gcc-pcd-223

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GENERAL CONDITIONS OF CONTRACT (GCC)

1.0 Definitions

1.0 In this Contract, the following terms shall be interpreted as indicated:

(a) "The Contract" means the Contract Agreement entered between theOwner and the Contractor, as recorded in the Contract Form signedby the parties, including all attachments and appendices thereto and alldocuments incorporated by reference therein.

(b) "The Contract Price" means the price payable to the Contractor underthe Contract for the full and proper performance of its contractualobligations.

(c) "The Services" means all those services necessary for diving services,such as handling, welding, grinding, balancing, machining,transportation, testing and any other incidental services etc. and othersuch obligations of the Contractor covered under the Contract.

(d) "The Owner" means the Satluj Jal Vidyut Nigam Limited.

(e) "The Contractor" means the individual or firm providing the divingservices under this Contract.

2.0 Contract Performance Securi ty

2.1 Within ten (10) days of receipt of the notification of Contract award, thesuccessful Bidder shall furnish to the Owner, an unconditional performancesecurity for ten percent (10%)of the Contract Price with a validity upto thirty(30) daysafter guarantee period as contract security.

In case CPG is not submitted in time and payment become due, the CPGamount will be deducted from the first due payment and kept under hold till

CPG is furnished or guarantee period is over.

2.2 The proceeds of the performance security shall be payable to the Owner ascompensation for any loss resulting from the Contractor's failure to completeits obligations under the Contract.

2.3 The performance security shall be denominated in the currency of theContract and shall be in the form of Bank Guarantee issued by a reputedBank, acceptable to the Owner or in the form of FDR etc.

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2.4 The performance security will be discharged by the Owner and returned to the

Contractor not later than sixty (60) days after expiry of guarantee period of allthe equipment supplied under the contract.

3.0 Force Majeure

3.1 The firm shall not be liable for loss or damage to SJVN resulting from anydelays or failure to complete the work within time specified for all or any partof the equipment due to non-availability of power supply, the act of God, roadblock, war declared or undeclared, acts of public enemy, riots, civilcommotion, invasion, insurrection, sabotage, acts of restraint of Government,federal, state or municipal action or regulation, fire, flood, hurricanes,accidents, epidemic, quarantine, restrictions, or any failure on the part of theOwner or his representative to approve or comments on drawings or other

causes, contingencies or circumstances not subject to their control, whetherof a similar or dissimilar nature which prevents the Contractor fromcompletion of work . Any such cause or delays even though not existing onthe date of the contract on or the date of start of manufacturing shall extendthe time of performance automatically by length of delays occasioned thereby,including delay reasonably incidental to the resumption of normal reclamationwork even though such case may occur after performance of firms obligationhas been delayed for the other cause.

3.2 If a Force Majeure situation arises, the Contractor shall promptly notify theOwner in writing of such condition and the cause thereof. Unless otherwisedirected by the Owner in writing, the Contractor shall continue to perform itsobligations under the Contract as far as is reasonably practical, and shall seekall reasonable alternative means for performance not prevented by the ForceMajeure event.

4.0 Correspondence

The programme& progress report shall be addressed by the firm as following

:-

(i) HOP (Project), Nathpa Jhakri Hydroelectric Power Station, Jhakri(H.P.) 1 Set.

(ii) Sr. Manager (Civil),NJHPS, SJVNL, Nathpa, (H.P.) 1 Set.(iii) Addl. General Manager, Procurement and Contract Deptt., SJVNL,

Jhakri.

5.0 Payment Terms


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i. The payment will be made on submission of bill by the contractor subjectto verification by the concerned EIC or his authorized representative. Thepayment for working period during each visit for minimum 5 visits shall be

made on pro rata basis along with mobilization charges. Payment towardsextra one visit (if required) and mobilization charges shall be made at thesame rate, terms and conditions. This however, shall not be linked withliability of the contractor to pay wages to his workers as provisions ofwages act.

ii. The payment shall be made visit basis on the total value of contract alongwith mobilization charges on submission of following documents:

a) Master payroll of labour duly verified by the concerned officer.b) Bill duly verified by the concerned EIC.

c) Proof against mobilization charges.

6.0 Termination of Contract on Contractor's Default

6.1 The Owner, without prejudice to any other remedy for breach of Contract, bywritten notice of default sent to the Contractor, may terminate this Contract inwhole or in part:

(a) If the Contractor fails to complete any part of all the work or all of theGoods within the period(s) specified in the Contract, or within any

extension thereof granted by the Owner.

(b) If the Contractor fails to perform any other obligation(s) under theContract.

(c) If the Contractor, in the judgment of the Owner has engaged in corruptor fraudulent practices in competing for or in executing the Contract.

For the purpose of this Clause:

"corrupt practice" means the offering, giving, receiving or soliciting ofany thing of value to influence the action of a public official in theprocurement process or in contract execution.

"fraudulent practice" means a misrepresentation of facts in order toinfluence a procurement process or the execution of a contract to thedetriment of the Owner and includes collusive practice among Bidders(prior to or after Bid submission) designed to establish bid prices atartificial non-competitive levels and to deprive the Owner of thebenefits of free and open competition".

6.2 In the event the Owner terminates the Contract in whole or in part, the Ownermay procure / get repaired, upon such terms and in such manner as it deems


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appropriate, Goods or Services similar to those undelivered / un-repaired, andthe Contractor shall be liable to the Owner for any excess costs for suchsimilar Goods or Services. However, the Contractor shall continueperformance of the Contract to the extent not terminated.

7.0 Termination for Insolvency

The Owner may at any time terminate the Contract by giving written notice tothe Contractor if the Contractor becomes bankrupt or otherwise insolvent. Inthis event, termination will be without compensation to the Contractor,provided that such termination will not prejudice or affect any right of action orremedy which has accrued or will accrue thereafter to the Owner.

8.0 Termination of Contract on Owner's Initiative

8.1 The Owner reserves the right to terminate the Contract either in part or in fulldue to reasons other than those mentioned under clause entitled "Contractor'sDefault" and "Outbreak of War". The Owner shall in such an event give thirty(30) days notice in writing to the Contractor of his decision to do so.

8.2 The Contractor upon receipt of such notice shall discontinue the work on thedate and to the extent specified in the notice, make all reasonable efforts toobtain cancellation of all orders and contracts to the Owner, stop all furthersub-contracting or purchasing activity related to the work terminated, andassist the Owner in storage, maintenance, protection, and disposition of theworks acquired under the contract by the Owner.

8.3 In the event of such a termination, the Contractor shall be paid equitable andreasonable compensation, as dictated by the circumstances prevalent at thetime of termination.

9.0 SETTLEMENT OF DISPUTES

9.1 Any dispute(s) or difference(s) arising out of or in connection with the

Contract shall, to the extent possible in the first instance be resolved amicablybetween the Contractor and the Owners Engineer.

9.2 If any dispute or difference of any kind whatsoever shall arise between theOwner and the Contractor, arising out of the Contract for the performance ofthe Works whether during the progress of the Works or after its completion orwhether before or after the termination, abandonment or breach of theContract, it shall, in the first place, be referred to and settled by the Engineer,who within a period of ten (10 ) days after being requested by either party todo so, shall give written notice of his decision to the Owner and theContractor.


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9.3 Save as hereinafter provided, such decision in respect of every matter soreferred shall be final and binding upon the parties until the completion of theentire work under the Contract and shall forthwith be given effect to by theContractor who shall comply with all such decisions, with all due diligence,whether he or the Owner requires arbitration as hereinafter provided or not.

9.4 If after the Engineer has given written notice of his decision to the parties, noclaim to arbitration has been communicated to him by either party within ten(10) days from the receipt of such notice, the said decision shall become finaland binding on the parties.

9.5 In the event of the Engineer failing to notify his decision within ten (10) daysafter being requested as aforesaid or in the event of either the Owner or theContractor being dissatisfied with any such decision, or within ten (10) daysafter the expiry of the first mentioned period of ten (10) days, as the case maybe, either party may require, by written notice to the other party, that the

matters in dispute be referred to arbitration as hereinafter provided.

10.0 ARBITRATION

10.1 All disputes or differences in respect of which the decision, if any, of theEngineer has not become final or binding as aforesaid shall be settled byarbitration in the manner hereinafter provided.

10.2 In the event of the Contractor, that is to say a citizen and/or a permanentresident of India, a firm or a company duly registered or incorporated in India,the arbitration shall be conducted by three arbitrators, one each to benominated by the contractor and the Owner and the third to be named by thePresident of Institution of Engineers, India. If either of the parties fails toappoint its arbitrator within thirty (30) days after receipt of a notice from theother party invoking the arbitration clause, the President of the Institution ofEngineers, India shall have the power at the request of either of the parties, toappoint the arbitrators. A certified copy of the said President making such anappointment shall be furnished to both the parties.

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

Arbitration & Conciliation Act, 1996 or any statutory modification thereof.

10.4 Arbitration(s) shall give reasoned award.

10.5 The decision of the majority of the arbitrators shall be final and binding uponthe parties. The expenses of the arbitration shall be paid as may bedetermined by the arbitrators. The arbitrators may, from time to time with theconsent of all the parties enlarge the time for making the award. In the eventof any of the aforesaid arbitrators dying, neglecting, resigning of being unableto act for any reason, it will be lawful for the party concerned to nominateanother arbitrator in place of the outgoing arbitrator.


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10.6 The arbitrator shall have full powers to review and/or revise any decision,opinion, directions certification or valuation of the Engineer in consonancewith the contract.

11.0 Appl icable Law

The Contract shall be governed by and interpreted in accordance with thelaws in force in India. The courts of Shimla shall have exclusivejurisdic tion in al l matters arising under the Contract .

12.0 Notices

Any notice given by one party to the other pursuant to this Contract shall be sentto the other party in writing or by cable telex, or facsimile and confirmed in writingto the other party's address specified in NIT/NIQ.

A notice shall be effective when delivered or on the notice's effective date,whichever is later.

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