Contract, the Contractor shall be responsible for the
arrangements to obtain supply of water necessary for the works, his labour colony, his
workshops, his offices etc. All pumping installations, pipe network and distribution system will
have to be carried out by the Contractor at his own cost.
2.2.2. The Owner may agree to supply water to the Contractor for use in the Owner’s works on
specified terms and conditions as shall be determined by the Owner, which shall be binding on
the Contractors. The tenderer is however required to exercise his option to receive such water
supply from Owner’s main at the time of submission of his tender.

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2.2.3. When the water is supplied by the Owner, the Owner’s main will be within 500 metres form the
site of work. The Contractor shall provide at his own cost, all necessary ferrules, pipes, fitting,
couplings and tanks and temporary works required and he shall maintain all such works in
satisfactory condition. The Contractor shall remove all such works and shall re-instate and
make good any work disturbed, to the satisfaction of the Engineer-in-Charge.
2.2.4. In the event of the Contractor’s drawing water from the Owner’s main/ source, he shall not
claim any compensation for interruption or failure of Owner’s water supply caused due to any
reasons beyond the control of the owner.
2.2.5. The water so supplied by the Owner shall be free of cost for the Constructional work only.
2.3. Power Supply:
2.3.1 Subject to availability, Owner will supply power at 400/440 V at only one point at the nearest
substation, from where the contractor will make his own arrangement for temporary distribution.
The point of supply will not be more than 500 Metres away from the Contractor’s premises. All
the works will be done as per IEA regulations and passed by the Engineer-in-Charge. The
temporary line will be removed forthwith after the completion of work or if there is any
hindrance caused to the other works due to the alignment of these lines, the contractor will re-
route or remove the temporary lines at his own cost. The Contractor at his cost will also
provide suitable electric metres, fuses, switches, etc. for purposes of payment to the Owner
which should be in the custody and control of the Owner. The cost of power supply shall be
payable to the owner every month. Rs. 1/- per kWh for power, which will be deducted from the
running bills. The owner shall not, however, guarantee the supply of electricity and no
compensation for any failure or short supply of electricity will be entertained and this does not
relieve the contractor of his responsibility for timely completion of this works as stipulated in the
contract.
2.3.2 It shall be the responsibility of the contractor to provide and maintain the complete installation
of the load side of the supply with due regard to safety requirement at site. All cabling,
equipment, installations etc. shall comply in all respects with the latest statutory requirements
and safety provisions i.e. as per and the Central/ State Electricity Acts and Rules etc. The
Contractor will ensure that his equipment and Electrical wiring etc. are installed modified,
maintained by a licensed Electrician/ Supervisor. A rest certificate is to be produced to the
Engineer-in-Charge for his approval, before power is made available.
2.3.3 At all times, IEA regulations shall be followed failing which the Owner has a right to disconnect
the power supply without any reference to the contractor. No claim shall be entertained for
such disconnection by the Engineer-in-Charge. Power supply will be reconnected only after
production of fresh certificate from authorised electrical supervisors.
2.3.4 The Owner is not liable for any loss or damage to the Contractor’s equipment as a result of
variation in voltage or frequency or interruption in power supply or other loss to the Contractor
arising there from.
2.3.5 The Contractor shall ensure that the Electrical equipment installed by him are such that
average power factor does not fall below 0.90 at his premises. In case power factor falls below
0.90 in any month, he will reimburse to the Owner at the penal rate determined by the Owner
for all units consumed during the month.

2.3.6 The Power supply required for Contractor’s colony near the plant site will be determined by the
Owner and shall as per state Electricity Board’s Rules and other Statutory provisions applicable
for such installations from time to time. In case of power supply to Contractor’s colony, the
power will be made available at a single point and the Contractor shall make his own

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arrangement at his own cost for distribution to the occupants of the colony as per Electricity
Rules & Acts. The site area and colony shall be sufficiently illuminated to avoid accidents.
2.3.7 The Contractor will have to provide and install his own light and power meters, which will be
governed as per Central/ State Government Electricity Rules. The meters shall be sealed by
the Owner.
2.3.8 In case of damage to any of the Owner’s equipment on account of fault, intentional or
unintentional on the part of the Contractor the Owner reserves the right to recover the cost of
such damage from the contractor’s bill. Cost of HRC Fuses replaced at the Owner’s terminals
due to any fault in the Contractor’s installation shall be to contractor’s account at the rates
decided by the Engineer-in-Charge.
2.3.9 Only motors upto 3 HP will be allowed to be started direct on line. For motors above 3 HP
and up to 100 HP a suitable starting devices approved by the Engineer-in-Charge shall be
provided by the Contractor For Motor s above 100 HP slipping induction motors will suitable
starting devices as approved by the Engineer-in-Charge shall be provided by the Contractor.
2.3.10 The Contractor shall ensure at his cost that all electric lines and equipment and all
installations are approved by the State Electricity Inspector before power can be supplied by
the Owner.
2.3.11 The total requirement of power shall be indicated by the tenderer along with his tender.
2.4.1. The Owner will at his discretion and convenience and for the duration of the execution of the
work may provide the land for construction of Contractor’s field office, godown, workshops and
assembly yard required for the execution of the contract nearer to the site.
2.4. Land for Contractor’s Filed Office, Godown and Workshop :
The Contractor shall at his cost construct all these temporary buildings structures and provide
suitable water supply and sanitary arrangement as approved by the Engineer-in-Charge and
other inspectorates.
2.4.2. On completion of the works undertaken by the Contractor, he shall remove all temporary
works erected by him and have the site cleared as directed by Engineer-in-Charge. If the
Contractor fails to comply with these requirements, the Engineer-in-Charge has the right to
remove any structure, such surplus, rubbish materials and depose off the same as he deems
fit and get the site cleared and the contractor shall forthwith pay the amount of all expenses so
incurred and shall have no claim in respect of any such surplus materials disposed as
aforesaid. The Owner reserves the right to ask the Contractor at any time during the
pendancy of the contract, to vacate the land by giving 7 (seven) days notice on security
reasons or on national interest or otherwise. A token rent of Rs. 100/- (Rupees One hundred
only) per hectare or part thereof per annum or part thereof shall be charged for the land so
made available.
Land provided shall be solely on licence basis which is terminable by at any time without
notice or without assigning any reasons. In the event of any such termination or the
termination of the contract/completion thereof, the contractor shall forthwith vacate the
premises.
2.5. Land for Residential Accommodation:
Land for residential accommodation for staff and labour may be made available at the
discretion of the Engineer-in-Charge and rent for the same will be as decided by the Engineer-
in-Charge according to location and the area occupied by the Contractor.

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SECTION - III
GENERAL INSTRUCTIONS TO TENDERERS

3. SUBMISSION OF TENDER:
3.1. The documents issued to the tenderers shall be as follows:
(i) One complete set of tender documents as per index sheet and drawings marked ‘ORIGINAL’
(To be submitted along-with the quotation).
(ii) One complete set of tender documents as per index sheet marked ‘TENDERER’S COPY’ (To
be retained by the tenderer for reference).
3.1.1. The tender documents shall be in 2 parts viz. Technical Bid and Price Bid. Technical and
Price Bid should be put in separate sealed cover and marked with the tender reference and
name of the work. In addition, a note on the Price Bid “Quotation do not open” is to be
superscribed. Both the sealed covers are to be put in a single sealed cover. The name of the
work the tender reference and date of opening are to be superscribed on this sealed envelope
also.
The technical Bid shall be opened in the first instance. Clarifications, confirmations, if any,
shall be obtained with regard to technical specifications. After technical specifications are
firmed up, if a tenderer revises his price bid, he is required to submit justification in support of
the revision made. The price bid shall be opened thereafter.
3.2. If Addenda/ Corrigenda are issued to this tender document, they must be signed, submitted
along-with the tender documents. The tenderer should write clearly the revised quantities in
schedule of Rates of Tender Document and should price the work based on revised quantities
when amendments on quantities are issued in addenda.
3.3. Tenderers are advised to submit quotations based strictly on the terms and conditions and
specifications contained in the tender documents and not stipulate any deviations. Should it
however become unavoidable, deviations should be stipulated in the prescribed proforma
only, contained in the proposal form. Owner reserves the right to evaluate the quotations
containing deviations having financial implications, by adding the cost for such deviations are
determined by Owner.
3.4. Tenders should be submitted in double sealed envelope with the name of work superscribed
thereon and with the note “QUOTATION DO NOT OPEN” written prominently. The full name,
postal address and telegraphic address of the tenderer shall be written on the bottom left hand
corner of the sealed cover.
4.0. DOCUMENTS:
4.1.1 Bidders shall submit with his bids the particular/ documents as envisaged from Appendix (i) to
(x) along with tentative construction net work/ Bar chart for completion of work taking into
account various intermediate completion milestones/ component milestones and the overall
completion of work under the contract.

4.1.2. Details to be submitted along with tender:

The tenders, as submitted will consist of the following:
The technical Bid and Price Bid shall be submitted as stated in para 3.1.1 Documents to be
attached with price bid.
(i) Complete set of the tender document (marked ORIGINAL) as issued duly filled in by the
tenderer as prescribed in different clauses of the tender document, signed and date
affixed.

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Documents to be attached with Technical Bid.

(ii) Earnest money in the manner specified in Clause 6 hereof.

(iii) The following proposal forms in FIVE copies
(a) Details of works of similar nature and magnitude carried out during last 5 years as
per the Appendix – 1(A)
(b) Concurrent commitments of the tenderer as per the Appendix – 1(B).
(c) Details of equipments, tools and tackles proposed to be deployed for this work as
per the Appendix – (II).
(d) Details of manpower proposed to be deployed for this work as per the Appendix –
(III), indicating the qualification.
(e) Site organisation chart showing number of qualified engineers and supervisors etc.
indicating their bio-data as per the Appendix – (IV), indicating the qualification.
(f) List of proposed sub-contractors to be deployed as per the Appendix – (V).
(g) Progress Billing as per the Appendix – (VI).
(h) Information about tenderers as per the Appendix – (VII).
(i) List of enclosures as per the Appendix – (VIII).
a) Power of attorney
b) Income tax & Sales tax clearance certificate.
c) Solvency certificate from nationalised Bank
d) Documents showing annual turnover.
(j) Exception and deviation which tenderer may desire to stipulate as per Appendix –
(IX).
4.2 All pages to be initialled:
All signatures in tender documents shall be dated, as well as the pages of all sections of
tender documents shall be initialled at the lower right hand corner or signed wherever
required in the tender papers by the tenderer or by a person holding power of attorney
authorising him to sign on behalf of the tenderer before submission of tender.

4.3. Rates to be in Figures and Words:

The tenderer shall quote in English, in figures and in words for the rates and amount tendered
by him in the Schedule of Rates forming part of the documents, in such a way that
interpolation is not possible. The amount of each item shall be worked out and entered and
requisite total given of all items. The tendered amount for the work shall be entered in the
tender and duly signed by the tenderer.

If some discrepancies are found between the rates given in works and figures or the amount
shown in the tender, the following procedure shall be followed:-
a) When there is difference between the rates in figures and words, the rate which
corresponds to the amount worked out by the tenderer shall be taken as correct.
b) When the rate quoted by the tenderer in figures and words tally but the amount is
incorrect, the rate quoted by the tenderer shall be taken as correct.
c) When it is not possible to ascertain the correct rate by either of above methods the rate
quoted in words shall be taken as correct.

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4.4. Corrections and Erasures:

All corrections and alterations in the entries of tender papers shall be signed in full by the
tenderer with date. No erasures or over writings are permissible.

4.5. Signature of Tenderer:

4.5.1. The tender shall contain the name, residence and place of business of person or persons
making the tender and shall be signed by the tenderer with his usual signature. Partnership
firms shall furnish the full names of the partners in the tender. It should be signed in the
partnership’s name by all the partners or by duly authorised representative followed by the
name and designation of the person signing. Tender by a corporation shall be signed by an
authorised representative and a power of attorney on the behalf shall accompany the tender.
A copy of constitution of the firm with names of all partners shall be furnished.
4.5.2. When the tenderer signs a tender in a language other than English, the total amount tendered
should in addition be written in the same language. The signature should be attested by at
least one witness.
4.6 Witness: Witness and sureties shall be persons of status and property. Their name
occupation and address shall be stated below their signature.

5. TRANSFER OF TENDER DOCUMENTS:

Transfer of tender document purchased by one intending tenderer to another is no permissible.
6. EARNEST MONEY:
6.1. The tenderer must pay earnest money as given in the Letter/ Notice Inviting Tenders. Tenders
not accompanied with earnest money deposit will be rejected. The earnest money can be paid
in cash or by crossed demand draft or fixed deposit or Bank Guarantee from any Nationalised/
Scheduled Bank or Insurance Guarantee in the prescribed proforma as indicated in the tender
document in favour of National Aluminium Company Ltd.

6.2. The Bank Guarantee so furnished by the tenderer shall be only in the proforma prescribed by
the Owner and valid for six months from the date of opening of the tender. No interest shall be
paid by the Owner on the Earnest Money deposited by the tenderer.

7. VALIDITY: Tender submitted by tenderers shall remain valid for acceptance for a period of four
months from the date of opening of the tender. The tenderers shall not be entitled during the
said period of four months, without the consent in writing of the Owner, to revoke or cancel his
tender or to vary the tender given or any term thereof. In case of tenderer revoking or
canceling his tender or varying any terms in regard thereof without the consent a Owner in
writing, the earnest money paid by him along-with the tender shall be forfeited.

8. ADDENDA/ CORRIGENDA:
8.1. Addenda/ Corrigenda to the tender documents may be issued prior to the date of opening of the
tenders to clarify documents or to reflect modification in the design or contract terms.

8.2. The Addenda/ Corrigenda will be issued in duplicate to each person or organisation to whom a
set of tender documents has been issued. Each recipient should acknowledge the receipt of the
same and attach one copy of the addenda/ corrigenda along-with his offer. All addenda/
corrigenda issued shall become part of Tender Documents.

9. RIGHT OF OWNER TO ACCEPT OR REJECT TENDER:

9.1. The right to accept the tender will rest with the Owner. The Owner further does not bind himself
to accept the lowest tender and reserves the authority to reject any or all the tenders received
without assigning any reason whatsoever. The whole work may be split up between two or

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more contractors or accepted in part (not entirely) if considered expedient. The quoted rates
would hold good for such eventualities. Tenders in which any of the particulars and prescribed
information are missing or incomplete in any respect and / or the prescribed conditions are not
fulfilled are liable to be rejected. The decision for the owner in respect of the above shall be
final and binding on the contractor.
9.2. Canvassing in connection with tenders is strictly prohibited. The submitted tenders of the
tenderers who resort to canvassing are liable to rejection. Tenders containing uncalled remarks
or any additional conditions are liable to be rejected.
10. THE SCHEDULE:
10.1. The work shall be executed strictly as per the Time Schedule given in Appendix –1. The period
of construction given in time Schedule includes the time required for mobilisation as well as
testing, rectification if any, re-testing and completion in all respects to entire satisfaction of the
Engineer-in-Charge.
10.2. A joint programme of execution of the work will be prepared by the Engineer-in-Charge and
contractor based on priority requirement of this project. This programme will take into account
the time of completion mentioned in 19.1 above and the time allowed for the priority works by
the Engineer-in-Charge.
10.3. Monthly/ weekly construction programme will be drawn up by the Engineer-in-Charge jointly
with the Contractor, based on availability of work fronts and the joint construction programme
as per 10.2 above. The contractor shall scrupulously adhere to these targets/ programs by
deploying adequate personnel construction tools and tackles and he shall also supply himself
materials of his scope of supply in good time to achieve the targets/ programmes. In all
matters concerning the extents of targets set out in the weekly and monthly programmes and
the degree of achievement, the decision of the Engineer-in-Charge will be final and binding on
the contractor.
10.4. CONSTRUCTION SCHEDULE AND PRESENTATION:
The construction schedule shall be in the form of network of PERT CHART/ CPM or other
suitable presentation for the programme of the work indicating therein the different components
item of works and time required for completion of each components item wise/ month wise
season wise so as to complete the work in all respects within the stipulated period. Before
award of the work the contractor is also required to make the presentation to satisfy owner of
their proposal for construction schedule in the form of BAR CHART and organizational
resources, equipments, machinaries, manpower to be deployed for timely completion of the
project.

11. TENDERER’S RESPONSIBILITY:

The intending tenderers shall be deemed to have visited the site and familiarised themselves
thoroughly with the site conditions before submitting the tender. Non-familiarity with the site
conditions will not be considered a reason either for extra claims or for not carrying out the
works in strict conformity with the drawings and specifications.

12. RETIRED GOVERNMENT OR COMPANY OFFICERS:

No Engineer of Gazetted rank or other Gazetted Officer employed in Engineering or
Administrative duties in an Engineering department of the State/ Central Government or of the
owner is allowed to work as a contractor for a period of two years after his retirement from
Government service or from the employment of the Owner without the previous permission of
the Owner. The contract if awarded, is liable to be cancelled if either the contractor or any of
his employees is found at any time to be such a person, who had not obtained permission of
the owner as aforesaid before submission of tender or engagement in the contractor’s service
as the case may be.

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13. SIGNING OF THE CONTRACT: The successful tenderer shall be required to execute an
agreement with the Owner in the proforma attached with tender document within 10 days of the
receipt by him of the notification of acceptance of the tender. In the event of failure on the part
of the successful tenderer to sign the agreement within the above stipulated period, the earnest
money or his initial security deposit will be forfeited and the acceptance of the tender shall be
considered as cancelled. No bills shall be payable unless the agreement is executed.

14. FIELD MANAGEMENTS AND CONTROLLING AUTHORITY:

14.1 The field management will be responsibility of the Project Manager posted at site by the
consultant and nominated by the owner. The Project manager shall work in accordance with
the directions given to him from time to time by the project head.

14.2. The Engineer-in-Charge shall only co-ordinate with the other agencies engaged to work at site,
to ensure minimum disruption of work carried out by different agencies. It shall be the
responsibility of the contractor to plan and execute the works strictly in accordance with site
instructions and avoid hindrance to the works being executed by other agencies. The
instructions of the Engineer-in-Charge shall be binding on the contractor.

15. NOTE TO SCHEDULE OF RATES:

15.1. The schedule of rates should be read in conjunction with all the other sections of the tender.
15.2. The tenderer shall be deemed to have studied the drawings, specifications and details of work
to be done within time schedule and to have acquainted himself of the conditions prevailing at
site.
15.3. Rates must be filled in the original tender document. If quoted in separate typed sheets, no
variation in time description or specification shall be accepted. Any exceptions taken by the
tenderer to the schedule of rates shall be brought out in the terms and conditions of offer.
15.4. The quantities shown against the various items are only approximate. Any increase or
decrease in the quantities shall not form the basis of alternation of the rates quoted and
accepted.
15.5. The owner reserves the right to interpolate the rates for such items of work falling between
similar items of lower and higher magnitude.

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SECTION - IV
GENERAL OBLIGATIONS

16. INTERPRETATION OF CONTRACT DOCUMENTS:

16.1. Complete documents forming the contract are to be taken as mutually explanatory. Should
there by any discrepancy, inconsistency, error or omission in the contracts or any of them the
matter may be referred to Engineer-in-Charge who shall give decisions and Issue to the
contractor instructions directing in what manner the work is to be carried out. The decision
of Engineer-in-Charge shall be final and conclusive and the contractor shall carry out work in
accordance with this decision.
16.2. Works shown in the drawing but not mentioned in the specification or described in
specification but not shown in the drawings shall nevertheless be deemed to be included in
the same manner as if they had been specifically shown upon the drawings as well as
described in the specifications.
16.3. Unless otherwise stated specifically, the ‘singular’ shall also mean ‘plural’ and vice versa
wherever the context so requires words implying ‘persons’ shall include relevant ‘corporate
companies or registered association’ or ‘body of individuals’ or ‘firm of partnership’ as case
may be.
17. SPECIAL CONDITIONS OF CONTRACT:
17.1. Special Conditions of Contract shall be read in conjunction with the General Condition of
Contract Specifications of work, drawing and any other documents forming part of this
contract wherever the context so requires.
17.2. Notwithstanding the sub-divisions of the documents into the separate sections and volumes
each part shall be deemed to be supplementary to complementary of every other part and
shall be read with and into the contract so far as it may be practicable to do so.
17.3. In case of any discrepancy between various sections of the contract, the following order of
preference shall be observed.
(1) Schedule of quantities
(2) Technical specifications
(3) Special Conditions of Contract
(4) General Conditions of Contract
17.4. Wherever it is mentioned in the specifications that the Contractor shall perform certain work
or provide certain facilities it is understood that the Contractor shall do so at his cost.
17.5. The materials, design and workmanship shall satisfy the relevant Indian Standard, the job
specifications contained herein and codes referred to. Where the job specifications stipulate
the requirements in addition to those contained in the standard codes and specification,
these additional requirements hall also be satisfied.
18. Tenderer to Obtain his Own Information:
18.1. The tenderer shall for all purposes and whatsoever reason may be, deemed to have himself
independently obtained all necessary information for the purpose of preparing his tender.
The correctness of the details given in the Tender Document as guideline information to help
the tenderer but to make-up the tender is not guaranteed.
18.2. The tenderer shall be deemed to have examined the tender documents, to have obtained his
own information in all matters whatsoever that might influence carrying out of the works at the
scheduled rates and satisfied himself to the sufficiency of his tender. Any error in description
or quantity or omission therefrom shall not vitiate the contract or release the contractor from
executing the work comprised in the contract according to drawings and specifications at the
scheduled rates. He is deemed to know the scope, nature and magnitude of the works, the
requirements of materials and labour involved etc. and as what works he has to complete in

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accordance with the contract document whatever be the defects, omissions or errors that
may be found in the Contract Document. The contractor shall be deemed to have visited site
and surroundings areas, to have satisfied himself to the nature of all existing structures, and
also as to the nature and the conditions of available facilities like Railways, roadways,
bridges culverts, means of transport and communications like by land, water or air and
possible interruptions thereto the access to and egress from site and to have made enquiries,
examined satisfied himself of the sites for obtaining sand, stones, bricks and other materials,
the sites for disposal of surplus materials, the available accommodation like depots, buildings
as may be necessary for executing and completing the works, to have made local
independent enquiries as to the sub-soil water and variations thereof, storms, prevailing
winds and climatic conditions and all other similar matters affecting the works. He is deemed
to have acquainted himself his liability for payment of Government Taxes, Customs Duties
and other charges.
18.3. Any neglect or failure on the part of the tenderer in obtaining necessary and reliable
information or issues stated at 18.2 or any other matters affecting the contract shall not
relieve him from any risks or liabilities or the entire responsibility for completion of the works
at the scheduled rates and time in strict accordance with the contract documents.
18.4. Any change in layout due to site conditions or technological requirement shall be binding on
the contractor and no extra claim on this account shall be entertained.
18.5. No verbal agreement or inference from conversation with any officer or employee of the
Owner either before, during or after the execution of the contract agreement shall in any way
affect or modify and of the terms or obligations herein contained.
19. Security Deposit:
19.1. A sum of 10% of the accepted value of the tender or actual value of the work done whichever
is higher for contracts not exceeding Rs. 1 Crore, 71/2 % for the value of contracts over Rs. 1
up to Rs. 5 crores and 5%for the value of contracts over Rs. 5 crores shall have to be
deposited by the person/ persons (hereinafter called as contractor) as security deposit with
the owner until the expiry of defect liability period.
19.2. This may be deposited initially at 2 ½% of the value of the contract (referred as initial Security
deposit) within 20 days of receipt by him of the notification of acceptance of tender and the
balance will be recovered in installments through the deduction @ 10% of the gross value of
the each running account bill for the contract upto Rs. 1 crore, 71/2 % for contract between
Rs. 1 to Rs.5 crores and 5% for contract over Rs. 5 crores, till total security deposit is
collected. No further deduction from the bills will be made on this account subject to clause
19.6 below.
19.3. Alternatively the contractor may at his option to deposit the full amount percentage as
mentioned 19.1 above towards deposit within 10 days of issue of notification accepting his
tender. This amount will have to be suitably enhanced to the tune of above percentage of the
executed value.
19.4. The earnest money deposited with the tender shall be adjusted towards security deposit.
19.5. Contractor can furnish the initial or total security deposit amount (a) in Demand Draft or (b)
through a Bank Guarantee from any Scheduled bank in the prescribed proforma.
19.6. If contractor /sub-contractor or their employees damages, breaks, deface or destroy the
property belonging to the owner or other during the execution of the contract, the same shall
be made good by the contractor at his own expense and in default thereof; the Engineer-in-
Charge may cause the same to be made good by other agencies and recover expenses form
the contractor (for which the certificate of Engineer-in-Charge shall be final).
19.7. All compensation or other sums of money payable by the contractor to the Owner or
recoveries to be made under terms of this contract may be deducted from or paid by the sale
of a sufficient part of his security deposit or from any sums which may be due or may become
due to the contractor by the Owner on any account whatsoever. In the event of his security
being reduced by reasons of any such deduction or sale, the contractor shall within ten days
thereafter make good in cash, bank drafts, any sum or sums which may have fallen short or

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Security deposit amount or any part thereof. No interest shall be payable by the Owner for
sum deposited as security deposit.
19.8. The security deposit will be refunded after the expiry of the period of liability as stipulated in
the contract.
20. Forfeiture of Security Deposit: Whenever any claim against the Contractor for the payment
of a sum of money arises out of or under the contract, the Owner shall be entitled to recover
such sum by appropriating in part or whole the security deposit of the contractor, and to sell
any Government securities, etc. forming whole or part of such security deposit. In the event
of security being insufficient or if no security has been taken from the contractor, then the
balance or the total sum recoverable as the case may be, shall be deducted from any sum
then due or which at any time thereafter may become due to the contractor. The contractor
shall pay to the Owner on demand any balance remaining due.
In the event of any breach by the contractor or any loss or damage occasioned to the owner
which in the opinion of the owner has arises, the decision where of shall be final and binding
on the contractor or in the event of the termination of the contract for any such breach, the
security deposit is liable to be forfeited. The decision of forfeiture by the Owner shall be final
and binding on the contractor.
21. Time of performance:
The work covered by this contract shall be commenced within twenty one days after the issue
of the letter of acceptance of tender and be completed in stages on or before the dates as
mentioned in the time schedule of completion of works. The contractor should bear in mind
that time is the essence of the contract, unless such time be extended pursuant to the
provision of clause No.22 Request for Revision of Construction time after tenders are
opened will not receive consideration. The above period of twenty one days is included
within the overall completion schedule, not over and above the completion time.
22. Extension of Time.
22.0. The application for extension of time is to be given to project head through the engineer –in-
charge and the project head may authorise extension of time after considering the due
merits.
Whenever extension of time is granted by the project head, the same shall be on the existing
terms and conditions of the contract and without any additional financial liability to the Owner.
The contractor in any case shall have no claim whatsoever for any type of compensation on
account of any delay attributable to any one.
23. Force Majeure:
23.1 Any delays in or failure of the performance of either parties thereto shall not constitute
default hereunder or give rise to any claims for damages, if any, to the extent such delays or
failure of performance caused by occurrences such as acts of God or the public enemy,
expropriation or confiscation of facilities by Government authority, compliance with any order
or request of any Governmental authorities, acts or war rebellion, sabotage, fire, floods,
explosions riots or illegal strikes, provided always that such occurrences result in impossibility
of performances of the contract.
23.2 Only events of Force Majeure which impedes the execution of the contract at the time of its
occurrence shall be taken into cognizance.
24. Compensation For Delay:
24.1. Time is essence of the contract. In case the contractor fails to complete the work within the
stipulated period, he shall be liable to pay to the Owner as compensation, an amount equal to
1% of the value of contract per week of the delay subject to a maximum of 10% of the value
of the contract. This is a genuine pre-estimate of the loss/ damage which will be suffered on
account of delay /breach on the part of the contractor and he agrees to pay the said amount
on demand without going in for any proof of the actual loss or damages caused by such
delay/ breach.

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24.2. To ensure good progress during execution of work, the contractor shall be bound in all case in
which the time allowed for any work exceeds by one month to complete one-fifth of the work
before one-fourth of the time allowed under the contractor has elapsed, three-eighth of the
work before the half of such time has elapsed and three-fourth of the work before three–fourth
of such time has elapsed. In the event of the contractor failing to comply with this condition, he
shall be liable to pay as compensation for delay an amount as stipulated above. The
compensation for delay so paid shall not relieve the contractor from his obligations to complete
the work or from any other obligations and liabilities under this contract.
25. Failure by the Contractor to Comply with the Provisions of the Contract:
25.1. If the contractor refuses or fails to execute the work or any separate part thereof with such
diligence as will ensure its completion within the time specified in the contract or extension
thereof or fails to perform any of his obligation under the Contract or in any manner commits a
breach of any of the provisions of the contract it shall be open to the Owner at its option by
written notice to the Contractor to: -
(a) Determine the Contract: In which event the Contract shall stand terminated and shall cease to
be in force and effect on and from the date appointed by the Owner on that behalf, whereupon
the contractor shall stop forth with any of the contractor’s work then in progress, except such
work as the Owner may, in writing, requires to be done to safeguard any property or work, or
installations from damage, and the owner, for its part, may take over the work remaining
unfinished by the Contractor and complete the same through fresh contractor or by other
means, at the risk and cost of the Contractor, and any of his sureties if any, shall be liable to
the owner for any excess cost occasioned by such work having to be so taken over and
completed by the Owner over and above the cost at the rates specified in the schedule of
quantities and rates.

(b) Without determining the Contract: To take over the work of the contractor or any part thereof
and complete the same through a fresh contractor or by other means at the risk and cost of the
Contractor. The contractor and any of his sureties are liable to the Owner for any excess cost
over and above the cost at the rates specified in the schedule of quantities/ rates, occasioned
by such works having been taken over and completed by the Owner. Besides, the contractor
shall also be liable for any compensation accruing under clause 24.

(c) In other cases, the decision of the Owner is binding on the contractor.
25.2. In such events of clause 25.1 (a) or (b) above
(a) The whole or part of the security deposit furnished by the Contractor is liable to be forfeited
without prejudice to the right of the Owner to recover from the contractor the excess cost
referred to in the sub-clause aforesaid, the Owner shall also have the right of taking possession
and utilizing in completing the works or any part thereof, such of materials, equipment and
plants available at work site belonging to the contractor as may be necessary and the
Contractor shall not be entitled for any compensation for use or damage to such materials,
equipment and plant.
(b) The amount that may have become due to the Contractor on account of work already executed
by him shall not be payable to him until after the expiry of six (6) calendar months reckoned
from the date of termination of contract or from the taking over of the work or part thereof by
the Owner as the case may be, during which period the responsibility for faulty materials or
workmanship in respect of such work shall under the contract, rest exclusively with the
contractor. This amount shall be subject to deduction of any amounts due from the Contractor
to the Owner under the terms of the contract authorised or required to be reserved or retained
by the Owner.
25.3. Before determining the contract as per clause 25.1 ( a) or (b) provided in the judgement of the
Owner, the default or defaults committed by the Contractor is/are curable and can be cured by

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the Contract if an opportunity given to him, then the Owner may issue notice in writing calling
the Contractor to cure the default within such time specified in the notice.
25.4. The Owner shall also have the right to proceed or take action as per 25.1 (a) or Clause 25.1(b)
above, in the event that the contractor becomes bankrupt, insolvent, compounds with his
creditors, assigns the contract in favour of his creditors or any other person or persons or being
a company or a corporation goes into liquidation, provided that in the said events it shall not be
necessary for the Owner to give any prior notice to the contractor.
25.5. Termination of the Contract as provided for in sub-Clause 25.1 (a) above shall not prejudice or
affect their rights of the Owner which may have accrued upto the date of such termination.
26. Contractor Remains Liable to Pay Compensation if Action Not Taken Under Clause 25.
In any case in which any of the powers conferred upon the owner by clause 25 hereof shall
have become exercisable and the same had not been exercised, the non-exercise thereof shall
not constitute a waiver of any of the conditions hereof and such powers shall not withstanding
be exercisable in the event of any further case of default by the contractor for which by any
clause or clauses hereof he is declared liable to pay compensation amount to the whole of his
security deposit and the liability of the contractor for past and future compensation shall remain
unaffected. In the event of the Owner putting in force the powers vested in him under the
proceeding clause no. 25 he may if he do so desires, take possession of all or any tools and
plants, materials and stores in or upon the works of the site thereof belonging to the contractor
or procured by him and intended to be used for the execution of the work or any part thereof
paying or allowing for the same in account at the contract rates or in case of these not being
applicable at current market rates to be certified by the Engineer-in-Charge whose certificate
thereof shall be final, otherwise the Engineer-in-Charge may give notice in writing to the
contractor or his clerk of the works, foremen or other authorised agent, requiring him to remove
such tools, plant, materials or stores form the premises (within a time to be specified in such
notice), and in the event of the contractor failing to comply with any such requisition, the
Engineer-in-Charge may remove them at the contractor’s expenses or sell them by auction or
private sale on account of the contract and at his risk in all respects without any further notice
as to the date, time or place of sale and the certificate of the Engineer-in-Charge as to the
expense of any such removal and the amount of the proceeds and expenses of any such sale
shall be final and conclusive against the contractor.
27. No Compensation For Alteration in or Restriction of Work:
At any time from the commencement of the work if the Owner decides for whatsoever reason,
not to carryout the whole work or part thereof as specified in the tender, then owner shall give
notice in writing of the fact to the contractor, who shall have no claim to any payment or
compensation on whatsoever account (profit or advantage which he might have derived by
executing the work in full) neither shall he have any claim for compensation by reason of any
alterations having been made from the original specifications, drawings, designs and
instructions which may involve any curtailment of the work as originally contemplated.

28. Change in Constitution:

When the contractor is a partnership firm the prior approval in writing from the Owner shall be
obtained before any changes are made in the constitution of the firm, where the contractor is
an individual or a Hindu undivided family business concern. Such approval as aforesaid shall,
like wise be obtained before such contractor enters into any agreement with other parties,
where under the reconstituted firm would have the right to carry out the work hereby
undertaken by the contractor. In either case if prior approval is not obtained. The contractor
shall be deemed to have been allotted in contravention of Clause - 34 hereof and the action
and consequence shall ensure as provided in that clause.
29. Termination of Contract For Death:
If the Contractor is an individual or a proprietary concern and the individual or the proprietor

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dies or if the contractor is a partnership concern and one of the partners dies then, unless the
Owner is satisfied that the legal representative of the individual or the proprietary concern or
the surviving partners are capable of carrying out and completing contract, he (the Owner) is
entitled to cancel the contract for the uncompleted part without being in any way liable for any
compensation payment to the estate of the diseased contractor and/or to the surviving partners
of the contractor’s firm on account of the cancellation of contract. The decision of the Owner in
such assessment shall be final and binding on the parties. In the event of such cancellation,
the Owner shall not hold the estate of the diseased contractor and / or the surviving partners of
the contractor’s firm liable for any damages for non-completion of contract.

30. Members of the Owner Not individually Liable:

No Director or official or employee of the Owner shall in any way be personally bound or liable
for the acts or obligations of the Owner under the contract or answerable for any default or
omission in the observance or performance of the acts, matters or things which are herein
contained.

31. Owner Not Bound by Personal Representation:

The Contractor shall not be entitled to any increase on the scheduled rates or any other rights
or claims whatsoever by reason of any representation, explanation, statement or alleged
understanding promise or guarantees given or to have been given to him by any person.
32. Contractors Office at Site:

The Contractor shall provide and maintain an office at the site for the accommodation of his
agent and staff and such office shall be open at all reasonable hours to receive instructions,
notices or other communications. The contractor at all time shall maintain a site instruction
book and compliance of these shall be communicated to the Engineer –in-Charge from time to
time and the whole document to be preserved and handed over after completion of works.

33. Contractor’s Sub-ordinate Staff and their conduct :

33.1. The contractor on award of the work shall name and depute a qualified engineer having
sufficient experience in carrying out work of similar nature to whom the equipment, materials if
any, shall be issued and instruction for works given. The contractor shall also provide to the
satisfaction of the Engineer-in-charge sufficient and qualified staff to supervise the execution of
the works, competent sub-agents, foremen and leading hands including those specially
qualified by previous experience to supervise the types works comprised in the contract in such
manner as will ensure the best quality and expeditious working. At any time of in the opinion of
the Engineer-in-Charge any additional, qualified experienced staff is considered necessary,
they shall be employed by the contractor without additional charge. The contractor shall
ensure to the satisfaction of the Engineer-in-Charge that sub-contractors, if any, shall provide
competent and efficient supervision over the work entrusted to them.

33 .2. If any of the contractor’s sub-contractor’s, agents, sub-agents, assistants, foremen or any
employee in the opinion of Engineer-in-Charge be guilty of any misconduct or be incompetent
or insufficiently qualified or negligent in the performance of their duties or that in the opinion of
the Owner Engineer-in-Charge, undesirable for administrative or any other reasons, for such or
person (s) to be employed on the works, then at the directions of Engineer-in-Charge the
Contractor shall at once remove such person (s) from employment with the works without the
written permission of the Engineer –in-Charge. Vacancy so created shall be immediately filled
at the expenses of the contractor by a qualified and competent substitute. Should the
contractor be requested to repatriate any person removed from the works he shall do so and
shall bear all costs in connection therewith.

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33.3. The contractor shall be responsible for the proper behaviour of all the staff, foremen, workmen
and others, shall exercise proper degree of control over them and in particular without prejudice
to the said generality the contractor shall be bound to prohibit/ prevent any employees from
trespassing or acting in any way detrimental or prejudicial to the interest of the community or the
properties or the occupiers of land or properties in the neighborhood. In the event of such
trespassing, the contractor shall be responsible for all consequent claims or actions for
damages or injury or any other grounds whatsoever. The decision of the Engineer-in-Charge
upon any matter arising under this clause shall be final.
33.4. If and when required by the Owner, all contractor’s personnel entering upon the owner’s
premises shall be properly identified by badges of a type acceptable to the owner which must be
worn at all times on Owner’s premises.
33.5. It is made clear that no relationship of employer and employee is created between the owner
and the contractor labourer and no claim for employment of any such labourer shall be tenable
or entertained.

34. Sub-Letting Work:

34.1. No part of the contract nor any share or interest there in shall in any manner or degree be
transferred, assigned or sublet by the contractor directly or indirectly to any person, firm or
corporation whatsoever except as provided for in the succeeding sub-clauses without the
consent in writing of the Owner.
34.2. Sub – Contracting of Works:
The Engineer-in-Charge may give written consent to sub-contract for the execution of any part
of the works at the site, provided the contractor submits each individual sub-contract to the
Engineer-in-Charge for approval of mode of operation and agency for the work. The contractor
is advised not to enter into contract before the consent of Engineer-in-Charge.

34.3. List of sub-contracted works to be furnished:

At the commencement of each month, the contractor shall furnish to the Engineer-in-charge, a
list of sub-contractors, persons or firms engaged by the contractor and worked at the site during
the previous month with particulars like general nature of the sub-contract or works done by
them.

34.4. Contractor’s liability not Limited by Sub-Contractors:

Notwithstanding any sub-letting with such approval as aforesaid and notwithstanding that the
Engineer-in-Charge shall have received copies of any sub-contracts, the contractors shall be
and shall remain solely responsible for the quality and proper and expeditious execution of the
works and the performance of all the conditions of the contract in all respects as if such sub-
contract or sub-letting had not taken place, and as if such work had been done directly by the
contractor.

34.5. Owner may terminate sub-contracts:

If any sub-contractor engaged upon the works at the site executes any work which in the opinion
of the Engineer-in-Charge is not in accordance with the contract documents, the owner may by
written notice to the contractor request him to terminate such sub-contract. The contractor upon
the receipt of such notice shall terminate and dismiss the sub-contract and the sub-contractor.
The owner shall have the right to remove such sub-contractor from the site if contractor fails to
vacate the sub-contractor immediately.

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34.6. No remedy for action taken under this clause:

For action taken by the owner under the clause shall not relieve the contractor of any of his
liabilities under the contract or give rise to any right or compensation, extension of time or
otherwise.

35. Power of Entry:

If the contractor shall not commence the work in the manner described in the contract
documents or if he at any time in the opinion of the Engineer-in-Charge.

(i) fail to carry on the works in conformity with the contract documents or
(ii) fail to carry on the works in accordance with the contract schedule or
(iii) substantially suspend work or the works for a period of fourteen days without authority
from the Engineer-in-Charge or
(iv) fail to carry on and execute the works to the satisfaction of Engineer-in-Charge or
(v) fail to supply sufficient or suitable constructional plant, temporary works, labour materials
or other things or
(vi) Commit, suffer or permit any other breach of any of the provisions of the contract on his
part to be performed or observed or persist in any of the above mentioned breaches of
the contract for fourteen days, after notice in writing shall have been given to the
contractor by the Engineer-in-Charge requiring such breach to be remedied or
(vii) If the contractor abandons the works or
(viii) If the contractor during the continuance of the contract shall become bankrupt, make any
arrangement or composition with his creditors, or permit any execution to be levied or go
into liquidation whether compulsory or voluntary not being merely a voluntary liquidation
for the purpose of amalgamation or reconstruction then in any such case, the owner shall
have the power to enter upon the works and take possession thereof and of the
materials, temporary works, constructional plant, and stock thereon, and to revoke the
contractor’s licence to use the same, and to complete the works by his agents, other
contractors, or workmen, or to relate the same upon any terms and to such other person,
firm or corporation as the Owner in his absolute discretion may think proper to employ
and for the purpose aforesaid to use or authorize the use of any materials, temporary
works, constructional plant, and stock as aforesaid, without making payment or allowance
to the contractor for the said materials other than such as may be certified in writing by
the Engineer-in-Charge to be reasonable, and without making any payment or allowance
to the contractor for the use of temporary said works, constructional plant and stock or
being liable for any loss or damage thereto and if the Owner shall by reason or his taking
possession of the work or of the works being completed by other contractor (due account
being taken of any such extra work or works which may be omitted) than the amount of
such excess as certified by the Engineer–in-Charge shall be deducted form any money
which may be due for work done by the contractor under the contract and not paid for any
deficiency shall forthwith be made good and paid to the Owner by the contractor and the
Owner shall have power to sell in such manner and for such price as he may think fit all
or any of the constructional plan, materials etc. constructed by or belonging to and to
recoup and retain the said deficiency or any part thereof out of the proceeds or the sale.
36. Contractor’s Responsibility with other Agencies:
36.1 Without repugnance to any other condition, it shall be the responsibility of the contractor
executing the work of civil construction to work in close cooperation and to coordinate in
the works with the mechanical, electrical, air-conditioning and intercommunication
contractors and other agencies or their authorised representatives, in providing the
necessary grooves, recesses, cuts and opening etc. in wall, slabs beams and column etc.
and making good the same to the desired finish as per specification, for the placement of

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electrical and intercommunication cables, conduits, air-conditioning inlets and outlets,

grills and other equipment in the false ceiling and other partitions, the contractor before
starting up the work shall in consultation, with the electrical, mechanical, inter-
communication, air-conditioning contractors and other agencies prepare and put up a
joint scheme, showing the necessary opening, grooves, recesses, cuts, the methods of
fixing required for the works of the aforesaid, and the finishes therein, to the Engineer-in-
Charge and get the approval. The contractor before finally submitting the scheme to the
Engineer-in-Charge, shall have the written agreement of the other agencies. The
Engineer-in-Charge, before communicating his approval to the scheme, with any required
modifications shall get the final agreements of all the agencies, which shall be binding.
No claim shall be entertained on account of the above.

36.2 The contractor shall conform in all respect with the provisions any statutory regulation,
ordinance or bye-laws of any local or duly constituted authorities or public bodies which
may be applicable from time to time to the works or any temporary works. The contractor
shall keep the Owner indemnified against all penalties and liabilities of every kind, arising
out of non-adherence to such statues, ordinances, laws, rules, regulations, etc.

37. Other Agencies at Site:

The contractor shall have to execute the work in such place and condition where other
agencies will also be engaged for other works such as site grading, filling and leveling,
electrical and mechanical engineering works etc. No claim shall be entertained due to
work being executed in the above circumstances.

38. Serving of Notices:

38.1. To the Contractor:
Any notice may be served on the contractor or his duly authorised representatives at the
job site or by registered mail directly to the address furnished by the contractor. Proof of
issue of such notice should be conclusive of the contractor having been duly informed of
the contents.

38.2. To the Owner:

Any notice to be given to the Owner under the terms of the contract shall be served by
sending the same by Registered mail to or delivering the same at the respective site
offices of M/s. National Aluminium Co. Ltd. addressed to the head/ site in-charge.

38.3. Rights of various Interests:

(i) The Owner reserves the right to distribute the work between more than one contractor.
The contractor shall cooperate and afford the other contractors all reasonable opportunity
for access to the works for the carriage and storage of materials and execution of their
works.
(ii) Wherever the work being done by any department of the Owner or by the contractor
employed by the Owner as per the contingent upon work covered by this contract, the
respective rights and various interests involved shall be determined by the Engineer-in-
Charge to secure the completion of the various portions of the work in general harmony.

40. Patents, Royalties, Rent and Excavated Material:

40.1. The contractor, if licensed under any patent covering equipment, machinery, materials or
compositions of matter to be used or supplied or methods and process to be practiced or
employed in the performance of this contract, agrees to pay all royalties and licence fees
which may be due with respect thereto. If any equipment, machinery, materials
composition matters, to be used or supplied or methods and processes to be practiced or

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employed the performance of this contract, is covered by a patent under which the
contractor is not licensed then the contractor before supplying or using the equipment,
machinery, materials, composition, method or processes shall obtain such licenses and
pay such royalties and license fees as may be necessary for performance of this contract.
In the event the contractor fails to pay any royalty or obtain any such license, any suit for
infringement of such patents which is brought against the contractor or the Owner as a
result of such failure will be defended by the contractor at his Own expense and the
contractor will pay damages and costs awarded in such suit. The contractor shall
promptly notify the Owner if the contractor has acquired knowledge of any plant under
which a suit for infringement could be reasonably brought because of the use by the
owner of any equipment, machinery, materials, process, methods, to be supplied
hereunder. The contractor agrees to and does hereby grant to Owner, together with the
right to extent the same to any of the subsidiaries of the Owner as irrevocable, royalty-
free licence to use in country, any invention made by the contractor or his employee in or
as a result of the performance of the work under the contract.
40.2. All charges on account of royalty, tollage, rent octroi terminal or sales tax and/ or other
duties or any other levy on materials obtained for the work or temporary work or part
thereof (excluding materials provided by the Owner) shall be borne by the contractor.
40.3. The contractor shall not set or otherwise dispose of or remove except for the purpose of
this contract, the sand stone, clay, ballast, earth, rock or other substances, or materials
obtained from any excavation made for the purpose of the works or any building or
produce upon the sited at the time of delivery of the possession thereof, but all such
substances, materials buildings and produce shall be the property of the Owner provided
that contractor may with the permission of the Engineer-in-Charge, use the same for the
purpose of the works by payment of cost of the same at such a rate as may be
determined by the Engineer-in-Charge.

The Owner shall indemnify and save harmless the contractor from any loss on account of
claims against contractor for the contributory infringement of patent rights arising out and
based upon the claim that the use by the Owner of the process included in the design
prepared by the Owner and used in the operation of the plant infringes on patent right.
With respect of any sub-contract entered into by the contractor pursuant to the provisions
on the respect to any sub-contract entered into by the contractor pursuant to the
provisions of the relevant clause thereof, the contractor shall obtain from the sub
contractor an undertaking to provide the Owner with the same patent protection that
contractor is required to provide under the provisions of this clause.

41. Liens:
41.1. If at any time there should be evidence or any lien, claim for which the Owner might have
become liable, which is chargeable to the contractor, then the Owner may pay and
discharge the same and deduct the amount so paid from any amount which may be or
may become due and payable to the contractor, if any lien or claim remain unsettled after
all payments are made, the contractor shall refund or pay to the Owner the cost such lien
or claim including all payment and reasonable expenses. Owner reserves the right to the
same.
41.2. Nothing Extra for Adverse Sub-Soil Conditions:

The nature of sub-soil of the work site varies widely horizontally and vertically. The KI
and KII values also vary widely from place to place. In addition the water bearing seems
are also conspicuous with the water table at a depth of 0.75 to 3.0 metres from ground
level. A number of cohesive and non-cohesive strata are available particularly
everywhere. The contractor shall have to make cuts and resort to pumping with due care
to avoid collapsing of sides and occurrence of ‘Piping’. The Contractor shall also be

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careful to avoid occurrence of excessive ‘heaving’ by avoiding keeping the excavation

proposed to atmosphere for a longer period.

41.3. Slips and falls in excavation shall be cleared by the contractor at his own cost.
Excessive heaving shall have to cut and refill with lean concrete by the contractor at his
own cost. The contractor shall have to adopt under-water work in case of occurrence of
piping/ quick condition without any additional cost to the Owner.

The contractor will be paid for the earthwork as per the drawing. The slopes etc. as
required for the safety of the work has to be provided as per the decision of the Engineer-
in-Charge at his own cost. All types of dewatering including seepage, rain water entering.
The earthwork in excavation or from any other source is to be done by the contractor at his
own cost till the completion of foundation upto ground level including back filling.

41.3. No Compensation in case of change of Location of site :

Change of location of site do not invalidate the contract and tenderer have no claim for any
compensation for such changes.

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SECTION – V
PERFORMANCE OF WORK

42. Execution of Works:

All the work shall be executed in strict conformity with the provisions of the contract
documents explanatory detailed drawings, specifications and instructions by the Engineer-
in-Charge whether mentioned in the contract or not. The contractor shall be responsible
for ensuring that works are executed in the most substantial, proper and workman like
manner using the quality materials and labour, through out the job Completion in strict
accordance with the specifications and to the entire satisfaction of the Engineer-in-Charge.

43. Coordination and inspection of Works:

The coordination and inspection of the day-to-day work under the contract shall be the
responsibility of the Engineer-in-Charge or his authorised representative. A work order
book will be maintained by the contractor for each sector in which the aforesaid written
instructions will be entered. These will be signed by the contractor or his authorised
representative by way of acknowledgement within 12 hours.

44. Works in Monsoon and Dewatering:

44.1 The execution of work may entail working in the monsoon also. The contractor must
maintain a minimum labour force as may be required for the job. And plan execute the
construction and erection according to the prescribed schedule. No extra will be
considered for such work in monsoon.
44.2 During monsoon and other period, it shall be the responsibility of the contractor to keep
the construction work site free from water at his own cost.
45. Work on Sundays and Holidays:

For carrying out works on Sundays and holidays, the contractor will to keep Engineer-in-
Charge or his representative at least two days in advance and obtain permission in writing.
The contractor shall observe all labour laws and other statutory rules and regulations in
force. In case of any violation of such laws, rules and regulations, consequence if any,
including the cost thereto shall be exclusively borne by the contractor and the Owner shall
have no liability whatsoever on his account.

46. General Conditions of Construction and Erection Work:

46.1 The working time at the time of work is 48 hours per week. Overtime work is permitted in
case of need and the owner will not compensate the same. Shift-working at 2 or 3 shifts
per day will become necessary and the contractor should take this aspect into
consideration for formulating his rates for quotation. No extra claims will be entertained by
the Owner on this account.
46.2 The contractor must arrange for the placement of workers in such a way that the delayed
completion of the work or any part thereof or for any reason whatsoever will not affect their
proper employment. The Owner will not entertain any claim for old time payment
whatsoever.
46.3 The contractor shall submit to the Engineer-in-Charge reports at regular intervals
regarding the state and progress of work. The contract shall provide display boards
showing progress and labour strength at work site, as directed by the Engineer-in-Charge.
46.4 The site of work will be released progressively in stages and no claim for any
compensation or damages will be tenable for non-release of the entire site at a time.

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47. Drawings to be supplied by Owner:

47.1 The drawings attached with tender are only for the general guidance to the contractor to
enable him to visualise the type of work contemplated. The contractor will be deemed to
have studied the drawings and formed an idea about the total work involved.
47.2 In the Course the progress of work detailed working drawings on the basis of which actual
execution of the work has to proceed, shall be furnished in stages. The contractor shall be
deemed to have gone through the drawings supplied to him thoroughly and carefully, in
conjunction will all other connected drawings and discrepancies if any, shall be brought to
the notice of the Engineer-in-Charge, before actually carrying out the works.
47.3 Copies of all detailed working drawings relating to the works shall be kept at the
contractor’s office on the site and shall be made available to the Engineer-in-Charge at any
time during the contract period. The drawings and other documents issued shall be
returned to the Owner on completion of the works.
48. Drawings to be supplied by the Contractor:
48.1 The drawings/data which are to be furnished by the contractor are enumerated in
the special conditions of contract and shall be furnished within the specified time.
48.2 Where approval of drawings for manufacture/construction/fabrication has been specified it
shall be contractor’s resposibility to have these drawings prepared as pe r the directions of
Engineer-in-Charge and get them approved before proceeding with
manufacture/construction/fabriction works as the case may be. Any changes that may
have become necessary in these drawings during the execution of the work shall have to
be carried out by the contractor to the satisfaction of Engineer-in-Charge at no extra cost.
All final approved drawings shall bear the certification stamp duly signed by both the
contractor and the Engineer-in-Charge as indicated below.

“Certified true for ……………………………………….

(Name of work)

Agreement No ……………………………………

Signed
(Contractor) (Engineer-in-Charge)
48.3 A period of 3 weeks from the date of receipt shall be required for approval of drawings by
the Engineer-in-Charge.
48.4 As built drawing showing all Corrections, adjustments etc. shall be furnished by the
Contractor in five copies and one transparent to record purposes to the owner.
49 Setting Out Works:
49.1 The Engineer-in-Charge shall furnish to the contractor with only the four corners of the
work site that is plant boundary limits, and a level bench mark only. The contractor shall
set out the works, provide an efficient staff for the purpose and shall be solely responsible
for the accuracy of such setting out.
49.2 The contractor shall provide, fix and be responsible for the maintenance of all stacks,
templates, level marks, profiles and other similar things and shall take all necessary
precautions to prevent their removal or disturbance. He shall be responsible for their
consequences arising of such removals, disturbances corrections thereon and for their
efficient and timely reinstatement. The contractor shall also be responsible for the
maintenance of all existing survey marks, boundary marks, distance marks and centre
line marks, either existing or supplied and fixed by the contractor. The work shall be set
out to the satisfaction of the Engineer-in-Charge. The approval thereon or jointing with the
contractor by the Engineer-in-Charge in setting out the work, shall not relive the contractor
of any of his responsibilities.

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49.3 Before beginning the work the contractor shall at his own cost, provide all necessary
reference and level posts-pegs, bamboos, flags, ranging rods, strings, and other materials
for proper layout of the work in accordance with the scheme for bearing marks acceptable
to the Engineer-in-Charge. The centre, longitudinal, face and cross lines shall be marked
by means of small masonry pillars. Each pillar shall have distinct mark at the centre to
enable the theodolite to be set over it. No work shall be started until all these points are
checked and approved by Engineer-in-Charge in writing, but such approval shall not
relieve the contractor of any of his responsibilities. The contractor shall also provide all
labour, materials and other facilities as necessary, for the proper checking or layout and
inspection of the points during construction.
49.4 Pillars bearing geodetic marks located at the sites of units of works under construction
should be protected and faced by the contractor.
49.5 On completion of work, the contractor must submit the geodetic documents according to
which the work was carried out.
50. Responsibility for Level and Alignment:
50.1 The contractor shall be entirely and exclusively responsible for the horizontal and vertical
alignment, the level and correctness of every part of the work shall rectify effectually any
errors or imperfections therein. Such rectification shall be carried out by the contractor at
his own cost, when instructions are issued to that effect by the Engineer-in-Charge.
50.2 Lighting, Watch & Ward:
The contractor shall in connection with works provide and maintain at his own cost all
lightings, guards, fencing and watch and ward and the security of the entire work in
progress including all the machineries, materials shall be the responsibility of the
contractor till taken over by the owner by way of the written taking over certificate.
51. Materials to be Supplied by Contractor :
51.1 The contractor shall procure and provide the whole of the materials required for the
construction including M.S. Rods, Cement and other building materials, tools, tackles,
construction plant and equipment for the completion and maintenance of the work except
the materials which will be issued by the Owner and shall make his own arrangement for
procuring such materials and for the transport thereof. The owner may give necessary
recommendation to the respective authorities, if so desired by the contractor, but assumes
no further responsibility of any nature. The owner will insist on the procurement of
materials which has the approval of Indian Standards Institution having ISI stamp and/or
which are supplied by reputed suppliers borne on DGS & D list.
51.2 The contractor shall properly store all materials either issued to him or brought by him to
the worksite to prevent damages due to rain, wind, direct exposure to sun etc. as also from
theft, pilferage, etc. for proper and speedy execution of his works. The contractor shall
maintain sufficient stocks of all materials required by him.
51.3 No material shall be despatched from the contractor’s stores before obtaining the approval
in writing of the Engineer-in-Charge.
51.4 All plants, tools and other materials brought by the contractor to the site must be declared
at the time of bringing the same to the site.
52. Stores Supplied by the Owner:
52.1 If the specification of the work provides for the use of any material other than Steel &
Cement of special description to be supplied from the Owner’s stores or it is required that
the contractor shall use certain stores to be provided by the Engineer-in-Charge, such
materials and stores, and price to be charged therefore as hereinafter mentioned being so
far as practicable for the convenience of the contractor, but no so as in way to control the

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meaning or effect of the contract, the contract shall be bound to purchase and shall be
supplied much materials and stores as are from time to time required to be used by him for
the purpose of the contract only. The sums due from the contractor for the value of
materials supplied by the Owner will be recovered from the Running Account Bill on the
basis of actual consumption of materials (after taking into account any wastage allowance
as may be provided for in the contract). The contractor should raise requisite copies of
indents in a proforma as prescribed by the Engineer-in-Charge and no claim whatsoever
will be entertained by the Engineer-in-Charge on this account. After completion of the
works, the contractor is required to account as per relevant clauses in this document, for
the full quantity of materials supplied to him.

52.2 The value of the stores/materials as may be supplied to the contractor by the Owner will
be debited to the contractor’s account at the rates shown in the schedule of materials and
if they are not entered in the schedule, they will be debited at cost price, which for the
purpose of the contract shall include the cost of carriage and all other expenses
whatsoever such as normal storage supervision charges which shall have been incurred in
obtaining the same at the Owner’s stores. All materials so supplied to the contractor shall
remain the obsolute property of the Owner and shall not be removed on any account from
the site of the work and shall be at all times open for inspection to the Engineer-in-
Charge. Any such materials remaining unused at the time of the completion or termination
of the contract shall be returned to the Owner’s stores or at a place as directed by the
Engineer-in-Charge in perfectly good condition at contractor’s cost.

52.3 Steel & Cement:

52.3.1 If the specification of the work provides for the use of steel or cement such items of steel
and cement to the extent required as per the specification of the works, shall be supplied
at Owner’s stores by the Owner for utilisation in the work on non-chargeable basis from
time to time depending upon the progress of the work. The tender rates shall be exclusive
of the cost of steel and cement to be supplied as per the specification of the work,
However, in case of flats and chequeuered plates the same have to be procured by the
contractor at his own cost.

52.3.2 Such materials of steel and cement shall be issued only for permanent works and not for
making other temporary works etc. Contractor shall bear all cost including lifting and
loading carting from issue points to work site/contractor stores, custody and handling etc.
and return of surplus serviceable/unserviceable materials to owner’s store or other places
to be designed by owner and no separate payment for such expenditure shall be made.

52.3.3 Items of steel as per specification of the work as mentioned above shall be supplied in the
available length only. No claim on account of supply of non-standard length shall be
entertained. Steel materials shall be issued on actual weight basis.

52.3.4 Cement as mentioned above will be supplied to the contractor a receive from the
manufacturer/stockiest. The theoretical weight of each bag of cement supplied will be
considered as 50 Kg.

52.3.5 Scraps & Surplus Material:

The Contractor shall return all the surplus/unutilised as well as the scraps and wastages
out of the materials supplied to him to the Owner’s stores in a perfectly good condition at
the contractor’s cost. However, the following scraps allowances are permissible.

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Unaccountable Accountable
(i) Cement 3% Nil
(ii) Reinforcement Steel ½% 2.5%
(iii) Steel structural (Plates & Sections) ½% 4.5%
(iv) M.S. Plates for fabrication of Pipes ½% As per cutting diagrams approved by
Engineer-in-Charge before cutting and
fabrication.

52.3.6 Return of unutilised/surplus materials and scrap/wastage:

In respect of any utilised/surplus quantities of cement and steel supplied by not accounted
for and or returned by the contractor shall pay to the Owner amounts at the penal rate of
twice the SAIL, Bhubaneswar Stock-yard rate of that particular section of steel and cement
as the case may be as on the date of accountability. If the Contractor fails to return the
scraps/wastage generated as per the above percentage, recovery of such scrap/wastage
shall be made at the rate of Rs. 7000/- per tonne.

The charging of penal rate shall be without the prejudice to the other remedies or action
available to the owner against the contractor including any criminal action.

52.3.7. Accounting for Materials:

Every month the Contractor shall submit a statement for all the materials supplied to him
by the owner in the proforma prescribed by the Engineer-in-Charge.

52.3.8 On completion of the work, the Contractor shall submit material appropriation statement
for the materials supplied to him by the Owner.
52.3.9 All materials supplied to the contractor shall remain the absolute property of the all times
and title therein shall not pass to the contractor at any time. The possession of the
materials in the hands of the contractor is only for the purpose of incorporating the same in
the Owner’s work. The material supplied shall not be removed by the contractor on any
account from the site of work and shall be at all times open for inspection by the Engineer-
in-Charge or owners representative. The contractor shall not use the materials supplied to
him for any purpose or work other than the work, which the said materials are supplied.

53. Conditions for issue of Materials:

(i) Materials specified as to be issued by the Owner will be supplied to the contractor by the
Owner from his stores. It shall be the responsibility of the contractor to take delivery of
the materials and arrange for its loading, transport and unloading at the site work at his
own cost. The material shall be issued during the working hours of his Stores and as per
the rules of the Owner framed from time to time.
(ii) The contractor shall bear all incidental charges for the storage and safe custody of
materials at site after these have been issued to him.
(iii) The contractor shall construct suitable godown at the site of work for storing the materials
safe against damage by rain, dampness, fire, theft, etc. He shall also employ necessary
watch and ward establishment for the purpose.
(iv) Materials specified as to be issued by the Owner shall be issued in standard sizes as
obtained from the manufacturers.
(v) It shall be duty of the contractor to inspect the materials supplied to his at the time of
taking delivery and satisfy himself that they are in good condition. After the materials
have been delivered by the Owner, it shall be the responsibility of the contractor to keep
them in good condition and if the materials are damaged or lost, at any time, they shall be

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repaired and or replaced by him at his own cost according to the directions of the
Engineer-in-Charge.
(vi) The Owner shall not be liable for delay in supply or non-supply of any materials, which
the Owner has undertaken to supply where such failure or delay is due to natural
calamities, act of enemies, transport and procurement difficulties and any circumstances
beyond the control of the Owner. In no case, the contractor shall be entitled to claim any
compensation or loss suffered by him on his account.
(vii) It shall be the responsibility of the contractor to arrange in time all materials required for
the works other than those to be supplied by the Owner. If however in the opinion of the
Engineer-in-Charge the execution of the work. Is likely to be delayed due to the
contractor’s inability’s to make arrangements for supply of materials which normally he
has to arrange for, the Engineer-in-Charge shall have the right at his own discretion to
issue such materials if available with the Owner or procure the materials from the market
or elsewhere. The contractor will be bound to take such materials at the rates decided by
the Engineer-in-Charge. This however, does not in anyway absolve the contractor from
responsibility of making arrangement for the supply of such materials in part or in full,
should such a situation occur nor shall this constitute a reason for the delay in the
execution of the work.
(viii) Non of the materials supplied to the contractor will be utilised by the contractor for
manufacturing item which can be obtained as supplied from standard manufacturer in
finished form unless approved by Engineer-in-Charge in writing.
(ix) The contractor shall, if desired by the Engineer-in-Charge, be required to execute an
indemnity bond in the prescribed form for safe custody, usage and accounting of all
materials issued by the Owner.
(x) The contractor shall furnish to Engineer-in-Charge sufficiently in advance a statement
showing his requirements of the quantities of the materials to be supplied by the Owner
and the time when the same will be required by him for the works, so as to enable the
Engineer-in-Charge to make necessary arrangement for procurement and supply of
material.
(xi) Account of the materials to be issued by the Owner shall be maintained by the contractor
indicating the daily receipt, consumption and balance in hand in a manner prescribed by
the Engineer-in-Charge. All connected papers requisitions, issues returns etc. shall be
always available for inspection in the contractor’s office at site.
(xii) The contractor should see that only the required quantities of materials are got issued.
The contractor shall not be entitled to cartage and incidental charges for returning the
surplus materials, if any, to the stores, place of issue or to the place as directed by the
Engineer-in-Charge.
(xiii) Materials/equipment supplied by Owner shall not be utilised for any other purpose (s)
than issued for.
(xiv) The owner may issue the material in phases at his discretion keeping in view the
programmes of the work.
(xv) In case of free issue of materials, the contractor shall submit an indemnity bond in the
prescribed format for 80% (eighty) value of the materials and a bank guarantee for 20%
(twenty) of the value of the materials. The indemnity bond and bank guarantee shall be
valid till the material account is totally settled.

54. Return of Surplus:

Notwithstanding anything contained to the contrary in any or all the clauses of this
contract where any materials for the execution of the contract are procured with the
assistance of the Owner either by issue from Owner’s stock or purchases made under
orders, or permits or licences issued by government the contractor shall hold the said
materials as trustee for the owner and use such materials economically and solely for the
purpose of the contract and not dispose them off without the permission of the Owner and

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return, if required by the project head all surplus or unserviceable materials that may be
left with him after the completion of the contract or at its termination for any reason
whatsoever on his being paid or credited such price as the Project head shall determine
having due regard so the condition of the materials. The price allowed to the contractor
however, shall not exceed the amount charged to him excluding the storage charges, if
any. The decision of the project head shall be final and conclusive in such matter. In the
event of breach of the aforesaid conditions, the contractor shall, in the terms of the
licences, or permits and/ or for criminal breach of trust, be liable to compensate the
Owner at double rate or any higher, in the event of those materials at the time having
higher rate or not being available in the market, then any other rate to be determined by
the project head and his decision shall be final and conclusive.

55. Materials Obtained From Dismantling:

If the contractor in the course of execution of the work is called upon to dismantle any
part for reasons other than those stipulated in clauses 57 and 65 hereunder, the materials
obtained in the work of dismantling etc. will be considered as the Owner’s property and
will be disposed off to the best advantage of the Owner.

56. Articles of Value Found:

All gold silver and other materials of any descriptions, precious stones, coins, treasures,
relics, antiques and other similar things which shall be found, in, under or upon the site,
shall be property of the Owner and the contractor shall duly preserve the same to the
satisfaction of the Engineer-in-Charge and shall from time to time delivery the same to
such person or persons indicated by the Owner.

57. Inspection of Works:

57.1 The Engineer-in-Charge will have full power and authority to inspect the works in
progress at any time wherever the premises/ workshops situated, of the Contractor,
person, firm or corporation where works in connection with the contract may be or where
materials are being or intended to be supplied.. The contractor shall afford or procure
every facility and assistance to Engineer-in-Charge carry out such inspection. The
contractor shall, at all time during the usual working hours and at all other times at which
reasonable notice of the intention of the Engineer-in-Charge or his representative to visit
the works shall have been given to the contractor, either himself be present to receive
orders and instructions or have a responsible agent duly accredited in writing be present
for the purpose. Orders given to the contractor’s agent shall be considered to have the
same force as if they had been given to the contractor himself.
57.2 The contractor shall give not less than seven days notice in writing to the Engineer-in-
Charge before covering up or otherwise placing beyond reach of inspection and
measurement any work in order that the same may be inspected and measured. In the
event of failure of above the same shall be uncovered and all facilities made available
again at contractor’s expense for carrying out such measurement or inspection.
57.3 The contractor is to provide at all times during the progress of the work and maintenance
period proper means at access with ladders gangways etc. and the necessary
attendance to move and adopt as directed for inspection or measurement of the works by
the Engineer-in-Charge.
58. Assistance to the Engineer:
The Contractor shall make available to the Engineer-in-Charge free of cost all necessary
instructions and assistance in checking of settling out of works and in the checking of any
works made by the contractor for the purpose 0f setting out and taking measurements of
work.

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59. Discrepancies between instructions:

Should any discrepancy arise between the various instructions furnished to the contractor
or his agents or staff or if any doubt arises on the meaning or implementation of any such
instructions or should there be any difference of opinion on the issues, the contractor
shall refer the matter immediately in writing to the Engineer-in-Charge whose decisions
thereon shall be final and conclusive. No claim on losses alleged to have been caused
by such discrepancies between instructions, doubts or misunderstanding shall in any
event be admissible.

60. Alterations in Specifications and Designs and Extra Works:

(a) The Project Head shall have power to make any alterations, in omission from
additions to or substitutions, for the schedule of rates, the original specifications,
drawings and instructions that may appear to him to be necessary or advisable
during the progress of the work, and the contractor shall be bound to carry out
such altered/ extra/ new items of work in accordance with any instructions which
may be given to him in writing signed by the Project Head and such alterations,
omissions, additions or substitutions shall not invalidate the contract and any
altered, additional or substituted work which the contractor may be directed to do
in the manner above specified as part of the work shall be carried out by the
contractor on the same conditions in all respects on which he agreed to do the
main work. The time of completion of work may be extended for the part of the
particular job at the discretion of the Project Head for any such alterations,
additions, or substitutions of the work, as he may consider as just and reasonable.
The rates for such additional, altered or substituted work under the clause shall be
worked out in accordance with the following provisions:-
(b) If the rates for the additional, altered or substituted work are specified in the
contract for the work, the contractor is bound to carry out the additional, altered or
substituted work at the same rates as are specified in the contract.
(c) If the rates for the additional, altered or substituted work are not specifically
provided in the contract for the work, the rates will be derived from rates for similar
class of work as are specified in the contract for the work. The opinion of the
Project head as to whether or not the rates can be reasonably so derived from the
items in this contract will be final and binding on the contractor.
(d) If the rates for the additional, altered or substituted work can not be determined in
the manner specified in sub-clause (a) & (b) above, then the contractor shall
within 7 days of the date of receipt of order to carry out the work, inform the
Project Head of the rate which it is his intention to charge for such class of work,
supported by analysis of the rate or rates claimed, and the project Head shall
determine the rate or rates on the basis of the prevailing market rates of materials
plus labour cost including equipment hire charge at schedule of hourly/ daily rates
plus 15% to cover contractor’s supervisions overhead and profit and pay to the
contractor accordingly. The opinion of the Project Head to current market rates of
the materials and the quantum of labour and equipment involved per unit of
measurement will be final and binding on the contractor. The schedule of hourly/
daily rates shall be as enclosed.

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61. Action Where no Specification is issued:

In case of any class of work for which there is no such specification supplied by the
Owner as is mentioned in the tender document such work shall be carried out in
accordance with the Indian Standard Specifications. If the Indian Standard
Specifications do not cover the same, the work should carried out as per standard
Engineer in Practice subject to the approval of the Engineer-in-Charge.

62 Abnormal Rates:
The contractor is expected to quote the rate for each item after careful analysis of cost
involved for the satisfactory performance and completion of item work considering all
specifications and conditions of contract. This will avoid loss of profit or gain in case of
curtailment or change in specification for any other item. In case the rate quoted by the
tenderer for any item are usually high or unusually low it will be sufficient cause of the
rejection of the tender unless the Owner is convinced about the reasonableness of the
analysis for such rate furnished by the tenderer (on demand) after scrutiny.

63. Tests For Quality Works:

63.1 All materials and workmanship shall be of the respective kinds described in the contract
documents and in accordance with the instructions of the Engineer-in-Charge and shall
be subjected from time to time to such tests at contractor’s cost as the Engineer-in-
Charge may direct at the place of manufacture or fabrication or at the site or at all or any
such places. The contractor shall provide assistance, instruments, machines, labour and
materials as are required for examining, measuring and testing any workmanship as may
be selected and required by the Engineer-in-Charge.
63.2 All the tests that will be necessary in connection with the execution of the work as
decided by Engineer-in-Charge shall be carried out at the field testing laboratory of this
Owner if available by paying the charges as decided by the Owner from time to time. In
case of non-availability of testing facilities with the Owner, the required laboratory as
directed by Engineer-in-Charge.
63.3 If any tests are required to be carried out in connection with the work or materials or
workmanship not supplied by the contractor, such tests shall be carried out by the
contractor as per the instructions of Engineer-in-Charge and cost of such tests shall be
reimbursed by the Owner.

64. Samples:
The contractor shall furnish to the Engineer-in-Charge for approval when request or if
required by the specifications, adequate samples of all materials and finished to be used
in the work. Such samples shall be submitted before the work is commenced and in
sample time to permit tests and examinations thereof. All materials furnished and
finishes applied in actual work shall be fully equal to the approved samples.

65 Liabilities for Defect, Imperfections etc. and Rectifications Thereof:

If it shall appear to the Engineer-in-Charge that any work has been executed with
unsound, imperfect or unskilled workmanship, or with materials of any inferior description,
or that any materials or articles provided by the contractor for the execution of work are
unsound or of quality inferior to that contracted for, or otherwise not in accordance with
the contract, the contractor shall on demand in writing from the Engineer-in-Charge or his
authorised representative specifying the work, materials or articles complained of,
notwithstanding that the same may have been inadvertently passed, certified and paid
for, forthwith rectify or remove and reconstruct that work so specified and provide other
proper and suitable materials or articles at his own charge and cost, and in the event of

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failure to do so within a period to be specified by the Engineer-in-Charge in his demand

aforesaid, the Engineer-in-charge may on expiry of notice period rectify or remove, and
re-execute the work or remove and replace with others, the materials or articles
complained of as the case may be at the risk and expense in all respects of the contract.
The decision of the Engineer-in-Charge as to any question arising under this clause shall
be final and conclusive.
66. Suspension of Works:
(i) Subject to the provision of sub para (ii) of this clause, the contractor shall if orderded in
writing by the Engineer-in-Charge., or his representative, temporarily suspend the works
or any part thereof such period and such time as so orderded and shall not, after
receiving such written orders, proceeds with the work therein, orderded to be suspended
until he shall have received a written order to proceed therewith. The contractor shall not
be entitled to claim compensation for any loss or damage sustained by him by reason of
temporary suspension of the works aforesaid. An extension of time for completion,
corresponding with the delay caused by any such suspension of the works as aforesaid
will be granted to the contractor should be apply for the same provided that the
suspension was not consequent to any default or failure on the part of the contractor.
(ii) In case of suspension of entire work, orderded in writing by the Engineer-in-Charge, for a
period of more than two months, the contractor shall have the option to terminate
contract.
67. Possession Prior to Completion:
The Engineer-in-Charge shall have the right to take possession of or any completed or
partially completed work or part of the work. Such possession or use shall not be deemed
to be an acceptance of any work completed in accordance with the contract. If such prior
possession or use by the Engineer-in-Charge delay the progress of work, equitable
adjustment in the time of completion will be made and the contract agreement shall be
deemed to be modified accordingly.
68 Twelve months Period of Liability from the Date of Issue of Completion
Certificate:
68.1 The contractor shall guarantee the installation/work for a period of 12 months from the
date of completion of work as certified by the Engineer-in-Charge which is indicated in the
completion certificate. Any damage or defect that may arise though remained
undiscovered at the time of issue of completion certificate, connected in any way with the
equipment or materials supplied by him or in the workmanship shall be rectified or
replaced by the contractor at his own expenses as deemed necessary by the Engineer-
in-Charge or in default the Engineer-in-Charge may cause the same to be made good by
other agency and deduct expenses (of which the certificate or Engineer-in-Charge shall
be final) from any sums that may be then or at any time thereafter become due to the
contractor or from his security deposit, or the proceeds of sale thereof or of a sufficient
portion thereof.
68.2 If the contractor feels that any variation in work or in quality of materials or proportions
would be beneficial or necessary to fulfill the guarantees called for, he shall bring this in
writing to the notice of the Engineer-in-Charge.
68.3 Care of works:
From the commencement of completion of the work, the contractor shall take full
responsibility for the care of all works including all temporary works and in case any
damage, loss or injury shall happen to the work or to any part thereof or to any temporary
works from any cause whatsoever, shall at his own cost repair and make good the same
so that on completion the work shall be in good order and in conformity in every respects
with the requirements of the contract and the Engineer-in-Charge’s Instructions.

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68.4 Defects Prior to Taking Over:

If at any time before the work is taken over, the Engineer-in-Charge shall:
(a) Decide that any work done or materials used by the contractor or any sub-contractor
is defective or not in accordance with the contract, or that the works or any portion thereof
are defective, or do not fulfill the requirements of contract (all such matter, being
hereinafter, called ‘Defects’ in this clause) and (b) as soon as reasonably practicable
gives to the contractor notice in writing of the said decision specifying particulars of the
defects claimed to exist or to have occurred then the contractor shall at his own expenses
and with all speed make good the defects so specified.

In case contractor shall fail to do so, the Owner may take, at the cost of contractor, such
steps as may in all circumstances be reasonable to make good such defects. The
expenditure so incurred by the owner be recovered from the amount due to the
contractor. The decision of the Engineer-in-Charge with regard to the amount to be
recovered from the contractor will be final and binding on the contractor. As soon as the
works have been completed in accordance with the contract (except minor respects that
do not affect their use for the purpose for which they are intended and except for
maintenance thereof provided in clause 68.1 of General Conditions of Contract) and have
passed the tests on completion, the Engineer-in-Charge shall issue a certificate
(hereinafter called completion certificate) in which he shall certify the date on which the
works have been so completed and have passed the said tests and the Owner shall be
deemed to have taken over the works on the date so certified. If the works have been
divided into various groups in the contract, the Owner shall be entitled to take over any
group or groups before the other or others.

68.5 Defect After Taking Over:

In order that the contractor could obtain a completion certificate he shall make good with
all possible speed, any defect arising from the defective materials supplied by the
contractor or that may have been notices or developed, after the works or group of the
works has been taken over, the period allowed, for carrying our such work will be
normally one month. If any defect be not remedied within a reasonable time, the owner
may proceed to do the work at contractor’s Risk and expenses and deduct from the final
bill such amount as may be decided by the Owner.

If by reason of any default on the part of the contractor a completion certificate has not
been issued in respect of every portion of the works within one month after date fixed by
the contract for the completion of the works, the Owner shall be a liberty to use the work
or any portion thereof in respect of which a completion certificate has not been issued,
provided that the works or the portion thereof so used as aforesaid shall be afforded
reasonable opportunity for completion of these works for the issue of completion
certificate.

68.6 Guarantee/Transfer of Guarantee:

For works like water-proofing, acid & alkali resisting materials, pre-construction soil
treatment against termite or any other specialized works etc. the contractor shall
invariable engage sub-contractors who are specialists in the field and firms or repute and
such a sub-contractor shall furnish guarantees for their workmanship to the Owner,
through the contractor. In case such a sub-contractor/firm is not prepared to furnish a
guarantee to the owner, the contractor shall give that guarantee to the Owner directly.

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SECTION – VI
CERTIFICATE AND PAYMENT

69. SCHEDULE OF RATE AND PAYMENTS:

69.1 Contractor’s Remuneration:
The price to be paid by the Owner to the contractor for the whole of the work done and for
the performance of all the obligations undertaken by the contractor under the contract
document shall be ascertained by the application of the respective schedule of rates (the
inclusive nature of which is more particularly defined by way of application but not of
limitation, with clause No. 69.2) and payment to be made accordingly to the work actually
executed and approved by the Engineer-in-Charge. The sum so ascertained
shall(exception only as and to the extent expressly provided here in ) constitute the sole
and inclusive of remuneration of the contractor under the contract and no further or other
payment whatsoever shall be or become due or payable to the contractor under the
contract.

69.2 Schedule of Rates to the Inclusive:

The prices/rates quoted by the contractor shall remain firm till the issue of final certificate
and shall not be subject to escalation. Schedule of rates shall be deemed to include and
cover all costs, expenses and liabilities of every description and all risks of every kind to
be taken in executing, completion and handing over the work to the Owner by the
contractor. The contractor shall be deemed to have known the nature, scope, magnitude
and the extent of the works and materials required though the contract document may not
fully and precisely furnish them. Hr shall make such provision in the schedule of rates as
he may consider necessary to cover the cost of such items of work and materials as may
be reasonable and necessary to completer the work. The opinion of the Engineer-in-
Charge as to the items of work which are necessary and reasonable for completion of
work shall be final and binding on the contractor although the same may not be shown on
or described specifically in contract documents.

Generality of this present provision shall not be deemed to cut down or limited in any way
because in certain cases it may and in other cases it may not expressly stated that the
contractor shall do or perform a work or supply articles or perform with services at his
own cost or without addition of payment or without extra charge or works to the same
effect or that it may be stated or not stated that the same are included in and covered by
the schedule of rates.

69.3 Schedule of rates to cover Constructional Plant, Materials. Labours etc.:

Without in any way limiting the provision of other sub clauses the schedule of rates shall
be deemed to include the cover the cost of all constructional plant, temporary works
(except as provided for herein), pumps, materials, labour, insurance, fuel, stores, and
appliances to be supplied by the contractor and all other matters in connection with each
items in the schedule of quantities and the execution of the works or any portion thereof
finished complete in every respect and maintained as shown or described in the contract
documents or as may be orderded in writing during the continuance of the contract.

69.4 Schedule of Rates to cover Royalties, Rents and Claims:

The schedule of rates shall be deemed to include and cover the cost of all royalties and
fees for the articles, processes, protected by letters, patent or otherwise incorporated in
or used in connection with the works, also all royalties, rents, and other payments in.
connection with obtaining materials of whatsoever kind for the works and shall include an
indemnity to the owner which the contractor hereby gives against all actions,
proceedings, claims, damages, costs and expenses arising from the incorporation in or
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use on the works of any such articles, processes or charges if levied on materials,
equipment or machinery to be brought to site for use on work, shall be borne by the
contractor.
69.5 Schedule of Rates to cover taxes and duties:
No exemption or reduction of custom duties, excise duties, sales tax, quay or any port
duties, transport charges, stamp duties or Central or State Government or Local Body (or
from any other body) or Municipal Taxes or duties, taxes or charges whatsoever will be
granted or obtained and all expenses of which shall be deemed to be included in and
covered by the schedule of rates. The contractor shall be obtain and pay for all permits
or other privileges necessary to complete the work.
69.6 Schedule of Rates to cover Risk of Delay:
The schedule of rates shall be deemed to include and cover the risk of all responsibilities
of delay and interference with the contractor’s conduct of work which occur from any
cause including orders of the owner in the exercise of his powers and on account of
extension of time granted due to various and for all other possible or probable causes of
delay.
69.7 Schedule of Rates cannot be altered:
For work under unit rate basis no alteration will be allowed in the schedule of rates by
reasons of works or any part of them being modified, altered, extended, diminished or
omitted. The schedule of rates is of fully inclusive rates which have been fixed by the
contractor and agreed to by the Owner and cannot be altered.
69.7.1 The schedule of rates to cover for working in operating plant. Contractor’s rates shall be
deemed to include taking into account that he has to work in operating plant and shall
take sufficient care in moving the plants, equipments and materials from one place to
another, so that they do not cause any damage to any person or to the property of the
owner or to thirty party including over head and underground cable/pipe lines. In the
event of such damages including eventual loss of production and operation of the plant or
services in any plant or establishment as estimated by the owner or ascertained or by the
third party shall be borne by the contractor. Since the work is to be executed for the
expansion of the plant, the rate of the contractor shall also deem to include all
interference/obstruction/interruption for which no compensation shall be paid to be
contractor.
70. Procedure For Measurement/ Billing of Work in Progress:
70.1 All measurements shall be in metric system. All the works in progress will be jointly
measured by the representative of the Engineer-in-Charge and the contractor’s
authorised agent progressively. Such measurements will be got recorded in the
measurement book by the Engineer-in-Charge or his authorised representative and
signed in token of acceptance by the contractor or his authorised representative.

For the purpose of taking joint measurement the contractor’s representative shall be
bound to be present whenever required by the Engineer-in-Charge. If, however, he
absents for any reason whatsoever the measurements will be taken by the Engineer-in-
Charge or his representative and this will be deemed to be correct and binding on the
contractor.

70.2 Billing:
The contractor will submit a bill in approved proforma in accordance with the contract
terms and the agreed billing schedules in quintuplicate to the Engineer-in-Charge giving
abstract and detailed measurement for the various items executed during a month, before
the expiry of the first week of the succeeding month. The Engineer-in-Charge shall take

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or cause to be taken the requisite measurements for the purpose of having the same
verified and the claim as far as admissible, adjusted, if possible, before the expiry of 10
days form presentation of the bill.

70.2.1 The bill shall be submitted by the contractor in computerised formats approved by the
owner. The bills along-with floppies containing measurement of work, particulars of
materials, recoveries etc. have to be submitted to the owner.
70.2.2 For lump-sum contracts, the payment will be according to agreed billing schedule. No
adjustment shall be allowed in lump-sum prices for any variations in the quantities,
specifications etc. shall take or a cause to be taken the requisite measurement for the
purposes of having the same verified and the claim as far as admissible, adjusted, if
possible, before the expiry of 10 days from presentation of the bill.
70.3 Secured Advance on Materials:
In case of tenders for completed items of works, contractor may be allowed “Secured
Advance” on the security of materials brought to site for execution of the contracted items
of work to the extent of 75% of the value of materials which go into the completed works
as assessed by the Engineer-in-Charge provided that the materials are of an
imperishable nature and that formal agreement is drawn up with the contractor under
which the Owner secures a lien on the materials and is safe guarded against losses due
to the contractor postponing the execution of the work or to the improper storage &/or
misuse of the materials and against the expenses entitled for their proper watch and safe
custody. Recoveries of advances so made would not be postponed until the whole of the
work entrusted to the contractor is completed. They should be adjusted from his running
account bills for work done as the materials are used, the necessary deductions being
made whenever the items of work in which they are used and billed for.

70.4 Dispute in Mode of Measurement:

In case of any dispute as to the made of measurement not covered by the contract to be
adopted for any item of work, mode of measurement as per latest Indian Standard
Specifications shall be followed.

70.5 Rounding of Amounts:

In calculating the amount of each item due to the contractor in every certificate prepared
for payment, sum of less than 50 paisa shall be omitted and the total amount on each
certificates shall be rounded off to the nearest, i.e. sum of less than 0.50.p shall be
omitted and sums of 0.50p and more upto one rupee shall be reckoned as one rupee.

71. LUMPSUMS IN TENDER:

For the item in tender where it includes lumpsum in respect of parts of work, the
contractor shall be entitled to payment in respect of the items at the same as are payable
under this contract for such items, or if the part of the work in question is not, in the
opinion of the Engineer-in-Charge capable of measurement, or determination, the Owner
may at his discretion pay the lump-sum amount entered in the tender or a percentage
thereof and the certificate in writing of the Engineer-in-Charge shall be final and
conclusive against the contractor with regards to any sum payable to him, under the
provisions of this clause.

72. RUNNING ACCOUNT PAYMENTS TO BE REGARDED AS ADVANCE:

All Running Account Payment shall be regarded as Payments by way of advance against
the final payment only and not as payment for work actually done and completed, and
shall not preclude the requiring of bad, unsound and imperfect or unskilled work to be
removed and taken away and reconstructed or re-erected or be considered as an
admission of the due Performance of the contract, or any part thereof, in this respect, or

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of the accruing of any claim by the contractor, nor shall it, conclude, determine or affect in
any way the powers of the Owner under these conditions or any of them as to the final
settlement and adjustments of the accounts or otherwise, or in any other way vary or
affect the contract. The final bill shall be submitted by the contractor within one month
from the sate of physical completion of the work, otherwise, the Engineer-in-Charge’s
certificate of the measurement and of total amount payable for the work accordingly shall
be final and binding on all parties.

73. NOTICE OF CLAIMS FOR ADDITIONAL PAYMENT:

Should the contractor consider that he is entitled to any extra payment or compensation
or to make any claims whatsoever in respect of the works arising under the terms of this
contract he shall forthwith give notice in writing to the Engineer-in-Charge that he claims
extra payment within ten days from the ordering of any work or happening of any event
upon which the contractor bases such claims and such notice shall contain full particulars
of the nature of such claims with necessary particulars as above within the time above
specified shall be an absolute waiver thereof. No omission by the Owner to reject any
such claim and no delay in dealing therewith shall be waiver by the Owner of any right in
respect thereof.

74. PAYMENT OF CONTRACTOR’S BILL:

No payment shall be made for works estimated to cost less that Rs. 10,000/- till the whole
of the work shall have been completed and a certificate of completion given. But in case
of works estimated to cost more that Rs. 10,000/- the contractor, on submitting the bill
thereof be entitled to receive a monthly payment proportionate to the part thereof
approved and passed by the Engineer-in-Charge, whose certificate of such approval and
passing of the sum so payable be final and conclusive against the contractor. This
payment will be made after making necessary deductions as stipulated elsewhere in the
contract document for materials, security deposit etc. or any statutory recoveries.

Payment due to the contractor shall be made by the Owner, by Crossed Account Payee
Cheque forwarding the same to registered office or the notified office of the contractor. In
no case will owner be responsible if the Cheque is mislaid or misappropriated by un-
authorised person/ persons. In all cases, the contractor shall present his bill duly pre-
receipted on proper revenue stamp.

All payment shall be made in Indian Currency.

75. Receipt For Payment:

Receipt for payment made on account of work when executed by a firm, must be signed
by a person holding due power of attorney in this respect on behalf of the contractor,
except when the contractors are described in their tender as limited company in which
case the receipts must be signed in the name of the company by one of its principal
officers or by some other persons having authority to give effectual receipt for the
company.

76. Completion Certificate:

76.1. Application for completion certificate:
When the contractor fulfils his obligation under clause 69.4 he shall be eligible to apply for
completion certificate in respect of the work by submitting the completion documents
along with such application for completion certificate.

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The Owner or his representative shall normally issue to the contractor the completion
certificate within one month after receiving an application therefore from the contractors
after verifying from the completion documents and satisfying himself that the work has
been completed in accordance with and as set out in the construction and erection
drawings, and the contract documents.

The contractor, after obtaining the completion certificate, is eligible to present the final bill
for the work executed by him under the terms of contract.

76.2. Completion Certificate:

Within one month of the completion of work in all respects, the contractor, shall be
furnished with a certificate by the owner or his representative of such completion but no
completion certificate shall be given not shall the work be deemed to have executed until
all, scaffolding, surplus materials and rubbish is cleared off the site completely not until
the work shall have been measured by the Engineer-in-Charge, whole measurement
shall be binding and conclusive. The work will not be considered as complete and taken
over by the owner, until all the temporary work, labour and staff colonies etc. constructed
are removed and work site cleared to the satisfaction of the Engineer-in-Charge.

If the contractor shall fail to comply with the requirements of this clause on or before the
date fixed for the completion of the work, the Engineer-in-Charge may at the expenses of
contractor remove such scaffolding, surplus materials and rubbish and dispose off the
same as he thinks fit and clean off such dirt as aforesaid, and the contractor shall
forthwith pay the amount for all expenses so incurred and shall have no claim in respect
of any such scaffolding or surplus materials as aforesaid except for any sum actually
realized by the sale thereof.

Completion Certificate shall be in 3 parts as follows:

(1) Physical/ Mechanical Completion work.

(2) Satisfactory completion of commissioning of equipment with load.
(3) Satisfactory completion of guarantee.

The contractor shall clearly indicate the 3 dates separately.

76.3. Completion Documents:

For the purpose of Clause 76 the following documents will be deemed to form the
completion documents:
(i) The technical documents according to which the work was carried out.
(ii) Three sets of construction drawings showing therein the modification and
corrections made during the course of execution and signed by the Engineer-in-
Charge.
(iii) Completion Certificate for embedded and covered –up works.
(iv) Certificate of final levels as set out for various works.
(v) Certificate of tests performed for various works.
(vi) Material appropriation statement to the materials issued by the owner for the
works and list of surplus materials returned to the owner’s store duly supported by
necessary documents.
(vii) Physical/ Mechanical Completion work.
(viii) Satisfactory completion of commissioning of equipment with load.
(ix) Satisfactory completion of guarantee.
The Contractor shall clearly indicate the 3 dates separately.

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77. Final Decision And Final Certificate:

Upon the expiration of the period of liability and subject to the Engineer-in-Charge being satisfied
that the works have been duly maintained by the contractor during monsoon or such period as
herein provided in clause 68.1 and that the contractor has in all respect duly made up all
subsidence and performed all his obligations under the contract, the Engineer-in-Charge shall
(without prejudice to the right of the Owner to retain the provisions of relevant clause hereof)
otherwise give a certificate, herein referred to as the final certificate, to the effect and the
contractor shall not be considered to have fulfilled the whole of his obligations under the contract
until Final Certificate shall have been given by the Engineer-in-Charge notwithstanding any
previous entry upon the work and taking possession, working or using of the same or any part
thereof by the Owner.

78. Certificate And Payments No Evidence of Completion:

Except the final certificate no other certificate or payment against a certificate or on general
account shall be taken to be an admission by the Owner of the due performance of the contract
of any part thereof or of occupancy or validity of any claim by the Contractor.

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SECTION – VII

TAXES AND INSURANCE

79. TAXES, DUTIES, OCTROI ETC.

79.1. The Contractor shall defray all charges, such as rent, toll local taxes excise duty, other payments
and compensations, if any, in connection with the procurement and handling of materials,
fabrication and execution of works or any method or process connected with the works or
Temporary works.

Sales Tax or any other tax on materials required for the works as also Tax on works contract
shall be payable by the Contractor and the Owner will not entertain any claim whatsoever in this
regard.

79.2. Notwithstanding anything contained elsewhere in the contract, the owner shall deduct at source
from the payments due to the contractor, the taxes as required under Section -13–AA of the
Orissa Sales Tax Act or as amended from time to time or under any other statue. The amounts
so deducted shall be deposited by the Owner with the Sales Tax authorities as per Law. It is for
the contractor to deal with the Sales Tax authorities directly in respect of any claim or refund
relating to the above deductions and the owner shall not be liable or responsible for any claims
or payments or reimbursement in this regard.

80. INSURANCE:
Contractor shall at his own expense carry and maintain insurance with reputed insurance
companies to the satisfaction of the Owner as follows:

80.1 Employees State Insurance Act:

The contractor agrees to and does hereby accept full and exclusive liability for compliance with
all obligations imposed by the Employees State Insurance Act., 1948, and the contractor further
agrees to defend, indemnify and hold Owner harmless form any liability of penalty which may be
imposed by the Central, State or Local authority by the reason of any asserted violation by
contractor or Sub-contractor of the Employee’s State Insurance Act, 1948 and also from all
claims, suits or proceeding that may be brought against the Owner arising under, growing out of
or by reasons of the work provided for by this contract whether brought by employees of the
contractor, by third parties or by Central or State Government authority or any political sub-
division thereof.

The contractor agrees to fill in with the Employees State Insurance Corporation, the Declaration
Forms and all forms which may be required in respect of the contractor’s or sub-contractor’s
employees, whose aggregate remuneration is Rs. 560.00 per month or less and who are
employed in the work provided for or those covered by ESI from time to time under the
Agreement. The contractor shall deduct and secure the agreement of the sub-contractor to
deduct the employee’s contribution as per the first schedule of the Employee’s State Insurance
Act from wages and affix the employee’s contribution cards at wages payments intervals. The
contractor shall remit and secure the agreement of the sub-contractor to remit to the State Bank
of India, Employees State Insurance Corporation Account, the employee’s contribution as
required by the Act. The contractor agrees to maintain all cards and records as required under
the Act in respect of employees and payments and the contractor shall secure the agreement of
the sub-contractor to maintain such records. Any expenses incurred for the contributions,
making contributions or maintaining records shall be to the contractor’s or sub-contractor’s
account.

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The Owner shall retain such sum as may be necessary from the total contract value until the
contractor shall furnish satisfactory proof that all contribution as required by the Employees State
Insurance Act, 1984, have been paid. This will be pending on the contractor when the
Employees State Insurance Act is extended to the place of work.

80.2 Workmen Compensation and Employees Liability Insurance:

Insurance shall be affected for all the contractor’s employees engaged in the performance of this
contract. If any of the work is subject, the contractor shall require the sub-contractor to provide
workmen’s compensation and employer’s liability insurance for the latter’s employees if such
employees are not covered under the contractor insurance.

80.3 Any other insurance required under Law or Regulations or by Owner:

Contractor shall also carry and maintain any and all other insurance, which he may be required
under any law or regulation from time to time. He shall also carry and maintain any other
insurance, which may be required by the Owner.

80.4 Accident or Injury to workmen:

The owner shall not be liable for or in respect of any damages or compensation payable at law in
respect or in consequence of any accident or injury to any workman or other person in the
Employment of the contractor or any sub-contractor save and except and accident or injury
resulting from any act or default of the Owner, his agents or servants and the contractor shall
indemnify and keep indemnified the Owner against all such damages and compensation (save
and except as aforesaid) and against all claims, demands, proceeding, costs, charges and
expenses, whatsoever in respect or in relation thereto.

80.5 Transit Insurance:

In respect of all items to be transported by the Contractor to the site of work, the cost of transit
insurance should be borne by the contractor and the quoted price shall be inclusive of this cost.

81 DAMAGE TO PROPERTY OR TO ANY PERSON OR ANY THIRD PARTY:

81.1 Contractor’s rate shall deem to include taking into account that he has to work in operating
plant and shall take sufficient care in moving the plants, equipment and materials from one place
to another so that they do not cause any damage to any person or to the property of the Owner
or to a third party including over head and underground cables, pipelines. In the event of such
damages including eventual loss of production and operation of the plants or services in any
plant or establishment as estimated by the Owner or ascertained or by the third party shall be
borne by the Contractor.
81.2 Contractor shall also be responsible for making good to the satisfaction of the Owner any
loss or any damage to all structures and properties belonging to the Owner or being executed or
procured or being procured by owner or by other agency within the premises of all the work or
Owner. If such loss or damages is due to fault and or the negligence or willful acts or omission
of the contractors, his employees, agents, representatives or sub-contractors.
81.3 The contractor shall indemnify and keep the owner harmless of all claims for damages to
property other than owner’s property arising under or by reason of this contract if such claims
result from the fault and/ or negligence or willful acts or omission of the contractor, agents,
representative or sub-contractor.
82 DEMURRAGE DUES:
The contractor shall pay demurrage charges incurred by the Owner because of the contractor’s
failure to load or unload any goods or materials within the time allowed by the Railway and/ or
Transport Agency for such loading or unloading as charges incurred by the contractor within the
permissible time as also charges due on consignments booked by or to him. In case the
contractor fails to pay these charges, these charges shall be deducted from any sums, which
may be due or become due to the contractor in terms of this contract and/ or any other contract.

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SECTION – VIII
LABOUR LAWS AND ARBITRATION

83 LABOURER LAWS:
Contractor shall comply with any and all laws, ordinances, regulations and decision of courts
(which shall be deemed to be a part of this Agreement) concerning the health, sanitary
arrangements, wages, welfare, safety and employment of any and all of his workers upon the
Project or any portion thereof and shall exclusively bear the consequences of failure to comply
therewith Contractor shall Indemnify and hold Engineer and Owner harmless from any claims,
fines or penalties which may be made against Engineer or Owner as result of Contractor’s
failure to fulfill these obligations.

Without limiting the generality of the foregoing, Contractor shall fully comply with.

The contractor shall obtain clearance from the Labour Department regarding the compliance of
the labour laws on 6 monthly basis and submit to the owner for record.

(i) No labour below the age of 18 (eighteen) years shall be employed on the work.
(ii) The contractor shall not pay less than what is provided under law to labourers engaged
by him on the work.
(iii) The contractor shall at his expense comply with all labour laws and keep the Owner
indemnified in respect thereof .
(iv) The contractor shall pay equal wages for men and women in accordance with applicable
labour laws.
(v) If the contractor is covered under the contractor labour (Regulation and Abolition) Act, he
shall obtain a licence from licensing authority (i.e. office of the labour commissioner) by
payment of necessary prescribed fee and the deposit, if any, before starting the work
under the contract.
(vi) The Contractor shall employ labour in sufficient numbers either directly or through sub-
contractors to maintain the required rate of progress and of quality to ensure
workmanship of the degree specified in the Contract and to satisfaction of the Engineer-
in-Charge. The contractor shall not employ in connection with the works any person who
has not completed his 18 (eighteen) years of age.
(vii) The Contractor shall furnish to the Engineer-in-Charge the distribution return of the
number and description, by trades of the work people employed on the works. The
th th
Contractor shall also submit on the 4 and 19 of every month to the Engineer-in-Charge
a true statement showing in respect of the second half of the preceding month and the
first half of the current month (1) the accidents that occurred during the said fortnight
showing the circumstance-under which they happened and the extent of damage and
injury caused by them and (2) the number of female workers who have been allowed
Maternity benefit as provided in the Maternity Benefit Act 1961 or Rules made thereunder
and the amount paid to them.
(viii) The contractor shall comply with the provisions of the payment of Wages Act 1936,
Minimum Wages Act 1938, Employees Liability Act 1928. Workmen’s Compensation Act,
1923, Industrial Dispute Act 1947, the Maternity Benefit Act 1961, Employees Provident
Fund Act, 1952 and Contract Labour regulation and abolition Act 1937, Employment of
Children Act 1938 or any modifications thereof or any other law relating thereto and rules
made thereunder from time to time.
(ix) The Engineer-in-Charge shall on a report having been made by an Inspecting Officer as
defined in Contract Labour (Regulation and Abolition) Act 1970 have the power to deduct
from the moneys due to the Contractor any sum required or estimated to be required for
making good the loss suffered by a worker or Workers by reason of non-fulfillment of the

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Conditions of the Contractor for the benefit of workers, non-payment of wages or of

deductions made from his or their wages which are not justified by the terms of the
Contract or non-observance of the said regulations.
(x) The Contractor shall indemnify the Owner against any payments to be made under and
for the observance of the provisions of the aforesaid Acts without prejudice to his right to
obtain indemnity from his sub-contractors. In the event of the contractor committing a
default or breach of any of the provisions of the aforesaid Acts as amended from time to
time, of furnishing any information or submitting or filling any Form/Register/Slip under
the provisions of these Acts which is materially incorrect then on the report of the
inspecting Officers the Contractor shall without prejudice to any other liability pay to the
owner a sum not exceeding Rs. 50.00 as liquidated damages for every default, breach of
furnishing, making submitting, filling materially incorrect statement as may be fixed by the
Engineer-in-Charge and in the event of the contractor's default continuing in this respect
the liquidated damages may be enhanced to Rs. 50.00 per day of default subject to a
maximum of one percent of the estimated cost of the works put to tender. The Engineer-
in-Charge shall deduct such amount from bills or security deposit of the Contractor and
credit the same to the welfare fund constituted under these acts. The decision of the
Engineer-in-Charge in this respect shall be final and binding.

84 Implementation Of Apprentices Act 1961:

The contractor shall comply with the provisions of the Apprentices Act 1961 and the Rules and
orders issued thereunder from time to time. If he fails to do so, his failure will be a breach of the
contract and the Engineer-in-Charge may, at his discretion, cancel the contract. The contractor
shall also be liable for any pecuniary liability arising of any violation by him of the provisions of
the Act.

85 Contractor to Indemnify the Owner:

85.1 The contractor shall indemnify the Owner and every member, Officer and employee of the
owner, also the Engineer-in-Charge and his staff against all actions, proceedings, claims,
demands costs and expenses whatsoever arising out of or in connection with the matter referred
to in clause 81 and elsewhere and all actions, proceedings, claims demands costs and expenses
which may be made against the Owner for or in respect of or arising out of any failure by the
contractor in the performance of his obligations under the contract. The Owner shall not be liable
for or in respect of any demand or compensation payable by law in respect or in consequence of
any accident or injury to any workman or other person in the employment of the contractor or his
sub-contractor and contractor shall indemnify and keep indemnified the Owner against all such
damage and compensation and against all claims, damages, proceedings, costs, charges and
expenses whatsoever thereof or in relation thereto.

85.2 Payment of Claims and Damages:

Should the Owner have to pay any money in respect of such claims or demands as aforesaid the
amount so paid and the cost incurred by the Owner shall be charged to and paid by the
Contractor and the contractor shall not be at liberty to dispute or question the right of the Owner
to make such payments notwithstanding the same may have been made without his consent or
authority or in law or otherwise to the contrary.

85.3 In every case in which by virtue of the provisions of section 12, sub-section (i) of workmen’s
compensation Act, 1923 or other applicable provision of Workman Compensation act or any
other act, the Owner is obliged to pay compensation to workman employed by the contractor in
execution of the works, the Owner will recover from the contractor the amount of the
compensation so paid, and without prejudice to the rights of Owner under section 12, sub-section
(2) of the said act. Owner shall be at liberty to recover such amount or any part thereof by
deducting it from the security deposit or from any sum due to the contractor whether under this

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contract or otherwise. The Owner shall not be bound to contest any claim made under section
12 sub-section (I) of the said Act except on the written request of the contractor and upon his
giving to the Owner full security for all costs for which the Owner might become liable in
consequence of contesting such claims.

86. Health and Sanitary Arrangements For Workers:

86.1 In respect of all labour directly or indirectly employed in the works for the performance the
contractor’s part of this agreement, the contractor shall comply with or cause to be complied with
all the rules and regulations of the local sanitary and other authorities or as framed by the Owner
from time to time for the protection of health and sanitary arrangements for all workers.
86.2 The contractor shall provide in the labour colony all amenities such as Electricity, water and other
sanitary and health arrangements. The Contractor shall also provide necessary surface
transportation to the place of work and back to the colony for their personnel accommodated in
the labour colony.
87. Arbitration:
All disputes or differences whatsoever which shall at any time arise between the parties hereto
touching or concerning the works or the execution or maintenance thereof of the contract or the
rights touching or concerning the works or the execution or maintenance thereof of this contract
or the construction meaning operation or effect thereof or to the rights or liabilities of the parties
or arising out of or in relation thereto whether during or after completion of the contract or
whether before or after determination, fore closure or breach of the contract (other than those in
respect of which the decision of any person is by the contract expressed to be final and binding
shall after written notice by either party to the contract to the other of them and to the Appointing
Authority hereinafter mentioned be referred for adjudication to a sole Arbitrator to be appointed
as hereinafter provided.

For the purpose of appointing the sole Arbitrator referred to above, the Appointing Authority will
send within thirty days of receipt of the notice, to the contractor a panel of three names of
persons.

The contractor shall on receipt of the names as referred selected any one of the person names
to be appointed as a sole Arbitrator and communicate his name to the Appointing Authority within
thirty days of receipt of the names. The appointing Authority shall there upon without any delay
appoint the said person as the sole Arbitrator. If the contractor fails to communicate such
selection as provided above within the period specified, the Appointing Authority shall make the
selection and appoint the selected person as the sole Arbitrator.

If the Arbitrator so appointed is unable or unwilling to act or resigns his appointment or vacate his
office due to any reason whatsoever sole Arbitrators shall be appointed as aforesaid. The work
under the contract shall, however continue during the arbitration proceedings.

The Arbitrator shall be deemed to have entered on the reference on the date he issues notices to
both the parties fixing the date of the first hearing.

The Arbitrator may, from time to time, with the consent of the parties, enlarge the time for making
and publishing the award.

The Arbitrator shall give a separate award in respect of each dispute or difference and shall give
a reasoned and speaking award/ awards.

The venue of arbitration shall be at Bhubaneswar. However, if the situation so warrants, it may,
as and when required, be held at the place where the site of work is situated.

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The fees, if any, of the Arbitrator shall, if required to be paid before the award is made and
published be paid half and half by each of the parties. The costs of the reference and of the
award including the fees, if any of the Arbitrator shall be in the discretion of the Arbitrator who
may direct to and by whom and in what manner, such costs or any part thereof shall be paid may
fix or settle the amount of costs to be so paid.

The award of the arbitrator shall be final and binding on both the parties.

Subject to aforesaid, the provisions of the Arbitration Act 1940 or any statutory modification or re-
enactment thereof and the rules made thereunder, and for the time being in force shall apply to
the arbitration proceeding under this clause.

For Public Sector Enterprises guidelines as per the circular of BPE No. 15/9/86-BPE (FIN) dated
30.03.89 as amended time to time will be followed.

88. Jurisdiction/ Governing Laws:

(a) Jurisdiction:

For all disputes arising of this contract, the jurisdiction shall be lie under the jurisdiction of
direct courts in the respective areas in the State of ORISSA (India) only.

(b) Governing Laws:

The contract shall be governed by and constructed according to the laws in force in
INDIA.

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SECTION – IX
SAFETY CODE

89. GENERAL:
Contractor shall adhere to safe construction practice and guard against hazardous and unsafe
working conditions and shall comply with Owner’s safety rules as set forth herein. Prior to start
of construction, contractor will be furnished copies of Owner’s ‘Safety Code’ for information and
guidance, if it has been prepared.

90. SAFETY REGULATIONS:

90.1. In respect of all labour, directly or indirectly employed in the work for the performance of
contractor’s part of this agreement, the contractor shall at his own expense arrange for all the
safety provisions as per (i) Safety codes of CPWD & Indian Standards Instructions (ii) The
electricity Act, (iii) The Mines Act, and (iv) Regulations. Rules and orders made thereunder and
such other acts as applicable.
90.2. The contractor shall observe and abide by all fire and safety regulations of the Owner. Before
starting construction work, contractor shall consult Owner’s Safety Engineer or Engineer-in-
Charge and must make good to the satisfaction of the Owner any loss or damage due to fire to
any portion of the work done under this contract or to any of the Owner’s existing property.

91. First Aid and Industrial Injuries:

(i) Contractor shall maintain first aid facilities for his employees and those of his
subcontractors.

(ii) Contractors shall make outside arrangements for ambulance service and for treatment of
industrial injuries. Name of those providing these services shall be furnished to Owner
prior to start of constructions and their telephone numbers shall be prominently posted in
Contractor’s field office.

(iii) All critical industrial injuries shall be reported promptly to owner, and a copy of
Contractor’s report covering each personal injury requiring the attention of a physical
shall be furnished to the Owner.

92. General Rules:

Smoking within the Battery Areas, rank farm, or dock limits in strictly prohibited. Violators of the
“No Smoking” rules shall be discharged immediately”.

93. Contractor’s Barricades:

(i) Contractor shall erect and maintain barricades required in connection with his operation to
guard or protect.
(a) Excavations.
(b) Hosting Areas.
(c) Areas adjudged hazardous by Contractor’s or Owner’s Inspectors.
(d) Owner’s existing property subject to damage by Contractor’s operation.
(e) Rail road unloading spots.
(ii) Contractor’s employees and those of his sub-contractors shall become acquainted with
Owner’s barricading practice and shall respect the provisions thereof.
(iii) Barricades and hazardous areas adjacent to but not located in normal routes of travel shall
be marked by red flasher lanterns at nights.

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94. Scaffolding:
(i) Suitable scaffoldings should be provided for workmen for all works that cannot safety be
done from the ground or from solid construction except such short period works as can be
done safely from ladders. When a ladder is used a Mazdoor shall be engaged for holding the
ladder and if the ladder is used for carrying materials as well, suitable footholds and
handholds shall be provided on the ladder and the ladder shall be given an inclination not
steeper than 1 in 4 (1 horizontal and 4 vertical).

(ii) Scaffolding or staging more than 4 metres above the ground or floor swing on suspended
from an overhead support or erected with stationary support shall have a guard rail properly
attached, bolted, braced and otherwise retarded at least one metre high above the floor or
platform of such scaffolding or staging and extending along with entire length of the outside
and ends thereof with only such openings as may be necessary for the delivery of materials.
Such scaffolding or staging shall be so fastened as to prevent it from swaying from the
building or structure.
(iii) Working platform, gangways and stairways should be so constructed that they should not sag
unduly or unequally and if the height of the platform of gangway or the stairway is more than
4 metres above ground level or floor level, they should closely boarded, should have
adequate width and should be suitable fastened as described in (ii) above.
(iv) Every opening in the floor of a building or in a working platform be provided with suitable
means to prevent the fall of persons or materials by providing suitable fencing or railing
whose minimum height shall be 1 metre.
(v) Safe means of access shall be provided to all working platforms and other working places.
Every ladder shall be security fixed. No portable single ladder shall be over 9 metres in
length. The width between the side rails in run ladder shall in no case be less than 30 cm.
For ladder upto and including 3 metres in length; for longer ladders this width should be
increase at least 15 mm for each additional metre of length. Uniform step spacing shall not
exceed 30 cms. Adequate precautions shall be taken to prevent danger from electrical
equipment. No materials on any of the sites of work shall be so stacked or placed as to
cause danger or inconvenience to any person or public. The contractor shall also provide all
necessary fencing and lights to protect the workers and staff from accidents, and shall be
bound to bear the expenses of defence of every suit, action or other proceedings of law that
may be brought by any person for injury sustained owing to neglect of the above precautions
and to pay any damages and cost which may be awarded in any such suit or action or
proceedings to any such person or which may with the consent of the contractor be paid to
compromise any claim by any such person.

95. Excavation and Trenching:

All trenches 1.2 metres or more in depth, shall at all times be supplied with at least one ladder for
each 50 M length or fraction thereof.

Ladder shall be extended from bottom of the trench to at least 1 metre above the surface of the
ground. The sides of the trenches which are 1.5 metres in depth shall be stepped back to give
suitable slope, or securely held by timber bracing, so as to avoid the danger of sides to collapse.
The excavated materials shall not be placed within 1.5 metres of the edge of the trench or half of
the trench width whichever is more. Cutting shall be done from top to bottom. Under no
circumstances undermining or under-cutting shall be done.

96. General Safety:

(i) Before any demolition work is commenced and also during the process of the demolition
work.
(a) All roads and open areas adjacent to the work site shall either be closed or suitably

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protected.
(b) No electric cable or apparatus which is liable to be a source of danger shall remain
electrically charged.
(c) All practical steps shall be taken to prevent danger to persons employed from risk of
fire or explosion or flooding. No floor, roof or other part of the building shall be so
overloaded with debris or materials as to render it unsafe.
(ii) All necessary personal safety equipment as considered adequate by the Engineer-in-
Charge, should be kept available for the use of the persons employed at the site and
maintained condition suitable for immediate use and the contractor should take adequate
steps to ensure proper use of equipment by persons concerned as outlined below:
(a) Workers employed on mixing asphalt materials, cement and lime mortars shall be
provided with protective footwear and protective gloves.
(b) Those engaged in white washing and mixing or stacking of cements bags or any
materials which are injurious to the eyes shall be provided with protective goggles.
(c) Those engaged in welding and cutting works, shall be provided with protective face and
eye –shields, hand gloves etc.
(d) Stonebreakers shall be provided with protective goggle and protective clothing and
seated at sufficiently safe intervals.
(e) When workers are employed in sewers and manholes which are in use, the contractor
shall ensure that the manhole cover are opened and are ventilated at least for an hour
before the workers are allowed to get into the manholes, and the manholes so opened
shall be cordoned off with suitable railing and provided with warning signals or board to
prevent accident to the public.
(f) The contractor shall not employ men below the age of 18 years and women on the work
of painting with products containing lead in any form. Wherever men above the age of
18 years are employed on the work of lead painting, the following precautions should be
taken:
(1) No paint containing lead or lead products shall be used except in the form paste
or readymade paint.
(2) Suitable facemasks should be supplied for use by the workers when paint is
applied in the form of spray or a surface having lead paint dry rubbed and
scrapped.
(3) Overalls shall be supplied by the Contractor to the workmen and adequate
facilities shall be provided to enable the working painters to wash them on
cessation of work.
(iii) When the work is done near any place where there is a risk of drowning all necessary safety
equipment shall be provided and kept ready for use and all necessary steps taken for prompt
rescue of any person in danger and adequate provision should be made for prompt first aid
treatment of all injuries likely to be sustained during the course of the work.
(iv) Use of hoisting machines and tackles including their attachments anchorage and supports
shall conform to the following standard or conditions:
(a) These shall be of good mechanical construction, sound materials and adequate
strength and free from patent defect and shall be kept in good working order.
(b) Every rope used in hoisting or lowering materials or as means of suspension shall be of
durable quality and adequate strength and free from patent defects.
(c) Every crane driver or hoisting appliance operator shall be properly qualified and no
person under the age of 21 years should be in charge of any hoisting machine including
any scaffolding which or give signals to the operator.
(d) In case of every hoisting machine and of every chain ring hook, shackle swivel and
pulley block used in hoisting or lowering or as means of suspension, the safe working
load shall be ascertained by adequate means. Every hoisting machine and all gear
referred to above shall be marked with the safe working load and the conditions under
which it is applicable shall be clearly indicated. No part of any machine or any gear

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GENERAL CONDITIONS OF CONTRACT

referred to above in this paragraph shall be loaded beyond the safe working load except
for the purpose of testing.
(e) In case of department machines, the safe working load shall be notified by the
Engineer-in-Charge. As regards contractor’s machines, the contractor shall notify the
safe working load of the machine to the Engineer-in-Charge, whenever he brings any
machinery to site of work and get it verified by the Engineer-in-Charge.
(v) Motors, gears, transmission lines, electric wiring and other dangerous parts of hoisting
appliances should be provided with efficient safe-guards. Hoisting appliances should be
provided with such means as to reduce to the minimum the accidental descent of the load,
adequate precaution should be taken to reduce to the minimum the risk of any part or
parts of a suspended load becoming accidentally displaced. When workers are employed
on electrical installations, which are already energized, insulating mats, wearing apparel
such as gloves sleeves and boots as may be necessary should be provided. The workers
shall not wear any rings, watches and carry keys or other materials, which are good
conductors or electricity.
(vi) All scaffolding, ladders and other safety devices mentioned or described herein shall be
maintained in safe conditions and no scaffoldings, ladder or equipment shall be altered or
removed while it is in use. Adequate washing facilities should be provided at or near
places of works.
(vii) These safety provisions should be brought to the notice of all concerned by displaying on
a notice board at a prominent place at the work spot. The person responsible for
compliance of the safety code shall be named therein by the contractor.
(viii) The ensure effective enforcement of the rules and regulations relating to safety
precautions, the arrangements made by the contractor shall be open to inspection by the
welfare officer Engineer-in-Charge or safety Engineer of the Administration or their
representatives.
(ix) Notwithstanding the above clauses there is nothing in these to exempt the contractor from
the operations of any other Act or rules in force in the Republic of India. The works
throughout, including any temporary works, shall be carried out in such a manner as n9ot
to interfere in any way whatsoever with the traffic on any roads or footpaths at the site or in
vicinity thereto or any existing works whether the property of the Administrations or of a
third party.
97. Care in handling Inflammable gas:
The Contractor has to ensure all precautionary measures and exercise utmost care in handling
the inflammable gas cylinder/ inflammable liquids/ paints etc. as required under the law and/ or
as advised by the fire authorities of the Owner.
98. Temporary Combustible Structures:
Temporary combustible structures will not be built near or around work site.
99. Precautions Against Fire:
The Contractor will have to provide Fire Extinguisher/ Fire Buckets and drums at work site as
recommended by Engineer-in-Charge. They will have to ensure all precautionary measures and
exercise utmost care in handling the inflammable gas cylinders/ inflammable liquid/ paints etc. as
advised by Engineer-in-Charge. Temporary combustible structures will not be build near or
around the work-site.
100. Explosives:
Explosives shall not be stored or used on the works or on the site by the contractor without the
permission of the Engineer-in-Charge in writing and then only in the manner and to the extent to
which such permission is given. When explosives are required for the works they shall be stored
in a special magazine to be provided at the cost of the contractor in accordance with the Explosive
Rules. The contractor shall obtain the necessary licence for the storage and the use of explosives
and all operations in which or for which explosives are employed shall be at sole risk and

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responsibility of the contractor and the contractor shall indemnify the owner against any loss or
damage resulting directly or indirectly therefrom.
101. Mines Act:
101.1 Safety Code: The contractor shall at his own expense arrange for the safety provisions as
required by the Engineer-in-Charge in respect of all labour directly employed for performance of
the works and shall provide all facilities in connection therewith. In case the Contractor fails to
make arrangements and provides necessary facilities as aforesaid. The Engineer-in-Charge shall
be entitled to do so and recover the costs thereof from the Contractor.

101.2 Failure to comply with Safety code or the provisions relating to report on accidents and to grant of
maternity benefits to female worker shall make the Contractor liable to pay Company liquidated
damages an amount not exceeding Rs. 50/- for each default or materially incorrect statement.
The decision of the Engineer-in-Charge in such matters based on reports from the Inspecting
Officer or from representatives of Engineer-in-Charge shall be final and binding and deductions
for recovery of such liquidated damages may be made from any amount payable to the Contractor
from all the provisions of the Mines Act 1952 or any statutory modification’s or re-enactment
thereof the time being in force and any Rules and Regulations made thereunder in respect of all
the persons employed by him under this contractor and shall indemnify the Owner from and
against any claim under the Mines Act or the rules and regulations framed thereunder by or on
behalf of and persons employed by him or otherwise.

102. Preservation of Peace:

The Contractor shall taken requisite precautions and use his best endeavors to prevent any
riotous or unlawful behaviour by or amongst his workmen and other employed on the works and
for the preservation of peace and protection of the inhabitants and Security of property in the
neighborhood of the work. In the event of the Owner requiring the maintenance of a special
Police force at or in the vicinity of the site during the tenure of works, the expenses thereof shall
be borne by the Contractor and if paid by the Owner shall be recoverable from the Contractor.
103. Outbreak of Infectious Diseases:
The Contractor shall remove from his camp such labour and their families as refuse protective
inoculation and vaccination when called upon to do so by the Engineer-in-Charge’s
Representative. Should Cholera, Plague or other infectious diseases break out the Contractor
shall burn the huts, bedding clothes and other belonging of or used by the infected parties and
promptly erect new huts on healthy sites as required by the Engineer-in-Charge failing which
within the time specified in the Engineer’s requisition, the work may be done by the Owner and
the cost thereof recovered from the Contractor.
104. Treatment of Contractor’s Staff in Company’s Hospital:
The Contractor and his staff, other than labourers and their families requiring medical aid from the
Owner’s hospitals and dispensaries will be treated as private patients and charged accordingly.
The contractor’s labourers and their families will be granted from treatment in the Owner’s
hospitals and dispensaries where no other hospitals or dispensaries are available provided the
contractor pays the cost of medicines dressing and money accordingly to the normal scale as also
additional charges if any for special examination e.g. X- Ray etc.
105. Use of Intoxicants:
The sale of dent spirits or other intoxicating beverages upon the work in any of the buildings,
encampments or tenements owned, occupied by or within the control of Contractor or any of his
employee is forbidden and the contractor shall exercise his influence and authority to the utmost
extent to secure strict compliance with this condition.
In addition to the above, the contractor shall abide by the safety code provision as per CPWD
safety code and Indian Standard Code framed from time to time.

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PROFORMA FOR BANK GUARANTEE FOR EARNEST MONEY DEPOSIT

(To be executed on non-judicial stamped paper of appropriate value)

B. G. No._____________ Date:_____________

1. WHEREAS, M/s National Aluminium Company Limited (A Government of India Enterprise),

having its Corporate Office at NALCO BHAWAN, P-1 Nayapalli, Bhubaneswar (hereinafter called
“Company”/ “Owner” which expression shall unless repugnant to the subject or context includes
its legal representatives, successors and assigns) has issued tender paper vide its Tender
No……………………………………………for ----------------------------------------------------------------------
---------- (hereinafter called “the said tender”) to M/s. ……………………………(here in after called
the said Tenderer(s)” which expression shall unless repugnant to the subject or context includes
their legal representatives, successors and assigns and as per terms and conditions of the said
tender, the tenderer shall submit a Bank guarantee for Rs. …………… (Rupees ……………..only)
towards earnest money in lieu of cash.

2. WE ……………………………..Bank having its branch office at ………………..do hereby undertake

to pay the amount due and payable under this guarantee without any demur, merely on a demand
from the Company stating that in the opinion of the company which is final and binding, the
amount claimed is due because of any withdrawal of the tender or any material alteration to the
tender after the opening of the tender by way of any loss or damage caused to or would be
caused or suffered by the Company by reason of any breach by the said tenderer(s) of any of the
terms and conditions contained in the said tender or failure to accept the letter of Intent
Agreement or that the amount covered under this Guarantee is forfeited. Any such demand made
on the Bank by the owner shall be conclusive as regards the amount due and payable by the
Bank under this guarantee, However, our liability under this guarantee shall be restricted to an
amount not exceeding Rs………………..(Rupees………………..only).
3. We undertake to pay to the Company any money so demanded not withstanding any dispute or
disputes raised by the tenderer (s) in any suit or proceeding pending before any office, court or
tribunal relating thereto our liability under this present guarantee being absolute and unequivocal.
The payment so made by us under this bond shall be a valid discharge of our liability for payment
there under. Our liability to pay is not dependent or conditional on the owner proceeding against
the tenderer.
4. The guarantee herein contained shall not be determined or affected or suspended by the
liquidation or winding up, dissolution or change of constitution or insolvency of the said tenderer(s)
but shall in all respect and for all purposes be binding and operative until payment of all money
due or liabilities under the said contract(s)/ Order(s) are fulfilled.
5. WE ……………………….….. Bank Ltd. further agree that the guarantee herein contained shall
remain in full force and effect during the period that would be taken for the finalisation of the said
tender and that it shall continue to be enforceable till the said tender is finally decided and order
placed on the successful tenderer(s) and or till all the dues of the company under or by virtue of
the said tender have been fully paid and its claims satisfied or discharged or till a duly authorised
officer of the company certifies that the terms and conditions of the said tender have been fully
and properly carried out by the said tenderer (s) and accordingly discharges the guarantee.
6. That the Owner Company will have full liberty without reference to us and without
affecting this guarantee to postpone for any time or from time to time. The exercise of
any of the power of the owner under the tender.
7. Notwithstanding anything contained herein before, our liability shall not exceed
Rs………………….(Rupees…………………………only) and shall remain in force
till……………..Unless a demand or claim under this Guarantee is made on us within three months
from the date of expiry we shall be discharged form all the liabilities under this guarantee.

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8. We………………Bank, lastly undertake not to revoke this guarantee during its currency except
with the previous consent of the Company in writing. We further undertake to keep this Guarantee
renewed from time to time on the request of Tenderer (s).

Date……………..

………………………….Bank
Corporate Seal of the Bank By its constitutional Attorney

Signature of duly
Authorised person
On behalf of the Bank
With seal & signature code

(BGs to be furnished from any of the banks listed in Annexure)

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GENERAL CONDITIONS OF CONTRACT

PROFORMA FOR BANK GUARANTEE FOR SECURITY DEPOSIT

(To be executed on non-judicial stamped paper of appropriate value)
B. G. No._____________ Date:_____________

In consideration of National Aluminium Company Limited (A Government of India Enterprise),

having its Corporate Office at NALCO BHAWAN, P-1 Nayapalli, Bhubaneswar (hereinafter called
“Company”/ “Owner” which expression shall unless repugnant to the subject or context includes its legal
representatives, successors and assigns) having agreed to exempt M/s. …………………………
(Hereinafter called “the said Contractor (s)/ Seller(s)” which expression shall unless repugnant to the
subject or context includes their legal representatives, successors and assigns) from the demand under
the terms and conditions of Contract(s)/ Order(s) No. ………… , dt. ………………of cash security deposit
for the due fulfillment by the said contractor(s) seller(s) of the terms and conditions contained in the said
Contract(s)/Order(s), on production of Bank Guarantee for Rs…….……………
(Rupees……………………………………..only).

2. We ……………………………..Bank having its branch office at ……..do hereby agree and undertake to
pay the amount due and payable under this guarantee without any demur, merely on a demand from the
Company stating that in the opinion of the company which is final and binding, the amount claimed is due
by way of loss or damage caused to or would be caused to or suffered by the Company by reason of any
breach by the said Contractor(s)/seller(s) of any of the terms and conditions contained in the said
contract(s) orders(s) or by reasons of the said Contractor(s)/ Seller(s) failure to perform the said
Contract(s)/ Order(s) including defect liability obligations or that the amount covered under this guarantee
is forfeited. Any such demand made on the Bank by the owner shall be conclusive as regards the
amount due and payable by the Bank under this guarantee. However, our liability under this guarantee
shall be restricted to an amount not exceeding Rs………………. (Rupees………………..only).

3. We undertake to pay to the Company any money so demanded not withstanding any dispute or
disputes raised by the contractor (s)/ Seller(s) in any suit or proceeding pending before any office, court
or tribunal relating thereto our liability under present guarantee being absolute and unequivocal. The
payment so made by us under this bond shall be valid discharge of our liability for payment thereunder.
Our liability to pay is not dependent or conditional on the owner proceeding against the Contractor(s)/
Seller(s).
4. The guarantee herein contained shall not be determined or affected or suspended by the liquidation or
winding up, dissolution or change of constitution or insolvency of the said Contractor(s)/ Seller(s) but shall
in all respect and for all purposes be binding and operative until payment of all money due or liabilities
under the said contract(s)/ Order(s) are fulfilled.
5. We ……………..Bank further agree that the guarantee herein contained shall remain in full force and
effect during the period that would be taken for the performance of the said Contract(s)/ Order(s) and that
it shall continue to be enforceable till all the dues of the company under or by virtue of the said
Contract(s)/Order(s) have been fully paid and its claims satisfied or discharged or till a duly authorised
officer of the company certifies that the terms and conditions of the said Contract(s)/Order(s) have been
fully and properly carried out by the said contractor(s) and accordingly discharges the guarantee.
6. We ……………Bank further agree with the Company that the company shall have the fullest liberty
without our consent and without affecting in any manner our obligations hereunder to vary any of the
terms and conditions of the said Contract(s)/ Order(s) or to extend the time of performance by the said
Contractor(s) Seller(s) form time to time or to postpone for any time or from time to time any of the
powers exercisable by the Company against the said Contractor(s)/ Seller(s) and to forbear or enforce
any of the terms and conditions relating to the said Contract(s)/ Order(s) and we shall not be relieved
from our liability by reason of any such variations, or extension being granted to the said Contractor (s)/
Seller(s) or for any forbearance, act or omissions on the part of the Company or any indulgence by the
Company to the said Contractor(s)/ Seller(s) or by any such matter or thing whatsoever which under the
law relating to sureties would, but for this provision, have affect of so relieving us.

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GENERAL CONDITIONS OF CONTRACT

7. Notwithstanding anything contained herein before, our liability shall not exceed
Rs………………….(Rupees…………………………only) and shall remain in force till……………..Unless a
demand or claim under this Guarantee is made on us within three months from the date of expiry we shall
be discharged form all the liabilities under this guarantee.

8. We…………………Bank, lastly undertake not to revoke this guarantee during its currency except with
the previous consent of the Company in writing. We further undertake to keep this Guarantee renewed
from time to time at the request of Contractor(s)/ Sellers(s).

Date………. ………………………….Bank

Corporate Seal of the Bank By its constitutional Attorney

Signature of duly
Authorised person
On behalf of the Bank
With seal & signature code

(BGs to be furnished from any of the banks listed in Annexure)

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GENERAL CONDITIONS OF CONTRACT

PROFORMA FOR CONTRACT CUM PERFORMANCE GUARANTEE BY SELLER/

CONTRACTOR.
(To be executed on non-judicial stamped paper of appropriate value)
B. G. No…………………… Date……………….

WHEREAS National Aluminium Company Limited (A Government of India Enterprise) having its
Corporate Office at NALCO BHAWAN, P-1 Nayapalli, Bhubaneswar (hereinafter called “Company’/
‘Owner” which expression shall unless repugnant to the subject or context includes its legal
representatives, successors and assigns) has entered into a contract with M/s.
………………………………. / has placed a purchase order on M/s………………………….(hereinafter
referred to as “Contractor(s)/ Seller(s)” which expression shall unless repugnant to the subject or context
includes their legal representatives, successors and assigns) for …………………………….on the terms
and conditions as set out inter alia, in the Company’s contract No./ P.O. No. ………….. date
…………and various documents forming part thereof hereinafter referred to as the “said contract” which
expression include all amendments, modifications and/ or variations thereto and where as the
Contractor(s)/ Seller(s) has agreed for due execution of the entire contract and guarantees its
performance including any parts executed through any other agencies/ subcontractors.

AND WHEREAS one of the conditions of the “said contract” is that “contractor(s)/seller(s) shall furnish to
the owner a Bank Guarantee from a bank for …….%(……….percent) of the total value of the “said
contract” against due and faithful performance of the “said contract” including defect liability obligations”
and the performance guarantee obligations of the contractor(s)/seller(s) for execution/ supplies made
under the “said contract.”

2. We ………………………………..Bank having its branch office at …………..do hereby agree and

undertake to pay the amount due and payable under this guarantee without any demur merely on a
demand from the Company stating that in the opinion of the Company, which is final & binding, the
amount claimed is due by reason of default made by the Contractor(s)/ Seller(s) in performing any of the
terms & conditions of the said Contract including defect liability obligations, in fulfilling the performance
guarantee obligation or loss or damage caused to or would be caused to or suffered by the Company by
reason of any breach by the said Contractor (s)/ Seller(s) of any of the terms & conditions of the contract.
Any such demand made on the Bank by the owner shall be conclusive as regards the amount due and
payable by the Bank under this guarantee. However our liability under this guarantee shall be restricted
to Rs.…… (Rupees…………………………only).
3. We undertake to pay to the Company any money so demanded not withstanding any dispute or
disputes raised by the contractor (s)/ Seller(s) in any suit or proceeding pending before any office, court
or tribunal relating thereto our liability under this present guarantee being absolute and unequivocal. The
payment so made by us under this bond shall be a valid discharge of our liability for payment thereunder.
Our liability to pay is not dependent or conditional on the owner proceeding against the Contractor(s)/
Seller(s).
4. The guarantee herein contained shall not be determined or affected or suspended by the liquidation or
winding up, dissolution or change of constitution or insolvency of the said Contractor(s)/ Seller(s) but shall
in all respect and for all purposes be binding and operative until payment of all money due or liabilities
under the said contract(s)/ Order(s) are fulfilled.
5. We ……………..Bank further agree that the guarantee herein contained shall remain in full force and
effect during the period that would be taken for the performance of the said Contract(s)/ Order(s) and that
it shall continue to be enforceable till all the dues of the company under or by virtue of the said
Contract(s)/Order(s) have been fully paid and its claims satisfied or discharged or till a duly authorised
officer of the company certifies that the terms and conditions of the said Contract(s)/Order(s) have been
fully and properly carried out by the said contractor(s) and accordingly discharges the guarantee.

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6. We ……………Bank further agree with the Company that the company shall have the fullest liberty
without our consent and without affecting in any manner our obligations hereunder to vary any of the
terms and conditions of the said Contract(s)/ Order(s) or to extend the time of performance by the said
Contractor(s) Seller(s) form time to time or to postpone for any time or from time to time any of the
powers exercisable by the Company against the said Contractor(s)/ Seller(s) and to forbear or enforce
any of the terms and conditions relating to the said Contract(s)/ Order(s) and we shall not be relieved
from our liability by reason of any such variation, or extension being granted to the said Contractor (s)/
Seller(s) or for any forbearance, act or omission on the part of the Company or any indulgence by the
Company to the said Contractor(s)/ Seller(s) or by any such matter or thing whatsoever which under the
law relating to sureties would, but for this provision, have affect of so relieving us.

7. Notwithstanding anything contained herein before, out liability shall not exceed
Rs………………….(Rupees…………………………only) and shall remain in force till……………..Unless a
demand or claim under this Guarantee is made on us within three months from the date of expiry we shall
be discharged form all the liabilities under this guarantee.

8. We…………………Bank, lastly undertake not to revoke this guarantee during its currency except with
the previous consent of the Company in writing. We further undertake to keep this Guarantee renewed
from time to time at the request of Contractor(s)/ Sellers(s).

Date………. …….…………………….Bank
Corporate Seal of the Bank By its constitutional Attorney
Signature of duly Authorised
person on behalf of the Bank
with seal & signature code

(BGs to be furnished from any of the banks listed in Annexure.)

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GENERAL CONDITIONS OF CONTRACT

BANK GUARANTEE FOR ADVANCE PAYMENT

(To be executed on non-judicial stamped paper of appropriate value)

B.G. No._____________ Date:_____________

In consideration of National Aluminium Company Limited (A Government of India Enterprise),
having its Corporate Office at NALCO BHAWAN, P-1 Nayapalli, Bhubaneswar (hereinafter called
“Company”/ “Owner” which expression shall unless repugnant to the subject or context includes
its legal representatives, successors and assigns) having agreed to make an advance payment of
Rs…………………… (Rupees……………………..only) to M/s. …………………….. (here in after
called “the said Contractor (s)/ Seller(s)” which expression shall unless repugnant to the subject or
context includes their legal representatives, successors and assigns) from the demand under the
terms and conditions of Contract/Order dated. ………………on production of a bank guarantee of
equivalent amount.

2. We ……………………………..Bank having its branch office at ……..do hereby agree and

undertake to pay the amount due and payable under this guarantee without any demur, merely on
a demand from the Company stating that in the opinion of the company which is final and binding,
the amount claimed is due by way of loss or damage caused to or would be caused to or suffered
by the Company by reason of non-payment / adjustment of any part of the said advance or any
dues to the company or any breach by the said Contractor(s)/seller(s) of any of the terms and
conditions contained in the said contract(s) orders(s) or by reasons of the Contractor(s)/ Seller(s)
failure to perform the said Contract(s)/ Order(s). Any such demand made on the Bank by the
owner shall be conclusive as regards the amount due and payable by the Bank under this
guarantee, However, our liability under this guarantee shall be restricted to an amount not
exceeding Rs………………..(Rupees………………..only).
3. We undertake to pay to the Company any money so demanded not withstanding any claim
dispute or disputes raised by the contractor (s)/ Seller(s) in any suit or proceeding pending before
any office, court or tribunal relating thereto our liability under this present guarantee being
absolute and unequivocal. The payment so made by us under this bond shall be valid discharge
of our liability for payment thereunder. Our liability to pay is not dependable or conditional on the
owner proceeding against the Contractor(s)/ Seller(s).
4. The guarantee herein contained shall not be determined or affected or suspended by the
liquidation or winding up, dissolution or change of constitution or insolvency of the said tenderer(s)
but shall in all respect and for all purposes be binding and operative until payment of all money
due or liabilities under the said tender are fulfilled.
5. We ……………..Bank Ltd. further agree that the guarantee herein contained shall remain in full
force and effect during the period that would be taken for the finalisation of the said tender and
that it shall continue to be enforceable till the said tender is finally decided and order placed on
the successful tenderer(s) and/or till all the dues of the company under/ or by virtue of the said
tender have been fully paid and its claims satisfied or discharged or till a duly authorised officer of
the company certifies that the terms and conditions of the said tender have been fully and
properly carried out by the said tenderer(s) and accordingly discharges the guarantee.
6. That the Owner/Company will have full liberty without reference to us and without affecting this
guarantee to postpone for any time or from time to time, the exercise of any of the power of the
owner under the tender.
7. Notwithstanding anything contained herein before, our liability shall not exceed
Rs………………….(Rupees…………………………only) and shall remain in force
till……………..Unless a demand or claim under this Guarantee is made on us within three
months from the date of expiry we shall be discharged form all the liabilities under this guarantee.

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GENERAL CONDITIONS OF CONTRACT

8. We…………………Bank, lastly undertake not to revoke this guarantee during its currency except
with the previous consent of the Company in writing. We further undertake to keep this
Guarantee renewed from time to time on the request of the Tenderer(s).

Date………. ………………………….Bank

Corporate Seal of the Bank By its constitutional Attorney

Signature of duly
Authorised person
On behalf of the Bank
With seal & signature code

BGs to be furnished from any of the banks listed in Annexure.

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GENERAL CONDITIONS OF CONTRACT

LIST OF STANDARDISED BANKS

1. SCHEDULED PUBLIC SECTOR BANKS (INDIAN)
1. State Bank of India.
2. State Bank of Bikaner and Jaipur
3. State Bank of Hyderabad
4. State Bank of Indore.
5. State Bank of Mysore.
6. State Bank of Patialia.
7. State Bank of Saurashtra
8. State Bank of Travancore.
9. Allahabad Bank
10. Andhra Bank
11. Bank of Boroda
12. Bank of India
13. Bank of Maharashtra
14. Canara Bank
15. Central Bank of India
16. Corporation Bank
17. Dena Bank
18. Indian Bank
19. Indian Oversea Bank
20. Oriental Bank of Commerce
21. Punjab National Bank
22. Punjab and Sid Bank
23. Syndicate Bank
24. Union Bank of India
25. United Bank of India
26. UCO Bank
27. Vijaya Bank.
(Twenty Seven Banks)
2. SCHEDULED PRIVATE SECTOR BANKS (INDIAN):
1. Vysya Bank
2. UTI Bank Ltd.
3. SBI Commercial & International Bank Ltd.
4. ICICI Banking Corporation Bank Ltd.
5. HDFC Bank Ltd.
6. IDBI Bank Ltd.
(Six Banks)
3. SCHEDULED FOREIGN BANKS:
1. American Express Bank Ltd.
2. ANZ Grindlays Bank Plc
3. Bank of American NT & SA
4. Bank of Tokyo Ltd,
5. Banque Nationale de Paris
6. Barclays Bank Plc
7. Citi Bank N.A.
8. Deutsche Bank A.G.
9. Hongkong & Shanghai Banking Corporation.
10. Standard Chartered Bank
11. The Chase Manhattan Bank Ltd.
12. Dresdner Bank AG.
(Twelve Banks)

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GENERAL CONDITIONS OF CONTRACT

APPENDIX –I A

DETAILS OF WORKS OF SIMILAR NATURE & MAGNITUDE CARRIED OUT

DURING THE LAST 5 YEARS

_____________________________________________________________________________
Sl. Name of work Estimated When When Date of Remarks
No. done cost started completed Completion
As per contract
_____________________________________________________________________________

______________________________________________________________________________

Note : 1. In the remarks column, please state whether the works stated above are carried
out by you in the name of the Firm in which the present Bid is submitted or any
other names. If later, state the relationship of the firm and also a copy of the
Partnership Deed.

2. Please enclose the true copy of the certificate issued by the authorities, if any.

Signature of Bidder

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APPENDIX –I B
Name of Work:

Name of Tenderer:

CONCURRENT COMMITMENTS OF THE TENDERER

Full Postal Description Value Date of Scheduled Percentage Expected Remarks

Address of of the work of commencement Completion Completion date of if any
Client & contract of work period as on date completion
Name of
Officer-in-
Charge

SIGNATURE OF TENDERER

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GENERAL CONDITIONS OF CONTRACT

APPENDIX –II

NAME OF WORK:

NAME OF TENDERER:

DETAILS OF EQUIPMETNS, TOOLS TACKLES

Tenderer shall submit herein details of equipment, tools, tackles, etc required to perform the
work and shall note in each case whether the same is (a) already owned by tenderer and
available for use on this contract (b) anticipated to be hired by Contractor or (c) anticipated to be
purchased by Contractor, in case of (a) anticipated (b) and (c) Location of hirer or supplier shall
be stated.
Sl. Description, Make Year of Category (a) or Location Remarks
No. Mode & Capacity Manufacture (b) or (c) below
(1) (2) (3) (4) (5) (6)

2. Contractor agrees to augment the above chart with additional number/ categories of
equipment, if required to complete the work within the agreed time schedule of completion
and directed by the Engineer-in-charge.
3. In case of hiring of equipment form other agencies, copies of the arrangements made with
the hirer/ supplier shall have to be furnished.

SIGNATURE OF TENDERER

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APPENDIX – III

DETAILS OF MINIMUM MANPOWER PROPOSED TO BE

DEPLOYED ON THIS WORK

_____________________________________________________________________________
Sl. No. Details of Manpower No. Remarks
_____________________________________________________________________________

_____________________________________________________________________________

Note : Please furnish the above details in two categories – To be deployed by (I)
Contractor and (ii) Sub- contractors.

Minimum manpower deployment shall be based broadly as above and will be

modified as mutually agreed to suit the detailed construction programme jointly
worked out; further if any additional man power is required for completion of work
in time, the same shall be provided by you as directed by Engineer without any
extra cost.

The manpower proposed to be deployed in the work needs to be given quarter

wise separately for direct personnel of the contractor and the manpower
proposed to be deployed through the sub-contractors.

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GENERAL CONDITIONS OF CONTRACT

APPENDIX - IV

ORGANISATION CHART SHOWING NO. OF QUALIFIED

ENGINEERS & SUPERVISORY PERSONNEL ETC.
__________________________________________________________________________
Sl. Details of personnel to be No.
No. deployed on this work
__________________________________________________________________________

_____________________________________________________________________________

Note: Names and short resume of their experiences may also be given for key personnel.

The tentative chart of your site organisation as above furnished by you shall be subject
to variation to suit the construction programme/ requirement and as directed by Owner/
Engineer.

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APPENDIX – V
LIST OF PROPOSED SUB CONTRACTORS
______________________________________________________________________________
Sl. Name of Description of Amount (Rs.)
No. sub-contractor work or trade
______________________________________________________________________________

______________________________________________________________________________

1) Types of work executed by the sub-contractors.

2) The particulars of clients where the sub-contractors did the works.
3) Approximate value of the work carried by the sub-contractors in the last 3 years.

( Signature of Bidder )

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GENERAL CONDITIONS OF CONTRACT

APPENDIX – VI

PPROGRESS BILLINGS

(Bidder’s anticipated progress billing month by month to be inserted here)

Tentative construction schedule indicating the expected dates of start of activity is to be given
by the contractor. This schedule shall be updated within specified milestones from time to time
depending upon the availability of fronts equipment and priorities fixed by Engineer. Contractor
shall submit within 15 days of the date of letter of intent programme/ schedule for supply of
items covering all phases of work including design, procurement, manufacture, assembly,
fabrication, testing, transportation, erection, testing at site and commissioning matching the
overall completion schedule.

The billing as well as all the connected documents shall be computerized.

(Signature of Bidder)

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APPENDIX – VII
NAME OF WORK:

NAME OF TENDERER:
INFORMATION ABOUT TENDERERS (FORM – H)

1.0. In case of Individual:

1.1. Name of Business:
1.2. Whether his business is registered:
1.3. Date of Commencement of Business:
1.4. Whether he pays Income Tax over Rs. 10,000/- per year:
2.1. Name of Partnership with qualification:
2.2. Whether the Partnership is Registered:
2.3. Date of Establishment of firm:
2.4. If each of the partners of the firm pays Income Tax over Rs. 10,000/- a year and if not,
who of them pays the same.
3.1. Amount of paid of capital:
3.2. Name of Directors:
3.3. Date of Registration of Company:
3.4. Copies of the Balance Sheet of the Company of the last two years :
2.0. In case of Partnership:
3.0. In case of Limited Liability Company or Company Limited by Guarantees:

Copies of audited Profit & Loss Account and the Balance sheet shall be enclosed in
case of Individuals, partnerships as well as limited companies for the last 3 years.

( Signature of Tenderer)
Name & Address of the Tenderer

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APPENDIX – VIII

NAME OF WORK:

NAME OF TENDERER:

LIST OF ENCLOSURES (FORM – I)

The tenderer is required to enclose the following documents as part of his tenderer.

1. Power of attorney of the signatory to the tender.

2. Income Tax/ Sales Tax Clearance Certificate in the proforma prescribed by the Govt. of
India.
3. Documents showing annual turnover for similar works for the past two years such as
annual report, profit and loss account etc.
4. Solvency Certificate by Nationalized Schedule Bank.

Signature of Tenderer

** In absence of Income Tax Clearance Certificate tenderer may not be awarded the work
tendered for as per Central Govt. Directives.

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GENERAL CONDITIONS OF CONTRACT

APPENDIX – IX

NAME OF WORK:

NAME OF TENDERER:

EXCEPTION AND DEVIATION (FORM – J)

As pointed out in the NIT/ LIT, tenderer may stipulate here exceptions and deviations to the
tender conditions, if considered un-avoidable.
______________________________________________________________________________
Sl. Page No. of Sl. No. of Subject Deviation
No. tenderer document tender document
______________________________________________________________________________

_____________________________________________________________________________

SIGNATURE OF TENDERER

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GENERAL CONDITIONS OF CONTRACT

AMENDMENT TO GCC

Sl Clause Brief Description of Modification

No No Clause
01 2.3 Power Supply i.) Clause No. 2.3 of General Condition of Contract stands
modified to the following extent:
th th
The cost of construction power appearing in the 10 and 11 line
as Rs 1/- per kwh shall be read as Rs.2.85 (Rupees two and
eighty five praise only) per kwh

The state Electricity Inspector appearing in the second line shall

be read as ‘Central Electricity Authority at Chennai’.
2.3.10

02 2.4 Land for Contractor’s Clause No. 2.4 of General Condition of Contract modified to the
Field office, Godown following extend:
and Workshop
“The owner shall provide land to the Contractor for their offices,
go-down and workshop “

03 2.5 Land for Residential Clause No. 2.5 of General Condition of Contract modified to the
Accommodation following extend:

“The land for residential accommodation for staff and labour may
be made available to Contractor outside plant boundary limit.”

04 22 Extension of time The word “any one” appearing in the end of the second para of
Clause No. 22.0 shall be read as “OWNER”.

05 52.3.6 Return of unutilised

materials and i. The words “SAIL, Bhubaneswar stock yard rate” appearing in
rd
scrap/wastage
3 line of first para shall be replaced by “ Landed cost”
ii. The words “Rs.7000/- per tonne” appearing in last para shall
be replaced by “ twice the landed cost of materials”

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06 53 (xv) Conditions for issue The contents of the sub-clause No.53.(xv) shall stand deleted
of materials and replaced with the following:
“For the free issue materials, the following norms shall be
adopted:
i. For issue of materials within plant boundary wall limit, the
Contractor shall submit only indemnity bond for the entire value
of the materials issued to them free of cost as Clause 53 (ix) of
GCC.
ii. For the materials which are issued to out side plant boundary
like township etc., the Contractor shall furnish Bank Guarantee
equivalent to 20 % of value of materials and indemnity bond for
the 80 % value of the materials.
iii. For materials taken out side Damanjodi/ Angul to the vendor’s
Shop, 100 % Bank Guarantee against value of the materials will
be submitted by the vendor before taking of the materials. The
Indemnity Bond and the Bank Guarantee shall remain valid till
the material account is totally settled.

7 60 ( c) Alterations in The words “including equipment hire charges at Schedule

th
Specifications and
hourly/ daily rates” appearing in 7 line shall be replaced by the
Design and Extra
words “ prevalent at site the time of execution”.
Works
8 60(d) Alterations in Add new sub-Clause 60(d) as follows:
Specifications and “The quoted prices/rates indicated in Schedule of Rates shall
Design and Extra remain firm for all variations in contract value within range of (+)
Works 50 % and (-) 25 % for the entire duration of the contract. In case
the actual contract value varies from the awarded contract value
beyond the above mentioned limit than adjustment to contract
value shall be made in accordance with procedure specified in
proforma for adjustment for increase/ decrease in contract value
enclosed as per Annexure in SCC”.
9 76.3(ii) Completion Clause No. 76(ii) of General Condition of Contract shall be
documents replaced by:
“Six sets of construction drawings showing there in execution of
the work duly approved by Engineer-in-charge and one set of
reproducible on polyester film.”
10 80.1 Employees State Delete the word “whose aggregate remuneration is Rs.560.00
rd th nd
Insurance Act
per month or less and” appearing in the 3 & 4 line of the 2
para of this sub clause.

11 New - Add a new clause designated as Sub clause 80.6 after existing
Sub Cl no. 80.5,
clause
“80.6 – The contractor shall comply with all relevant and
applicable statutory provisions in respect of the workers engaged
by him at his cost and above stipulation are only indicative are
not exhaustive.”

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GENERAL CONDITIONS OF CONTRACT

12 83 (viii) Labour Laws Clause 83 (viii) of GCC shall be modified to the following extent:

Add the words “all relevant statutes at their own costs including”
between the words “provisions of” and “the payment of Wages
Act 1936” appearing in the first line of this sub-clause.

Provided further that-

a) The payment of minimum wages to the contract labourers
shall be as per the rates notified by the Central Government, as
per Minimum Wages Act-1948 and as adopted/ circulated by the
NALCO Management from time to time plus additional element of
Rs.12.00 (Rupees twelve only) and statutory dues thereon.
b) The minimum wage as notified by the Chief Labour
Commissioner (Central) has a variable component as Special
Allowance which is linked to average AICPI for Industrial
workers, which keeps on changing every six months. The
contractor has to absorb all such variations due to increase in
Minimum wage in their quoted price, and no claim whatsoever on
this account shall be entertained.
c) The classification of workers in different categories will be as
per the notification issued by the Central Government fixing the
minimum wages for the above scheduled appointment. Where
the minimum wages notified by the concerned State Government
are higher than the rates notified by Central Government, the
State Government rates should apply in concerned scheduled
employment as long as the same remains higher than the
Central Government rates.

13 New Jurisdiction / Add a new clause designated as Sub clause 88 (c) after existing
Clause Governing Law Cl no. 88 (b)

All the works that will be carried out inside the factory premises
shall attract the provisions of factory act for the contract
labourers engaged therein.

The Contractor, before commencement of work will arrange

medical examination at his cost and shall submit the certificate of
fitness in respect of the workers in the prescribed form from the
nearby District HQ hospital or any Govt. Hospital for his workers,
who will be handling or working with hazardous substance.

In respect of contracts having more than one year, the medical

check up of such workers shall have to be repeated by the
contractor on completion of every one year.

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14 79 Taxes & Duties The rates quoted by the tenderer will cover all the taxes, duties,
and levies as applicable on the date of bid/ revised bid (if any).
- In case of any imposition of new taxes by Govt notification at a
later date, same shall be reimbursed to the contractor against
submission of authentic document towards payment of such
taxes by them.

- In case of revision of rate of Works Contract Tax by Govt

notification, same shall be reimbursed to the contractor against
submission of documentary evidence towards payment of such
extra amount by them.

Page 79 of 79

Signature Not Verified

Digitally signed by RAJESH SARKAR
Date: 2024.05.21 12:57:33 IST
Location: eProcure-EPROC