Liquidated damages and delay exposure
LD at 0.1% of remaining value of contract works per day (min Rs. 10,000/day), capped at 10% of Initial Contract Price; delay reaching max LD is a fundamental breach enabling termination.
- LD expressly agreed as genuine pre-estimated loss, not penalty.
- 12-month completion on a large special-repair + road-safety package in Tripura hill terrain is schedule-critical.
No price escalation + fixed rates
Quoted rates fixed for Contract duration; GCC expressly disallows price adjustment/escalation — input-cost (bitumen, cement, steel, fuel) risk sits fully with the Contractor over 12 months + 36-month DLP interface.
Budgetary quantity reduction and work-order based execution
Employer may reduce measurable quantities to any extent for budgetary reasons without contractor claims; Engineer issues staged work orders — revenue and plant utilisation are not guaranteed at full BOQ value.
- Lump-sum items paid only up to quoted lump sum subject to meeting maintenance requirements.
Stacked securities: EMD, 3% PS (+ unbalanced add-on), 5% retention
Cash/BG lock-up is heavy: Rs. 1.4407 Cr EMD through award, then 3% PS (more if bid is unbalanced) held through 36-month DLP (+ validity tail), plus 5% retention from each bill unless replaced by BG.
- Failure to furnish PS within 10 days of LOA voids the award.
- Interest-bearing mobilisation advance (up to 10%) must be taken before 2nd RA bill and fully recovered with SBI PLR interest within ten months.
Long Defects Liability Period and defect damages
36-month DLP from Completion Date; uncorrected defects: Employer may recover assessed correction cost plus 20% damages; maintenance-standard non-compliance attracts Part-I damages/payment reduction.
- Works must need no major repairs during DLP after completion.
Personnel / equipment / programme non-compliance penalties
Failure to deploy named technical personnel within 15 days of notice to proceed: Rs. 5,000/day/person for next 30 days, then fundamental breach; non-deployment within 45 days is also fundamental breach; delayed updated programme withholds 1% of corresponding work value; missing O&M manuals withholds Rs. 5 lakh.
- Conditional or inadequate equipment proof / CV shortfalls make bid non-responsive at evaluation stage.
- Subcontracting limit NIL increases self-performance/resourcing risk.
Termination and employer completion cost
On contractor fundamental breach, Employer recovers 20% of value of work not completed as additional cost and may forfeit Performance Security; broad fundamental-breach list includes insurance failure, lab setup delay, personnel delay, security deposit default, max LD, and labour-law breaches.
- Employer may also terminate for convenience.
- Bid Security forfeiture + MoRTH debarment risk on post-bid withdrawal or failure to sign/furnish PS.
Site, insurance and safety liabilities
Contractor bears essentially all non-Employer risks of loss/damage/injury; must maintain joint-name insurances from Start Date through DLP for works, equipment, property, third party, auto, workers’ compensation and employer’s liability at Contract Data sums; full traffic-safety and PPE responsibility.
- Site investigation report: NIL in Contract Data — bidder relies on own site visit at own risk.
- Insurance amounts: (a) Contract Price; (b) 5% Contract Price; (c) 5% Contract Price; (d) Rs. 20 lakh for multiple incidents.
Make in India evaluation and bid-capacity refresh
Class-I suppliers within 20% of L1 get purchase preference to match L1; bid capacity is re-checked as on the day before financial bid opening including works where bidder only emerged winner — late LOAs elsewhere can knock out an otherwise qualified bidder.