Phone No.: Fax No.

TENDERER

Note: If the tender is made by an individual, it shall be signed with his full name and
his address shall be given. If it is made by a firm, it shall be signed with the co-
partnership name by a member of the firm, who shall also sign his own name,
and the name and address of each member of the firm shall be given, if the
tender is made by a Municipality it shall be signed by a duly authorised officer
who shall produce with his tender satisfactory evidence of his authorisation.
Such tendering Municipality may be required before the contract is executed, to
furnish evidence of its corporate existence. Tenders signed on behalf of G.P.A.
holder will be rejected

1
 CONDITIONS OF CONTRACT

A. GENERAL
1. Interpretation:
1.1 In interpreting these Conditions of Contract, singular also means plural, male also
means female, and vice-versa. Headings have no significance. Works have their
normal meaning under the language of the contract unless specifically defined. The
Engineers-in-charge will provide instructions clarifying queries about the conditions
of Contract.

1.2 The documents forming the Contract shall be interpreted in the following order of
priority:
1) Agreement
2) Letter of Acceptance, notice to proceed with the works
3) Contractor’s Tender (Technical bid)
4) Conditions of contract
5) Specifications
6) Drawings
7) Bill of quantities (Price-bid)
8) Any other document listed as forming part of the Contract.

2. Engineer-in-Charge’s Decisions:
2.1 Except where otherwise specifically stated, the Engineer-in-charge will decide the
contractual matters between the Department and the Contractor in the role
representing the Department.

3. Delegation:
3.1 The Engineer-in-charge may delegate any of his duties and responsibilities to other
officers and may Cancel any delegation by an official order issued.

4. Communications:
4.1 Communications between parties, which are referred to in the conditions, are
effective only when in writing. A notice shall be effective only when it is delivered
(in terms of Indian Contract Act)

5. Sub-contracting:
5.1 If the prime contractor desires to sub-let a part of the work, he should submit the
same at the time of filing tenders itself or during execution, giving the name of the
proposed Sub-contractor, along with details of his qualification and experience. The
Tender Accepting Authority should verify the experience of the Sub-contractor and if
the Sub-contractor satisfies the qualification criteria in proportion to the value of
work proposed to be sub-let, he may permit the same. The total value of works to be
awarded on sub-letting shall not exceed 50% of contract value. The extent of
subletting shall be added to the experience of the sub-contractor and to that extent
deducted from that of the main contractor.

6. Other Contractors:
6.1 The Contractor shall cooperate and share the Site with other contractors, Public
authorities, utilities, and the Department. The Contractor shall also provide facilities
and services for them as directed by the Engineer-in-charge.

2
7. Personnel:
7.1 The Contractor shall employ the required Key Personnel named in the Schedule of
Key Personnel to carry out the functions stated in the Schedule or other personnel
approved by the Engineer-in-charge. The Engineer-in-charge will approve any
proposed replacement of Key Personnel only if their qualifications, abilities, and
relevant experience are substantially equal to or better than those of the personnel
listed in the Schedule.

7.2 Failure to employ the required technical personnel by the contractor the following
amounts will be recovered from the contractor over and above the provision made in
part two of schedule-A from the contractors bills.

7.3 The technical personnel should be on full time and available at site whenever required
by Engineer in Charge to take instructions.

7.4 The names of the technical personnel to be employed by the contractor should be
furnished in the statement enclosed separately.

7.5 In case the contractor is already having more than one work on hand and has
undertaken more than one work at the same time, he should employ separate
technical personnel on each work.

7.6 If the contractor fails to employ technical personnel the work will be suspended or
department will engage a technical personnel and recover the cost thereof from the
contractor.

7.7 If the Engineer-in-charge asks the Contractor to remove a person who is a member of
Contractor’s staff or his work force stating the reasons the Contractor shall ensure
that the person leaves the site forthwith and has no further connection with the work
in the contract.

8. Contractor’s Risks:
8.1 All risks of loss of or damage to physical property and of personnel injury and death,
which arise during and in consequence of the performance of the Contract are the
responsibility of the Contractor.

9. Insurance:
9.1 The Contractor shall provide, in the joint names of the Municipal Commissioner and
the contractor, insurance cover from the Start Date to the end of the Defects Liability
Period i.e., 24 months after completion for the following events which are due to the
Contractor’s risks.
a) Loss of or damage to the Works, Plant and Materials;
b) Loss of or damage to the Equipment;
c) Loss of or damage of property in connection with the Contract; and
d) Personal injury or death of persons employed for construction.
e) Personal injury or death of persons of any third party

9.2 Policies and certificates of insurance shall be delivered by the Contractor to the
Municipal Commissioner at the time of concluding Agreement. All such insurance
shall provide for compensation to be payable to rectify the loss or damage incurred.

i) The contractor shall furnish insurance policy inforce in accordance with

proposal furnished in the Tender and approved by the Department for
concluding the agreement.

3
 ii) The contractor shall also pay regularly the subsequent insurance premia and
produce necessary receipt to the Engineer-in-Charge, well in advance.

iii) In case of failure to act in the above said manner the department will pay the
premium and the same will be recovered from the Contractors payments.

9.3 Alterations to the terms of insurance shall not be made without the approval of the
Engineer-in-Charge.

10. Site Inspections:

10.1 The contractor should inspect the site and also proposed quarries of choice for
materials source of water and quote his percentage including quarrying, conveyance
and all other charges etc.

10.2 The responsibility for arranging the land for borrow area rests with the Contractor and
no separate payment will be made for procurement or otherwise. The contractor’s
quoted percentage will be inclusive of land cost.

11. Contractor to Construct the Works:

11.1 The Contractor shall construct and Commission the Work in accordance with the
specifications and Drawings.

12. Diversion of streams / Vagus / Drains.

12.1 The contractor shall at all times carry out construction of cross drainage works in a
manner creating least interference to the natural flow of water while consistent with
the satisfactory execution of work. A temporary diversion shall be formed by the
contractor at his cost where necessary. No extra payment shall be made for this work.

12.2 No separate payment for bailing out sub-soils, water drainage or locked up rain water
for diversion, shoring, foundations, bailing of pumping water either from excavation
of soils from foundations or such other incidental will be paid. The percentage to be
quoted by the contractor are for the finished item of work in situ and including all the
incidental charges. The borrow pits are also to be de-watered by the contractor
himself at his expense, if that should be found necessary.

12.3 The work of diversion arrangements should be carefully planned and prepared by the
contractor and forwarded to the Municipal Engineer technically substantiating the
proposals and approval of the Municipal Engineer obtained for execution.

12.4 The contractor has to arrange for bailing out water, protection to the work in progress
and the portion of works already completed and safety measures for men and
materials and all necessary arrangements to complete the work.

12.5 All the arrangements so required should be carried out and maintained at the cost of
the contractor and no separate or additional payments is admissible..

12.6 Coffer Dams.

Necessary coffer dams and ring bunds have to be constructed at the cost of contractor
and same are to be removed after the completion of the work. The contractor has to
quote his percentage keeping the above in view.

4
13. Power Supply.
13.1 The contractor shall make his own arrangements for obtaining power from the
Electricity dept., at his own cost. The contractor will pay the bills of Electricity
Department for the cost of power consumed by him.

13.2 The contractor shall satisfy all the conditions and rules required as per Indian
Electricity Act 1910 and under Rule-45(I) of the Indian Electricity Rules, 1956 as
amended from time to time and other pertinent rules.

13.3 The power shall be used for bonafide Departmental work only.

14. Temporary Diversions (Works on Highways)

14.1 The contractor shall at all times carryout work on the highway in a manner creating
least interference to the flow of traffic while consistent with the satisfactory execution
of the same. For all works involving improvements to the existing highway, the
contractor shall in accordance with the directions of the Engineer-in-charge provide
and maintain during the execution of the work a passage for traffic, either along a part
of the existing carriage way under improvement or along a temporary diversion
constructed close to the highway.

14.2 If in the opinion of the Engineer-in-Charge, it is not possible to pass the traffic on part
width of the carriage-way for any reason, a temporary diversion close to the highway
shall be constructed as directed. It shall be paved with the materials such as hard
morum, gravel and stone, metal to the specified thickness as directed by the Engineer-
in-Charge. In all cases, the alignment, gradients and surface type of the diversion
including its junctions, shall be approved by the Engineer-in-charge before the
highway is closed to traffic.

14.3 The contractor shall take all necessary measures for the safety of traffic during
construction and provide erect and maintain such barricades, including signs,
markings, flags lights and information and protection of traffic approaching or
passing through the section of the highway under improvement. Before taking up any
construction, an agreed phased programme for the diversion of traffic on the highway
shall be drawn up in consultation with the Engineer-in-charge.

14.4 The barricades erected on either side of the carriage way portion of the carriage way
closed to traffic, shall be of strong design to resist violation and painted with
alternative black and white stripe. Red lanterens or warnings lights of similar type
shall be mounted on the barricades at night and kept lit throughout from sunset to
sunrise.

15. Ramps:
Ramps required during execution may be formed wherever necessary and same are to
be removed after completion of the work. No separate payment will be made for this
purpose.

16. Monsoon Damages:

Damages due to rain or flood either in cutting or in banks shall have to be made good
by the contractor till the work is handed over to the Department. The responsibility
of de-silting and making good the damages due to rain or flood rests with the
contractor. No extra payment is payable for such operations and the contractor shall
therefore, have to take all necessary precautions to protect the work done during the
construction period.

5
17. The works to be Completed by the Intended Completion Date:
17.1 The Contractor may commence execution of the Works on the Start Date and shall
carry out the Works in accordance with the programme submitted by the Contractor,
as updated with the approval of the Engineer-in-Charge, and complete the work by
the Intended Completion Date.
18. Safety:
18.1 The Contractor shall be responsible for the safety of all activities on the Site.

19. Discoveries:
19.1 Anything of historical or other interest or of significant value unexpectedly
discovered on the Site is the property of the Government. The Contractor is to notify
the Engineer-in-charge of such discoveries and carry out the Engineer-in-Charge’s
instructions for dealing with them.

20. Possession of the Site.

20.1 The Department shall give possession of the site to the Contractor. If possession of a
part site is given, the Department will ensure that the part site so handed over is
amenable to carryout the work at site by the Contractor.

21. Access to the Site:

21.1 The Contractor shall provide the Engineer-in-Charge and any person authorised by
the Engineer-in-Charge, access to the site and to any place where work in connection
with the Contract is being carried out or is intended to be carried out.

22. Instructions:
22.1 The Contractor shall carry out all instructions of the Engineer-in-charge and comply
with all the applicable local laws where the Site is located.

23. Settlement of disputes:

23.1 If any dispute of difference of any kind whatsoever arises between the department
and the Contractor in connection with, or arising out of the Contract, whether during
the progress of the works or after their completion and whether before or after the
termination, abandonment or breach of the Contract, it shall in the first place, be
referred to and settled by the Engineer-in-charge who shall, within a period of thirty
days after being requested by the Contractor to do so, give written notice of his
decision to the Contractor. Upon receipt of the written notice of the decision of the
Engineer-in-Charge the Contractor shall promptly proceed without delay to comply
with such notice of decision.

23.2 If the Engineer-in-Charge fails to give notice of his decision in writing within a
period of thirty days after being requested or if the Contractor is dissatisfied with the
notice of the decision of the Engineer-in-Charge, the Contractor may within thirty
days after receiving the notice of decision appeal to the Department who shall offer
an opportunity to the contractor to be heard and to offer evidence in support of his
appeal, the Department shall give notice of his decision within a period of thirty days
after the Contractor has given the said evidence in support of his appeal, subject to
arbitration, as hereinafter provided. Such decision of the Department in respect of
every matter so referred shall be final and binding upon the Contractor and shall
forthwith be given effect to by the Contractor, who shall proceed with the execution
of the works with all due diligence whether he requires arbitration as hereinafter
provided, or not. If the Department has given written notice of his decision to the
Contractor and no claim to arbitration, has been communicated to him by the

6
Contractor within a period of thirty days from receipt of such notice the said decision
shall remain final and binding upon the Contractor. If the Department fail to give
notice of his decision, as aforesaid within a period of thirty days after being requested
as aforesaid, or if the Contractor be dissatisfied with any such decision, then and in
any such case the contractor within thirty days after the expiration of the first named
period of thirty days as the case may be, require that the matter or matters in dispute
be referred to arbitration as detailed below:-

SETTLEMENT OF CLAIMS:
Settlement of claims for Rs.50,000/- and below by Arbitration.
All disputes or difference arising of or relating to the Contract shall be referred to the
adjudication as follows:

a) Claims upto a value of Rupees 10,000/-.

- Superintending Engineer, [of another circle in the same department as
appointed by the competent authority].

b) Claims above Rs.10,000/- and upto Rupees 50,000/-.

- Another Chief Engineer, [of the same departments as appointed by the
competent authority]

The arbitration shall be conducted in accordance with the provisions of Indian

Arbitration and Conciliation Act 1996 or any statutory modification thereof.

The arbitrator shall state his reasons in passing the award.

Claims above Rs.50,000/-.

All claims of above Rs.50,000/- are to be settled by a Civil Court of competent
jurisdiction by way of Civil suit and not by arbitration.

A reference for adjudication under this clauses shall be made by the contractor within
six months from the date of intimating the contractor of the preparation of final bill or
his having accepted payment which ever is earlier.

7
 B. TIME FOR COMPLETION

24. Program:
24.1 The total period of completion is (As specified in the NIT () months from the date of
entering with agreement to proceed including rainy season. Keeping in view, the
schedule for handing over of site given in condition 11.2 below, the work should be
programmed such as to achieve the mile-stones as in “Rate of progress statement”
enclosed.

24.2 The attention of the tenderer is directed to the contract requirement at the time of
beginning of the work, the rate of progress and the dates for the whole work and its
several parts as per milestones. The following rate of progress and proportionate
value of work done from time to time as will be indicated by the Executive
Engineer’s Certificate for the value of work done and completion of mile-stones will
be required. Date of commencement of their programme will be the date for
concluding agreement.

24.3 After signing the agreement, the contractor shall forthwith begin the work, shall
regularly and continuously proceed with them.

24.4 Rate of progress :

i) Work programme of achieving the milestones (Statement).
ii) Site. Schedule of programme of handing over Site to the Contractor.
(Statement).

24.5 The contractor shall commence the works on site within the period specified under
condition 11.1 to 11.3 above after the receipt by him of a written order to this effect
from the Superintending Engineer and shall proceed with the same with due
expedition and without delay, except as may be expressly sanctioned or ordered by
the Superintending Engineer, or be wholly beyond the contractor’s control.

24.6 Save in so far as the contractor may prescribe, the extent of portions of the site of
which the contractor is to be given possession from time to time and the order in
which such portions shall be made available to him and, Subject to any requirement
in the contract as to the order in which the works shall be executed, the Municipal
Commissioner will, with the Executive Engineer’s written order to commence the
works, give to the contractor possession of so much of the site as may be required to
enable the contractor to commence proceed with the execution of the works in
accordance with the programme if any, and otherwise in accordance with such
reasonable proposals of the contractor as he shall by written notice to the Municipal
Commissioner, make and will from time to time as the works proceed, give to the
contractor possession of such further portions of the site as may be required to enable
the contractor to proceed with the execution of the works with due dispatch in
accordance with the said programme or proposals as the case maybe ; if the
contractor suffers delay or incurs cost from failure on the part of the Municipal
Commissioner to give possession in accordance with the terms of this clause, the
Municipal Commissioner shall grant an extension of time for the completion of
works.

24.7 The contractor shall bear all costs and charges for special or temporary way leases
required by him in connection with access to the site. The contractor shall also
provide at his own cost any additional accommodation outside the site required by
him for the purposes of the work.

8
24.8 Subject to any requirement in the contract as to completion of any section of the
works before completion of the whole of the works shall be completed in accordance
with provisions of clauses in the Schedule within the time stated in the contract
calculated from the last day of the period named in the statement to the tender as that
within which the works are to be commenced or such extended time as may be
allowed.

24.9 Delays and extension of time:

No claim for compensation on account of delays or hindrances to the work from any
cause whatever shall lie, except as hereafter defined. Reasonable extension of time
will be allowed by the Municipal Commissioner or by the office competent to
sanction the extension, for unavoidable delays, such as may result from causes, which
in the opinion of the Municipal Commissioner, are undoubtedly beyond the control of
the contractor. The Municipal Commissioner shall assess the period of delay or
hindrance caused by any written instructions issued by him, at twenty five per cent in
excess or the actual working period so lost.

In the event of the Municipal Commissioner failing to issue necessary instructions

and thereby causing delay and hindrance to the contractor, the latter shall have the
right to claim an assessment of such delay by the RDMA / SE whose decision will be
final and binding. The contractor shall lodge in writing with the Municipal
Commissioner a statement of claim for any delay or hindrance referred to above,
within fourteen days from its commencement, otherwise no extension of time will be
allowed.

Whenever authorised alterations or additions made during the progress of the work
are of such a nature in the opinion of the Municipal Commissioner as to justify an
extension of time in consequence thereof, such extension will be granted in writing
by the Municipal Commissioner or other competent authority when ordering such
alterations or additions.

25. Construction Programme:

25.1 The Contractor shall furnish within one month of the order of the work a programme
showing the sequence in which he proposed to carry out the work, monthly progress
expected to be achieved, also indicating date of procurement of materials plant and
machinery. The schedule should be such that it is practicable to achieve completion
of the whole work within the time limit fixed and in keeping with the Mile stone
programme specified and shall obtain the approval of the Engineer-in-charge.
Further rate of the progress as in the program shall be kept upto date. In case it is
subsequently found necessary to alter this program, the contractor shall submit
sufficiently in advance the revised program incorporating necessary modifications
and get the same approved by the Engineer-in-charge. No revised program shall be
operative with out approval of Engineer-in-charge.

25.2 The Municipal Commissioner shall have all times the right, without any way
violating this contract, or forming grounds for any claim, to alter the order of progress
of the works or any part thereof and the contractor shall after receiving such
directions proceed in the order directed. The contractor shall also report the progress
to the Municipal Commissioner within 7 days of the Executive Engineer’s direction
to alter the order of progress of works.

25.3 The Contractor shall give written notice to the Engineer-in-Charge whenever
planning or progress of the works is likely to be delayed or disrupted unless any
further drawings or order including a direction, instruction or approval is issued by

9
the Engineer-in-Charge within a reasonable time. The notice shall include details of
the drawing or order required and of why and by when it is required and of any delay
or disruption likely to be suffered if it is late.

10