DGR TENDER SRINAGAR DEPOT MAY 25- APRIL27

NOTICE INVITING TENDER

REQUEST FORR QUOTATION CRFQ -

REQUEST FORR QUOTATION CRFQ -

BHARAT PETROLEUM CORPORATION LIMITED,

LOCATION INCHARGE

Sempora Balhama Srinagar

PROVIDING SECURITY SERVICES

AT BPCL SRINAGAR DEPOT

NIT-Providing Security Services at BPCL Srinagar Depot CRFQ No.-

NOTICE INVITING TENDER – PROVIDING SECURITY SERVICES AT BPCL

ISSUED BY: - LOCATION INCHARGE

BHARAT PETROLEUM CORPORATION LIMITED

SEMPORA ZAFFRON COLONY SRINAGAR

TABLE OF CONTENTS

1) Annexure I- Scope of Work

2) Annexure II – GENERAL CONDITIONS OF CONTRACT (GCC)

3) Annexure III- Integrity Pact

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BPCL is having its Petroleum Oil Depot at Sempora Srinagar and company is naturally

concerned about the said property and wants to ensure its safety and security thereof.

1. The security agency is to be engaged in the business of safeguarding property

(both movable and immovable) round the clock as mentioned above for a period of

1.1. All property ( both movable & immovable ) situated at above places will be

secured round the clock and the schedule for security personnel for guarding the site

would be as below :-

Sr. No. Name of The Security Security Security

Location Guard Gunmen Supervisor

1 Srinagar POL Depot 13 0

1.2. The actual deployment of number of Supervisor/Guard/Gunman in the shifts

will be decided by the Concerned officer and Company will make payment for the

above numbers of Security personnel.

1.3. All security Guards Armed/Unarmed/Supervisor should be Ex-servicemen and

proof for this should be given to us before deployment.

2. WORKING HOURS:

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Except in case of different strength of guards required in different shifts, which would

be separately advised in writing, services are required on round the clock basis on

hours a day duty Rota, including all Sundays and holidays. Relievers will have to be

arranged by it against leave, absence etc. Extra working hours of Supervisors/Guards

would be avoided. Any overtime duty, prior permission to be taken from concerned

officer. OT will be permitted in case of extreme emergency only.

3. THE FIRM SHALL GIVE AN UNDERTAKING THAT FOR THE PURPOSE OF CARRYING OUT

IT’S OBLIGATIONS:

3.1. It shall not allow any unauthorized person inside the premises.

3.2. The Agency will provide full security and safety of the valuable property of the

Company such as Motor Sprit, High Speed Diesel, Lubricants, Pump machinery,

Generator sets, Air Compressor etc and also of the vehicles of the customers parked

within the said premises. The firm will provide additional security guards, Gunmen

and/or Supervisors to the company as & when so required by the company. The

payment in respect of such additional staff shall be made on the same basis as

mentioned in the agreement.

3.3. The firm will ensure that the security guards/Gunmen/Supervisors deployed

shall have suitable qualifications, sufficient experience & good personality.

3.4. On the advice of the concern officer to remove any of it's {viz. Firm's}

employee from company's premises mentioned above.

3.5. It will also be required to make payment of EPF to its staff as per EPF Act

Payment of bonus as per bonus Act and it will maintain all records in accordance with

Contract Labor Act, Factory act as applicable & indemnify against the legislations

which the corporation may be called upon to make under the provisions of these Acts.

3.6. It will be responsible for making payment of salaries & other payments to its

3.7. The firm shall maintain regularly, punctually & faithfully the attendance

register of the employees deployed by it in the Company's premises showing therein

the persons attending their duties and the FIRM shall produce the register as & when

so required by the company.

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3.8. The firm will also ensure that the staff while deployed in the Company's

premises shall wear uniform approved by the company. In addition, the staff deployed

would also carry lathi/or Gun etc as specified. The Firm shall also ensure that the

uniforms are neat & clean. The company shall not be liable to pay for these uniforms.

3.9. In case of non-compliance of any contractual obligation (s) and / or in case of

any damages, breakages (other than normal wear and tear) or loss of property or theft

in the said premises or fittings or assets and equipments and / or burglary in the office

/ common facilities which is attributable to the security agency representatives/

employee or due to their negligence, the security agency shall indemnify the BPCL

after joint enquiry for any loss or damage that may be caused to the company on

account of negligence of the personnel posted at the said premises. Under such

circumstances, the security agency shall be responsible for repairing/ replacing the

same and making good the loss at their cost failing which, the actual cost

incurred towards repair/replacement shall be imposed on the security agency

3.10. The security agency will ensure that he or his partners (if is a partnership firm)

or his employees, representatives, agents shall not smoke or carry matchboxes,

mechanical lighters etc. inside the BPCL premises and would ensure that their

employees do not smoke and do not use tobacco in the site or within the safety

distance limits.

3.11. Proper and thorough frisking of all people entering in the BPCL premises

should be ensured by security agency. And agency shall be responsible for not to carry

any match box, metallic things, mobiles, tape recorders, weapons, any other

electronic/ electrical gadget inside BPCL premises from any visitors, guests,

contactors, contactor workmen, tank lorry drivers, cleaners etc.

3.12. The agency will ensure to safeguard the said premises its property (both

moveable and immoveable) situated at all locations.

3.13. It shall maintain liaison with the local police authorities & with the permission

of the Plant In-charge to report any untoward incident to the local police & to pursue

such complaint with the Police authorities.

3.14. To carry out complete vigilance of the premises and to attempt to thwart any

attempt of forcible intrusion into the Location premises.

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3.15. It shall maintain a record of men, material, vehicles etc. coming in and/or going

out of the Plant and observe the rules and regulations framed by the Location In-

charge in respect of entry/exit to the location.

3.16. It shall check the In/Out going material & ensure that the same is taken In/Out

only with the required gate-pass & to complete In/Out register at Main Gate as per

Plant requirement.

3.17. It shall check, frisk, control & search the staff of the company as well as of the

contractors/visitors at the time of their entry & departure from the Plant.

3.18. It shall keep Vigilance inside & outside the boundary of the Plant.

3.19. It shall ensure the safety & security of Property of the corporation.

3.20. To maintain record of the gate passes issued to visitor/contractor & their staff

coming in/ out of gate during the shift hours & showing it on daily basis to the

assigned Officer.

3.21. In case, any of the supervisors/guards/armed guards is found indulging in any

act of misconduct in the opinion of Plant In-charge, he should be dismissed from the

services and in extreme conditions, the individual will be dismissed from the firm as

well and in such case, the firm will submit the proof of dismissal of that individual to

3.22. It shall ensure practice of all safety measures evolved from time to time as per

the corporation's Policy.

3.23. It shall introduce & implement anti-theft gadgets and to check pilferage.

3.24. It shall maintain a log book where detailed events/ observations of the

guards/supervisors will be recorded and submit the same to the Plant In-charge.

3.25. It shall attend the telephone calls while the office is closed and convey all

messages to the concerned officials.

3.26. It shall carry out the instructions of the assigned officers without any dilution.

3.27. The firm shall, also ensure that the staff deployed at the company's premises

will be fully trained in firefighting equipments as and when so required. The firm shall

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maintain a register of the training in firefighting imparted by it to its staff from time to

time. BPCL may also ask registers/log books related to firefighting system.

3.28. It shall lock & open all office rooms, switch off lights and air conditioners,

heaters room, coolers & close the water taps etc. & all other electrical gadgets after

office timings.

3.29. It shall carry out any other task necessary in the interest of security of the

3.30. It shall keep all the stores closed & arrange issue of materials against

authorized issue form only. Incoming material also to be counted & records to be

maintained as per the requirement.

3.31. Security agency shall be fully responsible for the verification of the reliability of

each individual deployed by it in the Company's premises. Police verification is

mandatory for all employees deployed by security agency. Proof of police verification

shall be submitted at location.

3.32. Security agency shall also be responsible for the good conduct of the personnel

deployed by it in the Company's premises and they shall not consume alcohol and

Smoke while in the Company's premises (as well as on duty) and shall not come to the

Company's premises after consuming alcohol (also any other kind of banned drugs). In

such cases, the individual should be dismissed from the services and in extreme cases

from the firm as well, the firm will submit the proof of dismissal of that individual to

3.33. The Agency shall also be under obligation to deduct, contribute and deposit

towards EPF and ESI contributions for all the contract labor (s) engaged by it. The

Agency shall submit proof of such deposition in the form of attested copies of Form 6A

(EPF-Annual return) by 30th April of the year and Form 6 (ESI - six-monthly returns) by

31st May and 30th November. The bill towards service charges for services rendered

during a month should be submitted along with proof of submission of challan

towards EPF and ESI contributions for the previous month. Any short payment noticed

during the course of the contract shall be made good by the Agency, and the

Corporation reserves its right to deduct any such amount equivalent to such short

payment from the security deposit, in case of failure on part of the Agency to make

good the default. Security agency to comply with all statutory Rules, Regulations

including Employees State Insurance Act, Employees provident Fund (And

Miscellaneous Provisions ) Act, Minimum wages Act, Contract Labor ( Regulation &

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Abolition ) act 1970, Payment of Bonus Act etc. as applicable and shall pay wages as

prescribed by DGR to the employees deployed by you in the BPCL premises.

3.34. To indemnify the corporation against consequences arising out of it's

workmen's default or negligence or violations of the rules applicable to the place of

work. It shall observe & comply with the requirement of the minimum wages act, EPF

Act, the ESI act and all other industrial/labor Legislations being in force or may later be

brought into force governing the relationship between the employer & the employee

& keep the corporation indemnified against all claims, payments, losses that

corporation may have to make or suffer on account thereof. It will also accept liability

for payment of compensation in accordance with the provisions of the workmen's

compensation Act 1926 read with ESI Act 1946 or amendments thereafter & keep the

corporation indemnified from & against all payments by way of compensation or

otherwise which the corporation may be called upon to make under the provisions of

the said act to ant such workmen as aforesaid and any expenses incurred by the

corporation in connection with any claim preferred by it's workmen and/or against all

actions, claims & demand whatsoever in respect thereof or in respect of any loss,

injury or damages whatsoever to any third person caused by it's workmen.

3.35. Ensure to rotate the security staff regularly.

3.36. In case any of Supervisors/Security Guards are found violating the instructions

of Location in-charge or their services found unsatisfactory, they would be discharged

then and there from the Location. Such man should not be redeployed at any of our

3.37. Any deviation from the instructions issued by the Concern officer or in case of

any deviation observed from the contract terms & conditions, the contract shall be

terminated with immediate effect and without any notice.

3.38. If at any time during the period of contract, it is observed by the Company, or

its authorized representatives that the services rendered by the Firm are not to the

satisfaction of the Company or any terms of the agreement are violated, the company

with its sole discretion has right to terminate the contract without any notice to the

3.39. All payments will be made through NEFT only after verification of the bill and

no payment will be made through any cheque or demand draft.

3.40. That the Firm shall submit bill every month and each bill shall be submitted on

or before 7th day of the succeeding month and the company shall make payment

thereof within a period of two weeks on receipt of such bill.

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3.41. It shall maintain a key register and ensure that the keys of the facilities in

common area and such other gates or lockable spaces provided under their

supervision and control, are stored in safe custody by its personnel. It shall also ensure

that details about the movement of such keys are properly recorded in the key

3.42. The Firm shall strictly comply with all the guidelines of Directorate of

Employment, Directorate General Resettlement, Ministry of Defence for sponsoring

and operating of security agencies and related activities.

3.43. The Firm shall deploy adequate number of personnel to discharge its obligation

under this agreement and would have to arrange for relievers against leave absence,

extra /extended working hours. However extra /extended working hours shall be done

only in cases of extreme exigency, with prior intimation, keeping in mind the

sensitivity of the said premises.

3.44. The strength of personnel can be increased/ decreased subsequently, if the

Firm so desires, with prior approval of the Company through its authorized

representative. The payment in respect of such increase / decrease in personnel shall

be made as applicable.

3.45. The Firm shall be responsible for the good conduct of its personnel deployed

by it in the said premises and shall rotate the postings of its personnel regularly. It

would be the responsibility of the Firm to check the character and antecedents of its

personnel and ensure that its representatives are having experience in such

surveillance activities and for the same it would engage and deploy only Ex-

servicemen personnel.

3.46. The Firm shall indemnify the Company against the consequences arising out of

its personnel's default or negligence or violations of the rules applicable to the place

3.47. The Firm shall observe and comply with the requirements of the Minimum

Wages Act, the ESI Act, the EPF & MP Act,

3.48. Workmen Compensation Act and all other Industrial / Labor Legislations (for

the time being in force and as amended from time to time) governing the relationship

between the Firm and its employees and keep the Company indemnified against all

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claims, payments, losses, damages or levies etc. that the Company may have to suffer

on account therefore.

3.49. That the Firm shall also accept and indemnify the Company against any liability

for payment of compensation arising under the Workmen's Compensation Act or

otherwise which the Company may be called upon to make good under the provisions

of the said Act or any other Act for the time being in force, to any such personnel of

the firm on account of death or any injury sustained or claim arising from permanent

disablement of the personnel during the course of employment and also indemnify

the Company for any expenses incurred by the Company in connection with any claim

preferred by its personnel and/or against all actions, claims and demand whatsoever

in respect thereof or in respect of any loss, injury or damages whatsoever to any third

person caused by its personnel.

3.50. The Firm shall also be required to comply with the provisions of Contract Labor

(R&A) Act, 1970 for the time being in force and as amended from time to time and it

shall maintain all records in accordance with the said Act, as applicable and indemnify

the Company against any claim or fine or levy or interest etc that it may be called

upon to sustain/ pay under the provisions of the said Act. As and when necessary, the

Firm shall obtain necessary licenses /permits as required under the Contract Labor

(Regulation & Abolition Act, 1970) or such other laws as applicable and produce the

same to the authorized representative of the Company as and when called upon for.

3.51. The Firm shall be responsible for making payment of salaries and such other

payments to its personnel as per the rates applicable and as per guideline of the DGR.

The Firm shall maintain an attendance register of its personnel deployed at the said

premises under its control and supervision and produce the register and such other

records/ registers / documents as and when required/ called for by the Company or its

authorized Officials.

3.52. The strategic points where surveillance personnel are to be deployed would be

discussed and decided by the Firm in consultation with the Company through its

authorized representative and the Firm shall ensure that the required personnel are

strictly deployed at those strategic points. If the need arises, these strategic points

may be changed by the Firm, with prior approval of the Company through its

authorized representative.

3.53. In case of any loss/ theft/ burglary of the property of the Company in the said

premises, the Firm and the Company would have a joint enquiry consisting of

representatives of the Firm and of the Company. The Firm shall have to depute its

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special investigator at its own cost to conduct preliminary enquiry to fix / apportion

blame and responsibility to make good the loss.

3.54. In case of any FIR with the police as and when the need arises and the Firm

shall provide all necessary cooperation, documents, materials required and help, for

lodging the FIR.

3.55. In case of noncompliance of any contractual obligation(s) and/or in case of any

damages, breakage or loss of property or theft, vehicles parked in the said premises or

fittings, assets and equipment and /or burglary in the offices/common facilities which

is attributable to the personnel deployed by the Firm or due to their negligence, the

Firm shall indemnify the Company after joint enquiry for any loss or damage that may

be caused to the Company on account of negligence of the personnel posted at the

said premises. Under such circumstances, the Firm shall be responsible for repairing/

replacing the same and making good the loss at their cost failing which the actual cost

incurred towards repair/ replacement shall be imposed on the Firm by the Company.

3.56. That the Firm would under no circumstances sub-let or sub-contract its

obligations responsibilities under the present agreement to any other body or person

for rendering the Surveillance and caretaking services at the said premises.

3.57. The contract shall be valid for a period of two years w.e.f. 01.05.2025 (00:00

Hrs) to 30.04.2027 (23:59 Hrs.). All payments will be made on monthly basis by means

of NEFT on production of Bill along with attendance sheets and such other records

returns or documents called for which should be duly verified by the authorized

representative of the Company. The bill shall not be honored for payment without the

verification of the concerned authorized representative of the Company.

3.58. BPCL reserve the right to terminate the contract any time before expiry of the

period of contract by giving the security agency one month advance notice in writing

without assigning any reason whatsoever.

3.59. Due to any policy decisions or otherwise, BPCL on its sole discretion can

terminate the contract without assigning any reason.

3.60. The BPCL at its sole discretion may reject the quotations without assigning any

3.61. All legal disputes arising out of this contract shall be settled as per arbitration

of company policy.

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4. OTHER COMMITMENTS OF THE FIRM:

4.1. We shall not be liable to pay any damage or compensation for any death

or injury caused to the person (s) engaged by you for the above job either under the

Workmen’s compensation Act or Act in force at that time and you agree to

indemnify us against all such claims.

4.2. Security agency would be liable to pay the required minimum wages, ESI under

the Contract Labor Act/ Minimum Wages Act and as applicable service tax. The entire

statutory requirement as per Minimum Wages Act, EPF Act, Labor Laws and other

applicable acts from time to time are to be adhered by you. The contractor

shall submit a copy of the appointment letter (issued to the employees deployed by

him at the Company’s premises) and maintain regularly, punctually and

faithfully an attendance register of the employees deployed by it in

the Company's premises showing therein the person's attending their duties and other

registers and records as required under different laws. The security agency shall

produce the registers as and when required by the company.

4.3. The security agency shall observe and comply with the requirements of

the Contract Labor (R&A) Act, Minimum Wages Act, the ESI Act, the EPF & MP Act,

Workmen compensation Act and all other Industrial /

Labor Legislation (for the time being in force and as amended from time to

time) governing the relationship between the Contractor and its employees and keep

the BPCL indemnified against all claims, payments, losses, damages or levies etc. that

the BPCL may have to suffer on account thereof.

5. NO OF PERSONS TO BE EMPLOYED:

Total no. of persons to be employed will be as per the minimum requirement of the

company & will be in mutual agreement with the firm. The tentative number for

regular placement will be as below:

Sr. No. Name of The Security Security Security

Location Guard Gunmen Supervisor

1 Srinagar POL Depot 13 0

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6. In the case of additional requirement due to the unforeseen situations, Company may

advise the Firm in advance.

7. CONTRACT VALIDITY: Unless otherwise specified contract will be valid for a period of

two years w.e.f 01.05.2025 to 30.04.2027

8. Final quoted prices as recorded in the statement are subject to change due to

arithmetical/totaling and calculation errors and loading if any, after completion of

detailed evaluation statement.

9. Firm has to submit affidavit mentioning all the governing terms and conditions

10. Following document is to be enclosed along with the tender documents failing which

your offer will be disqualified.

a) DGR registration Certificate.

b) Details of P F Number & its certificate

c) ESI no. & Details

d) Income tax Clearance certificate

e) Details of GST

f) Experience and Name of the Establishment where party is engaged for the security

services alone with the detailed address & Tel nos.

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GENERAL CONDITIONS OF CONTRACT (GCC)

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BHARAT PETROLEUM CORPORATION LIMITED

SECTION DETAILS

I DEFINITION OF TERMS

II GENERAL INFORMATION ABOUT SITE

III GENERAL INSTRUCTION FOR THE TENDERER

IV INTERPRETATION OF CONTRACT DOCUMENTS

V PERFORMANCE OF WORK

VI BILLS / MEASUREMENT / PAYMENT

VII TAXES AND DUTIES

VIII LABOUR LAWS AND OTHER REGULATIONS

IX VARIOUS PROFORMA

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GENERAL CONDITIONS OF CONTRACT

DEFINITION OF TERMS

In the contract documents as herein defined where the context so admits, the following

words and expressions will have following meanings:

1) “The Owner/Company/BPCL” means the Bharat Petroleum Corporation Limited,

incorporated in India having its registered office at 4 & 6, Currimbhoy Road, Ballard Estate,

Mumbai - 400 038 or their successors or assigns

2) “The Contractor” means the person or the persons, firm or Company whose tender

has been accepted by the Owner and includes the Contractor’s legal representative, his

successor and permitted assigns.

3) The “Managing Director” shall mean the Chairman and Managing Director of the

Bharat Petroleum Corporation Limited or his successor in office designated by the Owner.

4) The “Engineer-in-Charge” shall mean the person designated as such by the Owner

and shall Include those who are expressly authorized by the Owner to act for and on his

behalf for operation of this contract.

5) The “Work” shall mean the works to be executed in accordance with the contract or

part thereof as the case may be and shall include extra, additional, altered or substituted

works as required for purpose of the contract.

6) The “Permanent Work” means and includes works which will be incorporated in and

form a part of the work to be handed over to the Owner by the Contractor on completion of

7) The “Construction Equipment” means all appliances, Tools/Tackles and equipment

of whatsoever nature for the use in or for the execution, completion, operation or

maintenance of the work unless intended to form part of the Permanent work.

8) The “Site” means the areas on which the permanent works are to be executed or

carried out and any other places provided by the Owner for purpose of the contract.

9) The “Contract Document” means collectively the Tender Document. Designs.

Drawings or Specifications, agreed variations, if any, and such other document constituting

the tender and acceptance thereof.

10) The “Consultant” means the consulting engineers Nominated/appointed by the

Owner for this Project / job.

11) The “Sub-Contractor” means any person or firm or Company (other than the

Contractor) to whom any part of the work has been entrusted by the Contractor, with the

written consent of the Engineer-in-Charge, and the legal personal representatives,

successors and permitted assigns of such person, firm or company.

12) The “Contract” shall mean the Agreement between the Owner and the Contractor

for the execution of the works including therein all contract documents.

13) The “Specification” shall mean the various technical specifications attached and

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referred to in the tender documents. It shall also include the latest editions, including all

addenda/corrigenda, of relevant Indian Standard Specification, specifications of the other

country published before entering into Contract.

14) The “Drawings” shall include maps, plans and tracings or prints thereof with any

modifications approved in writing by the Engineer-in-Charge and such other drawings as

may, from time to time, furnished or approved in writing by the Engineer-in-Charge.

15) The “Tender” means the tender submitted by the Contractor for acceptance by the

16) The “Alteration Order” means an order given in writing by the Engineer-in-Charge to

effect additions to or deletion from and alterations in the works.

17) The “Completion Certificate” shall mean the certificate to be issued by the Engineer-

in-Charge to the contractor when the works have been completed to his satisfaction.

18) The “Final Certificate” in relation to a work means the certificate issued by the

Engineer-in-Charge after the period of liability is over for releasing the retention

19) The “Period of Liability” in relation to a work means the specified period during

which the Contractor stands responsible for rectifying all defects that may appear in the

GENERAL INFORMATION ABOUT SITE

2.1 LOCATION OF SITE & ACCESSIBILITY:

The site location is described in the Special Conditions of Contract. The intending tenderer

should inspect the site and make himself familiar with site conditions and available facilities.

Entry into the BPCL areas is restricted depending on location/site. Only pass holders as also

vehicles with special permits are permitted in such restricted areas. Inside the premises

access to various work spots is also further regulated by permits issued for each area. Non-

availability of access roads or permits for entry of vehicles/equipment to any specific area

shall in no case be the cause to condone any delay in execution of works or be the cause for

any claims or extra compensations.

2.2 SCOPE OF WORK:

The scope of work is defined in the Special Conditions of Contract and specifications. The

Contractor shall provide all necessary materials, equipments / Tools and Tackles /

Supervision / labour etc. for the execution and maintenance of the work till completion

unless otherwise mentioned in these tender documents. All materials that go with the work

shall be approved by Engineer-in-Charge prior to procurement and use.

2.3 LAND FOR CONTRACTOR’S FIELD, GODOWN AND WORKSHOP:

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The tenderer should visit the site and acquaint himself with site conditions, availability of

water, electricity, approach roads, construction materials as per specifications, shelter for

his staff, etc. since these are to be provided/arranged by the tenderer (unless otherwise

specified) at his cost. The owner will, at his discretion and convenience based on availability

for the duration of the execution of the work, make available, land for construction of

contractor’s field office, go-downs, workshop and fabrication yard required for the

execution of the contract. The contractor shall at his own cost construct all these temporary

buildings and provide suitable water supply and sanitary arrangement approved by the

Engineer-in-Charge.

On completion of the works undertaken by the Contractor, he shall remove all temporary

works/ shed erected by him and have the site cleaned as directed by Engineer-in-Charge if

the contractor shall fail to comply with these requirements, the Engineer-in-charge may at

the expenses of the Contractor remove such surplus and rubbish material, dispose off the

same as he deems fit and get the site cleared as aforesaid; and the contractor shall

forthwith pay the amount of all expenses so incurred and shall have no claim in respect of

any such surplus materials disposed off as aforesaid. But the Owner reserves the right to ask

the Contractor any time during the pendency of the contract to vacate the land by giving

seven days notice on security reasons or on material interest otherwise.

2.4 SAFETY STANDARDS FOR TEMPORARY BUILDINGS:

All temporary buildings, sheds, workshops, field stations etc. shall be constructed in

conformation with the safety and security regulations of the owner as regards location and

type of structure.

GENERAL INSTRUCTION FOR THE TENDERER

3 SUBMISSION OF TENDER:

3.1 The quotation should be submitted only in the manner and the form prescribed in

the Request for Quotation (RFQ)/Tender enquiry.

3.2 Addenda/Corrigenda to this tender document if issued must be signed and

submitted along with the tender document. The tenderer should consider the

Addenda/Corrigenda and should price the work based on revised quantities when

amendments for quantities are issued in addenda.

3.3 Instructions for two-part bidding (If Applicable)

i) The bid should be submitted in two parts viz.

a. Techno-commercial bid.

ii) Techno-commercial bid shall have the following information/details

a. Technical deviation if any.

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b. Commercial deviation if any like extra taxes, duties etc.

c. Copy of price bid with prices blanked off.

d. Any other relevant information.

iii) Price Bid shall have only prices as per schedule of Rates.

iv) Techno-commercial bid and price bid shall be enclosed in two separate envelopes

with the subject job, type of bid, bidders name super-scribed on top. Both these envelopes

shall be sealed in a common envelope and submitted as specified above and in covering

letter. (This will not be applicable in the case of e-tenders)

4.1 The tenders, as submitted shall include all documents/details asked for by BPCL in

the RFQ/Tender enquiry.

4.2 All pages to be initialed:

Wherever signed tender documents are submitted, all signatures in the documents shall be

dated, as well as all the pages of the documents shall be initialed at the lower right-hand

corner and signed wherever required in the tender papers by the tenderer or by a person

holding power of attorney authorizing him to sign on behalf of the tenderer before

submission of tender. Tenders without signatures as stated above are liable to be rejected.

4.3 Rates to be in Figures and Words:

The tenderer should quote the rates in English both in figures as well as in words. Offers

received without the rates in figures and in words are liable for rejection. In case of

discrepancy exists between the rate quoted in figures and in words, the rates quoted in

words will prevail.

4.4 Corrections and Erasures:

All corrections and alteration in the entries of tender papers will be signed in full by the

tenderer with date. No erasures or over-writings are permissible.

In case of priced bids containing overwriting/cuttings/erasures in the quoted rates and in

case these are not attested by the signatory of the bid, such priced bids are liable to be

rejected without giving any further notice.

4.5 Signature of Tenderer:

The tender shall contain the name, residence and place of business of person or persons

making the tender and shall be signed by the tenderer with his usual signature with

company stamp. Partnership firms shall furnish the full names of all partners in the tender.

It should be signed in the partnership name by all the partners or by duly authorized

representative followed by the name and designation of the person signing with company

Tender by Company or Corporation registered under the relevant companies act, shall be

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signed by the authorized representative and a power of attorney in that behalf shall

accompany the tender.

4.6 Transfer of tender documents issued to one intending tenderer to another is not

5 PURCHASE PREFERENCE:

Owner reserves its right to allow Public Sector Enterprises (Central/State), purchase

preference as admissible/applicable from time to time under the existing Govt. policy.

Purchase preference to a PSE shall be decided based on the price quoted by PSE as

compared to L1 Vendor at the time of evaluation of the price bid.

Owner reserves its right to allow Micro and Small Enterprises (MSEs) and MSEs owned by

Scheduled Caste (SC) or the Scheduled tribe (ST) entrepreneurs, purchase preference as

admissible/applicable from time to time under the existing Govt. policy. Purchase

preference to a MSE and a MSE owned by SC/ST entrepreneurs shall be decided based on

the price quoted by the said MSEs as compared to L1 Vendor at the time of evaluation of

6 (a) EARNEST MONEY:

The tenderer must submit/ deposit earnest money, if specified in the RFQ/Tender enquiry,

failing which the tender is liable to be rejected. The earnest money can be deposited in the

form of Demand Draft or Bank Guarantee in favor of Bharat Petroleum Corporation Limited.

Earnest Money deposit (EMD) is not applicable for registered contractors of BPCL.

NOTE: The Bank Guarantee so furnished by the tenderer shall be in the proforma prescribed

by the owner. No interest shall be paid by the Owner on the earnest money deposit by the

tenderer. The earnest money of the unsuccessful tenderer will be refunded.

(b) SECURITY DEPOSIT:

Unless otherwise specified in the special conditions of contract, in the case of contractors

not registered with BPCL, the earnest money deposit (EMD), of the contractor whose tender

may be accepted, will be converted to security deposit for due performance of the contract.

The “performance security deposit/retention money” vide clause 18 shall also be applicable

limiting to a maximum of 10% of the contract value.

Tender submitted by tenderers shall remain valid for acceptance for a period of four

months from the date of opening of the tender (Technical Bid in the case of two bid). The

tenderer shall not be entitled during the said period of four months, without the consent in

writing of the Owner, to revoke, or cancel his tender or vary the tender given or any term

thereof. In case of tenderer revoking or canceling his tender, varying any terms in regard

thereof without the consent of Owner in writing, appropriate penal action will be taken by

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BPCL as deemed fit including putting the tenderer/contractor on ‘Holiday listing’/’Delisting’

barring the tenderer/contractor from participating in future tenders for an appropriate

period from the date of revocation/cancellation/varying the terms. Further in the case of

contractors who are not registered with BPCL, the earnest money deposited by him will be

forfeited. Once the quotation is accepted the rates quoted shall be firm till the entire work

8 ADDENDA / CORRIGENDA:

Addenda/ Corrigenda to the tender documents may be issued prior to the date of opening

of the tenders to clarify documents or to effect modification in the design or tender terms.

All addenda/corrigenda issued shall become part of tender Document.

9 RIGHT OF OWNER TO ACCEPT OR REJECT TENDER:

9.1 The right to accept the tender will rest with the Owner. The Owner, however, does

not bind itself to accept the lowest tender, and reserves to itself the authority to reject any

or all the tenders received without assigning any reason whatsoever.

9.2 The whole work may be split up between two or more contractors or accepted in

part and not entirely if considered expedient.

9.3 Tenders in which any of the particulars and prescribed information’s are missing or

are incomplete in any respect and/or the prescribed conditions are not fulfilled are liable to

9.4 Canvassing in connection with tenders is strictly prohibited and tenders submitted

by the tenderer who resort to canvassing will be liable to rejection.

9.5 Tender containing uncalled remarks or any additional conditions are liable to be

10 INTEGRITY PACT (IP):

Vendors are requested to sign & return our pre-signed IP document, if applicable. This

document is essential & binding. Vendor's failure to return the IP document duly signed

along with Bid Document may result in the bid not being considered for further evaluation.

11 COLLECTION OF DATA TENDERER’S RESPONSIBILITY & TIME SCHEDULE:

The tenderer shall visit the site and acquaint himself fully of the site and no claims

whatsoever will be entertained on the plea of ignorance or difficulties involved in execution

of work or carriage of materials.

The time period allowed for carrying out the job shall be as shown in tender document.

Request for revision for time schedule after tenders are opened will not be received for

12 RETIRED GOVERNMENTS OR COMPANY OFFICER:

No Engineer of Gazetted rank or other Gazetted Officer, employed in Engineering or

Administrative duties in an Engineering Department of the States/Central Government or of

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the Owner is allowed to work as a Contractor for a period of two years after his retirement

from Government service or from the employment of the Owner without the previous

permission of the Owner. The contract, if awarded, is liable to be cancelled if either the

contractor or any of his employees is found at any time to be such a person, who had not

obtained the permission of the State/ Central Government, or of the Owner as aforesaid

before submission of tender, or engagement in the Contractor’s service as the case may be.

13 SIGNING OF THE CONTRACT:

The successful tenderer shall be required to execute an agreement in the proforma

attached with tender enquiry within a period of one month of the receipt by him of the

notification of acceptance of tender. The payment will not be processed till the time the

agreement is executed.

14 FIELD MANAGEMENT:

The field management will be the responsibility of the Engineer-in-Charge, who will be

nominated by the Owner. The Engineer-in-Charge may also authorize his representatives to

perform his duties and functions.

Coordination of Work - The Engineer-in-Charge shall coordinate the work of various

agencies engaged at site to ensure minimum disruption of work carried out by different

agencies. It shall be the responsibility of the contractor to plan and execute strictly in

accordance with the site instructions to avoid hindrance to the works being executed by

other agencies.

CONSULTANCY CONTRACTS:

This General Conditions of Contract (GCC) will be binding for Consultancy jobs only to the

extent of its applicability to the context of consultancy.

INTERPRETATION OF CONTRACT DOCUMENTS

15 INTERPRETATION OF CONTRACT DOCUMENT:

15.1 Except if and to the extent otherwise provided by the Contract, the provisions of the

General Conditions of Contract and special conditions shall prevail over those of any other

documents forming part of the contract. Several documents forming the contract are to be

taken as mutually explanatory. Should there be any discrepancy, inconsistency, error or

omission in the contract or any of the matter may be referred to Engineer-in-Charge, who

shall give his decisions and issue to the Contractor instructions directing in what manner the

work is to be carried out. The decision of the Engineer-in-Charge shall be final and

conclusive, and the contractor shall carry out work in accordance with this decision.

15.2 Works shown upon the drawing but not mentioned in the specifications or described

in the specification without being shown on the drawings shall nevertheless be held to be

included in the same manner as if they had been specifically shown upon the drawings and

described in the specifications.

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15.3 Headings and marginal notes to the clauses of these General Conditions of Contract

or to specifications or to any other tender document are solely for the purpose of giving a

concise indication and not a summary of the content thereof, and they shall never be

deemed to be part thereof or be used in the interpretation or construction thereof

of the Contract.

15.4 Singular and Plural:

In these contract documents unless otherwise stated specifically, the singular shall include

the plural and vice-versa wherever the context so requires. Words indicating persons shall

include relevant incorporated companies/ registered as associations/ body of individual/

firm or partnership.

16 SPECIAL CONDITIONS OF CONTRACT:

16.1 Special Conditions of contract shall be read in conjunction with the General

Conditions of Contracts, specification of work, Drawings and any other documents forming

part of this contract wherever the context so requires.

16.2 Notwithstanding the sub-division of the documents into these separate sections and

volumes every part of each shall be deemed to be supplementary to and complementary of

every other part and shall be read with and into the contract so far as it may be practicable

16.3 Where any portion of the General Conditions of Contract is repugnant to or at

variance with any provisions of the Special Conditions of Contract then, unless a different

intention appears the provisions of the Special Conditions of Contract shall be deemed to

over-ride the provision of the General Conditions of Contract and shall to the extent of such

repugnance or variations, prevail.

16.4 Wherever it is mentioned in the specifications that the Contractor shall perform

certain work or provide certain facilities, it is understood that the contractor shall do so at

16.5 The materials, designs and workmanship shall satisfy the relevant Indian Standards,

the Job specifications contained herein, and codes referred to. Where the job specifications

stipulate requirements in addition to those contained in the standard codes and

specifications, these additional requirements shall also be satisfied.

17 CONTRACTOR TO OBTAIN HIS OWN INFORMATION:

The contractor in fixing rate shall for all purposes whatsoever be deemed to have himself

independently obtained all necessary information for the purpose of preparing his tender.

The contractor shall be deemed to have examined the Contract Documents, to have

generally obtained his own information in all matters whatsoever that might affect the

carrying out the works at the scheduled rates and to have satisfied himself to the sufficiency

to his tender. Any error description of quantity or omission there from shall not vitiate the

contract or release the Contractor from executing the work comprised in the contract

according to drawing and specifications at the scheduled rates. He is deemed to have

known the scope, nature and magnitude of the works and the requirements of materials

and labor involved etc. and as to what all works, he must complete in accordance with the

contract documents whatever be the defects, omissions or errors that may be found in the

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Contract Documents. The Contractor shall be deemed to have visited surrounding to have

satisfied himself to the nature of all existing structures, if any, and also as to the nature and

the conditions of the Railways, roads, bridges and culverts means of transport and

communications, whether by land, water or air, and as to possible interruptions thereto and

the access to and regress from the site, to have made enquiries, examined and satisfied

himself as to the sites for obtaining sand, stones, bricks and other materials, the sites for

disposal of surplus materials the available accommodation as to whatever required, depots

and such other building as may be necessary for executing and completing the works, to

have made local independent enquiries as to the sub-soil water and variations thereof,

storms, prevailing winds, climate conditions and all other similar matters affecting these

works. He is deemed to have acquainted himself as to his liability for payment of

Government taxes, customs duty, and other charges.

Any neglect or failure on the part of the Contractor in obtaining necessary and reliable

information upon the foregoing or any other matters affecting the contract shall not relieve

him from any risk or liabilities or the entire responsibility from completion of the works at

the scheduled rates and time in strict accordance with the contract documents. No verbal

agreement or inference from conversation with any officer or employee of the owner either

before or after the execution of the contract agreement shall in any way affect or modify

any of the terms or obligations herein contained.

18 PERFORMANCE SECURITY DEPOSIT/RETENTION MONEY:

18.1 To ensure performance of the contract and due discharge of the contractual

obligations, the successful contractor will have to provide security deposit of 10% of the

contract value unless otherwise specified in the Special Conditions of Contract.

This Security deposit may be furnished in the form of an Account payee Demand Draft

payable to BPCL or Bank Guarantee in the prescribed format. The contractor shall have the

option to adjust any Earnest Money Deposit-(EMD) if paid by demand draft towards security

deposit if he so desires or otherwise if submitted by way of bank guarantee the validity of

the same to be extended suitably as advised by BPCL.

In the case of security deposit submitted in the form of Bank guarantee, the Bank

Guarantee shall be valid and remain in force till the contractual completion period (expiry of

the defect liability period- refer clause-72, if applicable) and with a claim period of six

months thereafter. The Bank Guarantee shall be in the form prescribed.

In case the successful contractor is not furnishing the performance security deposit as

referred above on award of the job, the same shall be deducted from each running account

bills at the rate of 10% of bill value till overall security deposit of 10% as mentioned above is

The security deposit will be retained till the successful completion of the work and

thereafter till the expiry of the defect liability period (refer clause-72), if applicable. This

retention money/Bank guarantee held shall be released after the expiry of the defect

liability period provided that any defects appearing during that period are corrected by the

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contractor and subject to Clause 18.2 below.

In the case of value/rate/quantity contracts, the security deposit shall be based on

individual release orders issued.

18.2 If the contractor/ sub-contractor or their employees shall break, deface or destroy

any property belonging to the Owner or other agency during the execution of the contract,

the same shall be made good by the Contractor at his own expenses and in default thereof,

the Engineer-in-Charge may cause the same to be made good by other agencies and recover

expenses from the contractor (for which the certificate of the Engineer-in-Charge shall be

final). These expenses can be recovered from the security deposit/retention money if

recovery from other sources is not possible.

18.3 All compensation or other sums of money payable by the contractor to the Owner

under terms of this contract may be deducted from his security deposit/retention money or

from any sums which may be or may become due to the contractor by the Owner on any

account whatsoever and in the event of his security deposit/retention money being reduced

by reasons of any such deductions. The contractor shall within ten days thereafter make

good any sum or sums, which may have been deducted from his security Deposit/retention

money. No interest shall be payable by the Owner from sum deposited as security

deposit/retention money.

18.4 The security deposit shall be held by the Owner, as security for the due performance

of the Contractor’s obligations under the contract, if nothing herein stated shall make it

incumbent upon the Owner to utilize the security deposit/retention money in preference to

any other remedy which the Owner may have, nor shall be construed as confining the

claims of the Owner against the contractor to the quantum of the Security

Deposit/retention money.

18.5 The Bank guarantee if submitted shall be from any Indian scheduled bank or an

international bank of repute having a branch in India or a corresponding banking

relationship with an Indian scheduled bank. The security deposit/retention money shall be

in Indian Rupee in the case of domestic bidders and in US Dollars in the case of foreign

19 TIME OF PERFORMANCE:

19.1 The work covered by this contract shall be commenced as detailed in the purchase

order or as per the instructions of the Engineer in charge and be completed in stages on or

before the dates as mentioned in the time schedule of completion of work. The contractor

should bear in mind that time is the essence of this agreement unless such time be

extended pursuant to the provision of clause No. 21. Request for revision of Completion

time after tenders are opened will not receive consideration.

19.2 Time Schedule of Completion: The general time schedule of completion is given in

the tender document. Contractor should prepare a detailed monthly and weekly execution

programme, jointly with the Engineer-in-Charge within two weeks of receipt of Letter of

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Intent or acceptance of tender. The work shall be executed strictly as per the time schedule

given in this document. The period of completion given includes the time required for

testing, rectifications, if any, retesting and completion in all respects to the entire

satisfaction of the Engineer-in-Charge.

20 FORCE MAJEURE:

Any delays in or failure of the performance of either part hereto shall not constitute default

here under or give rise to any claims for damages, if any, to the extent such delays or failure

of performance is caused by occurrences such as Acts of God or the public enemy

expropriation or confiscation of facilities by Govt./authorities, compliances with any order

or request of any Government authorities, acts of war, rebellion or sabotage or fires, floods,

explosions, riots or strikes. The contractor shall keep records of the circumstances referred

to above and bring these to the notice of Engineer-in-Charge in writing immediately on such

21 EXTENSION OF TIME:

If the contractor shall desire an extension of the time for completion of the work on the

grounds of his having been unavoidably hindered in its execution or on any other grounds,

he shall apply in writing to the Engineer-in-Charge within two weeks of the date of

hindrance on account of which he desires such extension as aforesaid, and the Engineer-in-

Charge shall if in his opinion (which shall be final), reasonable grounds have been shown

thereof, authorize such extension of time as may in his opinion be necessary or proper.

In the event of extension of Time of the contract, if granted, the contractor shall be required

to suitably extend the period of Bank Guarantee if submitted, towards security

Deposit/retention money suitably.

22. LIQUIDATED DAMAGES FOR DELAY:

22.1 Time is the essence of the contract. In case the contractor fails to complete the

whole work within the stipulated period, he shall be liable to pay liquidated damages of

0.5% of the value of contract per week and or part thereof of the delay subject to a

maximum of 5% of the value of the contract. The parties agree that this is a genuine pre-

estimate of the loss/damage which will be suffered by the owner on account of delay on the

part of the contractor and the said amount will be payable on demand without there being

any proof of the actual loss or damages having been caused by such delay/breach. The

owner shall be at liberty to adjust or deduct the said amount of liquidated damages from

any amount due to the contractor including Security Deposit.

22.2 The owner shall be at liberty to deduct or retain from any amount payable to the

contractor periodically, the proportionate or full amount of liquidated damages as the case

may be for the delay periodically caused by the contractor.

23 SUM PAYABLE BY WAY OF COMPENSATION TO BE CONSIDERED AS REASONABLE

COMPENSATION WITHOUT REFERENCE TO ACTUAL LOSS:

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All sums payable by way of compensation under any of the conditions shall be considered as

reasonable compensation without reference to the actual loss or damage, which shall have

been sustained by the Owner.

24 TERMINATION/OFFLOADING:

24.1 The contractor fully understands that timely completion of the work as per the

schedule is of paramount necessity as otherwise it would lead to adversely affecting the

schedules of other works/project with resultant financial and other losses to the

Company/owner. In view of this, the contractor unconditionally agrees and binds himself to

be liable for all the consequences for non-completion of the work within the stipulated

24.2 In case a situation is brought about by the contractor warranting termination/off-

loading of the whole or any part of the work for any reason whatsoever, the

Company/owner shall have the liberty and right to entrust/engage/award the work so

terminated/off loaded at the risk and cost of the contractor to any other agency/contractor

by adopting any mode of inviting tenders, i.e. open/limited/single party/negotiation basis

etc. in order to ensure completion of the work as per the schedule or at the quickest

25. FORFEITURE OF SECURITY DEPOSIT:

Whenever any claim against the Contractor for the payment of a sum of money arises out of

or under the contract, the Owner shall be entitled to recover such sum by appropriating in

part or whole, security deposit of the contractor, forming whole or part of such security

being insufficient or if no security has been taken from the Contractor then the balance or

the total sum recoverable, as the case may be, shall be deducted from any sum then due or

which at any time thereafter may become due to the Contractor. The contractor shall pay to

the owner on demand any balance remaining due.

26 ACTION WHEN WHOLE OF SECURITY DEPOSIT IS FORFEITED:

In any case in which, under any clause or clauses of this contract, the contractor shall have

forfeited the whole of his security deposit (whether paid in one sum or deducted by

installment) or have committed a breach of any of the terms contained in this contract the

owner shall have power to adopt any of the following courses as he may deem best suited

to his interest. To rescind the contract (of which rescission notice in writing to the

contractor under the hand of the owner shall be conclusive evidence) in which case the

security deposit of the contractor shall stand forfeited and be absolutely at the disposal of

a) To employ labour paid by the owner and to supply materials to carry out the

work any part of the work, debiting contractor with the labour cost of tools and plants and

equipment charges, the cost of the materials for which a certificate of the Engineer-in-

Charge shall be final and conclusive against the Contractor and 10% of costs as above to

cover all departmental charges and crediting him with the value of the work done in all

respects in the manner and at the same rates as if it had been carried out by the Contractor

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under the term of his contract. The certificate of Engineer-in-Charge as to the value of the

work done shall be final and conclusive against the contractor.

b) To measure up the work of the contractor and to take such part thereof as

shall be unexecuted out of his hand to give it to another contractor to complete in which

case any expenses which may be incurred in excess of the sum which would have been paid

to the original contractor, if the whole work had been executed by him (of the amount of

which excess, the certificate in writing of the Engineer-in-Charge shall be final and

conclusive) shall be borne and paid by the original contractor and may be deducted from

any money due to him by the Owner under the contract or otherwise or from his security

deposit or from the proceeds of sale thereof, of a sufficient part thereof.

In the event of any of the above course being adopted by the Owner, the contractor shall

have no claim to compensation for any loss sustained by him by reason of his having

purchased or procured any materials or entered into any agreements or made any advances

on account of or with a view to the execution of the work of the performance of the

contract. In case the Contractor shall not be entitled to recover or be paid any sum for any

work actually performed under this contract unless the Engineer-in-Charge will certify in

writing the performance of such work and the value payable in respect thereof and he shall

only be entitled to be paid the value so certified.

27 CONTRACTOR REMAINS LIABLE TO PAY COMPENSATION IF ACTION NOT TAKEN

UNDER CLAUSE 26:

In any case in which any of the powers conferred upon the owner by clause 26 thereof shall

have become exercisable and the same had not been exercised, the non exercise thereof

shall not constitute a waiver of any of the conditions hereof and such powers shall

notwithstanding be exercised in the event of any further case of default by the contractor

for which any clause of hereof he is declared liable to pay compensation amounting to the

whole of his security deposit and the liability of the contractor for past and future

compensation shall remain unaffected. In the event of the Owner putting in force the power

under sub-clause (a), (b) or (c) vested in him under the proceeding clause he may, if he so

desires takes possession of all or any tools and plants materials and stores in or upon the

works or the site thereof belonging to the contractor or procured by him and intended to be

used for the execution of the work or any part thereof paying or allowing for the same in

account at the contract rates or in case of these not being applicable at current market

rates to be certified by the Engineer-in-Charge whose certificate thereof shall be final

otherwise the Engineer-in-Charge may give notice in writing to the contractor or his clerk of

the works, supervisor or other authorized agent, requiring him to remove such tools, plant,

materials or stores from the premises (within a time to be specified in such notice) and in

the event of the contractor failing to comply with any such requisition, the Engineer-in-

Charge may remove them at the contractors expense or sell them by auction or private sale

on account of the contractor and at his risk in, all respects without any further notice as to

the date, time or place of sale and the certificate of the Engineer-in-Charge as to the

expense of any such removal and the amount of proceeds and any expenses of any such

sale shall be final and conclusive against the contractor.

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28 NO COMPENSATION FOR ALTERATION IN OR RESTRICTION OF WORK:

If at any time from the commencement of the work the owner shall for any reasons

whatsoever, not require the whole or part thereof as specified in the tender to be carried

out, the Engineer-in-Charge shall give notice in writing of the fact to the contractor, who

shall have no claim to any payment or compensation whatsoever on account of any profit or

advantage which he might have derived from the execution of the work in full, but which he

did not derive in consequence of the full amount of the work not having been carried out,

neither shall he have any claim for compensation by reason of any alterations having been

made in the original specifications, drawings, designs and instructions which shall involve

any curtailment of the work as originally contemplated.

29 CHANGES IN CONSTITUTION:

Where the contractor is a partnership firm, the prior approval, in writing, of the Owner shall

be obtained before any change is made in the constitution of the firm, where the contractor

is an individual or a Hindu undivided family business concern, such approval as aforesaid

shall likewise be obtained before sub-contractor enters into any agreement with other

parties, where under the reconstituted firm would have the right to carry out the work

hereby undertaken by the contractor. In either case if prior approval as aforesaid is not

obtained, the contract shall be deemed to have been allotted in contravention of clauses

hereof and the same action may be taken and, the same consequence shall ensure as

provided in the said clause.

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30 IF THE CONTRACTOR DIES:

Without prejudice to any of the rights or remedies under his contract, if the contractor dies,

the Owner shall have the option of terminating the contract without compensation to the

31 EMPLOYEES OF THE OWNER NOT INDIVIDUALLY LIABLE:

No director or official or employee of the Owner shall in any way be personally bound or

liable for the acts or obligations of the Owner under the contract or answerable for any

default or omission in the observance or performance of any of the acts, matters or things

which are herein contained.

32 OWNER NOT BOUND BY PERSONAL REPRESENTATIONS:

The contractor shall not be entitled to any increase on the item rates of the contract or any

other right or claim whatsoever by reason of representation, explanation or statement or

alleged representation, promise or guarantees given or alleged to have been given to him

33 CONTRACTOR’S OFFICE AT SITE:

The contractor shall provide and maintain an office at the site, if space provided by the

owner, for the accommodation of his agent and staff and such office shall be open at all

reasonable hours to receive instruction, notices, or other communications.

34 CONTRACTOR’S SUBORDINATE STAFF AND THEIR CONDUCTS:

34.1 The contractor, on or after award of the work shall name and depute

qualified personnel having sufficient experience in carrying out work of similar nature to

whom the equipments materials, if any, shall be issued and instructions for works given.

The contractor shall also provide to the satisfaction of the Engineer-in-Charge sufficient and

qualified staff to supervise the execution of the-works, competent sub-agents, supervisor

and leading hands including those specially qualified by previous experience to supervise

the type of works comprised in the contract in such manner as will ensure work of the best

quality, expeditious working. Whenever in the opinion of the Engineer-in-Charge, additional

properly qualified supervision staff is considered necessary, they shall be employed by the

contractor without additional charges on account thereof. The Contractor shall ensure to

the satisfaction of the Engineer-in-Charge that sub-contractors, if any shall provide

competent and efficient supervision over the work entrusted to them.

34.2 If and whenever any of the Contractor’s or sub-contractor’s agents, sub-

agents, assistants supervisor or other employees shall in the opinion of Engineer-in-Charge

be guilty of any misconduct or be incompetent or insufficiently qualified or negligent in the

performance of their duties or that in the opinion of the owner or Engineer-in-Charge, it is

undesirable for administrative or any other reason for such person or persons to be

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employed in the works, the contractor, if so directed by the Engineer-in-Charge, shall at

once remove such person or persons from employment thereon. Any person or persons so

removed from the works shall not again be employed in connection with the works without

the written permission of the Engineer-in-Charge. Any person so removed from the works

shall be immediately replaced at the expense of the contractor by a qualified and

competent substitute. Should the contractor be requested to repatriate any person

removed from the works he shall do so and shall bear all costs in connection herewith.

34.3 The contractor shall be responsible for the proper behavior of all the staff,

supervisor, workmen and others and shall exercise a proper degree of control over them

and in particular, and without prejudice to the said generality, the contractor shall be bound

to prohibit and prevent any employees from trespassing or acting in any way detrimental or

prejudicial to the interest of the community or of the properties or occupiers of land and

properties in the neighborhood and in the event of such employee so trespassing, the

contractor shall be responsible therefore and relieve the Owner of all consequent claims or

actions for damages or injury or any other grounds whatsoever. The decision of the

Engineer-in-Charge upon any matter arising under this clause shall be final. Contractor shall

ensure that none of their employees are ever engaged in any anti-national activities.

34.4 All contractor’s personnel entering upon the Owner’s premises shall be

properly identified by badges issued by owner which must be worn all times on Owner’s

35 SUB-LETTING OF WORK:

Subletting of contracts shall not be generally permitted. However, owner may permit

subletting of work on specific cases subject to the following: -

i) No part of the contract nor any share of interest there shall in any manner or

degree be transferred assigned sublet by the contractor directly or indirectly to any firm or

corporation whosoever except as provided for in the succeeding sub-clause, without the

consent in writing of the Owner.

ii) Sub-Contractors for Temporary Works Etc.: - The Owner may give written

consent to sub-contract for execution of any part of the works at the site, being entered

into by the contractor provided each individual sub-contract is submitted to the Engineer-

in-Charge before being entered into and is approved by him.

iii) List of Sub-Contractors to be supplied: - At the commencement of every month

the contractor shall furnish to the Engineer-in-Charge list of all sub-contractors or firms

engaged by the contractor and working at the site during the previous month with

particulars of the general nature of the sub-contract or works.

iv) Contractor’s Liability Not Limited By Sub-Contractors:- Notwithstanding any sub-

letting with such approval as aforesaid and notwithstanding that the Engineer-in-Charge

shall have received copies of any sub-contracts, the contractor shall be and shall remain

solely responsible for the quality and proper and expeditious execution of the works and

the performance of all the conditions of the contract in all respects as if such sub-letting or

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sub-contracting had not taken place and as if such work had been done directly by the

v) Owner may Terminate Sub-Contracts:- If any sub-contractor engaged upon the

works at the site executes any work which in the opinion of the Engineer-in-Charge is not in

accordance with the Contract documents, the owner may by written notice to the

contractor request him to terminate such sub-contract and the contractor upon the receipt

of such notice shall terminate such sub contract and the latter shall forthwith leave the

works, failing which the owner shall have right to remove such sub-contractors from the

vi) No Remedy for Action Taken Under This Clause: - No action taken by the owner

under the clause shall relieve the contractor of any of his liabilities under the contract or

give rise to any right to compensation, extension of time or otherwise failing which, the

owner shall have right to remove such sub-contractors from the Site.

36 POWER OF ENTRY:

If the contractor shall not commence the work in the manner previously described in the

contract document or if he shall, at any time in the opinion of the Engineer-in-Charge.

i. Fail to carry out the works in conformity with the contract documents, or

ii. Fail to carry out the works in accordance with the time schedule, or

iii. Substantially suspend work or the works for a period of Fourteen days

without authority from the Engineer-in-Charge, or

iv. Fail to carry out and execute the works to the satisfactions of the Engineer-

v. Fail to supply sufficient or suitable constructional equipments, temporary

works, labor materials or things, or

vi. Commit or suffer or permit any other breach of any of the provisions of the

contract on his part to be performed or observed or persist in any of the above-mentioned

breaches of the contract for the fourteen days, after notice in writing shall have been given

to the Contractor by the Engineer-in-Charge requiring such breach to be remedied, or

vii. Abandon the works, or

viii. During the continuance of the contract, become bankrupt, make any

arrangement or composition with his creditors, or permit any execution to be levied or go

into liquidation whether compulsory or voluntary not being merely a voluntary liquidation

for the purpose of amalgamation or reconstruction.

Then in any such case, the Owner shall have the power to enter upon the works and take

possession thereof and of the materials, temporary works, constructional equipment, and

stock thereon, and to revoke the contractor’s license to use the same, and to complete the

works, by his agents, other contractor or workmen, or to re-let the same upon any terms

and to such other person firm or corporation as the Owner in his absolute discretion may

think proper to employ and for the purpose aforesaid to use or authorize the use of any

materials, temporary works constructional equipment, and stock as aforesaid without

making payment or allowances to the contractor for the said materials other than such as

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may be certified in writing by the Engineer-in-Charge to be reasonable, and without making

any payment or allowance to the contractor for the use of the temporary said works,

constructional equipments and stock or being liable for any loss of damage thereto, and if

the Owner shall by reason of his taking possession of the works or of the works being

completed by other contractors (due account being taken of any such extra work or works

which may be omitted) then the amount of such excess as certified by the Engineer-in-

Charge shall be deducted from any money which may be due for work done by the

contractor under the contract and not paid for. Any deficiency shall forthwith be made

good and paid to the Owner by the contractor and the Owner shall have power to sell in

such manner and for such price as he may think fit all or any of the constructional

equipment, materials etc. belonging to and to recoup and retain the said deficiency or any

part thereof out of the proceeds of the sale.

37 CONTRACTORS RESPONSIBILITY WITH OTHER AGENCIES:

Without repugnance to any other condition, it shall be the responsibility of the contractor

executing the work of civil construction, to work in close co-operation and co-ordinate the

works with other contractors or their authorized representatives and the contractor will put

up a joint scheme, showing the arrangements, with other contractors / agencies for carrying

his portion of work to the Engineer-in-Charge, and get the approval. The contractor before

finally submitting the schemes to the Engineer-in-Charge shall have the written agreement

of the other agencies. The Engineer-in-Charge before communicating his approval of the

scheme, with any required modifications shall get the final agreement of all the agencies,

which shall be binding. No claim shall be entertained on account of the above.

The contractor shall conform in all respects with the provisions of any statutory regulations,

ordinances or by laws of any local or duly constituted authorities or public bodies which

may be applicable from time to time to the works or any temporary works. The contractor

shall keep the Owner Indemnified against all penalties and liabilities of every kind arising

out of non-adherence to such statute’s ordinances, laws, rules, regulations, etc.

38 OTHER AGENTS AT SITE:

The contractor shall have to execute the work in such place and condition where other

agencies might also be engaged for other works such as site grading, filling and leveling,

electrical and mechanical engineering works etc. No claim shall be entertained to works

being executed in the above circumstances.

Any notice hereunder may be served on the contractor or his duly authorized

representative at the job site or may be served by registered mail direct to the address

furnished by the Contractor. Proof of issue of any such notice could be conclusive of the

contractor having been duly informed of all contents therein.

40 RIGHTS OF VARIOUS INTERESTS:

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i) The Owner reserves the right to distribute the work between more than one

contractor. The contractor shall co-operate and afford other contractors’ reasonable

opportunity for access to the works for the carriage and storage of materials and execution

of their works.

ii) Whenever the work being done by any department of the Owner or by other

contractors employed by the Owner is contingent upon work covered by the contract, the

respective rights of the various interests involved shall be determined by the Engineer-in-

Charge to secure the completion of the various portions of the work in general harmony.

41 RIGHT OF OWNER TO DETERMINE / TERMINATE CONTRACT:

i) Owner shall, at any time be entitled to determine and terminate the contract, if in

the opinion of the Owner the cessation of the work becomes necessary owing to paucity of

funds or for any other cause whatsoever, in which case, the cost of approved materials at

the site at current market rates as verified and approved by Engineer-in-Charge and of the

value of the work done to date by the contractor shall be paid for in full at the rates

specified in the contract. A notice in writing from the Owner to the contractor of such

determination and termination and the reason thereof, shall be the conclusive proof of the

fact that the contract has been so determined and terminated by the Owner.

ii) Should the contract be determined under sub-clause (i) of this clause and the

contractor claims payments to compensate expenditure incurred by him in the expectation

of completing the whole of the work, the Owner shall consider and admit such claim as are

deemed fair and reasonable and are supported by vouchers to the satisfaction of the

Engineer-in-Charge. The Owner’s decision on the necessity and propriety of any such

expenditure shall be final and conclusive and binding on the contractor.

42 PATENTS AND ROYALTIES:

42.1 The contractor, if licensed under any patent covering equipment, machinery,

materials or compositions of matter to be used or supplied or methods and process to be

practiced or employed in the performance of this contract, agrees to pay all royalties and

licence fees which may be due with respect thereto. If any equipment, machinery, materials

or composition matters, to be used or supplied or methods and process to be practised or

employed in the performance of this contract, is covered by a patent under which

contractor is not licensed then the contractor before supplying or using the equipment,

machinery, materials, compositions method or processes shall obtain such licences, and pay

such royalties and licence fees as may be necessary for performance of the contract. In the

event, the contractor fails to pay any such royalties or obtain any such licence, any suit for

infringement of such patents which is brought against the contractor or the Owner as a

result of such failure will be defended by the contractor at his own expenses and the

contractor will pay any damages and costs awarded in such suit. The contractor shall

promptly notify the owner if the contractor has acquired knowledge of any patent under

which a suit for infringement could be reasonably brought because of the use by the Owner

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of any equipment, machinery, materials, and process methods to be supplied hereunder.

The contractor agrees to and does hereby grant to Owner, together with the right to extend

the same to any of the subsidiaries of the Owner as irrevocable, royalty-free licence to use

in any country, any invention made by the contractor or his employee in or as a result of the

performance of the work under the contract.

The Owner shall indemnify and save harmless the contractor from any loss on account of

claims on contractor for the contributory infringement of patent rights arising out and

based upon the claim that the use by the Owner of the process included in the design

prepared by the Owner and used in the operation of the plant infringes on any patent right

with respect to any sub-contract entered into by contractor pursuant to the provisions of

sub-contractor an undertaking to provide the Owner with the same patent protection that

contractor is required to provide under the provisions of this clause.

42.2 All drawings, blue prints, tracings, reproducible, models, plans, specification and

copies thereof, furnished by the Owner as well as drawings, tracings, reproducible, plans

specifications, design, calculations etc. prepared by the contractor for the purpose of

execution of works covered in or connected with this contract shall be the property of

Owner and shall not be used for any other work but are to be delivered to the Owner at the

completion of the contract.

42.3 Where so desired by Engineer-in-Charge, the contractor agrees to respect the

secrecy of any document, drawings etc. issued to him for the execution of this contract, and

restrict access to such documents, drawing etc. to the minimum and further, the contractor

agrees to execute an individual SECRECY agreement from each or any person employed by

contractor having access to such documents, drawings and to any other agency or

individual, without the written approval by Engineer-in-Charge.

43.1 If, at any time, there should be evidence or any lien or claim for which the Owner

might have become liable and which is chargeable to the contractor, the Owner shall have

the right to retain out of any payment then due or thereafter to become due an amount

sufficient to completely indemnify the owner against such lien or claim and if such lien or

claim be valid the Owner may pay and discharge the same and deduct the amount so paid

from any money which may be or may become due and payable to the Contractor. If any

lien or claim remain unsettled after all payments are made, the contractor shall refund or

pay to the Owner all moneys that the latter may be compelled to pay in discharging such

lien or claim including all costs and reasonable expenses.

43.2 Contractor will not disclose details of the work to any person or persons except those

engaged in its performance, and only to the extent required for the particular portion of the

work being done.

Contractor will not give any items concerning details of the work to the press or a news

disseminating agency without prior written approval from Engineer-in-Charge. Contractor

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shall not take any pictures on site without written approval of Engineer-in-Charge

44 OPERATION OF CONTRACT:

44.1 Law Governing:

Regardless of the place of contracting, place of performance or otherwise, this Agreement,

and all amendments, modifications, alterations, or supplements, thereto shall be governed

by the laws of India and respective state laws for the nature, validity and interpretation

44.2 Non-Waiver of Default:

Any failure by the Owner or Contractor at any time, or from time to time, to enforce or

require the strict keeping and performance of any of the terms or conditions of this

agreement, or to exercise a right hereunder, shall not constitute a waiver of such terms,

conditions or rights, and shall not affect or impair same, or the right of the Owner or the

Contractor, as the case may be at any time to avail itself of same.

PERFORMANCE OF WORK

45 EXECUTION OF WORKS:

45.1 All the works shall be executed in strict conformity with the provisions of the

contract documents and with such explanatory detailed drawings, specifications, and

instructions as may be furnished from time to time to the contractor by the Engineer-in-

Charge whether mentioned in the contract or not. The contractor shall be responsible for

ensuring that works throughout are executed in the most substantial, proper and workman

like manner with the quality of material and workmanship in strict accordance with the

specifications following all safety requirements of BPCL and as stipulated in work permits as

per the directions and to the entire satisfaction of the Engineer-in-Charge.

45.2 Wherever it is mentioned in the specifications that the Contractor shall perform

certain work or provide certain facilities/materials, it is understood that the contractor shall

do, so at his cost unless otherwise specified.

45.3 The materials, design and workmanship shall satisfy the relevant Indian Standards,

the Job specification contained herein and codes referred to. Where the job specification

stipulate requirements in addition to those contained in the standards codes and

specifications, these additional requirements shall also be satisfied.

46 COORDINATION AND INSPECTION OF WORK:

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The coordination and inspection of the day-to-day work under the contract shall be the

responsibility of the Engineer-in-Charge. The written instructions regarding any particular

job will be normally be passed by the Engineer-in-Charge or his authorized representative. A

work order book / logbook will be maintained by the Contractor for each job in which the

aforesaid written instructions will be entered. These will be signed by the contractor or his

authorized representative by way of acknowledgment within 12 hours. The non maintaining

of the order book or non signing by the contractor shall not preclude the contractor from

complying with the instructions.

47 WORK IN MONSOON AND DEWATERING:

47.1 The completion of the work may entail working in the monsoon also. The contractor

must maintain a minimum labour force as may be required for the job and plan and execute

the construction and erection according to the prescribed schedule. No extra rate will be

considered for such work in monsoon.

47.2 During monsoon and other period, it shall be the responsibility of the contractor to

keep the construction work site free from water at his own cost.

48 WORK ON SUNDAYS AND HOLIDAYS:

For carrying out work on Sundays and Holidays if needed, the contractor will approach the

Engineer-in-Charge or his representative at least two days in advance and obtain permission

in writing. No special compensation on this account will be payable.

49 GENERAL CONDITIONS FOR CONSTRUCTION AND ERECTION WORK:

49.1 Place of Work:

The work has to be executed at specified premises as per the tender. Contractor should

apprise himself of all the conditions prevailing in such location and the restrictions placed

on movement of personnel and equipment, types of equipment and tools permitted,

working methods allowed etc. in the light of security and safety regulations operative in the

The safety regulations to be complied with, by the contractor will also be provided along

with the tender. No idle time wages or compensation for temporary stoppage of work or

restrictions would be paid, and the rate quoted for the various items of work should cover

the cost of all such contingencies and eventualities. Substantial structures and utilities exist

both above ground and underground, adjacent to the work site. (The construction activity

gets restrained by the existence of such structures and utilities). Special care is necessary in

transportation, storage, working on equipments and other construction activities to protect

the existing features and prevent damage to any facility. Necessary protective structures

barricades etc. have to be erected at various places as directed by Engineer-in-Charge. No

extra payment of such protective works will be made unless specially provided in the

49.2 The working time or the time of work is 48 hours per week normally. Overtime work

is permitted in cases of need and the Owner will not compensate the same. Shift working at

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2 or 3 shifts per day may become necessary and the contractor should take this aspect into

consideration for formulating his rates for quotation. No extra claims will be entertained by

the Owner on this account.

49.3 The contractor must arrange for the placement of workers in such a way that the

delayed completing of the work or any part thereof for any reasons whatsoever will not

affect their proper employment. The Owner will not entertain any claim for idle time

payment whatsoever.

49.4 The contractor shall submit to the Owner reports at regular intervals regarding the

state and progress of work. The details and preforma of the report will mutually be agreed

after the award of contract.

50 DRAWINGS TO BE SUPPLIED BY THE OWNER:

50.1 Where drawings are attached with tender, these shall be for the general guidance of

the contractor to enable him to visualize the type of work contemplated and scope of work

involved. The contractor will be deemed to have studied the drawings and formed an idea

about the work involved.

50.2 Detailed working drawings on the basis of which actual execution of the work is to

proceed will be furnished from time to time during the progress of the work. The contractor

shall be deemed to have gone through the drawings supplied to him thoroughly and

carefully and in conjunction with all other connected drawings and bring to the notice of

the Engineer-in-Charge, discrepancies, if any, therein before actually carrying out the work.

50.3 Copies of all detailed working drawings relating to the works shall be kept at the

contractor’s office of the site and shall be made available to the Engineer-in-Charge at any

time during the contract. The drawings and other documents issued by the Owner shall be

returned to the Owner on completion of the works. Reference is also invited to clause

and 42.3 above regarding drawings and other documents.

51 DRAWINGS TO BE SUPPLIED BY THE CONTRACTOR:

51.1 Where drawings/data are to be furnished by the contractor, they shall be as

enumerated in the special conditions of contract and shall be furnished within the specified

51.2 Where approval of drawings before manufacture / construction / fabrication has

been specified, it shall be contractor’s responsibility to have these drawings prepared as per

the directions of Engineer-in-Charge and got approved before proceeding with manufacture

construction / fabrication, as the case may be. Any changes that may have become

necessary in these drawings during the execution of the work shall have to be carried out by

the contractor to the satisfaction of Engineer-in-Charge at no extra cost. All final drawings

shall bear the certification stamps duly signed by both the contractor and the Engineer-in-

51.3 A period of 3 weeks from the date of receipt shall be required normally for approval

of drawings by the Engineer-in-Charge.

52 SETTING OUT WORKS:

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52.1 The Engineer-in-Charge shall furnish the contractor with only the four corners of the

work site and a level bench mark and the contractor shall set out the works and shall

provide efficient staff for the purpose and shall be solely responsible for the accuracy of

such setting out.

52.2 The contractor shall provide, fix and be responsible for the maintenance of all

stacks, templates, level marks, profiles and other similar things and shall take all necessary

precaution to prevent their removal or disturbance and shall be responsible for the

consequence of such removal or disturbance should the same take place and for their

efficient and timely reinstatement. The contractor shall also be responsible for the

maintenance of all existing survey marks, boundary marks, distance marks and centre line

marks, either existing or supplied and fixed by the contractor. The, work shall be set out to

the satisfaction of the Engineer-in-Charge. The approval thereof or joining in setting out the

work shall not relieve the contractor of any of his responsibilities.

52.3 Before beginning the works, the contractor shall at his own cost, provide all

necessary reference and level posts, pegs, bamboos, flags, ranging rods, strings and other

materials for proper layout of the work in accordance with the scheme, for bearing marks

acceptable to the Engineer-in-Charge. The centre, longitudinal or face lines and cross lines

shall be marked by means of small masonry pillars. Each pillar shall have distinct marks at

the centre to enable theodolite to be set over it. No work shall be started until all these

points are checked and approved by the Engineer-in-Charge in writing, but such approval

shall not relieve the contractor of any of his responsibilities. The contractor shall also

provide all labour, material and other facilities, as necessary, for the proper checking of

layout and inspection of the points during construction.

52.4 Pillars bearing geodetic marks located at the site of work under construction should

be protected and fenced by the contractor.

52.5 On completion of works, the contractor must submit the geodetic documents

according to which the work was carried out.

53 RESPONSIBILITY FOR LEVEL AND ALIGNMENT:

The contractor shall be entirely and exclusively responsible for the horizontal and vertical

alignment, the levels and correctness of every part of the work and shall rectify effectually

any errors or imperfections therein. Such rectifications shall be carried out by the

contractor, at his own cost, when instructions are issued to that effect by the Engineer-in-

54 MATERIALS TO BE SUPPLIED BY CONTRACTOR:

54.1 The contractor shall procure and provide the whole of the materials required for

construction including tools, tackles, construction plant and equipment for the completion

and maintenance of the works except the materials which will be issued by Owner and shall

make his own arrangement for procuring such materials and for the transport thereof. The

materials procured by the contractor shall be BPCL approved/specified quality.

54.2 All materials procured should meet the specifications given in the tender document.

The Engineer-in-Charge may, at his discretion, ask for samples and test certificates for any

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batch of any material procured. Before procuring, the contractor should get the approval of

Engineer-in-Charge for any material to be used for the works.

54.3 Manufacturer’s certificate shall be submitted for all materials supplied by the

contractor. If, however, in the opinion of the Engineer-in-Charge any tests are required to

be conducted on the materials supplied by the contractor, these will be arranged by the

contractor promptly at his own cost.

55 MATERIALS SUPPLIED BY OWNER:

55.1 If the specification of the work provides for the use of any materials of special

description to be supplied from the Owner’s stores, price for such material to be charged

therefore as herein after mentioned being so far as practicable for the convenience of the

contractor but not so as in any way to control the meaning or effect of the contract. The

contractor shall be bound to purchase and shall be supplied such materials as are from time

to time required to be used by him for the purpose of the contract only. The sums due from

the contractor for the value of the actual materials supplied by the Owner will be recovered

from the running account bill on the basis of the actual consumption of materials in the

work covered and for which the running account bill has been prepared. After the

completion of the works, however, the contractor has to account for the full quantity of

materials supplied to him as per relevant clauses in this document.

55.2 The value of the materials as may be supplied to the contractor by the Owner will be

debited to the contractor’s account at the rates shown in the schedule of chargeable

materials and if they are not entered in the schedule, they will be debited at cost price,

which for the purpose of the contract shall include the cost of carriage and all other

expenses whatsoever such as normal storage supervision charges which shall have been

incurred in obtaining the same at the Owner’s stores. All materials so supplied to the

contractor shall remain the absolute property of the Owner and shall not be removed on

any account from the site of the work, and shall be at all times open for inspection to the

Engineer-in-Charge. Any such materials remaining unused at the time of completion or

termination of the contract shall be returned to the Owner’s stores or at a place as directed

by the Engineer-in-Charge in perfectly good condition, at contractor’s cost.

56 CONDITIONS FOR ISSUE OF MATERIALS:

i) Materials specified to be issued by the Owner will be supplied to the contractor

by the Owner from his stores/location. It shall be the responsibility of the contractor to take

delivery of the materials and arrange for its loading, transport and unloading at the site of

work at his own cost. The materials shall be issued between the working hours and as per

the rules of the Owner framed from time to time.

ii) The contractor shall bear all incidental charges for the storage and safe custody of

materials at site after these have been issued to him.

iii) Materials specified to be issued by the Owner shall be issued in standard sizes as

obtained from the manufacturer.

iv) The contractor shall construct suitable godown at the site of work for storing the

materials safe against damage by rain, dampness, fire, theft etc. He shall also employ

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necessary watch and ward establishment for the purpose.

v) It shall be duty of the contractor to inspect the material supplied to him at the

time of taking delivery and satisfy himself that they are in good condition. After the

materials have been delivered by the Owner, it shall be the responsibility of the contractor

to keep them in good condition and if the materials are damaged or lost, at any time, they

shall be repaired and/ or replaced by him at his own cost, according to the directions of the

Engineer-in-Charge.

vi) The Owner shall not be liable for delay in supply or non-supply of any materials

which the Owner has undertaken to supply where such failure or delay is due to natural

calamities, act of enemies, transport and procurement difficulties and any circumstances

beyond the control of the Owner. In no case, the contractor shall be entitled to claim any

compensation or loss suffered by him on this account.

vii) It shall be the responsibility of the contractor to arrange in time all materials

required for the works other than those to be supplied by the Owner. If, however, in the

opinion of the Engineer-in-Charge the execution of the work is likely to be delayed due to

the contractor’s inability to make arrangements for supply of materials which normally he

has to arrange for, the Engineer-in-Charge shall have the right, at his own discretion, to

Issue such materials If available with the Owner or procure the materials from the market

or elsewhere and the contractor will be bound to take such materials at the rates decided

by the Engineer-in-Charge. This, however, does not in any way absolve the contractor from

responsibility of making arrangements for the supply of such materials in part or in full,

should such a situation occur, nor shall this, constitute a reason for the delay in the

execution of the work.

viii) None of the materials supplied to the contractor will be utilized by the contractor

for manufacturing item, which can be obtained from standard manufacturer in finished

ix) The contractor shall, if desired by the Engineer-in-Charge, be required to execute

an indemnity bond for safe custody and accounting of all materials issued by the Owner.

x) The contractor shall furnish to the Engineer-in-Charge sufficiently in advance a

statement showing his requirements of the quantities of the materials to be supplied by the

Owner and the time when the same will be required by him for the works, so as to enable

the Engineer-in-Charge to make necessary arrangement for procurement and supply of the

xi) A daily account of the materials issued by the Owner shall be maintained by the

contractor indicating the daily receipt, consumption and balance in hand. This account shall

be maintained in a manner prescribed by the Engineer-in-Charge along with all connected

papers viz. requisition, issues etc. and shall be always available for inspection in the

contractor’s office at site.

xii) The contractor should see that only the required quantities of materials are got

issued. The contractor shall not be entitled to cartage and incidental charges for returning

the surplus materials, if any, to the stores/location where from they were issued or to the

place as directed by the Engineer-in-Charge.

xiii) Materials/ Equipment supplied by Owner shall not be utilized for any other

purpose(s) than issued for.

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57 MATERIALS PROCURED WITH ASSISTANCE OF OWNER:

Notwithstanding anything contained to the contrary in any or all the clause of this

document where any materials for the execution of the contract are procured with the

assistance of Owner either by issue from Owner’s stock or purchase made under orders or

permits or licences issued by Government, the contractor shall hold the said materials as

trustee for the Owner and use such materials economically and solely for the purpose of

the contract and not dispose them off without the permission of the owner and return, if

required by the Engineer-in-Charge, all surplus or unserviceable materials that may be left

with him after the completion of the contract or at its termination for any reason,

whatsoever on his being paid or credited such prices as the Engineer in-Charge shall

determine having due regard to the condition of the materials. The price allowed to the

contractor however, shall not exceed the amount charged to him excluding the storage

charges if any. The decision of the Engineer-in-Charge shall be final and conclusive in such

matters. In the event of breach of the aforesaid condition, the contractor shall in terms of

the licenses or permits, and/or for criminal breach of trust, be liable to compensate the

Owner a double rate or high rate, in the event of those materials at that time having higher

rate or not being available in the market, then any other rate to be determined by the

Engineer-in-Charge and his decision shall be final and conclusive.

58 MATERIALS OBTAINED FROM DISMANTLING:

If the contractor in the course of execution of the work is called upon to dismantle any part

for reasons other than those stipulated in clauses 64 & 68 hereunder, the materials

obtained in the work of dismantling etc. will be considered as the Owner’s property and will

be disposed off to the best advantage of the Owner.

59. ARTICLES OF VALUE FOUND:

All gold, silver and other materials, of any description and all precious stones, coins,

treasure relies, antiquities and other similar things which shall be found in, under or upon

the site, shall be property of the Owner and the contractor shall duly preserve the same to

the satisfaction of the Engineer-in-Charge and shall from time to time deliver the same to

such person or person indicated by the Owner.

60 DISCREPANCIES BETWEEN INSTRUCTIONS:

Should any discrepancy occur between the various instructions furnished to the contractor,

his agents or staff or any doubt, arise as to the meaning of any such instructions or should

there be any misunderstanding between the contractor’s staff and the Engineer-in-Charge’s

staff, the contractor shall refer the matter immediately in writing to the Engineer-in-Charge

whose decision thereon shall be final and conclusive and no claim for losses alleged to have

been caused by such discrepancies between instructions, or doubts, or misunderstanding

shall in any event be admissible.

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61 ALTERATIONS IN SPECIFICATIONS AND DESIGNS AND EXTRA WORK:

A) The Engineer-in-Charge shall have power to make any alterations in, omissions

from, additions to of substitutions for, the schedule of rates, the original specifications,

drawings, designs and instructions that may appear to him to be necessary or advisable

during the progress of the work and the contractor shall be bound to carry out such altered

/ extra / new items of work in accordance with any instructions which may be given to him

in writing signed by the Engineer-in-Charge and such alterations, omissions, additions or

substitutions shall not invalidate the contract and any altered additional or substituted

work which the contractor may be directed to do in the manner above specified as part of

the work shall be carried out by the contractor on the same conditions in all respect on

which he agree to do the main work. The time for completion of work may be extended for

the part of the particular job at the discretions of the Engineer-in-Charge, for only such

alteration, additions or substitutions of the work, as he may consider as just and

reasonable. The rates for such additional, altered or substituted work under this clause shall

be worked out in accordance with the following provisions:

a) If the rates for the additional, altered or substituted work are specified in the

contract for the work, the contractor is bound to carry out the additional, altered or

substituted work at the same rates as are specified in the contract.

b) If the rates for the additional, altered or substituted work are not specifically

provided in the contract for the work, the rates will be derived from the rates for similar

class of works as specified in the contract for the work. The opinion of the Engineer-in-

Charge as to whether the rates can be reasonably so derived from items in the contracts

will be final and binding on the contractor.

c) If the rates for the altered, additional or substituted work cannot be determined

in the manner specified in sub-clause (a) and (b) above, then the contractor shall inform the

Engineer-in-Charge of the rate which is his intension to charge for such class of work

supported by analysis of the rate or rates claimed, and the Engineer-in-Charge shall

determine the rates on the basis of the prevailing market rates of materials, labour cost at

schedule of labour plus 10% to cover contractor’s supervision, overheads and profit and pay

the contractor accordingly. The opinion of the Engineer-in-Charge as to the current market

rates of materials and the quantum of labour involved per unit of measurement will be final

and binding on the contractor.

d) Provisions, contained in sub-clause (a) to (c) above shall not, however, apply:

Where the value of alterations / additions / deletions or substitutions exceeds beyond plus

or minus 25% of the estimated contract value (i.e. quoted item rates of contractor shall

hold good for variations etc. within plus or minus 25% of estimated contract value)

B) In the event and as a result of such alternatives / additions / substitutions /

deletion, the scope of contract work exceed the value stipulated in the contract by more

than the limits given in clause (d) above, the Contractor shall claim revision of the rates

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supported by the proper analysis in respect of such items for quantities in excess of the

above limits, notwithstanding the fact that the rates for such items exist in the tender for

the main work or can be derived in accordance with the provision of sub-clause (b) of

Clause 61 A, and the Engineer-in-Charge may revise their rates having regard to the

prevailing market rates, and the contractor shall be paid in accordance with the rates so

fixed. But, under no circumstances the contractor shall suspend / stop / slowdown the work

on the plea of non-settlement of rates of items falling under this clause.

62. ACTION WHERE NO SPECIFICATIONS ISSUED:

In case of any class of work for which there is no such specification given by the Owner in

the tender documents, such work shall be carried out in accordance with Indian Standard

Specifications and if the Indian Standard Specifications do not cover the same the work

should be carried out as per standard Engineering Practice subject to the approval of the

Engineer-in-Charge.

63. ABNORMAL RATES:

The contractor is expected to quote rate for each item after analysis of cost involved for the

completion of item/work, considering all specifications and conditions of contract. This will

avoid loss of profit or gain, in case of curtailment or change of specification for any item. In

case it is noticed that the rates for any item, quoted by the tenderer unusually are high or

unusually low it wilt be sufficient cause for the rejection of the tender unless the Owner is

convinced about the reasonableness of the rates on scrutiny of the analysis for such rate to

be furnished by the tenderer on demand.

64. INSPECTION OF WORK:

64.1 The Engineer-in-Charge will have full power and authority to inspect the works at

any time wherever in progress either on the Site or at the contractor’s premises / workshop

where situated premises /workshops of any person, firm or corporation where work in

connect with the contract may be in hand or where materials are being or are to be

supplied, and the contractor shall afford or procure for the Engineer-in-Charge every facility

and assistance to carry out such Inspection. The contractor shall at all time during the usual

working hours and at all other time for which reasonable notice of the intention of the

Engineer in-Charge or his representative to visit the works have been given to the

contractor, either himself be present to receive order and instructions or post a responsible

agent duly accredited in writing for the purpose. Orders given to the contractor’s agent

shall be considered to have the same force as if they had been given to the contractor

himself. The contractor shall give not less than seven days, notice in writing to the Engineer-

in-Charge before covering up or placing any work beyond reach of inspection and

measurement any work in order that the same may be inspected and measured. In the

event of breach of above the same shall be uncovered at contractor’s expense carrying out

such measurement or inspection.

64.2 No materials shall be dispatched by the contractor before obtaining the approval of

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Engineer-in-Charge in writing. The contractor is to provide at all times during the progress

of the work and the maintenance period, proper means of access with ladders, gangways,

etc. and the necessary attendance to move and adopt as directed for inspection or

measurement of the works by the Engine in-Charge.

65. ASSISTANCE TO THE ENGINEERS:

The contractor shall make available to the Engineer-in-Charge, free of cost necessary

instruments and assistance in checking of setting out of works and taking measurement of

66. TESTS FOR QUALITY OF WORKS:

66.1 All workmanship shall be of the respective kinds described in the contract

documents and in accordance with the instructions of the Engineer-in-Charge and shall be

subjected from time to time to such test at contractor’s cost as the Engineer-in-Charge may

direct at place of manufacture or fabrication or on the site or at all or any such places. The

contractor shall provide assistance, instruments, labour and materials as are normally

required for examining, measuring and testing any workmanship as may be selected and

required the Engineer-in-Charge.

66.2 All the tests necessary in connection with the execution of the work as decided by

Engineer-in-Charge shall be carried out at the field-testing laboratory of the Owner by

paying the charges as decided by the Owner from time to time. In case of non-availability of

test facility with the Owner, the required test shall be carried out at the cost of contractor

at government, or any other testing laboratory as directed by Engineer-in-Charge.

66.3 If any tests are required to be carried out in connection with the work or materials

workmanship not supplied by the contractor, such tests shall be carried out by the

contractor as per the instructions of Engineer-in-Charge and cost of such tests shall be

reimbursed by the Owner.

The contractor shall furnish to the Engineer-in-Charge for approval when requested or if

required by the specifications, adequate samples of all materials and finishes to be used in

the work. Such samples shall be submitted before the work is commenced and in ample

time to permit tests and examinations thereof. All materials furnished and finishing applied

in actual work shall be fully identical to the approval samples.

68. ACTION AND COMPENSATION IN CASE OF BAD WORK:

If it shall appear to the Engineer-in-Charge that any work has been executed with unsound,

imperfect or unskilled workmanship or with materials of any inferior description, or that

any materials or articles provided by the contractor for the execution of the work are

unsound or of a quality inferior to that contracted for, or otherwise not in accordance with

the contract, the contractor shall on demand in writing from the Engineer-in-Charge or his

authorised representative, specifying the work, materials or articles complained of,

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notwithstanding that the same have been inadvertently passed, certified and paid for

forthwith shall rectify or remove and reconstruct the works specified and provide other

proper and suitable materials or articles at his own charge and cost, and in the event of

failure to do so within a period to be specified by the Engineer-in-Charge in his demand

aforesaid, the contractor shall be liable to pay compensation at the rate of one percentage

of the estimated cost of the whole work, for every week limited to a maximum of 10 per

cent of the estimated cost of the whole work, while his failure to do so shall continue and in

the case of any such failure the Engineer-in-Charge may on expiry of notice period rectify or

remove and re-execute the work or remove and replace with others, the materials or

articles complained of as the case may be at the risk and expenses of the contractors in all

respects. The decision of the Engineer-in-Charge as to any question arising under this clause

shall be final and conclusive.

69. SUSPENSION OF WORKS:

The contractor shall, if ordered in writing by the Engineer-in-Charge or his representative,

temporarily suspend the works or any part thereof for such period and such time as so

ordered and shall not, after receiving such written order, proceed with the work therein

ordered to be suspended, until he shall have received a written order to proceed therewith.

The contractor shall not be entitled to claim/ compensation for any loss or damage

sustained by him by reason of temporary suspension of the works aforesaid. An extension

of time for completion, corresponding with the delay caused by any such suspension of the

works as aforesaid will be granted to the contractor, should he apply for the same, provided

that suspension was not consequent to any default or failure on the part of the contractor.

70. OWNER MAY DO PART OF WORK:

Upon failure of the contractor to comply with any instructions given in accordance with the

provisions of the contract, the owner has the alternative right, instead of assuming charge

for entire work to place additional labour force, tools, equipments and materials on such

parts of the work, as the owner may designate or also engage another contractor to carry

out the work. In such cases, the owner shall deduct from the amount which otherwise

might become due to the contractor, the cost of such work and materials with ten percent

added to cover all departmental charges and should the total amount thereof exceed the

amount due to the contractor, the contractor shall pay the difference to the owner.

71. POSSESSION PRIOR TO COMPLETION:

The Engineer-in-Charge shall have the right to take possession of or use any completed or

partially completed work or part of the work. Such possessions or use shall not be deemed

to be an acceptance of any work completed in accordance with the contract agreement. If

such prior possession or use by the Engineer-in-Charge delays the progress of work, suitable

adjustment in the time of completion will made and contract agreement shall be deemed to

be modified accordingly.

72. PERIOD OF LIABILITY FROM THE DATE OF COMPLETION OF WORK:

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72.1 The contractor shall guarantee the installation/site work for a period of 06 (six)

Months from the date of completion of work, unless otherwise specified. Any damage that

may lie undiscovered at the time of issue of completion certificate, connected in any way

with the equipment or materials supplied by him or in the workmanship shall be rectified or

replaced by the contractor at his own expense as deemed necessary by the Engineer-in-

Charge or in default, the Engineer-in-Charge may cause the same made good by other

workmen and deduct expenses (for which the certificate of Engineer-in-Charge shall be

final) from any sums that may be then or at any time thereafter, become due to the

contractor or from his security deposit.

72.2 If the contractor feels that any variation in work or in quality of materials or

proportions would be beneficial or necessary to fulfill the guarantee called for, he shall

bring this to the notice of the Engineer-in-Charge in writing. The work will not be considered

as complete and taken over by the Owner until all the temporary works etc., constructed by

the contractor is removed and work site cleaned to the satisfaction of Engineer-in-Charge.

72.3 Care of Works:

From the commencement to completion of works, the contractor shall take full

responsibility for the care of all works including all temporary works, and in case any

damage, loss or injury happens to the works or to any part thereof or to any temporary

work, from any cause whatsoever, he shall at own cost repair and make good the same, so

that at completion, the work shall be in good order and in conformity in every respect with

the requirements of the contract and the Engineer-in-Charge’s instructions.

72.4 Effects prior to taking over:

If at any time, before the work is taken over, the Engineer-in-Charge shall

a) Decide that any work done or materials used by the contractor or any sub-

contractor is defective or not in accordance with the contract or that the works or any

portion thereof are defective or do not fulfill the requirements of contract (all such matters

being herein after called ‘Defects’ in this clause) and

b) As soon as reasonably practicable, notice given to the contractor in writing of the

said decisions specifying

Particulars of the defects alleged to exist or to have occurred, then the contractor shall at

his own expenses and with all speed make good the defects so specified.

In the case contractor shall fail to do so, the Owner may take, at the cost of the contractor,

such steps as may in all circumstances, be reasonable to make good such defects. The

expenditure, so incurred by the Owner shall be recovered from the amount due to the

contractor. The decision of the Engineer-in-Charge with regard to the amount be recovered

from the contractor will be final and binding on the contractor. As soon as the works have

been completed in accordance with the contract (except in minor respects that do not

affect their use for the purpose for which they are intended and except for maintenance

thereof provided in clause 72.1) and have passed the tests on completion, the Engineer-in-

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Charge shall issue a certificate (hereinafter called completion certificate) in which he shall

certify the date on which the work have been so completed and have passed the said tests

and the Owner shall be deemed to have taken over the works on the date so certified. If the

works have been divided into various groups in the contract, the Owner shall be entitled to

take over any group or groups before the other or others and thereupon the Engineer-in-

Charge shall issue a completion certificate which will however, be for such group or groups

as taken over only.

72.5 Defects after taking over:

In order that the contractor could obtain a completion certificate, he shall make good with

all possible speed, any defect arising from the defective materials supplied by the

Contractor or workmanship or any act of omission of the contract that may have been

noticed or developed after the works or group of the works has been taken over. The

period allowed for carrying out such work will be normally one month. If any defect be not

remedied within a reasonable time, the Owner may proceed to do the work at the

contractor’s risk and expense and deduct from the final bill such amount as may be decided

by the Owner. If by reason of any default on the part of the contractor a completion

certificate has not been issued in respect of every portion of the work within one month

after the date fixed by the contract for the completion of the works, the Owner shall be at

his liberty to use the works or any portion thereof in respect of which a completion

certificate has been issued provided that the works or the portion thereof so used as

aforesaid shall be afforded reasonable opportunity for completing these works for the issue

of completion certificate.

72.6 The Security Deposit/retention money deducted / furnished as per clause 18 of GCC

shall be retained for the period of liability as given in clause 72.1 above. This Retention

amount or Bank Guarantee furnished against Security Deposit/retention money shall be

released only on expiry of the period of liability and also based on the certification of the

Engineer-in-charge that no defect/damage has been reported / observed during the

stipulated period of liability for the contract.

72.7 Performance of contractor shall be evaluated on each job by Engineer-in-Charge and

recorded. Review of performance will be carried out at appropriate intervals by BPCL.

BILLS / MEASUREMENT / PAYMENT

73. SCHEDULE OF RATES AND PAYMENTS:

i) Contractor’s Remuneration

The price to be paid by the Owner to contractor for the whole of the work to be done and

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the performance of all the obligations undertaken by the contractor under the contract

documents shall be ascertained by the application of the respective item rates (the inclusive

nature of which is more particularly defined by way of application but not of limitation, with

the succeeding sub-clause of this clause) and payment to be made accordingly for the work

actually executed and approved by the Engineer-in-Charge. The sum so ascertained shall

(excepting only as and to the extent expressly provided herein) constitute the sole and

inclusive remuneration of the contractor under the contract and no further payment

whatsoever shall be or become due or payable to the contractor under the contract.

ii) Schedule of rates to be inclusive:

The prices/rates quoted by the contractor shall remain firm till the issue of final completion

certificate and shall not be subject to escalation. Schedule of rates shall be deemed to

include and cover all costs, expense and liabilities of every description and all risk of every

kind to be taken in executing, completing and handing over the work to the Owner by the

Contractor. The Contractor shall be deemed to have known the nature, scope, magnitude

and the extent of the works and materials required, though the contract document may not

fully and precisely furnish them. He shall make such provision in the item rates as he may

consider necessary to cover the cost of such items of work and materials as may be

reasonable and necessary to complete the works. The opinion of the Engineer-in-Charge as

to the items of work which are necessary and reasonable for completion of work shall be

final and binding on the contractor, although the same may not be shown on or described

specially in contract documents.

Generality of this present provision shall not be deemed to cut down or limit in any way

because in certain cases it may and in other cases it may not be expressly stated that the

contractor shall do or perform a work or supply articles or perform services at his own cost

or without addition of payment or without extra charges or words to the same effect or

that it may be stated or not stated that the same are included in and covered by the

schedule of rates.

iii) Schedule of Rates to Cover Constructional Equipments, Materials, Labour etc.

Without in any way limiting the provisions of the preceding sub-clause the schedule of rates

shall be deemed to include and cover the cost of all constructional equipment, temporary

work (except as provided for herein), pumps, materials, labour, the insurance, fuel, stores

and appliances to be supplied by the contractor and other matters in connection with each

item in the schedule of rates and the execution of the works or any portion thereof,

finished, complete in every respect and maintained as shown or described in the contract

documents or may be ordered in writing during the continuance of this contract.

iv) Schedule of Rates to cover Royalties, Rents and Claims:

The Schedule of Rates shall be deemed to include and cover the cost of all royalties and fees

for the articles and processes, protected by letters, or otherwise incorporated in or used in

connection with the works, also all royalties, rents and other payments in connection with

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obtaining materials of whatsoever kind for the works and shall include an indemnity to the

Owner which the contractor hereby gives against all actions, proceedings, claims damages,

costs and expenses arising from the incorporation in or use on the works of a such articles,

processes or materials, Octroi or other municipal or local Board charges levied on materials,

equipment or machineries to be brought to site for use on work shall be borne by the

v) Schedule of Rates to Cover Taxes and Duties:

No claim or exemption or reduction of customs duties, excise duties, sales tax, quarry or

any port dues, transport charges, stamp duties or Central or States Government or Local

Body or Municipal Taxes or duties, taxes or charges (from or of any other body),

whatsoever, will be granted or obtained, all of which expenses shall be deemed to be

included in and covered by the Schedule of Rates. Contractor shall also obtain and pay for

all permits, or other privileges necessary to complete work.

vi) Schedule of Rates to cover Risk of Delay:

The schedule of Rates shall be deemed to include and cover the risk of all possibilities of

delay and interference with the contractors conduct of work which occur from any cause

including orders of owner in the exercises of his powers and on account of extension of

time granted due to various reasons and for all other possible or probable cause of delay.

vii)Schedule of Rates cannot be altered:

For work under unit rate basis, no alteration will be allowed in the schedule of Rates by

reason of work or any part of them being modified, altered, extended, diminished or

omitted. The schedule of Rates are fully Inclusive rates which have been fixed by the

contractor and agreed to the Owner and cannot be altered.

For lumpsum contract, the payment will be made according to the work actually carried out

for which purpose an item wise or workwise, Schedule of rates shall be furnished, suitable

for evaluating the value of work done and preparing running account bills.

74. PROCEDURE FOR MEASUREMENT / BILLING OF WORK IN PROGRESS: i)

All measurements shall be in metric system. All the works in progress will be jointly

measured by the representative of the Engineer-in-Charge and the Contractor’s authorise

agent progressively. Such measurement will be got recorded in the measurement book by

the Engineer-in-Charge or his authorised representative and signed in token of accepted by

the contractor or his authorised representative.

For the purpose of taking joint measurement the contractor’s representative shall be bound

to be present whenever required by the Engineer-in-Charge. If, however, he absents for any

reason whatsoever the measurement will be taken by the Engineer-in-Charge or his

representative and this will be deemed to be correct and binding on the contractor.

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The contractor will submit a bill to the Engineer-in-Charge of the work giving abstract and

detailed measurements for the various items executed during a month, before the expiry of

the 1st week of the succeeding month. The Engineer-in-Charge shall take or cause to be

taken the requisite measurements for the purpose of having the same verified and the

claim, as far as admissible, adjusted, if possible, before the expiry of 10 days from

presentation of the bill.

iii) Dispute in Mode of Measurements:

In case of any dispute as to the mode of measurement not covered by the contract to be

adopted for any item of work, mode of measurement as per latest Indian Standard

Specifications shall be followed.

75. LUMPSUMS IN TENDER:

For the items in tender where it includes lumpsum in respect of parts of work, the

contractor shall be entitled to payment in respect of the items at the same rates as are

payable under this contract for such items, or if part of the work in question is not In the

opinion of the Engineer-in-Charge capable of measurement of determination, the owner

may at his discretion pay the lumpsum amount entered In the tender or a percentage

thereof and the certificate In writing of the Engineer-in-Charge shall be final and conclusive

against the contractor with regards to any sum or sums payable to him under the provisions

76. RUNNING ACCOUNT PAYMENTS TO BE REGARDED AS ADVANCES:

All running account payments shall be regarded as payment by way of advance against the

final payment only and not as payments for work actually done and completed and shall not

preclude the requiring of bad, unsound and imperfect, or unskilled work to be removed and

taken away and reconstructed or re-erected or be considered as an admission of the due

performance of the contract, or any part thereof in this respect, or of the accruing of any

claim by the contractor, nor shall it conclude, determine or affect in any way the powers of

the Owner under these conditions or any of them as to the final settlement and the

adjustments of the accounts or otherwise, or in any other way vary or affect the contract.

The final bill shall be submitted by the contractor within one month of the date of physical

completion of the work, and settled immediately but not later than 60 days otherwise the

Engineer-in charge’s certificate of the measurement and of total amount payable for the

work accordingly shall be final and binding on all parties. The final bill shall be presented by

the contractor along with ‘No claim certificate’ in a format acceptable to the owner or such

other documents as directed by the owner.

77. EXTRA WORK:

Should the contractor consider that he is entitled to any extra payment for extra job carried

out whatsoever in respect of the works, he shall forthwith give notice in writing to the

Engineer-in-Charge that he claims extra payment for the extra work. Such notice shall be

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given to the Engineer-in-Charge within one week from the ordering of any extra work or

happening of any event, upon which the contractor bases such claims, and such notice shall

contain full particulars of the nature of such claim with full details and amount claimed.

Failure on part of the contractor to put forward any claim with the necessary particulars as

above within the time above specified

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shall be an absolute waiver thereof. No omission by the owner to reject any such claim and

no delay in dealing therewith shall be waiver by the owner of any rights in respect thereof.

78. PAYMENT OF CONTRACTOR’S BILL:

Generally no payment shall be made for works estimated to cost less than Rs. 50,000/- till

the whole of the work shall have been completed. But in case of works estimate to cost

more than Rs. 50,000/- the contractor on submitting the bill thereof be entitled to receive a

monthly payment proportion to the part thereof approved and passed by the Engineer-in-

Charge, whose certificate of such approval and passing of the sum so payable shall be final

and conclusive against the contractor. This payment will be made after making necessary

deductions as stipulated elsewhere in the contract document for materials, security deposit

or any moneys due to the Owner etc.

79. MODE OF PAYMENT:

Payment will be made to the contractor normally through NEFT mode.

80. COMPLETION CERTIFICATE:

80.1 Application for Completion Certificate:

When the contractor fulfills his obligation under clause 72.4, he shall be eligible to apply for

completion certificate. The contractor may apply for separate completion certificate respect

of each such portion of the work by submitting the completion documents along with such

application for completion certificate.

The Engineer-in-Charge shall normally issue to the contractor the completion certificate

within one month after receiving an application therefore from the contractor after

verifying from the completion documents and satisfying himself that the work has been

completed in accordance with and as set out in the construction and erection drawings and

the contract documents.

The contractor, after obtaining the completion certificate is eligible to present the final bill

for the work executed by him under the terms of contract.

80.2 Completion Certificate:

The contractor shall be furnished with a certificate by the Engineer-in-Charge of such

completion, but no certificate shall be given nor shall the work be deemed to have been

executed until all scaffolding surplus materials and rubbish is cleared off the site completely

or until the work shall have been measured by the Engineer-in-Charge whose measurement

shall be binding and conclusive. The work will not be considered complete and taken over

by the Owner, until all the temporary works, labour and staff colonies etc. constructed are

removed and the work site cleaned of all debris etc., as described in clause in 80.3 below

and to the satisfaction of the Engineer-in-Charge.

If the contractor shall fail to comply with the requirements of this clause on or before the

date fixed for the completion of the work, the Engineer-in-Charge may at the expenses of

the contractor remove such scaffolding, surplus materials and rubbish and dispose off the

same as he thinks fit and clean off such dirt as aforesaid, and the contractor shall forthwith

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pay the amount of all expenses so incurred and shall have no claim in respect of any such

scaffolding or surplus materials as aforesaid except for any sum actually realised by the sale

80.3 Clearing the site:

Cart away all debris generated from the work and dispose it off without giving rise to any

complaints from local, municipal or government authorities. Metal scraps or any other

scrap including wooden packing materials shall be disposed as instructed by the Engineer-

in-Charge or as follows:

a) All unused scrap steel bar/ structural steel sections/pipe materials etc., (Free

issue by owner) shall be the property of the owner and the same shall be returned by the

contractor category-wise at their own cost to Owner’s store. The weighment slip issued by

the Warehouse (in original) is required to be attached along with the final bill/ material

reconciliation statement. In case, the material is supplied by the contractor, as per their

scope of work, the scrap material generated out of the same should be taken out at their

own cost before the settlement of the final bill.

b) Insulation material (either issued by owner to the contractor or supplied by

contractor) shall be kept in the area allocated by owner. During the insulation activities, the

contractor should keep the work area clean on day-to-day basis. On completion of

insulation job, all debris/packing should be taken out to the designated location or as

directed by the Engineer in charge for disposal at their own cost before the settlement of

the final bill.

80.4. The financial implication of above, if any, should be taken care of in the quoted

rates; and no separate claim shall be entertained on this account. The final bill of the

contractor shall be linked with the area cleaning in all respects, including removal of

shuttering material, disposal of debris/scrap etc. to the entire satisfaction of Engineer-in-

81. FINAL DECISION AND FINAL CERTIFICATE:

Upon Expiry of the period of liability and subject to the Engineer-in-Charge being satisfied

that the works have been duly maintained by the contractor during monsoon or such period

as herein before provided in clause 72 and that the contractor has in all respect duly made

up any subsidence and performed all his obligations under the contract, the Engineer-in-

Charge shall (without prejudice to the rights of the Owner to retain the provisions of

relevant clause hereof) give a certificate herein referred to as the final certificate to that

effect. The contractor shall not be considered to have fulfilled the whole of his obligations

under the contract until Final Certificate have been given by the Engineer-in-Charge

notwithstanding any previous entry upon the work and taking possession, working or using

of the same or any part thereof by the owner.

82. CERTIFICATE FOR PAYMENTS AND EVIDENCE OF COMPLETION:

Except the final certificate, no other certificate or payments against a certificate or on

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general account shall be taken to be an admission by the Owner of the due performance of

the contract or any part thereof or occupancy or validity of any claim by the contractor.

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TAXES/DUTIES/INSURANCE

83. TAXES, DUTIES, OCTROI ETC.:

The contractor agrees to and does hereby accept full and exclusive liability for the payment of any

and all taxes, duties, octroi etc. now in force or hereafter Imposed, increased or modified, from

time to time in respect of work and materials and all contributions and taxes for unemployment

compensation, insurance and old age pensions or annuities now or hereafter imposed by any

Central or State Government authorities which are imposed with respect to or covered by the

wages, salaries, or other compensations paid to the persons employed by the contractor and the

contractor shall be responsible for the compliance with all obligations and restrictions imposed by

the Labour Law or any other law affecting employer - employee relationship and the contractor

further agrees to comply and secure the compliance by all sub-contractors, with all applicable

Central, State, Municipal and local laws and regulations and requirements of any Central, State or

Local Government agency or authority. Contractor further agrees to defend, indemnify and hold

harmless from any liability or penalty which may be Imposed by the Central, State of Local

Authority by reason of any violation by contractor or sub-contractor of such laws, regulations or

requirements and also from all claims, suits or proceeding that may be brought against the Owner

arising under, growing out of, or by reason of the work provided for by this contract by third

parties, or by Central or State Government authority or any administrative sub-division thereof.

Contractor shall at his own expenses carry and maintain insurance with reputable insurance

companies to the satisfaction of the Owner as follows:

i) Employees State Insurance Act:

The Contractor agrees to and does hereby accept full and exclusive liability for the compliance with

all obligations imposed by the Employees State Insurance Act, 1948, and the contractor further

agrees to defend, indemnify and hold Owner harmless from any liability or penalty which may be

imposed by the Central, State or Local Authority by reason of any asserted violation by contractor

or sub-contractor, of the Employee State Act, 1948 and also from all claims suits or proceedings

that may be brought against the Owner arising under, growing out of or by reason of the work

provided for by this contract whether brought by employees of the contractor, by third parties or

by Central or State Government authority or any political sub-division thereof.

The contractor agrees to filing, with the Employees State Insurance Corporation, the Declaration

Forms and all forms which may be required in respect of the contractor’s or sub-contractor’s

employees whose aggregate remuneration as fixed by the concerned authorities and who are

employed in the work provided for or those covered by ESI Act under any amendment to the Act

from time to time. The contractor shall deduct and secure the agreement of the sub-contractor to

deduct the employee’s contribution as per the first schedule of the Employee State Insurance Act

from wages and affix the Employee’s contribution Cards at Wages payment intervals. The

contractor shall remit and secure the agreement of the sub-contractor to remit to the authorized

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bank, Employee’s State Insurance Corporation Account, the Employee’s contribution as required by

the Act. The contractor agrees to maintain all Cards and records as required under the Act in

respect of employees and the payments and the contractor shall secure the agreement of the

subcontractor to maintain such records. Any expenses incurred for the contribution, making

contribution or maintaining records shall be to the contractor’s or sub-contractor’s account.

The Owner shall retain such sum as may necessary, from the total contract value until contractor

shall furnish satisfactory proof that all contributions as required by the Employees State Insurance

Act, 1948, have been paid.

ii) Workman’s Compensation and Employee’s Liability Insurance:

Insurance shall be effected for all the Contractor’s employees engaged in the performs of this

contract, if any of the work is sublet, the contractor shall require the sub-contractor to provide

workman’s compensation and employer’s liability Insurance for the latter’s employees if such

employees are not covered under the contractors insurance.

iii) Any other Insurance Required Under Law or Regulations or by Owner:

Owner shall cover Project Material and Equipments under and over all Marine-cum-Erection

Insurance Policy. Contractor shall carry and maintain any and all other insurance which be required

under any law or regulation from time to time. He shall also carry and main any other insurance

which may be required by the Owner.

iv) Automobile Liability Insurance:

Contractor shall take out an Automobile Liability Insurance to cover all risks to Owner for each of

his vehicles plying on works of this contract and these insurance shall be valid for the total contract

period. No extra payments will be made for this insurance. Owner shall not be liable for any

damage or loss not made good by the insurance company, should such damage or toss result from

unauthorised use of the vehicle.

85. DAMAGE TO PROPERTY:

i) Contractor shall be responsible for making good, to the satisfaction of the Owner

any loss of and any damage to all structures and properties belonging to the Owner or being

executed or procured or being procured by the Owner or of other agencies within the premise all

the work of the Owner, if such loss or damage is due to fault and/or the negligence willful acts or

omission of contractor, his employees, agents, representative or \ sub-contractor.

ii) The contractor shall indemnify and keep the Owner harmless of all claims for

damage to property other than Owner’s property arising under or by reason of this agreement if

such claims results from the fault and/or negligence or willful acts or omission of contractor, his

employees, agents, representatives or sub-contractors.

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LABOUR LAWS AND OTHER REGULATIONS

86. LABOUR LAWS:

i) No labour below the age of eighteen years shall be employed on the work.

ii) The contractor shall not pay less than what is provided under the Minimum Wages

Act for the applicable trade or category of workman to the worker engaged by him on the work and

also ensure that any sub-contractors engaged by him also pay not below the applicable minimum

wages under the Act and hold the company, indemnified in respect of any claims that may arise in

respect or non-compliance with this requirements.

iii) The contractor shall observe all the formalities required under the provisions of the

contract labour (Regulation and abolition) Act 1970 and the rules made thereunder and as may be

amended from time to time. He shall pay the required deposit under the Act Appropriate to the

number of workmen to be employed by him or through sub-contractor and get him self registered

under the Act. He shall produce the certificate of registration granted by the Govt. authority under

the Act to the company before commencement of work. The company recognises only the

contractor and not his sub-contractors under the provisions of the Act. The contractor will have to

submit daily a list of his employees, who will be entering the Company’s premises for the work

awarded. He will also keep his wage register available at all times as close to the work site as

possible and produce the same for inspection whenever required by designated Company officials.

If the company so desires, a deposit may be taken from the Contractor to be refunded only after

the Company is satisfied that all the workmen employed by the contractor have been fully paid for

the period of work in Company’s premises at least at rates equal to or better than wages provided

for under the Minimum Wages Act.

iv) The Contractor will comply with the provisions of the employee’s Provident Fund Act

and the Family Pension Fund Act as may be applicable and as amended from time to time.

Contractor shall obtain their own provident fund account number. Offer of the contractor who

does not have provident fund account will be liable for rejection.

v) The Contractor will comply with the provisions of the Payment of Gratuity Act

as may be applicable and as amended from time to time.

87. IMPLEMENTATION OF APPRENTICES ACT 1961:

The Contractor shall comply with provisions of the Apprentices Act 1961 and the Rules/orders

issued thereunder from time to time. If he fails to do so, his failure will be breach of the contract

and the Engineer-in-Charge may, at his discretion, cancel the contract. The contractor shall also be

liable for any pecuniary liability arising on account of any violation by him of the provision of the

88. CONTRACTOR TO INDEMNIFY THE OWNER:

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i) The contractor shall indemnity the owner and every member, officer and employee

of the Owner, also the Engineer-in-Charge and his staff against all actions, proceedings, claims,

demands, costs, and expenses whatsoever arising out of or in connection with the matters referred

to in clause 84 and all actions/ proceedings, claims, demands, costs and expenses which may be

made against the Owner for or in respect of or arising out of any failure by the contractor in the

performance of his obligations under the contract documents. The Owner shall not be liable for or

in respect of any demand or compensation payable by law in respect of or in consequence of any

accident or injury to any workmen or other person in the employment of the contractor or his sub-

contractor and contractor shall indemnify and keep indemnified the Owner against all such

damages and compensations and against all claims, damage, proceedings, costs, charges and

expenses whatsoever, thereof or in relation thereto.

ii) Payment of Claims and Damages:

Should the Owner have to pay any money in respect of such claims or demands as aforesaid the

amount so paid and the costs incurred by the Owner shall be charged to and paid the Contractor

and the contractor shall not be at liberty to dispute or question the rig of the Owner to make such

payments notwithstanding the same may have been made without his consent or authority or in

law or otherwise to the country.

In every case to which by virtue of the provisions of Section 12, sub-section (I) of workmen’s

compensation Act 1923 or other applicable provisions of workmen’s Compensation Act any other

Act, the Owner is obliged to pay compensation to a workmen employed by contractor in execution

of the works, the Owner will recover from the contractor the amount of compensation so paid and

without prejudice to the rights of Owner under Section 12 sub-section (2) of the said Act. Owner

shall be at liberty to recover such amount or any part thereof by deducting it from the security

deposit or from any sum due to the contractor whether under the contract or otherwise. The

Owner shall not be bound to contest any clime made under Section 12, sub-section (I) of the said

Act except on the written request of contractor and upon his giving to the Owner full security for all

costs for which the Owner might become liable on consequence of contesting such claims.

iii) Employment Liability:

a) The contractor shall be solely and exclusively responsible for engaging or

employing persons for the execution of work. All employees engaged by the contractor shall be on

his/ their payroll and paid by him/ them. All disputes or differences between the contractor and

his/ their employees shall be settled by him/ them. Owner has absolutely no liability whatsoever

concerning the employees of the contractor. The contractor shall indemnify owner against all loss

or damage or liability arising out of or in the course of his/ their employees. The contractor shall

make regular and full payment of wages without giving any complaint by any employee of the

contractor or his sub-contractor regarding non-payment of wages/ salaries or other dues. Owner

reserves the right to make such payments directly, to such employee or sub-contractor of the

contractor and recover the amount in full from the bills of Contractor, and the contractor shall not

claim any compensation or reimbursement thereof. The Contractor shall comply with the Minimum

Wages Act applicable to the area with regard to payment of wages of his employees and also of

employees of his sub-contractor.

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b) The Contractor shall advise in writing to all of his employees and the

employees of his sub-contractor as follows:

It is fully understood that your appointment and/ or deployment is only in connection with the

owner and it does not give you any right of claim for employment by owner.

89. HEALTH AND SANITARY ARRANGEMENTS FOR WORKERS:

In respect of all labour directly employed in the works for performance of the contractor’s par this

agreement, the contractor shall comply with or cause to be complied with all the rules and

regulations of the local sanitary and other authorities or as framed by the Owner from time to time

for the protection of health and sanitary arrangements for all workers.

90. SAFETY REGULATIONS:

i) In respect of all labour, directly or indirectly employed In the work for the

performance of contractor’s part of this agreement, the contractor shall at his own expenses

arrange for all safety provisions as per safety codes of C.P.W.D. Indian Standard Institution, the

Electricity Act, The Mines Act and any such other acts as applicable.

ii) The Contractor shall ensure that he, his sub-contractor and his, or their personnel or

representatives shall comply with all Fire / Safety regulations issued from time to time by the

Company or otherwise howsoever and should any injury resulting in death or not or loss / or

damage due to Fire to any property or a portion thereof, occurred as a result of failure to comply

with such regulations, the contractor shall be held responsible for the consequences thereof and

shall keep the company harmless and indemnified.

91. ARBITRATION:

a) Any dispute or difference of any nature whatsoever, any claim, cross-claim, counter-

claim or set off of BPCL against the Contractor or regarding any right, liability, act, omission on

account of any of the parties hereto arising out of or in relation to this agreement shall be referred

to the sole Arbitration of the concerned Director (herein after named as Director) of the BPCL or of

some officer of the BPCL who may be nominated by the concerned Director. The Contractor will

not be entitled to raise any objection to any such arbitrator on the ground that the arbitrator is an

Officer of the BPCL or that he has dealt with the matters to which the contract relates or that in the

course of his duties as an Officer of the BPCL he had expressed views on all or any other matters in

dispute or difference. In the event of the arbitrator to whom the matter is originally referred being

transferred or vacating his office or being unable to act for any reason, the Director as aforesaid at

the time of such transfer, vacation of office Or inability to act may in the discretion of the Director

designate another person to act as arbitrator in accordance with the terms of the agreement to the

end and intent that the original Arbitrator shall be entitled to continue the arbitration proceedings

not withstanding his transfer or vacation or office as an Officer of the BPCL if the Director does not

designate another person to act as arbitrator on such transfer, vacation of office or inability of

original arbitrator. Such persons shall be entitled to proceed with the reference from the point at

which it was left by his predecessor. It is also a term of this contract that no person other than the

Director or a person nominated by such Director of the BPCL as aforesaid shall act as arbitrator,

hereunder. The award of the arbitrator so appointed shall be final conclusive and binding on all

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parties to the agreement subject to the provisions of the Arbitration and Conciliation Act, 1996 or

any statutory modification or re-enactment thereof and the rules made thereunder for the time

being in force shall apply to the arbitration proceedings under this clause.

b) The arbitrator shall have power to order and direct either of the parties to abide by,

observe and perform all such directions as the arbitrator may think fit having regard to the matters

in difference i.e. dispute before him. The arbitrator shall have all summary powers and may take

such evidence oral and/ or documentary, as the arbitrator in his absolute discretion thinks fit and

shall be entitled to exercise all powers under the Arbitration and Conciliation Act, 1996 including

admission of any affidavit as evidence concerning the matter in difference i.e. dispute before him.

c) The parties against whom the arbitration proceedings have been initiated, that is to

say the Respondents in the proceedings, shall be entitled to prefer a cross-claim, counter-claim or

set off before the Arbitrator in respect of any matter an issue arising out of or in relation to the

Agreement, without seeking a formal reference of arbitration to the Director for such counter-

claim, cross or set off and the Arbitrator shall be entitled to consider and deal with the same as if

the matters arising therefrom has been referred to him originally, and deemed to form part of the

reference made by the Director.

d) The arbitrator shall be at liberty to appoint, if necessary, any accountant or

engineering or other technical person to assist him and to act by the opinion so taken.

e) The arbitrator shall have power to make one or more awards whether interim or

otherwise, in respect of the dispute and difference and in particular will be entitled to make

separate awards in respect of claims or cross-claims of the parties.

f) The arbitrator shall be entitled to direct any one of the parties to pay the costs of

the other party in such manner and to such extent as the arbitrator may in his discretion determine

and shall also be entitled to require one or both the parties to deposit funds in such proportion to

meet the arbitrators’ expenses whenever called upon to do so.

g) The parties hereby agree that the courts in the city of Mumbai/(Ernakulam-in the

case of Kochi Refinery), alone shall have jurisdiction to entertain any application or other

proceedings in respect of anything arising under this agreement and any award or awards made by

the Sole Arbitrator hereunder shall be filed in the concerned courts in the city of

Mumbai/(Ernakulam-in the case of Kochi Refinery), only.

92. JURISDICTION:

The contractor shall be governed by the Laws in force in INDIA. The contractor hereby submits to

the jurisdiction of the Courts situated at Mumbai/(Ernakulam-in the case of Kochi Refinery), for the

purpose of actions and proceedings arising out of the contract and the courts at

Mumbai/(Ernakulam-in the case of Kochi Refinery), only will have jurisdiction to hear and decide

such actions and proceedings.

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MEMORANDUM OF AGREEMENT

An agreement made this ___________day __________of ____________20___ between BHARAT

PETROLEUM CORPORATION LIMITED a Company Incorporated in India and having its registered

office at Ballard Estate, Mumbai, (herein after referred to as ‘the Company’ which expression shall

include its heirs, legal representatives, successors and permitted assignees) of the one part, and

(herein after referred to as “The Contractor” which expression shall include its heirs, legal

representatives, successors and permitted assignees) of the other part, whereby it is agreed:-

1. The Contractor shall carry out and complete the work as mentioned in the Purchase

order/Contract No._________________ dated ______________, (hereinafter referred to as “the

work”) for the Company at its specified site to its complete satisfaction in accordance with the

specifications, schedule of rates and plans attached as per Purchase order/Contract and with the

instructions given from time to time, by the Company’s authorized engineer under whose

supervision the work shall be-executed. The parties hereto agree that this agreement shall be

effective from the date of the aforesaid Purchase Order/Contract.

2. Inspection of site: The Contractor has been given an opportunity before or at the time of

the entrusting of the work to him of making an inspection of the site to set at rest any doubt he

may have had about the difficulties attending his offer, and any difficulties which may be met with

by him in the course of the execution of the work shall neither relieve him from fulfilling the terms

of this Agreement, nor entitled him to claim extra payment or an extension of the period stipulated

for the completion of the work, except where it will be agreed by the Company’s authorized

Engineer that such difficulties could not have been foreseen.

3. Supply of Labour and Materials: The Contractor shall furnish all labour, materials,

equipment or tools necessary for the construction of the work, except such materials, equipment

or tools as will be supplied by the Company and are detailed in Purchase order/Contract. The

contractor will assume full responsibility for the protection and safety of the work during its

construction. The details and dimensions shown on the said plans referred to in the Purchase

order/Contract shall be strictly adhered to by the contractor and no alterations shall be made

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therein unless previous sanction thereto has been given in writing by the Company.

(a) The Contractor shall prepare detailed and shop drawings and any other data

(b) All materials supplied by the Contractor shall be of the best quality. The Contractor

shall at his own cost arrange for and/or carry out any test of materials, which the Company’s

authorized Engineer may require.

(c) The Contractor shall at the request of the Company’s authorized Engineer

immediately dismiss from the work any person employed thereon who, in the opinion of the

Company’s authorized Engineer, is unsuitable or incompetent or who, has been guilty of

misconduct, and such person shall not again be employed or allowed on the works without the

permission of the Company, in writing.

4. E. & O. E. No advantage is to be taken either by the Company or the Contractor of any

clerical error or mistake, which may occur in the specification, schedule of rates, plans, tender or

any other papers supplied to or by the contractor in connection with the work.

5. Damage on account of Incomplete work: The Contractor shall commence the work and shall

complete the work as mentioned in Purchase order/Contract failing which the Contractor shall pay

or allow to the Company to recover as liquidated damages, at the rate of minimum 0.5% per week

of delay or part there of up to a maximum of 5% of the total contract value, if Liquidated damages

clause is made applicable in the contract. Such damages may be deducted by the Company from

any amount due to the contractor; otherwise they shall be recoverable by lawful means.

6. a) Determination of the Agreement: The company shall, at any time, be entitled to

determine and terminate the contract, if in the opinion of the company, the cessation of the work

becomes necessary owing to paucity of funds or for any other cause whatsoever. On such

determination / termination, the cost of approved materials, brought by the contractor and lying at

the site, at current market rates as verified and approved by company’s engineer and of the value

of the work done to date by the contractor shall be paid for in full at the rate specified in the

contract. A notice in writing from the company to the contractor of such determination and

termination and reasons therefore shall be the conclusive proof of the fact that the contract has

been so determined and terminated by the company.

Should the contract be determined as above and the contractor claims payment to compensate

expenditure incurred by him in the expectation of completing the work, the company shall consider

and admit such claim as are deemed fair and reasonable and are supported by the vouchers to

satisfaction of the engineer-in-charge. The company’s decision on the necessity and propriety of

such expenditure shall be final and conclusive and binding on the contractor.

The contractor shall not be entitled to get any possible loss of profit that he could have earned had

the contract been not determined / terminated under the above clauses of this article.

7. Termination/Offloading: The contractor fully understands that timely completion of the

work as per the schedule is of paramount necessity as otherwise it would lead to adversely

affecting the schedules of other works/project with resultant financial and other losses to the

Company. In view of this, the contractor unconditionally agrees and binds himself to be liable for all

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the consequences for non-completion of the work within the stipulated time.

In case a situation is brought about by the contractor warranting termination/off-loading of the

whole or any part of the work for any reason whatsoever, the Company shall have the liberty and

right to entrust/engage/award the work so terminated off loaded at the risk and cost of the

contractor to any other agency/contractor by adopting any mode of inviting tenders, i.e.

open/limited/single party/negotiation basis etc. in order to ensure completion of the work as per

the schedule or at the quickest possible time.

8. Defective Work / Materials: If the work done by the Contractor or any part there of shall be

found defective in workmanship or by reason of bad or inferior materials used, then in such case he

shall at his own risk and cost without delay, demolish all such defective work and rebuild or replace

the same in a satisfactory manner. The Company may, if necessary, at the cost and risk of the

Contractor, temporarily stop all other activities by the Contractor in connection with the work until

such time as the defective work has been rebuilt or replaced at the Contractor’s cost. In case of

default on the part of the contractor to remove defectives work and rebuild or replace the same

without delay and in a manner satisfactory to the Company, the Company shall be entitled to

employ another Contractor or its own workman to carry out the removal and rebuilding or

replacing at the risk and cost of the contractor.

9. Substitution of Contractor : If the Company finds it necessary to employ a person or persons

for the purposes provided in clauses 6 (b) and 7 above, then the Company may deduct and retain

from out of the sums due to the contractor all such amounts as they may require to pay or to

reimburse themselves there from in respect of the costs and expenses which they have incurred in

completing the work and or in removing defective work and rebuilding or replacing the same in a

manner satisfactory to the Company and if such amounts be more than the sums due or thereafter

becoming due to the Contractor, than the balance, shall be a debt recoverable from the Contractor

by the Company. The Contractor shall not in any manner do or cause to be done any act, matter or

things whatsoever to prevent the person or persons so employed by the Company from removing

defective work and re-building or replacing the same in a manner satisfactory to the Company

and/or from, completing the work in the manner aforesaid.

10. Removal of Material: On the Determination of the Agreement as referred to in Clause 6, the

Contractor shall at his own risk and cost remove from site within Seven days all his materials,

equipment and tools. It is agreed that in case of such determination the company shall be entitled

to purchase from the Contractor such materials as will be approved by the Authorized Engineer of

the Company at the prices then current. If the Contractor does not remove the other materials,

equipment and tools which he has been asked to remove within the time prescribed as aforesaid,

the Company may remove and sell the same holding the proceeds less the cost of storage, removal

and sale to the credit of the Contractor. Should Company incur any loss in respect of the sale, it

shall be entitled to recover same from the Contractor.

11. Inspection of work: Inspection will be made periodically during the progress of the work by

the authorized Engineer of the Company and all work performed must be of acceptable quality of

which the said Engineer-in-Charge will be the sole judge.

12. Supervision: The Contractor shall during the whole time the work is in progress, employ one

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or more competent and technical English speaking Supervisors acceptable to the Company’s

authorized Engineer, one of whom at least shall be in constant attendance at the site while persons

are at work there. Any directions, explanations, instructions, or notices in connection with the work

given by the Company’s authorized Engineer to these Supervisors shall be deemed to have been

given to the Contractor.

13. Payment: The Company, in consideration of the contractor carrying out and completing the

said work at the Company’s said site, to the satisfaction of the Company, shall pay the contractor as

per the said schedule of Rates, subject to deductions, retentions and abatements, if any to be

made therefrom in accordance with the provisions of this Agreement. During the progress of the

work and provided the work is progressing according to the time-table laid down to the contractor,

the contractor shall be entitled once a month to receive advance payment on the above mentioned

sum proportionate to such part of the work as shall have been executed during the preceding

month but only after such part of the work as has been executed has been inspected and approved

by the Company’s authorized Engineer. From such interim payments each time 10% will be

withheld as Security deposit and this 10% will be paid to the Contractor after the defect liability

period, provided that any defects appearing during that period are corrected by him.

100% payment will be made on the basis of actual executed quantities after satisfactory

completion and due certification by BPCL Engineer-in-charge. In lieu of 10% Retention money

towards Security deposit, contractor shall submit bank guarantee of equivalent amount of

retention money (10% of contract value) before submission of 1st Running Account (RA) bill valid

for defects liability period specified. Further, the Bank Guarantee shall have a claim period of six

months beyond the date of expiry, and the same shall be mentioned clearly in the Bank Guarantee.

14. Defects after Completion: Any defects which may appear within the defect liability period

specified shall, upon the directions in writing of the Company and within such reasonable time as

shall be specified therein be amended and made good by the Contractor, at his own cost unless the

Company shall decide that the Contractor will be paid for such amending and making good, and in

case of default on the Contractor’s part, the Company may amend and make good or have

amended and made good such defects and all damages, losses and expenses consequent thereon,

incidental to those shall be borne by the Contractor and such damages, losses and expenses shall

be recoverable from him by the Company or may be deducted by the Company from any moneys

due to or thereafter becoming due to the Contractor. Alternatively, the Company may, in lieu of

such amending and making good by the Contractor elect to deduct from any moneys due or

thereafter becoming due to the Contractor a sum to be determined by the Company sufficient to

cover the cost of amending and making good such defects, and in the event of the amount

withheld in accordance with Clause 12 being insufficient, recover the balance from the Contractor

together with any expenses the Company may have incurred in connection with such recovery.

Should any defective work have been done or bad inferior materials supplied by any Sub-

Contractor employed on the work, has been approved by the Company as provided in Clause

the Contractor shall be liable to amend and make good in the same manner as if such work or

materials had been done or supplied by the Contractor. The Contractor shall remain liable under

this Clause notwithstanding the signing by the Company’s authorized Engineer of any certificate or

the passing of any account.

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15. Alterations: The Company reserves the right at any time to alter any quantities of any item

indicated in the Purchase order/Contract, in which case the total amount payable to the Contractor

shall be less or higher, proportionate with the reduction or increase in quantity of such item,

allowance for which will be made at the Contractor’s agreed rates.

16. Subletting Agreement: The Contractor shall not sublet or assign the work or any part

thereof to another party without the written consent of the company and no such subletting or

assignment shall relieve the contractor from the full and entire responsibility of his obligation

under this Agreement.

17. Cancellation: The Company shall at any and all times during the period stipulated for the

work, has the right forthwith to cancel this agreement by giving written notice thereof to the

Contractor and in such case the Contractor shall be paid for such part of the work as has been

executed by him up to the date of cancellation, on the basis of schedule of rates as per Purchase

order/Contract and shall be reimbursed by the Company for the cost and expenses incurred by him

but which would now be wasted as a direct consequence of the cancellation of the Agreement.

18. Workmen’s Compensation Liability: The Contractor shall hold the Company harmless and

indemnified from and against all claims, costs and charges for which the Company shall be liable

under the Workmen’s Compensation Act, 1923 and any amendments thereof and the expenses to

which it shall be put thereunder, both in respect of personal injuries (within the meaning of the

said Act) to the employees and servants of the Contractor or Sub-Contractors, (if any), arising out

of, or occasioned during the currency of this agreement through the acts or omissions, whether

due to negligence or not of the Contractor, Sub-Contractor and/or Company and/or their

respective servants and employees and also in respect of the personal injuries (within the meaning

of the said Act) to the servants and employees of the Company arising out of, or occasioned

through the acts and omissions whether due to negligence or not of the Contractor, Sub-Contractor

and or their servants and employees in carrying out any of the provisions of this Agreement. This

indemnity shall be in addition to and not in lieu of any indemnity to which the Company shall be

entitled in law. The Contractor shall at his own expense effect and maintain, until the completion of

the work, with an approved office a Policy of Insurance in the joint names of the Company and the

Contractor, against such risks and deposit such Policy or policies with the Company from time to

time during the currency of this Agreement. The Contractor shall be responsible for anything not

included in the Insurance Policies above referred to and also for all other damage to person or

property arising out of or incidental to the negligent or defective carrying out of this agreement

and shall keep the Company harmless and indemnified. He shall also indemnify the Company in

respect of any costs, charges or expenses arising out of any claim or proceedings and also in

respect of any award of compensation or damages arising therefrom. The Company shall be

entitled to deduct the amount of any damages compensation costs, charges and expenses arising

or accruing from or in respect of any such claim or damages from any sum or sums due or

thereafter becoming due to the Contractor.

19. Safety Regulation: The Contractor shall ensure that he/his Sub-Contractor and his, or their

personnel or representatives shall comply with all safety regulations issued from time to time by

the Company or otherwise howsoever and should any injury resulting in death or not or damage to

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any property occur as result of failure to comply with such regulations the Contractor shall be held

responsible for the consequences thereof, shall keep the Company harmless and indemnified.

20. Arbitration

a) Any dispute or difference of any nature whatsoever, any claim, cross-claim, counter-

claim or set off of BPCL against the Contractor or regarding any right, liability, act, omission on

account of any of the parties hereto arising out of or in relation to this agreement shall be referred

to the sole Arbitration of the concerned Director (herein after named as Director) of the BPCL or of

some officer of the BPCL who may be nominated by the concerned Director. The Contractor will

not be entitled to raise any objection to any such arbitrator on the ground that the arbitrator is an

Officer of the BPCL or that he has dealt with the matters to which the contract relates or that in the

course of his duties as an Officer of the BPCL he had expressed views on all or any other matters in

dispute or difference. In the event of the arbitrator to whom the matter is originally referred being

transferred or vacating his office or being unable to act for any reason, the Director as aforesaid at

the time of such transfer, vacation of office Or inability to act may in the discretion of the Director

designate another person to act as arbitrator in accordance with the terms of the agreement to the

end and intent that the original Arbitrator shall be entitled to continue the arbitration proceedings

not withstanding his transfer or vacation or office as an Officer of the BPCL if the Director does not

designate another person to act as arbitrator on such transfer, vacation of office or inability of

original arbitrator. Such persons shall be entitled to proceed with the reference from the point at

which it was left by his predecessor. It is also a term of this contract that no person other than the

Director or a person nominated by such Director of the BPCL as aforesaid shall act as arbitrator,

hereunder. The award of the arbitrator so appointed shall be final conclusive and binding on all

parties to the agreement subject to the provisions of the Arbitration and Conciliation Act, 1996 or

any statutory modification or re-enactment thereof and the rules made thereunder for the time

being in force shall apply to the arbitration proceedings under this clause.

b) The arbitrator shall have power to order and direct either of the parties to abide by,

observe and perform all such directions as the arbitrator may think fit having regard to the matters

in difference i.e. dispute before him. The arbitrator shall have all summary powers and may take

such evidence oral and/ or documentary, as the arbitrator in his absolute discretion thinks fit and

shall be entitled to exercise all powers under the Arbitration and Conciliation Act, 1996 including

admission of any affidavit as evidence concerning the matter in difference i.e. dispute before him.

c) The parties against whom the arbitration proceedings have been initiated, that is to

say the Respondents in the proceedings, shall be entitled to prefer a cross-claim, counter-claim or

set off before the Arbitrator in respect of any matter an issue arising out of or in relation to the

Agreement, without seeking a formal reference of arbitration to the Director for such counter-

claim, cross or set off and the Arbitrator shall be entitled to consider and deal with the same as if

the matters arising therefrom has been referred to him originally, and deemed to form part of the

reference made by the Director.

d) The arbitrator shall be at liberty to appoint, if necessary, any accountant or

engineering or other technical person to assist him and to act by the opinion so taken.

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e) The arbitrator shall have power to make one or more awards whether interim or

otherwise, in respect of the dispute and difference and in particular will be entitled to make

separate awards in respect of claims or cross-claims of the parties.

f) The arbitrator shall be entitled to direct any one of the parties to pay the costs of

the other party in such manner and to such extent as the arbitrator may in his discretion determine

and shall also be entitled to require one or both the parties to deposit funds in such proportion to

meet the arbitrators’ expenses whenever called upon to do so.

g) The parties hereby agree that the courts in the city of Mumbai/(Ernakulam-in the

case of Kochi Refinery), alone shall have jurisdiction to entertain any application or other

proceedings in respect of anything arising under this agreement and any award or awards made by

the Sole Arbitrator hereunder shall be filed in the concerned courts in the city of

Mumbai/(Ernakulam-in the case of Kochi Refinery), only.

20. Jurisdiction:

The contractor shall be governed by the Laws in force in INDIA. The contractor hereby submits to

the jurisdiction of the Courts situated at Mumbai/(Ernakulam-in the case of Kochi Refinery), for the

purpose of actions and proceedings arising out of the contract and the courts at

Mumbai/(Ernakulam-in the case of Kochi Refinery), only will have jurisdiction to hear and decide

such actions and proceedings.

21. Minimum Wages:

The Contractor, his executors and administrators (and in the case of a Limited Company, its

successors and assigns) shall hold the Company harmless and indemnified from and against all

claims, costs and charges, for which the Company shall be liable under the Minimum Wages Act,

1948, the Contract Labour (Regulation and Abolition) Act, 1970 and any amendments or

modifications thereof, and all expenses it shall be put thereunder through the acts or omissions

whether willful or not on the part of the Contractor. This indemnity shall be in addition to and not

in lieu of, any indemnity to which the Company shall be entitled in law.

22. Employees State Insurance: This Contractor hereby admits that he is fully aware of his

responsibilities under the Employees State Insurance Act, 1948, as an immediate employer of the

employees engaged by him for the execution of this contract which he agrees to discharge. The

Contractor acknowledge the statutory right of the company (as a Principle Employer) to recover the

amount of the contributions, paid by it in the first instance in respect of the employees employed

by or through him (the Contractor), as well as the employee’s contribution, if any, either by

deduction from any amount payable to him by the Company under any contract or as debt payable

by him to the Company.

In witness where of the said contracting parties have set their hands.

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For Bharat Petroleum Corporation Ltd. For Bharat Petroleum Corporation Ltd.

Contractor’s witness - Signature Contractor’s Signature

Name & Address:- Name & Address:-

PROFORMA OF BANK GUARANTEE

(On non-judicial paper of appropriate value)

FOR EARNEST MONEY / SECURITY DEPOSIT TOWARDS PERFORMANCE

Bharat Petroleum Corporation Ltd.

M/s. ________________________________________________have taken tender for the work

________________________________________ for Bharat Petroleum Corporation Ltd.

The tender Conditions of Contract provide that the Contractor shall pay a sum of

(Rupees___________________________________________) as earnest money/security deposit in

the form therein mentioned. The form of payment of earnest money/security deposit includes

guarantee executed by Scheduled Bank, undertaking full responsibility to indemnify Bharat

Petroleum Corporation Ltd. in case of default.

The said_________________________________________ have approached us and at their request

and in consideration of the premises

____________have agreed to give such guarantee as hereinafter mentioned.

undertake and agree with you that if default shall be made by M/s.

_____________________________________ in performing any of the terms and conditions of the

tender or in payment of any money payable to Bharat Petroleum Corporation Ltd. We shall on

demand pay to you in such matter as to you may direct the said amount of Rupees

_______________________________only or such portion thereof not exceeding the said sum as

you may from time to time require.

2. You will have the full liberty without reference to us and without effecting this guarantee

postpones for any time or from time to time the exercise of any of the powers and rights conferred

on you under the contract with the said _____________and to enforce or to for bear from

endorsing any power of rights or by reason of time being given to the said which under law relating

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to the sureties would but for provision have the effect of releasing us.

3. Your right to recover the said sum of Rs.__________________(Rupees__________________

____________________) from us in manner aforesaid will not be affected or suspended by reason

of the fact that any dispute or disputes have been raised by the said M/s.__________________

_________________and/or that any dispute or disputes are pending before any officer, tribunal or

4. The guarantee herein contained shall not be determined or affected by the liquidation or

winding up, dissolution or change of constitution or insolvency of the said______________

____________________but shall in all respects and for all purposes be binding operative units

payment of all money due to you in respect of such liabilities is paid.

5. Our liability under this guarantee is restricted to

Rupees__________________________________ Our guarantees shall remain in force

until_____________________________________________ unless a suit or action to enforce a

claim under_________________________________________ Guarantee is filed against us within

six months from

_____________________________(which is date of expiry of guarantee) all our rights under the

said guarantee shall be forfeited and shall be relieved and discharged from all liabilities thereunder.

6. We have power to issue this guarantee in your favour under Memorandum and Articles of

Association and the undersigned has full power to do under the Power of Attorney dated

__________________granted to him by the Bank.

Yours faithfully

______________________________ Bank by its Constituted Attorney Signature of a person duly

authorized to sign on behalf of the bank.

BHARAT PETROLEUM CORPORATION LTD

ACKNOWLEDGEMENT

_______________________________ received the copy of GENERAL CONDITIONS OF CONTRACT

and confirm our acceptance to all the terms and conditions as mentioned herein in this General

Conditions of Contract and we are hereby returning this copy of Acknowledgement duly signed.

NIT-Providing Security Services at BPCL Srinagar Depot CRFQ No.-

( Seal / Stamp )

NIT-Providing Security Services at BPCL Srinagar Depot CRFQ No.-

BHARAT PETROLEUM CORPORATION LIMITED

Bharat Petroleum Corporation Limited (BPCL) hereinafter referred to as "The Principal",

M/s ___________________ hereinafter referred to as "The Bidder/ Contractor/ Supplier"

The Principal intends to award, under laid down organization procedures, contract/s for

“PROVIDING SECURITY SERVICES AT BPCL SRINAGAR DEPOT” The Principal values

full compliance with all relevant laws and regulations, and the principles of economic use of

resources, and of fairness and transparency in its relations with its Bidder/s, Contractor/s

and Supplier/s.

In order to achieve these goals, the Principal cooperates with the renowned international

Non-Governmental Organization "Transparency International" (TI). Following TI's national

and international experience, the Principal will appoint Independent External Monitor(s)

(IEM) as detailed in Annexure who will monitor the tender process and the execution of the

contract for compliance with the principles mentioned above.

Section 1 – Commitments of the Principal

1) The Principal commits itself to take all measures necessary to preven t corruption and to

observe the following principles:

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a) No employee of the Principal, personally or through family members, will in connection

with the tender, or the execution of the contract, demand, take a promise for or

accept, for himself/herself or third person, any material or immaterial benefit which

he/she is not legally entitled to.

b) The Principal will, during the tender process, treat all Bidders with equity and reason.

The Principal will, in particular, before and during the tender process, provide to all

Bidders the same information and will not provide to any Bidder confidential /

additional information through which the Bidder could obtain an advantage in relation

to the tender process or the contract execution.

c) The Principal will exclude from the process all known prejudiced persons.

2) If the Principal obtains information on the conduct of any of its employees which is a

criminal offence under the relevant Anti-Corruption Laws of India, or if there be a

substantive suspicion in this regard, the Principal will inform its Vigilance Office and in

addition can initiate disciplinary actions.

Section 2 – Commitments of the Bidder / Contractor / Supplier

1) The Bidder / Contractor / Supplier commits itself to take all measures necessary to prevent

corruption. He commits himself to observe the following principles during his participation

in the tender process and during the contract execution.

a) The Bidder / Contractor/Supplier will not, directly or through any other person or firm,

offer, promise or give to any of the Principal's employees involved in the tender

process or the execution of the contract or to any third person, any material or

immaterial benefit which he/she is not legally entitled to, in order to obtain in

exchange, any advantage of any kind whatsoever during the tender process or during

the execution of the contract.

b) The Bidder / Contractor / Supplier will not enter with other Bidders into any

undisclosed agreement or understanding, whether formal or informal. This applies in

particular to prices, specifications, certifications, subsidiary contracts, submission or

non-submission of bids or any other actions to restrict competitiveness or to introduce

cartelisation in the bidding process.

c) The Bidder / Contractor / Supplier will not commit any offence under the relevant Anti-

Corruption Laws of India; further the Bidder / Contractor / Supplier will not use

improperly, for purposes of competition or personal gain, or pass on to others, any

information or document provided by the Principal as part of the business relationship,

regarding plans, technical proposals and business details, including information

contained or transmitted electronically.

d) The Bidder / Contractor / Supplier will, when presenting his bid, disclose any and all

payments he has made, is committed to, or intends to make to agents, brokers or any

other intermediaries in connection with the award of the contract.

e) The Bidder / Supplier / Contractor shall make sure that the terms of this Integrity pact are also

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adopted by its Sub-Contractors / Sub -Sub-Contractors, etc., if any and submit such adoption

confirmation proof to the Principal

2) The Bidder / Contractor / Supplier will not instigate third persons to commit offences

outlined above or be an accessory to such offences.

Section 3 – Disqualification from tender process and exclusion from future contracts

If the Bidder, before contract award, has committed a transgression through a violation of

Section 2 or in any other form such as to put his reliability or credibility as Bidder into

question, the Principal is entitled to disqualify the Bidder from the tender process or to

terminate the contract, if already signed, for such reason.

1) If the Bidder/Contractor/Supplier has committed a transgression through a violatio n of

Section 2 such as to put his reliability or credibility into question, the Principal is also

entitled to exclude the Bidder / Contractor / Supplier from future Contract award

process. The imposition and duration of the exclusion will be determined by the severity

of the transgression. The severity will be determined by the circumstances of the case,

in particular the number of transgressions, the position of the transgressors within the

company hierarchy of the Bidder and the amount of the damage. The exclusion will be

imposed for a minimum of 6 months and maximum of 3 years.

2) A transgression is considered to have occurred if the Principal after due consideration of

the available evidences, concludes that no reasonable doubt is possible.

3) The Bidder accepts and undertakes to respect and uphold the Principal's absolute right

to resort to and impose such exclusion and further accepts and undertakes not to

challenge or question such exclusion on any ground, including the lack of any hearing

before the decision to resort to such exclusion is taken. This undertaking is given freely

and after obtaining independent legal advice.

4) If the Bidder / Contractor / Supplier can prove that he has restored / recouped the

damage caused by him and has installed a suitable corruption prevention system, the

Principal may revoke the exclusion prematurely.

Section 4 – Compensation for Damages

1) If the Principal has disqualified the Bidder from the tender process prior to the award

according to Section 3, the Principal is entitled to demand and recover from the Bidder

liquidated damages equivalent to Earnest Money Deposit/Bid Security.

2) If the Principal has terminated the contract according to Section 3, or if the Principal is

entitled to terminate the contract according to Section 3, the Principal shall be entitled to

demand and recover from the Contractor/Supplier liquidated damages equivalent to

Security Deposit / Performance Bank Guarantee.

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3) The Bidder agrees and undertakes to pay the said amounts without protest or demur subject only

to condition that if the Bidder / Contractor / Supplier can prove and establish that the exclusion of

the Bidder from the tender process or the termination of the contract after the contract award has

caused no damage or less damage than the amount of the liquidated damages, the Bidder /

Contractor/Supplier shall compensate the Principal only to the extent of the damage in the

Section 5 – Previous Transgression

1) The Bidder declares that no previous transgression occurred in the last 3 years with any other

Company in any country conforming to the TI approach or with any other Public Sector Enterprise

in India that could justify his exclusion from the tender process.

2) If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender

process or the contract, if already awarded, can be terminated for such reason.

Section 6 – Equal treatment of all Bidders /Contractors /Suppliers/Subcontractors

1) The Bidder/Contractor/Supplier undertakes to demand from all subcontractors a commitment in

conformity with this Integrity Pact, and to submit it to the Principal before contract signing.

2) The Principal will enter into agreements with identical conditions as this one with all Bidders,

Contractors/Suppliers and Subcontractors.

3) The Principal will disqualify from the tender process all Bidders who do not sign this Pact or

violate its provisions.

Section 7 – Punitive Action against violating Bidders /Contractors /

Suppliers/Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Supplier or Subcontractor, or of

an employee or a representative or an associate of a Bidder, Contractor, Supplier or Subcontractor

which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal

will inform the Vigilance Office.

Section 8 – Independent External Monitors

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1) The CVC has appointed competent and credible Independent External Monitors for this Pact. The

task of the Monitor is to review independently and objectively, whether and to what extent the

parties comply with the obligations under this agreement.

2) The Monitor is not subject to instructions by the representatives of the parties and performs his

functions neutrally and independently. He reports to the Chairperson of the Board of the Principal.