ANNEXURE -1

TERMS AND CONDITIONS OF THE CONTRACT

SR.NO
1 FREE ISSUE MATERIALS AND SERVICES:
The Contractor should note that one connection for water supply shall be given at one point inside the plot. The Contractor will
lay a suitable size of pipeline distribution network for his work at his cost and shall remove the same after the work is completed.
Storage of water will be solely the contractor's responsibility and at his expense. The supply of water for construction will be free
of cost.
An electric power of 230 V single phase / 415/433 V - 3 phase supply shall be made available at one location inside the plot free
of cost Necessary connections / tapings shall be made by the contractor at his cost. The contractor shall extend his cables, etc.
from this point and shall provide all necessary main switches, control board - cutouts etc. These equipment’s shall be protected
from weather, rain etc. and shall confirm to normal safety standards. The power supplied will be free of cost.
All free issue material shall be subjected to reconciliation as per AIL policy and excess consumption shall be charged with basic
rates and company overheads.
Storage space to store the materials & Tools (In Open area ,therefore it is the contractor’s reasonability to protect all
materials/equipment. Under no circumstances shall materials/equipment be stored outdoors.).
2 STATUTORY COMPLIANCES
Following statutory compliance must be strictly followed.
Minimum Wage must be paid to Contractor Workmen as per their Skill, the same is revised on 1st April & 1st October every
year.
PF - Employee contribution and minimum wages must be deposited for Contract Workmen as per rules.
ESI - Both Employee and Employer contribution must be deposited for Contract Workmen
Pre-employment Check-up for each Contract Workman must be executed by Contractor through Registered Medical Practitioner
as per AIL policy.
Contractor must give Identity Cards, to all Contract workmen.
All statutory records, registers, return etc. under applicable Labour Legislations must be maintained by Contractor
Deduction of applicable Professional Tax for each Contract Workman must be done,
Labour License to be obtained by Contractor for no of Contract Workman engaged by him.
Employees’ Compensation Policy along with Medical Contingency Policy.(Those who are not covered under ESI) must be taken
by Contractor
Contractor shall distribute Salary to the Workmen before 10th of every month by Bank Transfer
3 SPECIAL CONDITIONS OF CONTRACT :
The Contractor shall observe all normal safety precautions during construction work. The contractor shall ensure that his workers
are working in normal safe working conditions
The Contractor shall keep necessary number of supervisors and adequate nos. of experienced qualified Electrical and Safety
Engineers for full time for execution of work for entire project subjected to satisfaction of AIL. Ratio of safety supervisor to total
workers shall be minimum 1:40.
The Contractor shall provide site office at his own cost with normal furniture, fixtures & facilities for toilet in accordance with
AIL requirements, his site Engineer & his staff. He shall maintain these offices properly during the duration of the contract.
The contractor shall not be allowed to put up labor camp in the premises.
All materials provided by Contractor and shall be new & of approved quality manufactured by renowned concerns, conforming to
Indian Standards or equivalent. The materials shall have ISI mark as far as possible unless otherwise approved by Engineer prior
to procurement and use. The Contractor shall furnish manufacturer's certificates for the materials supplied when asked for.
Further to that he shall get the materials tested from an approved test house if asked for by the Engineer. The cost of all tests &
test certificates shall be borne by the Contractor. No separate payment shall be made for testing. Any materials procured or
brought to site & not conforming to specification & satisfaction of the Engineer shall be rejected & Contractor shall have to
remove the same immediately from the site at his own expenses & without any claim for compensation due to such rejection
The price quoted by the contractor shall not be subjected to any change due to increase or decrease in cost of Consumables and
labor or due to any reasons whatsoever. No escalation in rates shall be applicable for this work .The rates shall be valid for entire
duration of the Project.
The rates & prices quoted by the Contractor shall be deemed to have allowed for all such associated work & activities briefly
described in the foregoing paragraphs & no additional cost or charges whatsoever shall be payable to the Contractor.
Approximate cost stated in scope document is approximate value and there may be larger variation in estimated job value.
Time schedule is essence of this project and shall be strictly followed failing which a penalty clause shall be applicable .
Contractor shall be abide company rules , safety compliance , statutory and regulatory compliance without implication of time
and cost.
All contract workmen shall wear minimum PPEs (safety shoes, safety helmet and safety goggles) at workplace and specific PPEs
as per job specific as per safety guidelines and contractor has to arrange all safety PPEs at his own cost.
Contractor and his representative has to follow instruction of AIL all the time
AIL reserve right to allot or withdraw full or part of job to any vendor without any justification and shall be binding to all parties
without any cost implication.
 Must not have subcontracting system by the contractor.
Contractor has to provide all the related and necessary documents as mentioned in the Administrative aspect, to Personal &
Accounts department.
All working Personnel shall undergo HSE Induction Training conducted by HSE Department of M/S Aarti Industries Limited.
Tools, Tackles, Lifting tools and Machineries shall be inspected and certified by M/S Aarti Industries Limited representative.
All Tools, Tackles, Lifting tools and Machineries shall be of Standard Make with ISI standard marked.
Lifting tools must be with third Party Safety inspection Certificate issued by Competent Authority.
All Working Personnel must attend Tool Box Talk conducted by M/S Aarti Industries Limited representative.
Site In charge must attend the Safety Meeting and BBS Round with M/S Aarti Industries Limited Representative.
Working Personnel at particular allotted job must attend the Job Specific Tool Box Talk before start of execution.
Contractor shall be responsible for the discipline of his working Personnel deployed under the works contract inside the factory
Premises. In case of any loss to the on account of indiscipline of the Working personnel then such loss shall be assessed and
recovered from the running bills of Contractor.
Contractor shall immediately remove any person employed by him, who may in the opinion of such M/S Aarti Industries Limited
representative involved in misconduct. Such Person shall not be employed by Contractor without Prior Permission from M/S
Aarti Industries Limited.
Work inside the factory premises shall be supervised by Contractor or Contractor Authorized Supervisor day to day basis at all
sites of Premises.
Contractor shall compensate M/S Aarti Industries Limited for any Loss / Damage to the Plant / Assets / Material etc. due to his /
their Working Personnel / Representative negligence or otherwise during work execution.
In the event of Contractor abandoning the work or M/S Aarti Industries Limited revoking the Contract, M/S Aarti Industries
Limited shall have right to get incomplete work completed at Contractor’s risk and cost.
M/S Aarti Industries Limited shall have the right to terminate the Contract at any time without assigning any reason to
Contractor.
Contractor shall not employ any personnel for entry in the factory Premises, who has not completed the age of 18 Years and has
attained the age of 58 years.
In case of Non satisfactory Performance of the Work as per Contract, M/S Aarti Industries Limited shall have a right to terminate
the Contract with written Communication to Contractor. If any Dispute arises then Decision of the Concerned Area HOD will be
final.
In Case of Working Personnel deployment in Factory Premises exceeds the number as against of Contractor Labour Engagement
Licence, then Contractor shall Immediately communicate to Concerned HR / Administrative Department of M/S Aarti Industries
Limited and necessary Amendment in the Licence is to be initiated by contractor within 7 Working days of exceeding the number
of working Personnel.
Respective Area In charge / HOD shall inspect the Quality of Work executed by Contractor before submitting Bills, QC Approval
Signature must be taken by Contractor.
Contractor shall raise the Bills to M/S Aarti Industries Limited as per SOR (Standard Operating Rate) / Mutually agreed and Pre-
approved Rate only, Deviation shall be treated for Disciplinary action against Contractor.
1 M & below length of structural beam & channel is considered as wastage & scrap.
Packing plate upto 100 mm used for leveling & alignment is not considered in structure billing measurement.
Structure fab. must be done as QAP & WPS provided by Aarti and standard engineering practice must be followed by Vendor.
Welding consumables is in vendor scope & shall be ADOR/ ESAB/ D & H make.
Vendor has to give final reconcillation of material issued to contractor.
Structure shall be fabricated & tested as per Aarti Industries approved QAP & WPS.
Vendor to follow approved plate cutting diagram in order to restrict wastages.
Vendor to submit overall plan, monthly plan and DPR & manpower list on daily basis.
During Site activities, Requires safety supervisor of around 4-5 years of experiance per 40Nos Man heads.
Workshop must be sheded & rain protected for fabrication, blasting ,galvanizing & painting.
Scaffolding with approved scaffolding supervisor and approved scaffolding materilas and scaffolding team is in vendor scope if
require.
All consumables, tools & tackles, equipment's, chain pulley block, hydra with diesel (only for loading & unloading) & driver,
lifting tools, etc required for the job will be in contractor's scope. Only trailer or truck shall be used for transporting steel sections.
Site should be kept neat & clean everyday.
Contractor should follow all good engineering practices.
All statutory rules of govt/company are to be followed strictly.
Rates shall be inclusive of scaffolding required to complete work. Only metal scaffolding to be used. Scaffolding shall be as per
Client standards.
No sub contractor delegatioor allow for allowed jowb. If need required prior approval and validation From AIL team. In all above
case principle PO oesponsible for wner only sole responsible for Quality, Safety, Legal and Costing aspects. No additional any
direct or indirect support provided by AIL.
Slicing & joing of members will be only as per approved GA or by approval of AIL.
4 Project Site Safety Concept
Use of PPE:
Helmet, safety goggles and safety shoes is the PPE which will be mandatorily used inside the project premises.
Depending upon nature of work other PPE like, gloves, safety belt etc shall be used
All the safety belts used at the premises shall be full body harness with double ropes with shock absorbers.
The belts shall be inspected before use every day. the contractor shall also carry out weekly inspection of the belts and submit the
report to the Site in charge.
All the welder shall use welding face shield with helmet.
Every power tool and equipment shall be handled by the contractors with good condition leather gloves
All PPE shall be checked before use.
Damaged PPE shall be replaced immediately and properly disposed off
All the contractors supervisors and project engineers shall be responsible for the compliance with PPE at the Site
Electrical Safety
The supply of electricity to the project site shall be from the nearest MCC
Every floor and other work areas like Tank Farm, Unloading Shed, Warehouse shall have a main load Centre.
Several distribution boards shall be tapping power from the distribution board
The supply of power to the project site shall be adequately earthed (two groundings)
All the load centers and distribution boards shall have adequate bonding and grounding
Power tools and equipment shall be of solid make, adequately insulated, bonded and grounded
Power tools and equipment shall have three pin top with verifiable earthing facility
The pin tops shall carry the identification number of the tool or equipment written on it
All the power tools / equipments and load centers and distribution boards shall be certified by the authorized electrical engineer.
Every certified machine will carry a certificate endorsed by the electrical engineer having certified the machine and the next date
due
No machine which is not certified shall be allowed to be used inside the project premises.
Use shockproof electrical hand gloves while working on electrical panels.
Use of electrical work permit is mandatory for all electrical work.
The contractor shall have a trained electrician to handle power tools / equipment maintenance and load Centre / distribution
boards maintenance
Grounding and bonding continuity shall be checked on regular periodic basis.
Welding shall be done by authorized welders and as per the Site Procedure.
All Electrical appliance must be inspected and certified by AIL Electrical dept.before use at site.
Construction safety
Lifting machines and cranes shall be sourced from reputed parties
A thorough risk assessment and inspection of these cranes shall be done before they are allowed to work inside
The operator working on the cranes shall have required qualification, experience and skill
The cranes shall not be allowed to lift weight more than its SWL
Lifting tackles used at the premises shall be tested by competent person and in good condition.
To lifting tackle which is not supported by valid test certificate shall not be allowed.
Periodic inspection of all hydra / JCB’s used in the premises by mechanical engineer.
For Shifting for one place to another place any equipment/ equipment component or any item must be done by Farana ( Pick and
carry Hydra), Hydra Not allowed for such activity.
Lifting operation shall happen under the supervision of responsible person
The lifted load shall not be carried over the heads of persons working on the site
Scaffolds & Ladders
The ladders and scaffolds used at the site shall meet the standard , we allowed only metal pipe and clamps as per AIL policy.
Safety work permit is mandatory for scaffold construction.
Working on scaffolds and ladders shall be carried out under skilled / experienced supervisors.
Work at height
A person working at a height more than 1.5 meters shall be supported by a secured ladder or platform
A person working at more than 1.5 meters of height shall wear a full body harness which shall be tied above his head
The harness shall be of good make, in good condition and ISI marked
Wherever required use of life line and fall arrestors shall be made available.
Height work permit is mandatory for the work above 1.5 meters height.
Periodic inspection of all cranes used in the premises by mechanical engineer.
Hard barrication while working near excavated pits and on height during the building construction.
Height works shall be carried out under skilled / experienced supervisors.