1

KARNATAKA CO-OPERATIVE MILK PRODUCER’S FEDERATION LIMITED

DrM.H.Marigowda Road, Dharmaram College Post, Bangalore 560 029.
Telephone 25536789 / 25536625 Fax : 25536105

TECHNICAL AND COMMERCIAL TENDER FOR THE WORK OF

NAME OF PROJECT : PROVIDING INTERIOR WORKS TO NEW

ADMINISTRATIVE BLOCK IN TUMKUR DAIRY & SABABHAVANA @ PAVAGADA
FOR TUMKUR MILK UNION.
IFT NO KMF/ENGG/TUMUL CIVIL WORKS/00897&00898/2019-20, dt:19/10/2019

DATE OF DOWN LOADING OF :21-10-2019 to27-11-2019 UP TO 4.00PM

TENDER DOCUMENT

LAST DATE AND TIME FOR RECEIPT

OF TENDERS :27-11-2019 up to 4.00PM

TIME AND DATE OF OPENING OF

COVER ONE OF TECHNICAL TENDER : 29-11-2019 at 11.30 AM

TIME AND DATE OF OPENING OF : 04-12 -2019 at 11.30 AM

COVER TWO OF COMMERCIAL TENDER

PLACE OF OPENING OF TENDERS :KMF Central Office

ADDRESS FOR COMMUNICATION Karnataka Milk Federation Ltd,
DrM.H.Marigowda Road
DRC Post, B'lore -560 029

CHECK LIST - Following listed documents have to be furnished to claim

the eligibility.
 2

NAME OF PROJECT PROVIDING INTERIOR WORKS TO NEW

ADMINISTRATIVE BLOCK IN TUMKUR DAIRY & SABABHAVANA @ PAVAGADA
FOR TUMKUR MILK UNION
IFT NO KMF/ENGG/TUMUL CIVIL WORKS/00897 &00898/2019-20, dt:19/10/2019

To qualify for award of this contract, each tenderer in its name should have in the last five years. 20014-15
to 2018-19 the following criteria

Status
SL No Particulars
1. Prescribed EMD shall be submitted through e-procurement
only through following modes :
a)Credit Card,
b)Debit Card
c)NEFT (National Electronic, Fund Transfer) &
d)OTC (Over the Counter) - ICICI BANK
2 Registration certificate PWD/CPWD/MES of (Class 1 & DOCUMENT TO BE
above) shall be attached ATTACHED
3. Details of tenderers Bio-data DETAILS TO BE
ATTACHED
4 Work done certificate As per Eligibility criteria of
technical tender bid document ( refer page no-6 to 7) DOCUMENT TO BE
ATTACHED
5 Documents in respect of Achieved in at least two financial
years a minimum financial turnover DOCUMENT TO BE
As per Eligibility criteria of technical tender bid document ATTACHED
(referpage no-6 to 7)

6 Documents in respect of credit lines /letter of DOCUMENT TO BE

credit/certificate from banks. ATTACHED
(As per Eligibility criteria of technical tender bid
document (refer page no-6 to 7 )
7 GST, PAN & other statutory registration certificates to be DOCUMENTS TO
Attached BE ATTACHED

SIGNATURE OF THE TENDERER

 3

Contents

Sl No Description SHEET

1.INVITATION FOR TENDERS 4

2.INSTRUCTION TO TENDERERS 5 - 13

3.FORM OF TENDER & LETTER OF ACCEPTANCE,

QUALIFICATION INFORMATION, 14 - 16

4.CONDITIONS OF CONTRACT 17 - 26

5. CONTRACT DATA 27 - 30

6 . SPECIAL CONDITIONS OF CONTRACT 31 - 33

7.SPECIFICATIONS 33

8.DRAWINGS 33

9.BILL OF QUANTITIES 34

11. FORMAT OF BANK GUARANTEE FOR SECURITY DEPOSIT 35

 4

KARNATAKA CO-OPERATIVE MILK PRODUCERS' FEDERATION LIMITED

KMF COMPLEX, Dr. M.H. MARIGOWDA ROAD, DHARMARAM COLLEGE POST, BANGALORE
560 029.

TECHNICAL AND COMMERCIAL TENDER FOR CIVIL WORKS

SECTION . 1. INVITATION FOR TENDERS (IFT)

IFT NO KMF/ENGG/TUMUL CIVIL WORKS/00897 &008980/2019-20, dt:19/10/2019

1. Karnataka Milk federation invites tenders from eligible tenderers for the Civil works
registered in KPWD/CPWD/MES of class 1 & above Contractors / Firms for the construction of works detailed
in the Table below. The tenderers may submit tenders through e - procurement portalonly.

2. Tender documents may be downloaded from the Website: https://eproc.karnataka.gov.in/

3. Earnest money deposit will have to be in any one of the forms as specified and furnished through e-
procurement only and shall have to be valid for 45 days beyond the validity of the tender.

TABLE

Packag Name of work Approximate Period of Class of

e Value of work Earnest Money Completion Contractor
No. Deposit

1 PROVIDING
INTERIOR WORKS Rs.103.47 Rs.1,79,000/- 04 Months Class I and
above /
TO NEW Lakhs
ADMINISTRATIVE
BLOCK IN TUMKUR
DAIRY &
SABABHAVANA @
PAVAGADA FOR
TUMKUR MILK
UNION.

For Karnataka Milk federation Ltd,.

-sd-
Director (Engineering)

SECTION 2 : INSTRUCTIONS TO TENDERERS ( I T T )Table of Clauses

 5

A General

1. Scope of Tender
2. Eligible Tenderers
3. Qualification of the tenderer
4. One Tender per Tenderer
5. Cost of tendering
6. Site Visit

B Tender Documents

7. Content of Tender documents

8. Amendment of Tender documents

C Preparation of Tenders

9. Documents comprising the Tender

10. Tender prices
11. Tender Validity
12. Earnest money deposit
13. Format and signing of Tender

D Submission of Tenders

14. Sealing and marking of Tenders

15. Deadline for submission of Tenders
16. Late Tenders
17. Modification and Withdrawal of Tenders

E Tender opening and evaluation

18. Tender opening

19. Process to be confidential
20. Clarification of Tenders
21. Examination of Tenders and determination of
Responsiveness
22. Correction of errors
23. Evaluation and comparison of Tenders

F Award of Contract

24. Award criteria

25. Employer's right to accept any Tender
And to reject any or all Tenders
26. Notification of award and signing Of Agreement
27. Security deposit
28. Corrupt or Fraudulent practices

A. General

1. Scope of Tender
 6

The tender inviting authority invites tenders from eligible tenderers for the construction of works as defined in
the Table given in the invitation for tenders (IFT). The tenderers may submit tenders for any or all of the works
detailed in the table given in IFT.

2. Eligible Tenderers

Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices issued by the
GOK.
Tenders from joint ventures are not acceptable.

3. Qualification of the tenderer :

All tenderers shall provide the requested information accurately and sufficient detail as sought in Form of
tender and qualification information (Section – 3).

To qualify for award of this contract, each tenderer in its name should have in the last five years. 2014-15 TO
2018-19

(a) Achieved in at least two financial years a minimum financial turnover (in all cases of civil
engineering construction only)of Rs–206.94 Lakhs

(b) Satisfactorily completed, as prime contractor, at least one similar work (Interior works only)of
value not less than 50% estimated value of contract-Rs– 51.73 Lakhs.

(a) (c) The tenderer or his identified sub-contractor should poses valid electrical license for executing
building electrification works and have executed similar electrical works totaling not less than 50% of
the electrical works in any one year.Document to be attached

(b) (d) The tenderer or his identified sub-contractor should possess valid license for executing water
supply/sanitary engineering works totaling not less than 50% of the water supply works in any one year
Document to be attached.

3.3 Each tenderer should further demonstrate ( For the works more than five Lakhs
(c) value

(d) Liquid assets and / or availability of credit facilities of no less than Rs- 50.00 Lakhs equivalent to the
estimated cash flow for three months in the peak construction period (credit lines/letters of
credit/certificates from the banks for meeting the fund requirement etc,.)
(e) Availability by owning at least 50% of the required /specified key and critical equipment for this work
and the remaining 50% can be deployed on lease/hire basis for all works provide the relevant
documents (commitment agreement etc.,)for availability for this works are furnished
(f) Even though the tenderers meet the above criteria, they are subject to be disqualified if they have :
- made misleading or false representations in the forms, statements and attachments submitted in proof of
the qualification requirements: and/or
- Record of poor performance such as abandoning the works, not properly completing the contract,
inordinate delays in completions, litigation history, or financial failures etc,. and/or
 7

- Participated in the previous Tender for the same work and had quoted unreasonably high tender prices and
could not furnish rational justification.

4 One Tender per Tenderer:

4.1 Each tenderer shall submit only one tender for one package. A tenderer who submits or participates in more
than one Tender (other than as a sub-contractor or in cases or alternatives that have been permitted or requested) will
cause all the proposals with the Tenderer’s participation to be disqualified.

5 Cost of Tendering:

5.1 The tenderer shall bear all costs associated with the preparation and submission of his tender, and the
Employer will in no case be responsible and liable for those costs.

6 Site visit:

6.1 The Tenderer at his own responsibility and risk is encouraged to visit and examine the Site of Works and its
surroundings and obtain all information that may be necessary for preparing the Tender and entering into a contract
of construction of the works. The cost of visiting the site shall beat the tenderer’s own expense.

B. TENDER DOCUMENT

7 Content of Tender document :

7.1 The set of tender document shall have all the sections given/mentioned.
7.2 Both the sets should be completed and returned with the tender.

8 Amendment of Tender document :

8.1 Before the deadline for submission of tenders, the Employer may modify the tender
documents by issuing addendas.
8.2 Any addendum thus issued shall be part of the tender documents and shall be communicated in writing
or by cable to all the purchases of the tender documents.
8.3 To give prospective tenderers reasonable time in which to take an addendum into account in preparing
their tenders, the Employer shall extend as necessary the
deadline for submission of tenders, in accordance with sub-clause 12.2 below.

C. Preparation of Tenders

9 Documents comprising the Tender (Through e- procurement only)

9.1 The tender submitted by the Tenderer shall comprise the following;
9.1.1 Technical tender
a) Earnest Money Deposit,
b) The qualification information as per formats given in the Section 3.
9.1.2 Comercial Tender:
a) The Tender (in the format indicated in Section 4)
b) Priced bill of quantities (Section 9)
And any other materials required to be completed and submitted by tenderers in accordance with these
instructions. The documents listed under Section 3,5 and 8 shall be filled in without exception.

9.2 Tenderers submitting tenders together with other contracts stated in the IFT to
form a package will so indicate in the tender together with any discounts
for the award of more than one contract.
 8

10.Tender Prices (Through e- procurement only)

10.1 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 Tenderer.
10.2 The Tenderer shall fill in rates and prices and lime item total(both in figures
and words) for all items of the works described in the Bill of Quantities .
along with the total tender price(both in figures and words) item for which
no rate or price is entered by the tenderer will not be paid for by the
Employer when executed and shall be deemed covered by the
other rates and prices in the bill of Quantities, Corrections, if any, shall
be made by crossing out dating and rewriting.
10.3 All duties, taxes and other levies payable by the contractor under the
contract, or for Any other cause shall be included in the rates, prices and
total Tender price submitted by the tenderer. The rates and price quoted
by the Tenderer shall be fixed for the duration of the Contract and shall not
be subject to adjustment on any account.

11. Tender validity

11.1
Tenders shall remain valid for a period not less than ninety days after the deadline date for tender
submission specified in Clause 12. A tender valid for shorter periods shall be rejected by the Employer as
non-responsive.
11.2
In exceptional circumstances, prior to expiry of the original time limit the Employer may Request that the
tenderers may extend the period of validity for as specified additional period. The request and the
tenderers’ responses shall be made in writing or by cable. A tenderer may refuse the request without
forfeiting his earnest money deposit. A tenderer agreeing to the request will not be required or permitted to
modify his tender, but will be required to extend the validity of his earnest money deposit for a period of
the extension, and in compliance with Clause 9 in all respects.

12.Earnest Money Deposit (Through e- procurement only)

12.1 The tenderer shall furnish as part of his tender, earnest money deposit in the amount as shown in the
Table of IFT for this particular work. This earnest money deposit shall be in the form of four
modes of e-procurement payment a)Credit Card, b)Debit Card, c)NEFT (National Electronic
Fund Transfer) & d)OTC (Over the Counter).

12.2 Instruments having fixed validity issued as earnest money deposit for the
tender shall be Valid for 45 days beyond the validity of the tender.
12.3 Any tender not accompanied by an acceptable earnest money deposit
and not secured as indicated in Sub-Clause 9.1 and 9.2 above shall be
rejected by the Employer as non-responsive.
12.4 The Earnest Money Deposit of unsuccessful tenderers will be returned within
30 days of the End of the tender validity period specified in Sub-Clause 8.1.
12.5 The Earnest Money Deposit of the successful tenderer will be discharged
when the Tenderer has signed the Agreement and furnished the required
Performance Security.
12.6 The Earnest Money Deposit may be forfeited.
[a] If the Tenderer withdraws the Tender after tender opening during the
period of Tender validity.
[b] If the Tenderer does not accept the correction of the Tender price,
 9

pursuant to clause 19; or

[c] In the case of a successful Tenderer, if the Tenderer fails within the
specified time limit to
Ii) Sign the Agreement; or
(ii) furnish the required Security deposit

13. Deleted

C. Submission of Tenders

14. The intending contractors have to download the tender Document from the e-
procurement portal https://eproc.karnataka.gov.in/ in and upload the duly completed
tenders /Relevant documents with in the stipulated dates and time In the e-procurement
portal only. No documents will be accepted in person manually.

Any other relevant information can be obtained from the Engineering

Division KMF during working hours.

16. Late Tenders

Deleted.

17. Modification and Withdrawal of Tenders

Deleted.

E. Tender Opening and Evaluation

18. Tender Opening

Deleted.

19 Process to be confidential

19.1 Information relating to the examination, clarification evaluation and comparison of Tenders and
recommendations for the award of a contract shall not be disclosed to Tenderers or any other persons not
officially concerned with such process until the award to the successful Tenderer has been announced. Any
effort by a Tender to influence the Employer’s processing of Tenders or award decisions may result in the
rejection of his Tender.

20. Clarification of Tenders

To assist in the examination, evaluation and comparison of Tenders, the Employer may, at his discretion ask
any tenderer for clarification of his tender, including breakdowns of unit rates. The request for clarification
and the response shall be in writing or by cable but no change in the price or substance of the Tender shall
be sought, offered, or permitted except as required to confirm the correction of arithmetic errors discovered
by the Employer in the execution of the Tenders in accordance with Clause 19. Subject to Sub-clause 17.1,
no Tenderer shall contact the Employer on any matter relating to its tender from the time of the Tender
opening to the time the contract is awarded. If the Tenderer wishes to bring additional information to the
notice of the Employer, it should do so, in writing. Any effort by the Tenderer to influence the Employer in
the Employers Tender evaluation,
 10

Tender comparison or contract award decisions may result in the rejection of the Tenderers’ Tender.

21. Examination of Tenders and determination of responsiveness

21.1 Prior to the detailed evaluation of Tenders, the Employer will determine whether each tender (a) meets the
eligibility criteria defined in Clause 2; (b) has been properly signed; (c) is accompanied by the required
earnest money deposit and (d) is substantially responsive to the requirements of the Tender document.

21.2 A substantially responsive Tender is one which conforms to all the terms, conditions and Specification of
the Tender documents, with out material deviation or reservation. A material deviation or reservation is one
(a) which effect in any substantial way the scope, quality, or performance of the works; (b) which limits in
any substantial way, inconsistent with the Tender documents, the Employer rights or the Tenderer’s
obligations under the Contract; or (c) whose rectification would effect unfairly the competitive position of
other Tenderers presenting substantially responsive Tenders.

21.3 If a Tender is not substantially responsive, it will be rejected by the Employer, and may not substantially be
made responsive by correction or withdrawal of the nonconforming deviation or reservation.

22. Correction of errors

22.1 Tenders 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 lower of the two will
govern; and
(b) where there is a discrepancy between the unit rates and the line item total resulting from
multiplying the unit rate by the quantity, the unit rates as quoted will govern.

22.2 The amount stated in the Tender will be adjusted by the Employer in accordance with the above procedure
for the correction of errors and; with the concurrence of the Tenderer, shall be considered as binding upon
the Tenderer. If the Tenderer does not accept the corrected amount the Tender will be rejected and the
earnest money deposit may be forfeited in accordance with Sub-Clause 9.0 (o).

23 Evaluation and comparison of Tenders

23.1 The employer will evaluate and compare only the Tenders determined to be substantially responsive in
accordance with Clause 18.
23.2 In evaluating the Tenders, the Employer will determine for each Tender the evaluated Tender price by
adjusting the Tender Price as follows:
(a) Making any correction for errors pursuant to Clause 19; and
(b) Making appropriate adjustments to reflect discounts or other price modifications offered in
accordance with Sub Clause 14.5.
23.3 The Employer reserves the right to accept or reject any variation, deviation or alternative offer.
Variation, deviations and alternative offers and other factors which are in excess of the requirements of the Tender
documents or otherwise result in unsolicited benefits for the Employer shall not be taken into account in Tender
evaluation.

F. Award of Contract

24. Award Criteria

24.1 Subject to Clause 22, the Employer will award the Contract to the Tenderer whose Tender has been
determined to be substantially responsive to the Tender documents and who has offered the lowest
evaluated Tender Price, provided that such Tenderer has been determined to be (a) eligible in
accordance with the provisions of Clause 2, and (b) qualified in accordance with the provisions of Clause 3.

25. Employers right to accept any Tender and to reject any or all Tenders
 11

25.1 Not withstanding Clause 21, the Employer reserves the right to accept or reject any Tender, and to cancel
the Tender process and reject all Tenders, at any time prior to the award of contract, without thereby incurring any
liability to the affected Tenderer or Tenderers or any obligation to inform the affected Tenderer of
the ground for the Employers action.

26. Notification of award and signing of Agreement

26.1 The Tenderer whose Tender has been accepted will be notified of the award by the Employer prior to
expiration of the Tender validity period by cable, telex or facsimile confirmed by registered letter. This
letter (hereinafter and in the conditions 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”)

26.2 The notification of award will constitute the formation of the contract, subject only to the furnishing of a
performance security in accordance with the provision of Clause 24.

26.3 The Agreement will incorporate all agreements between the Employer and the successful Tenderer. It will
be kept ready for signature of the successful Tenderer in the office of Employer within 30 days following
the notification of award along with the Letter of Acceptance, with in 20 days of receipt; the successful
Tenderer will sign the Agreement and deliver it to the Employer.

26.4 Upon the furnishing by the successful Tenderer of the Security deposit, the Employer will promptly notify
the other Tenderers that their Tender have been unsuccessful.

27. Security deposit

27.1 The Security deposit equivalent to 7.5% of the amount of award will be recovered in running bill of the
contractor. The EMD submitted will be adjusted against the recovery of SD.

27.2 The security Deposit recovered will be released after the completion of work and maintenance period
thereon. The maintenance period will be 1 year from the Date of Completion of Work.

27.3 The security deposit will be claimed by the contractor by furnishing the Bank Guarantee (performance B.G)
equivalent to the amount of SD valid till one year from the date of completion.

28. Corrupt or Fraudulent practices

28.1 The GOK requires that the Tenderers, observe the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy, GOK;

(a) will reject a proposal for award if it determines that the Tenderer recommended for award has
engaged in corrupt or Fraudulent practices in completing for the contract in question;

(b) will declare a firm ineligible, either indefinitely or for a stated period of time, to be awarded a
GOK contract if it at any time determines that the firm has engaged in corrupt or fraudulent practices in
competing for, or in executing, a GOK contract.

28.2 Further more, Tenderers shall be aware of the provision stated in Sub-clause 43.2 of the Conditions of
Contract.
 12

SECTION 3 : Form of Tender

Description of the Work : PROVIDING INTERIOR WORKS TO NEW

ADMINISTRATIVE BLOCK IN TUMKUR DAIRY & SABABHAVANA @ PAVAGADA
FOR TUMKUR MILK UNION.
To :
The Managing Director
KARNATAKA CO-OPERATIVE MILK FEDERATION LIMITED
DrM.H.Marigowda Road, DRC Post, Bangalore 560 029

GENTLEMEN.

We offer to execute the Works described above in accordance with the Conditions of Contract accompanying this
Tender for the Contract

This Tender and your written acceptance of it shall constitute a binding contract between us. We understand that
you are not bound to accept the lowest or any tender you receive.

We undertake that, in competing for (and, if the award is made to us, in executing) the above contract, we will
strictly observe the laws against fraud and corruption in force in India namely “Prevention of Corruption Act 1988".

We hereby confirm that this Tender complies with the Tender validity and Earnest money deposit required by the
Tender documents.

We attach herewith our current income-tax clearance certificate.

Yours faithfully,

Authorized Signature:

Name & Title of Signatory: _________________ _ _ _ _ _ _ _ _ _

_______________________________

Name of Tenderer : __________________ ___

Address :
--------------------------------------------------------
------------------------------------------------------
Qualification Information
The information to be filled in by the Tenderer hereunder will be used for purposes of computing Tender capacity as
provided for in Clause 3 of the Instructions to Tenderers. This information will not be incorporated in the Contract.

1.1 Constitution or legal status of Tenderer (Attach copy)

Place of Registration ------------------------------

Principal place of business: ---------------------------------

Total turn over in the last Five years ( In Rs. Lacs) 2014 –15 ---------------------

2015 -16 ------------ --------

 13

2016 - 17 ----------------------

2017 – 18 ---------------------

2018 - 19 ---------------------
(Attach copies)

1.3 Work performed as Prime Contractor (In the same name) on works of similar nature
over during the five years specified in 1.2 above (Details to be furnished)

Project Name of Descriptio Contrac Value of Date of Specified Actual Remarks

name employer n of work t contract work Period of complet
explaining
number order completion ion
period reason for
delay in
completion
1 2 3 4 5 6 7 8 9

1.4 Information on works for which Tenders have been submitted and works which are yet to be completed as on
the date of this Tender.
(Note : Attach certificate from chartered accountant for the certification of construction works executed and
payments received in the last five years.)
(B)Works for which Tenders already submitted : (Details to be furnished)

Description of Place & Name and address of Estimated Specified Date when Remarks
work state employer Value of Period of decision is
if any
contract completion expected
1 2 3 4 5 6 7

1.5 Construction equipment owned by the tenderer and equipment proposed to

Deployed on this contract, if awarded.

1.6 Reports on the financial standing of the tenderer, such as profit and loss statements
and auditor's reports for the last five years.

1.7 Qualification and experience of the key technical and management personnel in permanent employment with
the tenderer and those that are proposed to be deployed on this contract, if awarded.

1.8 Name, address and telephone, telex and fax numbers of the Tenderers bankers who may provide references if
contacted by the Employer.

1.9 Proposals for subcontracting components of works amounting to more than 20% of the contract price [ for each,
the qualifications and experience of the identified sub-contractor in the relevant fields should be attached.]
 14

SECTION 4 ; CONDITIONS OF CONTRACT Table of Contents

A GENERAL PAGE
NO
1 Definitions
2 Interpretation
3 Law governing contract
4 Employees decisions
5 Delegation
6 Communications
7 Subcontracting
8 Other Contractors
9 Personnel
10 Employer's and Contractor's risks
11 Employer's risks
12 Contractor's risks
13 Query about Contract Data
14 Contractor to contract the works
15 The works to be completed by intended Completion Data
16 Safety
17 Discoveries
18 Possession of the Site
19 Access to the Site
20 Instructions
B TIME CONTROL
21 Program
22 . Extension of the Intended Completion Date
23 . Delays ordered by the Employer
24 Management meetings
C QUALITY CONTOL
25 Identifying defects
26 Tests
27 . Correction of defects
28 Uncorrected defects
D COST CONTROL
29 Bill of quantities (BOQ)
30 Variations
31 Payment for variations
32 Submission of bills for payment
33 Payments
34 Compensation events
35 Tax
36 Liquidated damages
37 Cost of repairs
E FINISHING OF CONTRACT
38 Completion
39 Taking over
40 Final account
41 As built drawing
42 Termination
43 Payment upon termination
44 Property
45 Release from Performance
F SPECIAL CONDITIONS OF CONTRACT
 15

SECTION 4 :CONDITIONS OF CONTRACT

A - General
1.Definitions :

1.1 Terms which are defined in the Contract Data are not also defined in the Conditions of Contract but keep
their defined meanings. Bold letters are used to identify defined terms.

Bill of Quantities means the priced and completed Bill of Quantities forming part of the Tender.
Compensation events are those defined in Clause 34 hereunder.
The Completion Date is the date of completion of the Works as certified by the Employer in accordance with
Sub- Clause 38.1.
The Contract is the contract between the Employer and the Contractor to execute, complete and maintain the
Works. It consists of the documents listed in Clause 2.3 below.
The contract Data definers the documents and other information which comprise the Contract.
The Contractor is a person or corporate body whose Tender to carry out the Works has been accepted by the
Employer.
The Contractor's Tender is the completed Tender document submitted by the Contractor to the Employer.
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.
A Defect is any part of the Works not completed in accordance with the Contract.
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.
Equipment is the 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 Employer by issuing an extension of time.
Materials are all supplies, including consumables, used by the contractor for incorporation in the Works.
Plant is any integral part of the Works which is to have a mechanical, electrical, electronic or chemical or
biological function.
The Site is the area defined as such in the Contract Data.
Specification means the Specification of the Works included in the Contract and any modification or addition
made or approved by the Employer. .
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
A Variation is an instruction given by the Employer which varies the Works.
Works are what the Contract requires the Contractor to construct, install, and turn over to the Employer, as
defined in the Contract Data.
2, Interpretation.
2.1 In interpreting these Conditions of Contract, singular also means plural, male also means female or neuter,
and the other way around. Headings have no significance. Words have their normal meaning under the
language of the Contract unless specifically defined. The Employer will provide instructions clarifying
queries about the conditions of Contract.
2.2 The documents forming the Contract shall be interpreted in the following order of priority :

(1) Agreement.
(2) Letter of Acceptance, notice to proceed with the works.
(3) Contractor's Tender.
(4) Contract Data
 16

(5) Condition of Contract.

(6) Specification.
(7) Drawings
(8) Bill of quantities and
(9) any other document listed in the Contract Data as forming part of Contract.

3. Law governing contract.

3.1 The law governing the contract is the Laws of India supplanted by the Karnataka
Local Acts.
4. Employer's decisions.
4.1 Except where otherwise specifically stated, the Employer will decide contractual
matters between the Employer and the Contractor.

5. Delegation
5.1 The Employer may delegate any of his duties and responsibilities to other people after notifying the
Contractor and may cancel any delegation after notifying the Contractor.

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.Subcontracting
7.1 Deleted .

8. Other Contractors
8.1 The Contractor shall cooperate and share the Site with other contractors, public authorities, utilities, and
the Employer.

9. Personnel
9.1 The Contractor shall employ the technical personnel (of number and qualifications) as may be stipulated
by KMF from time to time during the execution of the work. The technical staff so employed shall be
available at site as may be stipulated by the Employer.
9.2 If the Employer asks the Contractor to remove a person who is a member of the Contractor's 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 Contract.

10. Employer's and Contractor's risks

10.1 The Employer carries the risks which this contract states are Employer's risks, and the Contractor Carries
the risks which this Contract states are Contractor's risks.

11. Employer 's risks

The Employer is responsible for the excepted risks which are(a) in so far as rebellion, riot commotion or
disorder or(b) a cause due solely to the design of the Works, other than the Contractor's design.

12. Contractor's risks

All risks of loss of or damage 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. Insurance :
The Contractor shall prior to commencing the works, effect and there after maintain insurances, in the joint
names of the Employer and the Contractor (cover from the first working day after the start date to the end of defects,
liability period) in the amounts stated in the contract data:
 17

a) for loss or damage of the works, plants and materials and the contractors equipment:
b) for liability of both Parties for loss, damage, death and injury to third parties or their property arising
out of the Contractor’s performance of the Contract including the Contract including the Contractor’s
liability for damage to the Employer’s property other than the works and
c) for liability of both Parties and of any Employer’s representative for death and injury to the
Contractor’s personnel except to the extent that liability arises from the negligence of the Employer, any
Employer’s representative or their Employees.
13.2 Policies and certificates for insurance shall be delivered by the Contractor to the Employer for his approval
before the Start Date. All such insurance shall provide for compensation to be payable to rectify the loss or
damage incurred. All payments received from insurers relating to loss or damage shall be held jointly by
the Parties and used for the repair of the loss or damage or as compensation for loss or damage that is not
to be repaired.
13.3 If the Contractor fails to effect or keep in force any of the insurance referred to in the previous sub clauses
or fails to provide satisfactory evidence, policies or receipts, the Employer may without prejudice to any
other right or remedy, effect insurance for the cover relevant to such default and pay the premiums due and
recover the same as a deduction from any other monies due to the Contractor. If no payments 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 Employer.
13.5 Both Parties shall comply with any conditions of the insurance policies.
14. Site investigation Reports:

14.1 The Contractor, in preparing the tender shall rely on any site investigation reports referred to in the
Contract data, supplemented by any information available to the Tenderer.

15. Queries about the Contract Data

15.1 The Employer will clarify queries on the Contract Data

16 Contractor to construct the Works
16.1 The Contractor shall construct the Works in accordance with the Specification and Drawings.

17 The Works to be Intended Completion Date

17.1 The Contractor may commence execution of the Works on the Start Date and complete them by the Intended
Completion Date.

18 Safety
18.1 The Contractor shall be responsible for the safety of all activities on the Site.

19 Discoveries
19.1 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 Employer of such discoveries and carry out the
Employer's instructions for dealing with them.
20 Possession of the Site
20.1 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 Compensation Event.

21 Access to the Site.

21.1 The Contractor shall allow the Employer and any person authorized by the Employer 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 plant are being manufactured/fabricated / assembled for the works.

22 Instructions
22.1 The Contractor shall carry out all instructions of the Employer which comply with the applicable laws where
the Site is located.

23. Procedure for resolution of Disputes:

 18

23.1 If the Contractor is not satisfied with the decision taken by the Employer, the dispute shall be referred by
either party to Arbitration within 30 days of the notification of the Employer’s decision.
23.2 If neither party refers the dispute to Arbitration within the above 30 days, the Employer’s decision will be
final and binding.
23.3 The Arbitration shall be conducted in accordance with the arbitration procedure stated in the Special
Conditions of contract.

B. Time Control

23 Program
23.1 Within the time stated in the Contract Data the Contractor shall submit to the Employer for approval a Program
showing the general methods, arrangements. order and timing for all activities in the Works.

23.2 The Employer's approval of the program shall not alter the Contractor's obligations. The Contractor may
revise the program and submit it to the Employer again at any time A revised Program is to show the effect of
variations and Compensation Events.

24 Extension of the Intended Completion Date.

24.1 The Employer 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.
24.2 The Employer shall decide whether and by how much to extend the Intended Completion Date within 21days
of the Contractor asking the Employer for a decision upon the effect of a Compensation Event or Variation and
submitting full supporting information.

25 Delays ordered by the Employer.

25.1 The Employer may instruct the Contractor to delay the start or progress of any
Activity within the Works.

26 Management meetings
24.1 The Employer may require the Contractor to attend a management meeting.
The business of a management meeting shall be to review the progress
achieved and the plans for remaining work.
24.2 The responsibility of the parties for actions to be taken is to be decided by the Employer either at the
management meeting or after the management meeting and stated in writing to be distributed to all who
attended the meeting.
24.3
C. Quality Control

27 Identifying defects
27.1 The Employer shall check the Contractor's work and notify the Contractor of any Defects that are found. Such
checking shall not affect the Contractor's responsibilities. The Employer may instruct the Contractor to search
for a Defect and to uncover and test any work that the Employer considers may have a Defect.

28 Tests
28.1 If the Employer 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.

29 Correction of defects
29.1 The Employer 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
 19

Contract Data. The Defects Liability Period shall be extended for as long as
Defects remain to be corrected.
29.2 Every times notice of a Defect is given the Contractor shall correct the notified
Defect within the length of time specified by the Employer's notice.

30 Uncorrected defects
30.1 If the Contractor has not corrected a Defect within the time specified in the
Employer's notice, the Employer will assess the cost of having the Defect
corrected, and the Contractor will pay this amount.

D. Cost Control

31 Bill of Quantities (BOQ)

29.1 The BOQ shall contain items for the construction, installation, testing and
commissioning work to be done by the Contractor.
29.2 The BOQ is used to calculate the Contract Price. The Contractor is paid for the quantity of the work
done at the rate in the BOQ for each item.
30. Variations.
30.1 The Employer shall have power to order the Contractor to do any or all of the following as considered
necessary or advisable during the progress of the work by him
(a) Increase or decrease of any item of work included in the bill of Quantities (BOQ).
(b) Omit any item of work;
(c) Change the character or quality or kind of any item of work;
(d) Change the levels, lines, positions and dimensions of any part of work;
(e) Execute additional items of work of any kind necessary for the completion of
the works; and
(f) Change in any specified sequence, methods or timing of construction of any
part of the work.

30.2 The Contractor shall be bound to carry out the work in accordance with any instructions in this connection,
which may be given to him in writing by the Employer and such alteration shall not vitiate or invalidate
the contract.
30.3 Variations shall not be made by the Contractor without an order in writing by the Employer, provided that
no order in writing shall be required for increase or decrease in the quantity of an item appearing in the
BOQ so long as the work executed conforms to the approved drawings.
30.4 The Contractor shall promptly request in writing the Employer to confirm verbal orders and if no such
confirmation is received within 15days of request, it shall be deemed to be an order in writing by the
Employer.

32 Payments for Variations

31.1 Payment for any decrease / increase in the quantities of any item in the BOQ shall be made at the quoted
rates only , without change.
31.2 If there is no rate for the additional, substituted or altered item of the work in the BOQ, efforts would be
made to derive the rates from those given in the BOQ or the Schedule of Rates(applicable for the area of
the work and current at the time of award of contract) and if found feasible the payment would be made at
the derived rate for the item plus or minus the overall percentage of the original tendered rates over the
current Schedule of Rates prevalent at the time of award of contract.
31.3 If the rates for additional, substituted or altered item of work cannot be determined either as at 31.1 or
31.2 above, the Contractor shall be requested to submit his quotation for the items supported by analysis of
the rate or rates claimed, within 7 (Seven) days.
31.4 If the Contractor's quotation is determined unreasonable, the Employer may order the Variation and make
a change to the Contract Price which shall be based on Employer's own forecast of the effects of the
Variation on the Contractor's costs.
 20

31.5 If the Employer decides that the urgency of varying the work would prevent a quotation being given and
considered without delaying the work, no quotation shall be given and the Variation shall be treated as a
Compensation Event.
31.6 Under no circumstances the Contractor shall suspend the work on the plea of non-settlement of rates for
items falling under this Clause.

32. Submission of bills for payment .

The Contractor shall submit to the Employer monthly bills of the value of the work
Completed less the cumulative amount paid previously.
The Employer shall check the Contractor's bill and determine the value of the work
executed which shall comprise of (i) value of the quantities of the items in the BOQ
completed and (ii) valuation of Various and Compensation Events.

32.3. The Employer may exclude any item paid in a previous bill or reduce the proportion of any item previously
paid in the light of later information.

33. Payments.
33.1 Payments shall be adjusted for deductions for retention, other recoveries in terms of the contract and taxes,
at source, as applicable under the law. The Employer shall pay the Contractor the within 60 days of
submission of bill.

33.2 Items of the Works for which no rate or price has been entered in will not be paid ;for by the Employer
and shall be deemed covered by other rates and prices in the Contract.
34 Compensation events
34.1 The following are Compensation events unless they are caused by the Contractor:
(a) The Employer does not give access to part of the Site by the Site possession Date stated in the
Contract Data.
(b) The Employer orders a delay or does not issue drawings, specifications or instructions required
(c) The Employer instructs the Contractor to uncover or to carry out additional tests upon work which is
then found to ;have no Defects.
(d) The Employer gives an instruction for dealing with an unforeseen condition, caused by the caused by
the Employer, or additional work required for safety or other reasons.
(e) The effect on the Contractor of any of the Employer's Risks.
(f) The Employer unreasonably delays issuing a Certificate of Completion.
(g) Other Compensation Events listed in the Contract Data or mentioned in the Contract.
34.2 If a Compensation Event would cause additional cost or would prevent the work ;being completed
before the Intended Completion Date, the Contract Price shall be increased and/ or the Intended
Completion Date is extended. The Employer shall decide whether and by how much the Contract
Price shall be increased and whether and by how much the intended Completion Date shall be extended.
34.3 As soon as information demonstrating the effect of each Compensation event upon the Contractor's forecast
cost has been provided by the Contractor, it is to be assessed by the Employer and the Contract Price shall
be adjusted accordingly. If the Contractor's forecast is deemed unreasonable, the Employer shall adjust the
Contract Price based on Employer's own forecast. The Employer will assume that the Contractor will react
competently and promptly to the event.
34.4 The Contractor shall not be entitled to compensation to the extent that the Employer's interests are
adversely affected by the Contractor not having given early warning or not having cooperated with the
Employer.

35. Tax.
35.1 The rates shall include all taxes excluding GST (GST shall be paid to the Tendered amount separately
as applicable)and inclusive other taxes that the Contractor will have to pay for the performance of this
Contract. The Employer will perform such duties in regard to the deduction of such taxes at source as per
applicable law.
35.2
35.3 .
 21

36. Liquidated damages.

36.1.1 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. The total amount
liquidated damages shall not exceed the amount defined in the Contract Data. The Employer may deduct
liquidated damages from payments due to the Contractor, Payment of liquidated damages does not affect
the Contractor's liabilities.

36.1.2 If the Intended Completion Date is extended after liquidated damages have been paid, the Employer shall
correct any overpayment of liquidated damages by the Contractor by adjusting the next payment of bill.

37. Cost of repairs.

37.1 Loss or damage to the Works or Materials to be incorporated in the Works between the Start Date and the end
of the Defects Correction periods shall be remedied by the Contractor at the Contractor's cost if the loss or
damage arises from the Contractor's acts or omissions.

E. Finishing the Contract

38. Completion.
38.1 The Contractor shall request the Employer to issue a certificate of Completion of the works and the Employer
will do so upon deciding that the Work is completed.

39. Taking over

39.1 The Employer shall take over the Site and the Works within seven days of issuing a certificate of completion.
40. Final Account.
40.1 The Contractor shall supply to the Employer a detailed account of the total
amount that the Contractor considers payable under the Contract before the end of the Defects Liability
period. The Employer shall issue a defect Liability certificate and certify any final payment that is due to
the Contractor within 90days of receiving the contractor's account if it is correct and complete. If it is not,
the Employer shall issue within 90 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 Employer shall
decide on the amount payable to the Contractor and make payment within 60 days of receiving the
contractor's revised account.

41 As built drawings
41.1 If " as built " 28 Drawing are required, the Contractor shall supply them by the
dates stated in the Contract Data.
41.2 If the Contractor does not supply the Drawings by the dates stated in the Contract
Data, or they do not receive the Employer's approval the Employer shall withhold
the amount stated in the Contract Data from payments due to the Contractor.

42. Termination
The Employer of the Contractor may terminated the Contract if the other party
causes a fundamental breach of the Contract.
Fundamental breaches of Contract include, but shall not be limited to the following:
(a) The Contractor stops work for 45 days when no stoppage of work is shown on
the current Program and the stoppage has not been authorized by the
Employer;
(b) The Employer instructs the Contractor to delay the progress of the works and
the instruction is not withdrawn within 60 days.
(c) The Contractor becomes bankrupt or goes into liquidation other than for a
reconstruction or amalgamation;
(d) A payment due to the Contractor is not paid by the Employer within 90 days
of the date of the submission of the Bill by Contractor;
(e) The Employer 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 Employer;
 22

(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 the executing the Contract.
For the purpose of this paragraph: " corrupt practice" means the offering,
giving, receiving or soliciting of any thing 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 Tenderers (prior to or
after Tender submission) designed to establish Tender prices at artificial
on competitive levels and to deprive the Borrower of the benefits of free and
open competition."
When either party to the Contract gives notice of breach of contract to the
Employer for a cause other than those listed under Sub Clause 42.2 above, the
Employer shall decide whether the breach is fundamental or not.
Notwithstanding the above, the Employer may terminate the Contract for
convenience.
If the Contract is terminated the Contractor shall stop work immediately, make the
Site safe and secure and leave the Site as soon as reasonably possible.

43. Payment upon Termination

If the Contract is terminated because of a fundamental breach of Contract by the Contractor, the Employer shall
prepare bill for the value of the work done less advance payments received up to the date of the bill, less other
recoveries due in terms of the contract, less taxes due to be 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 exceeds any payment due to the Contractor the difference
shall be a debt payable to the Employer.
If the Contract is terminated at the Employer's convenience or because of a
fundamental breach of contract by the Employer, the Employer shall prepare bill
for the Value of the work done, the reasonable cost removal of Equipment, repatriation of the
Contractor's personnel employed solely on the Works, and the Contractor's costs of protecting and
securing the Works and less advance payments received up to the date of the certificate, less other
recoveries due in terms of the contract, and less taxes due to be deducted at source as per applicable law
and make payment accordingly.

44, Property.
44.1 All materials on the Site, Plant, Equipment, Temporary Works are deemed to be the property of the
Employer, if the Contract is terminated because of a Contractor's default.

45. Release from performance

If the Contract is frustrated by any event entirely outside the control of either the
Employer or the Contractor the Employer 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.

SECTION 5: CONTRACT DATA

Items marked “ N/A “ do not apply in the contract

The following documents are also part of the contract : Clause Reference
 23

The Employer is :
NAME Managing Director
Karnataka Milk Federation Ltd,
DRC Post, Bangalore 560 029.

Name of the authorized representative : Additional Director (Engg)

The name & identification number of the contract:

IFT NO KMF/ENGG/TUMUL CIVIL WORKS/00897&00898/2019-20, dt:19/10/2019

NAME OF PROJECT : PROVIDING INTERIOR WORKS TO NEW

ADMINISTRATIVE BLOCK IN TUMKUR DAIRY & SABABHAVANA @ PAVAGADA
FOR TUMKUR MILK UNION.
The start date shall be the date of issue of notice to proceed with the work.

The intended completion date for the whole of the work is __________________________

The following documents also form part of the contract

__________________________

The site procession date is :

The site is located at :TUMKUR DAIRY PREMISES, MALLASANDRA,TUMKUR

& SABABHAVANA @ PAVAGADA KARNATAKA.

The defects liability period is : 365 days.

The liquidated damages for the whole of the works are 0.1% of the contract price per day.

The maximum amount of liquidated damages for the whole of the works is 10% of final contract price.

The date by which “as built” drawing in 2 sets are required is within 30 days of issue of certificate of completion.

The amount to be withheld for failing to supply “as built” drawings by the date required : is equivalent to the
amount sufficient to get the completion drawings prepared by alternative agency in case the contractor fails to
submit.

The following events shall also be fundamental breach of contract :

1.The contractor has contravened sub-clause 7.1 & clause 9 of CC

The Percentage to apply to the value of the work not completed representing the Employer’s additional cost for
completing the works shall be 30% / to be sufficient to get the balance works completed by alternative agency

Adjustment for labour component: (Not Applicable)

(i). Price adjustment for increase or decrease in the cost due to labour shall be paid in accordance with the
following formula:
 24

VL =0.85 X PL/100 X R X(Li - Lo)/Lo Where,

VL =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
local labour;

Lo =The average consumer price index 39 for industrial workers for ……….40 Centre for the quarter
preceding the date of opening of tenders as published by the Labour Bureau, Ministry of Labour, Government of
India;

Li = The average consumer price index for industrial workers for……….Centre for the quarter under
consideration as published by Labour Bureau, ministry of Labour, Government of India
PL = Percentage of labour component of the work

(ii). Price adjustment for increase or decrease in the cost of cement component procured by the contractor
shall be paid in accordance with the following formula:

Vc =0.85 X Pc/100 X R X(Ci - Co)/Co Where,

Vc =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
cement;

Co =The all India average wholesale price index 41 for cement (Ordinary Portland cement) for the quarter preceding
the date of opening of the tenders as published by the Office of Economic Advisor, Ministry of Commerce and
Industry, Government of India , New Delhi;

Ci = The all India average wholesale price index for cement (Ordinary Portland cement) for the quarter under
consideration as published by the Office of Economic Advisor, Ministry of Commerce and Industry, Government of
India, New Delhi

Pc = Percentage of cement component of the work

Note : For the application of this clause index of Ordinary Portland cement 43 has
been chosen to represent Cement Group
Adjustment for steel component:(Not Applicable)

(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 =0.85 X Ps/100 X R X(Si - So)/So Where,

Vs =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
steel;

Co =The all India average wholesale price index for steel(M.S. Bars and rods) for the quarter preceding the date
of opening of Bids as published by the Office of Economic Advisor, Ministry of Commerce and Industry,
Government of India , New Delhi;

Si = The all India average wholesale price index for steel (M.S. Bars and rods) for the quarter under
consideration as published by the Office of Economic Advisor, Ministry of Commerce and Industry, New
Delhi

Ps = Percentage of steel component of the work

 25

Note : For the application of this clause, index of M.S. Bars and Rods 43 has been
chosen to represent steel Group(Not Applicable)

Adjustment for Bitumen component:(Not applicable)

(iv) Price adjustment for increase or decrease in the cost of bitumen shall be paid in accordance with the
following formula.

VB =0.85 X PB/100 X R X(Bi - Bo)/Bo Where,

VB =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
bitumen.

Bo =The official retail price of bitumen at the IOC /HPCL/BPL or any other depot at …….44 on the day 30
days prior to the date of opening of Bids.

Bi = The official retail price of bitumen at the IOC /HPCL/BPL or any other depot at ……for the 15th day of the
middle calendar month of the quarter under consideration.

PB = Percentage of bitumen component of the work.

Adjustment for steel component( Not applicable)

(v) Price adjustment for increase or decrease in the cost of Fuel and Lubricants shall be paid in
accordance with the following formula.

VF =0.85 X PF/100 X R X(Fi - Fo)/Fo Where,

VF =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
Fuel and Lubricants.

Fo =The official retail price of High speed Diesel (HSD) at the IOC/HPCL/BPL or other
Consumer pump at …….45 on the day 30 days prior to the date of opening of Bids.

Fi = The official retail price of HSD at the IOC/HPCL/BPL or any other consumer pump at ……for the 15th
day of the middle calendar month of the quarter under consideration.

PF = Percentage of Fuel and Lubricant component of the work.

Note : For the application of this clause the price of HSD 46 has been chosen to
represent Fuel and Lubricant Group

Adjustment for Plant and Machinery Spares component:(Not applicable)

(vi) Price adjustment for increase or decrease in the cost of machinery spares procured by the contractor
shall be paid in accordance with the following formula.

VP =0.85 X PP/100 X R X(Pi - Po)/Po Where

VP =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
plant and machinery spares.
 26

Po =The all India average wholesale price index for Heavy Machinery and parts for the quarter preceding the date
of opening of Bids as published by the Office of Economic Advisor, Ministry of Commerce and Industry,
Government of India , New Delhi;

Pi = The all India average wholesale price index for Heavy Machinery and parts for the quarter under
consideration as published by the Office of the Economic Advisor, Ministry of Commerce and Industry,
Government of India New Delhi

PB = Percentage of Plant and machinery spares component of the work

Note : For the application of this clause, index of Heavy Machinery and parts 47
has been chosen to represent steel Group. (Not Applicable)

Adjustment for Other materials:

(Not Applicable)

(vii) Price adjustment for increase or decrease in the cost of other materials other than cement, steel, bitumen and
Fuel and Lubricants48, procured by the contractor shall be paid in accordance with the following formula:

VM =0.85 X PM/100 X R X(Mi - Mo)/Mo Where

VP =Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for
local materials other than cement, steel, bitumen and Fuel and Lubricants.

Mo =The all India average wholesale price index for all commodities for the quarter preceding the date of
opening of Bids as published by the Office of Economic Advisor, Ministry of Commerce and Industry,
Government of India , New Delhi;

Mi = The all India average wholesale price index for all commodities for the quarter under consideration as
published by the Office of the Economic Advisor, Ministry of Commerce and Industry, Government of India
New Delhi

PB = Percentage of other material component (Other than cement, steel, bitumen and Fuel and Lubricants) of the
work.

The following percentages 49 will govern the price adjustment for the entire contrast:

1. Labour - PL …..%
2. Cement - PC …..%
3. Steel - PC …..%
4. Bitumen - PB …..%
5. Fuel and Lubricants - PF51 …..%
6. Plant and Machinery spares - PP52 …..%
7. Other materials - PM …..%
Total 100% 53

Section 6 : Special Conditions of Contract

1. The following special conditions of contract shall supplement the general Conditions of Contract
given in Section II, wherever there is a conflict the provision herein shall prevail over those in the
General conditions of contract
 27

2.0 Taxes.

2.1 The rates shall include all taxes excluding GST (GST shall be paid to the Tendered amount
separately as applicable.)The bidder shall include in his rates all types of taxes,(excluding GST ) as
per the law of the Central & the Government of the state, where the Contract is to be performed. If
the Project area comes under ESI premises ESI charges will be levied as per the government norms to
the labour charges if the Contractor is not registered under ESI.

3.0 Time of Completion.

3.1 The Contractor shall execute the contract up to 10% increase in the value of the works within the
specified completion period of the Contract and no extension of time shall be granted. In case the
increase in the value exceeds 10% of the Contract, proportionate extension of time shall be granted,
for the entire amount of increase over the original contract value.

4.0 Engineer’s office Accommodation.

4.1 The Contractor shall at his own cost provide a temporary office accommodation of size 3 M x 4M –
2Nos for the Engineers ,Meeting hall with furniture’s (capacity 15 to 20 members) along with toilet
facility and shall provide electrical connection to the same. The structure shall be removed after the
completion of work, by the Contractor, at his own cost.

5.0 Water for construction and other use.

5.1 Unless otherwise specified the Contractor shall make his own arrangement for water for the work and
nothing extra shall be paid for the same.

5.2 The water used by the Contractor shall be fit for drinking as well as construction purposes to the
satisfaction of the Engineer/KMF.

5.3 The Contractor may be allowed to construct temporary tube wells/wells in the Project site for getting
water after he has got written consent of the Owner /KMF/ Engineer. The Contractor shall be required
to provide necessary arrangements to avoid any accident or damage to the buildings, roads, and
service lines adjacent to the tube wells / wells sunk. The Contractor shall dismantle the tube well /
well on completion of work and restore the ground of its original condition at his own cost.

5.4 In case the Owner / KMF supplies water it shall be on the following conditions.

1. Water charges 0.5% shall be recovered from the gross amount of work done from such interim
bill.

2. The water shall be provided at the point in the site at the discretion of the Engineer. The
Contractor shall make his own arrangement for water connection and distribution pipe lines in the
construction area.

3. The Owner / KMF shall not guarantee the maintenance of uninterrupted water supply. It will be
the responsibility of the Contractor to make alternative arrangements for water supply at his own
cost in the cost in the event of any break down so that the progress of work is not affected for
want of water. No claim or damage or refund of water charges shall be entertained on account of
such break down.

6.0 Power (Electricity) Supply.

 28

6.1 Unless otherwise specified the Contractor shall have to make his own arrangements for the power
supply at his cost. All the works shall be done as per IEA Rules. The temporary lines shall be
removed by the Contractor at his cost after the completion of the work or if there is any hindrance, to
the other works due to the alignment of these lines, during the Contract period.

6.2 In case the power supply is provided by KMF, it Shall be on the

following conditions.

1. The supply shall be made at one point in the site at the direction of the Engineer. The Contractor
shall make his own arrangement to carry and distribute the power wherever it is required within the
site as per IEA rules.

2. An Energy Meter shall be installed at the site by the Contractor for recording the power consumed
by the Contractor and the same shall be recovered at the prevailing rate of supply of electricity by
the local electricity Board or other local authorities as the case may be.

3. If at any time during the period of contract the Energy meter is found to be faulty the electricity
charges shall be recovered from the interim bills of the Contractor@ 0.5% of the value of work
done during that particular period.

4. The temporary supply lines shall be removed and the site shall be cleared by the Contractor after
the completion of the work at his own cost.

6.3The Bidders are requested to visit site to analyze the nature and quantum of work
involved.

6.4 The excess earth/rocks removed needs to be inter carted to outside the premises as
per the direction of the Engineer in-charge.

6.5 The Contractor shall have the ESI Registration to cover the employees/labourers
or else-where the amount equivalent to 6.5% of the labour charges (on 25% of
total bill value) will be deducted from the contractor bill.

7.1 Labour:

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, housing, feeding and transport.
The Contractor shall, if required by the Employer, deliver to the Employer a return in detail, in such form
and at such intervals as the Employer 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 Employer may require.

Compliance with labour regulations:

During continuance of the contract, the Contractor and his sub contractors shall abide at all times by all
existing labour enactments and rules made there under, regulations, notifications 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 notification that may be issued under any labour law in future either by the State or
the Central Government or the local authority. 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 there under, regulations or notifications including amendments. If
the Employer is caused to pay or reimburse, such amounts may be necessary to cause or observe, or for non-
 29

observance of the provisions stipulated in the notifications/bye laws/ Acts/Rules/regulations including

amendments, if any, on the part of the contractor, Employer shall have the right to deduct any money due to
the Contractor including his amount of security deposit. The Employer shall also have 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 of time.

7.2 Protection of Environment :

The contractor shall take all reasonable steps to protect the environment on and off the Site and to
avoid damage or nuisance to persons or to property of the public or others resulting from pollution,
noise or other causes arising as a consequence of his methods of operation. During continuance of the
contract, the contractor and his sub-contractors shall abide at all times by all existing enactments on
environmental protection and rules made there under, regulations, notifications and bye-laws of the
State or Central Government, or local authorities and any other law, bye-law, regulations that may be
assed
or notification that may be issued in this respect in future by the state or Central Government or the local
authority.

7.3 The contractor shall obtain at his own cost permission from concerned Authorities for blasting of
rock for foundation excavation, if and when required. The contractor shall observe all safety precautions while
blasting. The contractor shall keep the owner fee of any accidental liabilities arising from blasting.

SECTION 7 : SPECIFICATIONS ARE AS PER P.W.D NORMS

SECTION 8 : DRAWINGS (ENCLOSED)

SECTION 9 : BILL OF QUANTITIES (Enclosed Separately in part II)

Rate (Rs)
Description of item (with brief
Sl No specification & reference to Quantity Unit In figures In words Amount
Book of specifications) (Rs)

Total Tender Price (In figures)

(in words)
Note ; Item for which no rate or price has been entered in will not be paid for by the Employer when executed and
shall be deemed covered by the other rates and prices in the bill of quantities.
 30

Where there is discrepancy between the rate in figures and words, the lower of the two will govern.

When there is discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by
quantity, the unit rate quoted shall govern.

SECTION 11 : FORMAT OF BANK GUARANTEE FOR SECURITY DEPOSIT

To : _______________________________________[name of Employer]
____________________________________[address of Employer]

WHEREAS__________________________[name and address of Contractor] (hereinafter called “the Contractor”)

has undertaken, in pursuance of Contract No._____ dated_________ to execute
_____________________[name of Contract and brief description of works] (hereinafter called “the contract”);

AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you
with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his
obligations in accordance with the Contract;

AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee;

NOW THERFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the
Contractor, up to a total of Rs. __________________[ amount of guarantee]
63_Rupees _____________________________________________[in words], and we undertake to pay you, upon
your first written demand and without cavil or argument, any sum or sums within the limits of
____________[amount of guarantee]64 as aforesaid without your needing to prove or to show grounds or reasons
for your demand for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us
with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract or of the
Works to be performed there under or of any of the Contract documents which may be made between you and the
Contractor shall I any way release us from any liability under this guarantee, and we hereby waive notice of any
such change, addition or modification.

This guarantee shall be valid until 30 days from the date of expiry of the Defects Liability Period.

Signature and seal of the guarantor______________________

Name of Bank______________________________________

Address ______________________________________

Date________________________________________

63 An amount shall be inserted by the Guarantor, representing the percentage of the Contract price specified in the Contract
64 An amount shall be inserted by the Guarantor, representing the percentage of the contract price specified in the Contract
31