29th September, 2021
Dear sir/Madam,
We are being very excited for the express opportunity to work in this project [ Arun-03
Hydroelectric Project 900 MW] with you. We feel we are deserving candidate for this
opportunity. So, in order to perform the contract, we have following specific terms and
conditions pointed our here. Please do consider these points from your side also.
1. Contract Document
Contract document shall be legally valid and shall be relevance to the standard bidding
documents of PPMO in major issues regarding the execution of contract. The mutual
understanding between us can be indicated in contract document. The non-relevant topics
enclosed in our mutual understanding can be mark with N/A [not applicable].
2. Payment certificate & Payment module
Payment certificate shall prepare by the contractor based on the joint measurement made
with the presence of client and consultant. Minimum billing amount could be 0.5% of total
contract amount. Payment certificate prepared by contractor inclusive of VAT shall be
verified and approved by the client/consultant within the 7 days of submission and client
shall inform contractor, through the written letter of approval with indication of amount. The
payment upon the approved bill shall made within 10 days from date of date of Approval.
3. Price Adjustment
Price should be adjusted for fluctuations in the cost of inputs by applying following formula:
Where:
pn is a price adjustment factor to be applied to the amount for the payment of the work carried out in
the subject month, A is a constant, could take from table of Adjustment data, representing the
nonadjustable portion in contractual payments. b, c, d, etc., coefficients representing the estimated
proportion of each cost element (labor, materials, equipment usage, etc.) in the Works or sections
thereof, net of Provisional Sums, Ln, Mn, En, etc., are the current cost indices or reference prices of
the cost elements for month “n,” applicable to each cost element; and L o, Mo, Eo, etc., are the base
cost indices or reference prices corresponding to the above cost elements at the date.
4. Variation order
The sub-contractor shall provide the quantity of work exceeding the initial contract value.
The Project Manager will proceed a quotation for carrying out the Variation when requested
to do so by the Project Manager after execution of provisional Bill of Quantity. The Project
Manager shall assess the quotation, which shall be given within seven (7) days of the
request or within any longer period stated by the Project Manager and before the Variation
is ordered.
5. Take over
The Employer shall take over the Site and the Works within seven days of the Project
Manager’s issuing a certificate of Completion.
6. Termination of contract
The Employer may terminate the Contract at any time if the contractor
does not commence the work as per the Contract,
abandons the work without completing,
fails to achieve progress as per the Contract.
Is able to execute contract within intended date of completion.
The Employer or the Contractor may terminate the Contract if the other party causes a
fundamental breach of the Contract.
7. Local Issues
Major local issues, which lies in the obligation of client, shall be mitigated by client with the
due coordination with public.
8. Idle payment
If construction activities are stopped due to the issues other than natural issues and it goes
to on the court of client, idle payment should be made by client up on the issued resources
at construction site [Also need to include the price of rated progress of daily work
activities at that period]. Other clause should be as per standard bidding document.
9. Signing of contract
Formal contract shall be signed as soon as possible. We will be waiting for clients call about
this issue.
10. Commencing the construction site works
After signing contract, we will mobilize within one week of getting letter of commencement.
11. Preparation of work schedule
Construction work schedule for the assigned work will be prepared and submitted to the
client from our side just after signing the contract. Verification and adjustment on the
submitted work schedule shall be made by client as per their master plan. The work
schedule shall be tracked by consultant and client based on the daily site works.
12. Investment
We could provide adequate cash flow as per requirement of construction site works. If we
could go negotiation about Advance payment Guarantee from our side and release of
Mobilization advance [10% of contract price] from our client, we will submit Advance
payment Guarantee on the name of our client issued form recognized and eligible banks of
Nepal to issue APG and on behalf of submission of APG, client shall facilitate the
Mobilization advance. Thus received Mobilization advance will be used as our financial
resources for the execution of contract. If we can’t negotiate or it will be out of the client’s
working modality, we can manage sufficient fund to execute the contract up to price of NPR
100 million. It means we can handle the construction project relating to civil works up to
contract price of NPR 100 million.
13. Weekly meeting
Joint weekly meeting at construction site shall be facilitated for the tracking of work
progress, mitigate technical difficulties, mitigate disputes occurred at construction site
during execution.
14. Verification of works
Verification of construction site works shall be made by consultant/client in daily basis. The
various quantities of works executed from our site will be submitted by our contract
manager to the project manager. The project manager shall take adequate information form
his/her junior staff and should be signed and stamped.
15. Quality control
Quality of work depends on the quality of materials and degree of good workmanship.
Quality control laboratory will be established for testing and identification of local as well as
non-local construction materials. To control quality on work at working site,
workmanship will be professional, constriction materials will be as per standard
specification such as IS-standards, Ns-standards and NEA-standards. Quality
assurance plan will be submitted to client/consultant after signing the contract.
16. Manpower
All the required manpower skilled as well unskilled will be managed by sub-contractor and
all the facilities will be on the behalf of us. We will recruit potential personals for the
execution of contract effectively. All the supervisory team will be well experienced, multi-
talented, dedicated, motivated and output oriented.
17. Materials
We, the sub-contractor can manage construction materials required for the construction of
structures. If client willing to facilitate the construction materials at our site, we will be ok
with mutual understanding.
18. Machine/Equipment
All the required tools, plant and equipment can be facilitated at construction site as per type
and nature of assigned work. The major list of equipments available with us can be seen in
our company profile attached herewith.
We are pleased to request you for the kind consideration on this document and faithful
understanding of our commitment to execute construction works of your project. The
prevailing laws applicable for the execution of contract will be as per our clients
rules as well as terms and conditions set forth on mutual understanding between us
Thank You!
…………………………….
Er. Yubaraj Acharya
Representative of Contractor [Gauri parbati Nirman Sewa pvt.ltd.]
Email: - [email protected]
Contact: - +977-9851224810
