CONDITIONS OF CONTRACT

A. GENERAL
1. Definitions

Terms which are defined in the Contract data are not also defined in the Conditions of Contract but
keep their defined meanings. Capital initials are used to identify defined terms.

Bill of Quantities means the priced and completed Bill of Quantities forming part of
the Bid.
The Completion Date is the date of completion of the Works as certified by the
Engineer in accordance with Sub clause 55.1.
The Contract is the contract between the Employer and the Contractor to execute,
complete and maintain the Works. It consists of the documents listed in Clause 2.3 below.
The Contract Data defines the documents and other information which comprise the
Contract.
The Contractor is a person or corporate body whose Bid to carry out the Works has
been accepted by the Employer .
The Contracto s Bid is the completed Bidding document submitted by the
Contractor to the Employer and includes Technical and Financial bids.
The Contract Price is the price state in the Letter of Acceptance and thereafter as
adjusted in accordance with the provisions of the Contract.
Days are calendar days; months are calendar months.
A Defect is any part of the Works not completed in accordance with the Contract.
The Defects Liability Period is the period named in the contract Data and calculated from the
Completion Date.
The Employer is Government of Jharkhand who will employ the contractor to
carry out the Works.
The Employ s representative will be the Executive Engineer concerned to be
notified by the Employer. The Employe s representative will act on behalf of Employer.
The Engineer is the person named in the Contract Data (or any other competent
person appointed and notified to the contractor to act in replacement of the Engineer) who is
responsible for supervising the Contractor, administering the Contract, certifying payments
due to the Contractor issuing and valuing Variations to the Contract, awarding extensions of
time. *

* For the project costing more than Rs. 10.00 crores Supervision consultant would act as
Enginee for the project if advised by the Engineer-in-Chief.

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 C. QUALITY CONTROL

33. Identifying Defects

33.1. The Engineer shall check the Contracto s work and notify the Contractor of any defects
that are found. Such checking shall not affect the Contracto s responsibilities. The
Engineer may instruct the Contractor to search for a Defect and to uncover and test any
work that the Engineer considers may have a Defect.

34 . Tests
34.1. If the Engineer instructs the Constructor to carry out a test not specified in the
Specification to check whether any work has a Defect and the test shows that it does, the
Contractor shall pay for the test and any samples.

35. Correction of Defects

35.1. The Engineer shall give notice to the contractor of any Defects before the end of the
Defects Liability Period, which begins at completion and is defined in the Contract Data.
The defects Liability Period shall be extended for as long as defects remain to be
corrected.

35.2. Every time notice of a defect is given, the Contractor shall correct the notified Defect
within the length of time specified by the Engineer s notice.

36. Uncorrected Defects

36.1. If the contractor has not corrected a Defect within the time specified in the Engine s
notice, the Engineer will assess the cost of having the Defect corrected, and the
Contractor will pay this amount.

D. COST CONTROL
37. Bill of Quantities
37.1. The Bill of Quantities shall contain items for the construction, installation, testing, and
commissioning work to be done by the Contractor.

37.2. The Bill of Quantities is used to calculate the Contract Price. The Contractor is paid for
the quantity of the work done at the rate in the Bill of Quantities for each item.

38. Changes in the Quantities

38.1. If the final quantity of the work done differs from the quantity in the Bill of Quantities
for the particular item by more than 25 percent provided the change exceeds 1% of initial
Contract Price, the Engineer shall adjust the rate to allow for the change, duly
considering.

(a) justification for rate adjustment as furnished by the contractor,

(b) economics resulting from increase in quantities by way of reduced plant,
equipment, and overhead costs,

38.2. The Engineer shall not adjust rates from changes in quantities if thereby the Initial
Contract Price is exceeded by more than 15 percent, except with the Prior approval
of the Employer.

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51. Advance Payment

51.1 The Employer shall make advance payment to the Contractor of the amounts stated in the
Contract Data by the date stated in the Contract Data, against provision by the
Contractor of an Unconditional Bank Guarantee in a form and by a bank acceptable to
the employer in amounts and currencies equal to the advance payment. The
guarantee shall remain effective until the advance payment has been repaid, but the
amount of guarantee shall be progressively reduced by the amounts repaid by the
Contractor. Interest will not be charged on the advance payment.

51.2 The Contractor is to use the advance payment only to pay for Equipment, Plant and
Mobilization expenses required specifically for execution of the works. The
Contractor shall demonstrates that advance payment has been used in this way by
supplying copies of invoices or other documents.

51.3. The advance payment shall be repaid by deducting proportionate amounts from payments
otherwise due to the Contractor, following the schedule of completed percentages of the
Works on a payment basis. No account shall be taken of the advance payment or its
repayment in assessing valuations of work done, Variations, price adjustments, or
Liquidated Damages.

51.4. Deleted

52. Securities

52.1. The Performance Security (including additional security for unbalanced bids) shall be
provided to the Employer no later than the date specified in the Letter of Acceptance and
shall be issued in an amount and form and by a bank or surety acceptable to the Employer,
and denominated in Indian Rupees. The Performance Security shall be valid until a date 28
days from the date of expiry of Defects Liability Period and the additional security for
unbalanced bids shall be valid until a date 28 days from the date of issue of the certificate
of completion.

53. Deleted

54. Cost of Repairs

54.1. Loss or damage to the Works or Materials to be incorporated in the Works between the
Start Date and the end of the defects Correction periods shall be remedied by the
Contractor at the Contracto s cost if the loss or damage arises from the Contracto s acts
or omissions.

E. FINISHING THE CONTRACT

55. Completion

55.1. The Contractor shall request the Engineer to issue a Certificate of Completion of the
Works and the Engineer will do so upon deciding that the Work is completed.

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 CONTRACT DATA
Clause Reference
With respect
to section 3
Items marked N do not apply in this contract.
1. The Employer is [Cl.1.1.]
Name :Chief Engineer (Communication)
R.C.D. Jharkhand, Ranchi

Address: -834004

Name of Employ s Representative

Executive Engineer,
R.C.D. Road Division, Seraikella-Kharsawan
2. The Engineer is

Name of Authorized Representative: Executive Engineer,

R.C.D. Road Division, Seraikella-Kharsawan

3. Deleted

4. The Defects Liability Period is 365 days from the date of completion. [Cl. 1. 1&35]

5. The Start Date shall be Same days for the date of issue of the Notice to [Cl.1.1.]
proceed with the work.

6. The Intended Completion Date for the whole of the Works is [Cl. 1.1,17&28]
months after start of work with the following milestones:

Milestone dates: [C1.2.2&49.1]

Physical works to be completed

from the start date. Period from the start date

Milestone 1 i.e.30% by Value 04 months

months.
Milestone 2 i.e.60% by Value 12 months

Milestone 3 i.e.100% by Value 18 months