Conditions of Contract

Definitions CONTRACT1)Documents forming the tender and acceptance thereof2)Formal agreement executed between parties.3) Documents referred to therein agreement.4)Specifications, designs, drawings and instructions issued from time to time by the E-in-C.

Conditions of ContractWORK1)Work to be executed as per contract.2)Includes temporary, permanent, original, altered, substituted or additional.CONTRACTOR1)Individual2)Firm or company whether incorporated or not.3)Includes legal personal representatives4)Successors5)Permitted assignees

Conditions of ContractENGINEER IN CHARGE1)Engineer officer who shall supervise and be in charge of work.2)Who shall sign the contract.Excepted RisksRisks due to•Riots, war, invasion, act of foreign enemies, hostilities, civil war, rebellion revolution, insurrection, military or usurped power, Acts of Government, damages from aircraft, acts of God.•Other causes over which contractor has no control

Conditions of Contract

Market RateRate as decided by E-in-C in the basis of cost of materials and the labour at the site + overhead and profits.

Schedule•The relevant schedule/ SR mentioned in contract.•Upto date amendments issued upto date of Receipt of Tender.

Signing of the Contract

1.Contract to be signed with in 15 days.2.NIT, all drawings, standard CPWD form.3.No payment unless contract is signed by the

contractor.

Clauses Related to PaymentClause (1)Performance Guarantee1.Irrevocable P.G. @ 5% within specified period from date of issue of letter of acceptance (LoA).2.May be extended as per schedule ‘F’ by E-in-C at the request of contractor. 3.Cash (<10,000), Deposited at call receipt, Banker’s cheque DD, pay order (<1,00,000), FDR, Govt. Securities, Guarantee Bond of Scheduled Bank.4.Valid upto completion Date +60 days.5.Extend validity of P.G. in case of Extensions.6.50% of PG to be retained as so far maintenance work. To be released proportionately.7.Contract determined or rescinded PG is forfeited.

Clauses Related to Payment

Clause 1(A)SECURITY DEPOSIT1.@2.5% of the Gross amount of each running/ final bill till the amount deducted becomes 2.5% of the tendered value.2.Cash/ Govt. Securities/ FDR3.May be released against Bank Guarantee minimum of Rs. 5 lacs (except last BG)4.B.G. to be extended.

Clause – 6• Measurement of work done

1. The value of work due to be determined by measurements entered in MBs/ level books..

2. All measurements to be recorded jointly & signed with date.3. If contractor is not present despite of advance notice (3 days) or fails to

counter sign or to record objection with in a week. Measurements deemed to be accepted by contractor.

4. Contractor to provide labour + all assistance for measurements.5. Procedure for measurement as per specification/ BIS standard/ mutually

agreed method in that order.6. Contractor to give 7 days notice before covering of the work.7. E-in-C may cause to check the measurements recorded jointly.8. Recording of measurements in MBs are not conclusive evidence as to

sufficiency of work nor shall it relieve the contractor from its liabilities.

Clause – 6A• Computerized MB• Contractor to record measurement in CMB having A-4 sized

pages.• Measurements are to be got checked from E-in-C as per

prefixed program.• E-in-C to make correction and return it to the contractor.

Resubmission by contractor after correction. Measurements then to be signed jointly.

• E-in-C to test check measurements and record necessary certificates.

• Final measurements should be 100% correct, no further cutting or overwriting.

• If any error, the contractor has to submit a fresh computerized MB.

• MB shall be taken in record of division and allotted a number. Two spares copies of MBs also to be submitted.

Clause 6A continued

8. Contractor to submit computerized abstract of cost and the bill.

9. Bill will be processed in the division and allotted a number.10. Measurements to be recorded as per specifications/ BIS

orders/ mutually agreed method.11. Contractor to give 7 days notice to cover the work.12. E-in-C to cause checking of measurements.13. Recording of measurements in MB is not conclusive evidence

as to sufficiency of work/ material. It does not relieve the contractor from its liabilities till completion of defect liability period

Clause – 7, Running Bills 1. No running bills for work upto Rs. 20,000/.2. Running bills to be submitted by contractor in the format of

department in the triplicate on the fixed date.3. In case of failure by the contractor, the Department will prepare

and no claim by the contractor due to delay and claim for interest.4. Amount admissible is to be paid by 10th working days. Out side

work it is 15 days.5. Delay in payment of running bills after 45 days (Bills are in order)

simple interest @7.5% per annum shall be paid after expiry of prescribed time limit. Interest to be compounded on annual basis.

6. Interim bills are not conclusive evidence work wrt sufficiency/ quality of work. All such interim payments shall be regarded as payments by way of advances against final payment.

7. Pending EOT, interim payment shall continue to be made.

Clause -7 Advance payment, Pending Measurements

• E-in-C in his sole discretion on the form of certificate from the AE make interim advance payment without detailed measurements (Except foundation and finishing lines) @ 75% of assured value.

• The advance payment to be adjusted in subsequent bill by taking detailed measurements.

Clause 7 ,Payment in Composite Contracts

1. Running payment of the major component shall be made by EE of major discipline to the main contractor.

2. Running payment for minor component shall be made by the E-in-C of the discipline of minor component to main contractor.

3. EE of minor component may make payment to the contractor associated with minor component

1) Main contractor fails to make payment.2) Complaint by other contractor of minor discipline.3) No reply/ non satisfactory reply of the main

contractor.

Clause -8 (Completion certificate & Plans

• Contractor shall give notice of completion with in 10 days.

• E-in-C to inspect work with in 30 days.• If there is no defect, record final completion certificate

indicating defects (a) to be rectified by contractor/ (b) payment to be made at reduced ratios.

• No completion to be recorded until contractor clears the site & E-in-C records the measurements.

• In case of failure by contractor the E-in-C will cause the site cleaned at cost of the contractor and cause disposal as fit. Contractor will be entitled only for proceeds of sale.

Clause – 8A.Contractor to keep site clean1. In annual repairs and maintenance work splashes & droppings

shall be removed and surface cleaned simultaneously with the completion of terms in rooms/ quarters/ premises.

2. E-in-C has the right to get the work done at the cost of the contractor.

Clause 8BCompletion plan to be submitted by contractor1. Contractor to submit completion plan as per General

specifications for Electrical work (Part-I internal) 2005 and (Part-II external) 1994 with in 30 days.

2. Contractor is liable to pay 2.5% of the work upto Rs. 15,000/- as fixed by SE.

3. Contractor shall submit completion plan for water, sewerage and drainage lines with in 30 days.

4. Incase the contractor fails, the dependent get it done at cost of contractor and actual expenses + Rs. 15,000/- recovered from contractor.

Clause – 9. Payment of Final Bill

1. Final bill to be submitted with in 3 months of physical completion/ one month of record of completion certificate, whichever is earlier.

2. No further claims. Claims waived & extinguished.3. Schedule of payment of undisputed items –- Tendered value upto Rs. 45 laces - 2 months- More than 45 lacs & upto 2.5 crores - 3 months- Tendered value exceeds 2.5 crores - 6 months4. In case of delay simple interest @ 7.5% compounded

on annual basis after expiry of prescribed period if bill was in order

Clause – 9A

Payment of contract or bills to Banks• Payment to bank, registered financial,

cooperative or thrift societies or recognized financial institutes.

- on proper authorization in legally valid form.- His own acceptance to correctness of the

amount/ signature in bill form.- Receipt given by bank constitute a full &

sufficient discharge for payment.

Clause -10A, Materials to be provided by Contractor.

• The contractor to provide material at his own expenses.

• The contractor shall get approved samples in advance at his expenses.

• E-in –c to intimate in writing within 30days regarding approvals. Tests to be conducted.

• Materials are to be used on work after testing and approval of E in c.

• No claim or compensation for delay due to corrective measures to be taken on testing.

Clause 10-A continued

• Contractor to bear expenses for collection, preparation, cost of testing.

• E-in-C/Representative will have right to access works, workshops from where material and machinery is procured.

• E in C will cause removal of defective items from the site at contractor’s expenses.

• The contractor shall provide field testing lab.

Clause – 10B, Secured Advance on Non Perishable materials

.• Contractor to sign indenture form.• Upto 90% of the assessed value of material.• Non perishable, non- fragile, non – combustible

materials.• In accordance with contract.• Brought to the site• Adequate by stored and/ or protected.• Not incorporated in the works.• On incorporation, the amount shall be

recovered from the next payment.

Clause – 10B, Perishable Materials

• Contractor provides comprehensive insurance cover for the full cost of such materials.

• Decision of E-in-C is final & binding.• No advance on high risk materials such as

ordinary glass, sand, petrol and diesel.

Clause – 10B, Mobilization Advance- Not exceeding 10% of contract value.- On request by the contractor- With in one month of order to commence the

work. May be extended by E-in-C on circumstances.

- Advance in two or more installments to be decided by E-in-C.

- Next installment on submission of proof of utilization of earlier installment.

- Guarantee Bond from Scheduled Bank for the amount equal to 110% of the advance amount valid for the contract period

- Applicable if provision is made in schedule ‘F’

Clause – 10B, Plant, Machinery & shuttering Material Advance

, General.-Tools & plants to be necessary for works.-Are in working order and are maintained.-Hypothecated to Govt.-Contractor will not be permitted to remove from site without permission.-Plant & machinery to be insured.Amount-5% of the tendered value.-For new material 90% price of such new T & P.-50% of the depreciated value for second hand-Contractor to furnish evidence/ valuation certificate by a Registered valuer by CBDT.-Not for perishable nature or value less than Rs. 50,000/-.-75% of advance on arrival and 25% on commissioning.

Clause – 10BInterest & Recovery- Mobilization advance & T&P advance bear

simple interest @ 10% per annum.- Calculated from date of payment date of

recovery both days inclusive.- Recovery starts from running bills after first 10%

of the gross value of the work is executed & paid.

- On pro-rata basis beyond 10% of the gross value of work done

- Entire advance is recovered by the time 80% of gross value of work is executed & paid together with interest.

Clause 10-D, Dismantled Materials• All materials obtained during dismantling of a

structure, excavation shall be treated Govt Property

• Such materials shall be disposed off to the best advantage of Govt.

• Instructions in writing for disposal

Clause – 16 Work not done as per specifications

• All works under execution accessible for inspection of – E-in-C & his authorized representative. All superior officers Officers of QA unit Any other organisation engaged by the Deptt. for QA CETO• Contractor/ representative to be present for receiving instructions.• If work observed to be unsound, imperfect, unskillful workmanship, inferior material,

not as per contract/ specifications• Contractor on demand in writing which shall be made with in 12 month of

completion( six months < 10 lacs), shall remove materials/ articles at his own charge/ cost.

• In the event of failure, contractor liable to pay compensation under article – 2• E-in-C may accept it at reduced rates if it is not detrimental to the safety and utility.• Get it and other connected and incidental items rectified or removed and re-

executed at the risk and cost of the contractor.• Decision of E-in-C is final & binding.

Clause – 17 , Contractor liability during defect laibility period.

1. 6 months < work costing up to Rs. 10 lacs except road work 2. 12 months for other works3. If any damage to work from any cause whatever or if any defect,

shrinkage or other faults appear in the work with in DL period(after recording of completion period) arising out of defect/ improper material or workmanship

4. E-in-C to give notice in writing and contractor to make good the defect at his own expenses.

5. On default E-in-C cause the rectification of defect by other workmen and deduct the expense from any sums that are due/ may become due/ from SD/ proceeds of sale there of

6. SD to be released after DL period or till the final Bill is prepared and passed whichever is later.

7. In road work half of the SD will be released after six months at discretion of E-in-C. Remaining half after DL period or final bill is prepared and passed whichever is later.

8. Incase O & M works of E & M Services. SD is refunded with in one month from the date of final payment/ contract whichever is earlier.

Clause – 18, Contractor to supply Tools & Plants

1. Contractor to provide at his cost all materials, machinery tools and plants as per schedule F/ appliances, plants, ladders, scaffolding and temporary works which may be necessary for the purpose whether included in the specifications/ contract or not.

2. Includes carriage to & from the work.3. Contractor to provide number of persons with the

means & materials for the purpose of setting out works, counting, weighing and assisting the measurement/ examination of work & materials.

4. E-in-C will get done at expenses of contract in case of failure/ SD/ proceeds of sale.

Implementation of Labour welfare Measures , Clause 18,19

• Contractor to comply provisions of Contract labour(regulation and abolition)Act-1970 and rules

1971 thereunder.(labour license) Child labor (prohibition and regulation) Act 1986(no labour

below age of 14) Construction workers (regulation of Employment and

conditions of service) Act,1996 Buildings and other Construction Workers welfare cess Act,

1996 CPWD contractor’s Regulations

Labour welfare

Payment of wages Act 1936 Minimum wages Act,1948 Employees liability Act 1938 Workmen’s compensation Act 1923 Industrial disputes act,1947 Maternity Benefits Act,1961 CPWD Safety Code

Clause 19L, EPF and ESI

• ESI and EPF on the part of employer wrt contract shall be paid by Contractor.

• These shall be reimbursed by the E-in -C

Violations of Labour welfare• E in C to implement labour laws and cost

recoverable from contractor/SD/other sum due.

• Penalty of Rs 200/ for each default of CPWD safety code

• liability of Rs 200 for each default for not/incorrect statement in labour reports

• Liability of Rs 200 for each default of health and sanitary arrangements.

Clause 19I

• Contractor shall remove from the site ,person(s) who may be incompetant or misconduct himself.

• Contractor shall issue identity cards to the labourers employed for maintenance works who have access to individual houses.

• AE/JE will display list of contractors working in the colony on the Notice board at the service centre.

Clause 19J

• Building under construction shall not be occupied unauthorizedly. It is responsibility of contractor.

• E in C shall have the option to refuse to take possession (accept) in that position.

• It amounts to delay in completion.• Levy upto 5% of tendered value may be

imposed by SE.

Clause – 21Work not to be sublet1) Contract shall not be assigned or sublet without

written approved of E-in-C.2) Any attempt do so including insolvency/ in

solvency proceedings, bribe, gratuity, gift, loan, perquisite, rewards, pecuniary advantage entail action under clause-3.

Clause – 22, Compensation clarified

1) Compensation under contract in reasonable compensation and not actual loss/ damage sustained.

2) And whether or not any damage shall have been sustained

Clause – 23, Changes in firm’s constitution Changes in firm’s constitution to be intimated1. In case of partnership firm, previous approval

of E-in-C is required before any change in the constitution of firm.

2. In case of individual/ Hindu undivided family business prior approved is required to enter into partnership firm.

3. Action under clause 21 is taken for non compliance (Action under clause-3)

CLAUSE -24

• All works to be executed under the contract shall be executed under the direction of E-in-C.

• All works subject to approval in all respects of E-in-C

• E-in-C is entitled to direct at what point/ points and in what manner works to be commended and carried on from time to time

Clause – 26, Contractor to indemnify Govt. against patent rights

1. Contractor will indemnify the Govt. against any claim or proceeding relating to –

(a) Infringement or use of any patent or design(b) Pay any royalties which may be payable.(c) Such disputes will be notified to contractor and

contractor will at his expenses will settle.(d) Such Infringements if any is of direct result of an

order passed by E-in-C will not be covered by the contractor.

Clause – 27

Lump Sum provision• If any part of work is not payable of

measurement, E-in-C at his discretion pay Lump-sum amount entered in the estimate(estimate on which tender is made)

• Certificate of E-in-C will be final & conclusive.

Clause-28, No specifications

Action where no specifications are specified.1) In case of no specifications, work to be

carried out as per BS specification/ manufacture’s specifications/ district specifications/ instructions of E-in-C

Clause – 29(i) Withholding and lien in respect of sum due from contractor

1)whenever any claim/ claims arises out of contract against contractor.2)E-in-C or Government shall be entitled to withhold/ lien to retain such sum/ sums in whole/ part from SD further pending finalisation or adjudication of any such claim.3)E-in-C/ Government shall be entitled above course from any sum/ sums found payable/ any time thereafter payable under sum/ other contract with E-in-C/ Government or any contracting person through E-in-C pending finalisation of claim.4)Contractor is not entitled for interest.5)E-in-C/ Government shall be entitled to withhold/ lien against any partner/ Limited company whether in his individual capacity or otherwise

Clause – 29(ii)

1) Government shall have the right to cause an audit/ technical examination of the works and the final bills of the contractor after payment of final bill.

- Any over payment shall be liable for refund.- It shall be lawful for Government to recover in

the manner of 29(i) or any legally permissible manner

- If it was found that contractor was paid less, amount of under payment is to be paid to the contractor.

Clause – 29 A, Lien in respect of claims in other contracts

• in respect of payment of a sum of money arising out of or under any other contract made by the contractor with the E-in-C or the Government or with such person/ persons.

• Same provision as 29(i)

Clause – 31

Unfiltered water supply-contractor shall make his own arrangement for water. Nothing exra payable.-Water shall be fit for costruction.-If unsatisfactory, alternative arrangement at risk & cost of contractor.

.

Clause 31-A, Departmental Water Supply

• Water if available may be supplied.- Water charges @ 1% of gross work done.- Contractor to make arrangement for water

connection & pipe lines.- No claim or damage or refund of water

charges an account of temp break down

Clause – 32, Alternative water arrangement- When water is taken by the contractor from wells/

hand pumps by Govt, no charge shall be recovered.- Contractor is assure normal usage through hand

pumps/ wells. Not to interfere with the normal use. - Responsible for damage & repairs.- Contractor shall be allowed to construct temp wells in

Govt. Land after obtaining permission.- No charges are recoverable.- Necessary safety arrangements by contractor to avoid

accidents/ damages to buildings/ persons.- Restore the ground after construction/ dismantling

TAXES , Clause 37Levy/ taxes payable by contractor.1. Sales tax/ VAT (except service tax), building and other

construction worker welfare cess/ any other tax/ cess is respect of contract shall be payable by contractor.

2. No claim to be entertained.3. Service tax to be paid by the contractor to the concerned

department and same shall be reimbursed by the E-in-C.4. Contractor shall deposit royalty and obtain necessary

permit for supply of bajri, stone, kankar from local authorities.

5. In pursuant to or under any law/ notification/ order any royalty, cess or the like becomes payable by the Government (not by the contractor) to state Govt., Local authorities in respect of materials used by the contractor in works, Govt. will have right to recover if from contractor.

Clause – 38 Reimbursement of levy/ taxesConditions for reimbursement of levy/ taxes if levied after receipt of tenders.-all tender rates shall be inclusive of all taxes and levies(except service tax) under respective statutes.-Any further taxes/ levy/ cess imposed by statute after last date of receipt of tender shall be reimbursed to the contractor. However it will not attributable to delay in work with in the control of contractor, in the opinion of SE.-The contractor to keep necessary books and accounts and shall allow inspection of the same to E-in-C and furnish information to E-in-C as required.-Contractor to furnish notice to E-in-C within 30 days of imposition of any such further tax/ levy/ cess together with all necessary information.

Clause – 39

Termination of contract on death of contractor.-E-in-C has option of termination of contract without compensation to contractor.

Clause -40, Near relatives working - If his near relative working in CPWD then the contractor is

not allowed to tender in circle/ Division (Horticulture).- Near relative means – wife, husband, parents, grand

parents, children, grand children, brothers/ sisters, uncles, aunts and cousins and their corresponding in laws.

- Near relative is to be posted as Divisional Accountant/ or JE to SE.

- Give the names of employees who are near relatives to any Gazetted Officer in CPWD/ MUD.

- Any breach will result in removal from the approved list/ debarred.

Clause – 41- No gazetted engineer to work as contractor or

employee of a contractor with in the year of retirement without the previous permission of the Govt. in writing.

- Contractor is liable to be cancelled for breach.

Clause 43Compensation during war like situations• He will be paid for the work executed before the warlike

operation/ hostilities.• He will further be paid for removal of damaged work and

reconstruction.• If work was not measured. The compensation upto Rs. 5000/

by EE and by SE for higher amount.• Certificate of E-in-C, final & binding.• Contractor has to take all such precautions against air raid as

necessary for any material/ machines not on site/ not intended for work. No compensation in such cases.

• EOT

Clause – 45Labour officer clearance certificate- Contractor to produce clearance certificate from

labour officer before SD is released.- If no complaint is pending till after 3 months

from DOC and no communication from the Labour Officer till six months from DOC. SD will be released if otherwise due.