a. Unconditional acceptance of the Letter of Award and signing of contract agreement by

1. Advance payment (Optional):i) For Supply part, initial interest bearing adjustable Mobllization Advance of 15%

of ex-works cost excluding taxes and duties shall be released for all the materialsin two tranches of 7.5% each, First installment of 7.5% of ex-works pricecomponent shall be released on presentation of the following:

A. Supply, Erection, Testing and Commissioning of works under DDUGJY:

d. Next bill of the work shall invariably be a measured blll in which, various quantities ofunmeasured bill shall be verified and measured jointly by Project Manager andcontractor.

c. 50% of such eligible amount shall be released to the contractor immediately within aweek. The amount of un-measured bill should not be more than average of previoustwo measured bill.

b. Quantum and completion of works is certified by Project Manager jointly withcontractor and eligible amount of such works are computed as per approved paymentterms.

a. Submission of certificate on measurement book by Project Manager that materialsunder consideration have been erected, tested and commissioned as per technicalspecification, scope of work & approved drawings.

VI. Unmeasured ad-hoc payment: In exigencies, to ensure liquidity of funds with the contractor,un-measured ad-hoc bill shall be accepted. In this method, following methodology shall beadopted:

V. Upon award of the contract, contractor shall be free to take on the work at all the fronts or atspecified fronts as advised by Project Manager.

IV. The interest rate on advance payment shall be SBI's Base rate on the date ofdisbursement of advance payment/REC guidelines. The interest accrued on interestbearing advance shall be adjusted first before releasing any payment.

III. All progressive payments shall be released on validity of Contract Performance Security andsecurities against Initial Advance.

II. The paymentto the Contractorunderthe contractwill be madeby the Employerin linewithClause8, SectionGee, Vol.-I and as per the guidelinesand conditions specifiedhereunder.

"Billable Items" are worked out and attached to Price Schedule. Items otherwise required forcompletionof work but not listed in the PriceScheduleshall also be in the scopeof thecontractor. The costs of such "Non- billable Items" may be included in the quoted price of"Billable Items" by the bidder in the Price Schedule. The payment shall be made on billableitem wise basisonly as indicated in PriceSchedule.

Appendix-I: TERMS AND PROCEDURES OF PAYMENT

I

The bidder must utilize first advance installment of 5% of total erection pricebefore requesting for second advance installment. Second installment of 5% shallbe released on presentation of contractor's invoice a~ satisfactory utilizationcertificate of first advance installment. 0s:.ff~~"-sr».§'<Q~ f§'

4 ~~00~~~'li.:S <3~0<i:;~...'o ~~. '!-,(j r:'Yq,~.~~ ~.(J~.$~~

q'ti

d. Submission of an unconditional & irrevocable BankGuarantee in favor of Employer forheQ~Igia;R~Ic~fi1i(~-72flZ¢)of the total Contract price towards Contract PerformanceGuarantee (CPG) in accordance with Clause 34.1 of Section-ITB, Vol-I and as per

. proforma attached with Section-VI of Volume-I (Conditions of Contract). The saidBank Guarantee shall be initially valid up to 90 (ninety) days after the expiry ofwarranty period and shall be extended from time to time till ninety (90) days beyondsuccessfulcompletion of warranty period, as may be required under the Contract.

c. Submission and acceptance of unconditional & irrevocable part Bank Guarantees (asmany number as proposed recovery installments and should be of 110% amount ofeach installment) in favor of employer with total amounting to 110% of total advanceamount as per proforma attached with Section-VI of vol.-I (Conditions of Contract).The said BankGuaranteesshall be initially valid up to end of ninety (90) days after thescheduled month of erection of materials and shall be extended from time to time tillninety (90) days beyond revised scheduled month of erection of materials, as may berequired under the Contract.

b. Establishment of Contractor's site offices and certification by Engineer that satisfactorymobilization for erection exists.

a. Submissionof detailed invoice for advance payment.

ii . For Services Part, initial interest bearing adjustable Mobilization Advance of 10% of erection priceexcluding taxes and duties shall be released for all the works in two tranches of 5% each. Firstinstallment of 5% of total erection price shall be releasedon presentation of the following:

The bidder must utilize first advance installment of 7.5% of ex-works supplycomponent before requesting for second advance installment. Second installment of7.5% shall be released on presentation of contractor's invoice and satisfactoryutilization certificate of first advance installment.

b. Detailed PERTNetwork/Bar chart and its approval by the Employer.

a. An unconditional & irrevocable Bank Guarantee for ten percent (10%) of the totalContract price towards Contract Performance Guarantee (CPG) in accordance withthe provisions of Clause 34.1, Section ITB and as per proforma attached withSection-VI of Vol-I (Conditions of Contract). The said bank guarantee shall beinitially valid up to ninety (90) days after expiry of the Warranty Period and shall beextended from time to time till ninety (90) days beyond successful completion ofwarranty period, as may be required under the Contract.

c .S acceptance of unconditional & irrevocable part Bank Guarantees (asro sed recovery installments and should be of 110% amount of eachr of employer with total amounting to 110% of total advance amount

as per pro a attached with Section-VI of vol.-I (Conditions of Contract). The saidBank Guara ees shall be initially valid up to end of ninety (90) days after the scheduledmonth of Iy of materials and shall be extended from time to time till ninety (90) daysbeyond revised scheduled month of supply of materials, as may be required under theContract.

m. Submissionof the PhysicalWork Done Statement by the Project ManagementAgency and AGM(REMonitoring),APDCLof concerned District that materialsunder consideration have been erected, tested and commissioned as pertechnical specification, scope of work & approved drawings (applicable for 3rd

/ 5th supply bill).

I. submission of the certificate by the Project Management Agency and AGM(REMonitoring), APDCL of concerned District that the item(s) have beenreceived,

k. Manufacturer's copy of challan. The original copy of delivery challan isto be marked by the name of the Package by AGM(REMonitoring),APDCL of concerned District.

j. Material Inspection cum ClearanceCertificate (MICC) / Dispatch Instructions(DI) for dispatch of materials from the manufacturer's works. MDCC/DI shallbe issued by authorized officer of Employer

i. Manufacturer's/Contractor's guarantee certificate of Quality.

h. Certified copy of Insurance policy/Insurance Certificate.

g. Copy of Certificate to the effect of payments of State/ Central taxes, duties,levies etc have been made against supply of materials through sub-vendorsunder the contract.

f. Invoice certifying payments of ED, Taxes for the direct transaction betweenEmployer and Contractor,

e. Contractor's detailed invoice & packing list, delivery challans identifyingcontents of each shipment.

d. Evidenceof dispatch (R/R or receipted L/R)

c. Detailed Project Execution Plan/PERT chart and its approval by theEmployer.

b. An unconditional & irrevocable Bank Guarantee for required percent (----%)of the total Contract price towards Contract PerformanceGuarantee (CPG) inaccordance with the provisions of Clause 34.1, Section ITB and as perproforma attached with Section-VI of Vol.-I (Conditions of Contract). The saidbank guarantee shall be initially valid up to ninety (90) days after expiry ofthe Warranty Period and shall be extended from time to time till ninety (90)days beyond successful completion of warranty period, as may be requiredunder the Contract. '

a. Unconditional acceptance of the Letter of Award and signing of contractagreement by the Contractor.

2.1(i) First Instalment (60%) : Sixty percent (60%) payments against various items of priceschedule-1 including applicable Excise Duty, Taxes etc. shall be paid on receipt and acceptance ofMaterialson submission of documents indicated herein under:

2.0. Progressive payments (Supply):

e. Contractor's detailed invoice & packing list, delivery challans identifying contents ofeach shipment.

b. An unconditional & irrevocable Bank Guarantee for required percent (----%) of thetotal Contract price towards Contract Performance Guarantee (CPG) in accordancewith the provisions of Clause 34.1, Section ITB and as per proforma attached withSection-VI of Vol-I (Conditions of Contract). The said bank guarantee shall be initiallyvalid up to ninety (90) days after expiry of the Warranty Period and shall be extendedfrom time to time till ninety (90) days beyond successful completion of warrantyperiod, as may be required under the Contract.

c. Detailed Project Execution Plan/PERT chart and its approval by theEmployer

d. Evidenceof dispatch (R/R or receipted L/R).

a. Unconditional acceptanceof the Letter of Award and signing of contract agreement bythe Contractor.

2.2. Second Installment (30%): Thirty percent (30%) payments against various items of priceschedule-1 including applicable taxes etc. shall be paid on following conditions:

Summary: first 2(two) nos. of progressive supply bills shall be released without linking to erection .buttne s" progressive supply bill shall be released only if 80% of earlier 2(two) bills are successfullyerected and tested and a certificate is issued and Physical Work Done Statement (PWDS) is signed bythe CEOof the Circle and AGM( REmonitoring) of the District. Thisprocess will continue upto gh supplybill.

Next supply bill (5th bill) shall be paid for 60% of bill amount. After submission of 5th supply bill, thecontractor shall have to complete erection and testing of all the materials of all the supplied itemsagainst the previous bills. 90% payment against this erection bill shall be made (erection bill no. 3).

After submission of above 5 nos. of bill against supply and erection, the contractor shall have tocomplete erection, testing of at least 80% amount of previous 2(two) nos. of supply bills andaccordingly he will be entitled to get 90% of the erection bill for said materials (erection bill no.2) .

After submission of 2 nos. of progressive bill against supply, the contractor shall have to completeerection, testing of at least 80% amount of these 2(two) nos. of supply bills and accordingly he will beentitled to get 90% of the erection bill (erection bill no.1).

Another 2(two) supply bills ( 3,dand 4th bill) shall be paid thereafter for which 60% of payment shall bemade against total supplied items.

A contractor can submit 2(two) progressive bills of supply (1stand 2ndbill) for which erection works shallnot be linked.

A contractor can submit progressive bills for supply upto 6 ( six) numbers

Stages of submission of supply & erection bill in 60% payment mode.

60% of proportionate Mo' ation Advance against Supply shall be adjusted while making payments ofthis instalment. In case of delay of project, the entire mobilization advance should get recovered fromthe contractor as per supply and erection contracts' works completion schedule respectively.

eel< certification on Physical Work Done Statement by the Projectent Agency and AGM(REMonitoring),APDCLof concerned District.

n.

a. The balance ten percent (10%) of payment against Supply including Excise Duty,Taxes etc shall be payable on successful supply, erection, testing and commissioningof the works in the project and issuance of Handing ove& Taking over Certificate by

2.3. Third and Final Instalment (10%):

b. In case of delay of project, the entire mobilization advance shall get recovered at thisstage.

a. Balance initial mobilization advance shall be adjusted. Also, up-to-date accruedinterest shall also be recovered.

While releasing 2nd instalment of 30% supply payment following adjustment shall be made:

This 6th bill for 30% balance payment (out of 40%) against supply shall be released on satisfactorycompletion of erection, testing and commissioning of all materials of previous bills.

A contractor can submit l(one) supply bill (6th number of bill) for this 30% balance payment againstprevious supply bills on completion of erection, testing and commissioning of all materials of previoussupply bill (5 number of supply bill).

Stages of submission of supply & erection bill in 30% payment mode.

n. Test check certification on PhysicalWork Done Statement by the Project ManagementAgency and AGM(REMonitoring),APDCLof concerned District.

m. Submission of the PhysicalWork Done Statement by the Project Management Agencyand AGM(RE Monitoring),APDCL of concerned District that materials underconsideration have been erected, tested and commissioned as per technicalspecflcatlon, scopeof work & approved drawings.

I. submission of the certificate by the Project Management Agency and AGM(REMonitoring), APDCLof concerned District that the item(s) have been received,

k. Manufacturer's copy of challan. The original copy of delivery challan is to bemarked by the name of the Package by AGM(RE Monitoring),APDCL ofconcerned District.

j. Material Inspection cum ClearanceCertificate (MICC) / Dispatch Instructions (Dr) fordispatch of materials from the manufacturer's works. MDCC/Dr shall be issued byauthorized officer of Employer

i. Manufacturer's/Contractor's guarantee certificate of Quality.

g. Copy of Certificate to the effect of payments of State/ Central taxes, duties, levies etchave been made against supply of materials through sub-vendors under the contract.

h. Certified copy of Insurance policy/Insurance Certificate.

f. Invoice .. 'ng payments of ED,Taxes for the direct transaction between Employerand Contractor,

Certified copyof Insurance policy/Insurance Certificate.d.

c. An unconditional & irrevocable Bank Guarantee for required percent (----%) of thetotal Contract price towards Contract Performance Guarantee (CPG) in accordancewith the provisions of Clause 34.1, Section ITB and as per proforma attached withSection-VI of Vol-I (Conditions of Contract). The said bank guarantee shall be initiallyvalid up to ninety (90) days after expiry of the Warranty Period and shall be extendedfrom time to time till ninety (90) days beyond successful completion of warrantyperiod, as may be required under the Contract.

b. Detailed Project Execution Plan/PERTchart and its approval by the Employer.

a. Unconditional acceptanceof the Letter of Award and signing of contract agreement bythe Contractor.

3.1. First Installment (90%) : Ninety percent (90%) payments against ErectionPart including Excise Duty, Taxes etc shall be paid on erection, testing andcommissioning of works and on submission of documents of all villagesindicated herein under:

3. Progressive payments ( Erection & Transportation and Insurance):

e. In case, for any reason not attributable to the contractor, the commissioning andcharging of equipment/materials is delayed beyond 120 days of successful completionof final checking and testing of works, the balance 10% payment shall be releasedagainst an unconditional & irrevocable bank guarantee of equivalent amount initiallyvalid till 6 months from the readiness of works for commissioning and charging atrated voltage, to be extended till 90 days beyond actual commissioning & taking over.

d. On certification by Project Manager for validity of an unconditional & irrevocable BankGuarantee for required percent (----%) of the total Contract price towards ContractPerformance Guarantee (CPG) in accordance with the provisions of Clause 34.1,Section ITB and as per proforma attached with Section-VI of vol.-I (Conditions ofContract). The said bank guarantee shall be initially valid up to ninety (90) days afterexpiry of the Warranty Period and shall be extended from time to time till ninety (90)days beyond successful completion of warranty period, as may be required under theContract.

c. On submission of the certificate by the Project Management Agency and AGM(REMonitoring of concerned District that the item(s) have been received, erected, testedand commissioned.

b. 'Commissi ning' for the purpose of payments shall mean satisfactory completion of allsupplies, erection, commissioning checks and successful completion of all site testsand continuous energization of the equipment/ materials at rated voltage as per theContract and to the satisfaction/approval of the Employer.

rv-;o,.,...::r I"d engineer(SDE of Electrical Subdivision), Completion certificate,e Statement issued by the AGM(REmonitoring) of the District and

e Electrical Circle, Certificate from Gaon Buhra/Gaon Panchayat, BPLservice connection list from concerned ElectricalSubdivision.

On certification of Project Manager for compliance of observations noted by the PMA,RECand NQM. ~«).

fQ~ 1><:::-"-~ 'l>¢b 1>~ ~

~ 1>'" '<)~ ~1>.......... ':!..~ 0 ~'Ii

~'Ii.,$-00"~ !,::-fQ~~ ~,1 r~fQ ,A'Ii

!o-.'" CJ" 1>v·~0_0: _<Q

g.

On certification of Project Management Agency and AGM(REMonitoring of concernedDistrict that assets under the project are created and are taken over by Employer.

f.

On certification of Project ManagementAgency and AGM(REMonitoring of concernedDistrict) for reconciliation of materials and payments.

e.

On certification by Project Manager for validity of an unconditional & irrevocable BankGuarantee for required percent (----%) of the total Contract price towards ContractPerformance Guarantee (CPG) in accordance with the provisions of Clause 34.1,Section ITB and as per proforma attached with Section-VI of Vol.-I (Conditions ofContract). The said bank guarantee shall be initially valid up to ninety (90) days afterexpiry of the Warranty Period and shall be extended from time to time till ninety (90)days beyond successful completion of warranty period, as may be required under theContract.

d.

On submission of the certificate by the Project Management Agency and AGM(REMonitoring of concerned District) that the equipment/materials have been erected,tested and commissioned.

c.

b. 'Commissioning' for the purpose of payments shall mean satisfactory completion of allsupplies, erection, commissioning checks and successful completion of all site testsand continuous energization of the equipment/ materials at rated voltage as per theContract and to the satisfaction/approval of the Employer.

a. The balance ten percent (10%) of payment against Erection Part including ExciseDuty, Taxes etc as shall be released on successful commissioning of the works in theproject and issuanceof Taking over Certificate of the project.

3.2. Second and Final Installment (10%):

a. 100% Mobilization Advance against Erection shall be fully adjusted whilemaking payments of first installment. Also, up-to-date accrued interest shallalso be recovered.

While releasing 1st instalment of 90% erection payment following adjustment shall bemade:

b. In case of delay of project, the entire mobilization advance shall getrecovered from the contractor as per supply and erection contracts' workscompletion schedule respectively.

f. Submission of PhysicalWork Done Statement by Project Management Agency andAGM(RE Monitoring of concerned District that materials under consideration havebeen erected, tested and commissionedas per technical specification, scopeof work &approved drawings.

g. Test check certification on PhysicalWork Done Statement by the Project ManagementAgency and AGM(REMonitoring),APDCLof concerned District.

'nation statement consisting of the materials utilized for erection,missioning vis-a-vis erection activity of the lot of villages.

e. Material ntesting &

h. However, - CC5e, for any reason solely attributable to the Owner/Employer, thecommissi 0 equipment/materials is delayed beyond 120 days of successfulcompletio fi al checking and testing of line for the purpose of commissioning asdefined in documents, the balance 10% payment shall be released against anunconditional & irrevocable bank guarantee of equivalent amount initially valid till 6months fro e readiness of transmission lines/ distribution transformer/ serviceconnections for commissioning and charging at rated voltage, to be extended till 90days beyond actual commissioning& taking over.

I