Issued vide Govt. no.

8231/8275/04/19/nivida/B Raipur dated 31/10/05

APPENDIX 2.14 (See Paragraph 2.019)

FORM ‘B’
GOVERNMENT OF CHHATTISGARH
PANCHAYAT & RURAL DEVELOPMENT DEPARTMENT
(RURAL ENGINEERING SERVICE)
ITEM RATE TENDER AND CONTRACT FOR WORKS

Issued to Shri/M/s. …………………………………………………………………………

Class of Contractor. ..................Registration No................................Date.....................
Name of Work ………………………………………………………………………
Amount of Contract Rs. ………………………………………………………………………
Amount of E.M. Rs. ………………………………………………………………………
Cost of Tender Form Rs. ………………………………………………………………………
Vide M.R. No. & Date ………………………………………………………………………
Time allowed for Completion ……………………Months from the reckoned date including/Excluding
rainy season (16th June to 15th October)
Date of opening Tender ………………………………………………………………………

Division ………………………………………………………………………
Sub-Division ………………………………………………………………………

General Rules and Directions for the Guidance of Contractors

1. All works proposed for execution by contract will be notified in a form of invitation to tender posted in
public places and signed by the authority inviting the tenders.
This form will state the work to be carried out as well as the date for submitting and opening tenders
and the time allowed for carrying out the work, also the amount of the earnest money to be deposited
with the tender and the amount of security deposit to be deposited by the successful tenderer and the
percentage if any. to be deducted from bills. Copies of specifications, drawings and a
Schedule of quantities and rates of the various descriptions of work and any other documents required
in connection with the work, signed for the purpose of identification by the authority competent to
approve the tender shall also be open for inspection by the contractor at the office of the authority
inviting the tenders. during office hours.

2. In the event of the tender being submitted by a firm, it must be signed separately by each member
thereof, or in the event of the absence of any partner it must be signed on his behalf by a person
holding a power of attorney authorizing him to do so. Such power of attorney should be produced with
the tender and it must disclose whether the firm is duly registered under the Indian Partnership Act.

3. Any person who submits a tender shall fill up the usual printed form stating at what rate he is willing to
under take each item of work. Tenders which propose any alteration in the work specified in the said
form of invitation to tender or fn the time allowed for carrying out the work or which contain any other
conditions of any sort will be liable to rejection, unless there is specific provision in the conditions of the
Notice Inviting Tenders e.g in three cover system. No single tender shall include more than one work
but contractors who wish to tender for two or more works shall submit a separate tender for each.
Tender shall have the name and number of the work to which they refer, written outside the envelope.

4. The authority receiving tenders or his duly authorised assistant, will open tenders in the presence of
any attending contractors or his authorized representative, who may be present at the time and will
enter the amounts of the several tenders in a comparative statement in a suitable form. Receipts for

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 earnest money will be given to all tenderers except those tenders which are rejected and whose earnest
money is refunded on the day the tenders are opened.

5. The Officer competent to decide of the- tenders shall have the right of rejecting all or any of the tenders.
With out assigning any reason thereof.
6. The receipt of a clerk for any money paid by the contractor will not be considered as any
acknowledgement of payment to the Sub-Divisional/Divisional authority and the contractor shall be
responsible for seeing that he procures a receipt signed by that authority or any other person duly
authorised by him.
7. The memorandum of work tendered for, and the schedule of materials to be supplied by the Rural
Engineering Service, (P.&R.D.D.) and their issue rates shall be filled in and completed before the tender
form is issued. If a form is issued to an intending tenderer without having been so filled in and
completed, he shall request the office to have this done before he completes and delivers his tender.

TENDER FOR WORK

I/We hereby tender for the execution to the Governor of Chhattisgarh of the works specified by in the
under written memorandum within the time specified in such memorandum at the rates specified therein
and in accordance in all respect with the specifications, designs, drawings, and instructions in writing
referred to in rule I hereof and in clause 12 of the annexed conditions, and with such materials as are
provided for by and in all other respects in accordance with such conditions so for applicable.

MEMORANDUM
(a) Name of work …………………………………………………………………………………………………
(b) Probable amount of Contract Rs. ………………………………………………………………………………….
(c) Earnest money……………………………………………………………………………………………………….

(d) Security deposit (including earnest money) …………………………………………………………..

(e) Percentage if any to be deducted from bills ………………………………………………………..

(f ) Time allowed for the work …………… from the reckoned date including / excluding rainy season
( from 16th June to 15th October) (deleted which ever is not necessary).
=SCHEDULE OF ITEMS =

Sl. Reference Description Quantity Unit Rate Rate in Amount in

No. to Item of Item of in words per figures Remarks
No. of work figure unit
S.O.R. (If per
any) unit
1 2 3 4 5 6 7 8 9

3
etc.
Grand Total of column No. (8) = Rs. ……………………………………
(in figure and in words) ……………………………………………………….

(SEE DETAILS IN “SCHEDULE OF ITEMS” – ANNEXURE “E” enclosed

Should this tender be accepted I/we hereby agree to abide by and fulfill all terms and provisions of
the said conditions of the contract annexed hereto as far as applicable or in default, thereof to

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 forfeit & pay to the Governor of Chhattisgarh or his successors in office the sums of money
mentioned in the said condition. A separate sealed cover duly super scribed containing the sum of
Rs. ………………………………………………… as earnest money the full value of which is to
be absolutely forfeited to the said Governor or his successors in office without prejudice to any
other rights or remedies of the said Governor or his successors in office should I/we fail to
commence the work specified in the above memorandum or should I/we not deposit the full
amount of security deposit specified in the above memorandum, in accordance with clause 1 of the
said conditions of the contract, otherwise the said sum of Rs.
…………………………………………………… shall be retained by Government on account of
such security deposit as aforesaid or the full value of which shall be retained by Government on
account of the security deposit specified in clause 1 of the said conditions of the contract.

Signature of witness to Contractor’s Signature Signature of the Contractor before

submission of tender
Dated the day of Dated the day of
…………………………………200 …………………………….. 200

Address of the witness: ………………………………………………………………………

Occupation of the witness:……………………………………………………………………

The above tender is hereby accepted by me for and on behalf of the Governor of Chhattisgarh

Dated the …………………. 200 day of ………………… 200

……………………………………………..
(If several sub works are included, they should be detailed in a separate list.)

Signature of the Officer by whom accepted

(Designation with seal of office)

Conditions of Contract
Definition
1. The contract means the documents, forming the notice inviting tenders and tender documents
submitted by the tenderer and the acceptance thereof including the formal agreement executed
between the Government of Chhattisgarh and the contractor.

2. In the contract the following expressions shall, unless otherwise required by the context, have
the meanings hereby respectively assigned to them: -

(a) The expression “works” or “work” shall, unless thereby mean something either in the subject or
context repugnant to such construction, be construed and taken to mean the works or by virtue of
the contract contracted to be executed whether temporary or permanent and whether original,
altered, substituted or additional.

(b) The “site” shall mean the land and/or other places on, into or through which work is to be
executed under the contract or any adjacent land path or street through which work is to be
executed under the contract (or any adjacent land, path, or street which maybe allotted or used
for the purpose of carrying out the contract- subject to the condition that such adjacent land, path
or street are available and specially permitted to to be used to the contractor)

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(c) The “Governor” means Governor of Chhattisgarh and his successors in Office.

(d) The “Engineer-in-Charge”/”Divisional officer” means the Executive Engineer or the Sub-
Divisional Officer as the case may be who shall supervise and be in charge of the work and who
shall sign the contract on behalf of the Governor.

(e) “Government” shall mean the Government of Chhattisgarh.

(f) The term “Superintending Engineer” means superintending of the Circle for Civil works and
superintending Engineer(EIM) for electrical portion work, “Chief Engineer” means the Chief
Engineer of the zone and Engineer-In-Chief means the Engineer-In-Chief of Chhattisgarh R.E.S.

Note: - “Words” importing the singular number include plural number and vice-versa,

Clause 1 - SECURITY DEPOSIT -: The person whose tender may be accepted (hereinafter called
the contractor which expression shall unless excluded by or repugnant to the context
include his heirs executers, administrators representatives and assigns) shall permit
Government at the time of making any payments to him for the value of work done under
the contract to deduct the security deposit as under.
The Security Deposit to be taken for the due performance of the contract under the terms &
conditions printed on the tender form will be the earnest money plus a deduction of 5
percent from the payment made in the running bills, till the two together amount to 5
percent of the cost of work put to tender or 5(Five) percent of the cost of the works
executed when the same exceeds the cost of work put to tender

Clause 2 - COMPENSATION FOR DELAY -:

The time allowed for carrying out the work, as entered in the tender form, shall be strictly
observed by the contractor and shall be deemed to be the essence of the contract and shall be
reckoned from the fifteenth day after the date on which the order to commence the work is
issued to the contractor, for a work where completion is up to 6 months
For works, for which the completion period is beyond six months: -
The period will be reckoned from the thirtieth day after the date on which the order to
commence the work is issued to contractor .The work shall throughout the stipulated period
of contract be proceeded with all due diligence, keeping in view that time is the essence of
the contract.
The contractor shall be bound in all cases, in which the time allowed for any work exceeds
one month, to complete 1/8th of the whole work before 1/4th of the whole time allowed
under the contract has elapsed, 3/8th of the work before 1/2 of such time has elapsed and
3/4th of the work before 3/4th of such time has elapsed. In the event of the contractor
failing to comply with the above conditions, the Executive Engineer shall levy on the
contractor, as compensation an amount equal to: 0.5% (zero point five percent) of the value
of work (contract sum) for each week of delay, provided that the total amount of
compensation under this provision of the clause shall be limited to 6% (six percent) of the
value of work. (Contract sum)
Provided further that if the contractor fails to achieve 30% (thirty percent) progress in half
(1/2) of original or validly extended period of time (reference clause 5 below) the contract
shall stand terminated after due notice to the contractor and his contract finallised, with
earnest money and or security deposit forfeited and levy of further compensation at the rate
of 10% of the balance amount of contract left incomplete, either from the bill, and or from
available security/performance guarantee or shall be recovered as "Arrears of land
revenue".
The decision of the Superintending Engineer in the matter of grant of extension of time only
(reference clause 5 below) shall be final, binding and conclusive. But he has no right to
change either the rate of compensation or reduce and or condone the period of delay- once
such an order is passed by him (on each extension application of the contractor). It shall not
be open for a revision.
Where the Engineer-in-Charge decides that the contractor is liable to pay compensation for
not giving proportionate progress under this clause and the compensation is recommended

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 during the intermediate period, such compensation shall be kept in deposit and shall be
refunded if the contractor subsequently makes up the progress for the lost time, within the
period of contract including extension granted, if any. failing which the compensation
amount shall be forfeited in favour of the Government

Clause 3 -: Action when the work is left incomplete abandoned or delayed beyond the time limit
permitted by the Executive Engineer: -

(i) The Executive Engineer may terminate the contract if the contractor causes a fundamental breach
of the contract.

(ii) Fundamental breach of contract shall include, but not be limited to, the following: -

(a) The contractor stops work for four weeks, when no stoppage of work is shown on the current
programme or the stoppage has not been authorised by the Executive Engineer.
(b) The Executive Engineer gives notice that failure to correct a particular defect is a
fundamental breach of contract and the contractor fails to correct it within reasonable period
of time determined by the Executive Engineer in the said notice.
(c) The contractor has delayed the completion of work by the number of weeks [12 (Twelve)
weeks] for which the maximum amount of compensation of 6% of contract sum is exhausted.
(d) If the contractor has not completed at least thirty percent of the value of construction work
required to be completed in half of the completion period (Including validly extended period
if any).
(e) If the contractor fails to appoint the technical staff and if appointed do not function properly
for 4 weeks even after due written notice by the Executive Engineer.
(f) If he violates labour laws.
(g) If the contractor fails to setup field laboratory with appropriate equipments with in 30 days
from the reckoned date (*applicable for each contract valued more than rupees 3 crores.)
(h) Any other deficiency which goes to the root of the contract Performance

(iii) 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.

(iv) The Executive Engineer shall cause recording and checking of measurements of all items of
work done (taking in to account quality and quantity of items actually executed) and prepare the
final bill after adjusting all pervious outstanding dues. Such recording of measurements shall be
done after due notice regarding time and date of recording measurement and directing the
contractor to either remain present himself or his authorised representative so as to satisfy
himself that the recording of measurement is just and proper. Failure on his parts either to attend
and or refusing to acknowledge the measurement so recorded in the department measurement
book, shall be at his sole risk and responsibility.

(v) In addition to the provision contained in clause 2 above the Executive Engineer shall forfeit the
earnest money and or security deposit and recover/deduct/adjust a compensation of 10% (ten
percent) of the balance value of work left in complete either from the bill, and or from available
security/performance guarantee or shall be recovered as "Arrears of land revenue"

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 Power to take possession of or require removal of Materials Tools and Plants or sale of
Contractor’s Plants etc.: -

Clause 4: In any case in which any of the powers, conferred upon the Executive Engineer by clause -
3 hereof shall have become exercisable and the same shall not be exercised, the non-
exercise thereof shall not constitute a waiver of any of the conditions hereof and such
powers shall notwithstanding be exercisable in the event of any future case of default by
the contractor for which by any clause or clauses hereof he is declared liable to pay
compensation shall remain unaffected. In the event of the Executive Engineer putting in
force either of the power clause 3 vested in him under the preceding clause he may, if he
so desires, take possession of all or any tools, plant materials, and stores in or upon the
works, or the site thereof or belonging to the contractor or procured by him and intended to
be used for the execution of the work or any part thereof paying or allowing for the same in
account at the contract rates, or in case of these not being applicable, at current market
rates to be certified by Executive Engineer, whose certificate thereof shall be final;
otherwise the Executive Engineer may by notice in writing to the contractor or his clerk of
the works foreman or authorised agent require him to remove such tools plant, materials
or stores from the premises (within a time to be specified in such notice) and in the event
of the contractor failing to comply with any such requisition, the Executive Engineer may
remove them at the contractors expense sell them by auction or private sale on account of
the contractor & at his risk in all respects and the certificate of the Executive Engineer as
to the expense of any such removal and the amount of the proceeds and expense of any
such sale shall be final and conclusive against the contractor.

EXTENSION OF TIME:
Clause 5

5.1 - If the contractor shall desire an extension of time for completion of work on the ground of
his having been "UNAVOIDABLY" hindered or on compensation events or on any other
ground(s), he must apply giving all and complete details of such hindrance(s) or
Compensation Events and or other cause(s) in writing, to the Executive Engineer
positively within 15 days of occurrence of such hindrance(s) Compensation events other
causes and seek specific extension of time (period
from…………….to……………….. ). If in the opinion of Executive Engineer, such
reasonable grounds are shown, the Executive Engineer shall himself grant extension of
time, if the extension of time sought by the contractor is for one month or 10% (ten
percent) of the stipulated period of completion, whichever is more. If the extension of time
sought is more than above period mentioned, then the Executive Engineer shall refer the
case to the Superintending Engineer with his recommendation and only after his decision in
this regard, the Executive Engineer shall sanction extension of such time as decided by the
Superintending Engineer.
Once the Executive Engineer/Superintending Engineer has decided the case of extension of time
with reference to the particular application of the contractor, it will not be competent for them to
review/change such a decision later on. However, the Superintending Engineer and the Executive
Engineer shall give the contractor an opportunity to be heard (orally and or in writing), before taking
any final decision either of granting extension of time or permitting the contractor to complete the
work by the delayed date (under clause 2 of the contact) or before refusing both.
Provided further where the Executive Engineer has recommended grant of extension of
particular time under clause 5.1 of the contract or has refused to recommend extension of
time but has recommended permitting the contractor for delayed completion, (clause 2)
the contractor shall continue with the work till the final decision by Executive
Engineer/Superintending Engineer.
Failure on the part of the contractor for not applying extension of time even within 30 days
of the cause of such an hindrance, it shall be deemed that the contractor does not desire
extension of time and that he has "Waived" his right if any, to claim extension of time.
Once the Executive Engineer /Superintending Engineer has heard (oral and or in writing)

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 the contractor on this subject matter of extension of time and if Executive
Engineer/Superintending Engineer fails to communicate his decision within a period of 30
days of such hearing, it shall be deemed that the contractor has been granted extension of
time for the period as applied by him.

5.2 Compensation Events :-

The following mutually agreed Compensation Events unless they are caused by the contractor
would be applicable;
(a) The Executive Engineer does not give access to a part of the site
(b) The Executive Engineer modifies the schedule of other contractor in a way, which
affects the work of the contractor under the contract.
(c) The Executive Engineer orders a delay or does
not issue drawings, specification or instructions /decisions/approval required for execution of
works on time.
(d) The Executive Engineer instructs the contractor to uncover or to carry out additional
tests upon work, which is then found to have no defects.

(e) The Executive Engineer gives an instruction for additional work required for safety or
other reasons.
(f) The advance payment and or payment of running bills (complete in all respect ) are
delayed.
(g) The Executive Engineer unreasonably delays issuing a Certificate of Completion
(h) Other compensation events mentioned in contract if any

Note: - The contractor has to give an undertaking in writing that he has "WAIVED" all his RIGHT to
claim/demand extension of time
FINAL CERTIFICATE
Clause 6 - On completion of the work the contractor shall be furnished with a certificate by the Sub –
Divisional Officer / Executive Engineer (hereinafter called the Engineer-in-charge) of such
completion in the form appended at the end, but no such certificate shall be given, nor shall
the work be considered to be complete until the contractor shall have removed from the
premises on which the works shall be executed, all scaffolding surplus materials and
rubbish, and cleaned off the dirt from all wood-work, doors windows walls, floors or other
parts of any building in upon or about which the work is to be executed or of which he may
have had possession for the purpose of the execution there of nor until the work; shall have
been measured by the Engineer-in-charge whose measurements shall be binding and
conclusive against the contractor. If the contractor shall fail to comply with the requirements
of this clause as to removal of scaffolding surplus materials and rubbish and cleaning of dirt
on or before the date fixed for the completion of the work, the Engineer-in-charge may, at
the expense of the contractor remove such scaffolding, surplus materials and rubbish and
dispose of the same as he thinks fit and clean off such dirt as aforesaid and the contractor
shall forthwith pay the amount of all expenses so incurred, and shall have no claim in
respect of any such scaffolding or surplus materials as aforesaid, except for any sum
actually realised by the sale thereof.

PAYMENT ON INTERMEDIATE CERTIFICATE TO BE REGARDED AS ADVANCES:

Clause 7 - No payments shall ordinarily be made for work estimated to cost less then Rs. 1,000/- (Rs.
One Thousand) till after the whole of the works shall have been completed and certificate of
completion given but if intermediate payment during the course of execution of works is
considered desirable in the interest of works, the contractor may be paid at the discretion of
the Engineer -in -charge But in the case of works estimated to cost more then rupees one

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 thousand, the contractor shall on submitting the bill therefore be entitled to receive a
monthly payment proportionate to the part thereof then approved and passed by the
Engineer - in -charge whose certificate of such approval and passing of the sum so payable
shall be final and conclusive against the contractor. But all such intermediate payments
shall be regarded as payments by way of advance against the final payment for works
actually done and completed and shall not preclude the requiring of bad unsound and
imperfect or unskillful work to be removed and taken away and reconstructed or erected or
be considered as an admission of the due performance of the contract or any such part
thereof, in any respect, or the accruing of any claim, nor shall it conclude determine, or
affect in any way the powers of the Engineer -in-charge under these conditions or any of
them as to the final settlement and adjustment of the accounts or otherwise or in any other
way vary or affect the contract. The final bill shall be submitted by the contractor within one
month of the date fixed for completion of the work, otherwise the Engineer -in-charge’s
certificate of the measurement and of the total amount payable for work accordingly shall
be final and binding on all parties.

Bills to be submitted monthly:

Clause 8 -
"A bill shall be submitted by the contractor by 15th day of each month for all works executed
by him till the end of previous month less the gross amount received by him till the last
previous month. This bill must be supported by records of detail measurement of quantities of
all executed items of work along with true copies of record and result of all tests conducted in
the previous month (date wise). The Executive Engineer shall take or cause to be taken the
requisite measurement for purpose of having the same verified/checked by the sub Engineer
and sub Executive Engineer concern for quantity, quality and specification and examining all
the "test results" and record the same in the Departmental measurement, book. Based on
above record measurement bill shall be corrected /prepared afresh. The contractor shall sign
the measurement and the bill. by 25 th day of the month subject to availability of the funds
If the contractor fails to submit, the bill on or before the day prescribed, the Executive
Engineer after waiting for another 15 days shall depute a subordinate to measure the said work
in the presence of contractor and or his authorized Engineer/Representative, whose counter
signature to the measurement recorded with quantity and quality remark will be sufficient
proof for acceptance of the same and shall be binding on the contractor.
All such running bill payments are by way of "Advances" and shall be subject to final
adjustment.

BILLS TO BE ON PRINTED FORMS:

Clause 9 -The contractor shall submit all bills on printed forms to be had on application at the office
of the Engineer – in – charge, and the charges in the bills shall always be entered at the
rates specified in the tender or in the case of any extra work ordered in pursuance of these
conditions, and not mentioned or provided for in the tender at the rates hereinafter provided
for such work.

The deduction or addition as the case may be of the percentage will be calculated on the
amount of the bill for the work done, after deducting the cost of materials supplied
departmentally at rates specified in the agreement.
RECEIPTS TO BE SIGNED BY PARTNERS OF PERSONS HAVING AUTHORITY TO DO SO:

Clause 10 - Receipts for payments made on account of a work when executed by a firm must also be
signed by the several partners, except where the contractors are described in their tender
as a firm in which case the receipt must be signed in the name of-the firm by one of the
partners, or by some other person having authority to give effectual receipt for the firm.

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ADVANCES TO CONTRACTORS:
Clause 11(A)
The provision for advances in clause 11 A( i ) and ( ii ) will apply to contract above Rs.
one crore only
(i) Mobilization advance: - Mobilization advance up to 5 % (Five percent) of the contract value
shall be given if requested by the contractor with in one month of the date of order to
commence the work. In such a case the contractor shall furnish Bank Guarantee from
schedule bank for the equal amount in favour of the Executive Engineer before sanction and
release of the advance. This advance shall be Interest free. This 5% (Five percent) advance
shall be given in the two stages
Stage -1: - 2%(Two percent) of the contract value payable after signing of the agreement
Stage-2: - 3%(Three percent) of the contract value payable on receipt of the certificate from
the contractor that he has established complete central and field testing laboratories and has
engaged workers/technicians and have brought requisite plants and machineries at work site,
the work is physically started and only after construction programme is submitted by the
contractor and is duly approved by the Executive Engineer.
Executive Engineer shall sanction the mobilization advance
(ii) Advance on plant and machinery: -
Advance up to 5%(five percent) of the contract value shall be given, if requested by the
contractor, only for the new plant and machineries required for the work and brought to the
site by the contractor .In such a case the contractor shall furnish Bank Guarantee from
schedule bank for the equal amount in favour of the Executive Engineer before sanction and
release of the advance. The advance shall be limited to 90% (ninety percent) of the price of
such new plant and machineries. This advance shall be interest free.
This 5% (Five percent) advance shall be given in the two stages
Stage -1: - 2%(Two percent) of the contract value after plant and machinery has arrived at
the site
Stage-2: - 3%(Three percent) of the contract value payable after installation of such plant &
machinery etc.
This advance shall be made against hypothecation of plants and machineries in favour of
the Executive Engineer in charge

Sanctioning authority for the this advance shall be Superintending Engineer

(a) The contractor shall not remove these plants and machineries from the work site
without prior written permission from the Executive Engineer
(b) The contractor shall submit an affidavit along with the application that he has not
received or applied for advance against plant and machineries for which the advance
is applied, in any other agreement / office/institution
(c) the contractor shall indemnify the Govt. of Chhattisgarh regarding any claims or
damages or compensation on any account whatsoever. Payment of all such claims
damages compensation etc. shall be the sole liability of the contractor.
(D) Superintending Engineer shall sanction Plant and Machinery
(iii) Recovery of advances: - DELETED

Recovery of above advances (mobilization, plant and machineries) will start when
15(fifteen)% of the work is executed and recovery of total advance should be completed by
the time 80(eighty) % of the original contract work is executed or when 75% (seventy five
percent) of stipulated or validly extended period is over; whichever is earlier.

Clause 11-(B) - Advances to contractor are as a rule prohibited, and every endeavor should be made
to maintain a system, under which no payments are made except for work actually done.
Exceptions are, however permitted in the following cases: -
Cases in which a contractor whose contract is for finished work, requires an advance on the
security of materials brought to sites, Executive Engineer may in such cases sanction
advances up to an amount not exceeding 75% of the value of material but 90% in the case of

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 steel (as assessed by the Executive Engineer) provided that the rate allowed in no case is
more than the rate payable for the finished item as stipulated in the contract of such
materials, provided that they are of imperishable nature and that a formal agreement is
drawn up with the contractor under which Government secures a lien on the materials and is
safeguarded against losses due to the contractor postponing
the execution of the work or to the shortage or misuse of the materials, and against the
expense entitled for their proper watch and safe custody.

Payment of such advances should be made only on the certificate of an officer not below the
rank of Sub-Divisional Officer, that the quantities of materials upon which the advances are
made have actually been brought to site, that the contractor has not previously received any
advance on that security and that all the materials are required by the contractor for use on
items of work for which rates for finished work have been agreed upon. Recoveries of
advances so made should not be postponed until the whole of the work entrusted to the
contractor is completed. They should be made from his bills for work done as the materials
are used the necessary deductions being made whenever the item of work in which they are
used are billed for.

Before granting the above-secured advance the contractor shall sign the prescribed Indenture
Bond in the prescribed form.

Escalation
CLAUSE 11 C
Reimbursement /Refund on Variation in Prices of Materials / P. O. L. and Labour Wages
Price Adjustment: -
(A) Contract price shall be adjusted for increase or decrease in rates and price of
labour, materials, POL, in accordance with the following principles and
procedure and as per formula given below.

Note: - Price adjustment shall be applicable from reckoned date and upto validly
extended period under clause 5.1 above but shall not apply to the period when,
work is carried out under clause 2 above.
(B) The price adjustment shall be determined during each month from the formula
given in the hereunder.
(C) Following expressions and meanings are assigned to the work done during each
month:
To the extent that full compensation for any rise or fall in costs to the
contractor is not covered by the provisions of this or other clauses in the
contract, the unit rates and prices included in the contract shall be deemed to
include amounts to cover the contingency of such other rise or fall in costs.

The formula (e) for adjustment of prices are: -

R= Total value of work done during the month. It would include the amount of secured
advance granted, if any, during the month, less the amount of secured advance
recovered, if any during the month. It will exclude value for works executed under
variations for which price adjustment will be worked separately based on the terms mutually
agreed.

F:\Tender Document on NIC\Form B.doc - 10 -

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

VL = 0.85 x P1/100 x R x (Li –L0)/L0

VL = increase or decrease in the cost of work during the month under consideration
due to changes in rates for local labour.
L0 = the consumer price index for industrial workers at the town nearest to
the site or work as published by Labour Bureau, Ministry of Labour, Govt. of
India. on the date of inviting tender
Li = The consumer price index for industrial workers at the town nearest to the site of
work for the month under consideration as published by Labour Bureau, Ministry of
Labour, Government of India.
P1 = Percentage of labour component of the work.
Adjustment for cement component
(ii) Price adjustment for increase or decrease in the cost of cement procured by the
contractor
shall be paid in accordance with the following formula;
Vc = 0.85 x Pc/100 x R x (Ci –C0)/C0
Vc = increase or decrease in the cost of work during the month under
consideration due to changes in rates for cement
C0 = The all India wholesale price index for cement as published by the Ministry of
Industrial Development, Government of India, New Delhi.
on the date of inviting tender
Ci = The all India average wholesale price index for cement for the month
under consideration as published by Ministry of Industrial Development, Govt.
of India, New Delhi.
PC = Percentage of cement component of the work.
Adjustment for steel component
(iii) Price adjustment for increase or decrease in the cost of steel procured by the
Contractor shall be paid in accordance with the following formula;
Vs = 0.85 x Ps/100 x R x (Si – S0)/S0
Vs = increase or decrease in the cost of work during the month under
consideration due to changes in the rates for steel.
S0 = The all India wholesale price index for steel (Bar and Rods) as published by the

F:\Tender Document on NIC\Form B.doc - 11 -

 Ministry of Industrial Development, Government of India, New Delhi. on the
date of inviting tender
Si = The all India average wholesale price index for steel (Bar and Roads)
for the month under consideration as published by Ministry of Industrial
Development, New Delhi.
Ps = Percentage of steel component of the work.
Note:- for the application of this clause, index of Bars and Rods has been to
represent steel group.
Adjustment of bitumen component
(iv) Price adjustment for increase or decrease in the cost of bitumen shall
be paid in accordance with the following formula;
VL = 0.85 x Pb/1 00 x R X (Bi –B0) /B0
Vb = Increase or decrease in the cost of work during the month under
consideration due to changes in rates for bitumen.
B0 = The official retail price of bitumen at the IOC depot at nearest centre
on the date of inviting tender.
Bi = The official retail price of bitumen of IOC depot at nearest center for
the 15th day of the month under consideration.
Pb = Percentage of bitumen component of the work.

Adjustment of POL (fuel and lubricant) component

(v) Price adjustment for increase or decrease in cost of POL (fuel and lubricant)
shall be paid in accordance with the following formula;
Vf = 0.85 x Pf/100 x R x (Fi – F0)/F0
Vf = Increase or decrease in the cost or work during the month under
consideration due to changes in rates for fuel and lubricants.
F0 = The official price of High Speed Diesel (HSD) at the existing
consumer Diesel pumps out let at nearest center on the date of inviting tender
Fi = The official retail price of HSD at the existing consumer pumps of
IOC at nearest center for the 15th day of month under consideration.
Pf = Percentage of fuel and lubricants component of the work.

Note: - For the application of this clause, the price of High speed Diesel
Oil has been chosen to represent fuel and lubricants group.

Adjustment of Other Materials Component

(vii) Price adjustment for increase or decrease in cost of local materials other than
Cement, steel, Bitumen and POL procured by the contractor shall lay in accordance
with the following formula;
Vm = 0.85 x Pm /100 X R x (Mi – M0)/M0
Vm = Increase or decrease in the cost of work during the month under
consideration due to changes in rates for local materials other than cement, steel,
bitumen and POL.
M0 = The all India wholesale price index (all commodities) as published by the
Ministry of Industrial Development, Govt. of India, New Delhi. on the date of
inviting tender
Mi = The all India Wholesale price index (all commodities) for the month
under consideration as published by Ministry of Industrial Development, Govt.
of India, New Delhi.

F:\Tender Document on NIC\Form B.doc - 12 -

Pm = Percentage of local material component (Other than cement, steel,
bitumen and POL) of the work.

The following percentages will govern the price adjustment for the entire contract:
Sl. Components For road For Building For bridge
No.
1 Lbour- P1 25% 35% 30%
2 Cement – Pc 5% 10% 25%
3 Steel – Ps 5% 10% 25%
4 Bitumen – Pb 10% - -
5 POL – Pf 10% 10% 10%
6 Other materials - Pm 45% 35% 10%
Total: - 100% 100% 100%
Note :-If in the execution of contract for Road works use of certain material(s) is/are
not involved (Viz cement, steel, Bitumen etc.), then the percentage of other material-
Pm shall be increased to that extent
Example: - Say in a contract of roadwork steel is not required (Ps-5%). Pm shall
become 45%+5%=50%
Or
Say cement & steel not required then Pm shall become 45%+5%+5%=55% and so on
Work to be executed in Accordance with Specification, Drawing, Order, etc.:

Clause 12: The contractor shall execute the whole and every part of work in the most substantial and
workman like manner, and both as regards materials and otherwise in every respect in strict
accordance with the specifications. The contractor shall also conform exactly fully and
faithfully to the designs, drawings and instructions in writing relating to the work signed by the
Engineer – in – charge and lodged in his office and to which the contractor shall be entitled to
have access at such office or on the site of the work for the purpose of inspection during
office hours and the contractor shall if he so requires be entitled at his own expense to take
or cause to be made copies of the specifications, and of all such designs, drawings and
instructions as aforesaid.
MORTH/IRC specifications for road and bridges, specifications for rural roads and other
I.R.C. publications and their manual, latest CPWD specifications/I.S.I. codes for buildings or
special specifications whenever enclosed separately shall apply in the case of any variance
the following order of precedence shall prevail: -
1. Specifications as per NIT.
2. Specifications as per S.O.R.
3 MORTH/IRC specifications for road and bridges, specifications for rural roads and other
I.R.C. Publications and their manual, latest CPWD specifications/I.S.I. codes for buildings
or special specifications whenever enclosed separately
4 Mode of measurements for building shall be as provided in the S.O.R. applicable to
the contract. Where such mode of measurement is not specified in the S.O.R. it shall be
done as per l.S.l. Code of building measurement. However if any mode of measurement is
specifically mentioned in the N.l.T. the same will get precedence over all the above.
Clause 12 -A: In respect of all bearings, hinges or similar part intended for use in the superstructure
of any bridge, the contractor shall, whenever required, in the course of manufacture, arrange
and afford all facilities for the purpose of inspection and test of all or any of the part and the
material used therein to any officer of the Directorate of inspection of the Ministry of works
production and supply of the Government of India and such bearings, hinges or similar parts
shall not be used in the superstructure of any bridge except on production of a certificate of
acceptance thereof from the Directorate of inspection . All inspection charges will be payable
by the contractors. (This clause may be struck off if the tender is not for bridgework).

F:\Tender Document on NIC\Form B.doc - 13 -

Variations

Clause 13 –the Engineer –In- Charge shall have Power –BUT WITHEN THE SCOPE OF
TENDERED WORK (Tendered for ) to make any alteration in omissions from addition to or
substitution or the original specification drawing design, instructions that may appear to him
to be necessary or advisable during the the progress of the work and the contractor shall be
bound to carry out the work in accordance with any instructions which may be given to him
signed by the Engineer-In-Charge and such alternations omissions, additions or
substitutions shall not invalidate the contract and any altered, additional or substituted work
which the contracter may be directed to do in the manner above specified as part of the
work shall be carried out by the contractore on the same conditions in all respects on which
he agreed to do the main work ; subject to the following proviso-

RATES FOR ITEMS OF CONTRACT INVOLVING INCREASES IN QUANTITY DURING EXECUTION AND RATE
FOR ITEMS NOT PROVIDING NOT PROVIDING IN CONTRACT :- (REFRENCE ANEXURE “E”(
SCHEDULE OF QUANTITIES)

The rates for such additional, altered or substituted work shall be worked out in accordance with the
following provisions;

(A) Rates for items of contract involving increase in the quantity during execution

(a) In the case of such item (s) for which the actual quantities exceed the quantity quantities
shown in Annexure E of the tender document by more than 10%the quantity in excess of 10%
will be paid at the essential rate of the items on the date of invitation of tender plus or minus
the overall percentage of accepted tender above or below as the case may be the total cost of
work as per Annexure E at the estimated rates.
(b) Rates for altered and substituted items :-
If the rates for altered or substituted works are not specifically provided in the contract, the
rates will be derived from the rates of similar type and class of works as are specified in the
contract for the work. Such rates shall be derived and determined by him Superintending
Engineer.
(B) rates of Extra items:-

the rates for such items which can not be determined as per clause (a) and (b) of “A” above
shall be worked out from rates of similar items in the departmental scheduled of rates in force
on the dtae of invitation of tender after adding of subtracting the overall percentage of
accepted tender above or below as the case may be to the total cost of work as per Annexure
E at the estimated rates .such rates shall be determined by the Superintending Engineer .
( C) Rates for such items which can not be determined in the above manner (A and B) shall be
determined by the Superintending Engineer on the basis of prevailing markets rates to
including prime cost of material and labour charges ( inclusive) of hourly use rates of
machinery and equipment as determined by the department ; plus 25% extra to cover the
sundries, overhead charges and profit etc. of the contractor.

Note-1 There shall be no change in the accepted rate of any item ,if the quantity of that item is less
than the quantity mentioned in the “Bill of Quantity “ (Annexure-E)
Note -2
(a) Executive Engineer shall have powers to permit execution of and payment of additional
quantities to the extent of ten percent of the quantities provided in the schedule of individual
items as per Annexure –E
(b) Prior Section in writing of the Superintending Engineer shall be necessary for execution and
payment for additional quantities more than ten percent but up to 25 % of individual items, in
case work for which technical section has been accorded by S.E.or E.E. .
(c) Prior Section in writing of the Superintending Engineer shall be necessary for execution and
payment for additional quantities more than ten percent but up to 25 % of individual items, in
case work for which technical section has been accorded by the Chief Engineer.

F:\Tender Document on NIC\Form B.doc - 14 -

 (d) Executive Engineer shall have no powers to determine the rates for extra items.
Superintending Engineer shall have powers to determines the rates for extra item where are
required to be determined subject to the condition that total amount of work in respect to such
extra items shall not exceed 10% of the amount of tender as sectioned by the competent
authority.
(e) Chief Engineer shall have powers of determining rates of extra items when rates are
required to be determine subject to the condition that the total amount of work in respect of
such extra items shall exceed 30% of the amount of tender as sectioned by the competent
authority.
Note-3 In no circumstances the contractor shall suspend the work on the plea of non-settlement of
rates of items falling under this clause.
Note-4 Due to all above addition , alternation variation ,extra items the total value of contract shall be
limited up to 10% increase of the amount of administrative of approval .Any increase beyond
this 10 % of total value shall require “ PRIOR Revised Administrative Approval” from the govt.
Note-5 Govt shall have full powers.

NO CLAIM TO ANY PAYMENT OR COMPENSATION FOR ALTERATION IN OR

RESTRICTION OF WORKS:

Clause 14 - If at any time after the execution of the contract documents, the Engineer – in – charge
shall for any reason whatsoever require the whole or any part of the work as specified in the
tender to be stopped for any period or shall not require the whole or part of the work to be
carried out at all or to be carried out by the contractor he shall give notice in writing of the
fact to the contractor who shall there upon suspend or stop the work totally or partially, as
the case may be.
If any such case, except as provided hereunder, the contractor shall have no claim to any
payment or compensation what so ever on account of any profit or advantage which he
might have derived from the execution of the work in full, but which he did not so derive in
consequence of the full amount of the work not having been carried out, or on account of
any loss that he may be put to on account of materials purchased or for unemployment of
labour recruited by him. He shall not also have any claim for compensation by reason of any
alteration having been made in the original specifications, drawing, designs and instructions,
which may involve any curtailment of the work as originally contemplated. Where, however,
materials have already been purchased or agreed to be purchased by the contractor shall
be paid for such materials at the rates determined by the Engineer-in-charge, provided they
are not in excess of requirement and of approved quality and / or shall be compensated for
the loss, if any that he may be put to, in respect of materials agreed to be purchased by him,
the amount of such compensation to be determined by the Engineer-in-charge whose
decision shall be final. If the contractor suffers any loss on account of his having to pay
labour charges during the period during which the stoppage of work has been ordered under
this clause, the contractor shall, on application be entitled to such compensation on account
of labour charges as the Engineer – in - charge, whose decision shall be final, may consider
reasonable provided that the contractor shall not be entitled to any compensation on
account of labour charges, if in the opinion of the Engineer – in – charge, the labour could
have been employed by the contractor else where for the whole or part of the period during
which the stoppage of the work has been ordered as aforesaid.

If the total duration of suspension of the work is more than the six months, then this
suspension of the work will be considered as permanent stoppage of the work, and the
contractor can determine the contract, if he so desires.

ACTION AND COMPENSATION PAYABLE IN CASE OF BAD WORK:

Clause 15 - If at any time before the security deposit is refunded to the contractor, it shall appear to
the Engineer – in – charge or his subordinate in charge of the work, that any work has been
executed with unsound, imperfect or unskillful workmanship or with material of inferior
quality or that any materials or articles provided by him for the execution of the work are

F:\Tender Document on NIC\Form B.doc - 15 -

 unsound, or of a quality inferior to that contracted for, or are otherwise not in accordance
with the contract, it shall be lawful for the Engineer – in – charge to intimate this fact in
writing to the contractor and then notwithstanding the fact that the work, materials or articles
complained of may have been Inadvertently passed, certified and paid for contractor shall
be bound forthwith to rectify, or remove and reconstruct the work so specified in whole or in
part, as the case may require, or if so required, shall remove the materials or articles so
specified and provide other proper and suitable materials or articles at his own proper
charge and cost, and in the event of his failing to do so with in a period to be specified by
the Engineer – in – charge in the written intimation aforesaid ,the contractor shall be liable to
pay compensation at the rate of one percent on the amount of contract put to tender every
day not exceeding ten days, during which the failure so, continues and in the case of any
such failure the Engineer – in – charge may rectify or remove and, re-execute the work or
remove and replace the materials or articles complained of as the case may be at the risk
and expense in all respects of the contractor. Should the Engineer-in-charge consider that
any such inferior work or materials as described above may be accepted or made use of it
shall be within his discretion to accept to the same at such reduced rates as he may fix
therefore

WORK TO BE OPEN FOR INSPECTION-CONTRACTOR OR RESPONSIBLE AGENT

TO BE PRESENT:

Clause 16-All work under or in course of execution or executed in pursuance of the contract shall at
all time be open to the inspection and supervision of the Engineer-in-Charge and his
subordinates and the contractor shall at all time during the usual working hours, and at all
other times at which reasonable notice of the intention of the Engineer-in-charge or his
subordinate to visit the work shall have been given to the contractor, either himself be
present to receive orders and instruction or have a responsible agent duly accredited in
writing present for that purpose. Orders given to the contractor’s agent shall be
considered to have the same force as if they had been given to the contractor himself.

NOTICE TO BE GIVEN BEFORE WORK IS COVERED UP:

Clause 17 - The contractor shall give not less than five days notice in writing to the Engineer – in –
charge or his subordinate in charge of the work before covering tip or otherwise placing
beyond the reach of measurement any work in order that the same may be measured,
and correct dimensions thereof be taken before the same is so covered up or placed
beyond the reach of measurement, any work without the consent in writing of the
Engineer-in charge or his subordinate in charge of the work and if any work shall be
covered up or placed beyond the reach of measurement with out such notice having been
given or consent obtained, the same shall be uncovered at the contractors expenses, or
in default thereof, no payment or allowance shall be made for such work or the materials
with which the same was executed.

CONTRACTOR LIABLE FOR DAMAGE DONE AND FOR IMPERFECTIONS AFTER

CERTIFICATE OF COMPLETION

Clause18- If the contractor or his work people or servants shall break, deface injure or destroy any
part of building in which they may be working or any building, road, road curbs, fences,
enclosures, water pipes, cables drains, electric or telephone posts or Wires trees grass or
grassland or cultivated ground continuous to the premises on which the work or any part
of it is being executed, or if any damage shall happen to the work while in progress, from
any cause whatever, or any imperfections become apparent ,the contractor shall make
good the same at his own expense or in default, the Engineer – in – charge may cause
the same to be made good by other workmen and deduct the expense of which certificate
of the Engineer-in-charge shall be final) from any sums that may be then or at any time
thereafter, may become due to the contractor or from his security deposits, or the
proceeds of sale thereof or of a sufficient portion thereof.
The security deposit of the contractor to the extent of 50% shall be refunded on his
getting the completion certificate, provided that all the recoveries outstanding against him

F:\Tender Document on NIC\Form B.doc - 16 -

 are realised. Balance 50% of the amount shall be refunded after four months of
completion of work or final bill paid which ever is earlier

CONTRACTOR TO SUPPLY PLANT, LADDERS, SCAFFOLDING, ETC.:

Clause 19 - The contractor shall supply at his own cost materials (except such special materials if
any, as may in accordance with the contractor be supplied from the Engineer – in –
charge’s Stores) plants, tool, appliances, implements, ladders, cordage, tackle,
Scaffolding and temporary work requisite for the proper execution the work whether
original, or altered or substituted, and whether included in the specification or other
documents forming part of the contractor referred to in these condition or not or which
may be necessary for the purpose of satisfying or complying with the requirement of the
Engineer – in – charge as to any matter as to which under these conditions he is entitled
to be satisfied, or which he is entitled to require together with carriage there for to and
from the work . The contractor shall also supply without charge requisite number of
persons with the means and materials necessary for the purpose of setting out works,
and counting, weighing& assisting in the measurement or examination at any time and
from time to time of the work, or materials. Failing his so doing the same may be provided
by the Engineer -in charge at the expenses of the contractor and the expenses may be
deducted from any money due to the contractor under the contract, or from his security
deposit or the proceeds of sale thereof, or of a sufficient portion thereof.
Contractor is liable for damages arising from non-provision of lights fencing etc.
The contractor shall also provide at his own cost except when the contract specifically
provides otherwise and except for payments due under clause all necessary fencing and
lights required to protect the public from accident and shall be bound to bear the
expenses of defence of every suit, action or proceedings at law that may be brought by
any person for injury sustained owing to neglect of the above precautions & to pay any
damage and costs which may be awarded in any such suit, action or proceedings to any
such person or which may with the consent of the contractor be paid to compromise any
claim by any such person.

COMPENSATION UNDER SECTION 12 SUB-SECTION (1) OF THE WORKMAN’S

COMPENSATION ACT 1923:
Clause 20 - ln every case in which by virtue of the provisions of section 12 sub-section (1) of the
workman’s compensation Act 1923 Government is obliged to pay compensation to a
workman employed by the contractor in execution of the works, Government will recover
from the contractor the amount of compensation so paid and without prejudice to the
rights of Government under section (1) sub-section (2) of the said Act. Government shall
be at liberty to recover the amount or any part there of by deducting it from the security
deposit or from any sum due by Government to the contractor whether under this contract
or otherwise. Government may not be bound to contest any claim made against them
under section - 12 sub-section (1) of the said Act except on the written request of the
contractor and upon his giving to Government full security for all cases for which
Government might become liable in consequence contesting such claim.

LABOUR:
Clause 21 - The contractor should get himself registered under contract - labour regulations and
abolition Act 1970 including its amendments after getting a certificate from the principal
employer, who will be the Engineer – in – charge.

Clause 22 - Labour below the age of 14 years - No labour below the age of 14 years shall be
employed on the work.

FAIR WAGE:
Clause 23 - The contractor shall pay not less than fair wage to labour engaged by him on the work.

F:\Tender Document on NIC\Form B.doc - 17 -

Explanation - (a): Fair wage’ means wage(s) whether for time or piece work notified during the
period of execution of contract for the work and where such wages have not been so
notified, the wages prescribed by the Works Department SOR for that period
(b) The contractor shall, notwithstanding the provisions of any contract to the contrary cause
to be paid a fair wage to labourers indirectly engaged on the work including any labour
engaged by his sub-contractors in connection with the said work, as if the labourers had
been immediately employed by him.

(c) In respect of labour directly or indirectly employed on the work for the performance of the
contractors part of this agreement the contractor shall comply with or cause to be
complied with the Labour Act in force.

(d) The Executive Engineer/Sub-Divisional Officer shall have the right to deduct, from the
moneys due to the contractor, any sum required or estimated to be required for making
good the loss suffered by a worker or workers by reasons of non-fulfillment to the
conditions of the contract for the benefit of the workers nonpayment of wages or
deductions made from his or their wages, which are not justified by the terms of the
contract or non observance of the regulations.

(e) The contractor shall be primarily liable for all payments to be made under and for
observance of the regulations afore said with out prejudice to his right to claim indemnity
from his sub-contractors.

(f) The regulations aforesaid shall be deemed to be a part of this contract and any breach
thereof shall be deemed to be a breach of this contract.

Clause 24 - Subletting of works :- The contract may be rescinded and security deposit forfeited, for
subletting the work beyond permissible limits as per clause 7.1 of appendix 2.10 or if
contractor becomes insolvent: -
The contract shall not be assigned or sublet without prior sanction of the authority who
has accepted the tender in writing. And if the contractor assign or sublet his contract, for
more than permissible limits as per clause 7.1 of appendix 2.10 or attempt to do so, or
become insolvent commence any insolvency proceedings or make any composition with
his creditors, or attempt to do so or if any gratuity, gift, loan, perquisite, reward of and
advantage pecuniary or otherwise, shall either directly or indirectly be given, promised or
offered by the contractor, or any of his servants or agents or to any public officer or
person in the employ of Government in any way relating to his office or employment, or if
any such officer or person shall become in any way directly or indirectly interested in the
contract, the Executive Engineer may there upon by notice in writing rescind the contract,
and the S.D. of the contractor shall there upon stand forfeited and be absolutely at the
disposal of Government and the same consequences shall ensure as if the contract had
been rescinded under clause 3 thereof, and in addition the contractor shall not be entitled
to recover or be paid for any work thereto for actually performed under the contract. Any
such assignment/subletting within the limit of 25% by the authority who has accepted the
tenders OR 50 % by the next higher authority accepting the tender or Govt. as the case
may be ,shall not diminish or dilute the liability/ responsibility of the contractor.

If the contractor gets item / items of work executed on a task rate basis with / without
materials, this shall not amount to subletting of the contract.

Note- Such subletting /assignment shall not be mad3e to any other contractor registered in
class A1 to A5 category in the Rural Engineering Service, (P.&R.D.D.) of Chhattisgarh or
in similar category in other dept. of the state or in other whatever name these are called.
24.1 Any subcontracted work, done in Chhattisgarh state with prior approval of competent
authority ,such subcontractor will also get the credit for work towards his
experience.

Sum payable by way of Compensation to be considered as Reasonable Compensation

Without Reference to Actual Loss:

F:\Tender Document on NIC\Form B.doc - 18 -

Clause 25: All sums payable by way of compensation under any of these condition shall be
considered as reasonable compensation to be applied to the use of Government without
reference to the actual loss or damage sustained, and whether or not any damage shall
have been sustained.

CHANGE IN THE CONSTITUTION OF FIRM:

Clause 26 - In the case of tender by partners any change in the constitution of the firm shall be
forthwith notified by the contractor to the Engineer -in-charge for his information, and
contractor shall initiate steps for fresh & new registration which shall be assessed &
decided by the competent authority for fresh registration

WORK TO BE UNDER DIRECTION OF EXECUTIVE ENGINEER / SUPERINTENDING ENGINEER:

Clause 27 - All works to be executed under the contract shall be executed under the direction and
subject to the approval in all respect of the Executive Engineer of the
Division/Superintending Engineer of the Circle for the time being who shall be entitled to
direct at what point or points and in what manner they are to commenced and from time
to time carried on.

ARBITRATION CLAUSE:
Clause 28 Except as otherwise provided in this contract all question and dispute relating to the
meaning of the specification, designs, drawings and instruction herein before mentioned
as to thing whatsoever in any way arising out of or relating to the contract designs,
drawings, specification, estimate, concerning the works, or the execution or failure to
execute the same, whether arising during the progress of the work, or a after the
abandonment there of shall be referred to the Superintending Engineer for his decision,
within a period of 30 (thirty) days of such an occurrence (s). There upon the
Superintending Engineer shall give his written instructions and/or decisions, after hearing
the contractor and Executive Engineer within a period of 15 (fifteen) days of such request.
This period can be extended by mutual consent of parties.
Upon receipt of written instructions or decisions, of Superintending Engineer the parties
shall promptly proceed without delay to comply such instructions or decisions. If the
Superintending Engineer fails to give his instruction or decisions in writing within a
period of 15 (fifteen) days or mutually agreed time after being requested and/or, if the
party (es) is/are aggrieved against the decision of the Superintending Engineer, the
aggrieved party may within 30 days prefer an appeal to the Chief Engineer, who shall
afford an opportunity to the parties of being heard and to offer evidence in support of his
appeal. The, Chief Engineer will give his decision within 30 (thirty) days, or such,
mutually agreed period.

If any party is not satisfied with the decision of the Chief Engineer he can file a petition
for resolving the dispute through arbitration in the arbitration tribunal
A reference to Arbitration Tribunal shall be no ground for not continuing the work on the
part of the Contractor. Payment as per original terms and condition of the agreement shall
be continued by the Executive Engineer in accordance with clause 8 above.

LUMP SUM IN ESTIMATE:

Clause 29 - When the estimate on which a tender is made includes lump sums in respect of part of
the works, the contractor shall be entitled to payment in respect of the items of work
involved or the part of the work in the question at the same rates as are payable under
this contract for such items, or if the part of the work in question is not, in the opinion of
the Engineer – in – charge, capable of measurement, the Engineer – in – charge may at
the his discretion pay the lump sum amount entered in the estimates , and the certificate

F:\Tender Document on NIC\Form B.doc - 19 -

 in writing of the Engineer -in charge shall be final and conclusive against the contractor
with regard to any sum or sums payable to him under the provisions of this clause.

Action where no specification:

Clause 30 - In the case of any class of work for which there is no specification as is mentioned in
Rule such work shall be carried out in accordance with the specification approved by
Superintending Engineer / Chief Engineer for application to

Contractor’s Percentage whether Applied to Net or Gross Amounts of Bills:

Clause 31 - The percentage referred to at Para 7 of the tender will be deducted from/added to the
gross amount of the bills for work done after deduction of the cost of materials supplied
by the department.

Claim for Quantities Entered in the Tender or Estimate:

Clause 32 - Quantities shown in the tender are approximate and no claim shall be entertained for
quantities of work executed being either more or less than those entered in the tender of
estimate. This is subject to the limitations as provided for in clause 13 and 14 above

Claim for Compensation for Delay In Starting the Work:

Clause 33 No compensation shall be allowed for any delay caused, except as provided under clause
5.3, in starting of the work on any other ground or reasons whatsoever.
EMPLOYMENT OF SCARCITY LABOUR:
Clause 34- If Government declare a state of Scarcity or famine to exist in any village situated within
sixteen kilometers of the work the contractor, shall employ upon such parts of the work as
are suitable for unskilled labour, any person certified to him by the Executive Engineer or
by any person to whom the Executive Engineer may have delegated this duty in writing to
be in need of relief and shall be bound to pay to such persons wages not below the
minimum which Government may have fixed in this behalf. Any dispute, which may arise
in connection with the implementation of this clause, shall be decided by the Executive
Engineer whose decision shall be final and binding on the contractor

Clause 35: - Royalty on Minor Minerals

The contractor shall pay all quarry, Royalty charges etc. If the contractor fails to produce
the royalty clearance certificate from concerned department then the Executive Engineer
shall deduct the royalty charges from his bills and keep in deposit head, which shall be
refunded to the contractor on production of royalty clearance certificate from the
concerned department. If he fails to produce the royalty clearance certificate with in 30
days of submission of final bill, then royalty charges which was keep under deposit head
by the Executive Engineer shall be deposited to the concerned department and his final
bill payment shall be released
Any change in the royalty rates of minor minerals notified by the state government, after
the date of submission of financial offer by the bidder/contractor, then this
increase/decrease in the rates shall be reimbursed/deducted on actual basis.
.

TECHNICAL EXAMINATION:
Clause 36 - The Government shall have the right to cause Audit and Technical Examination of the
works and the final bills of the contractor including all supporting vouchers, abstracts etc.
to be made as per payments of the final bills and if as a result of such Audit & Technical
Examination the sum is found to have been overpaid in respect of any work done by the
contractor under the contract or any work claimed by him to hays been done under
contract and found not to have been executed, the contractor shall be liable to refund the
amount of over payment and it shall be lawful for the Government to recover the same
from the security deposit of the contractor or from any dues payable to the contractor
from the Government account if it is found that the contractor was paid lesser than what

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 was due to him under the contract in respect any work executed by him under it, the
amount of such under payment shall be duly paid by the Government to the contractor.

In the case of any audit examination and recovery consequent on the same the
contractor shall be given an opportunity to explain his case and decision of the
Superintending Engineer shall be final.

In the case of Technical Audit, consequent on which there is a recovery from the
contractor, no recovery, should be made without orders of the Chief Engineer whose
decision shall be final. AII action under this clause should be initiated and intimated to the
contractor within a period of Twenty four months form the date of completion of work

DEATH OF PERMANENT INVALIDITY OF CONTRACTOR:

Clause 37 - If the contractor is an individual or a proprietary concern, partnership concern, dies
during the currency of the contract or becomes permanently incapacitated, where the
surviving partners are only minors the contract shall be closed without levying any
damages/compensation as provided for in clause 3 of the contract agreement.

However, if competent authority is satisfied about the competence of the surviving, then
the competent authority shall enter into a fresh agreement for the remaining work strictly
on the same terms and conditions, under which the contract was awarded.

Clause 38 - PENALTY FOR BREACH OF CONTRACT:

On the breach of any term or condition of this contract by the contractor the said
Governor shall be entitled to forfeit the Security deposit or the balance thereof that may at
the time be remaining, and to realise and retain the same as damages and compensation
for the said breach but without prejudice to the right of the Governor to recover further
sums as damages from any sums due or which may become due to the contractor by
Government or otherwise howsoever.

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 ANNEXURE – “E”

SECHUDLE OF ITEMS (BILLS OF QUANTITY)

Sr Reference Description Unit Quantity Rate in Rate in Amount in Remark
. to item No. of item figure per words per (figure)
N of S.O.R. unit unit
o (in any) (Rs. …..) (Rs…..)
1 2 3 4 5 6 7 8 9
1
2
3
4
5
etc
etc

Contractor (Signature with name and

seal of Authorised signatory of the
contractor

1) The value of total tendered cost is for Rs. ………………………………..

and 2) The total value of all S.O.R. items (excluding non S.O.R. items) as per sanctioned estimate is
Rs. ……………….. (in figure) (rupees ……………….. in words)

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 NOTICE TO THE CONTRACTOR TO START WORK
Your officer of item rate of contract for the work of …………………………………………………and for a total
value of Rs. …………………… (in figure)………………… (in words) has been accepted by me/Superintending
Chief Engineer I Engineer-in-chief/ Government, for and on behalf of the Governor of Chhattisgarh, on
……./……/ 200….. You are hereby ordered to commence the work. The date reckoned shall be ……/……../200
…..

Executive Engineer
Notice to the contractor (s) to start work from ………/………/200……was issued vide this office memorandum
No ……………………………………………………………… dated the ……/.…../200……

Signature of Contractor Signature of Executive Engineer

COMPLETION CERTIFICATE

In pursuance of clause 7 of the Agreement in form-B (No…………/Dt. of ………..) dated the

……/……/…………. between the contractor Shri……………………………and the Governor of Chhattisgarh, it is
………..hereby certified that the said contractor has duly completed the execution of the work undertaken by him
there under on Dt.……/………/…………

Signature of Executive Engineer

23