visakhapatnam steel plant special conditions … · contractor shall properly account for total raw...

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Page 1 VISAKHAPATNAM STEEL PLANT SPECIAL CONDITIONS OF CONTRACT I N D E X 1.0 GENERAL 2.0 INTERPRETATION OF CONTRACT DOCUMENTS 3.0 SCOPE OF WORK/COVERAGE OF CONTRACT 4.0 MATERIALS BY EMPLOYER 5.0 MATERIALS BY CONTRACTOR 6.0 WATER 7.0 POWER 8.0 LAND 9.0 TIME FOR COMPLETION/DURATION OF CONTRACT 10.0 DRAWINGS 11.0 ADVANCES 12.0 TAXES AND DUTIES 13.0 DEDUCTION OF TAXES ETC., AT SOURCE 14.0 PRICE VARIATION 15.0 VARIATION IN QUANTITIES 16.0 BILLS 17.0 SECURITY REGULATIONS 18.0 SITE ORDER BOOK 19.0 LABOUR RETURNS 20.0 KEEPING WORKS FREE FROM WATER 21.0 ACCURACY OF WORKS 22.0 MODE OF MEASUREMENT 23.0 TRANSFER OF GUARANTEES 24.0 MAINTENANCE OF WORKS 25.0 SUBMISSION OF OTHER DOCUMENTS FOR ACCEPTANCE OF WORKS 26.0 CLEARING THE SITE 27.0 GOVERNMENT UNDERTAKINGS 28.0 UNAUTHORISED USE OR MISUSE OF EMPLOYERS/PUBLIC PROPERTY OR UTILITIES 29.0 UNIFORMITY OF RATES 30.0 RECOVERY RATE FOR CUT TREES 31.0 EXCEPTED MATTERS

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VISAKHAPATNAM STEEL PLANT SPECIAL CONDITIONS OF CONTRACT

I N D E X

1.0 GENERAL 2.0 INTERPRETATION OF CONTRACT DOCUMENTS 3.0 SCOPE OF WORK/COVERAGE OF CONTRACT 4.0 MATERIALS BY EMPLOYER 5.0 MATERIALS BY CONTRACTOR 6.0 WATER 7.0 POWER 8.0 LAND 9.0 TIME FOR COMPLETION/DURATION OF CONTRACT 10.0 DRAWINGS 11.0 ADVANCES 12.0 TAXES AND DUTIES 13.0 DEDUCTION OF TAXES ETC., AT SOURCE 14.0 PRICE VARIATION 15.0 VARIATION IN QUANTITIES 16.0 BILLS 17.0 SECURITY REGULATIONS 18.0 SITE ORDER BOOK 19.0 LABOUR RETURNS 20.0 KEEPING WORKS FREE FROM WATER 21.0 ACCURACY OF WORKS 22.0 MODE OF MEASUREMENT 23.0 TRANSFER OF GUARANTEES 24.0 MAINTENANCE OF WORKS 25.0 SUBMISSION OF OTHER DOCUMENTS FOR ACCEPTANCE OF WORKS 26.0 CLEARING THE SITE 27.0 GOVERNMENT UNDERTAKINGS 28.0 UNAUTHORISED USE OR MISUSE OF EMPLOYERS/PUBLIC PROPERTY

OR UTILITIES 29.0 UNIFORMITY OF RATES 30.0 RECOVERY RATE FOR CUT TREES 31.0 EXCEPTED MATTERS

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SPECIAL CONDITIONS OF CONTRACT 1.0 GENERAL: 1.1 These special conditions of contract shall be read in conjunction with the

other contract documents and are complementary to Invitation to Tender, General Conditions of Contract, Specifications, preamble to bill of quantities, bill of quantities, drawings and/or other supplementary documents detailing the work.

2.0 INTERPRETATION OF CONTRACT DOCUMENTS: 2.1. In case any portion of the Contract documents is repugnant to or at

variance with any provisions of the 'Special Conditions of Contract' and ‘General Conditions of Contract' and or with the other documents, the documents that shall prevail over the other shall be as detailed hereunder:

1) Special Conditions of Contract prevail over provisions of General

Conditions of the Contract.

2) Provisions in the Bill/Schedule of quantities including Preamble to Bill of Quantities shall prevail over the provisions of specifications, drawings and special conditions of contract.

3) Between two issues of same document, the document revised or re-

issued as of the later date shall prevail.

4) All specifications, contract drawings and other documents shall be interpreted in conformity with the general conditions of contract as supplemented and/or modified by Special conditions.

5) In case of any conflict of meaning either in the same document or

between other documents (other than the above stipulations), the Engineer's decision will be final, binding and conclusive.

3.0 SCOPE OF WORK/COVERAGE OF CONTRACT:

The scope of work under this contract will be “ __________________________

____________________________________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________’’ complete in all respects all as per drawings, specifications and instructions of the Engineer and any other details to be furnished from time to time and as broadly indicated in the bill of quantities.

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3.2 The contract for the work is a complete one for all materials, labour and workmanship with the contractors overhead and profit, including all temporary works and the provisions and use of construction/fabrication/erection equipment, tools, tackles etc. It will be contractor's responsibility to do all the works and incidentals for quality execution and handing over to the employer the completed works according to the drawings, specifications and directions of the Engineer at contractors cost.

3.3 Except where it is expressly provided that the cost will be borne by the

employer, the various obligations of the contractor under the contract shall be at the cost of the contractor.

4.0 MATERIALS BY EMPLOYER: 4.1 The Employer shall arrange to issue materials to be incorporated in the

permanent works as listed out at Annexure-1 to the Contractor free of cost subject to provisions in the subsequent clauses hereunder. All other materials required for the subject work shall be arranged by the Contractor at his own cost.

4.2 The Contractor shall render full account of the materials after completion of

work or on termination of contract, failing which penal recovery shall be made from the bills of the Contractor.

4.3 The Contractor shall at his own cost, take delivery of the materials from the

place of issue and the Contractor's quoted rates shall be deemed to include all charges for taking delivery, loading, transporting, unloading, handling, stacking and storage including rehandling as required of all materials issued to him by the Employer from the place of issue.

4.4 All the materials issued by the Employer shall remain the absolute property

of the Employer and at all times shall be open for inspection by the Employer/Engineer. The Contractor shall be solely responsible for watching and guarding of the materials. The Employer's authorised representative shall be free to make any surprise check of the Contractor's stores to verify the stock of Employer's materials. The responsibility in case of any loss, damage or theft to these materials after they have been issued to the Contractor shall rest entirely with the Contractor. These materials shall not be removed from the site/shop by the Contractor due to any reason whatsoever without the written permission of the Employer.

4.5 The Contractor shall keep the Engineer informed regarding his

requirements of materials to be supplied by the Employer. He shall also submit every month to the Engineer in writing three (3) months requirement of materials in the Employer's prescribed proforma, indicating quantities and the details/calculations based on drawings.

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4.6 The Contractor shall keep proper account of the materials supplied to him

by the Employer and shall submit monthly statements to the Engineer showing the materials received and consumed and the balance lying in his custody in site/sites.

4.7 Where the contract is terminated the Contractor shall arrange at his own

cost to return all balance materials at Employer's stores/yard issued to him by the Employer.

4.8 The Employer/ Engineer reserves the right for inter-transfer of materials

issued by the Employer from one Contractor to the other if it becomes necessary during the course of execution of work and the Contractor shall not object to this. Such transfer of materials shall be regularised by issue of material return note and stores issue note.

4.9 CONDITIONS FOR TAKING OUT THE MATERIALS ISSUED BY THE

EMPLOYER:

Generally all fabrication works shall be done at the area allotted by the Engineer within the plant premises only. However, in special circumstances, items requiring special job for which facilities are not available/are not sufficiently available, the Engineer may allow for fabrication of such items outside the plant premises. The fabrication outside the plant premises shall be undertaken by the Contractor only with the specific written approval of the Engineer. Under such circumstances the Contractor shall submit a bank guarantee in the prescribed form for equivalent amount of the materials to be taken out by him or as may be issued to him directly from the suppliers.

4.10 The Contractor shall bear all the expenditure at all stages on account of

loading, unloading, transportation and other miscellaneous expenses, losses and damages for all materials upto his fabrication yard/shop and thereafter to the erection site including all other expenses till the erection works have been completed and handed over to the Engineer. The unit rates shall be inclusive of all such incidental expenses and no extra shall be payable on any account in this regard.

4.11 Irrespective of whether the fabrication is done within or outside the plant premises the unit rates quoted by the Contractor shall be the same.

4.12 The Contractor shall not divert or convert any such materials for their own

use or for any other use not connected with the works entrusted.

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4.13 Issue of Reinforcement Steel:

Steel shall be issued in conventional standard length/ sizes/coils as available with the Employer on the actual weighment basis or measurement basis.

4.14 Consumption of Reinforcement Steel:

The Steel used for the works shall be computed based on the sectional weights as indicated in Annexure-II.

4.15 Accounting of steel and return of surplus material/Steel:

Contractor shall properly account for total raw steel issued by the Employer. All surplus steel in full sizes and in cut-pieces/ scrap shall be properly sorted out and stacked separately by Contractor and returned to Employers Stores/Yard. As regards the quality/conditions of materials returned the decision of Engineer shall be final, binding and conclusive. Return of surplus steel including cut-pieces/scrap to Employer's stores from Contractor's sites/yards shall be done by the Contractor at his own cost. In the event of refusal or delay by the Contractor to do so, the Engineer shall have the right to arrange the same at his discretion and the cost so incurred shall be recovered from Contractor.

4.16 Steel of following sizes are to be considered as full size and return of such

steel by the Contractor to VSP stores, treated as surplus steel returned.

a) Reinforcement steel (M.S round Bars and M.S. deformed bars having lengths 5500 mm and above)

Steel returned other than of the above sizes shall be considered as cut-pieces/scrap.

4.17 For the purpose of steel accounting, the following allowances towards

wastages shall be considered :

a) Upto 1.5% of admissible quantity worked out as per Clause 4.10 shall be regarded as non-accountable/non-recoverable wastage. In case of lesser wastages than 1.5%, scrap/cut pieces to the extent of such lesser wastage shall be acceptable.

b) Upto 3.5% of admissible quantity worked out as per Clause 4.10

shall be regarded as permissible wastage on account of cut pieces/scrap and the same shall be returned by the Contractor.

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c) For the scrap returned under sub-clause (a) and (b)above, no other credit towards scrap value shall be given separately.

Thus, the total quantity of steel consumed worked out as per Clause 4.10 plus surplus steel returned plus permissible wastage against return of cut pieces/scrap plus admissible quantity of non-returnable/non-accountable wastage shall be equal to the quantity of steel issued by the Employer. Any shortage of steel after accounting of steel as above shall be treated as unaccounted steel.

4.18 a) Recovery for the unaccounted steel shall be effected at the rate of : Rs.52,600/-(Rupees Fifty two thousand six hundred only) per MT.

b) Where the contractor returns scrap/cut pieces beyond permissible limits laid down under Clause 4.17 above and if the same is accepted by VSP, the contractors' account shall be credited with the value of the scrap at the rate of Rs.4,800/- (Rupees four thousand eight hundred only) per MT while effecting recovery for the unaccounted steel at the rates specified at 4.18(a) above.

4.19 Issue and consumption of steel shall be computed as per Clause 4.13 &

4.14. No claim on account of any variation in weight on account of rolling variations will be entertained and Contractor's quoted rate shall be deemed to take into account this contingency. No claim on this account will be entertained.

4.20 ACCOUNTING OF CEMENT:

All cement issued by the Employer shall be accounted for and surplus cement must be returned by the contractor in good condition as certified by the Engineer to Employer's stores.

The accounting of cement shall be based on the norms of design mix plus upto 5% (five percent) towards wastage for items where cement used is based on design mix. Where design mix is not followed the accounting shall be based on norms (includes wastages) stipulated in the special conditions of contract.

The penal recovery for unaccounted cement shall be at the rate of : Rs.4,000/- per MT (Rupees Four thousand only) per MT.

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4.21 MATERIAL FOR ENABLING WORKS:

Subject to availability, Employer may issue cement for the enabling works of the contractor. Such issues will be restricted to the bare minimum. The contractor has to deposit cash/demand draft towards the cost of these materials at the following rates before drawing these materials from the Employer. Engineer's decision regarding the issue of materials for enabling works shall be final, conclusive and binding.

i) Cement : Rs.3,500/- per MT (Rupees Three thousand five hundred only) per MT.

The materials issued for the enabling works on the cost recovery, shall be the property of contractor.

4.22 CONTAINERS:

The containers of all materials supplied free by the Employer need not be returned by the contractor. The tendered rates shall take into account the realisable values.

5.0 MATERIALS BY CONTRACTOR: 5.1 All materials required for the works and under the scope of the

contractor's supply shall conform to the relevant specifications and or as per Bureau of Indian Standards and shall be arranged and procured by the Contractor at his own cost. All such materials shall be subject to inspection and approval by the Employer from time to time and the Contractor shall provide all facilities for its inspection free of cost. The Engineer will reject such materials which do not conform to the specifications and no claims for compensation on this account will be entertained.

Non-supply/Delays, if any, in the supply of committed materials by the Employer will not form the basis of any claim whatsoever by the Contractor except for cost of such material on actual basis if procured by the Contractor with the permission of Employer.

5.2 All materials and workmanship shall conform to the specifications and

drawings issued from time to time. In case if any item is not covered by the specifications and drawings so issued it shall conform to the relevant Bureau of Indian Standard and or as directed by the Engineer.

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5.3 Unless specifically mentioned otherwise, all applicable codes and standards published by Bureau of Indian Standards and all other such documents (as may be published by IS from time to time and existing) shall govern the design, the workmanship, the quality/properties of the materials, the method of field and laboratory testing, the method of measurement for different items of work etc.

5.4 The adherence to the specifications and drawings given for execution and

acceptance of construction/maintenance work is obligatory on the part of the contractor for the construction/maintenance works of the various units in the work. If in the course of construction/maintenance work, some additional clarifications are needed which are not covered by the specifications and or drawings issued the contractor shall be given proper instructions in writing by the Engineer. Such instructions shall be complied in full by the contractor regarding specifications, drawings, methods of executing the work, method of test and other necessary measures for completing the work as per the agreed construction/maintenance schedules. Such instructions shall be final, binding and conclusive on the contractor. No extra will be payable. The Engineer's decision on this shall be final, binding and conclusive.

5.5 INSPECTION OF MATERIALS:

Construction materials brought by the contractor for incorporation in the works shall be inspected and passed by the Engineer from time to time. The contractor shall provide all facilities for such inspection at his own cost.

All rejected materials shall be removed from the site forth-with by the contractor at his own cost.

Materials shall be got tested by the contractor at approved laboratories at his own cost. The test certificates shall be submitted for the necessary approvals.

5.6 INSPECTION OF WORKS TO BE EMBEDDED OR COVERED UP:

In respect of portions of work which are likely to be embedded or covered up by other works, the contractor shall submit these items of work with advance notice for technical inspection and approval to the Engineer or his representative and get the same cleared by them before letting such portions to be embedded or covered.

5.7 ACCESS TO SITE:

The contractor shall arrange for all temporary roads and gangways required for the work and access to site at his own cost.

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6.0 WATER: 6.1 Water required for the works will be made available free of cost to the

contractor from Employer's existing water main from a suitable point to be allotted by the Employer. The contractor shall make his own arrangements for drawing water from this point and for further distribution at his own cost with the approval of the Engineer. The contractor shall construct necessary storage vats at his own cost for storing enough water as may be necessary and at least for two days requirements. No claim for compensation for any failure or short supply of water will be admissible. The detailed requirement of water may be indicted by the Contractor for the consideration of the Employer. The employer reserves the right to draw water without charge from distribution lines laid by the contractor, if he requires the same for any of his other works executed directly or through other agencies.

6.2 On completion of the work, the contractor at his own cost shall remove all

the above said pipelines unless their retention is permitted by the Employer before the final settlement dues to the contractor are released. The employer reserves the right on completion of the work to take over any or all the pipelines put up by the contractor at prices to be mutually agreed upon which in any case will not be more than the actual cost incurred by the contractor less depreciation at standard rates.

7.0 POWER: 7.1 Electric power at 415/240 Volts, 3 phases/1 phase, 50 cycles in bulk, at

the existing substations or kiosks and as per the discretion and under the control of the employer will be made available to the contractor. Further connections, distribution, installation of the switch board etc, shall be arranged and maintained by the contractor by a licensed supervisor and at his own cost, with prior approval of the Engineer. The distribution system shall conform to the Indian Electricity Act 1910 and the Indian Electricity Rules 1956, with the latest amendments, and all the installations are to be approved by the Electrical Inspector, Government of Andhra Pradesh before power can be supplied by the Employer. All wiring from the switch board shall be removed by the contractor on completion of works. He shall reinstate and make good any work disturbed by the temporary power lines at his own cost to the satisfaction of engineer. No claim for compensation for any failure or short supply of power will be admissible. The contractor may indicate the requirement of electric power including for lighting for the consideration of the Employer.

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7.2 The contractor shall intimate in writing soon after the work is awarded, the requirement for power indicating the phases requirements if any. The contractor shall ensure that the electrical equipment installed by him would be such that the aggregate power factor does not fall below 0.85 at the employer's terminal point.

7.3 Power supply shall be free of cost to the contractor for all the works to be

done as per contract, offices and other site facilities located within the Township for this work.

The contractor shall make his own arrangements at his own cost to draw power for all the works to be done as per contract, offices and other site facilities from the supply point allotted by the employer.

7.4 The Employer shall make all possible efforts to maintain regular power

supply but shall not be responsible for any failure of power supply and any consequences arising therefrom. The contractor shall obtain the permission of the employer for installation of machinery, construction of buildings and electric power supply connection to them. The contractor shall maintain the distribution system and shall be responsible for any defects therein. Any defect pointed out by the Employer/electrical inspector in the distribution system shall be rectified forthwith by the contractor failing which the power supply may be cut by the Employer.

8.0 LAND: 8.1 The employer will at his discretion and for the duration of the contract

make available land, free of charge, within and/or near the employer's works site for the contractor to put up the stores, site fabrication yard and office as required for the execution of the contract. Any clearing and leveling of ground, services, roads etc. as required shall be done by the contractor at his own cost conforming to the various stipulations of the Employer. The area required for the above purpose may be indicated by the contractor for the consideration of the employer.

8.2 Accommodation for labour and supervisory staff:

The contractor shall make his own arrangements for the accommodation of his labour and supervisory personnel for which no land shall be provided by the Employer.

8.3 On completion of works and/or on termination of contract, field office,

construction stores, fabrication yard and all other temporary works shall be dismantled and removed from the site by the contractor and the site and works shall be left clear and clean of all obstruction at his cost. In the event of contractor's failure to do so, the Employer reserves the right to clear the site in the manner as he may deem necessary and the cost and

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expenses for all such clearances incurred by the Employer shall be recovered from the contractor's bills or from any money due to the contractor from the Employer without prejudice to any other measures the Employer is empowered to take under the contract. The Employer also reserves the right to take over any or all such temporary structures put up by the contractor on completion of the works at the mutually agreed terms.

9.0 TIME FOR COMPLETION/DURATION OF CONTRACT: 9.1 The completion period/duration of contract for the entire work shall be as

specified elsewhere reckoning from the 10th day of issue of letter of intent or Fax letter of intent whichever is earlier.

A detailed schedule of work is to be prepared and submitted by the Contractor soon after award of the work for approval of the Engineer. Time is essence of the contract. The contractor shall complete the work in phases as per the approved schedule. In the event of non completion of work as indicated in the schedule, action as deemed fit by the Engineer shall be taken in terms of contract.

9.2 The work covered under the contract is to be executed in a well coordinated

and in a sequential manner so as to give fronts for work to other agencies in the area. With this objective, the contractor has to execute the work as per the approved time schedule set by the Engineer and the contractor shall make all necessary arrangements including planning for executing the work in all shifts and also on Sundays and holidays as per the requirement to keep to the time schedules and to maintain commissioning schedules for different shops/units of the work. In some cases, the work may have to be carried out intermittently. No extra payments will be made on these accounts by the employer.

9.3 The contractor shall furnish detailed monthly and annual

programme/schedule in consultation with the Engineer prior to commencement of work. The contractor shall follow the programme diligently as approved by the Engineer and the approved programme shall be final, binding and conclusive on the contractor.

9.4 PROGRESS REPORTS:

The contractor shall submit to the Engineer in the prescribed form and at regular intervals as required by the Engineer, the details of progress of work executed in addition to all other reports and returns to be submitted as per the statutory obligations and/or as per the other conditions of the contract and or as directed by the Engineer.

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9.5 The contractor shall execute the work to the satisfaction of the Engineer and strictly adhere to the time schedules. Any addition, alteration or modifications in the time schedule or specifications given in writing by the Engineer will be final, binding and conclusive on the contractor.

9.6 If at any time the Employer finds that any particular work/works is/are not

progressing properly according to the approved detailed programme, the Employer will have the right to take over the particular work/works for execution by himself or through any other agency at the risk and cost of the contractor.

9.7 AUTHORISED AGENT:

The contractor shall have a duly authorised agent at site from the commencement to the completion of the work. Such agent shall be authorised to act on behalf of the contractor, to accept notices under the contract and to agree to extra and varied items of works and rates for the same. Such agent shall maintain in his staff, qualified engineers, and such other personnel as may be required for efficient execution of the works. Any notice under the contract shall be deemed to have been served on the contractor if served upon such agent at site or sent by registered letter to the agents address. The agent shall not be changed (unless required by the Engineer) and continued till completion of the contract unless the consent of the engineer has been previously obtained for the change of the Agent.

9.8 The contractor shall send at his own cost a duly authorised competent

representative to meet the Employer at his office at Visakhapatnam or at any other place within the country in connection with his works whenever called upon to do so by the Employer or Engineer and any instructions, directions or explanations given by the Employer or by the Engineer to such representatives shall be deemed to have been given to the contractor for compliance.

9.9 EQUIPMENT AND TOOLS:

The contractor shall make his own arrangements for all equipment, tools etc., for all the works covered in the contract. He shall state herein attached, the type and number of different equipment in good working condition, with their capacities etc., which will be used for the works to ensure the completion of the works in the specified time.

9.10 All equipment plant and tools once brought by the contractor to the site

are not to be removed from the site without the written permission of the Engineer. Also, the contractor shall promptly arrange spare parts, consumables, fuel, lubricants etc. for the equipment etc. on the site as and when necessary at his own cost.

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9.11 If in the opinion of the Engineer, the tools, tackles, plant and equipment etc. brought to site or arranged by the contractor, are not sufficient or/are inadequate, the Engineer shall have the right to direct the contractor and the contractor shall comply with the directions, and arrange to bring such additional tools, tackles, plant and equipment, instruments etc., to the site and employ the same for the work at his own cost.

9.12 MACHINERY:

The contractor has to arrange for adequate number of necessary machinery such as compressors, jack hammers, shovels, dumpers, dozers, cranes, concrete batching plants, weigh batchers, concrete mixers, vibrators etc., which are in good working condition in order to complete the work as per the agreed schedule. The contractor shall furnish a list of machinery which they propose to deploy for the work.

9.13 COOPERATION WITH OTHER CONTRACTORS AND EMPLOYER'S

OPERATION DEPARTMENT:

The contractor shall plan and execute his work in phased manner as directed by the Engineer from time to time and shall fully cooperate with other agencies working at site simultaneously as well as with the employer's operation department so as not to obstruct or retard the work being simultaneously executed by other agencies and the plant operation in any way. The decision of the Engineer on any point of dispute between the various contractors shall be final and binding on all the parties concerned.

10.0 DRAWINGS: 10.1 The Employer shall issue progressively upto five copies of detailed drawings

to the contractor free of cost for execution of work. The Engineer, however reserves the right to alter or modify the drawings issued. No claim will be entertained on account of such modifications or alterations made in drawings. However, all elements of works as actually executed will be paid. The opinion/decision of the Engineer in all such matters shall be final, binding and conclusive.

Three additional copies of the above drawings shall be issued free of cost to the Contractor for preparation of as made drawings. The contractor shall incorporate (in red ink) all the approved changes etc. along with approval references in the drawings after completion of the work and submit the same to the employer, if so directed by the Engineer with no extra cost to the employer.

10.2 After completion of work, all copies of drawings available with the

contractor shall be returned to the Engineer.

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11.0 ADVANCES: 11.1 MOBILISATION ADVANCE:

Interest bearing Mobilisation Advance to the extent of 5% of the awarded value of the contract at the discretion of the Employer will be paid to the Contractor as under:

i) Within 30 days from approval of construction schedule ….. 3%

ii) Within 30 days from establishing the site facilities to the satisfaction of the Engineer ….. 2%

Simple interest at the rate of 15%(Fifteen percent) per annum shall be charged on the above mobilisation advance after payment of the same from the date of cheque. The above stage payments will be made on submission of Bank Guarantee covering the advance amount as well as interest amount calculated on completion period as stipulated in the tender schedule. The Bank Guarantee shall be in the proforma prescribed by the Employer.

The Bank Guarantee shall be valid for a period of 3 (three) months beyond the completion period as given in the tender schedule.

The recovery of advance along with the interest shall be completed within completion period as stipulated in the tender schedule. At each stage of recovery either monthly or periodically the interest upto that period is calculated and recovered along with the advance installment from on account payment bills.

11.2 SECURED ADVANCE ON MATERIALS:

Interest bearing Secured Advance at the rate of 15%(Fifteen percent) simple interest per annum will be paid on the recommendation of the Engineer to the extent of 75% of the assessed value of materials brought to site from time to time provided the contractor signs Indenture Bond in the form prescribed by the Employer and remains responsible for proper upkeep of the materials and also provided that the materials are not perishable nature. For this purpose, the value will be assessed by the Engineer whose decision will be final, binding and conclusive. As and when the materials are utilized and payment is claimed for the work on the item wise basis, recovery will be made for the materials so utilized on the items of works billed for along with interest upto that period and advance instalment. The decision of the Engineer in this regard shall be final. The interest shall be charged on the above advance after payment of the same from the date of cheque.

11.3 No other advances shall be payable.

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12.0 TAXES AND DUTIES: 12.1 Total amount quoted shall be inclusive of all taxes, duties, royalties,

overheads and the like, but excluding service tax.

Service tax paid by the successful tenderer shall be released only on submission of invoice detailing the amount of service tax payable on the input services as per the service tax rules

The applicable service tax amount will be released to the contractor on submission of relevant documents like copy of Registration Certificate from their Jurisdictional Superintendent of Service Tax that they are registered under the service tax rules and Cenvatable invoice containing the following details: i) Their name, address and the registration number and service tax range.

ii) The name and address of the person receiving taxable service (RINL)

iii) Description, classification and the value of taxable service provided.

iv) Service tax and education cess payable thereon.

12.2 The contractor should have registration under all applicable Statutory Acts.

He should produce documentary evidence to this extent before the work is awarded/started.

12.3 EMPLOYEES PROVIDENT FUND ACT:

The contractor shall ensure strict compliance of provisions of the Employees Provident Fund Act 1952 and the Scheme framed thereunder in so far as they are applicable to their establishments and agencies engaged by them. The contractor is also required to indemnify the Employer against any loss or claims or penalties or damages whatsoever resulting out of non-compliance on the part of the contractor with the provisions of the aforesaid Act and the Schemes framed thereunder.

13.0 DEDUCTION OF TAXES ETC., AT SOURCE: 13.1 Recovery at source towards Income Tax calculated at the rates prescribed

from time to time under the Income Tax Act 1961 and other relevant provisions of the Income Tax Act shall be made from the bill of the contractor and the amount so recovered shall be deposited with the Income Tax Department. Necessary receipt to this effect will be issued to the contractor in the prescribed proforma.

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The contractor shall pay all taxes, levies, duties etc. as prescribed from time to time by the State/Central Government directly to the State/Central Government.

The contractor should produce documentary evidence for having paid the seigniorage fee/royalties/dead rent etc., as prescribed from time to time for Minor Minerals to the State Government. In the absence of production of such evidence the normal seigniorage fee/royalties/dead rent etc., together with five times penalty will be recovered from the bills of the contractor and paid to the State Government by the Employer.

13.2 SET-OFF :

Any sum or money due and payable to the contractor under this contract may be appropriated and/or withheld by the employer and set-off against any claim of the employer for payment of a sum or money arising out of or under any other contract or transaction with the contractor by the employer or by the Government (State/ Central) or by any Government Undertaking/Autonomous Body.

14.0 PRICE VARIATION:

The price variation on accepted rates of the Bill of Quantities will be permissible only to the extent given in Annexure-IV-A & IV-B enclosed. No other claim on account of any other variation either statutory or otherwise shall be applicable and the contractor’s rates shall be held to cover any such price fluctuations.

15.0 VARIATION IN QUANTITIES: 15.1 Quantities against individual items shall be subject to wide variation,

without any limit. As such the parties are required to quote self-sustaining and reasonable rates against each item. No claim on account of wide variation of the quantities of individual items will be accepted. However, the rates in the agreement shall be valid upto plus or minus 30% of the initial contract value. No change in the unit rates or any claim on account of variation upto plus or minus 30% of the initial contract value will be entertained. Rates for quantity variation beyond this limit shall be mutually agreed to.

16.0 BILLS: 16.1 Payment of all works done by the contractor shall be made on the basis of

the measurements recorded in the measurement sheets in the proforma prescribed by the Employer. The contractor shall submit the bills once in a month for the work done, unit wise, in the prescribed proforma with such details as may be required by the employer and based on measurements as

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accepted by the Engineer or his authorized representative. Such bills after scrutiny, checking and necessary correction will be passed by the Engineer or his representative after making deductions, if any. The payment will be made 15 days after receipt of complete on account bills by the Engineer or his authorized representative from the contractor.

16.2 In respect of foundations where connected works are to be carried out by

the same agency for enabling the other agencies to take the erection work, the Engineer reserves the right to withhold upto 10% of the amount due unless the connected works are completed to hand-over the foundation in time for the purpose of erection to other agencies. In respect of works relating to basement, tunnels and electrical rooms, the Engineer reserve the right to withhold upto 10% of the amount due in case the fronts are not handed over in time to the erection agencies.

16.3 The contractor has to submit his bill in the prescribed format to meet the

requirement of computerised bill payment system of the Employer. The contractor shall also arrange data entry to suit the Employer/system at his own cost.

16.4 FINAL BILL:

Final payment for the work shall be released only after certification by the Engineer of satisfactory performance and completion of the contract in all respects and on an absolute no demand certificate in the prescribed form and upon return in good conditions of any documents, drawings, samples, or other property belonging to the Employer returnable as per contract and on compliance of all other clearance or requirement as per this contract. In order to expedite finalisation of contract the contractor will submit pre-final bill with final measurement, materials account, completion drawings etc., for every completed asset within three months of its completion and payments thereof will be made within three months subject to the contractor satisfying all requirements as per contract. In case of minus bill recovery will be effected from other dues.

16.5 The Engineer or his representatives or any Government Authority with the

permission of the Engineer shall reopen the work, examine the work or material and get tested the materials or work at any time and apply any deduction as deemed fit for non-conforming to the requirements as per specifications and other document. Release of any payment earlier will not absolve the right for such action. The contractor shall attend to all such works and rectifications directed by the Engineer without any extra cost. The decision of the Engineer shall be final, binding and conclusive.

17.0 SECURITY REGULATIONS:

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17.1 The contractor shall abide by all the security regulations of the Employer in force and promulgated from time to time and other statutory requirements.

17.2 SAFETY CODE:

The contractor shall abide by the safety regulations of the Employer, or as required by the Engineer, in respect of all labour engaged for the performance of the works and shall provide all the facilities in connection therewith. The contractor shall be responsible for following the provisions of all labour laws and rules made thereunder and other statutory requirements. The contractor shall ensure that necessary safety appliances are being used by his employees and workers working at site, particularly those engaged in erection work, without which the employees and workers shall not be permitted to be engaged on the work. The contractor shall be responsible for the safety of his men and employees. The contractor shall be responsible for making all safety arrangements in the execution of work and shall employ trained workmen conversant with safety regulations. The contractor shall use only tested equipment and tools and shall periodically conduct tests according to standard procedures laid and such certificates shall be readily available for inspection at the site of work. He shall replace any tools, if so asked by the Engineer. The contractor shall be responsible for following all safety regulations and report all accidents to the concerned authorities and the Engineer. The Employer reserves the right to issue directions regarding safety and such directions shall be immediately implemented by the contractor. The contractor shall be responsible for obtaining work permit for execution of work in the vicinity of operational area at no extra cost. The Contractor's men and employees shall pass through safety induction programmes and as directed by the Engineer at no extra cost.

17.3 IMPLEMENTATION OF CONTRACT LABOUR (REGULATION AND

ABOLITION ACT 1970):

The contractor shall ensure the implementation of all the relevant provisions of the above Act, and shall be deemed to be the principal Employer for the purpose. Accordingly, the contractor shall have registration with the concerned statutory authority as provided under the Act and shall be directly responsible to the authorities thereunder for compliance with the provisions thereof.

17.4 No child who has not completed his/her 14th year shall be employed or

permitted to work in any works of Visakhapatnam Steel Plant and a child who has completed his/her 14th year or a person below the age of 18 years shall not be employed unless a certificate of fitness has been obtained from the authorised Medical Practitioner. For such persons the working hours shall not exceed four and half hours and the period of work shall not be between 10.00 PM to 6.00 AM.

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17.5 SPEED CONTROL OF CONTRACTOR'S VEHICLES:

It will be entirely the responsibility of the contractor to ensure that his vehicles are not driven with so high speed, or in so reckless or rash manner as to cause an accident or prove to be a potential threat to the safety of the traffic. Where speed limits have been fixed, the same shall be strictly adhered to by the contractor's drivers. Similarly, if a driver or any staff of the contractor is caught in a theft case or in an unauthorised movement of materials or in any activity which is punishable under Law or in any activity not authorised by the Employer, the contractor shall bear the full responsibility for the loss and other consequences which may result to the Employer due to such illegal/unauthorised acts. In case of accident or injury or damage caused by the contractor's vehicle or by contractor's staff to any person or property the financial responsibility to compensate shall be borne solely by the contractor, and this amount may at the decision of the competent authority of Visakhapatnam Steel Plant be recovered from the bills or deposits of the contractor.

17.6 Suitable safety precautions shall be taken by the contractor for his

vehicular traffic at all level crossings/roads inside the plant/township area. Contractor would be using these roads at his own risk and responsibility without any liability on the part of the Employer.

17.7 SAFETY AND GUARDING OF WORKS:

The contractor shall take adequate safety precautions for prevention of accidents at site. The contractor shall also ensure that his employees observe the statutory safety rules and regulations as also those laid down by the employer from time to time and promptly submit report of accidents and state the measures taken by him to prevent their recurrence and also keep the employer indemnified of all claims arising out of such accidents.

The contractor shall at all time provide sufficient fencing, notice boards, lights, watchmen etc., to protect and warn the public and workmen and guard the works and provide all facilities and observe all the rules mentioned in the General Conditions of Contract and other documents and instructions issued from time to time by the Engineer which shall be final, binding and conclusive.

18.0 SITE ORDER BOOK:

A site order book shall be kept at the site of work under the safe custody of the contractor. Any special order and instructions to be issued to the contractor will be recorded in this book by the Engineer or his representative. Each page of the book will be numbered and initialed by the Engineer or his representative. The book shall always be kept safely at

Page 20

the site of work. The contractor shall sign all orders in token of his having seen and noted the same. The order book will be property of the Employer. The site orders and instructions shall be duly complied by the contractor.

19.0 LABOUR RETURNS:

Periodical statements of labour employed by the contractor shall be submitted in the proforma prescribed by the Engineer. The statement shall indicate the details of displaced persons, S.C. and S.T engaged.

Displaced persons shall be given preference in the employment in the work. 20.0 KEEPING WORKS FREE FROM WATER:

The contractor shall provide and maintain at his own cost, pumps and other equipment to keep the works free from sub soil water, rain water and continue to do so until handing over the works. The contractor shall follow the instructions of the Engineer.

21.0 ACCURACY OF WORKS:

Foundation bolts, inserts, jigs, fixtures etc., shall be fixed into concrete as required along with the original concreting/works to the accuracies indicated in the working drawings. The levels of foundation tops as also the surface of other concrete structures shall be to the accuracies indicated on the drawings and/or required for erection of structures, equipment or fixtures without chipping, plastering and other rectifications. All rectifications including redoing, if they become necessary and or permitted, will be at contractor's cost.

22.0 MODE OF MEASUREMENT:

The mode of measurement shall be according to IS;1200 (latest version) to the extent not rendered in-applicable by the specific provisions of this contract.

23.0 TRANSFER OF GUARANTEES:

All guarantees such as for anti-termite treatment, water proofing, acid resisting materials etc., for the entire works as obtained from the manufacturers or specialist agencies shall be transferred to the employer by the contractor prior to acceptance of such works, and the contractor shall be responsible for the works during the guarantee period.

Page 21

24.0 MAINTENANCE OF WORKS: 24.1 If the Engineer shall require the contractor to carry out any rectifications

under the terms of the contract after the works are completed, the contractor shall ensure to attend to same at his own cost and within the time stipulated by the Engineer.

24.2 The Contractor shall indemnify the Employer against any loss or liability

that may be incurred by him on account of any failure on the part of the Contractor for timely rectification of the defects pointed out within the maintenance period. The release of retention money/security deposit against each unit/work shall be after completion of the maintenance period of such each unit/work as per discretion of the Engineer.

25.0 SUBMISSION OF OTHER DOCUMENTS FOR ACCEPTANCE OF WORKS:

On completion of any unit of work, the contractor shall submit to the Engineer all or any of the following documents for approval of the works as per directions of the Engineer.

1. Completion certificate for embedded and covered up works. 2. Manufacturer's certificates and test certificates, wherever applicable. 3. Certificates on control, checking and test of materials. 26.0 CLEARING THE SITE:

Unless otherwise specified the contractor shall clear from the site before start of work all trees, rubbish, vegetations and brick bats, stones Etc., and dispose them suitably in allotted areas as directed by the Engineer at his own cost. The contractor shall also clear the site and hand over the site on completion of work free from debris and surplus materials / earth etc., at his own cost.

27.0 GOVERNMENT UNDERTAKINGS: In case the contractor is a Government of India Undertaking, any dispute between the contractor and Employer in respect of this contract shall be settled in accordance with the procedure laid down by the BPE / Government of India from time to time.

Government Undertaking will not be required to submit Security Deposit or Bank Guarantee for advance but however they shall submit Performance Bond in lieu of Security Deposit and Indemnity Bond in lieu of Bank Guarantee for advance in approved formats.

28.0 UNAUTHORISED USE OR MISUSE OF EMPLOYER'S/PUBLIC PROPERTY

OR UTILITIES: The contractor and his Employees/workmen and the Contractor's Sub-contractor and their Employees/workmen are forbidden to unauthorisedly use or misuse the Employer's/Public property or utility and if any such

Page 22

unauthorised use/misuse occurs, the Employer may take severe action against the contractor including for direct and indirect damages, losses etc., for removal of their workmen concerned and forfeiture of their Gate Passes, in addition to statutory and legal actions on the contractor. Such recurrent action by the contractor will also be considered as persistent negligence on the part of the contractor to carryout his obligations under the contract.

29.0 UNIFORMITY OF RATES:

Where more than one schedule of quantities from part of the same tender and where, in such cases, similar items appear the tenderer shall quote same rates for the same items of the works in all the schedules of quantities. In case any of extra work in respect of any schedule of quantities being executed, the rate for such extra work shall be the same for such items of work if so included in the other schedule of quantities.

30.0 The recovery rate for trees beyond 300mm girth and upto 600mm girth will

be Rs.40/- (Rupees forty only) per each tree, for trees beyond 600mm girth and upto 1200mm girth will be Rs.160/- (Rupees one hundred sixty only) per each tree, for trees beyond 1200mm girth and upto 2400mm girth will be Rs.640/tree (Rupees six hundred forty only) and for trees beyond 2400mm girth & above will be Rs.2560/tree (Rupees two thousand five hundred sixty only).

31.0 In the above Clauses wherever it is mentioned that the

decision/instructions/ opinions of the engineer will be final/binding and are conclusive these will also be treated as excepted matters as defined in General Conditions of contract.

32.0 The contractor has to comply with all statutory requirements in respect of

labour employed during the period of contract. The contractor has to obtain licence from Central Government Authorities and should maintain the documents/registers prescribed under the Contract Labour (R&A) Act, 1970 and follow the rules made thereunder and as amended from time to time.

33.0 Payments of Minimum Wages:

Wages paid to the workmen by the contractor should not be less than the rates notified by Commissioner of Labour, Andhra Pradesh, Hyderabad published in the Andhra Pradesh Gazette from time to time with regard to the minimum wages applicable to the respective category of workmen. Wages to the workmen should be paid on or before the 7th of the subsequent month. If 7th falls on a holiday or weekly off day, the payment

Page 23

should be made one day prior to that. Payment of PF for the month both the employer's (in this case Contractor) and employee's (in this case workmen employed by the Contractor) contribution should be deposited in the bank in the permanent PF Code numbers and challan obtained before the 15th of the subsequent month and forwarded to the "Engineer". In case of failure of the Contractor to comply with any of the above, the following action will be taken by VSP. LAPSE ACTION BY VSP

1. Payment of wages at rates less than those notified under the minimum wages notification

An amount equivalent to the differential amount between wages to be paid under the minimum wages notification of the Government applicable for the period less actual wages paid shall be recovered from the bills as certified by the Engineer.

2. Non payment of wages

An amount equivalent to wages payable by the contractor applicable for the relevant period shall be recovered from the bills as certified by the Engineer.

3. Non payment of PF Recovery of the PF amount and an amount equivalent to maximum penalty livable by Regional Provident Fund Commissioner for the delayed period under the provisions of EPF & MP Act and Rules for delayed remittance of PF contributions (both the employee's and employer's contributions), shall be recovered from the bills of contractor as certified by the Engineer.

4. Delayed payment of PF

An amount equivalent to maximum penalty leviable by Regional Provident Fund Commissioner for the delayed period under the Provisions of EPF & MP Act and Rules for delayed remittance of PF contributions (both the employee's and employer's contributions), shall be recovered from the bills of contractor as certified by the Engineer.

34.0 The contractor shall submit the Running Account Bills and the Final Bill in

approved proforma with duly signed measurement sheets to Engineer in quadriplicate for certification. The bills shall be accompanied by quantity calculations in support of the quantities contained in the bill along with the certificates and statements as directed by the Engineer. All Running Account payments shall be regarded as on account payments to be finally adjusted against the final bill payment.

Page 24

The contractor shall maintain registers in approved proforma for the materials (cement etc) issued by Employer indicating particulars of receipts, particulars of issues and balance at site etc.

At the time of submission of bills the contractor shall submit custody certificate (material-wise) certifying the total quantity of materials collected from Employer, materials consumed in the works and balance materials lying in good condition and safe custody by the contractor at site. In case of any variations, the Engineer shall (whose decision shall be final and binding on the contractor) affect the applicable recoveries for the unaccounted material.

Also the contractor shall submit duly filled and signed along with the RA Bills and Final Bills, the following certificate/documents in approved proforma, failing which the bills shall not be passed for payment.

For RA Bills: Certificate complying statutory obligations of Labour Rules (Proforma enclosed) along with copies of the Labour License and Insurance Policies, detailed measurement sheets along with Bill in Bill form, unstamped acknowledgments for the materials received from Employer, materials issue statements along with copies of stores issue notes, material consumption statements, material issue and recovery statements, Royalty/ Seigniorage charges statements, along with proof of payment of the charges to Mines Department for the minor minerals consumed in the works.

For Final Bill: Check list for final bill (proforma enclosed), final measurement sheets along with the final bill in final bill form, unstamped acknowledgments for the materials received from Employer, materials issue statements along with copies of stores issue notes, material consumption statements, hire charges for the equipments, tools and tackles issued by the Employer, material issue and recovery statements, Material return statements along with original copies of the Stores Return Notes, No claim certificate by the contractor (on letter head of the Contractor), no objection certificate for payment of final bill from the `Engineer’, Royalty / Seigniorage charges statements along with proof of payment of the charges to Mines Department for the minor minerals consumed in the works.

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35. The following deductions shall be made from the bills/amounts due to

the contractor as applicable for the work done and such deducted amounts shall be released as mentioned below:

Recovery amount per labour per every

WORKING DAY (in Rs.) Sl. No.

Component

UN-SKILLED (Rs. Ps.)

SEMI-SKILLED (Rs. Ps.)

SKILLED (Rs. Ps.)

To be released when

01.

Notice Pay 8.50 10.75 13.00

02. Retrenchment compensation

4.25 5.40 6.50

03. Leave with wages

5.25 6.65 8.05

After the Contractor makes payment to the workers in the presence of Engineer and CLC representative. A certificate to this effect is to be enclosed with pre-final bill. (to be paid with pre-final bill)

Sub-Total

18.00 per evey

working day

22.80 per every

working day

27.55 per every

working day

04.

Bonus

8.55

8.90

8.90

After the Contractor makes payment to the workers in the presence of Engineer and CLC representative. A certificate to this effect is to be enclosed with RA bill/pre-final bill. (to be paid with RA bill / pre-final bill as and when paid by the Contractor)

Grand Total

Rs.26.55 Ps per evey

working day

Rs.31.70 Ps per every

working day

Rs.36.45 Ps per every

working day

Page 26

VISAKHAPATNAM STEEL PLANT VISAKHAPATNAM

PROJECTS DIVISION

(TO BE ENCLOSED WITH R.A. BILLS)

Sub: Statutory Obligations of Labour Rules 1. Name of the Contractor : 2. Name of the work : 3. Agreement No. : 4. Job Code No. & Party Code No. : 5. Labour License No. & Validity : 6. No. of workers for which above : labour license is obtained 7. Compliance to the provision : of Employees Provident Fund & Misc. Provisions Act, 1952 8. Validity of Workmen's : Compensation Insurance with

It is verified that no claims of the Workmen engaged by the contractor for this work has been received till date

Certified that we have been complying with the provisions of the statutes.

Signature of the Engineer Signature of

Contractor/ or his authorised Power of Attorney Holder with date

Name: Name: Designation: Address: Date:

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VISAKHAPATNAM STEEL PLANT VISAKHAPATNAM

CHECK LIST FOR FINAL BILL 1. Name of the work : 2. Name of the Contractor : 3. Contract-Agreement No. & Date : 4. Contract Value : 5. Value of Extra items : 6. Value of Final Deviation : 7 Final contract value : 8 Whether the final bill is in : prescribed format 9. Whether the total value of work certified

exceeds total contract value and if so, whether approval of the Competent Authority exists for the deviation.

:

10. Whether there are any extra items of work executed by contractor whether such extra items of work was approved.

:

11. Whether the work was completed within the contract/extend period of contract and whether any LD is levied.

:

12. Whether there is consumption of materials over and above theoretical consumption plus authorised wastages. If so, whether suitable recoveries are made on quantities used beyond norms. Theoretical consumption statement also be submitted.

:

13. Whether there are free issue of materials. If so, whether they have been properly accounted for and the surplus materials have been returned by the contractor or recovery as per the contract has been affected from the contractor.

:

14. Whether the empties/containers in case of free issues have been returned. If not so, whether proper recoveries have been made.

:

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15 Whether No Claim Certificate is furnished by

the contractor in proper form duly countersigned by the "Engineer".

:

16 Whether No Demand Certificate of the “Engineer" is provided.

:

17. Whether materials issued on loan basis have been returned. If not, whether proper recoveries are made at the rates approved by the competent authority.

:

18. Whether drawings have been submitted by the Contractor.

:

19. Whether As built drawings have been submitted by the Contractor.

:

20. Whether the Royalty/Seigniorage fee on materials has been cleared and Proof/No Demand Certificate from the appropriate authority produced by the Contractor.

:

21. Whether the site has been cleared by Contractor.

:

22. Whether any plant, machinery and equipment has been hired out to the contractor and if so, whether the hire charges have been recovered in full.

:

23. Whether water supply charges are recoverable and recovered.

:

24. Whether power charges are recoverable and recovered.

:

25. Whether all security passes issued have been returned by the contractor.

:

26. Whether there is any court attachment/ demands from Govt. departments. If so, whether recoveries have been made.

:

27. Whether the contractor has fulfilled Statutory obligations under the contract and CLC clearance from Personnel Dept submitted.

:

Signature of Engineer (VSP) Signature of Contractor with Seal Date: Date: Name: Name: Designation: Address:

Page 29

ANNEXURE-I

ANNEXURE-I OF SPECIAL CONDITIONS OF CONTRACT DETAILS OF MATERIALS TO BE ISSUED BY THE EMPLOYER

---------------------------------------------------------------------------------------------------- Sl. Details Place of issue No. ---------------------------------------------------------------------------------------------------- 1. Cement (Sulphate Resistant Employer's Stores/Storage Yard Portland, Pozzolona and at Steel Plant Site and or at slag) Stockyard of SAIL/ Producer's Stockyards and/or as stipulated in Special Conditions of Contract. 2. Reinforcment steel - Do - ----------------------------------------------------------------------------------------------------

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ANNEXURE-II

SECTIONAL WEIGHTS FOR REINFORCEMENT STEEL AS PER INDIAN STANDARDS ---------------------------------------------------------------------------------------------------- Sl. Diameter in mm Unit weights of reinforcement steel No. (Kg/M) (MS Rounds/Deformed Bars) ---------------------------------------------------------------------------------------------------- 1. 04 0.099 2. 05 0.154 3. 06 0.222 4. 08 0.395 5. 10 0.617 6. 12 0.888 7. 16 1.58 8. 18 2.00 9. 20 2.47 10. 22 2.98 11. 25 3.85 12. 28 4.83 13. 32 6.31 14. 36 7.99 15. 40 9.85 16. 45 12.50 17. 50 15.42 18. 56 19.30 19. 63 24.50 20. 71 31.10 21. 80 39.50 22. 90 49.90 23. 100 61.70 ----------------------------------------------------------------------------------------------------

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ANNEXURE-III

ANNEXURE-III OF SPECIAL CONDITIONS OF CONTRACT

REQUIREMENT OF THE CONTRACTOR AT SITE The contractor may state his requirements against each of the following : 1 LAND : Area required for : i) Site for fabrication yard … _______________________ Sq.m ii) Site for offices/Stores … ________________________ Sq.m

Page 32

ANNEXURE-IV(A)

E S C A L A T I O N 1. PRICE VARIATION DUE TO CHANGE IN LABOUR WAGES: Price variation due to change in Labour Wages shall be applicable as per formula given below: V = (0.30 x W x (X - X0) X0 Where: V = Escalation or de-escalation payable or deductable

W = Gross value of work done on the basis of contract rates for the period for which variation is applicable.

X = Average or revised minimum rates of wages of Skilled, Semi-

skilled and Un-skilled workers applicable for the area of site of work as per minimum rates of wages as notified by Commissioner of Labour, Andhra Pradesh, Hyderabad, published in the Andhra Pradesh Gazette for the period under consideration.

X0 = Average of minimum rates of wages of Skilled, Semi-skilled and

Un-skilled workers on the base date (ie., the date of opening of Envelope-I containing Prequalification criteria, EMD etc.) applicable for the area of site of work as per minimum rates of wages as notified by Commissioner of Labour, Andhra Pradesh, Hyderabad, published in the Andhra Pradesh Gazette.

CLARIFICATION:

In case of revision of wages with effect from any date in a month, say November,2005, the work done with effect from the first day of subsequent month (ie., 1st December,2005) only will qualify for price variation as per the above formula.

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ANNEXURE-IV(B)

E S C A L A T I O N

III. PRICE VARIATION DUE TO CHANGE IN POL PRICE: Price variation due to change in POL prices shall be applicable as per formula give below: V = 0.05 x W x (R - R0) R0 Where:

V = Escalation or de-escalation payable or deductable

W = Gross value of work done at the Contract Rates for the period for which variation is applicable.

R = Revised rate of High Speed Diesel Oil per litre as fixed by IOC

applicable for the area of site of work for the period under considerations.

R0 = Rate of High Speed Diesel Oil per litre as fixed by IOC

applicable for the area of site of work on the base date (i.e., the date of opening of Envelope-I containing Prequalification criteria, EMD etc.).

CLARIFICATION: i) In case of revision of rates of High Speed Diesel Oil with effect from any

date in a month, say November, 2005, the work done with effect from the first day of subsequent month (ie., 1st December, 2005) only will qualify for price variation as per the above formula.

ii) In case of more than one revision in the rate of High Speed Diesel Oil, in a

month, the latest revision in the rates shall be considered for payment of escalation.

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ANNEXURE-IV(C) III. PRICE VARIATION OF MATERIALS : Price variation due to change in Price of Materials shall be applicable as per formula give below: V = 0.50 x W x (X - X0) X0 Where:

V = Escalation or de-escalation payable or deductable

W = Gross value of work done at the Contract Rates for the period for which variation is applicable.

X = RBI Index No. of all commodity whole-sale price index (average

of month) for the period under consideration.

X0 = RBI Index No. of all commodity whole-sale Price Index as on the month which is date of opening of Part-I bid.

CLARIFICATION: i) In case of revision of rates of materials with effect from any date in a

month say April,99. The work done with effect from subsequent month (i.e., May,99) only will qualify for price variation as per the above formula.

ii) In respect of price variation for materials, it is clarified that the variation

(escalation/de-escalation) in respect of items for which materials advance is claimed the variations shall be calculated and paid considering the date of purchase of such items as per copies of Invoice and such advances shall be deducted in arriving at the value of the work qualifying for variation (escalation/de-escalation) on account of materials in the running bills.

Page 35

ANNEXURE-V

FORMAT FOR e-PAYMENT

BANK ACCOUNT DATA FOR e-PAYMENT

1. Option : EFT/Direct Credit 2. Name & type of A/c : (30 characters, alpha Numeric, Space

permitted) 3. Account Number : (15 characters, Alpha Numeric) 4. Account type : (Numeric codes shown below) 10 Savings Bank SB 11 Current Account CA 13 Cash Credit CC 14 Loan Account LA 5. Bank Name : 3-Digit MICR Code: 6. Branch Name : 3-Digit MICR Code: 7. City : 3-Digit MICR Code:

Signature of the Tenderer Name: Desgn:

Seal: ---------------------------------------------------------------------------------------------------

CERTIFICATE

Certified that the above particulars are matching with our records in respect of the above firm.

Sd/-………………… Authorised signatory of the Bank

Bank Seal

Note: Details of EFT/Direct Credit are at overleaf.

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DETAILS OF EFT/DIRECT CREDIT

EFT System: Under this system Banks offer their customers money transfer service from account of any bank branch to any other Bank Branch. The EFT system presently covers all the branches of about 77 banks located at 15 centres indicated below, where clearing houses are managed by RBI ie., 1) New Delhi 2) Chandigarh 3) Kanpur 4) Jaipur 5) Ahmedabad 6) Mumbai 7) Nagpur 8) Hyderabad 9) Bangalore 10) Chennai 11) Trivendrum 12) Kolkata 13) Bhubaneswar 14) Guwahati 15) Patna. Direct Credit: Contractors opting for this system may open Bank Accounts with any one of the following banks: a) State Bank of India - Steel Plant Branch b) Canara Bank - Steel Plant Branch c) Bank of Baroda - Steel Plant Branch d) State Bank of Hyderabad - Steel Plant Township Branch e) Andhra Bank - Steel Plant Township Branch f) UCO Bank - Steel Plant Township Branch g) IDBI - Visakhapatnam Branch

e-Payment Furnishing Bank Account Date for e-payment The successful tenderer is to submit the Bank Account details for e-payment as

per enclosed format at Annexure, duly certified by authrised signatory of Bank. Tenderers are requested to sign the blank format as above for e-payment in token

of acceptance of e-payment. In respect of payment made through Electronic Fund Transfer mechanism or

Direct credit to the supplier’s/contractor’s bank account, the supplier/contractor/receiver should intimate discrepancies, if any, within 10 days from the date of dispatch of intimation letter of payment to them, failing which it shall be presumed that the funds have reached to their bank account and that no claims will be entertained after the said 10 days.