BID DOCUMENTS FOR OPERATION & MAINTENANCE OF 5.20 MLD SBR TYPE SEWAGE TREATMENT PLANT AT KHEDA INCLUDING ALL MECHANICAL, ELECTRICAL, INSTRUMENTATION EQUIPMENT’S AND CIVIL STRUCTURES AS PER TENDERS CONDITION & SPECIFICATION FOR 01 YEARS (YEAR 2026-27) (2nd Attempt)

Date of Technical Bid Opening Date 01/07/2026 at 11:00 Hours IST Onwards

Date of Price Bid Document Opening To be declared time to time based on

technical bid evaluation Date 01/07/2026 at

KHEDA NAGARPALIKA

Sr No Section Description Page No

1 Invitation for Bid (IFB)

2 Section -1 Instructions to Bidders

3 Section -2 Qualification Information

4 Section -3 Conditions of Contract

5 Section -4 Contract Data

6 Section -5 Conditions of Contract for O & M

7 Section -6 SPECIAL TERMS AND CONDITIONS

8 Section -7 Form of Bid

9 Section -8 Bill of Quantities

10 Section -9 Securities and Other Forms

11 Section -10 Drawings

12 Section -11 Documents to be furnished by Bidder

INVITATION FOR BID

NATIONAL COMPETITIVE BIDDING

1. The Kheda Nagarpalika invites bids for the construction of works detailed in the table. The bidders

may submit bids for any or all of the following works.

Packa Name of work Approximate Bid Cost of Period of Class of

ge No. value of works security Document completion Registration /

(Rs.) (Rs.) Category of

1 As Per NIT & Details 72,00,000/- 72,000/- 2832.00 12 MONTHS Class “D”

Given Below (O & M Cost) (1 Year)

NAME OF WORK: BID DOCUMENTS FOR “OPERATION & MAINTENANCE OF 5.20 MLD SBR

TYPE SEWAGE TREATMENT PLANT AT KHEDA INCLUDING ALL MECHANICAL, ELECTRICAL,

INSTRUMENTATION EQUIPMENT’S AND CIVIL STRUCTURES AS PER TENDERS CONDITION &

SPECIFICATION FOR 01 YEARS (YEAR 2026-27) (2nd Attempt)”

2. Prospective / Interested bidder may download the Bid Documents from website

https://www.nprocure.com free of cost till the Time and Date as mentioned on online NIT at

website https://www.nprocure.com.

3. However, Bidder who is submitting the Bid Online will have to pay the Bid Document Fee / Tender Fee

through Demand Draft only of any Schedule Bank payable at KHEDA and in favour of ‘Chief

Officer, Kheda’. Once the Bid is received online, Bid Document / Tender Fee will not be refundable.

The Demand Draft for Bid Document / Tender fee and FDR / Bank Guarantee against Bid Security /

EMD shall be submitted in electronic format through online (by scanning) while uploading the

bid, this submission shall mean that bid document / tender fee and Bid Security / EMD has been

received. Accordingly, the offer of only those shall be opened whose Bid Document / Tender Fee

and Bid Security / EMD have been received electronically. However, for the purpose of realization

of Demand Draft, and FDR / Bank Guarantee bidder shall send the same in original through R.P.A.D.

so as to reach to ‘Chief Officer, Kheda, within mentioned in NIT (Days) from the last day of bid

Penetrative action for not submitting Demand Draft / FDR / Bank Guarantee in original to Chief

Officer / Tender Inviting Authority by bidder shall be initiated.

4. Bids received online, will be opened on the time, date and place as specified in the online NIT at

website https://www.nprocure.com in the presence of the bidders or their authorized

representatives, who wish to remain present.

If the office happens to be closed on the day of opening of the bids as specified, the bids will be

opened on the next working day at the same time and venue.

5. A pre bid meeting will be held on --------------- at 00:00 hrs. at the office of Kheda Nagarpalika to

clarify the issues and to answer questions on any matter that may be raised at that stage as

stated in clause 9.2 of ‘instructions to Bidders’ of the bidding documents.

6. Bid Security (EMD) is equal to 1% of Estimated Amount put to bid / tender and should be rounded

off to the next thousand rupees.

7. Other Information is as under:

A. Agencies can prepare and edit their offers a number of times before the end of the tender

submission date and time. After the tender submission date and time, the bidder cannot modify /

edit / withdraw their submitted offer in any case. No written or online request in this regard shall be

B. Offers in physical form will not be accepted in any case.

C. Demand Draft purchased by the other then bidder and issued after the last date of submission of

Bids, will not be considered or accepted.

D. The cost incurred by the contractor for this offer for clarification or attending discussion,

conferences or site visits will not be reimbursed by the Employer or Engineer-in-Charge.

E. Conditional tender shall not be accepted.

F. Any changes, addition, alternation made in the prescribed form attached with tender are liable to be

rejected.Any change in format or conditional Bank Guarantee will not be accepted and the bidder will

be considered non-responsive.All the bidders are instructed to fill in information strictly in

accordance with the format given in the checklist /qualification document / tender document.It is

mandatory for the bidders to supply each and every information as asked strictly in electronic

format at appropriate places only.

G. Blank / insufficient information shall be treated as nil information and shall result in disqualification.

H. Even if the bidder has been qualified in a similar or larger size of project in the past, it shall not be

deemed to be a ground / reason for not giving required information for this work / bid.

I. Information supplied for earlier projects shall not be considered while evaluation of this bid. The

Government will not ask for any other information, unless it is found absolutely necessary by the

competent authority.

J. If found necessary, the contractor will be intimated for negotiation,

(i) Bid Document Fee / Tender Fee

(ii) Bid Security / EMD or Valid EMD Exemption Certificate of Appropriate Class of Registration of

Approved Contractors

(iii) Registration Certificate of Appropriate Class

(iv) Current Financial Bank Solvency Certificate Not Less Than 20 % Of Estimated Amount

(vi) GST Number

(vii) Last Three Year IT return copy and seal and sign of CA

(viii) Turn Over certificate 30 % of Estimated Amount in Average of Last Three Year

(ix) Partnership Deed (if applicable)

(x) Work Experience, if necessary

(xi) Contractor shall submit EPF/PF Account number, certificate With Hard Copy of Tender. And necessary

document of above Registration at time of every R.A. Bill With name of employees

(xii) Tendered Should Not Be Blacklisted anywhere in India (Notarized Affidavit on Rs. 300 Stamp)

(xiii) Other Documents, as required…

Note: -A Notarized Affidavit For this Specific Tender ID By Contractor Specified That All The

Documents Provided By Him/her Are Genuine

INSTRUCTIONS TO BIDDERS

Section 1: Instructions to Bidders

Table of Clauses

Page No. Page No.

A. General D. Submission of Bids

1. Scope of Bid 9 19. Sealing and Marking of Bids

2. Source of Funds 9 20. Deadline for Submission of

3. Eligible Bidders 9 21. Late Bids

4. Qualification of the 9 22. Modification and

Bidder Withdrawal of Bids

5. One Bid per Bidder

6. Cost of Bidding 16 E. Bid Opening and Evaluation

7. Site Visit 16 23. Bid Opening

B. Bidding Documents 25. Clarification of Financial

8. Content of Bidding 17 26. Examination of Bids and

Documents Determination of

9. Clarification of Bidding 17 27. Correction of Errors

10. Amendment of Bidding

28. Evaluation and Comparison

of Financial Bids

C. Preparation of Bids

11. Language of Bid

12. Documents Comprising 19 F. Award of Contra

13. Bid Prices 19 31. Award Criteria

14. Currencies of Bid and 20 32. Employer’s Right to Accept

Payment any Bid and to Reject any

15. Bid Validity 20 33. Notification of Award and

Signing of Agreement

16. Bid Security 20 34. Performance Security

17. Alternative Proposals By 21 35. Advance Payment and

Bidders Security

18. Format and Signing of

36. Correct or Fraudulent

1. Scope of Bid

1.1 The Employer (Named in Appendix to ITB) invites bids for the Construction of works

(as defined in these documents and referred to as ‘the works”) detailed in the table

given in IFB. The bidders may submit bids for any or all of the works detailed in the

table given in IFB.

1.2 The successful bidder will be expected to complete the works by the intended

completion date specified in the Contract data.

1.3 Throughout these bidding documents, the terms ‘bid’ and ‘tender’ and their

derivatives (bidder/ tenderer, bid / tender, bidding/ tendering, etc.) are

2. Source of Funds

2.1 The expenditure on this project will be met from the budget of Govt. of Gujarat for

centrally sponsored projects.

3. Eligible Bidders

3.1 This Invitation for Bids is open to all eligible bidders.

3.2 All bidders shall provide in Section 2, Forms of Bid and Qualification Information, a

statement that the Bidder is neither associated, nor has been associated, directly or

indirectly, with the consultant or any other entity that has prepared the design,

specifications, and other documents for the Project or being proposed as Project

Manager for the Contract. A firm that has been engaged by the Employer to provide

consulting services for the preparation or supervision of the works, and any of its

affiliates, shall not be eligible to bid.

4. Qualification of the Bidder

4.1 All bidders shall provide in Section 2, Forms of Bid and Qualification Information, a

preliminary description of the proposed work method and schedule, including

drawings and charts, as necessary. The proposed methodology should include a

program of construction backed with equipment planning and deployment duly

supported with broad calculations and quality assurance procedures proposed to be

adopted justifying their capability of execution and completion of work as per technical

specifications, within stipulated period of completion.

4.2 Submit a written power of attorney authorizing the signatory of the bid to submit the

4.3 Submit Qualification requirements specifying financial capacity, technical capacity,

minimum acceptable levels with regards to Bidder's experience in relevant projects and

other relevant factors such as work in hand, future commitments, and litigation history.

4.4 Submit proposals regarding work methods, scheduling and re sourcing which shall be,

provided in sufficient detail to confirm the bidders’ capability to complete the works

in accordance with the specifications and the time for completion.

4.5 Joint Venture / consortium are not allowed in this bid.

4.6 QUALIFICATION CRITERIA:

(Applicable for the works which require Post Qualification)

4.6.1 Qualification will be based on Applicant’s meeting all the following minimum pass/

fail criteria regarding the Applicant’s general and particular experience, personnel

and equipment capabilities and financial positions, as demonstrated by the

applicant’s responses in the forms attached to the letter of application (specified

requirement for joint ventures are given under para 4.6 below) Subcontractors

experience and resources shall not be taken in to account in determining the

applicants compliance with the qualifying criteria To qualify for more than one

contract, the applicant must demonstrate having experience and resources sufficient

to meet the aggregate of the qualification criteria for each contract given in

paragraphs 4.5.4, 4.5.5 and 4.5.9 below

4.6.2 Base year and Escalation

The base year shall be taken as Current financial year

Following enhancement factors will be used for the costs of works executed and the

financial figure to a common base value for works completed in India.

Year Financial Year Multiplying factor

Base year of inviting tender 2024-2025

Applicant should indicate actual figures of costs and amount for the works executed

by them without accounting for the above-mentioned factors.

In case the financial figures and value of completed works are in foreign currency the

above enhanced multiplying factors will not be applied. Instead, the current market

exchange rate (State Bank of India BC Selling rate as on the last date of submission of

the bid) will be applied for the purpose of conversion of the amount in foreign

currency into India rupees.

4.5.3. General Experience.

The Applicant shall meet with the following minimum criteria:

4.5.3.1 QUALIFYING CRITERIA OF APPLICANT

MINIMUM QUALIFYING CRITERIA:

To qualify, each bidder in the same name and style should have achieved the

following performances:

List of Mandatory documents to be submitted

If bidder fails to submit below documents or mandatory criteria are not fulfilled,

bidder shall be considered as not qualified and their financial bid shall not be open.

To qualify, each bidder in the same name and style should have achieved the

following performances:

a) Registration:

A Certificate of Contractor’s registration certificate 'D' Class OR Above in Govt. of

Gujarat (R&B / WRD / GWSSB / Board, Corporation, and Government Undertaking /

Organizations of state government). (Scanned copy)

b) EMD/Tender Fee

As per Tender Notice

c) Solvency Certificate

Scanned Copy of the Solvency Certificate as approved by State Government.

(Bank Solvency certificate of nationalized bank or bank indicated in latest G R of FD

of the amount not less than Rs. 14.40 Lakhs. The bank solvency should be of the

current calendar year.)

Bidder must have achieved minimum annual financial turnover (at current price

level) from contract receipt of works (in all classes of civil engineering construction

works only) of Rs. 21.60 Lakhs. last three financial years i.e. from 2023-24 to 2025-

26. (C.A. Certificate must be attached).

e) SIMILAR NATURE OF WORK:

The bidder must have completed similar nature of work for any state govt. / central

govt. / PSU i.e. 2 years of Operation and Maintenance (O&M) for Minimum 1 MLD in

STP/WTP within last Seven (7) financial years i.e. from Year 2018- 19 to 2024-25 up

to one month prior to last Date of submission of the bid of Value not less than:

One completed works costing not less than the amount equal to 80% of the

Two completed works costing not less than the amount equal to 50% of the

Three completed works costing not less than the amount equal to 40% of the

OPERATION & MAINTENANCE:

The bidder shall have successfully completed design, construction and

commissioning including operation & maintenance for minimum 1 MLD STP/WTP (for

minimum 2 year after commissioning, inclusive of defect liability period), in single

project cost contract of similar nature (as narrated above) amounting to above

mentioned amount last Seven (7) years from one month prior to last date of

submission of bid.

Note: The amount of works shown above means project cost.

The bidder shall have successfully completed design, construction and commissioning

including operation & maintenance for minimum 1 MLD STP/WTP for minimum

years in single contract of similar nature (as narrated above) amounting to above

mentioned amount in last Seven (7) years from one month prior to last date of

submission of bid.

PHYSICAL CRITERIA:

The bidder must have successfully carried out minimum quantities of the following

work in any one project during last Seven (7) i.e. from Year 2018-19 To 2024-25 and

up to one month prior to last date of submission of the bid.

I) The works for which bidder have not entered in to contract agreement will

not be considered

II) The above experience shall be within last Seven (7) financial years i.e. from

Year 2018-19 to 2024-25 and up to one month prior to last date of submission of

the bid for which Form -3A/11 must be submitted.

III) Experience as sub-contractor shall not be considered.

The experience of works executed in Government (State/Central), Board,

Corporation, and Government Undertaking / PSU/ Organizations of state & central

government shall only be considered for evaluation. The experience certificate

from the client equivalent to not below the rank of Executive Engineer shall be

considered. The experience of sublet works shall not be considered.

IV) All MOU’s shall be on a Non Judicial stamp paper of appropriate value duly

notarized and signed by respective authorized representatives.

V) The Bidder / MOU partners contract should not have been terminated / blacklisted

/ debarred in any State Govt / Nagarpalikas / Central Govt. / Any state Govt

Organization, Urban Local body and/or its undertaking company or its SPV,

Asian Development Bank/ World Bank or similar international funding agencies

organizations due to delay in projects during last seven years.

VI) The works for which bidder have not entered in to contract agreement will

not be considered.

VII) If the bidder claiming Technical/ Physical Eligibility Criteria for the works has

completed any of the works in joint venture with any other company then,

along with the experience certificates, the firm shall submit the joint venture

agreement for that particular work. Experience certificates not accompanied by

joint venture agreement shall not be considered for evaluation. The credit for

the bidder which has completed a work in joint venture is allocated as

1. If the bidder has completed the work as a member in the project, then the

bidder can claim credit for the entire scope of the work in proportion to the

stake (e.g. if the capacity of the ESR executed is 30 ML and if the firm has

executed the project as member with a 40% stake then the firm can claim

credit for (40% x 30 ML) 12 ML works. A statutory auditor certificate

specifying the payments received for the project should be submitted. In the

event of percentage participation in the project calculated through the

statutory auditor certificate differs from the percentage in the Joint Venture

Agreement, the percentage participation calculated through payments

received shall be considered for evaluation purposes.

Note: The above condition shall also apply to Clause ‘Similar Nature of

work’ under financial criteria.

Financial Bid of only those contractors whose technical bids are found

Qualified by the department shall be opened online. The time and date of

opening of financial bid of contractors qualifying the technical bid shall be

communicated to them later on.

No any Price Variation or Rate difference clause applicable. If is there any

clause regarding to the adjustment of price / Price variation / price escalation

mentioned in this tender it will be treated

4.5.4. Personnel Capabilities.

Bidder need to submit inhouse NABL Accredited Laboratory Setup and submit

relevant certificate with NABL scope for testing.

If any bidder does not having in house NABL Accredited Laboratory Setup then

submit MOU of respected agency and submit relevant documents as above.

4.5.5. Financial Position

The Applicant should give undertaking that he has access to, or has available,

liquid assets (aggregate of working capital, cash in hand and uncommitted bank

guarantees) and / or credit facilities up to 25 percent of the value of the

contract / contracts applied.

4.5.6. The audited balance sheets for the last Seven (7) years should be submitted,

which must demonstrate the soundness of the applicant’s financial position,

showing long – term profitability including an estimated financial projection

for the next two years If necessary, the employer will make inquiries with the

applicant’s bankers.

4.5.7. Litigation History

The Applicant should provide accurate information on any litigation or

arbitration resulting from contracts completed or under execution by him

over the last seven years. A consistent history of awards against the

Applicant or any partner of a joint venture may result in failure of the

4.5.8. Disqualification

Even though the applicants meet the above criteria, they are subject to

be disqualified if they have:

Made misleading or false representation in the forms, statements submitted,

and / or Record of poor performance such as abandoning the work,

rescinding of contract for which the reasons are attributable to the non –

performance of the contractor; consistent history of litigation awarded

against the applicant or financial failure due to bankruptcy. The rescinding

of contract of a joint venture on account of reasons other than non –

performance, such as Most Experienced partner of joint venture pulling out,

court directions leading to breaking up of a joint venture before the start of

work, which are not attributable to the poor performance of the contractor

will, however, not affect the qualification of the individual partners.

JV NOT APPLICABLE-

4.6.1. Qualification of a joint venture does not necessarily qualify any of its partners

individually or as a partner in any other joint venture. In case dissolution of a

joint venture, each one of the constituent firms may qualify if they meet all the

qualification requirements, subject to the written approval of the Employer.

4.7. Bid Capacity.

Applicants who meet the minimum qualification criteria will be qualified only if their

available bid capacity at the expected time of bidding is more than the total

estimated cost of the works. The available bid capacity will be calculated as under:

Assessed Available Bid Capacity = (A*N*2-B), where

A = Performance of the Bidder for maximum annual turnover for last seven financial year

updated at the financial year 2023-24. (Current completed financial year)

B = Value of the existing commitments as on date of bid submission for works

(complete or partial) to be completed in the next 12 Months (1 years). The details shall

be countersigned by the Executive Engineer or the equivalent officer of the employer on

whose behalf the firm is carrying out the works.

N = Years prescribed for completion of the work for which bids are invited.

12 Months (1 years) (Equivalent to duration of the project)

Note: - In Case of joint venture, the available bid capacity will be applied for each

partner to the extent of his proposed participation in the execution of the work.

4.7 Even though the bidders meet the above qualifying criteria, they are subject to be

disqualified if they have:

- Made misleading or false representation in the forms, statements and Attachments the

submitted in proof the qualification requirements; and / or Record of poor performance

such as abandoning the works, not properly completing the contract, inordinate delay in

completion, litigation history, or financial failures etc.; and/ or Participated in the

previous bidding for the same work and had quoted unreasonably high bid prices and could

not furnish rational justification to the employer.

4. One bid per bidder

5.1. Each bidder shall submit only one bid for one package. A bidder who submits or

participates in more than one bid (other than as a subcontractor or in cases of

alternatives that have been permitted or requested) will cause all the proposals with the

bidder’s participation to be disqualified.

6. Cost of Bidding

6.1. The bidder shall bear all costs associated with the preparation and submission

of his Bid, and the Employer will in no case be responsible and liable for those

7.1. The Bidder, at the Bidder’s own responsibility and risk is encouraged to visit

and examine the Site of work and its surrounding and obtain all information

that may be necessary for preparing the Bid and entering into a contract for

construction of the Works.

The costs of visiting the site shall be at the Bidder’s own expense.

The Site Visit shall be carried out on or before 23/06/2026. A Site Visit

Certificate, duly signed and stamped by the Clerk - Drainage Department and/or

Sanitary Inspector, shall be obtained and submitted along with the Bid.

Submission of the Site Visit Certificate is mandatory. Bids not accompanied by a

valid Site Visit Certificate.

B. BIDDING DOCUMENTS

8. Content of Bidding Documents

8.1 The set of bidding documents comprises the documents listed below and addenda

issued in accordance with Clause 10:

Section Particulars Volume No.

- Invitation for Bids

1 Instructions to Bidders I

2 Qualification Information, and other forms

3 Conditions of Contract

4 Contract Data

5 Technical Specifications II

6 Form of Bid III

7 Bill of Quantities

8 Securities and other forms

10 Conditions of Contract for O & M V

11 Documents to be furnished by bidder VI

8.2. Volumes I, II, III and IV are available online and documents to be furnished by the

bidder in compliance to section 2 will be prepared by him and furnished as Volume-

V in two parts (refer clause 12).

8.3. The bidder is expected to examine carefully all instructions, conditions of contract,

contract data, forms, terms, technical specifications, bill of quantities, forms, Annexes

and drawings in the Bid Document. Failure to comply with the requirements of Bid

Documents shall be at the bidder’s own risk. Pursuant to clause 26 here of, bids

which are not substantially responsive to the requirements of the Bid Documents

shall be rejected.

9. Clarification Bidding Documents

9.1 A prospective bidder requiring any clarification of the bidding documents may

notify the Employer in writing or through E-mail at the Employer’s address

indicated in the invitation to bid. The Employer will respond to any request for

clarification which he received earlier than 15 days prior to the deadline for

submission of bids. Employer’s response will be published on website including a

description of the enquiry but without identifying its source.

10. Amendment of Bidding Documents

10.1 Before the deadline for submission of bids, the Employer may modify the bidding

documents by issuing addenda.

10.2. Any addendum thus issued shall be part of the bidding documents. The Employer

will assume no responsibility for the same.

10.3. To give prospective bidders reasonable time in which to take an addendum into

account in preparing their bids, the Employer may, at his discretion, extend as

necessary the deadline for submission of bids, in accordance with Sub-Clause

C. PREPARATION OF BIDS

11. Language of the Bid

11.1 All documents relating to the bid shall be in the English language.

12. Documents Comprising the Bid

12.1. The bid be submitted by the bidder as Volume V of the bid document (refer Clause

8.1) shall be in two separate parts:

Part I shall be named “Technical Bid” and shall comprise

(i) Bid Security in the form specified in Section

(ii) Qualification Information and supporting documents as specified in Section

(iii) Certificates, undertakings, affidavits as specified in Section

(iv) Any other information pursuant to Clause 4.5 of these instructions

(v) Undertaking that the bid shall remain valid for the period specified in Clause15.1

Part II shall be named “Financial Bid” and shall comprise

(i) Form of Bid as specified in Section

(ii) Priced Bill of Quantities for items specified in Section

12.2. The Bidder shall submit the details / information pertaining to each part i.e.

technical as well as financial and must be submitted online only.

12.3. Following documents will be deemed to be part of the bid.

Section Particulars Volume No.

Invitation for Bids (IFB)

1 Instruction to Bidders Volume I

3 Conditions of Contract

4 Contract Data

5 Specifications Volume II

6 Form of Bid Volume III

7 Bill of Quantities

8 Securities and other forms

9 Drawings Volume IV

10 Conditions of Contract for O & M Volume V

13.1 The Contract shall be for the whole works as described in Sub-Clause 1.1, based on the

priced Bill of Quantities submitted by the Bidder.

13.2 The bidder shall fill in rates and prices and line-item total (both in figures and

words)for all items of the Works described in the Bill of Quantities along with total bid price

(Both in figures and words). Items for which no rate or price is entered by the bidder will not be paid for

by the Bill of Quantities.

13.3 Bidder need to quote including gst amount in this tender and all extra other expenses

including transportation and all.

13.4 The rates and prices quoted by the bidder are subject to adjustment during the

performance of the Contract in accordance with the provisions of Clause 47 of the

Conditions of Contract.

13.5 The rates and prices quoted by the bidder are subject to adjustment during the

performance of the Contract in accordance with the provisions of Clause 47 of the Condition

of Contract (Irrespective of the time limit and Bid Amount)

14. Currencies of Bid and Payment

14.1 T h e unit rates and the prices quoted by the bidder shall be entirely in Indian Rupees. All

payments shall be made in Indian Rupees.

15. Bid Validity

15.1 Bids shall remain valid for a period of not less than 180 days after the deadline date

forbid submission specified in Clause

15.2 In exceptional circumstances, prior to expiry of the original time limit, the Employer

may request that the bidders may extend the period of validity for a specified period. A bidder

may refuse the request without forfeiting his bid security. A bidder agreeing to the request will

not be required or permitted to modify his bid, but will be required to extend the validity of his

security for a period of the extension, and in compliance with Clause 16 in all respects.

16. Bid Security

16.1. The Bidder shall furnish, as part of his Bid, a Bid security in the amount as shown in

column 4 of the table of IFB for this particular work. This Bid security shall be in favour of

Employer as named in Appendix and may be in one of the following forms;

a. Bank Guarantee from any scheduled Indian bank, in the format given in Volume III. (Bank

Guarantee is applicable only for Bid Estimated Amount of 01 Crore and above) and Bank

Guarantee of Schedule and Private Banks shall be considered as per GoG Finance Department’s

Circular No. FD/MSM/e- file/4/2023/0057/D.M.O. Date 21/04/2023 or as per their latest amendment.

b. Fixed Deposit Receipt issued by any Scheduled Indian Bank or a foreign Bank approved

by the Reserve Bank of India.

16.2. Bank guarantees (and other instruments having fixed validity) issued as surety for the

bid shall be valid for 45 days beyond the validity of the bid i.e. total validity of 120+45 = 165 Days

16.3. Any bid not accompanied by an acceptable Bid Security and not secured as indicated in

Sub-Clauses 16.1 and 16.2 above shall be rejected by the Employer as non-responsive.

16.4. The Bid Security of unsuccessful bidders will be returned within 28 days of the end of the

bid validity period specified in Sub-Clause

16.5 The Bid Security of the successful bidder will be discharged when the bidder has signed

the Agreement and furnished the required Performance Security.

16.6. The bid Security may be forfeited

(a) If the Bidder withdraws the bid after Bid opening during the period of Bid validity.

(b) If the Bidder does not accept the correction of the Bid Price, if any or

(c) In the case of a successful Bidders, if the Bidder fails the specified time limit to

(i) Sign the Agreement; or

(ii) Furnish the requirement Performance Security.

(d) #If found necessary, the bidder will be intimated for negotiation, He will be intimated

maximum three times within the validity period for negotiation, If contractor does not respond

in time, his Bid Security (EMD) will be forfeited and his tender will be rejected. Punitive action

will be taken on such contractors. (As per GoG R&B Dept’s Gr. No. S/22/2017/6369/D,

17. Alternative Proposals by Bidders.

17.1. Bidders shall submit offers that fully comply with the requirements of the bidding

documents, including the conditions of contract (including mobilization advance or time for

completion), basic technical design as indicated in the drawing and specifications. Conditional

offers or alternative offers will not be considered further in the process of tender evaluation.

18. Format and Signing of Bid

18.1. The Bidder shall prepare documents comprising the bid as described in Clause 12 of

these Instructions to bidder as the “Technical Bid “and “Financial Bid” in separate parts to be

D. SUBMISSION OF BIDS

19. Sealing and Marking of Bids:

19.1 The Bidder shall seal the original and copy of the Bid in separate envelopes, duly

marking the envelopes as "ORIGINAL" and "COPY". These envelopes (called as inner

envelopes) shall then be put inside one outer envelope.

19.2 The inner and outer envelopes shall

(a) be addressed to the Employer at the following address:

KHEDA Nagar Palika,

TA. Kheda, Dist: Kheda

In addition to the identification required in Sub-Clause 19.2, the inner envelopes shall indicate the

name and address of the bidder to enable the bid to be returned unopened in case it is declared

late, pursuant to Clause

19.3 If the outer envelope is not sealed and marked as above, the Employer will assume no

responsibility for the misplacement or premature opening of the bid.

20. Deadline for Submission of the Bids

20.1. Complete Bids must be received online by the Employer at the tender website

specified above not later than the date indicated in appendix.

20.2. The Employer may extend the deadline for submission of bids by issuing an

amendment in accordance with Clause 10, in which case all right and obligation of the

Employer and the bidders previously subject to the original deadline will then be subject to the

Any Bid received by the Employer after the deadline prescribed in Clause 20 will be returned

unopened to the bidder

22. Modification and Withdrawal of Bids

22.1. Bidders may modify or withdraw their bids online before the deadline prescribed in

Clause 20 or pursuant to Clause

22.3. No bid shall be modified or withdrawn after the deadline for submission of Bid.

22.4. Withdrawal or modification of a bid between the deadline for submission of bids and

the expiration of the original period of bid validity specified in Clause 15.1 above or as

extended pursuant to Clause 15.2 may result in the forfeiture of the Bid security pursuant to

E. BID OPENING AND EVALUATION

23. Bid Opening

23.1 The Employer will open all the Bids received including modifications made pursuant to

Clause 22, in the presence of the Bidders or their representatives who choose to attend at

time, date and the place specified in Appendix in the manner specified in Clauses 20 and 23.3,

In the event of the specified date of Bid opening being declared a holiday for the Employer, the

Bids will be opened at the appointed time and location on the next working day.

The “Technical Bid” shall be opened. The amount, form and validity of the bid security furnished

with each bid will be announced. If the bid security furnished does not conform to the amount and

validity period as specified in the invitation for bid (ref. Column 4 and paragraph 3), and has

not been furnished in the form specified in Clause 16, the technical bid will not be opened.

(i) Subject to confirmation of the bid security by the issuing Bank, the bids

accompanied with valid bid security will be taken up for evaluation with respect to the

Qualification information and other information furnished in part I of the bid pursuant to

(ii) If required, the bidder will be asked in writing to clarify his Qualification

Documents with respect to any required clarification.

(iii) The bidders will respond in not more than 7 days of issue of the clarification

(iv) Immediately (usually within 3 or 4 days), on receipt of these clarification the

Evaluation Committee will finalize the list of responsive bidders whose financial bids are

eligible for consideration.

23.6 At the time of opening of “Financial Bid”, the names of the bidders were found

responsive in accordance with Clause 23.4(iv) will be announced. The bids of only these

bidders will be opened. The responsive Bidders’ names, the Bid prices, the total amount of

bidders will be opened. The responsive Bidders’ names, the Bid prices, the total amount of

each bid, any discount and such other details as the Employer may consider appropriate, will be

announced by the Employer at the opening.

23.7 the time of opening of “Financial Bid”, the names of the bidders were found

responsive in accordance with Clause 23.4(iv) will be announced. The bids of only these

bidders will be opened. The responsive Bidders’ names, the Bid prices, the total amount of

bidders will be opened. The responsive Bidders’ names, the Bid prices, the total amount of

each bid, any discount, and such other details as the Employer may consider appropriate, will be

announced by the Employer at the opening.

23.8 In case bids are invited for more than one package, the order for opening of the

“Financial Bid” shall be in order of estimated amount of Bids from highest to lowest.

23.9 The Employer shall prepare minutes of the Bid opening, including the information

disclosed to those present in accordance with Sub-Clause 23.6.

24.1 Information relating to the examination, clarification, evaluation, and comparison of Bids

and recommendations for the award of a contract shall not be disclosed to Bidders or any

other persons not officially concerned with such process until the award to the successful

Bidder has been announced. Any effort by Bidder to influence the Employer’s processing of

Bids or award decisions may result in the rejection of his Bid.

25. Clarification of Financial Bids

25.1. To assist in the examination, evaluation, and comparison of Bids, the Employer may, at

his discretion, ask any Bidder for clarification of his Bid, including breakdowns of unit rates. The

request for clarification and the response shall be in writing or by e- mail, but no change in the

price or substances of the Bid shall be sought, offered, or permitted except as required to

confirm the correction of arithmetic errors discovered by the Employer in the evaluation of the

25.2 Subject to sub-clause 25.1, no Bidder shall contact the Employer on any matter relating

to his Bid opening to the contract is awarded. If the Bidder wishes to bring additional

information to the notice of the Employer, it should do so in writing.

25.3. Any effort by the Bidder to influence the Employer in the Employer's bid evaluation, bid

comparison or contract award decision may result in the rejection of the Bidders’ bid.

26. Examinations of Bids and Determination of Responsiveness

26.1 During the detail evaluation of "Technical Bid", the Employer will determine whether

each Bid (a) meets the eligibility criteria defined in Clause 3 and 4; (b) has been properly

signed; (c) is accompanied by the required securities and; (d) is substantially responsive to the

requirements of the Bidding document. During the detailed evaluation of the “Financial Bid”,

the responsiveness of the bids will be further determined with respect to the remaining bid

conditions, i.e., priced bill of quantities, technical specifications, and drawings.

26.2 A substantially responsive “Financial Bid” is one which confirms all the terms,

conditions and specifications of bidding documents, without material deviation or reservation.

A material deviation or reservation is one (a) which affects in any substantial way the scope,

quality, or performance of the Works; (b) which limits in any substantial way, inconsistent with

the Bidding documents, the Employer’s rights or the Bidder’s obligations under the Contract; or

(c) whose rectification would affect unfairly the competitive position of other Bidders

presenting substantially responsive Bids.

26.3 If a “Financial Bid” is not substantially responsive, it will be rejected by the Employer,

and may not subsequently be made responsive by correction or withdrawal of the nonconforming

deviation or reservation.

27. Correction of Errors

27.1 Bids determined to be substantially responsive will be checked by the Employer for any

arithmetic errors. Errors will be corrected by the Employer as follows:

(a) where there is a discrepancy between the rates in figures and in words, the rate in

words will govern; and

(b) where there is a discrepancy between the unit and the line-item total resulting from

multiplying the unit rate by the quantity, the unit rate as quoted will govern.

27.2 The amount stated in the Bid will be adjusted by the Employer in accordance with the

above procedure for the correction of errors and, with the concurrence of the Bidder, shall be

considered as binding upon the Bidder. If the Bidder does not accept the corrected amount

the Bid will be rejected, and the Bid security may be forfeited in accordance with Sub-Clause

28. Evaluation and Comparison of Financial Bids

28.1. The Employer will evaluate and compare only the Bids determined to be substantially

responsive in accordance with Sub-Clause 26.2.

28.2. The Employer reserves the right to accept or reject any variation or deviation. Variation

and deviations and other factors, which are in excess of the requirements of the Bidding

documents or otherwise result in unsolicited benefits for the Employer, shall not be taken in to

account in Bid evaluation.

28.3. The estimated effect of the price adjustment conditions under Clause 47 of the

Conditions of Contact, during the period of implementation of the Contract, will not be taken in

to account in Bid evaluation.

28.4. If the Bid of the successful Bidder is seriously unbalanced in relation to the Engineer’s

estimate of the cost of work to be performed under the contract the Employer may require

the Bidder to produce detailed consistency of those prices with the construction methods and

schedule proposed. After evaluation of the price analyses, the Employer may require that the

amount of the performance security set forth in Clause 34 be increased at the expense of the

successful /bidder to a level sufficient to protect the Employer against financial loss in the

event of default of the successful Bidder under the Contract.

28.5. A bid which contains several items in the bill of Quantities which are unrealistically

priced low and which cannot be substantiated satisfactorily by the bidder may be rejected as

non-responsive.

F. AWARD OF CONTRACT

29. Award Criteria

29.1. Subject to Clause 32, the Employer will award the contract to the Bidder whose Bid has

been determined.

(i) to be substantially responsive to the Bidding documents and who has offered the lowest

evaluated Bid Price; and

(ii) To be within the available bid capacity adjusted to account for his bid price which is

the lowest evaluation in any of the packages opened earlier than the one consideration.

In no case, the contract shall be awarded to any bidder whose available bid capacity is less

than the evaluated bid price, even if the said bid is the lowest evaluated bid. The contract will in

such cases be awarded to the next lowest bidder at his evaluation bid price.

30. Employer’s Right to accept any Bid and to reject any or all Bids

30.1. Notwithstanding Clause 31, the Employer reserves the right to accept or reject any

Bid, and to cancel the Bidding process and reject all Bids, at any time prior to the award of

contract, without thereby incurring any liability to the affected bidder or Bidder or any

obligation to inform the affected Bidder or Bidders of the grounds for the Employer’s action.

31. Notification of Award and Signing of Agreement

31.1. The Bidder whose Bid has been accepted will be notified of the award by the Employer

prior to expiration of the Bid validity period by cable, telex or facsimile confirmed by

registered letter. This letter (hereinafter and in the condition of contract called the “Letter of

Acceptance”) will state the sum that the Employer will pay the Contractor in consideration of the

execution, completion, and maintenance of the Works by the Contractor as prescribed by the

Contract (hereinafter and in the Contract called the “Contract Price”).

33.2 The notification of award will constitute the formation of the contract, subject only to the

furnishing of a performance security in accordance with the provisions of Clause.

33.3. The Agreement will incorporate all agreements between the Employer and the

successful Bidder. It will be signed by the Employer and to the successful Bidder, within

days following the notification of award along with the Letter of Acceptance. Within 21 days

of receipt, the successful Bidder will sign the Agreement and deliver it to the Employer.

33.4. Upon the furnishing by the successful Bidder of the Performance Security, the

Employer will promptly notify the other Bidders that their Bids have been unsuccessful.

32. Performance Security

32.1. (A) Within 10 (Ten) days of receipt of Letter of Acceptance, the successful Bidder

shall furnish to the Employer an irrevocable and unconditional guarantee from a Bank in the

form set forth in Section 8 (the “Performance Security”) for an amount equal to 5% (five

percent) of its Contract Price. In case of bids mentioned below, the successful Bidder, along

with the Performance Security,

Shall also furnish to the Authority an irrevocable and unconditional guarantee from a Bank in

the same form given at Section 8 towards an Additional Performance Security (The

“Additional Performance Security”) for an amount calculated as under:

(a) If the Contract Price offered by the Selected Bidder is lower than 10% but up to 20% of

the Estimated Project Cost, then the Additional Performance Security shall be calculated @ 20%

of the difference in the (i) Estimated Project Cost (as mentioned in Bid Document) - Minus

10% of the Estimated Project Cost and (ii) Contract Price offered by the selected Bidder.

(b) If the Contract Price offered by the Selected Bidder is lower than 20% of the Estimated

Project Cost, then the Additional Performance Security shall be calculated @ 30% of the

difference in the (i) Estimated Project Cost (as mentioned in Bid Document) - Minus 10% of

the Estimated Project Cost and (ii) Contract Price offered by the selected Bidder.

(c) This Additional Performance Security shall be treated as part of the Performance

(B) The Performance Security shall be valid beyond 60(sixty) days of the Defects Liability

Period and the Additional Performance Security shall be valid beyond 28 (twenty-eight) days of

Project Completion Date.

32.2. If the performance security is provided by the successful Bidder in the form of a

Bank Guarantee, it shall be issued either (a) at the Bidder’s option, by a

Nationalized/Scheduled Indian bank or (b) by a foreign bank located in India and acceptable to

the Employer. As per GoG Finance Department’s Circular No. FD/MSM/e-file/4/2023/0057/D.M.O.

Date 21/04/2023 or as per their latest amendment.

32.3. Failure of the successful Bidder to comply with the requirement of Sub-Clause

shall constitute sufficient grounds for cancellation of the award and forfeiture of the Bid

35 Advance Payment and Security

35.1 The Employer will provide an Advance payment on the Contract Price as stipulated in

the Conditions of Contract, subject to maximum amount, as stated in the Contract Data.

36. Corrupt of Fraudulent Practices

36.1 The Employer will reject a proposal if it determines that the Bidder recommended for

award has engaged in corrupt or fraudulent practices in completing for the contract in

question and will declare the firm ineligible, either indefinitely or for a stated period of time, to

be awarded a contract with National Highways Authority of India/ State PWD and any other

agencies, if it at any time determines that the firm has engaged in corrupt or fraudulent

practices in completing for the contractor, or in execution.

36.2 Furthermore, Bidders shall be aware of the provision stated in Sub- Clause 59.2 of the

Conditions of Contract.

APPENDIX TO ITB

Clause Reference

With respect to

1. The Name of the Employer is KHEDANagar Palika. [ Cl.1.1]

2. The last seven years.

3. This Annual Financial Turnover Amount is Rs. 279.00 Lacks [Cl.4.5.3.1

4. Value of Work is Rs. 7200000/- (Incd. GST)

5. The cost of / Drainage / Sewerage works is Rs.

6. Liquid assets and / or availability of credit facilities is Rs.………… [Cl.4.5.6]

7. Price level of the financial year 2024-2025 [Cl. 4.5.2]

8. The pre-bid meeting will take place at Nagarpalika Office [Cl. 9.2.1]

9. The technical Bid will be opened at the office of the Nagarpalika on

01/07/2026 11.00Hrs. (If Possible)

10. Address of the Employer: Kheda Nagarpalika, A T . PO & TA. KHEDA

11. The bid should be submitted latest by As stated on online NIT [Cl. 20.1 &

12. The bid will be opened at Kheda Nagarpalika As stated on online NIT [Cl. 23.1]

13. The Bank Draft in favor of Chief officer Kheda nagarpalika

14. Escalation factors (for the cost of works executed and financial figure [Cl.4.5.2]

to a common base value) for works completed

Year Financial Year Multiplying factor

Base year of inviting tender 2024-2025

#LIST OF KEY PLANT & EQUIPMENT TO BE DEPLOYED ON CONTRACT WORK

[Reference CL. 4.5.5]

#Employment of a qualified site Engineer by the Contractor. – CVs submission

Sr. Designation Duty No of Persons Qualification

1 Plant Manager General 01 B.E. ( Chem, Env, Mech,

Etc) B.Tech/ DIE

2 Shitf In charge Shift 02 B.E. ( Chem, Env, Mech,

Etc) B.Tech/ DIE

3 Lab Technician General 01 B.E/B. Sc. (Chem.)

Electrical 01 Diploma/ Bechler of

4 General Engineering/ITI

5 Mechanical General 01 Diploma/ Bechler of

Engineering/ITI

6 Plant Operator Shift 02 ITI/12 Th/Eqv.

Helper cum Sweeper

7 General 01 Un-skill

8 Shift 02 Highly Skilled

List of Key Personnel to be deployed on Contract Work

(Reference Cl. 4.5.4)

# Employment of a qualified site Engineer by the Contractor.

The Contractor shall employ full-time technically qualified staff during the execution of this work as

1. Two graduate Civil Engineers and three diploma Civil Engineers when cost of the work to be

executed is more than Rs.50 lakhs.

2. One graduate & two Diploma, Civil Engineers when the cost of the work to be executed is

more than Rs.15 lakhs but less than Rs.50 lakhs.

3. Minimum one Diploma Civil Engineer when the cost of work is less than Rs.15 lakhs but

more than Rs.5 lakhs.

4. Minimum two Diploma Civil Engineers for the work when the cost of work to be executed is

less than Rs. 5 lakhs. The Engineer so employed for the Government work must have

sufficient experience to handle the work independently. Such an Engineer shall have to stay

at the site of work and he shall not be entrusted with other duty except this work.

In case the contractor or partner of the contractor firm is a Civil Graduate Engineer, Employment of a

separate Engineer will not be necessary provided that the Engineer partner himself attends the

execution of the work on the site.

Within 15 days of issue of work-order the Contractor will have to furnish to the Chief Officer-in-

charge of the work the Name, Qualifications, copy of marksheet, Colour Photograph and the

appointment order issued such engineers engaged for this contract work. If 15 days after issue of

work order such designated Site Engineers do not resume or do not remain present on site of work,

the recovery at the rate of Rs.15,000-00 per month per Engineer will be made from the

bills/deposit/dues of the contractor. Such recovery shall be non-refundable.

QUALIFICATION INFORMATION

QUALIFICATION INFORMATION

The information to be filled in by the Bidder in the following pages will be used for the

purpose of post qualification as provided for in Clause 4 of the Instruction to Bidders. This

information will not be incorporated in the Contract.

1. For Individual Bidders

1.1 Constitution or legal status of Bidder (Attach Copy)

Place of registration

Principal place of business

Power of attorney of signatory of Bid (Attach)

1.2 Total value of Civil engineering constructions 2018-2019

Work performed in the last Seven years 2019-2020

(in Rs. Lakhs) 2021-2022

1.3.1 Work performed as prime contractor, work performed in the past as a nominated sub- contractor

will also be considered the sub-contract involved execution of a l l main items of work

described in the bid documents, provided further that all other qualification criteria are

satisfied (in the same name) on works of a similar nature over the last seven years** and in

current year before the submission of the bid.

Project Name of the Description of Contract Value of Date of Stipulated Actual date Remark

Name Employer work No. contract issue of period of of explaining

(Rs. work completion completion* reasons for

Crore) order delay & work

*Attach certificate(s) from the Engineer(s)in-charge

** Immediately preceding the financial year in which bids are received.

#1.3.2 Quantities of work executed as prime contractor, work performed, in the past as a

nominated sub-contractor, will also be considered provided the sub-contract involved

execution of all main items of work described in the bid document, provided, further that

all other qualification criteria are called (in the same name and style) in the last seven years**

and in current year before the submission of the bid.

Year Name of Name of Quantity of work performed (Cum/MT) Remarks*

the work the Cement Masonry Earth Bituminous (indicate

Employer Concret+65 Works Work contract Ref)

1.4 Information on Bid Capacity (works for which bids have been submitted and works

which are yet to be completed) as on the date of this bid.

(A) Existing commitments and on-going works:

Description Place Contract Name & Value Stipulated Value of Anticipated

of works & No. Address Contract Period of Works* Of

State of (Rs. Cr) Completion remaining completion

*Attach certificate (s) from the Engineer(s) in-charge

** Immediately preceding the financial year in which bids are received.

1.5 Availability of key items of Contractors Equipment for carrying out the works (Ref.

Clause 4.5.5). The Bidder should list all the information requested below.

Item of Requirement Availability Proposals Remarks

Equipment NO Capacity Owned/ Nos/. Age/ (from whom

Leased to be Capacity Conditions to be

procured purchased

1.6 Qualifications and experience of key personnel required for administration and

execution of the contract. Attach biographical data. Refer also to Sub Clause 9.1 of

the Conditions of Contract.

Position Name Qualification Year of Year of experience

Experience in the proposed

(General) position

1.7 Proposed sub-contract and firms involved

Sections of the Value of Sub- Sub-Contractor Experience in

works Contractor (Name & Address) similar work

Attach copies of certificates on possession of valid license for executing water supply/ sanitary

work/ building electrification works.

1.8 Financial reports for the last seven years: balance sheets, profit and loss statements,

auditors’ reports (in case of companies/corporations), etc. List them below and attach

1.9 Evidence of access to financial resources to meet the qualification requirements:

cash in hand, lines of credit, etc. List them below and attach copied documents.

1.10 Name, address, and telephone, telex, and fax numbers of the Bidders bankers who

may provide references if contacted by the Employer.

1.11 Information on Litigation history in which the Bidder is involved.

Other Party Employer Cause of Amount Remarks

(ies) Dispute Involved showing

1.12 Statement of compliance under the requirements of Sub Clause 3.2 of the instruction

to Bidders. (Name of Consultant engaged for project preparations is * ....................... )

1.13 Proposed work method and schedule. The Bidder should attach descriptions,

drawings and charts as necessary to comply with the requirements of the Bidding

documents. (Refer ITB Clause 4.1)

2. Additional Requirements

2.1 Bidders should provide any additional information required to fulfill the

requirements of Clause 4 of the Instructions to the Bidders, if applicable.

(ii) Undertaking

* Fill the name of Consultant

SAMPLE FORMAT FOR EVIDENCE OF ACCESS TO OR AVAILABILITY OF

CREDIT FACILITIES

(CLAUSE 4.5.6 OF ITB)

BANK CERTIFICATE

This is to certify that M/s. is a reputed company with

a good financial standing.

If the contract for the work, namely is awarded to the

above firm, we shall be able to provide overdraft/credit facilities to the extent of

Rs. to meet their working capital requirements for executing the above

during the contract period.

Senior Bank Manager

Address of the Bank

4 I, the undersigned, do hereby certify that all the statements made in the required

attachments are true and correct.

5 The undersigned also hereby certifies that neither our firm M/s

have not abandoned any work of

Government of Gujarat/Government of India/any Board or Corporation under

Government of Gujarat/Government of India nor any contract awarded to us for such works

have been rescinded, during last seven years prior to the date of this bid.

6 The undersigned hereby authorize(s) and request (s) any bank, person, firm or corporation

to furnish pertinent information deemed necessary and requested by the Department to

verify this statement or regarding any (our) competence and general reputation.

7 The Undersigned understands and agrees that further qualifying information may be

requested, and agrees to furnish any such information at the request of the Department/

Project implementing agency.

(Signed by an Authorized Officer of the Firm)

Title of Officer

I, the undersigned do hereby undertake........ that our firm

up to 25% of the value of the work during implementation of the contract.

(Signed by an Authorized officer of the firm)

Title of officer

CONDITIONS OF CONTRACT

Conditions of Contract

Table of Contents

A General Page D. Cost Control

1 Definitions 41 37 Bill of Quantities

2 Interpretation 42 38 Changes in the Quantities

3 Language and Law 43 39 Variations

4 Engineer’s Decisions 43 40 Payments for Variations

5 Delegations 43 41 Cash Flow Forecasts

6 Communications 43 42 Payment Certificates

7 Sub-Contractors 43 43 Payments

8 Other Contractors 43 44 Compensations Events

9 Personnel 44 45 Tax

10 Employer’s & Contractor Risk 44 46 Currencies

11 Employers Risks 44 47 Price Adjustment

12 Contractor’s Risk 44 48 Retention

13 Insurance 44 49 Liquidateddamages

14 Site Investigations Reports 45 50 Bonus

15 Queries about the Contract 45 51 Advance Payment

16 Contractors to Construct the 45 52 Securities

17 The Works to be Completed By the

Intended Completion Date

18 Approval by the Engineer 45 54 Cost of Repair

20 Discoveries 46 E. Finishing the Contract

21 Possession of the Site 46 5 Completion

22 Access to the Site 46 56 Taking Over

23 Instructions 46 57 Final Account

24 Disputes 46 58 Operating and Maintenance

25 Procedure for Disputes

59 Terminations

60 Payment upon Terminations

B. Time Control 61 Property

27 Programme 48 62 Release from Performance

28 Extensions of the Intended

completion date

F. Special Conditions of Contract

30 Delays Ordered by The Engineer 48 63 Labour

31 Management Meetings 49 64 Compliance with labour

regulations Arbitration

32 Early Warning 49 65

C. Quality Control

33 Identifying Defects

35 Correction of Defects

36 Uncorrected Defects

CONDITIONS OF CONTRACT

Terms which are defined in the Contract Data are not also defined in the Conditions of

Contract but keep their defined meaning.

Bill of Quantities means the priced and completed Bill of Quantities forming part of the Bid

Compensation Events are those defined in Clause 44 hereunder

The Completion Date is the date of completion of the Works as certified by the Engineer in

accordance with Sub Clause

The Contract is the contract between the Employer and Contractor to execute, complete

and maintain the Works till the completion of Defects Liability Period. It consists of the

documents listed in Clause 2.3 below.

The Contract data defines the documents and other information which comprise the

The Contractor is a person or corporate body whose Bid to carry out the Work has been

accepted by the Employer.

The Contractor’s Bid is the completed Bidding document submitted by the Contractor to the

Employer and includes Technical and Financial Bids.

The Contract Price is the price stated in the Letter of Acceptance and thereafter as adjusted

in accordance with the provisions of the Contract.

Days are calendar days: months are calendar months.

The Defects Liability Period is the period named in the Contract Data and calculated from

the Completion Date.

The Employer is the party who will employ the Contractor to carry out the Works.

The Engineer is the person named in the Contract Data (or any other competent person

appointed and notified to the contractor to act in replacement of the Engineer) who is

responsible for supervising the Contractor, administering the Contract, certifying payments

due to the Contractor, issuing and valuing Variations to the Contract, awarding extensions of

time, and valuing the Compensations Events.

Equipment is Contractor’s machinery and vehicles brought temporarily to the site to

construct the Works.

The Initial Contract Price is the Contract Price listed in the Employer’s Letter of Acceptance.

The Intended Completion Date is the date on which it is intended that the Contractor

shall complete the Works. The Intended Completion Date is specified in the Contract Data.

The Intended Completion Date may be revised only by the Engineer by issuing an extension

Materials are all supplies, including consumables, used by the contractor for incorporation

Plant is any integral part of the work which is to have mechanical, electrical, electronic or

chemical or biological functions.

The Site is the area defined as such in the Contract Data.

Site Investigation Reports are those which were included in the Bidding documents

and are factual interpretive reports about the surface and subsurface conditions at the

Specifications means the Specifications of the works included in the Contract and any

modification or addition made or approved by the Engineer.

The Start Date is given in the Contract Data. It is the date when the Contractor shall

commence execution of the works. It does not necessarily coincide with any of the Site

Possession Dates.

A Subcontractor is a person or corporate body who has a Contract with the Contractor to

carry out a part of the work in the Contract which includes work on the Site.

Temporary Works are works designed, constructed, installed, and removed by the

Contractor which are needed for construction or installation of the Works.

A Variation is an instruction given by the Engineer, which varies the Works.

The Works are what the Contract requires the Contractor to construct, install, and turn over to

the Employer, as defined in the Contract Data.

2. 0 Interpretation

2.1 In interpreting these Conditions of Contract, singular also means plural, male also

means female or neuter and the other way around. Heading have no significance.

Words have their normal meaning under the language of the Contract unless

specifically defined. The Engineer will provide instructions clarifying queries about

Conditions of Contract.

2.2 If sectional completion is specified in the Contract Data, references in the

Conditions of Contract to the Works, the Completion date, and Intended Completion Date

apply to any Section of the Works (other than references to the Completion Date and

Intended Completion date for the whole works)

2.3 The documents forming the Contract shall be interpreted in the following order

(2) Letter of Acceptance, notice to proceed with works

(3) Contractor’s Bid

(4) Contract Data

(5) Conditions of Contract including Conditions of Contract

(6) Specifications

(8) Bills of quantities and

(9) Any other document listed in the Contract Data as forming part of the Contract.

3. Language and Law

3.1 The language of the Contract and the law governing the Contract are stated in the

4. Engineers Decisions

4.1 Except where otherwise specifically stated, the Engineer will decide contractual

matters between the Employer and the Contractor in the role representing the Employer.

5.1 The Engineer may delegate any of his duties and responsibilities to

other people after notifying the Contractor and may cancel any delegation after notifying the

6. Communications

6.1 Communications between parties which are referred to in the conditions are

effective only when in writing. A notice shall be effective only when it is delivered (in

terms of Indian Contract Act).

7. Sub-Contracting

7.1 The Contractor may subcontract any portion of work, up to a limit specified in

contract data, with the approval of the engineer but may not assign the Contract without

the approval of the Employer in writing. Subcontracting shall not alter the Contractor’s

obligations. Sub-contracting of supply or specific items of work is not allowed.

7.2 The sub-contractor must be registered in appropriate class and category for the part

of work to be subcontracted.

8. Other Contractors

8.1 The Contractor shall cooperate and share the Site with other contractors, public

authorities, utilities and the Employer between the dates given in the Schedule of other

Contractor. The Contractors shall as refer to in the Contract Data, also provide facilities and

services for them as described in the Schedule. The employer may modify the schedule of

other contractors and shall notify the contractor of any such modifications.

9.1 The Contractor shall employ the key personnel named in the Schedule of Key Personnel as

referred to in the Contract Data to carry out the functions stated in the Schedule or other

personnel approved by the Engineer. The Engineer will approve any proposed

replacement of key personnel only if their qualifications, abilities, and relevant experience

are substantially equal to or better than those of the personnel listed in the Schedule.

9.2 If the engineer asks the Contractor to remove a person who is a member of the

Contractor Staff or his work force stating the reasons the Contractor shall ensure that the

person leaves the Site within seven days and has no further connection with the work in the

10. Employer’s and Contractors Risks

10.1 The Employer carries the risk which these Contract states are Employer’s risks, and the

Contractor carries the risks which these Contracts states are Contractor’s risk.

11. Employer’s Risks

11.1 The employer is responsible for the excepted risks which are (a) in so far as they

directly affect the execution of the Works, the risks of war, hostilities, invasion, act of

foreign enemies, rebellion, revolution, insurrection or military or usurped power, civil war,

riot commotion or disorder (unless restricted to the Contractor’s employees), and

contamination from any nuclear fuel or nuclear waste or radioactive toxic explosive.

12. Contractor’s Risks

12.1 All risks of loss of or damages to physical property and of personal injury and death

which arise during and in consequence of the performance of the Contract other than the

excepted risks are the responsibility of the Contractor.

13.1 The Contractor shall provide, in the joint names of the Employer and the Contractor,

insurance cover from the Start date to the end of the Defects Liability Period, in the

amounts and deductibles stated in the Contract data for the following events which are due

to the Contractor’s risks:

(a) Loss of or damage to the works, Plant and materials,

(b) Loss of or damage to Equipment

(c) Loss of or damages of property (expect the Works, Plant, Materials and Equipment) in

connection with the Contract; and

(d) Personal injury or death.

13.2 Policies and certificates for insurance shall be delivered by the Contractor to the

Engineer for the Engineer’s approval before the Start Date. All such insurance shall provide

for compensation to be payable in the types and proportions of currencies required to rectify

the loss or damage incurred.

13.3 If the Contractor does not provide any of the policies and certificates required, the

Employer may affect the insurance which the Contractor should have provided and recover

the premiums the Employer has paid from payments otherwise due to the Contractor or, if

no payment is due, the payment of the premiums shall be a debt due.

13.4 Alterations to the terms of an insurance shall not be made without the approval of the

13.5 Both parties shall comply with any conditions of the insurance policies.

14. Site Investigation Report

14.1 The Contractor in preparing the Bid shall rely on any site Investigation reports

referred to in the Contract Data, supplemented by any information available to the Bidder.

15. Queries about the Contract data

15.1 The engineer will clarify queries on the Contract Data

16. Contractor to Construct the Works

16.1 The Contractor shall construct and install the works in accordance with the

specification and Drawings.

17. The Works to be completed by the Intended Completion Date

17.1 The Contractor may commence execution of the Works on the Start Date

and shall carry out the Works in accordance with the programme submitted by the Contractor,

as updated with the approval of the Engineer, and complete them by the Intended

Completion date

18. Approval by the Engineer

18.1 The Contractor shall submit Specifications and Drawings showing the proposed

Temporary works to the Engineer, who is to approve them if they comply with the

Specifications and drawings.

18.2 The Contractor shall be responsible for design of temporary works.

18.3 The Engineer’s approval shall not alter the contractor responsibility for design of the

Temporary works.

18.4 The Contractor shall obtain approval of third parties to the design of the Temporary

works where required.

18.5 All Drawings prepared by the Contractors for the execution of the temporary or

permanent work are subject to prior approval by the Engineer before their use.

19.1 The Contractor shall be responsible for the safety of all activities on the Site.

20. Discoveries

20.1 Anything of historical or other interest or of significant value unexpectedly

discovered on the site is the property of the Employer. The contractor is to notify the

engineer of such discoveries and carry out the Engineer’s instructions for dealing with them.

21. Possession of the Site

21.1 The Employer shall give possession of all parts of the site to the Contractor. If possession of

a part is not given by the date stated in the Contract Data the Employer is

deemed to have delayed the start of the relevant activities and this will be a Compensation

21.2 If within 25% of the time limit of the project, 80% of possession of the site is not

handed over to the Contractor, then contractor/ Employer may fore-close the contract.

Contractor/Employer has to foreclose the work within 30 days after lapse of 25%-time

limit and after 30 days foreclosure option will be closed.

22. Access to the Site

22.1 The Contractor shall allow the Engineer and any person authorized by the

Engineer access to the Site, to any place where work in connection with the Contract is

being carried out or is intended to be carried out and to any place where materials or plants are

being manufactured/ fabricated/ assembled for the works.

23. Instructions

23.1 The Contractor shall carry out all instructions of the Engineer pertaining to

works which comply with the applicable laws where the site is located.

23.2 The Contractor shall permit the Employer to inspect the Contractor’s accounts and

records relating to the performance of the Contractor and to have them audited by

auditors appointed by the Employer, if so required by the Employer.

24.1 If the Contractor is of the view that a decision taken by the Engineer was

either outside the authority given to the Engineer by the Contract or that the decision was

wrongly taken, the decision shall be referred to Chief Officer (Higher Authority) within

days of the notification of the Engineer's decision. If the issue is not resolved, any party can

refer the matter for conciliation within 15 days from the decision given by the Chief Officer.

(a) For the work up to Rs.100 Cr., if any of the parties is not satisfied with the decision

of the Engineer-in-charge, both the parties have to refer to the Chief Officer concern

for the conciliation process.

If the dispute is not resolved through the conciliation process, he may refer the dispute to

Gujarat Public Works Contract Dispute Arbitration Tribunal. If the Contractor fails to refer a

claim / dispute to the Higher Authority within 14 days of the notification of the Engineer's

decision, the Contractor shall not be entitled to any additional payment/claim if he doesn’t

follow the above sequence in stipulated time and he should not stop the work.

25. Procedure for Disputers

25.1 The arbitration shall be conducted in accordance with the arbitration procedure

stated in the Special Conditions of Contract.

26.1 Within the time stated in the Contract Data the Contractor shall submit to the

Engineer for approval a Programme showing the general methods, arrangements orders,

and timing for all the activities in the works along with monthly cash flow forecast.

26.2 An update of the Programme shall be a programme showing the

actual progress achieved on each activity and the effect of the progress achieved on the

timing of the remaining work including any changes to the sequence of the activities.

26.3 The Contractor shall submit to the Engineer, for approval an updated programme at

intervals no longer than the period stated in the Contract data. If the Contractor does not

submit an updated programme within this period, the Engineer may withhold the amount

stated in the Contract data from the next payment after the date on which the overdue

programme has been submitted.

26.4 The Engineer’s approval of the programme shall not alter the Contractor’s

obligations. The Contractor may revise the programme and submit it to the Engineer again

at any time. A revised programme is to show the effect of Variations and Compensations

27. Extension of the Intended Completion Date

27.1 The Engineer shall extend the Intended Completion Date if a compensation Event

occurs or a Variation is issued which makes it impossible for completion to be achieved

by the Intended Completion Date without the Contractor taking steps to accelerate the

remaining work and which would cause the Contractor to incur additional cost.

27.2 The Engineer shall decide whether and by how much to extend the Intended

Completion Date within 35 days of the Contractor asking the Engineer for a decision upon

the effect of a compensation event or Variation and submitting full supporting information. If

the Contractor has failed to give early warning of a delay or has failed to cooperate in

dealing with a delay, the delay by this failure shall not be considered in assessing the new

Intended Completion Date.

27.3 The Engineer shall within 14 days of receiving full justification from the contractor for

extension of Intended Completion Date refer to the Employer his decision. The employer

shall in not more than 21 days communicate to the engineer the acceptance or otherwise of

the Engineer’s decision. If the employer fails to give his acceptance, the Engineer shall not

grant the extension and the contractor may refer the matter under Clause

28. Delays Ordered by the Engineer

28.1 The Engineer may instruct the Contractor to delay the start or progress of any activity

within the works.

29. Management Meetings

29.1 Either the Engineer or the Contractor may require the other to attend a management

meeting. The business of a management meeting shall be to review the plans for

remaining work and to deal with matters raised in accordance with the early warning

29.2 The Engineer shall record the business of management meetings and is to provide

copies of his record to those attending the meeting and to the Employer. The responsibility

of the parties for actions to be taken is to be decided by the Engineer either at the

management meeting or after the management meeting and stated in writing to all who

attended the meeting.

30. Early Warning

30.1 The Contractor is to warn the Engineer at the earliest opportunity of specific likely

future events or circumstances that may adversely affect the quality of the work, increase

the Contract price or delay the execution of works. The Engineer may require the

contractor to provide an estimate of the expected effect of the future event or

circumstance on the contract price and completion date. The estimate is to be provided by

the Contractor as soon as reasonably possible.

30.2 The Contractor shall cooperate with the Engineer in making and considering

proposals for how the effect of such an event or circumstance can be avoided or reduced by

anyone involved in the work and in carrying out any resulting instruction of the Engineer.

C. QUALITY CONTROL

31. Identifying Defects/ Defect liability period

31.1 : Defect liability period: The contractor shall be responsible to make good and

remedy at his own expense any defect which may develop or may be noticed before the

period mentioned hereunder from the certified date of completion. The Engineer in charge

shall give the contractor a notice in writing about the defects and the contractor shall make

good the same within 15 days of receipt of the notice. In the case of failure on the part of the

contractor, the Engineer- in-charge may rectify or remove or re-execute the work at the risk

& cost of the contractor. The Engineer-in-charge shall be entitled to appropriate the

whole or any part of the amount of security deposit towards the expenses, if any, Incurred

by him in rectification, removal or re-execution. The Defects Liability period shall be as

(a) For all works costing more than Rs. 50,000 and up to Rs. 1 crore (amount put tender), the

period shall be 36 (Thirty Six) months from the certified date of completion or one monsoon,

whichever is later.

(b) For major projects costing more than Rs. 1 crore, the period shall be 36 Months (03 Year)

from the certified date of completion.

Modified vide R & B D Circular No. PAC-11-102008-2076-N dated 31/8/2009,

PRCH/102013(2976) 2759-N, Dated 27/05/2013 and Circular No.TNC/10/2016/Clause

17A (Correction/(1)C Dated 12/05/2016]

32.1 If the engineer instructs the Contractor to carry out a test not specified in the

Specification to check whether any work has a Defect and the test shows that it does, the

Contractor shall pay for the test and any samples. If there is no defect the test shall be a

Compensation Event.

32.2 #1% of the amount of work done should be deducted from R.A. Bill of the

contractor for testing the quality of material workmanship, irrespective of actual charges.

32.3 Agency has to establish testing laboratory on site for the various test to be carried

out in the work for this purpose agency shall construct a pukka laboratory building with all

facility on site at location specified by the engineer in charge.

33. Correction of defects

33.1 The engineer shall give notice to the Contractor of any defects before the end of the

defects Liability Period, which begins at Completion and is defined in the contract data. The

Defects Liability Period shall be extended for as long as Defects remain to be corrected.

33.2 Every time notice of a Defect is given, the Contractor shall correct the notified defect

within the length of time specified by the Engineer’s notice.

34. Uncorrected Defects

34.1 If the Contractor has not corrected a defect within the time specified in the

Engineer’s notice, the Engineer will assess the cost of having the Defect corrected, and the

Contractor will pay this amount.

D. COST CONTROL

35. Bill of Quantities

35.1 The bill of Quantities shall contain items for the constructions, installation, testing

and commissioning work to be done by the Contractor.

35.2 The bill of Quantities is used to calculate the Contract price. The Contractor is

paid for the quantity of the work done at the rate in the Bill of Quantities for each item.

36. Change in the Quantities

36.1 The Engineer shall have power to make any alterations in or addition to 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 the work in accordance with any instruction in this connection which may be

given to him in writing signed by the Engineer and such alteration shall not invalidate the

contract and any additional 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 respects on which he agreed to do the main work and at the same

rate as are specified in the tender for the main work.

Except that when the quantity of any item exceeds the quantity as in the tender by

more than 110%, the contractor will be paid for the quantity in excess of 110%, at the

rate entered in the SOR of the year during which the excess in quantity is first executed.

37.1 All Variations shall be included in updated programmes produced by the

38. Payments for Variations

38.1 If the additional or altered work includes any class of work for which no rate is

specified in this contract, then such class of work shall be carried out as under.

(i) At the rate derived from the item within the contract which is comparable to the

one involving additional or altered class of work; where there are more than one

comparable items, the item of the contract which is nearest in comparison with regard to

class or classes of the work involved shall be selected and the decision of the

Superintending Engineer as to the nearest comparable item shall be final and binding on the

(ii) If the rate cannot be derived in accordance with (i) above, such class of works

shall be carried out at the rate entered in the Schedule of Rates of the division

for the year in which the tender was received, increased or decreased by the percentage by

which the tender amount is more or less as compared to the amount arrived at the rates

in the “Schedule of Rates” of the Division in the year in which the tender was received. If the

Schedule of rates of the Division does not contain all the items, the percentage increase or

decrease of the tender shall be calculated considering such items which were included in

the “Scheduled Rates” of the division for the year and for materials consumed on such item

the rate to be charged would be the basic rate taken into account for fixing the rate in S.O.R.

referred to above.

(iii) If it is not possible to arrive at the rate from (i) and (ii) above, such class of

work shall be carried out at the rate decided by the competent authorities on the basis of

detailed rate analysis after hearing the contractor before a Committee of two

Superintending Engineers stationed at the same place or the nearest place.

38.2 If the additional or altered work, for which no rate is entered in the “Schedule of

Rates” of the Division is ordered to be carried out before the rate is agreed upon, then the

contractor shall within seven days of the date of receipt by him of the order to carry out the

work, inform the Engineer-in-charge of the rate, which it is his intention to charge for such

class of work and if the Engineer in charge does not agree to this rates, he shall by notice in

writing be at liberty to cancel his order to carry out such class of work and arrange to carry

it out in such manner as he may consider it advisable, provided always that if the

contractor shall commence work or incur any expenditure in regard thereof before the

rates shall have been determined as lastly herein before mentioned, then in such cases he

shall only be entitled to be paid in respect of the work carried out or expenditure incurred

by him prior to the date of the determination of the rate as aforesaid according to such rate

or rates as shall be fixed by the Engineer-in-charge. In the event of the dispute, the decision

of the Superintending Engineer of the Circle shall be final.

Where, however, the work is to be executed according to the designs, drawings and

specifications recommended by the contractor and accepted by the competent authority, the

alternation above referred to shall be within the scope of such designs, drawings and

specifications appended to the tenders.

The time limit for the completion of the work shall be extended in the proportion that the

increase in the cost occasioned by alterations bears to the cost of the original work and the

certificate of the Engineer-in-charge as to such proportion shall be final and conclusive.

39. Cash Flow Forecasts

39.1 When the programme is updated, the contractor is to provide the engineer

with an updated cash flow forecast.

40. Payment certificates.

40.1 The Contractor shall submit to the Engineer monthly statements of the

estimated value of the work completed less the cumulative amount certified previously.

40.2 The Engineer shall check the Contractor’s monthly statement within 14 days and

certify the amount to be paid to the Contractor after taking in to account any credit or debit

for the month in question in respect of materials for the works in the relevant amounts

and under conditions set forth in sub-clause

32.3 of the Contract Data (secured Advance).

40.3 The value of work executed shall be determined by the Engineer.

40.4 The value of work executed shall comprise the value of the quantities of the

items in the Bill of Quantities completed.

40.5 The value of work executed shall include the valuation of variations and

compensation events.

40.6 The Engineer may exclude any item certified in a previous certificate or reduce

the proportion of any item previously certified in any certificate in the light of later

41.1 Payments shall be adjusted for deductions for advance payments, retention,

other recoveries in terms of the contract and taxes at source, as applicable under the law.

The Employer shall pay the Contractor the amounts certified by the Engineer within 28 days

of the date of each certificate.

41.2 Payment of GST (prevailing rates) on the amount payable under the contract to

the Contractor will be made by the Employer. Hence, it is the responsibility of the contractor

to pay the GST to the concerned Authority.

41.3 Items of the works for which no rate or price has been entered in will not be

paid by the Employer and shall be deemed covered by other rates and prices in the Contract.

42. Compensation events

42.1 The following are compensation Events unless they are caused by the

(a) The Employer does not give access to a part of the Site by the site Possession

date stated in Contract data to the Contractor

42.2 In case of compensation event occurs and it prevents the work being

completed beyond the Intended Completion Date then Authority will approve EOT with

eligible contractual price escalation.

43.1 The rates quoted by the Contractor must be inclusive of all taxes prevailing on due

date of bid submission including GST. However, any subsequent changes in the tax

structure by Government after due date of bid submission will be compensated (+/-)

on availability or submission of actual documentation. Contractor will have to intimate

Engineer regarding changes occurred in the tax structure after bid submission. If the

contractor fails to provide such information and if any financial obligation may arise due

to change in tax structure, same will be recovered from the contractor.

43.2 GST will be shown separately on the bills. Hence, it is the responsibility of the

contractor to shown the GST to the concerned Authority.

44. Currencies.

44.1 All payment shall be made in Indian Rupees.

45. Price Adjustment

45.1 Contract price shall be adjusted for increase or decrease in rates and price of

labour, materials, fuels and lubricants in accordance with the following principles and

procedures and as per formula given in the contract data:

(a) The price adjustment shall apply for the work done from the start date

given in the contract data up to end of the initial intended completion date or extensions

granted by the Engineer and shall not apply to the work carried out beyond the stipulated

time for reasons attributable to the contractor.

(b) The price adjustment shall be determined during each month from the

formula given in the contract data.

(c) Following expressions and meanings during to the work done during each

R = Total value of work done during the month. It would include the amount of

secured advance granted, if any, during the month less the amount of secured advance

recovered, if any during the month. It will exclude value for works executed under

variations for which price adjustment will be worked separately based on the terms

mutually agreed.

45.2 To the extent that full compensation for any rise or fall in costs to the contractor

is not covered by the provisions of this or other clause in the contract, the unit rates and

prices included in the contract shall be deemed to include amounts to cover the contingency

of such other rise or fall in costs.

46.1 The Employer shall retain from each payment due to Contractor the

proportion stated in the Contract Data until Completion of the whole of the Works.

46.2 On Completion of the whole of the Works half the total amount retained is

46.2 On Completion of the whole of the Works half the total amount retained is

repaid to the Contractor and half when the Defects Liability Period has passed and the

Engineer has certified that all Defects notified by the Engineer to the Contractor before the

end of this period have been corrected.

46.3 On completion of the whole works, the contractor may substitute retention

money with an “on demand” Bank guarantee.

In case, Contractor requests for refund of the Retention Money deducted by the Employer

under the provision of this clause, Employer shall consider the said request of the

Contractor provided that the refund hereunder shall be made in tranches of not less than

1% (One Percent) of the Contract Price and Contractor furnishes an irrevocable and

unconditional Bank guarantee for an equal amount substantially in the format of Bank

Guarantee for Performance Guarantee enclosed with SBD and valid up to 60 day beyond the

scheduled / extended Defects Liability Period. On completion of the whole works, the

contractor has however an option to submit a fresh irrevocable and unconditional Bank

Guarantee for an amount equal to 5% of the total value of work executed substantially in the

format of Bank Guarantee for Performance Guarantee enclosed with SBD and valid up to

days beyond the Defect Liability Period and yet refund the Retention Money Bank

Guarantee submitted for refund of Retention Money.

47. Liquidated Damages

47.1 The Contractor shall pay liquidated damages to the Employer at the rate per day

stated in the Contract Data for each day that the Completion Date is later than the Intended

Completion Date (for the whole works or the milestone as stated in the contract data). The

total amount of liquidated damages shall not exceed the amount defined in the Contract

total amount of liquidated damages shall not exceed the amount defined in the Contract

Data. The Employer may deduct liquidated damages from payment due to the Contractor.

Payment of liquidated damages does not affect the Contractor’s liabilities.

47.2 If the Intended Completion Date is extended after liquidated damages have

been paid, the Engineer shall correct any overpayment of liquidated damages by the

Contractor by adjusting the next payment certificate. The Contractor shall not be entitled

for any interest on the over payment calculated from the date of payment to the date of

47.3 If the contractor fails to comply with the time for completion as stipulated in the

tender, then the contractor shall pay to the employer the relevant sum stated in the

Contract Data as Liquidated damages for such default and not as penalty for everyday or part

of day which shall elapse between relevant time for completion and the date stated in the

taking over certificate of the whole of the works on the relevant section, subject to the limit

stated in the contract data.

The employer may, without prejudice to any other method of recovery deduct the amount of

such damages from any monies due or to become due to the contractor. The payment or

deduction of such damages shall not relieve the contractor from his obligation to complete

the works on from any other of his obligations and liabilities under the contract.

47.4 If, before the Time for Completion of the whole of the Works or, if applicable any

Section, a Taking Over Certificate has been issued for any part of the Works or of a

Section, the liquidated damages for delay in completion of the remainder of the Works or of

that Section shall, for any period of delay after the date stated in such Taking-Over-

Certificate, and in the absence of alternative provisions in the Contract, be reduced in the

proportion which the value of the part so certified bears to the value of the whole of the

Works or Section, as applicable. The provisions of this Sub-clause shall only apply to the rate

of liquidated damages and shall not affect the limit thereof.

51.1 The performance Security (including additional security for unbalanced bids)

shall be provided to the Employer no later than the date specified in the Letter of

Acceptance and shall be issued in an amount and form and by a bank or surety acceptable to

the Employer, and denominated in Indian Rupees. The performance Security shall be valid

until a date 60 days from the date of expiry of Defects Liability Period and the additional

security for unbalanced bids shall be valid until a date 28 days from the date of issue of the

certificate of completion.

52. Cost of Repairs.

52.1 Loss or damage to the Works or Materials to be incorporated in the Works

between the Start date and the end of Defects Correction periods shall be remedied by

the Contractor at the Contractor’s cost if the loss or damages arises from the Contractor’s

acts or omissions.

E. FINISHING THE CONTRACT

53.1 The Contractor shall request the Engineer to issue a Certificate of Completion of the

works and the Engineer will do so upon deciding that the work is completed.

54. Taking Over

54.1 The Employer shall take over the Site and the Works within seven days of the

Engineer issuing a certificate of Completion.

55. Final Account

55.1 The Contractor shall supply to the Engineer a detailed final account of the total

amount that the Contractor considers payable as full and final settlement of all claims under

the Contract for items before the end of the Defects Liability Period. The Engineer shall

issue a Defect Liability Certificate and certify any final payment that is due to the

Contractor within 56 days of receiving the Contractor's account if it is correct and

complete. If it is not, the Engineer shall issue within 56 days a schedule that states the

scope of the corrections or additions that are necessary. If the Final Account is still

unsatisfactory after it has been resubmitted, the Engineer shall decide on the amount

payable to the Contractor and issue a payment certificate, within 56 days of receiving the

Contractor’s revised account.

55.2 If reversal in characteristic of tender (L1 becoming L2) on account of excesses and

savings in final account is observed, the Engineer/Employer shall be at liberty to restrict

the final payment of BOQ items to the lowest amount evaluated of the bids considering the

final quantities and the rates quoted including the rebates if any. Payment of variation

items shall however be made at the rates approved by the Employer, within 90 days from

the physical completion of work.

56. Operating and Maintenance Manuals

56.1 If “as built” drawings and/or operating and maintenance manuals are required, the

Contractor shall supply them by the dates stated in the Contract data.

56.2 If the Contractor does not supply the Drawings and/or manuals by the dates stated

in the Contract data, or they do not receive the Engineer’s approval, the Engineer shall

withhold the amount stated in the Contract Data from payments due to the Contractor.

57. Termination

57.1 The Employer or the Contractor may terminate the Contract if the other party causes a

fundamental breach of the Contract.

57.2 Fundamental breaches of Contract include, but shall not be limited to the following:

a) The contractor stops work for 28 days when no stoppage of work is shown on the

current programmed and the stoppage has not been authorized by the Engineer

b) The Engineer instructs the Contractor to delay the progress of the Works and the

instructions is not withdrawn within 28 days;

c) The Employer or the Contractor is made bankrupt or goes into liquidation other than for

a reconstructions or amalgamation

d) A payment certified by the Engineer is not paid by the Employer to the Contractor

within 56 days of the date of the Engineer’s certificate

e) The Engineer gives Notice that failure to correct a particular Defect is a fundamental

breach of Contract and the Contractor fails to correct it within a reasonable period of time

determined by the Engineer;

f) The Contractor does not maintain a security which is required;

g) The Contractor has delayed the completion of works by the number of days for which

the maximum amount of liquidated damages can be paid as defined in the Contract data; and

h) If the Contractor, in the judgment of the Employer has engaged in corrupt or fraudulent

practices in competing for or in executing the Contract.

For the purpose of this paragraph: “corrupt practice” means the offering, giving, receiving

or soliciting of anything of value to influence the action of a public official in the

procurement process or in contract execution. “Fraudulent practice” means a

misrepresentation of facts in order to influence a procurement process or the execution of a

contract to the detriment of the borrower, and includes collusive practice among Bidders

(prior to or after bid submission) designed to establish bid prices at artificial non-

competitive levels and to deprive the Borrower of the benefits of free and open

57.3 When either party to the Contract gives notice of a breach of contract to the Engineer

for a cause other than those listed under Sub Clause 59.2 above, the Engineer shall decide

whether the breach is fundamental or not.

57.4 Notwithstanding the above, the employer may terminate the Contract for

58. Payment upon Termination

58.1 If the Contract is terminated because of a fundamental breach of Contract by the

Contractor, the Engineer shall issue a Certificate for the value of the work done less advance

payments received up to the date of the issue of the Certificate, less other recoveries due in

terms of the contract, less taxes due to deducted at source as per applicable law and less the

percentage to apply to the work not completed as indicated in the Contract data.

Additional Liquidated Damages shall not apply. If the total amount due to the Employer

Additional Liquidated Damages shall not apply. If the total amount due to the Employer

exceeds any payment due to the Contractor the difference shall be a debt payable to the

58.2 If the Contract is terminated at the Employer’s convenience or because of a

fundamental breach of Contract by the Employer, the Engineer shall issue a certificate for

the value of the work done, the cost of balance material brought by the contractor and

available at site, the reasonable cost of removal of equipment, repatriation of the

Contractor’s personnel employed solely on the works, and the Contractor’s cost of

protecting and securing the Works and less advance payment received up to the date of

the certificate, less other recoveries due in terms of the contract and less taxes due to

deducted at source as per applicable law.

59.1 All materials on the Site, Plant Equipment’s, Temporary Works and Works are deemed

to be property of the Employer, if the Contract is terminated because of a contractor’s default.

60. Release from Performance

60.1 If the Contract is frustrated by the outbreak of war of by any other event entirely

outside the control of either the Employer or the Contractor the Engineer shall certify that

the Contract has been frustrated. The Contractor shall make the Site safe and stop work as

quickly as possible after receiving this certificate and shall be paid for all work carried out

before receiving it and for any work carried out afterwards to which commitment was made.

F. SPECIAL CONDITIONS OF CONTRACT

The Contractor shall, unless otherwise provided in the Contract, make his own

arrangements for the engagement of all staff and labour, local or other, and for their

payment of housing, feeding and transport.

The Contractor shall, if required by the Engineer, deliver to the Engineer a return in detail,

in such form and at such intervals as the Engineer may prescribe, showing the staff and the

numbers of the several classes of labour from time to time employed by the Contractor

on the site and such other information as the Engineer may require.

62. COMPLIANCE WITH LABOUR REGULATIONS

During continuance of the contact, the Contractor and his sub- contractor shall abide at

all times by all existing labour enactments and rules made thereunder, regulations,

notification and bye laws of the State or central Government or local authority and any

other labour law (including rules), regulations, bye laws that may be passed or

notifications that may be issued under any labour law in future either by the State or the

Central Government or the local authority. Salient features of some of the major labour laws

that are applicable to the construction industry are given below. The Contractor shall keep

the Employer indemnified in case any action is taken against the Employer by the

competent authority on account of contravention of any of the provisions of any Act or

rules made thereunder, regulations or notifications including amendments. If the Employer

is caused to pay or reimburse, such amounts as may be necessary to cause or observe, or

for observance of the provisions stipulated in the notifications/bye

laws/Acts/Rules/regulations including amendments, if any, on the part of the Contractor, the

Engineer/employer shall have the right to deduct any money due to the Contractor including

his amount of performance security. The Employer/Engineer shall also have the right to

recover from the Contractor any sum required or estimated to be required for making

good the loss or damage suffered by the Employer.

The employees of the Contractor and the Sub-Contractor in no case shall be treated as the

employees of the Employer at any point to time.

SALIENT FEATURES OF SOME MAJOR LABOUR AND OTHER LAWS APPLICABLE TO

ESTABLISHMENTS ENGAGED IN BUILDING AND OTHER CONSTRUCTIONS WORK

A) Workmen Compensation Act 1923: - The Act provides for compensation in case of

injury by accident arising out of and during the course of employment.

B) Payment of Gratuity Act. 1972: - Gratuity is payable to an employee under the Act on

satisfaction of certain conditions on separation if an employee has completed 5 years’

service or more on death, the rate of 15 days wages for every completed year of service. The

Act is applicable to all establishments employing 10 or more employees.

C) Employees P.F. and Miscellaneous Provision Act 1952: - The Act Provides for

monthly contributions by the employer plus workers @ 10% or 8.33% The benefits payable

under the Act are:

1. Pension or family pension on retirement or death, as the case may be.

2. Deposit linked insurance on the death in harness of the worker.

3. Payment of P.F. accumulation on retirement/death etc.

D) Maternity Benefit Act 1951: - The Act provides for leave and some other benefits to

women employees in case of confinement or miscarriage etc.

E) Contract Labour (Regulation & Abolition) Act 1970: The Act provides for certain

welfare measures to be provided by the Contractor to contract labour and in case the

Contractor fails to provide, the same are required to be provided, by the Principal

Employer by Law. The principal Employer is required to take Certificate of Registration and

the Contractor is required to take license from the designated Officer. The Act is applicable

to the establishments or Contractor of Principal Employer, if they employ 20 or more

contract labour.

F) Minimum Wages Act 1948: - The Employer is supposed to pay not less than the

Minimum Wages fixed by appropriate Government as per provisions of the Act, if the

employment is a scheduled employment. Construction of Building, Roads, Runways are

scheduled employment.

G) Payments of wages Act 1936: - It lays down as to by what date the wages are to be paid,

when it will be paid and what deductions can be made from the wages of the workers.

H) Equal remunerations Act 1979: - The Act provides for payment of equal wages for

work of equal nature to Male and Female workers and for not making discrimination against

female employees in the matter of transfer, training and promotions etc.

I) Payments of Bonus Act 1965: - The Act is applicable to all establishments

employing 20 or more employees. The Act provides for payments of annual bonus

subject to a minimum of 8.33% of wages and maximum of 20 % of wages to employees

drawing Rs. 3500/- per month or less. The bonus to be paid to employees getting Rs,

2500/- per month or above Rs. 3500/- per month shall be worked out by taking wages as

Rs. 2500/- per month only. The Act does not apply to certain establishments. The newly

set-up establishments are exempted for five years in certain circumstances. Some of the

State Governments have reduced the employment size from 20 to 10 for the purpose of

applicability of this Act.

J) Industrial Disputes Act 1947: - The Act lays down the machinery and procedure for

resolutions of Industrial disputes, in what situations a strike or lock-out becomes illegal

and what are the requirements for laying off or retrenching the employees or closing down

the establishment.

K) Industrial employment (standing Orders) Act 1946: - It is applicable to all

establishments employing 100 or more workmen (employment size reduced by some of the

State and Central Government to 50). The Act provides for laying down rules governing

the conditions of employment by the Employer on matters provided in the Act and get the

same certified by the designated Authority.

L) Trade Unions Act 1926: - The Act lays the procedure for registration of trade unions

of workmen and employers. The Trade Unions registered under the Act have given certain

immunities from civil and criminal liabilities.

M) Child Labour (Prohibition & Regulation Act 1986: - The Act prohibits employment

of children below 14 years of age in certain occupations and process and provides for

regulation of employment of children in all other occupations and processes. Employment of

Child labour is prohibited in Building and Construction Industry.

N) Inter – State Migrant workmen’s (Regulation of Employment & Conditions of

service) Act 1979:- The Act is applicable to an establishment which employs 5 or more

inter-state migrant workmen through an intermediary (who has recruited workmen in one

state for employment in the establishment situated in another state).The inter-state migrant

workmen, is an establishment to which this Act becomes applicable, are required to be

provided certain facilities such as housing, medical aid, traveling expenses from home upto

the establishment and back, etc.

O) The Building and Other Construction workers (Regulation of employment and

Conditions of Service) Act 1996 and the Cess Act of 1996: - All the establishments

who carry on any building or other constructions work and employ 10 or more workers are

covered under this Act.

All such establishments are required to pay cess at the rate not exceeding 2% of the cost of

construction as may be modified by the government. The Employer of the establishment is

required to provide safety measures at the Building or construction work and other

welfare measures, such as canteens, First Aid facilities, Ambulance, Housing accommodations

for workers near the workplace etc. The Employer to whom the Act applies has to obtain a

registration certificate from the Registering Officers appointed by the Government.

P) Factories Act 1948: - The Act lays down the procedure for approval of plans before

setting up a factory, health and safety provisions, welfare provisions, working hours,

annual earned leave and rendering information regarding accidents or dangerous

occurrences to designated authorities. It is applicable to premises employing 10 persons or

more with aid of power or 20 or more persons without the aid of power engaged in the

manufacturing process.

Q) Royalty charges-The contractor shall pay the royalty to the competent

authority as per rule. The royalty charges paid shall be borne by the contractor

and shall not be reimbursed by the Employer.

R) Following Pollution control Acts and amendments made thereof from time

to time shall be applicable.

1. Water (Preservation and control of Pollution) Act,

2. Air (Prevention and Control of Pollution Act

3. Environmental (Protection) Act

The contractor must commit to adopting Environmental management plan for

best energy use, waste management, the reduction of pollution as in EMS

(Environmental Management system) ISO-14001-

63. ARBITRATION (GCC Clause 24)

The procedure for arbitration will be as follows: -

63.1 If the Contractor is of the view that a decision taken by the Engineer was either

outside the authority given to the Engineer by the Contract or that the decision was wrongly

taken, the decision shall be referred to # Chief Officer (Higher Authority) within 14 days

of the notification of the Engineer's decision. If the issue is not resolved, any party can refer

the matter for conciliation within 15 days from the decision given by the # Chief Officer.

a) For the work up to Rs.100 Cr., if any of the parties is not satisfied with the decision

of the #Superintending Engineer, both the parties have to refer to the #Chief Officer

concerned for the conciliation process.

b) For the work more than Rs.100 Cr., if any of the parties is not satisfied with the

decision of the Superintending Engineer, both parties have to refer to the

#Secretary, Roads & Building Department, Government of Gujarat for the

conciliation process.

If the dispute is not resolved through the conciliation process, contractor may refer

the dispute to Gujarat Public Works Contract Dispute Arbitration Tribunal. If the

Contractor fails to refer a claim / dispute to the Higher Authority within 14 days of

the notification of the Engineer's decision, the Contractor shall not be entitled to

any additional payment/claim if he doesn’t follow the above sequence in stipulated

time. However, during such period, he would not stop the work in any case.

Clause Reference With respect To

Item marked “N/A” do not apply to this Contract.

1. The Employers is [CL.1.1]

Name: Regional commissioner municipality, Address:

Gandhinagar, Gujarat

Name of authorized Representative The Chief Officer, Kheda Nagarpalika

2. The Engineer is Clerk - Drainage Department,

Kheda Nagarpalika, BECHRAJI

Name of Authorized Representative: Mr.

3. The Defects Liability Period is 3 (Three) years from the date of [CL.1.1&33]

4. The Start Date shall be 1st days for the date of issue of the Notice [CL.1.1]

to proceed with the work.

5. The Intended Completion Date for the whole of the works is 36 [CL.1.1,17&2]

Months after start of work with the following milestones:

Milestone dates: [CL.2.2& 49.1]

Physical works to be completed Period from the start date

6. The Site is located at As per name of Work, Ta. Kheda, Dist : Kheda

7. The name and identification number of the Contract is: OPERATION

& MAINTENANCE OF 5.2 MLD SBR TYPE SEWAGE TREATMENT

PLANT AT KHEDA INCLUDING ALL MECHANICAL, ELECTRICAL,

INSTRUMENTATION EQUIPMENT’S AND CIVIL STRUCTURES AS

PER TENDERS CONDITION & SPECIFICATION FOR 1 YEARS AT-

KHEDA NAGARPALIKA

8. The works consist of etc. With items as per B.O.Q. The works

shall, inter alia, include the following, as Specified or as

(A) Other Items

Any Other Items as required to full fill all contractual obligations as per the Bid

10. The following documents also form part of the Contract:

As per clause 2-3 [CL.2.3(9)]

11. The law which applies to the Contract is the law of Union of India [CL.3.1]

12. The language of the Contract documents is English [CL.3.1]

13. Limit of subcontracting 25% of the Initial Contract Price [CL.7.1]

14. The Schedule of Other Contractors [CL.8]

15. The Schedule of Key Personnel As per Annex – II to Section I [CL.9]

16. The minimum insurance cover for physical property, injury and death [CL13]

is Rs. 5 lakhs per occurrence with the number of occurrences limited to four. After each

occurrence, the contractor will pay an additional premium necessary to make insurance valid for

four occurrences always

17. Site Investigation report

18. The Site Possession dates shall be …………………….. [CL.21]

19. The period for submission of programme for approval of the [CL. 27.1]

engineer shall be 21 days from the issue of Letter of Acceptance.

20. The period between program updates will be …….. days. [CL.27.3]

21. The amount to be withheld for late submission of an updated [CL. 27.3]

programme shall be Rs ........................... lakhs

22. The following events shall also be Compensation Events Substantially [CL.

adverse ground conditions encountered during the course of execution of work

not provided for in the bidding document

(i) Removal of underground utilities detected subsequently

(ii) Significant changes in classification of soil requiring additional

mobilization by the contractor, e.g. ordinary soil to rock excavation,

(iii) Removal of unsuitable material like marsh, debris dumps, etc. not

caused by the contractor.

(iv) Artesian conditions

(v) Seepage, erosion landslide

(vi) River training requiring protection of permanent work

(iv) River training requiring protection of permanent work

(v) Presence of historical, archaeological or religious structures, monuments interfering with the

(vi) Restriction of access to ground imposed by civil, judicial, or military authority

23. The currency of the Contract is Indian Rupees [CL. 46]

24. The formula (e) for adjustment of prices are as under: [CL.47]

 If any of the commodities like Cement, Steel or Bitumen are not

found applicable in a work, the weight component of that commodities {i.e.

‘Cement’ (Pc), ‘Steel’ (Ps) or ‘Bitumen' (Pb) as indicated in SBD for the

purpose of Price Adjustment} shall be clubbed with the weight component

of ‘Other Material’ (Pm), such that the gross % weight of the components

shall remain as 100%.

R = value of work as defined in Clause 47.1 of Conditions of Contract

Adjustment for labour component

(i) Price adjustment for increase or decrease in the cost due to labour

shall be paid in accordance with the following formula:

VL = Increase or decrease in the cost of work during the month under

consideration due to changes in rates for local labour

L0 = The consumer price index for industrial workers for the State on

days preceding the scheduled date of opening of technical Bids as

published by Labour Bureau, Ministry of Labour, Government of India

Li = The consumer price index for industrial workers for the State for the

month under consideration as published by the Labour Bureau, Ministry of

Labour, Government of India.

Pl = Percentage of labor component of the work.

Adjustment for cement component.

(ii) Prices adjustment for increase or decrease in the cost of cement procured by the contractor

Vc = Increase or decrease in the cost of work during the month under consideration due to

changes in rates for cement.

C0 = The all-India wholesale price index for Ordinary Portland Cement on 28 days

preceding the scheduled date of opening of technical bid as published

by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade,

Ministry of Commerce & Industry.

Ci = The all India average wholesale price index for Ordinary Portland Cement for

the month under consideration as published by Office of the Economic Adviser, Department

for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry.

Pc = Percentage of cement component of the work

Adjustment for steel component

(iii) Price adjustment for increase or decrease in the cost of steel procured by the contractor

shall be paid in accordance with the following formula

Vs= Increase or decrease in the cost of work during the month under consideration due to

changes in the rates for steel

So= The all India wholesale price index for steel (Mild Steel - Long Products Rebars) on 28 days

preceding the date of opening of Bids as published by the Office of the Economic Adviser,

Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry.

Si= The all India average wholesale price index for steel (Mild Steel - Long Products Rebars) for

the month under consideration as published by Office of the Economic Adviser, Department for

Promotion of Industry and Internal Trade, Ministry of Commerce & Industry.

Ps = Percentage of steel component of the work

Note : For the application of this clause, the index of Mild Steel- Long products Rebars has been

chosen to represent the steel group.

Adjustments of bitumen component

(iv) Price adjustment for increase in the cost of bitumen shall be paid in accordance

with the following formula

Vb = Increase or decrease in the cost of work during the month underconsideration due to changes

in rates for bitumen.

Bo = The official retail price of bitumen at the IOC depot at the nearest centre on the day 28 days

prior to the scheduled date of opening of technical bid.

Bi = The official retail price of bitumen of IOC depot at the nearest centre for the 15th day of the

month under consideration.

Pb = Percentage of bitumen component of the work

Adjustment of POL (fuel and lubricant) component

(v) Price adjustment for increase or decrease in cost of POL (fuel and

lubricant) shall be paid in accordance with the following formula

Vf = Increase or decrease in the cost of work during the month under consideration due to changes

in rates for fuel and lubricants.

Fo = The official retail price of High-Speed Diesel (HSD) at the existing consumer pumps of IOC

at the nearest centre on the day 28 prior to the date of opening of Bids.

Fi = The official retail price of HSD at the existing consumer pumps of IOC at the nearest centre

for the 15th day of the month of the under consideration.

Pf = Percentage of fuel and lubricants component of the work

Note: For the application of this clause, the price of High-Speed diesel Oil has been chosen to

represent the fuel and lubricants group.

Adjustment for Construction Machinery

(vi) Price adjustment for increase or decrease in the cost of plant and Machinery spare

procured by the Contractor shall be paid in accordance with the following formula

Vp= Increase or decrease in the cost of work during the month under consideration due to

changes in rates for plant and machinery spares

P0 = The all India wholesale price index for manufacturer of machinery for mining,

quarrying and Construction for the month under consideration as published Office of the

Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of

Commerce & Industry.

Pi = The all India average wholesale price index for manufacturer of machinery for mining,

quarrying and Construction for the month under consideration as published Office of the

Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of

Commerce & Industry.

Pp = Percentage of plant and machinery spares component of the work.

Note: For the application of this clause, index of Heavy Machinery and parts has been chosen to

represent the Plant and Machinery Spares group

Adjustment of other materials Component

(vii) Price adjustment for increase or decrease in cost of local materials

other than cement, steel, bitumen and POL procured by the contractor shall be paid in

accordance with the following formula

Vm = Increase or decrease in the cost of work during the month under consideration due to

change in rates for local materials other than cement, steel, bitumen and POL.

M0 = The All Indian wholesale price index (all commodities) on 28 days preceding the

scheduled date of opening of technical Bids, as published by the Office of the Economic

Adviser, Department for Promotion of Industry and Internal Trade, Ministry of

Commerce & Industry.

Mi= The All India wholesale price index (all commodities) for the month under consideration as

published by the Office of the Economic Adviser, Department for Promotion of Industry

and Internal Trade, Ministry of Commerce & Industry.

Pm = Percentage of local material components (other than cement, steel, bitumen and POL) of the

The following percentage will govern the price adjustment for the entire contract:

2. Cement – Pc ……%

6. Plant & Machinery Spares Pp ......................................%

25. The proportion of payments retained (retention money) shall be 6% {CL. 48} from each

bill subject to a maximum of 5% of final contract price.

26. Amount of Liquidated damages forFor Whole of work {CL.49} (1/2000)th of the

delay in completion of works Initial contract price, rounded off to the

Thousand, per day. For sectional

Completion (wherever specified In item

of Contract data) (1/2000)th of initial

contract price for #5 km Section, rounded

off to the nearest thousand per day.

27. Maximum limit of liquidated damages 10 percent of the Initial {CL. 49}

For delay in completion work Contract Price rounded off to

the nearest thousand

28. Amount of Bonus for early completion Amount of bonus for early

completion of work shall be given as per CL.50 of Section-3

29. Maximum limit of bonus for early 5 percent of the Contract {CL. 50}

Completion of work Price

performance of the contract) and on

submission of unconditional Bank

Guarantee for amount of advance

31. The securities shall be for the following minimum amounts equivalent {CL. 52} As a percentage

of the Contract Price:

Performance Security for 5 percent of contract price plus Rs. …………….. (to be decided after

evaluation of the bid) as additional security in terms of ITB Clause

The standard form of Performance security acceptable to the Employer shall be an

unconditional Bank Guarantee of the type as presented in Section 8 of the Bidding Documents.

32. The Schedule of Operating and maintenance Manuals…..N/A. {CL. 58}

33. The date by which “as– built” drawings (in scale as directed) in 2 sets {CL. 58} are

required within 28 days of the issue of certificate of completion of the whole or section of the work,

as the case may be.

34. The amount to be withheld for failing to supply “as built” drawings {CL. 58} by the Date

required is Rs Lakhs.

35. The following events shall also be fundamentals breach of contract: {CL.59.2} “The

Contractor has contravened Sub- clause 7.1 and Clause 9 of GCC”

36. The percentage to apply the value of the work not completed representing {Cl 60} the

Employer’s additional cost for completing the Works shall be 20 per cent.

Conditions of Contract for O & M

KHEDA NAGARPALIKA TALUKA:

KHEDA, DISTRICT: KHEDA

Bid Documents for “OPERATION & MAINTENANCE OF 5.2 MLD SBR TYPE

SEWAGE TREATMENT PLANT AT KHEDAINCLUDING ALL MECHANICAL,

ELECTRICAL, INSTRUMENTATION EQUIPMENT’S AND CIVIL STRUCTURES AS PER

TENDERS CONDITION & SPECIFICATION FOR 01 YEARS (YEAR 2026 TO 2027)

ESTIMATED COST: RS. 72,00,000/-

KHEDA NAGARPALIKA

TALUKA: Kheda, DISTRICT: Kheda

CONDITIONS OF CONTRACT

FOR OPERATION AND MAINTENANCE

(ADMINISTRATIVE PROVISIONS)

The following additional clauses shall apply only during the Operation and Maintenance period.

1. DEFINITIONS AND INTERPRETATION

1.1. Definitions: In these Conditions of Contract (“Conditions”) the following words

and expressions shall have the meanings hereby assigned to them, except where the

context otherwise requires.

1.1.1. “Applicable Law” means all national (or State) legislation, statutes, ordinances and

other Laws and regulations and by laws of any legally constituted public authority.

1.1.2. “Contract” means the contract agreement, these conditions, the Employer’s

requirements, the Tender and the further documents (if any) which are listed in the

contract agreement.

1.1.3. “Contractor’s Equipment” shall mean all equipment, instruments, tools, machinery and

other appliances and things of the Contractor at the Site required for the fulfilment of

the obligations of the Contractor under these Conditions.

1.1.4. “Contractor’s Personnel” means the contractor’s representative and all personal whom

the contractor utilizes on site, who may include the staff, labour, & other employees of

the contractor and of each sub–contractor & any other personnel assisting the

Contractor in the execution of the work.

1.1.5. “Dispute” shall have the meaning given to it in Clause 15 of these Conditions.

1.1.6. “Employer’s Risk” shall include the risks mentioned as Employers risks in the General

Conditions and shall include any negligence or misconduct on the part of the

Employer and also any event of Force Majeure as provided in Clause 12 of these

1.1.7. “Employer’s Personnel” means the Employer’s Representative, the assistants and

all other staff, labour and other employees of the Employer and of the Employer’s

representative, and any other personnel notified to the contractor, by the Employer or

the Employer’s representative, as Employer’s personnel.

1.1.8. “Employer’s Requirements” means the document entitled Employer’s requirements,

as included in the contract, and any additions and modifications to such document in

accordance with the contract. Such document specifies the purpose, scope, and / or

design and / or other technical criteria, for the works.

1.1.9. “Facility” shall mean the entire system to be designed and constructed including

the equipment’s, buildings, structures, ramps, pits, pipes, fencing, lighting, testing

and analysis equipment, tools, computers, software programs, safety equipment, plant

machinery, supplies, instruments and inventory incorporated therein, as well as all

open areas within the Site, and including any additions, modifications, alterations,

replacement and repairs as may be made thereto from time to time.

1.1.10. “Force Majeure” shall mean those events mentioned in Clause 12 of these Conditions.

1.1.11. “General Conditions” shall mean the conditions of tender issued by Employer Kheda

Nagarpalika for O&M works of projects.

1.1.12. “Good Operating Practices” means the standards, practices, methods and procedures

as practiced internationally and in India conforming to all Applicable Law and that

degree of skill, diligence, prudence and foresight which would reasonably be expected

from a skilled and experienced contractor engaged in India in the same type of

undertaking under the same or similar circumstances as the Contractor pursuant to

these Conditions.

1.1.13. “O & M Contract” shall mean the contract or part of any other contract having

scope of Operation and Maintenance of facilities, entered in between the Employer and

the Contractor pursuant to these Conditions.

1.1.14. “O & M Completion Certificate” shall mean the certificate to be issued by the Employer

on the completion of all the obligations of the Contractor under these Conditions.

1.1.15. “O & M Services” shall mean those services specified in Schedule [1] which the

Contractor is obligated to perform under these Conditions.

1.1.16. “O & M Standard” shall mean the standards: As set forth in the tender documents

a) As required pursuant to Applicable Law;

b) Set out in the Performance Guarantee; and

c) For the functioning of the Facility as required in accordance with the Contract including

such requirements as may be mentioned in the Employer’s Requirements.

d) For the functioning of the Facilities set forth in these Conditions.

1.1.17. “O & M Manual” shall have the meaning for manual of Operation and Maintenance

prepared by the contractor.

1.1.18. “O & M Period” shall have the meaning set out in Clause.

1.1.19. “O & M Price” shall mean the amount of Operation & Maintenance as agreed upon

1.1.20. “Party” shall mean each of the Contractor and the Employer and Parties shall mean

both of them together.

1.1.21. “Performance Guarantees shall mean the guarantee that the Facility shall be

operated continually satisfying the minimum performance parameters set out in

1.1.22. “Successor Contractor” shall have the meaning given to it in Clause.

1.1.23. “Site” shall means that specific area specified in the bid documents & shall include any

other places as may be specifically designed by the Employer from the time to time as

forming part of the site.

1.1.24. “Taking over Date” shall mean the date of issue of the taking over certificate at the end

of the Operation and Maintenance period.

1.1.25. “Taking over Certificate” means the certificate to be issued by Kheda Nagarpalika

/ ULB to the Contractor at the successful completion of the Operation and Maintenance

1.1.26. “Termination” shall have the meaning given to it in Clause [13] of these Conditions.

1.2 Interpretation: In these conditions, except where the context requires otherwise.

1.2.1. words indicating one gender include all genders,

1.2.2. words indicating the singular also include the plural and words indicating the plural

also include the singular,

1.2.3. Provisions including the word „agree‟, „agreed‟ or „agreement‟ require the agreement

to be recorded in writing;

1.2.4. „written‟ or „in writing‟ means hand- written, type- written, printed or

electronically made, and resulting in a permanent record;

1.2.5. The marginal words and other headings shall not be taken into consideration in the

interpretation of these Conditions;

1.2.6. The words „include,‟ „includes‟ and „including‟ are not limiting;

1.2.7. As used in these Conditions, all defined terms include the plural as well as the singular;

1.2.8. Any agreement, document or drawing defined or referred to in these Conditions

shall include amendment, modification and supplement thereto and waiver thereof as

may become effective from time to time, except where otherwise indicated;

1.2.9. Any reference to any Clause or Sub – Clause shall unless specified otherwise mean a

Clause or Sub-Clause of these Conditions; and

1.2.10. Any rights of the Employer to make any inspections or to review any document shall not

create any obligation on the Employer to conduct such inspections or reviews to detect

any errors, inaccuracies, ambiguities or other potential problems. No inspection or

approval by or on behalf of the Employer shall operate as a waiver of any provision of

these Conditions, any obligation of Contractor under these Conditions, or any of the

rights of the Employer hereunder, except as expressly agreed in writing by the

1.3. Scope during Trial run and Defect Liability period:

1.3.1. The scope of work under this contract includes trial run and maintenance of the STP(s)

as a whole and its parts as an individual component as well. Under this the contractor

has to run the scheme completely and will have to prove performance of each

component individually and of whole scheme as per the standards laid down in

contract. During this period the contractor shall have to appoint necessary staff for

running and maintenance of scheme. The candidature of the staff being engaged by

contractor shall have to be approved by the Engineer-in-Charge. During this period

Engineer-in-Charge/Nagarpalika will appoint staff to check the performance of

project and also get hands on training to run and maintain

the scheme. Contractor and his staff will arrange training for the staff to the satisfaction of

Engineer In-charge. The period of trial run, testing and commissioning will be three

(03) calendar months from the date of actual completion of the scheme as certified by

the Engineer In-charge. Defect liability period will start from successful

commissioning of the Plant.

1.4. Commencement and Duration of O & M part of contract

1.4.1. “The O & M Period” shall commence from the date of issue of „Certificate of successful

commissioning‟ of the facilities including three calendar month trial run period or till

prescribed parameters are not attained & whichever is later of the two and shall

continue operation & maintenance of entire system for 4 years including three years

defect liability period there from.

1.5. Applicable Law

1.5.1. The Contractor shall comply with all Applicable Law relevant to the Contractor’s

Personnel, including Applicable Law relating to their employment, health, safety,

welfare, immigration and emigration, and shall allow them all their legal rights.

1.5.2. The Contractor shall require his employees to obey all Applicable Laws, including

those concerning safety at work.

1.5.3. In the event Employer becomes liable to any Employer’s Personnel, any Governmental

authority (including but not limited to any fines or penalties levied by or payable to

such authority) or to any other third party under the provisions of any Applicable Law

resulting from Contractor’s failure to comply with such Applicable Law, Contractor

shall reimburse Employer for all payments required to be made by Employer to such

Employers Personnel, Governmental authority or any other third party, plus the actual

expenses that Employer may incur in investigating, settling or defending any litigation

or threatened litigation.

1.6. Assignment

1.6.1. The Contractor will not be entitled to sub-contract any part of his obligation

under these Conditions to any third party .

1.7.1. Emergencies

In the event of an emergency endangering any life or property, the Contractor shall

immediately take such action as may be necessary to prevent, avoid or mitigate

injury, damage or loss and shall, as soon as possible, report any such incidents,

including his response thereto to the Employer.

1.7.2. Contractor Action

The Contractor shall utilize his personnel to take such action as may be necessary in

accordance with Good Operating Practices in the event of an emergency.

Notwithstanding anything to the contrary herein, the Contractor may incur any

expenditure or take any

other operating actions as the Contractor deems to be necessary (in accordance with Good

operating practices) in the case of emergencies affecting the Facilities or the

operation of the Facilities to counteract the effects where the Contractor considers

immediate action is required to safeguard lives or property. In case such emergency

was caused due to an Employer’s Risk then the Employer shall reimburse such

reasonable expenses that might have been incurred by the Contractor in relation

thereto acting in accordance with Good Industry Practices.

1.8. Notification

1.8.1. In the event of an emergency the Contractor shall forthwith notify the Employer of the

emergency, the expenditures made and the operating actions taken.

1.8.2. If the Employer considers that an emergency has arisen in relation to the Facilities, the

Employer may give written notice to the Contractor specifying the nature of the

emergency which it has identified and the manner in which it requests such

emergency to be rectified. The Contractor shall rectify such defect with all due

diligence. If such emergency is on account of an Employer‟s Risk then the Contractor

shall be reimbursed all costs and expenses reasonably incurred by the Contractor for

any actions taken by it pursuant to such direction or notice. If the Contractor fails to

comply with such direction or notice promptly, the Employer shall be entitled to

procure that it or any third party takes such actions as may be necessary to remedy

such breach by the Contractor. Any costs that may be incurred by the Employer in this

regard shall be reimbursed to him in full by the Contractor and shall be a debt due

to him from the Contractor.

1.9. Inspections

Notwithstanding any provisions of these Conditions and without prejudice to any of the

other rights vested by the Contractor under these Conditions, The Employer shall have

the right at all times to inspect the Facilities and the Contractor shall co-operate

in every manner with the representatives of the Employer inspecting the Facilities and

allow them access to every part of the Facilities and produce any records requested.

2. OPERATION OF THE FACILITIES

2.1. Operation of the Facilities

2.1.1. On Employer appointing the Contractor to perform and undertake the O & M Services

and all other obligations set out and in accordance with these Conditions during the

O&M Period. The Contractor shall accept the appointment and acknowledges a

duty to perform such obligations.

2.1.2. The Contractor shall be in complete charge of and have custody and control over and

responsibility for the Facilities, and the Contractor shall perform or cause to be

performed on behalf of the Employer all O & M Services for the Facilities and shall

supply or cause to be supplied all materials required there for in accordance with the

O & M Standard.

2.1.3. The Contractor shall also acknowledge that the Employer and the Employer’s

Personnel and other contractors may be carrying out work at the Facilities

and shall endeavour to fully co-operate and work in a manner so as not to cause

any obstruction or hindrance to them.

2.1.4. The Contractor shall remain an independent Contractor and not an agent,

employee and nothing in these Conditions or the O & M part of contract shall be

deemed to create a Joint Venture between the Employer and the Contractor.

2.2. Responsibility of the Contractor:- The Contractor shall be solely and exclusively

responsible for:

2.2.1. The contractor shall be responsible for smooth and satisfactory operation and

maintenance of the plant on round the clock basis for a period of 4 (Four) years from

the date of completion of trial run and commissioning of sewerage Treatment Plant.

2.2.2. Obtaining all necessary permits and consents required by Applicable Law or any

Governmental authority for the Contractor to carry out the O & M Services;

2.2.3. The procurement of all goods and services necessary to ensure compliance with

his obligations under these Conditions,

2.2.4. Making available suitably qualified and trained personnel to perform the O & M

2.2.5. Perform the O & M Services in accordance with the O & M Manuals prepared by the

Contractor and as approved by the Engineer in Charge and maintain the Facilities in

good repair and condition and ensure that the Facilities are well and suitably

maintained at all times in accordance with Good Operating Practices and in

accordance with these Conditions;

2.2.6. Procuring and administering all chemicals and other consumables, tools,

equipment, spare parts and other materials (which shall be of good quality and

unused) necessary for the operation and maintenance of the Facilities;

2.2.7. Maintaining a system of records to identify all inventories related to the Facilities and

preparing and providing to the Employer a complete accounting of such inventory for

every fiscal quarter;

2.2.8. Arranging for the testing and recalibration of all scales, meters, gauges and other

measuring devices at the Facilities on an annual basis and maintain the

Calibration certificates as records unless otherwise stated in the O & M part of

2.2.9. For providing any and all relevant information required by the Employer.

2.2.10. Contractor shall ensure that the treatment plant is run on continuous basis and

shut down if any subject to obtaining prior permission / approval of the Employer.

Generally major repair encountered in any unit shall be attended as quickly as

2.2.11. The contractor shall monitor the performance of the Sewerage treatment plant;

conduct the analysis of the influent as well as effluent quality after treatment.

2.2.12. Contractor shall initiate and take adequate actions to ensure smooth and

satisfactory performance/ running of the plants on a 24 hours/ round the clock basis.

2.2.13. For the smooth running of the plant all the required equipment, machineries,

accessories, major and minor spares, consumables including chemicals, greases,

lubricants, all cleaning agents, packing, rubber sheet, laboratory reagents, all

hardware, required quantity of white wash, oil paint color, all types of epoxy paint,

material required for housekeeping and cleaning etc. are to be brought by the

contractor. The quality of all consumable and spare etc. i.e. technical requirements as

per manufacture recommendation shall remain unchanged.

2.2.14. A technical expert of the contractor shall visit the plant on every fortnight and will

suggest if required, to improve the efficiency and working of the plant. The visit must

be recorded in document and outcome of the visit/minutes of meeting should be got

signed by Engineer In-charge of works without which the visit shall not be considered.

2.2.15. In case, there is no inflow to the plant after completion of construction for a period of

one month and/ or more, payment during first fifteen days of O & M stage will be made

without any deduction. Payment for next fifteen days of the first month shall be

made at rate of 50% of O & M price quoted by him. Contractor shall also be paid for

days of the second month at rate of 50% of O & M price quoted by him. Thereafter,

payment towards security watchmen and minimum power requirement will only be

made (i.e. after 45 days of completion of construction). ULB shall intimate Contractor

by written notice in such event during initial fifteen days of O & M period.

3. DUTY OF CARE BY THE OPERATOR AND PERFORMANCE STANDARDS

3.1. Duty of Care

3.1.1. The Contractor shall manage, operate and maintain the Facilities in accordance

with Good Operating Practices and in accordance with the O & M Standard so

that the Facilities are capable of meeting the outputs and specifications set out in the

3.1.2. The Contractor shall take full responsibility for the care of the Facility from the

date of start of O&M period, till the end of the O & M Period.

3.1.3. If any loss or damage happens to the Facility, during the O & M Period due to any

breach by the Contractor of any of his obligations under these Conditions including any

wilful misconduct, negligence and non-conformity with Good Operating Practices

then the Contractor shall, at his own cost, rectify such loss or damage so that the

Facility conforms in every respect with the provisions of these Conditions.

3.1.4. The Employer shall be liable only in case of any damage caused due to any Employer‟s

4. OBLIGATIONS AND RESPONSIBILITIES OF THE EMPLOYER

The Employer shall employ the Contractor to provide the O & M Services and shall:

4.1.1. following the issue of Certificate of Successful commissioning and trial run, handover

the custody of the Facilities to the Contractor for its intended use during the O &

4.1.2. Pay the Contractor all sums required to be paid in accordance with the terms of

these Conditions. Notwithstanding anything else herein contained the Employer may

set off any sums owed by the Contractor under the Contract for money owed to

the Contractor by the Employer under these Conditions or as a debt due from the

5. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR

The Contractor hereby represents for the benefit of the Employer as follows:

5.1. Performance of O & M Services

5.1.1. that the Contractor has the required skills and capability to perform, and shall

diligently perform, the O & M Services in a high quality, timely and professional

manner utilizing sound engineering principles and project management

procedures in accordance with Good Industry Practices;

5.1.2. that the Contractor shall perform his obligations hereunder in accordance with the

requirements of these Conditions and shall meet the Performance Guarantee; and

5.1.3. That it shall not use any spare parts or material that are not new and which shall

be of a quality that is in accordance with Good Industry Practices.

5.2. Knowledge of Adverse Information

5.2.1. As of the Commencement Date, Contractor is not aware of any facts, conditions or

events which would affect the ability of Contractor to provide the O & M Services

in accordance with these Conditions.

5.2.2. Contractor has familiarized himself with the nature and extent of the O & M

Services required to be provided under these Conditions and with all other

requirements under Applicable Law

5.3. Organization, Standing and Qualification

Contractor is validly existing and in good standing under Applicable Law and has

all necessary power and authority to carry on its business as presently conducted

and to perform its obligations under these Conditions. Contractor is, or will be prior to

the date on which the O & M Services are to be commenced duly qualified or licensed

to provide these services.

5.4. Due Authorization

5.4.1. Each of the execution, delivery and performance by the Contractor of all contracts

entered into pursuant to these Conditions shall be duly authorized by all necessary

action on the part of Contractor.

5.4.2. Neither the execution and delivery by Contractor of the O&M Contract, nor the

consummation by Contractor of any of the transactions contemplated hereby, requires

the consent or approval of, the giving of notice to, the registration with, the recording

or filing of any document with, or the taking of any other action in respect of, any

Governmental authority or agency, except:

a) Such as have been duly obtained, given, registered, recorded, filed or taken and are in

full force and effect or are not yet required; and

b) Filings and recordings expressly required pursuant to the O & M part of contract.

Contractor holds, or will obtain, any and all licenses, permits and approvals on a timely

basis. Contractor has no reason to believe that any of those not yet required will not be

readily obtainable or done in the ordinary course of business upon due application

5.5. Litigation

In the aggregate, there are no pending or, to the knowledge of Contractor, threatened

actions, investigations or proceedings before any court, Governmental authority or

arbitrator, which would have material adverse effect on the ability of Contractor to

perform its obligations under these Conditions

6.1. General Conditions

6.1.1. Without limiting the Contractor’s obligations, responsibilities and liabilities under

these Conditions, the Contractor shall be required to provide and maintain in full force

and effect, at his expense the insurance coverage’s specified in Schedule [3]

throughout for the O&M Period. Any deductibles on the insurance shall be to the

account of the Contractor.

6.1.2. Maintenance of insurance shall not relieve the obligation of the Contractor to remedy

or repair any damage to the Facility in case such damage is caused due to the fraud,

negligence, wilful misconduct or breach of any obligations of the Contractor under

these Conditions (including failure to perform the O & M Services in accordance

with Good Operating Practices) at the Contractors cost promptly and regardless of the

extent of settlement of claims by the underwriters or the time taken for settlement of

claims. Any amounts not insured or not recovered from the insurers shall be borne

by the Contractor to the extent any such liability or damage is caused due any breach

of any obligations of these Conditions (including failure of the Contractor to perform

the O & M Services in accordance with the Good Operating Practices) by the

Contractor or any wilful misconduct, negligence on the part of the Contractor.

6.1.3. The terms of the Insurance shall be approved by the Employer.

6.1.4. The Contractor within the 14 days from work order shall submit to the Employer

evidence that the insurances required under Schedule [3] of these Conditions has been

obtained as approved by the Employer.

6.1.5. The Contractor shall not make any alteration to the terms of any insurance without the

prior approval of the Employer. If the Contractor fails to effect and keep in force

any of the insurance it is required to effect and maintain under these Conditions, or

fails to provide satisfactory evidence and copies of policies in accordance with this

Sub Clause, the Employer may effect insurance for the relevant coverage and pay

the premiums due and may claim the same from the Contractor. The insurances:

a) shall be in the name of the Employer and the Employer shall be the sole loss payee,

b) shall be extended to cover liability for all loss and damage to the Employer‟s property

arising out of the Contractor‟s performance of his obligations or failure to do so under

these Conditions and any fraud, gross negligence or wilful misconduct on his part, and.

6.1.6. If the Contractor fails to effect and keep in force insurance which is required to be

maintained under these Conditions, and the Employer neither approves the omission

nor effects insurance for the coverage relevant to this default, any moneys which

would have been recoverable pursuant to such insurance shall be paid by the

6.1.7. The insurance shall cover all the electrical items, mechanical items,

Instrumentation & automation items, all civil works, Storage structures etc. The

insurance for the work of transmission main is optional. Since the responsibility of

safety of all work lies with contractor, contractor may prefer to take the insurance

of optional item also if deemed fit.

7. INDEMNIFICATION

7.1. Loss or Damage to Facilities

The Contractor shall at its own expense make good any physical loss or

damage to the Facilities occasioned by it in the course of the performance of its

obligations under these Conditions if and to the extent such loss or damage is caused

by the negligence, wilful default or breach of statutory duty or failure to follow Good

Industry Practices by the Contractor

7.2. Other Loss or Damage

7.2.1. Except as otherwise stated in this Clause 7.2 or covered by Clause 7.3, the Contractor

shall indemnify, defend and hold harmless the Employer against any and all liabilities,

losses, damages and claims of whatever kind and nature, including all related costs

and expenses incurred in connection therewith, in respect of personal injury to or

death of third parties or any employee of the Employer or the in respect of loss of or

damage to any third party property or property belonging to employee of the

a) any breach by the Contractor of its obligations hereunder and

b) any negligence, wilful default or breach of statutory duty on the part of Contractor

7.2.2. Except as otherwise stated in this Clause 7.2 or covered by Clause 7.3, the Employer

shall indemnify, defend and hold harmless the Contractor for all claims and losses

of whatever kind and nature, including all related costs and expenses incurred in

connection therewith, in respect of personal injury to or death of third parties or

of any person employed by the Contractor in respect of loss of or damage to any

third party property or property belonging to any person employed by the

Contractor to the extent that the same arises out of any Employer‟s Risk

7.3. Accidents or Injury to Workmen

7.3.1. The Contractor shall indemnify, defend and hold harmless the Employer or any

Employer‟s Personnel against any and all claims for loss, damage and expense of

whatever kind and nature (including all related costs and expenses) in respect of

the death of or injury to any person employed by the Contractor in connection with

the performance of the O&M Services and obligations hereunder except to the

extent that such death or injury is caused by an Employer‟s Risk.

7.3.2. Neither Party shall be liable to the other Party for loss of use of the Facilities, loss of profit,

loss of any contract or for any indirect or consequential loss or damage which may be

suffered by the other Party in connection with the Contract, other than under Sub-Clause[13]

and this Clause [7].

7.3.3. The total liability of the Contractor to the Employer, under or in connection with these

Conditions other than as provided in Clause 7.3.2 & 14 shall not exceed the sum of

the O & M Price and the Delay Damages payable under the these Conditions.

7.3.4. This Sub-Clause shall not limit liability of the Contractor in case of fraud wilful default,

gross negligence and liabilities arising due to breach of Applicable Law and the

liability under any other Clause of these Conditions that might impose a greater

liability on the Contractor

8.1. General Provisions

8.1.1. The Employer may check the operation of the Facilities or designate an

organization of his choice to carry out inspections regularly. The Employer or the

organization appointed by him shall check that the Contractor is performing the tasks

for which he is responsible with due diligence. The Contractor shall at his cost provide

all the assistance the Employer requires to complete these inspections

8.1.2. Before any inspection, the Employer shall give prior notice to the Contractor,

indicating the name(s) of the person(s) empowered to carry out such inspection in

the name of the Employer

8.2. Measurement and Analysis

8.2.1. The Employer has the right to perform any analysis or inspection he deems necessary.

Before any inspection, the Employer shall give a prior written notice to the Contractor.

8.2.2. The sewage quantity, for any such test, analysis or inspection shall be measured by

flow- meters installed at the Facility, which are acceptable to the Employer, provided

they are maintained and calibrated as per requirements of this contract.

8.2.3. Other parameters like Pressure temperature and speed shall be measured by certified

calibrated meters provided by the contractor and, which are acceptable to the

8.2.4. The flow meters shall be inspected and certified upon their availability by the

Employer and the Contractor. Thereafter, the said meters shall be tested and their

accuracy verified once in every six (6) months by the Contractor. After each

inspection, the flow-meters shall both be sealed in the presence of representatives of

the Employer and the Contractor in a manner that is adequate to prevent the

tampering of said meters by any person.

8.2.5. The Contractor shall be responsible for the security and protection of flow-meters at

the designated point. If there is any malfunctioning of the meters, it should be

repaired at the Contractor’s cost, as per manufacturer’s technical recommendations.

8.3. Plant Complex Visits

8.3.1. At the end of each month, or at the initiative of the Employer, a visit shall be organized

so that both parties can check the condition of the installations at the facilities.

8.3.2. A report shall be drawn up to record the opinions of both Parties. The Employer

reserves the right to call in equipment manufacturers or specialized technicians for

8.3.3. These visits shall provide an opportunity for examining maintenance programs

and operating procedures and improvements requiring additional investments.

8.3.4. Any test, visit, analysis or inspection and any approval thereof shall not in any way

alter/modify or dilute the responsibility of the Contractor to fulfil his obligations

under these Conditions.

9. RECORDS AND REPORTS

9.1. Operating Records and Data- The Contractor shall:

9.1.1. Prepare and maintain, on a current basis and in accordance with generally accepted

Indian accounting principles, proper, accurate and complete books and records and

accounts of all transactions related to the Facilities including a log book at the site

which shall contain inter alia the following details

a) Reading from the different meters, indicators and recorders (including but not limited

to consumption of energy, volume of water conveyed, operating times of the different

items of equipment etc which may be updated on a daily basis); and

b) Report of visits by persons other than those of the Employer and the Contractor to the

9.1.2. Establish and maintain a weekly and monthly reporting system to provide storage and

ready retrieval of operating data relating to the Facilities, including such information

necessary to verify calculations made pursuant to these Conditions or the O & M part

of contract and provide the same to the Employer on a monthly basis

9.1.3. Provide to the Employer or such persons notified by it access to the Facilities and

to data in relation to the Facilities, at all times.

9.1.4. At the Employer’s request, at the end of every month, make a copy of the system

performance data for that month as recorded by the instrument and control system

9.1.5. / DVDs and printed document there from and deliver the same to the Employer

9.1.6. Provide support to the Employer to meet the data requirements of all competent

authorities and under Applicable Law

9.2.1. The Contractor shall submit the reports mentioned in Schedule [2] at times indicated

in the said Schedule.

9.2.2. The Contractor shall also provide the Employer with such reports as are required

by the Employer and shall comply with all reporting requirements prescribed under these

Conditions and the O & M part of contract. In addition the Contractor shall submit

the following information to the Employer.

9.2.3. Upon obtaining knowledge thereof, shall submit prompt written notice of:

a) Any litigation or material claims, disputes or actions, threatened or filed, concerning the

Facilities or the services to be performed hereunder;

b) Any refusal or threatened refusal to grant, renew or extend or any action pending or

threatened that might affect the granting, renewal or extension of any clearance,

permit or license;

c) Notwithstanding the aforementioned materiality, all penalties or notices of violation

issued by any authority under Applicable Law;

9.2.4. The Contractor shall promptly submit to the Employer any material information

concerning new or significant aspects of the operations of the Facilities, any

material complaint about the Facilities from any person or entity with a bonafide

complaint who complains directly to the Contractor and, upon Employer‟s request,

shall promptly submit any other information concerning the Facilities or the services

performed by the Contractor.

9.2.5. The Employer may from time to time specify any changes to be made to any of the

format of any report or plan required hereunder.

9.2.6. If the Contractor is required by any Applicable Law to produce any projection, report

or any other document relating to the provision of the O & M Services of the

Facilities or the Employer requests a report regarding other information relating to the

Facilities, the Contractor shall prepare a draft of such document at the request of the

Employer, as soon as practicable and in any event within any time limit prescribed by

Applicable Law.

9.2.7. If the Contractor is required by any Applicable Law to produce any projection, report

or any other document, it shall prepare such report diligently and submit the same to

the Employer as soon as possible thereafter. Wherever practicable, such reports shall

be submitted to the Employer for review seven days before the same is issued. The

Contractor shall take into account any comments or revisions proposed by the

Employer thereon.

9.3. Procurement

9.3.1. The Contractor is responsible for the procurement of all goods and services necessary

to ensure compliance with its obligations under these Conditions.

9.3.2. The Contractor shall procure and keep in readiness spare parts required for

urgent repairs, materials, supplies and other consumable items, and maintains an

adequate inventory thereof Facilities.

9.3.3. The Contractor shall submit a report for every fiscal quarter to the Employer reflecting

the status of the inventory for spare parts, materials and other consumable items.

9.3.4. The Contractor shall procure the Chlorine Gas Tonners. Necessary arrangement for

procurement of Chlorine Gas in tonners / cylinders shall be made by the contractor. No

extra charges shall be paid for hiring / Purchasing the tonners / Cylinders. The

contractor shall ensure adequate storage of these materials, so that operations of

the facilities do not affect for want of these materials.

10.1.1. The Contractor‟s request(s) for payment shall be made to Employer in writing,

accompanied by invoice(s) along with presence sheet of personnel of particular month

duly certified by our Engineer on site, claims etc. as appreciate.

10.1.2. Payment shall be made by Employer as per prevailing procedure subsequent to

the submission of such invoice(s) / claim(s) by the Contractor.

10.1.3. Employer will deduct from the amount payable to the contractor any amount paid by

Employer on behalf of the contractor of Gujarat Electricity board (GEB) electricity

charges including penalty for non conformance of desired Power factor or any other

dues and liquidated damages as per clause and, as per tender terms and condition, Any

telephone bills charged by telephone department towards contractor’s usage, the

payment of telephone bill will be made by contractor

10.1.4. Contractor will provide Security Guards services for all assets in plant STP

premises for 24 hours of a day and 365 days of the year for the whole contractor

11. Additional Conditions:

a) The analysis for the Plant Performance Evaluation for Commissioning Certificate,

Defect Liability Phase and Operation & Maintenance, should be carried out at the

Third Party Reputed Laboratory as per the Engg-In- Charge Approval. Note-

i) The above stated analysis requirement are in addition to the routine analysis for

commissioning or regular course of operation as per the tender document and can be

done at plant scale.

ii) The Charges for the Third Party Laboratory Testing to be borne by Kheda

Nagarpalika /Client (Respective Nagarpalika/Authority).

iii) The frequency of Sampling for

 Completion/ Commissioning – Three (3) Composite Samples for a day, for

Three(3) Consecutive Days (72 Hours)

 Operation & Maintenance - Four (4) Nos. of Composite Sample for a day (Weekly

b) The statutory Charges from Gujarat Pollution Control Board (GPCB) or Central

Pollution Control Board (CPCB) or any other Authority for any Compliance should be

paid by the Contractor on behalf of Client and would be reimbursed by client at actual.

c) Any Penalty imposed by GPCB/CPCB/ or any other Authority for Non-

compliance of Effluent Quality Standard shall be recovered from Contractor at two

times of the Penalty.

12. FORCE MAJEURE

In this Clause, „Force Majeure‟ shall mean an event or circumstance, which materially and

adversely affects the ability of the affected Party to perform its obligations.

a) which is beyond a Party‟s control,

b) which such Party could not reasonably have provided against before entering into the

O & M part of Contract;

c) which, having arisen, such Party could not reasonably have avoided or overcome, and

d) which is not attributable to the other Party

Force Majeure may include, but is not limited to, exceptional events or circumstances

of the kind listed below, so long as conditions (a) to (d) above are satisfied:

a) war, hostilities (whether war be declared or not), invasion, act of foreign enemies)

b) rebellion, terrorism, revolution, insurrection, military or usurped power, or civil war,

c) riot, commotion, disorder, strike or lockout by persons other than the

Contractor‟s Personnel and other employees of the Contractor;

d) As result of war, explosive materials, harmful radiation or contamination by

radio- activity, except as may be attributable to the Contractor‟s use of such

munitions, explosives, radiation or radio- activity, and

e) Natural catastrophes such as earthquake, hurricane, typhoon or volcanic activity.

Heavy rainfall, cyclone, strike and lockout.

12.1. Notice of Force Majeure

12.1.1. If a Party is or will be prevented from performing any of its obligations under

these Conditions by Force Majeure, then it shall give notice to the other Party of the

event or circumstances constituting Force Majeure and shall specify the obligations,

the performance of which is or will be prevented. The notice shall be given within

7 days after the Party became aware, or should have become aware, of the relevant

event or circumstance constituting Force Majeure.

12.1.2. The Party shall, having given notice, be excused performance of such obligations

for so long as such Force Majeure prevents it from performing them.

12.1.3. Notwithstanding any other provision of this Clause, Force Majeure shall not apply

to obligations of either Party to make payments to the other Party under the

12.2. Duty to Minimize Delay

12.2.1. Each Party shall at all times use all reasonable endeavors to minimize any delay

in the performance of the Contract as a result of Force Majeure.

12.2.2. A Party shall give notice to the other Party when it ceases to be affected by the

12.2.3. Notwithstanding anything else herein contained the Employer may terminate the O

& M part of contract if the Force Majeure event continues for more than a period of

13. TERMINATION:

Termination shall mean the termination of the O&M part of Contract by the Employer or

the Contractor in accordance with Clause 13.1 or 13.2 respectively.

13.1. Termination by Employer

The Employer may terminate the O & M part of Contract by notice on:

a) the dissolution or insolvency of the Contractor, pursuant to an order of a court

or the bankruptcy of the Contractor; or;

b) if 45 days having passed since the Contractor is in material breach of his

obligations under these Conditions, or

c) if the Contractor ceases to carry on its business; or

d) abandonment;

e) the subsisting Force Majeure event as provided in Clause 12.2.3 above.

13.2. Payments upon Termination

13.2.1. Upon termination or as soon as practicable thereafter an account shall be taken of the

net amount owing from the Employer to the Contractor or from the Contractor to the

Employer (as the case may be). The Employer shall forthwith pay to the Contractor (if

the balance is due to the Contractor) all moneys due to the Contractor. If the account

shows a balance due to the Employer from the Contractor, the Contractor shall

forthwith pay any such balance to the Employer;

13.2.2. As part of the calculation made pursuant to clause 13.1 of the amounts due to the

Contractor on Termination, the following amount shall be taken into account.

a) The portion of the O & M Price outstanding and payable by the Employer for the

period prior to the Termination;

b) Any Delay Damages or indemnities for which the Contractor would be liable

under these Conditions upto the date of Termination;

c) Any other amounts due to the Employer under these Conditions by the

Employer including return of any amount of the O & M Price paid in advance by the

Employer to the Contractor under Clause [10].

13.3. In case of a Termination by the Employer in accordance with Clause 13.1 the Employer

may recover other than the amounts due to him under Clause 13.2.2 any costs

incurred by him in finding any replacement contractor

13.4. Successor to the Contractor Upon Termination:

13.4.1. The Contractor shall use all endeavors to facilitate the appointment and

commencement of duties of any person to be appointed by the Employer to operate

and maintain the facilities (the “Successor Contractor”) so as not to disrupt the

normal Operation & Maintenance of the Facilities and shall provide full access to

the Facilities and to all relevant information, data and records relating thereto by the

Successor Contractor and its representatives and accede to all reasonable requests

made by such persons in connection with preparing for taking over the Operation &

Maintenance of the Facilities;

13.4.2. Promptly after Termination, the Contractor, shall deliver to (and shall, with effect from

Termination, hold on trust for and to the order of) the Employer or (if so required

by the Employer by written notice) to the Successor Contractor all property in its

possession or under its control owned by the Employer or leased or licensed to the

13.4.3. The Contractor shall transfer to the Successor Contractor, as from the date of

Termination, its rights as the Contractor under all contracts entered into by it in the

performance of its obligations under these Conditions or relating to the Operation &

Maintenance of its obligations under these Conditions or relating to the Operation &

Maintenance of the Facilities. Pending such transfer, the Contractor shall hold its rights

and interests there under for the account and to the order of the Successor

13.4.4. The Employer shall be reimbursed any cost and expenses incurred by the

Employer due to default of the Contractor in discharging its obligations under this

13.4.5. The Contractor shall, upon Termination of the O & M part of Contract, co-operate with

the Employer and the Successor Contractor and comply with all reasonable requests

thereof, including the execution of documents etc.

13.4.6. Upon Termination of the O & M part of Contract on expiry of the terms of the O &

M part of Contract, the Parties agree that:-

13.4.7. The Contractor will use reasonable efforts to ensure a transition to the next Contractor

that will avoid operating difficulties for the Facilities.

13.4.8. For a six (6) month period after Termination or six (6) months prior to the expiration

of the O&M part of Contract, the Contractor shall, at his expense, provide sufficient

assistance to the Employer in the hiring and training of replacement personnel for

those Facilities.

13.5. Notwithstanding anything else herein contained the Employer shall be entitled to

terminate the O & M part of Contract, at any time at the Employer‟s convenience, by

giving notice of such termination to the Contractor. The termination shall take effect

28 days after issuance of the notice of termination.

13.5.1. On the expiry of the O & M part of Contract or Termination of the O & M part of

Contract, all the installations, works and equipment placed under the Contractor‟s

responsibility shall be handed over to the Employer, at no cost, in good working order,

except for normal wear and tear. The Employer may perform any inspections, tests or

expert appraisals he shall consider necessary with a view to checking that the property

is in good working order. The Contractor shall also hand over any unutilized spares,

consumables etc. purchased for the Facilities.

13.5.2. At the end of O & M Period, the Contractor shall be entitled to receive an O & M

Completion Certificate within thirty (30) days

13.5.3. The delivery of such O & M Completion Certificate will relieve the Contractor from his

responsibility as regard to the operation & maintenance of the Facilities and confirm

that the Contractor has fulfilled all of his obligations under these Conditions.

14. CONFIDENTIALITY AND INTELLECTUAL PROPERTY RIGHTS

14.1. Confidential Information - Subject to Clause [14.2], the Contractor shall at all times

during the O & M Period and for a period of two years after that:

14.1.1. use all efforts to keep all information regarding the terms and conditions

and any data or information acquired under or pursuant to these Conditions confidential

and accordingly shall not disclose the same to any other person; and

14.1.2. not use any document or other information (whether technical or commercial)

obtained by them it by virtue of these Conditions or the Contract concerning the

Employer‟s undertaking for any purpose other than performance of the its obligations

under these Conditions;

14.1.3. Provided that the provisions of this Clause 14.1 shall not apply to information, which

at the time of disclosure was in the public domain other than by breach at the

14.2. Disclosure of Confidential Information - The Contractor shall not be entitled to

disclose the terms and conditions of these Conditions and any data or information

acquired by it under or pursuant to these Conditions without the prior written

consent of the Employer unless such disclosure is made in good faith:

14.2.1. to any outside consultants engaged by or on behalf of the Contractor and acting in that

capacity, having made them aware of the requirements of this Clause [14].

14.2.2. to the lenders, any security trustee, any bank or other financial institution and its

advisers from which the Contractor is seeking or obtaining finance, having made them

aware of the requirements of this Clause [14].

14.2.3. to the extent required by Applicable Law;

14.2.4. to any insurer under a policy of insurance; or

14.2.5. to the Contractor‟s Personnel having made them aware of the requirements of this

14.3. Information - The Contractor shall:

14.3.1. make available to the Employer without charge such materials, documents and

data of any nature (except any materials documents and data protected by legal

privilege or which is subject to any duty of confidentiality to any third party) acquired

or brought into existence in any manner whatsoever by it as the Employer may request

for the purposes of exercising its rights or carrying out its duties in respect of the

Facilities or exercising its rights under or performing its obligations under these

14.3.2. make available to the Employer other such materials and documents and data

acquired or brought into existence by third parties as the Employer may request for

the purposes referred to in sub-paragraph (i) above

14.4. Third Party Intellectual Property - The Contractor shall:

14.4.1. procure that any intellectual property owned or developed by third parties and

utilized by the Contractor in connection with the performance of its obligations under

these Conditions is licensed to the Contractor for the purposes of the Operation &

Maintenance or repair of the Facilities and otherwise for the purposes of the Facility;

14.4.2. Ensure that the Contractor shall have the right to sub- license that intellectual

property to the Employer and any Successor Contractor for use in connection with the

operation, maintenance and repair of the Facilities. These licenses should survive

termination under these Conditions. The Contractor shall grant all such sub-

licenses. If any fee is payable to the licensor in consideration of any such sub-

license, the Contractor shall pay such amount during the O & M Period and each such

license shall be irrevocable

14.4.3. Indemnify and hold harmless the Employer against any action, claims, damages, losses

caused to the Employer by the owner of the Intellectual Property due to the allegedly

unauthorized or improper use of this intellectual property by the Contractor for

the fulfilment of his obligations under these Conditions.

14.5. Successor Contractor

If the licenses and sub-licenses of intellectual property granted under this Clause

respectively shall survive termination of the O & M part of contract in accordance with

the terms of this Clause, the Employer shall be permitted to grant sub-licenses of

intellectual property licensed to it there under to any Successor Contractor of the

Facilities for use only in connection with the operation, maintenance and repair of the