STANDARD BIDDING DOCUMENT PROCUREMENT OF

CIVIL WORKS

COMPLETE BIDDING DOCUMENT

GOVERNMENT OF GUJARAT
ROAD & BUILDING DEPARTMENT

Name of Work :- CONSTRUCTION OF CANAL STRUCTURE ON BARDOLI-MOTA-

MIRAPUR-ORNA ROAD (NEAR UMRAKH CANAL STRUCTURE) K.M. 0/100 TO 10/430
(W/S CH. 2/600 TO 2/800) TAL.BARDOLI, DIST.SURAT.

Deputy Executive Engineer Executive Engineer

Bardoli (R&B) Sub Division Surat (R&B) Division No.2
Bardoli Surat

Superintending Engineer
Surat (R&B) circle
Surat
 Index
Sr No Section Description Page No

1 Invitation for Bid (IFB) 3

2 Section -1 Instructions to Bidders 6

3 Section -2 Qualification Information 27

4 Section -3 Conditions of Contracts 35

5 Section -4 Contract Data 63

6 Section -5 Technical Specification 72

7 Section -6 Form of Bid 73

8 Section -7 Bill of Quantities 76

9 Section -8 Securities and Other Forms 79

10 Section -9 Drawings 91

11 Section -10 Documents to be furnished by Bidder 92

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 INVITATION FOR BID
(IFB)

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 NATIONAL COMPETITIVE BIDDING
NOTICE NO.18 OF YEAR 2023-24 (Corrigendum-3) (Re-invite)
1. The CONSTRUCTION OF CANAL STRUCTURE ON BARDOLI-MOTA-MIRAPUR -ORNA
ROAD (NEAR UMRAKH CANAL STRUCTURE) K.M. 0/100 TO 10/430 (W/S CH. 2/600 TO
2/800) TAL.BARDOLI, DIST.SURAT invites bids for the construction of works detailed in the
table. The bidders may submit bids for any or all of the following works.
TABLE
Pack Name of work Approximate Bid security Cost of Period of # Class of
age Value of works (Rs.)1% document completion Registration
No. (Rs.) Tender / Category of
Fee contractor if
required
1 2 3 4 5 6 7
1 CONSTRUCTION OF 57,93,772.44 58,000/- 2,400/- 9 Months D Class &
CANAL STRUCTURE above.
ON BARDOLI-MOTA-
MIRAPUR -ORNA
ROAD (NEAR
UMRAKH CANAL
STRUCTURE) K.M.
0/100 TO 10/430 ( W/S
CH. 2/600 TO 2/800).
TAL. BARDOLI,
DI.ST.SURAT.
2. Prospective / Interested bidder may download the Bid Documents from website
https://www.nprocure.com free of cost till the Time and Date as mentioned on online
NIT at website https://www.nprocure.com.#
3. However, Bidder who is submitting the Bid Online will have to pay the Bid Document Fee
/ Tender Fee through Demand Draft only of any Schedule Bank payable at
and in favour of ‘Executive Engineer Surat (R&B) Division
No.2 Surat Once the Bid is received online, Bid Document / Tender Fee will not be
refundable.
The Demand Draft for Bid Document / Tender fee and FDR / Bank Guarantee against
Bid Security / EMD shall be submitted in electronic format through online (by
scanning) while uploading the bid, this submission shall mean that bid document /
tender fee and Bid Security / EMD has been received. Accordingly, the offer of only
those shall be opened whose Bid Document / Tender Fee and Bid Security / EMD have
been received electronically. However, for the purpose of realization of Demand Draft,
and FDR / Bank Guarantee bidder shall send the same in original through R.P.A.D. so
as to reach to ‘Executive Engineer, Surat (R&B) Division No.2 Surat within 7 Days
from the last day of bid submission.
Penalatative action for not submitting Demand Draft / FDR / Bank Guarantee in
original to Executive Engineer / Tender Inviting Authority by bidder shall be initiated.
4. Bids received online, will be opened on the time, date and place as specified in the
online NIT at website https://www.nprocure.com in the presence of the bidders or
their authorized representatives, who wish to remain present.
If the office happens to be closed on the day of opening of the bids as specified, the
bids will be opened on the next working day at the same time and venue.
5. A pre bid meeting will be held on / /2024 at 12.00 hrs. at the office of The
Superintending Engineer, Surat (R&B) Circle, Opp. Dutch Garden, Nanpura, Surat
to clarify the issues and to answer questions on any matter that may be raised at that
stage as stated in clause 9.2 of ‘instructions to Bidders’ of the bidding documents.

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 6. #Bid Security (EMD) is equal to 1% of Estimated Amount put to bid / tender and
should be rounded off to the next thousand rupees.
7. Other Information is as under:
A. Agencies can prepare and edit their offers a number of times before the end of the
tender submission date and time. After the tender submission date and time, the
bidder cannot modify / edit / withdraw their submitted offer in any case. No
written or online request in this regard shall be granted.
B. Offers in physical form will not be accepted in any case.
C. Demand Draft purchased by the other then bidder and issued after the last date of
submission of Bids, will not be considered or accepted.
D. The cost incurred by the contractor for this offer for clarification or attending
discussion, conferences or site visits will not be reimbursed by the Employer or
Engineer-in-Charge.
E. Conditional tender shall not be accepted.
F. Any changes, addition, alternation made in the prescribed form attached with
tender are liable to be rejected.
G. Any change in format or conditional Bank Guarantee will not be accepted and the
bidder will be considered non-responsive.
H. All the bidders are instructed to fill in information strictly in accordance with the
format given in the checklist /qualification document / tender document.
I. It is mandatory for the bidders to supply each and every information as asked
strictly in electronic format at appropriate places only.
J. Blank / insufficient information shall be treated as nil information and shall result
in disqualification.
K. Even if the bidder has been qualified in a similar or larger size of project in the
past, it shall not be deemed to be a ground / reason for not giving required
information for this work / bid.
L. Information supplied for earlier projects shall not be considered while evaluation
of this bid. The Government will not ask for any other information, unless it is
found absolutely necessary by the competent authority.
M. If found necessary, the contractor will be intimated for negotiation,
# For the works costing up to 7.5 crore (ROAD), 7.0 crore (BUILDING &
BRIDGE) kindly refer to SSR-10-2015-17-C dated 03-02-2017
For the works costing under 7.5 crore for Road Works and 7.0 crore for Building and
Bridge Works following documents shall be submitted in electronic format only
through online by scanning and the (i) Bid Document Fee / Tender Fee (ii) Bid
Security / EMD should be sent in original to the Tender opening authority through
RPAD, so as to reach the Executive Engineer within 7 days from last day of
submission of Bid.
(i) Bid Document Fee / Tender Fee
(ii) Bid Security / EMD or Valid EMD Exemption Certificate of Appropriate
Class of Registration of Approved Contractors
(iii) Registration Certificate of Appropriate Class : D Class & above.
(iv) Registration Certificate of Special Category - Road / Bridge / Building
and Category I / II / III, if required
(v) GST Number
(vi) Work Experience, if necessary…
(vii) Other Documents, as required…

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 SECTION - 1
INSTRUCTIONS TO BIDDERS

(ITB)

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 Section 1: Instructions to Bidders

Table of Clauses

Page No. Page No.

A. General D. Submission of Bids
1. Scope of Bid 8 19. Sealing & Marking of Bids 18
2. Source of Funds 8 20. Deadline for Submission of 18
Bids
3. Eligible Bidders 8 21. Late Bids 18
4. Qualification of the 8 22. Modification and 18
Bidder Withdrawal of Bids
5. One Bid per Bidder 12
6. Cost of Bidding 12 E. Bid Opening and Evaluation
7. Site Visit 12 23. Bid Opening 19
24. Process to be Confidential 20
B. Bidding Documents 25. Clarification of Financial 20
Bids
8. Content of Bidding 13 26. Examination of Bids and 20
Documents Determination of
Responsiveness
9. Clarification of Bidding 13 27. Correction of Errors 20
Documents
10. Amendment of Bidding 14 28. Deleted 21
Documents
29. Evaluation and Comparison 21
of Financial Bids
C. Preparation of Bids 30. Deleted 21
11. Language of Bid 15
12. Documents Comprising 15 F. Award of Contract
the Bid
13. Bid Prices 15 31. Award Criteria 22
14. Currencies of Bid and 16 32. Employer’s Right to Accept 22
Payment any Bid and to Reject any or
all Bids
15. Bid Validity 16 33. Notification of Award and 22
Signing of Agreement
16. Bid Security 16 34. Performance Security 22
17. Alternative Proposals By 17 35. Advance Payment and 23
Bidders Security

18. Format and Signing of Bid 17 36. Dispute Review Expert 23

37. Correct or Fraudulent 23
Practices

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 A. GENERAL

1. Scope of Bid
1.1 The Employer (Named in Appendix to ITB) invites bids for the Construction of works (as
defined in these documents and referred to as ‘the works”) detailed in the table given in
IFB. The bidders may submit bids for any or all of the works detailed in the table given in
IFB.
1.2 The successful bidder will be expected to complete the works by the intended completion
date specified in the Contract data.

1.3 Throughout these bidding documents, the terms ‘bid’ and ‘tender’ and their derivatives
(bidder/ tenderer, bid / tender, bidding/ tendering, etc.) are synonymous.
2. Source of Funds

2.1 The expenditure on this project will be met from the budget of Govt. of Gujarat / Govt. of
India for centrally sponsored projects.

3. Eligible Bidders

3.1 This Invitation for Bids is open to all eligible bidders.

3.2 All bidders shall provide in Section 2, Forms of Bid and Qualification Information, a
statement that the Bidder is neither associated, nor has been associated, directly or
indirectly, with the consultant or any other entity that has prepared the design,
specifications, and other documents for the Project or being proposed as Project Manager
for the Contract. A firm that has been engaged by the Employer to provide consulting
services for the preparation or supervision of the works, and any of its affiliates, shall not
be eligible to bid.

4. Qualification of the Bidder

4.1 All bidders shall provide in Section 2, Forms of Bid and Qualification Information, a
preliminary description of the proposed work method and schedule, including drawings
and charts, as necessary. The proposed methodology should include a program of
construction backed with equipment planning and deployment duly supported with broad
calculations and quality assurance procedures proposed to be adopted justifying their
capability of execution and completion of work as per technical specifications, within
stipulated period of completion.
4.2 Deleted
4.3 Deleted
4.4 Deleted
#4.5 QUALIFICATION CRITERIA:
(Applicable for the works which require Post Qualification)

4.5.1 Qualification will be based on Applicant’s meeting all the following minimum pass/ fail criteria
regarding the Applicant’s general and particular experience, personnel and equipment
capabilities and financial positions, as demonstrated by the applicant’s responses in the forms
attached to the letter of application ( specified requirement for joint ventures are given under
para 4.6 below ) Subcontractors experience and resources shall not be taken in to account in
determining the applicants compliance with the qualifying criteria

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 To qualify for more than one contract, the applicant must demonstrate having experience
and resources sufficient to meet the aggregate of the qualification criteria for each contract
given in paragraphs 4.5.4, 4.5.5 and 4.5.9 below

4.5.2 Base year and Escalation

The base year shall be taken as Current financial year

Following enhancement factors will be used for the costs of works executed and the
financial figure to a common base value for works completed in India.

Year Financial Year Multiplying factor

Base year of inviting tender 2023-2024 1.00
-1 2022-2023 1.10
-2 2021-2022 1.21
-3 2020-2021 1.33
-4 2019-2020 1.46
-5 2018-2019 1.61

Applicant should indicate actual figures of costs and amount for the works
executed by them without accounting for the above-mentioned factors.

In case the financial figures and value of completed works are in foreign currency
the above enhanced multiplying factors will not be applied. Instead, the current market
exchange rate (State Bank of India BC Selling rate as on the last date of submission of the
bid) will be applied for the purpose of conversion of the amount in foreign currency into
India rupees.

4.5.3. General Experience.

The Applicant shall meet with the following minimum criteria:

(a) Achieved a minimum annual financial turnover (defined as billing for works in
progress and completed in all classes of civil engineering construction works only)
in any one year, over the last five years of the annual value of contract / contracts
applied for.

(b) Experience in successfully completing or substantially completing at least one

contract of highway (road and / or bridge works) airport runway of at least 40
percent of the value of proposed contract within the last five years.

The works may have been executed by the applicant as prime contractor or as
a member of a joint venture or as a nominated sub-contractor. As subcontractor, he
should have acquired the experience of execution of all major items of works under
the proposed contract. In case a project has been executed by a joint venture, weight
towards experience of the project would be given to each joint venture in proportion
to their financial participation in the joint venture.

Substantially completed works means those works which are at least 90 %

completed as on the date of submission (i.e. gross value of work done up to the

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 last date of submission is 90 % or more of the original contract price) and continuing
satisfactorily.

For these, a certificate from the employers shall be submitted along with the
application incorporating clearly the name of the work, contract value, billing
amount, date of commencement of works, satisfactory performance of the contractor
and any other relevant information.

4.5.4. Personnel Capabilities.

Availability for his work of personnel with adequate experience as required; as per
Appendix.

4.5.5. Equipment Capabilities

Based on the studies carried out by the Engineer, the minimum suggested major
equipment to attain the completion of works in accordance with the prescribed
construction schedule are shown in the Appendix.

The bidders should, however, undertake their own studies and furnish with their
bid, a detailed construction planning and methodology supported with layout and
necessary drawings and calculations to allow the employer to review their proposals. The
numbers, types and capacities of each plant/equipment shall be shown in the proposals
along with the cycle time for each operation for the given production capacity to match
the requirements.

4.5.6. Financial Position

The Applicant should give undertaking that he has access to, or has available, liquid assets
(aggregate of working capital, cash in hand and uncommitted bank guarantees) and / or
credit facilities up to 25 percent of the value of the contract / contracts applied.

4.5.7. The audited balance sheets for the last five years should be submitted, which must
demonstrate the soundness of the applicant’s financial position, showing long – term
profitability including an estimated financial projection for the next two years If
necessary, the employer will make inquiries with the applicant’s bankers.

4.5.8. Litigation History

The Applicant should provide accurate information on any litigation or arbitration
resulting from contracts completed or under execution by him over the last five years. A
consistent history of awards against the Applicant or any partner of a joint venture may
result in failure of the applicant.

4.5.9. Disqualification
Even though the applicants meet the above criteria, they are subject to be disqualified if
they have:
Made misleading or false representation in the forms, statements submitted, and / or
Record of poor performance such as abandoning the work, rescinding of contract for
which the reasons are attributable to the non – performance of the contractor; consistent
history of litigation awarded against the applicant or financial failure due to bankruptcy.
The rescinding of contract of a joint venture on account of reasons other than non –
performance, such as Most Experienced partner of joint venture pulling out, court
directions leading to breaking up of a joint venture before the start of work, which are not
attributable to the poor performance of the contractor will, however, not affect the
qualification of the individual partners.

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 #4.6 JOINT VENTURE: (Maximum 3 Members i.e. 1 Lead & 2 Others)
(Applicable only for estimated project cost of 50 Crore and above)

4.6.1. Joint ventures must comply with the following requirement:

(a) Following are the minimum qualification requirements:

(i) The lead partner shall meet not less than 50 percent of all criteria given in para 4.5.3
& 4.5.6 above. The joint venture must collectively satisfy the criteria of para 4.5.3 &
4.5.6 above. The experience of the other joint venture partners shall be considered if
it is not less than 30 percent of the qualifying criteria in para 4.5.3 & 4.5.6 above.

(ii) Individually each member must satisfy the requirements of para 4.5.7 & 4.5.8 above.

(b) Bid shall be signed so as to legally bind all partners, jointly and severally, and shall be
submitted with a copy of the joint venture agreement providing the joint and several
liabilities with respect to the contract.
4.6.2. Qualification of a joint venture does not necessarily qualify any of its partners
individually or as a partner in any other joint venture. In case dissolution of a joint
venture, each one of the constituent firms may qualify if they meet all the qualification
requirements, subject to the written approval of the Employer.

4.7. Bid Capacity.

Applicants who meet the minimum qualification criteria will be qualified only if their
available bid capacity at the expected time of bidding is more than the total estimated cost
of the works. The available bid capacity will be calculated as under:

Assessed Available Bid Capacity = ( A*N*2-B), where

A = Maximum value of work executed in any one year during the last five years (updated
to the price level of the year indicated in appendix) taking into account the
completed as well as works in Progress.

B = Value at current price level of the existing commitments and ongoing works to be
completed during the next (period of completion of work for which bids are
invited); and

N = Number of years prescribed for completion of the works for which the bids are
invited.

Note :- In Case of joint venture, the available bid capacity will be applied for each
partner to the extent of his proposed participation in the execution of the
work.

4.8 Even though the bidders meet the above qualifying criteria, they are subject to be
disqualified if they have:

- Made misleading or false representation in the forms, statements and

Attachments the submitted in proof the qualification requirements; and / or

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 - Record of poor performance such as abandoning the works, not properly completing
the contract, inordinate delay in completion, litigation history, or financial failures
etc.; and/ or
- Participated in the previous bidding for the same work and had quoted unreasonably
high bid prices and could not furnish rational justification to the employer.

5. One bid per bidder

5.1. Each bidder shall submit only one bid for one package. A bidder who submits or participates
in more than one bid (other than as a subcontractor or in cases of alternatives that have
been permitted or requested) will cause all the proposals with the bidder’s participation to
be disqualified.

6. Cost of Bidding

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

7. Site Visit

7.1. The Bidder, at the Bidder’s own responsibility and risk is encouraged to visit and examine
the Site of work and its surrounding and obtain all information that may be necessary for
preparing the Bid and entering into a contract for construction of the Works.
The costs of visiting the site shall be at the Bidder’s own expense.

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 B. BIDDING DOCUMENTS

8. Content of Bidding Documents

8.1 The set of bidding documents comprises the documents listed below and addenda
issued in accordance with Clause 10:
Section Particulars Volume No.
- Invitation for Bids
I
1 Instructions to Bidders
2 Qualification Information, and other forms
3 Conditions of Contract
4 Contract Data
5 Technical Specifications II
6 Form of Bid III
7 Bill of Quantities
8 Securities and other forms
9 Drawings IV
10 Documents to be furnished by bidder V

8.2. Volumes I, II, III and IV are available online and documents to be furnished by the bidder
in compliance to section 2 will be prepared by him and furnished as Volume- V in two
parts (refer clause 12).

8.3. The bidder is expected to examine carefully all instructions, conditions of contract,
contract data, forms, terms, technical specifications, bill of quantities, forms, Annexes and
drawings in the Bid Document. Failure to comply with the requirements of Bid
Documents shall be at the bidder’s own risk. Pursuant to clause 26 hereof, bids which
are not substantially responsive to the requirements of the Bid Documents shall be
rejected.

9. Clarification Bidding Documents

9.1 A prospective bidder requiring any clarification of the bidding documents may notify
the Employer in writing or through E-mail at the Employer’s address indicated in the
invitation to bid. The Employer will respond to any request for clarification which he
received earlier than 15 days prior to the deadline for submission of bids. Employer’s
response will be published on website including a description of the enquiry but without
identifying its source.

9.2. Pre-bid meeting

9.2.1. The bidder or his official representative is invited to attend a pre-bid meeting which will
take place at the address, venue, time and date as indicated in the appendix.

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 9.2.2. The purpose of the meeting will be to clarify issues and to answer questions on any
matter that may be raised at that stage.

9.2.3. The bidder shall be required to submit any questions in writing or e-mail to reach the
Employer not later than 03 days before the meeting.

9.2.4 Minutes of the meeting, including the question raised (Without identifying the source of
enquiry) and the responses given will be published without delay on the tender website
i.e. www.nprocure.com. Any modification of the bidding documents listed in sub-
Clause 8.1 which may become necessary as a result of the pre-bid meeting shall be
made by the Employer exclusively through the issue of an Addendum pursuant to
Clause 10 and not through the minutes of the pre-bid meeting.

9.2.5. Non-attendance at the pre-bid meeting will not be a cause for disqualification of a bidder.

10. Amendment of Bidding Documents

10.1 Before the deadline for submission of bids, the Employer may modify the bidding
documents by issuing addenda.

10.2. Any addendum thus issued shall be part of the bidding documents. The Employer will
assume no responsibility for the same.

10.3. To give prospective bidders reasonable time in which to take an addendum into account
in preparing their bids, the Employer may, at his discretion, extend as necessary the
deadline for submission of bids, in accordance with Sub-Clause 20.2 below.

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 C. PREPARATION OF BIDS

11. Language of the Bid

11.1 All documents relating to the bid shall be in the English language.

12. Documents Comprising the Bid

12.1. The bid be submitted by the bidder as Volume V of the bid document (refer Clause 8.1)
shall be in two separate parts:

Part I shall be named “Technical Bid” and shall comprise

(i) Bid Security in the form specified in Section 8

(ii) Qualification Information and supporting documents as specified in Section 2

(iii) Certificates, undertakings, affidavits as specified in Section 2

(iv) Any other information pursuant to Clause 4.5 of these instructions

(v) Undertaking that the bid shall remain valid for the period specified in Clause 15.1

Part II shall be named “Financial Bid” and shall comprise

(i) Form of Bid as specified in Section 6

(ii) Priced Bill of Quantities for items specified in Section 7

12.2. The Bidder shall submit the details / information pertaining to each part i.e.
technical as well as financial and must be submitted online only.
12.3. Following documents will be deemed to be part of the bid.

Section Particulars Volume No.

Invitation for Bids (IFB)

1 Instruction to Bidders Volume I
3 Conditions of Contract
4 Contract Data
5 Specifications Volume II
9 Drawings Volume IV

13. Bid Prices

13.1 The Contract shall be for the whole works as described in Sub-Clause 1.1, based on the
priced Bill of Quantities submitted by the Bidder.

13.2 The bidder shall fill in rates and prices and line item total (both in figures and words) for
all items of the Works described in the Bill of Quantities along with total bid price

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 (Both in figures and words). Items for which no rate or price is entered by the bidder will
not be paid for by the Bill of Quantities.

13.3 All duties, taxes, and other levies inclusive GST payable by the contractor under the
contract, or for any other cause shall be included in the rates, prices and total Bid Price
submitted by the Bidder. (GST will be inclusive)

13.4 Deleted

13.5 The rates and prices quoted by the bidder are subject to adjustment during the
performance of the Contract in accordance with the provisions of Clause 47 of the
Condition of Contract (Irrespective of the time limit and Bid Amount)

14. Currencies of Bid and Payment

14.1 The unit rates and the prices quoted by the bidder shall be entirely in Indian Rupees. All
payments shall be made in Indian Rupees.

15. Bid Validity

15.1 Bids shall remain valid for a period of not less than 120 days after the deadline date forbid
submission specified in Clause 20.

15.2 In exceptional circumstances, prior to expiry of the original time limit, the Employer may
request that the bidders may extend the period of validity for a specified period. A bidder
may refuse the request without forfeiting his bid security. A bidder agreeing to the request
will not be required or permitted to modify his bid, but will be required to extend the
validity of his security for a period of the extension, and in compliance with Clause 16 in
all respects.

#16. Bid Security

16.1. The Bidder shall furnish, as part of his Bid, a Bid security in the amount as shown in
column 4 of the table of IFB for this particular work. This Bid security shall be in favor of
Employer as named in Appendix and may be in one of the following forms;
a. Bank Guarantee from any scheduled Indian bank, in the format given in Volume
III. (Bank Guarantee is applicable only for Bid Estimated Amount of 01 Crore
and above) and Bank Guarantee of Schedule and Private Banks shall be
considered as per GoG Finance Department’s Circular No. FD/MSM/e-
file/4/2023/0057/D.M.O. Date 21/04/2023 or as per their latest amendment.

b. Fixed Deposit Receipt issued by any Scheduled Indian Bank or a foreign Bank
approved by the Reserve Bank of India.
OR
# A Valid Bid Security / EMD Exemption Certificate issued by
(1) Road & Building Department or
(2) Narmada Water Resources, Water Supply and Kalpsar Department of Govt of
Gujarat. Exemption Certificate is applicable only when Registration
Certificate of Appropriate Class and Category of Approved Contractors is
required as eligible criteria of bidder.

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 16.2. Bank guarantees (and other instruments having fixed validity) issued as surety for the
bid shall be valid for 45 days beyond the validity of the bid i.e. total validity of 120+45
= 165 Days

16.3. Any bid not accompanied by an acceptable Bid Security and not secured as indicated in
Sub-Clauses 16.1 and 16.2 above shall be rejected by the Employer as non-responsive.

16.4. The Bid Security of unsuccessful bidders will be returned within 28 days of the end of
the bid validity period specified in Sub-Clause 15.1

16.5 The Bid Security of the successful bidder will be discharged when the bidder has signed
the Agreement and furnished the required Performance Security.

16.6. The bid Security may be forfeited

(a) If the Bidder withdraws the bid after Bid opening during the period of Bid validity.

(b) If the Bidder does not accept the correction of the Bid Price, if any or
(c) In the case of a successful Bidders, if the Bidder fails the specified time limit to
(i) Sign the Agreement; or
(ii) Furnish the requirement Performance Security.
(d) #If found necessary, the bidder will be intimated for negotiation, He will be
intimated maximum three times within the validity period for negotiation, If
contractor does not respond in time, his Bid Security (EMD) will be forfeited and
his tender will be rejected. Punitive action will be taken on such contractors. (As
per GoG R&B Dept’s Gr. No. S/22/2017/6369/D, Dt.08/06/2018)

17. Alternative Proposals by Bidders.

17.1. Bidders shall submit offers that fully comply with the requirements of the bidding
documents, including the conditions of contract (including mobilization advance or time
for completion), basic technical design as indicated in the drawing and specifications.
Conditional offers or alternative offers will not be considered further in the process of
tender evaluation.

18. Format and Signing of Bid

18.1. The Bidder shall prepare documents comprising the bid as described in Clause 12 of these
Instructions to bidder as the “Technical Bid “and “Financial Bid” in separate parts to be
uploaded.

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 D. SUBMISSION OF BIDS

19. Deleted

20. Deadline for Submission of the Bids

20.1. Complete Bids must be received online by the Employer at the tender website specified
above not later than the date indicated in appendix.

20.2. The Employer may extend the deadline for submission of bids by issuing an amendment
in accordance with Clause 10, in which case all right and obligation of the Employer and
the bidders previously subject to the original deadline will then be subject to the new
deadline.

21. Deleted

22. Modification and Withdrawal of Bids

22.1. Bidders may modify or withdraw their bids online before the deadline prescribed in
Clause 20 or pursuant to Clause 23.
22.2 Deleted

22.3. No bid shall be modified or withdrawn after the deadline for submission of Bid.

22.4. Withdrawal or modification of a bid between the deadline for submission of bids and the
expiration of the original period of bid validity specified in Clause 15.1 above or as
extended pursuant to Clause 15.2 may result in the forfeiture of the Bid security pursuant
to Clause 16.

Sign. of the Contractor Sign. of the Executive Engineer 18

 E. BID OPENING AND EVALUATION

23. Bid Opening

23.1 The Employer will open all the Bids received including modifications made pursuant to
Clause 22, in the presence of the Bidders or their representatives who choose to attend at
time, date and the place specified in Appendix in the manner specified in Clauses 20 and
23.3, In the event of the specified date of Bid opening being declared a holiday for the
Employer, the Bids will be opened at the appointed time and location on the next working
day.
23.2. Deleted.
23.3. The “Technical Bid” shall be opened. The amount, form and validity of the bid security
furnished with each bid will be announced. If the bid security furnished does not conform
to the amount and validity period as specified in the invitation for bid (ref. Column 4 and
paragraph 3), and has not been furnished in the form specified in Clause 16, the technical
bid will not be opened.
23.4. (i) Subject to confirmation of the bid security by the issuing Bank, the bids accompanied
with valid bid security will be taken up for evaluation with respect to the
Qualification information and other information furnished in part I of the bid
pursuant to Clause 12.1.
(ii) If required, the bidder will be asked in writing to clarify his Qualification
Documents with respect to any required clarification.
(iii) The bidders will respond in not more than 7 days of issue of the clarification letter.
(iv) Immediately (usually within 3 or 4 days), on receipt of these clarification the
Evaluation Committee will finalize the list of responsive bidders whose financial
bids are eligible for consideration.
23.5. Deleted
23.6 At the time of opening of “Financial Bid”, the names of the bidders were found
responsive in accordance with Clause 23.4(iv) will be announced. The bids of only these
bidders will be opened. The responsive Bidders’ names, the Bid prices, the total amount
of each bid, any discount and such other details as the Employer may consider
appropriate, will be announced by the Employer at the opening.
23.7 the time of opening of “Financial Bid”, the names of the bidders were found responsive in
accordance with Clause 23.4(iv) will be announced. The bids of only these bidders will
be opened. The responsive Bidders’ names, the Bid prices, the total amount of each bid,
any discount, and such other details as the Employer may consider appropriate, will be
announced by the Employer at the opening.
23.8 In case bids are invited for more than one package, the order for opening of the “Financial
Bid” shall be in order of Estimated amount of Bids from highest to lowest.

23.9 The Employer shall prepare minutes of the Bid opening, including the information
disclosed to those present in accordance with Sub-Clause 23.6.

Sign. of the Contractor Sign. of the Executive Engineer 19

 24 Process to be Confidential
24.1 Information relating to the examination, clarification, evaluation, and comparison of Bids
and recommendations for the award of a contract shall not be disclosed to Bidders or any
other persons not officially concerned with such process until the award to the successful
Bidder has been announced. Any effort by Bidder to influence the Employer’s processing
of Bids or award decisions may result in the rejection of his Bid.

25. Clarification of Financial Bids

25.1. To assist in the examination, evaluation, and comparison of Bids, the Employer may, at
his discretion, ask any Bidder for clarification of his Bid, including breakdowns of unit
rates. The request for clarification and the response shall be in writing or by e- mail, but
no change in the price or substances of the Bid shall be sought, offered, or permitted
except as required to confirm the correction of arithmetic errors discovered by the
Employer in the evaluation of the Bids.
25.2 Subject to sub-clause 25.1, no Bidder shall contact the Employer on any matter relating to
his Bid opening to the contract is awarded. If the Bidder wishes to bring additional
information to the notice of the Employer, it should do so in writing.
25.3. Any effort by the Bidder to influence the Employer in the Employer's bid evaluation, bid
comparison or contract award decision may result in the rejection of the Bidders’ bid.

26. Examinations of Bids and Determination of Responsiveness

26.1 During the detail evaluation of "Technical Bid", the Employer will determine whether
each Bid (a) meets the eligibility criteria defined in Clause 3 and 4; (b) has been properly
signed; (c) is accompanied by the required securities and; (d) is substantially responsive to
the requirements of the Bidding document. During the detailed evaluation of the
“Financial Bid”, the responsiveness of the bids will be further determined with respect to
the remaining bid conditions, i.e., priced bill of quantities, technical specifications, and
drawings.

26.2 A substantially responsive “Financial Bid” is one which confirms all the terms, conditions
and specifications of bidding documents, without material deviation or reservation. A
material deviation or reservation is one (a) which affects in any substantial way the scope,
quality, or performance of the Works; (b) which limits in any substantial way, inconsistent
with the Bidding documents, the Employer’s rights or the Bidder’s obligations under the
Contract; or (c) whose rectification would affect unfairly the competitive position of other
Bidders presenting substantially responsive Bids.

26.3 If a “Financial Bid” is not substantially responsive, it will be rejected by the Employer,
and may not subsequently be made responsive by correction or withdrawal of the non-
conforming deviation or reservation.

27. Deleted
28. Deleted

29. Evaluation and Comparison of Financial Bids

29.1. The Employer will evaluate and compare only the Bids determined to be substantially
responsive in accordance with Sub-Clause 26.2.
29.2. Deleted.
Sign. of the Contractor Sign. of the Executive Engineer 20
 29.3. The Employer reserves the right to accept or reject any variation or deviation. Variation
and deviations and other factors, which are in excess of the requirements of the Bidding
documents or otherwise result in unsolicited benefits for the Employer, shall not be taken
in to account in Bid evaluation.
29.4. The estimated effect of the price adjustment conditions under Clause 47 of the Conditions
of Contact, during the period of implementation of the Contract, will not be taken in to
account in Bid evaluation.

29.5. If the Bid of the successful Bidder is seriously unbalanced in relation to the Engineer’s
estimate of the cost of work to be performed under the contract the Employer may require
the Bidder to produce detailed consistency of those prices with the construction methods
and schedule proposed. After evaluation of the price analyses, the Employer may require
that the amount of the performance security set forth in Clause 34 be increased at the
expense of the successful /bidder to a level sufficient to protect the Employer against
financial loss in the event of default of the successful Bidder under the Contract.

29.6. A bid which contains several items in the bill of Quantities which are unrealistically
priced low and which cannot be substantiated satisfactorily by the bidder may be rejected
as non-responsive.

30. Deleted

Sign. of the Contractor Sign. of the Executive Engineer 21

 F. AWARD OF CONTRACT

31. Award Criteria

31.1. Subject to Clause 32, the Employer will award the contract to the Bidder whose Bid has
been determined.
(i) to be substantially responsive to the Bidding documents and who has offered the
lowest evaluated Bid Price; and
(ii) to be within the available bid capacity adjusted to account for his bid price which
is the lowest evaluation in any of the packages opened earlier than the one
consideration.
In no case, the contract shall be awarded to any bidder whose available bid
capacity is less than the evaluated bid price, even if the said bid is the lowest evaluated
bid. The contract will in such cases be awarded to the next lowest bidder at his evaluation
bid price.

32. Employer’s Right to Accept any Bid and to Reject any or all Bids

32.1. Notwithstanding Clause 31, the Employer reserves the right to accept or reject any Bid,
and to cancel the Bidding process and reject all Bids, at any time prior to the award of
contract, without thereby incurring any liability to the affected bidder or Bidder or any
obligation to inform the affected Bidder or Bidders of the grounds for the Employer’s
action.

33. Notification of Award and Signing of Agreement

33.1. The Bidder whose Bid has been accepted will be notified of the award by the Employer
prior to expiration of the Bid validity period by cable, telex or facsimile confirmed by
registered letter. This letter (hereinafter and in the condition of contract called the “Letter
of Acceptance”) will state the sum that the Employer will pay the Contractor in
consideration of the execution, completion, and maintenance of the Works by the
Contractor as prescribed by the Contract (hereinafter and in the Contract called the
“Contract Price”).

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

33.3. The Agreement will incorporate all agreements between the Employer and the successful
Bidder. It will be signed by the Employer and to the successful Bidder, within 28 days
following the notification of award along with the Letter of Acceptance. Within 21 days of
receipt, the successful Bidder will sign the Agreement and deliver it to the Employer.
33.4. Upon the furnishing by the successful Bidder of the Performance Security, the Employer
will promptly notify the other Bidders that their Bids have been unsuccessful.

34. Performance Security

34.1. (A) Within 10 (Ten) days of receipt of Letter of Acceptance, the successful Bidder shall
furnish to the Employer an irrevocable and unconditional guarantee from a Bank in
the form set forth in Section 8 (the “Performance Security”) for an amount equal to
5% (five percent) of its Contract Price. In case of bids mentioned below, the
successful Bidder, along with the Performance Security,

Sign. of the Contractor Sign. of the Executive Engineer 22

 shall also furnish to the Authority an irrevocable and unconditional guarantee from a
Bank in the same form given at Section 8 towards an Additional Performance
Security (The “Additional Performance Security”) for an amount calculated as under:

(a) If the Contract Price offered by the Selected Bidder is lower than 10% but
upto 20% of the Estimated Project Cost, then the Additional Performance
Security shall be calculated @ 20% of the difference in the (i) Estimated
Project Cost (as mentioned in Bid Document) - Minus 10% of the Estimated
Project Cost and (ii) Contract Price offered by the selected Bidder.
(b) If the Contract Price offered by the Selected Bidder is lower than 20% of the
Estimated Project Cost, then the Additional Performance Security shall be
calculated @ 30% of the difference in the (i) Estimated Project Cost (as
mentioned in Bid Document) - Minus 10% of the Estimated Project Cost and
(ii) Contract Price offered by the selected Bidder.
(c) This Additional Performance Security shall be treated as part of the
Performance Security.
(B) The Performance Security shall be valid beyond 60(sixty) days of the Defects
Liability Period and the Additional Performance Security shall be valid beyond 28
(twenty-eight) days of Project Completion Date.

34.2. If the performance security is provided by the successful Bidder in the form of a Bank
Guarantee, it shall be issued either (a) at the Bidder’s option, by a
Nationalized/Scheduled Indian bank or (b) by a foreign bank located in India and
acceptable to the Employer. As per GoG Finance Department’s Circular No.
FD/MSM/e-file/4/2023/0057/D.M.O. Date 21/04/2023 or as per their latest amendment.

34.3. Failure of the successful Bidder to comply with the requirement of Sub-Clause 34.1
shall constitute sufficient grounds for cancellation of the award and forfeiture of the Bid
Security.

35 Advance Payment and Security

35.1 The Employer will provide an Advance payment on the Contract Price as stipulated in
the Conditions of Contract, subject to maximum amount, as stated in the Contract Data.

36. Deleted

37. Corrupt of Fraudulent Practices

37.1 The Employer will reject a proposal if it determines that the Bidder recommended for
award has engaged in corrupt or fraudulent practices in completing for the contract in
question and will declare the firm ineligible, either indefinitely or for a stated period of
time, to be awarded a contract with National Highways Authority of India/ State PWD
and any other agencies, if it at any time determines that the firm has engaged in corrupt
or fraudulent practices in completing for the contractor, or in execution.
37.2 Furthermore, Bidders shall be aware of the provision stated in Sub- Clause 59.2 of the
Conditions of Contract.

Sign. of the Contractor Sign. of the Executive Engineer 23

 APPENDIX TO ITB
Clause Reference
With respect to
Section –I

1. The Name of the Employer is Executive Engineer, Surat (R&B) [ Cl.1.1]

Division No.2, Surat.
2. The last five years.
2022 – 2023
2021– 2022
2020 – 2021
2019 – 2020
2018 – 2019
3. This Annual Financial Turnover Amount is [Cl.4.5.3 (a)]
Rs.23,18,000.00
4. Value of Work is Rs. 57,93,772.44
5. Deleted
6. The cost of electric work is Rs ……. Nil
7. The cost of water supply / sanitary works is Rs…… Nil
8. Liquid assets and / or availability of credit facilities is [Cl.4.5.6 ]
Rs. 14,49,000.00
9. Price level of the financial year 2023-24 [Cl. 4.5.2]
10. The pre-bid meeting will take place at Executive Engineer, Surat [Cl. 9.2.1]
(R&B) Division No.2 , Surat
11. The technical Bid will be opened at the office of the S.E., Surat
(R&B) Circle, Surat on dt / /2024 at 12.00 . PM
12. Address of the Employer: Superintending Engineer, Surat (R&B)
Circle, Opp. Dutch Garden, Nanpura, Surat-390051.
13. Deleted
14. The bid should be submitted latest by As stated on online [Cl. 20.1 & 20.2]
NIT
15. The bid will be opened at Superintending Engineer, Surat (R&B) [Cl. 23.1 ]
Circle ,Surat As stated online NIT
16. The Bank Draft in favor of ‘Executive Engineer, Surat (R&B)
Division No.2 , Surat
17. Deleted
18. Escalation factors (for the cost of works [Cl.4.5.2]
executed and financial figure to a common base value) for works
completed

Year Financial Year Multiplying factor

Base year of inviting tender 2023-2024 1.00
-1 2022-2023 1.10
-2 2021-2022 1.21
-3 2020-2021 1.33
-4 2019-2020 1.46
-5 2018-2019 1.61

Sign. of the Contractor Sign. of the Executive Engineer 24

 #LIST OF KEY PLANT & EQUIPMENT TO BE DEPLOYED ON CONTRACT WORK
[Reference CL. 4.5.5]

The contractors shall also give a list of machineries in his possession and which they propose to
use on the work.

Sr. Plant or Location Age of Make Capacity Approximate Remark

No. Machinery Machinery Value
(maximum
15
years)
1 2(a) 2(b) 3 4 5 6 7

Sign. of the Contractor Sign. of the Executive Engineer 25

 List of Key Personnel to be deployed on Contract Work (Reference Cl. 4.5.4)

# Employment of a qualified site Engineer by the Contractor.

The Contractor shall employ full-time technically qualified staff during the execution of this work
as under: -
1. Two graduate Civil Engineers and three diploma Civil Engineers when cost of the work to
be executed is more than Rs.50 lakhs.
2. One graduate & two Diploma, Civil Engineers when the cost of the work to be executed is
more than Rs.15 lakhs but less than Rs.50 lakhs.
3. Minimum two Diploma Civil Engineer when the cost of work is less than Rs.15 lakhs but
more than Rs.5 lakhs.
4. Minimum one Diploma Civil Engineers for the work when the cost of work to be executed
is less than Rs. 5 lakhs. The Engineer so employed for the Government work must have
sufficient experience to handle the work independently. Such an Engineer shall have to stay
at the site of work and he shall not be entrusted with other duty except this work.

In case the contractor or partner of the contractor firm is a Civil Graduate Engineer,
Employment of a separate Engineer will not be necessary provided that the Engineer partner
himself attends the execution of the work on the site.

Within 15 days of issue of work-order the Contractor will have to furnish to the Deputy
Executive Engineer-in-charge of the work the Name, Qualifications, copy of marksheet,
Colour Photograph and the appointment order issued such engineers engaged for this
contract work. If 15 days after issue of work order such designated Site Engineers do not
resume or do not remain present on site of work, the recovery at the rate of Rs.15,000-00
per month per Engineer will be made from the bills/deposit/dues of the contractor. Such
recovery shall be non-refundable.

Sign. of the Contractor Sign. of the Executive Engineer 26

 SECTION - 2
QUALIFICATION INFORMATION

Sign. of the Contractor Sign. of the Executive Engineer 27

 QUALIFICATION INFORMATION

The information to be filled in by the Bidder in the following pages will be used for the
purpose of post qualification as provided for in Clause 4 of the Instruction to Bidders. This
information will not be incorporated in the Contract.

1. For Individual Bidders

1.1 Constitution or legal status of Bidder

(Attach Copy)

Place of registration

Principal place of business

Power of attorney of signatory of Bid

(Attach)

1.2 Total value of Civil engineering constructions 2023-2022

Work performed in the last five years 2022-2021
(in Rs. Lakhs) 2021-2020
2020-2019
2019-2018

15.2.1 Work performed as prime contractor, work performed in the past as a nominated sub-
contractor will also be considered the sub-contract involved execution of all main items of
work described in the bid documents, provided further that all other qualification criteria
are satisfied (in the same name) on works of a similar nature over the last five years** and
in current year before the submission of the bid.

Project Name of Description Contract Value of Date of Stipulated Actual date Remark
Name the of work No. contract issue period of of explaining
Employer (Rs. of completion completion* reasons for
Crore) work Delay & work
order Completed

*Attach certificate(s) from the Engineer(s)in-charge

** Immediately preceding the financial year in which bids are received.

Sign. of the Contractor Sign. of the Executive Engineer 28

 #1.3.2 Quantities of work executed as prime contractor, work performed, in the past as a
nominated sub-contractor, will also be considered provided the sub-contract involved
execution of all main items of work described in the bid document, provided, further that
all other qualification criteria are called (in the same name and style) in the last five
years** and in current year before the submission of the bid.

Year Name Name Quantity of work performed (Cum/MT) Remarks*

of the of the Cement Masonry Earth Bituminous (indicate
work Employer Concrete Works Work contract Ref)
(Including
RCC &
PCC)
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19

1.4 Information on Bid Capacity (works for which bids have been submitted and works which
are yet to be completed) as on the date of this bid.

(A) Existing commitments and on-going works:

Description Place Contract Name & Value Stipulated Value of Anticipated

of works & No. Address Contract Period of Works* of
State of (Rs. Cr) Completion remaining completion
Employer to be
completed
(Rs. Cr)
1 2 3 4 5 6 7 8

*Attach certificate (s) from the Engineer(s) in-charge

** Immediately preceding the financial year in which bids are received.

1.5 Availability of key items of Contractors Equipment for carrying out the works (Ref.
Clause 4.5.5). The Bidder should list all the information requested below.

Item of Requirement Availability Proposals Remarks

Equipment NO Capacity Owned/ Nos/. Age/ (from
Leased to be Capacity Conditions whom to
procured be
purchased

Sign. of the Contractor Sign. of the Executive Engineer 29

 1.6 Qualifications and experience of key personnel required for administration and execution
of the contract. Attach biographical data. Refer also to Sub Clause 9.1 of the Conditions
of Contract.

Position Name Qualification Year of Year of experience

Experience in the proposed
(General) position

1.7 Proposed sub-contract and firms involved

Sections of the Value of Sub- Sub-Contractor Experience in
works Contractor (Name & similar work
Address)

Attach copies of certificates on possession of valid license for executing water supply/
sanitary work/ building electrification works.

Sign. of the Contractor Sign. of the Executive Engineer 30

 1.8 Financial reports for the last five years: balance sheets, profit and loss statements,
auditors’ reports (in case of companies/corporations), etc. List them below and attach
copies.

1.9 Evidence of access to financial resources to meet the qualification requirements: cash in
hand, lines of credit, etc. List them below and attach copied documents.

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

1.11 Information on Litigation history in which the Bidder is involved.

Other Party Employer Cause of Amount Remarks

(ies) Dispute Involved showing
Present Status

1.12. Statement of compliance under the requirements of Sub Clause 3.2 of the instruction to
Bidders. (Name of Consultant engaged for project preparations is *................................ )

1.13 Proposed work method and schedule. The Bidder should attach descriptions, drawings and
charts as necessary to comply with the requirements of the Bidding documents. (Refer
ITB Clause 4.1)

1.14 Programme

2. Deleted
3. Additional Requirements
3.1 Bidders should provide any additional information required to fulfill the
requirements of Clause 4 of the Instructions to the Bidders, if applicable.
(i) Affidavit
(ii) Undertaking

* Fill the name of Consultant

Sign. of the Contractor Sign. of the Executive Engineer 31

 SAMPLE FORMAT FOR EVIDENCE OF ACCESS TO OR
AVAILABILITY OF CREDIT FACILITIES

(CLAUSE 4.5.6 OF ITB)

BANK CERTIFICATE

This is to certify that M/s. is a reputed company

with a good financial standing.

If the contract for the work, namely is awarded to the

above firm, we shall be able to provide overdraft/credit facilities to the extent of
Rs. to meet their working capital requirements for executing the above
during the contract period.

(Signature)

Name of Bank

Senior Bank Manager Address

of the Bank

Sign. of the Contractor Sign. of the Executive Engineer 32

 AFFIDAVIT

1. I, the undersigned, do hereby certify that all the statements made in the required
attachments are true and correct.

2. The undersigned also hereby certifies that neither our firm M/s.
have not abandoned any work of
Government of Gujarat/Government of India/any Board or Corporation under
Government of Gujarat/Government of India nor any contract awarded to us for such
works have been rescinded, during last five years prior to the date of this bid.

3. The undersigned hereby authorize(s) and request (s) any bank, person, firm or
corporation to furnish pertinent information deemed necessary and requested by the
Department to verify this statement or regarding any (our) competence and general
reputation.

4. The Undersigned understands and agrees that further qualifying information may be
requested, and agrees to furnish any such information at the request of the Department/
Project implementing agency.

(Signed by an Authorized Officer of the Firm)

Title of Officer

Name of Firm

Date

Sign. of the Contractor Sign. of the Executive Engineer 33

 UNDERTAKING

I, the undersigned do hereby undertake........... that our firm

M/s.............................................................................................. would invest a minimum cash
up to 25% of the value of the work during implementation of the contract.

(Signed by an Authorized officer of the firm)

Title of officer

Name of firm

DATE

Sign. of the Contractor Sign. of the Executive Engineer 34

 SECTION - 3
CONDITIONS OF CONTRACT

Sign. of the Contractor Sign. of the Executive Engineer 35

 Conditions of Contract
Table of Contents

A General Page D. Cost Control

No.
1 Definitions 37 37 Bill of Quantities 49
2 Interpretation 38 38 Changes in the Quantities 49
3 Language and Law 39 39 Variations 49
4 Engineer’s Decisions 39 40 Payments for Variations 49
5 Delegations 39 41 Cash Flow Forecasts 50
6 Communications 39 42 Payment Certificates 51
7 Sub-Contractors 39 43 Payments 51
8 Other Contractors 39 44 Compensations Events 51
9 Personnel 40 45 Tax 52
10 Employer’s & Contractor Risk 40 46 Currencies 52
11 Employers Risks 40 47 Price Adjustment 52
12 Contractor’s Risk 40 48 Retention 52
13 Insurance 40 49 Liquidated damages 53
14 Site Investigations Reports 41 50 Bonus 54
15 Queries about the Contract 41 51 Advance Payment 54
16 Contractors to Construct the works 41 52 Securities 55

17 The Works to be Completed By 41 53 Deleted 55

the Intended Completion Date
18 Approval by the Engineer 41 54 Cost of Repair 55
19 Safety 41
20 Discoveries 42 E. Finishing the Contract
21 Possession of the Site 42 55 Completion 56
22 Access to the Site 42 56 Taking Over 56
23 Instructions 42 57 Final Account 56
24 Disputes 42 58 Operating and Maintenance 56
manuals
25 Procedure for Disputes 43
26 Deleted 43 59 Terminations 56
60 Payment upon Terminations 57
B. Time Control 61 Property 58
27 Programme 44 62 Release from Performance 58
28 Extensions of the Intended 44
completion date
29 Deleted 44 F. Special Conditions of
Contract
30 Delays Ordered by The 44 63 Labour 59
Engineer 64 Compliance with labour 59
regulations
31 Management Meetings 45 65 Arbitration 62
32 Early Warning 45
C. Quality Control
33 Identifying Defects 46
34 Tests 48
35 Correction of Defects 48
36 Uncorrected Defects 48

Sign. of the Contractor Sign. of the Executive Engineer 36

 CONDITIONS OF CONTRACT

A. GENERAL.
1. Definitions

1.1 Terms which are defined in the Contract Data are not also defined in the Conditions of
Contract but keep their defined meaning.

Bill of Quantities means the priced and completed Bill of Quantities forming
part of the Bid

Compensation Events are those defined in Clause 44 hereunder

The Completion Date is the date of completion of the Works as certified by the
Engineer in accordance with Sub Clause 55.1

The Contract is the contract between the Employer and Contractor to execute,
complete and maintain the Works till the completion of Defects Liability Period. It
consists of the documents listed in Clause 2.3 below.

The Contract data defines the documents and other information which comprise
the Contract.

The Contractor is a person or corporate body whose Bid to carry out the Work
has been accepted by the Employer.

The Contractor’s Bid is the completed Bidding document submitted by the

Contractor to the Employer and includes Technical and Financial Bids.

The Contract Price is the price stated in the Letter of Acceptance and thereafter
as adjusted in accordance with the provisions of the Contract.

Days are calendar days: months are calendar months.

The Defects Liability Period is the period named in the Contract Data and
calculated from the Completion Date.

The Employer is the party who will employ the Contractor to carry out the
Works.

The Engineer is the person named in the Contract Data (or any other competent
person appointed and notified to the contractor to act in replacement of the Engineer)
who is responsible for supervising the Contractor, administering the Contract, certifying
payments due to the Contractor, issuing and valuing Variations to the Contract,
awarding extensions of time, and valuing the Compensations Events.

Equipment is Contractor’s machinery and vehicles brought temporarily to the

site to construct the Works.

The Initial Contract Price is the Contract Price listed in the Employer’s Letter
of Acceptance.

Sign. of the Contractor Sign. of the Executive Engineer 37

 The Intended Completion Date is the date on which it is intended that the
Contractor shall complete the Works. The Intended Completion Date is specified in the
Contract Data. The Intended Completion Date may be revised only by the Engineer by
issuing an extension of time.
Materials are all supplies, including consumables, used by the contractor for
incorporation in the works.
Plant is any integral part of the work which is to have mechanical, electrical,
electronic or chemical or biological functions.
The Site is the area defined as such in the Contract Data.
Site Investigation Reports are those which were included in the Bidding
documents and are factual interpretive reports about the surface and subsurface conditions
at the site.
Specifications means the Specifications of the works included in the Contract and
any modification or addition made or approved by the Engineer.

The Start Date is given in the Contract Data. It is the date when the Contractor
shall commence execution of the works. It does not necessarily coincide with any of the
Site Possession Dates.

A Subcontractor is a person or corporate body who has a Contract with the

Contractor to carry out a part of the work in the Contract which includes work on the Site.

Temporary Works are works designed, constructed, installed, and removed by

the Contractor which are needed for construction or installation of the Works.

A Variation is an instruction given by the Engineer, which varies the Works. The

Works are what the Contract requires the Contractor to construct, install,
and turn over to the Employer, as defined in the Contract Data.

2. Interpretation

2.1 In interpreting these Conditions of Contract, singular also means plural, male also
means female or neuter and the other way around. Heading have no significance.
Words have their normal meaning under the language of the Contract unless
specifically defined. The Engineer will provide instructions clarifying queries
about Conditions of Contract.

2.2 If sectional completion is specified in the Contract Data, references in the

Conditions of Contract to the Works, the Completion date, and Intended
Completion Date apply to any Section of the Works (other than references to the
Completion Date and Intended Completion date for the whole works)

2.3 The documents forming the Contract shall be interpreted in the following order of
priority

(1) Agreement
(2) Letter of Acceptance, notice to proceed with works
(3) Contractor’s Bid

Sign. of the Contractor Sign. of the Executive Engineer 38

 (4) Contract Data
(5) Conditions of Contract including Conditions of Contract
(6) Specifications
(7) Drawings
(8) Bills of quantities and
(9) Any other document listed in the Contract Data as forming part of the
Contract.

3. Language and Law

3.1 The language of the Contract and the law governing the Contract are stated in the
Contract Data.

4. Engineers Decisions

4.1 Except where otherwise specifically stated, the Engineer will decide contractual
matters between the Employer and the Contractor in the role representing the
Employer.

5. Delegation

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

6. Communications

6.1 Communications between parties which are referred to in the conditions are
effective only when in writing. A notice shall be effective only when it is delivered
(in terms of Indian Contract Act).

7. Sub-Contracting

7.1 The Contractor may subcontract any portion of work, up to a limit specified in
contract data, with the approval of the engineer but may not assign the Contract
without the approval of the Employer in writing. Subcontracting shall not alter the
Contractor’s obligations. Sub-contracting of supply or specific items of work is
not allowed.

7.2 The sub-contractor must be registered in appropriate class and category for the part
of work to be subcontracted.

8. Other Contractors
8.1 The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities and the Employer between the dates given in the Schedule of
other Contractor. The Contractors shall as refer to in the Contract Data, also
provide facilities and services for them as described in the Schedule. The
employer may modify the schedule of other contractors and shall notify the
contractor of any such modifications.

Sign. of the Contractor Sign. of the Executive Engineer 39

 9. Personnel
9.1 The Contractor shall employ the key personnel named in the Schedule of Key
Personnel as referred to in the Contract Data to carry out the functions stated in the
Schedule or other personnel approved by the Engineer. The Engineer will approve
any proposed replacement of key personnel only if their qualifications, abilities,
and relevant experience are substantially equal to or better than those of the
personnel listed in the Schedule.
9.2 If the engineer asks the Contractor to remove a person who is a member of the
Contractor Staff or his work force stating the reasons the Contractor shall ensure
that the person leaves the Site within seven days and has no further connection
with the work in the Contract.

10. Employer’s and Contractors Risks

10.1 The Employer carries the risk which these Contract states are Employer’s risks,
and the Contractor carries the risks which these Contracts states are Contractors
risk.
11. Employer’s Risks

11.1 The employer is responsible for the excepted risks which are (a) in so far as they
directly affect the execution of the Works, the risks of war, hostilities, invasion, act
of foreign enemies, rebellion, revolution, insurrection or military or usurped
power, civil war, riot commotion or disorder (unless restricted to the Contractor’s
employees), and contamination from any nuclear fuel or nuclear waste or
radioactive toxic explosive.

12. Contractor’s Risks

12.1 All risks of loss of or damages to physical property and of personal injury and
death which arise during and in consequence of the performance of the Contract
other than the excepted risks are the responsibility of the Contractor.

13. Insurance

13.1 The Contractor shall provide, in the joint names of the Employer and the
Contractor, insurance cover from the Start date to the end of the Defects Liability
Period, in the amounts and deductibles stated in the Contract data for the
following events which are due to the Contractor’s risks:

(a) Loss of or damage to the works, Plant and materials,

(b) Loss of or damage to Equipment

(c) Loss of or damages of property (expect the Works, Plant, Materials and
Equipment) in connection with the Contract; and
(d) Personal injury or death.
13.2 Policies and certificates for insurance shall be delivered by the Contractor to the
Engineer for the Engineer’s approval before the Start Date. All such insurance
shall provide for compensation to be payable in the types and proportions of
currencies required to rectify the loss or damage incurred.

Sign. of the Contractor Sign. of the Executive Engineer 40

 13.3 If the Contractor does not provide any of the policies and certificates required, the
Employer may affect the insurance which the Contractor should have provided and
recover the premiums the Employer has paid from payments otherwise due to the
Contractor or, if no payment is due, the payment of the premiums shall be a debt
due.
13.4 Alterations to the terms of an insurance shall not be made without the approval of
the Engineer.

13.5 Both parties shall comply with any conditions of the insurance policies.

14. Site Investigation Report

14.1 The Contractor in preparing the Bid shall rely on any site Investigation reports
referred to in the Contract Data, supplemented by any information available to the
Bidder.
15. Queries about the Contract data

15.1 The engineer will clarify queries on the Contract Data

16. Contractor to Construct the Works

16.1 The Contractor shall construct and install the works in accordance with the
specification and Drawings.

17. The Works to be completed by the Intended Completion Date

17.1 The Contractor may commence execution of the Works on the Start Date and shall
carry out the Works in accordance with the programme submitted by the
Contractor, as updated with the approval of the Engineer, and complete them by
the Intended Completion date

18. Approval by the Engineer

18.1 The Contractor shall submit Specifications and Drawings showing the proposed
Temporary works to the Engineer, who is to approve them if they comply with the
Specifications and drawings.

18.2 The Contractor shall be responsible for design of temporary works.

18.3 The Engineer’s approval shall not alter the contractor responsibility for design of
the Temporary works.

18.4 The Contractor shall obtain approval of third parties to the design of the
Temporary works where required.
18.5 All Drawings prepared by the Contractors for the execution of the temporary or
permanent work are subject to prior approval by the Engineer before their use.

19. Safety
19.1 The Contractor shall be responsible for the safety of all activities on the Site.

Sign. of the Contractor Sign. of the Executive Engineer 41

 20. Discoveries
20.1 Anything of historical or other interest or of significant value unexpectedly
discovered on the site is the property of the Employer. The contractor is to notify
the engineer of such discoveries and carry out the Engineer’s instructions for
dealing with them.
21. Possession of the Site
21.1 The Employer shall give possession of all parts of the site to the Contractor. If
possession of a part is not given by the date stated in the Contract Data the
Employer is deemed to have delayed the start of the relevant activities and this will
be a Compensation Event.
21.2 If within 25% of the time limit of the project, 80% of possession of the site is not
handed over to the Contractor, then contractor/ Employer may fore-close the
contract. Contractor/Employer has to foreclose the work within 30 days after lapse
of 25%-time limit and after 30 days foreclosure option will be closed.

22. Access to the Site

22.1 The Contractor shall allow the Engineer and any person authorized by the
Engineer access to the Site, to any place where work in connection with the
Contract is being carried out or is intended to be carried out and to any place
where materials or plants are being manufactured/ fabricated/ assembled for the
works.

23. Instructions

23.1 The Contractor shall carry out all instructions of the Engineer pertaining to works
which comply with the applicable laws where the site is located.
23.2 The Contractor shall permit the Employer to inspect the Contractor’s accounts
and records relating to the performance of the Contractor and to have them audited
by auditors appointed by the Employer, if so required by the Employer.

24. Disputes
24.1 If the Contractor is of the view that a decision taken by the Engineer was either
outside the authority given to the Engineer by the Contract or that the decision was
wrongly taken, the decision shall be referred to #Superintending Engineer, Surat
(R&B) circle, Surat (Higher Authority)within 14 days of the notification of the
Engineer's decision. If the issue is not resolved, any party can refer the matter for
conciliation within 15 days from the decision given by the #Superintending
Engineer.

24.2
(a) For the work up to Rs.100 Cr., if any of the parties is not satisfied with the
decision of the #Superintending Engineer, Surat (R&B) circle, Surat both the
parties have to refer to the Chief Engineer concern for the conciliation
process.

(b) For the work more than Rs.100 Cr., if any of the parties is not satisfied with
the decision of the #Superintending Engineer, both the parties have to refer to
the #Secretary, Roads & Building Department, Government of Gujarat for
the conciliation process.

Sign. of the Contractor Sign. of the Executive Engineer 42

 If the dispute is not resolved through the conciliation process, he may refer the
dispute to Gujarat Public Works Contract Dispute Arbitration Tribunal. If the
Contractor fails to refer a claim / dispute to the Higher Authority within 14 days of
the notification of the Engineer's decision, the Contractor shall not be entitled to
any additional payment/claim if he doesn’t follow the above sequence in stipulated
time and he should not stop the work.
25. Procedure for Disputers

25.1 The arbitration shall be conducted in accordance with the arbitration

procedure stated in the Special Conditions of Contract.

26. Deleted

Sign. of the Contractor Sign. of the Executive Engineer 43

 B. TIME CONTROL
27. Programme

27.1 Within the time stated in the Contract Data the Contractor shall submit to the
Engineer for approval a Programme showing the general methods, arrangements
orders, and timing for all the activities in the works along with monthly cash flow
forecast.

27.2 An update of the Programme shall be a programme showing the actual progress
achieved on each activity and the effect of the progress achieved on the timing of
the remaining work including any changes to the sequence of the activities.

27.3 The Contractor shall submit to the Engineer, for approval an updated programme
at intervals no longer than the period stated in the Contract data. If the Contractor
does not submit an updated programme within this period, the Engineer may
withhold the amount stated in the Contract data from the next payment after the
date on which the overdue programme has been submitted.

27.4 The Engineer’s approval of the programme shall not alter the Contractor’s
obligations. The Contractor may revise the programme and submit it to the
Engineer again at any time. A revised programme is to show the effect of
Variations and Compensations events.

28. Extension of the Intended Completion Date

28.1 The Engineer shall extend the Intended Completion Date if a compensation Event
occurs or a Variation is issued which makes it impossible for completion to be
achieved by the Intended Completion Date without the Contractor taking steps to
accelerate the remaining work and which would cause the Contractor to incur
additional cost.

28.2 The Engineer shall decide whether and by how much to extend the Intended
Completion Date within 35 days of the Contractor asking the Engineer for a
decision upon the effect of a compensation event or Variation and submitting full
supporting information. If the Contractor has failed to give early warning of a
delay or has failed to cooperate in dealing with a delay, the delay by this failure
shall not be considered in assessing the new Intended Completion Date.

28.3 The Engineer shall within 14 days of receiving full justification from the
contractor for extension of Intended Completion Date refer to the Employer his
decision. The employer shall in not more than 21 days communicate to the
engineer the acceptance or otherwise of the Engineer’s decision. If the employer
fails to give his acceptance, the Engineer shall not grant the extension and the
contractor may refer the matter under Clause 24.1

29. Deleted

30. Delays Ordered by the Engineer

30.1 The Engineer may instruct the Contractor to delay the start or progress of any
activity within the works.

Sign. of the Contractor Sign. of the Executive Engineer 44

 31. Management Meetings
31.1 Either the Engineer or the Contractor may require the other to attend a
management meeting. The business of a management meeting shall be to review
the plans for remaining work and to deal with matters raised in accordance with
the early warning procedure.

31.2 The Engineer shall record the business of management meetings and is to provide
copies of his record to those attending the meeting and to the Employer. The
responsibility of the parties for actions to be taken is to be decided by the Engineer
either at the management meeting or after the management meeting and stated in
writing to all who attended the meeting.

32. Early Warning

32.1 The Contractor is to warn the Engineer at the earliest opportunity of specific likely
future events or circumstances that may adversely affect the quality of the work,
increase the Contract price or delay the execution of works. The Engineer may
require the contractor to provide an estimate of the expected effect of the future
event or circumstance on the contract price and completion date. The estimate is to
be provided by the Contractor as soon as reasonably possible.

32.2 The Contractor shall cooperate with the Engineer in making and considering
proposals for how the effect of such an event or circumstance can be avoided or
reduced by anyone involved in the work and in carrying out any resulting
instruction of the Engineer.

Sign. of the Contractor Sign. of the Executive Engineer 45

 C. QUALITY CONTROL

# 33. Identifying Defects/ Defect liability period

33.1 : Defect liability period : The contractor shall be responsible to make good and
remedy at his own expense any defect which may develop or may be noticed
before the period mentioned hereunder from the certified date of completion. The
Engineer in charge shall give the contractor a notice in writing about the defects
and the contractor shall make good the same within 15 days of receipt of the
notice. In the case of failure on the part of the contractor, the Engineer- in-charge
may rectify or remove or re-execute the work at the risk & cost of the contractor.
The Engineer-in-charge shall be entitled to appropriate the whole or any part of the
amount of security deposit towards the expenses, if any, Incurred by him in
rectification, removal or re-execution. The Defects Liability period shall be as
under….
(a) For all works costing up to Rs. 50,000 (amount put to tender), the period shall be 3
Months from the certified date of completion.
(b) For all works costing more than Rs. 50,000 and up to Rs. 1 crore (amount put
tender), the period shall be 12 (Twelve) months from the certified date of
completion or one monsoon, whichever is later.
(c) For major projects costing more than Rs. 1 crore, the period shall be 36 Months
from the certified date of completion which should include three monsoons.
(d) For original building works the defect liability period will be 4 years or elapse of 4
monsoon period following date of possession of building taken over by user
agency following the certified date of completion, whichever is later.
For the purpose of deciding the monsoon period, the 30th September shall be
treated as the last date.

Modified vide R & B D Circular No. PAC-11-102008-2076-N dated 31/8/2009,

PRCH/102013(2976) 2759-N, Dated 27/05/2013 and Circular
No.TNC/10/2016/Clause 17A (Correction/(1)C Dated 12/05/2016]

33.2 Free maintenance guarantee period for works of Road/Bridge construction

(a) For resurfacing work of road free maintenance guarantee period one year from
the date of completion.

(b) In case of widening of the road/strengthening of the road/bridge, the

contractor shall have to give four years free maintenance guarantee from the
certified date of completion. During this period the contractor shall visit the
site every six months along with the concerned Section Officer / Deputy
Executive Engineer and will examine the work already carried out in this
contract like road work, jungle cutting, side shoulders, side gutter, road
furniture, patta etc. and will prepare Km. wise inspection report duly signed by
all concerned and any defect observed shall be done within 15 days by the
contractor at his risk and cost as per the direction of Engineer in charge. The
contractor needs to do videography of these visits and require to submit at the
time of release of FMG. If B.T. the surface during the maintenance period of 4
years is worn out then agency shall have to provide renewal coating as per
tender item as directed by the Engineer-in- charge. The amount equivalent to
5% of each running bill shall be withheld and will be released after the free
maintenance guarantee period (i.e. 4 years) is over.

Sign. of the Contractor Sign. of the Executive Engineer 46

 However, this amount shall be released against fixed deposit or bank
guarantee pledged in the name of Executive Engineer after completion
certificate of work is issued.

(1) The flakiness and elongation index (combined) for coarse aggregates under no
circumstances shall exceed the allowable limit set forth in the relevant clause
for the material in question.
(2) 2% of the amount eligible for the payment of bituminous items shall be
withheld till the miscellaneous items like earthwork in embankment / cutting
for side shoulders, side gutters, kilometer / indicator / guard stones, sign boards
etc. are completed in all respect by the contractor. After completion of the
miscellaneous items, the above said 2% withheld amount shall be released.
(Govt. of Gujarat's G.R. No.: TNC-10-2013-3(Part-3)/C, Dtd. 13/12/2013).
(3) Videography for the surface under Maintenance Guarantee is to be done as per
Govt. letter No.: SSR/10/2015-16/26/C, Dtd. 26/11/15 for the work costing
more than Rs. 5.00 Crore.
(4) Setting up of adequate laboratory & deployment of quality engineers.
The contractor shall have to set up the laboratory with adequate equipment.
Till the setting up of adequate laboratory is completed & reported of this to the
engineer (subject to due verification by engineer’s representative) by
contractor in writing, Rs.2,00,000/- shall be withheld. The qualified quality
Engineer shall be deployed exclusively for this contract by the contractors. If
quality Engineer is not deployed by contractor within one month after the date
of work order, the amount equivalent to Rs.20,000 per month shall be
recovered till the actual deployment of quality engineer. The amount so
recovered towards the deployment of quality engineers shall not be refunded.
(5) Asphalt work will have to be cross checked as per G.R. No.:
RGN/60/2006/35/C, dtd.31/05/07 before final bill is paid.
(6) Maintenance during Construction Period
During the Construction Period, the Contractor shall maintain, at his own risk
and cost, the existing lane(s) of the road so that the traffic worthiness and
safety thereof are at no time materially inferior as compared to their condition
10 (ten) days prior to the date of the Agreement, and shall undertake the
necessary repair and maintenance works for this purpose; provided that the
Contractor may, at his cost, interrupt and divert the flow of traffic if such
interruption and diversion is necessary for the efficient progress of works and
conforms to Good Industry Practice; provided

Sign. of the Contractor Sign. of the Executive Engineer 47

 further that such interruption and diversion shall be undertaken by the
Contractor only with the prior written approval of the Executive Engineer
which approval shall not be unreasonably withheld. For the avoidance of
doubt, it is agreed that the Contractor shall at all times be responsible for
ensuring safe operation of the road.
33.3 The Engineer shall check the Contractor’s work and notify the Contractor of any
defects that are found. Such checking shall not affect the Contractor’s
responsibilities the Engineer may instruct the Contractor to search for a Defect and
to uncover and test any work that the Engineer considers may have a Defect.
34. Tests

34.1 If the engineer instructs the Contractor to carry out a test not specified in the
Specification to check whether any work has a Defect and the test shows that it
does, the Contractor shall pay for the test and any samples. If there is no defect the
test shall be a Compensation Event.

34.2 #1% of the amount of work done should be deducted from R.A. Bill of the
contractor for testing the quality of material workmanship, irrespective of actual
charges.

34.3 Agency has to establish testing laboratory on site for the various test to be carried
out in the work for this purpose agency shall construct a pukka laboratory building
with all facility on site at location specified by the engineer in charge.

35. Correction of defects

35.1 The engineer shall give notice to the Contractor of any defects before the end of
the defects Liability Period, which begins at Completion and is defined in the
contract data. The Defects Liability Period shall be extended for as long as Defects
remain to be corrected.
35.2 Every time notice of a Defect is given, the Contractor shall correct the notified
defect within the length of time specified by the Engineer’s notice.
36. Uncorrected Defects
36.1 If the Contractor has not corrected a defect within the time specified in the
Engineer’s notice, the Engineer will assess the cost of having the Defect corrected,
and the Contractor will pay this amount.

Sign. of the Contractor Sign. of the Executive Engineer 48

 D. COST CONTROL

37. Bill of Quantities

37.1 The bill of Quantities shall contain items for the constructions, installation,
testing and commissioning work to be done by the Contractor.

37.2 The bill of Quantities is used to calculate the Contract price. The Contractor is paid
for the quantity of the work done at the rate in the Bill of Quantities for each item.

38. Change in the Quantities

38.1 The Engineer shall have power to make any alterations in or addition to the
original specifications , drawings, designs and instructions that may appear to him
to be necessary or advisable during the progress of the work and the contractor
shall be bound to carry out the work in accordance with any instruction in this
connection which may be given to him in writing signed by the Engineer and such
alteration shall not invalidate the contract and any additional work which the
contractor may be directed to do in the manner above specified as part of the work
shall be carried out by the contractor on the same conditions in all respects on
which he agreed to do the main work and at the same rate as are specified in the
tender for the main work.

Except that when the quantity of any item exceeds the quantity as in the tender by
more than 130%, the contractor will be paid for the quantity in excess of 130%, at
the rate entered in the SOR of the year during which the excess in quantity is first
executed.

39. Variations

39.1 All Variations shall be included in updated programmes produced by the

Contractor.

40. Payments for Variations

40.1 If the additional or altered work includes any class of work for which no rate is
specified in this contract, then such class of work shall be carried out as under.

(i) At the rate derived from the item within the contract which is comparable to the
one involving additional or altered class of work; where there are more than one
comparable items, the item of the contract which is nearest in comparison with
regard to class or classes of the work involved shall be selected and the decision of
the Superintending Engineer as to the nearest comparable item shall be final and
binding on the contractor.

(ii)If the rate cannot be derived in accordance with (i) above, such class of works shall
be carried out at the rate entered in the Schedule of Rates of the division

Sign. of the Contractor Sign. of the Executive Engineer 49

 for the year in which the tender was received, increased or decreased by the
percentage by which the tender amount is more or less as compared to the amount
arrived at the rates in the “Schedule of Rates” of the Division in the year in which
the tender was received. If the Schedule of rates of the Division does not contain
all the items, the percentage increase or decrease of the tender shall be calculated
considering such items which were included in the “Scheduled Rates” of the
division for the year and for materials consumed on such item the rate to be
charged would be the basic rate taken into account for fixing the rate in S.O.R.
referred to above.

(iii) If it is not possible to arrive at the rate from (i) and (ii) above, such class of work
shall be carried out at the rate decided by the competent authorities on the basis of
detailed rate analysis after hearing the contractor before a Committee of two
Superintending Engineers stationed at the same place or the nearest place.

40.2 If the additional or altered work, for which no rate is entered in the “Schedule of
Rates” of the Division is ordered to be carried out before the rate is agreed upon,
then the contractor shall within seven days of the date of receipt by him of the
order to carry out the work, inform the Engineer-in-charge of the rate, which it is
his intention to charge for such class of work and if the Engineer in charge does
not agree to this rates, he shall by notice in writing be at liberty to cancel his order
to carry out such class of work and arrange to carry it out in such manner as he
may consider it advisable, provided always that if the contractor shall commence
work or incur any expenditure in regard thereof before the rates shall have been
determined as lastly herein before mentioned, then in such cases he shall only be
entitled to be paid in respect of the work carried out or expenditure incurred by
him prior to the date of the determination of the rate as aforesaid according to such
rate or rates as shall be fixed by the Engineer-in-charge. In the event of the dispute,
the decision of the Superintending Engineer of the Circle shall be final.
Where, however, the work is to be executed according to the designs,
drawings and specifications recommended by the contractor and accepted by the
competent authority, the alternation above referred to shall be within the scope of
such designs, drawings and specifications appended to the tenders.
The time limit for the completion of the work shall be extended in the
proportion that the increase in the cost occasioned by alterations bears to the cost
of the original work and the certificate of the Engineer-in-charge as to such
proportion shall be final and conclusive.

41. Cash Flow Forecasts

41.1 When the programme is updated, the contractor is to provide the engineer with an
updated cash flow forecast.

Sign. of the Contractor Sign. of the Executive Engineer 50

 42. Payment certificates.

42.1 The Contractor shall submit to the Engineer monthly statements of the estimated
value of the work completed less the cumulative amount certified previously.

42.2 The Engineer shall check the Contractor’s monthly statement within 14 days and
certify the amount to be paid to the Contractor after taking in to account any credit
or debit for the month in question in respect of materials for the works in the
relevant amounts and under conditions set forth in sub-clause
32.3 of the Contract Data (secured Advance).

42.3 The value of work executed shall be determined by the Engineer.

42.4 The value of work executed shall comprise the value of the quantities of the items
in the Bill of Quantities completed.
42.5 The value of work executed shall include the valuation of variations and
compensation events.
42.6 The Engineer may exclude any item certified in a previous certificate or reduce the
proportion of any item previously certified in any certificate in the light of later
information

43. Payments

43.1 Payments shall be adjusted for deductions for advance payments, retention, other
recoveries in terms of the contract and taxes at source, as applicable under the law.
The Employer shall pay the Contractor the amounts certified by the Engineer
within 28 days of the date of each certificate.
43.2 Payment of GST (prevailing rates) on the amount payable under the contract to the
Contractor will be made by the Employer. Hence, it is the responsibility of the
contractor to pay the GST inclusive to the concerned Authority.
43.3 Items of the works for which no rate or price has been entered in will not be paid
by the Employer and shall be deemed covered by other rates and prices in the
Contract.

44. Compensation events

44.1 The following are compensation Events unless they are caused by the Contractor:
(a) The Employer does not give access to a part of the Site by the site
Possession date stated in Contract data to the Contractor

44.2 In case of compensation event occurs and it prevents the work being completed
beyond the Intended Completion Date then Authority will approve EOT with
eligible contractual price escalation.

Sign. of the Contractor Sign. of the Executive Engineer 51

 45. Tax

45.1 The rates quoted by the Contractor must be inclusive of all taxes prevailing on due
date of bid submission except GST. However, any subsequent changes in the tax
structure by Government after due date of bid submission will be compensated (+/-
) on availability or submission of actual documentation. Contractor will have to
intimate Engineer regarding changes occurred in the tax structure after bid
submission. If the contractor fails to provide such information and if any financial
obligation may arise due to change in tax structure, same will be recovered from
the contractor.

45.2 GST will be paid separately on the bills. Hence, it is the responsibility of the
contractor to pay the GST to the concerned Authority.
46. Currencies.
46.1 All payment shall be made in Indian Rupees.

47. Price Adjustment

47.1 Contract price shall be adjusted for increase or decrease in rates and price of
labour, materials, fuels and lubricants in accordance with the following principles
and procedures and as per formula given in the contract data:

(a) The price adjustment shall apply for the work done from the start date given in
the contract data up to end of the initial intended completion date or extensions
granted by the Engineer and shall not apply to the work carried out beyond the
stipulated time for reasons attributable to the contractor.
(b) The price adjustment shall be determined during each month from the formula
given in the contract data.
(c) Following expressions and meanings during to the work done during each
month
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.

47.2 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 clause 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.

48. Retention

48.1 The Employer shall retain from each payment due to Contractor the proportion
stated in the Contract Data until Completion of the whole of the Works.

Sign. of the Contractor Sign. of the Executive Engineer 52

 48.2 On Completion of the whole of the Works half the total amount retained is repaid
to the Contractor and half when the Defects Liability Period has passed and the
Engineer has certified that all Defects notified by the Engineer to the Contractor
before the end of this period have been corrected.

48.3 On completion of the whole works, the contractor may substitute retention money
with an “on demand” Bank guarantee.

In case, Contractor requests for refund of the Retention Money deducted by

the Employer under the provision of this clause, Employer shall consider the said
request of the Contractor provided that the refund hereunder shall be made in
tranches of not less than 1% (One Percent) of the Contract Price and Contractor
furnishes an irrevocable and unconditional Bank guarantee for an equal amount
substantially in the format of Bank Guarantee for Performance Guarantee enclosed
with SBD and valid up to 60 day beyond the scheduled / extended Defects
Liability Period. On completion of the whole works, the contractor has however an
option to submit a fresh irrevocable and unconditional Bank Guarantee for an
amount equal to 5% of the total value of work executed substantially in the format
of Bank Guarantee for Performance Guarantee enclosed with SBD and valid up to
60 days beyond the Defect Liability Period and yet refund the Retention Money
Bank Guarantee submitted for refund of Retention Money.

49. Liquidated Damages

49.1 The Contractor shall pay liquidated damages to the Employer at the rate per day
stated in the Contract Data for each day that the Completion Date is later than the
Intended Completion Date (for the whole works or the milestone as stated in the
contract data). The total amount of liquidated damages shall not exceed the amount
defined in the Contract Data. The Employer may deduct liquidated damages from
payment due to the Contractor. Payment of liquidated damages does not affect the
Contractor’s liabilities.

49.2 If the Intended Completion Date is extended after liquidated damages have been
paid, the Engineer shall correct any overpayment of liquidated damages by the
Contractor by adjusting the next payment certificate. The Contractor shall not be
entitled for any interest on the over payment calculated from the date of payment
to the date of repayment.

49.3 If the contractor fails to comply with the time for completion as stipulated in the
tender, then the contractor shall pay to the employer the relevant sum stated in the
Contract Data as Liquidated damages for such default and not as penalty for
everyday or part of day which shall elapse between relevant time for completion
and the date stated in the taking over certificate of the whole of the works on the
relevant section, subject to the limit stated in the contract data.
The employer may, without prejudice to any other method of recovery
deduct the amount of such damages from any monies due or to become due to the
contractor. The payment or deduction of such damages shall not relieve

Sign. of the Contractor Sign. of the Executive Engineer 53

 the contractor from his obligation to complete the works on from any other of his
obligations and liabilities under the contract.

49.4 If, before the Time for Completion of the whole of the Works or, if applicable any
Section, a Taking Over Certificate has been issued for any part of the Works or of
a Section, the liquidated damages for delay in completion of the remainder of the
Works or of that Section shall, for any period of delay after the date stated in such
Taking-Over-Certificate, and in the absence of alternative provisions in the
Contract, be reduced in the proportion which the value of the part so certified bears
to the value of the whole of the Works or Section, as applicable. The provisions of
this Sub-clause shall only apply to the rate of liquidated damages and shall not
affect the limit thereof.

50 Bonus

50.1 If the contractor achieves completion of the whole of the works prior to the
intended Completion Date prescribed in Contract Data the Employer shall pay to
the contractor a sum stated in Contract Data as bonus for every completed month
but subjected to maximum amount as stated in Contract Data; which shall
elapse between the date of completion of all items of works as stipulated in the
contract, including variations ordered by the Engineer and the time prescribed in
Clause 17.

50.2 Bonus shall be paid only to works amounting to above INR 5 crore with time limit
of the works is equal or more than 6 months. The bonus would be paid as under

% of Time Saved % of Initial Contract Price

entitled for Bonus
50 % 5%
40 % 4%
30 % 3%
20 % 2%
10 % 1%
Less than 10% 0%

51. Advance Payment.

51.1 The Employer shall make advance payment (not to be paid less than two
installments except in special circumstances for which the reason to be Recorded
in writing) to the Contractor of the amounts stated in the Contract Date by the date
stated in the Contract Date, against provision by the Contactor of an Unconditional
Bank Guarantee in a form and by a bank acceptable to the Employer in amounts
and currencies equal to be at least 110% of the advance payment. The guarantee
shall remain effective until the

Sign. of the Contractor Sign. of the Executive Engineer 54

 advance payment has been repaid, but the amount of the guarantee shall be
progressively reduced by the amounts repaid by the Contractor. The Mobilization
advance would be deemed as interest bearing advance at an interest rate of 10 % to
be compounded, quarterly.

51.2 The Contractor is to use the advance payment only to pay for Equipment, plant
and Mobilization expenses required specifically for execution of the Works. The
Contractor shall demonstrate that advance payment has been used in this way by
supplying copies of invoices or other documents to the engineer.

51.3 The advance payment shall be repaid by deduction proportionate amount from
payments otherwise due to the Contractor, following the schedule of completed
percentages of the Works on a payment basis. No account shall be taken of the
advance payment or its repayment in assessing valuations of work done,
variations, price adjustments, Compensation Events, or Liquidated damages.

51.4 Deleted

52. Securities

52.1 The performance Security (including additional security for unbalanced bids) shall
be provided to the Employer no later than the date specified in the Letter of
Acceptance and shall be issued in an amount and form and by a bank or surety
acceptable to the Employer, and denominated in Indian Rupees. The performance
Security shall be valid until a date 60 days from the date of expiry of Defects
Liability Period and the additional security for unbalanced bids shall be valid until
a date 28 days from the date of issue of the certificate of completion.

53. Deleted

54. Cost of Repairs.

54.1 Loss or damage to the Works or Materials to be incorporated in the Works

between the Start date and the end of Defects Correction periods shall be remedied
by the Contractor at the Contractor’s cost if the loss or damages arises from the
Contractor’s acts or omissions.

Sign. of the Contractor Sign. of the Executive Engineer 55

 E. FINISHING THE CONTRACT

55. Completion

55.1 The Contractor shall request the Engineer to issue a Certificate of Completion of
the works and the Engineer will do so upon deciding that the work is completed.

56. Taking Over

56.1 The Employer shall take over the Site and the Works within seven days of the
Engineer issuing a certificate of Completion.

57. Final Account

57.1 The Contractor shall supply to the Engineer a detailed final account of the total
amount that the Contractor considers payable as full and final settlement of all
claims under the Contract for items before the end of the Defects Liability Period.
The Engineer shall issue a Defect Liability Certificate and certify any final
payment that is due to the Contractor within 56 days of receiving the Contractor's
account if it is correct and complete. If it is not, the Engineer shall issue within 56
days a schedule that states the scope of the corrections or additions that are
necessary. If the Final Account is still unsatisfactory after it has been resubmitted,
the Engineer shall decide on the amount payable to the Contractor and issue a
payment certificate, within 56 days of receiving the Contractor’s revised account.
57.2 If reversal in characteristic of tender (L1 becoming L2) on account of excesses and
savings in final account is observed, the Engineer/Employer shall be at liberty to
restrict the final payment of BOQ items to the lowest amount evaluated of the bids
considering the final quantities and the rates quoted including the rebates if any.
Payment of variation items shall however be made at the rates approved by the
Employer, within 90 days from the physical completion of work.

58. Operating and Maintenance Manuals

58.1 If “as built” drawings and/or operating and maintenance manuals are required, the
Contractor shall supply them by the dates stated in the Contract data.

58.2 If the Contractor does not supply the Drawings and/or manuals by the dates stated
in the Contract data, or they do not receive the Engineer’s approval, the Engineer
shall withhold the amount stated in the Contract Data from payments due to the
Contractor.

59. Termination
59.1 The Employer or the Contractor may terminate the Contract if the other party
causes a fundamental breach of the Contract.

Sign. of the Contractor Sign. of the Executive Engineer 56

 59.2 Fundamental breaches of Contract include, but shall not be limited to the
following:

1. The contractor stops work for 28 days when no stoppage of work is shown on
the current programme and the stoppage has not been authorized by the
Engineer

2. The Engineer instructs the Contractor to delay the progress of the Works and
the instructions is not withdrawn within 28 days;

3. The Employer or the Contractor is made bankrupt or goes into liquidation

other than for a reconstructions or amalgamation

4. A payment certified by the Engineer is not paid by the Employer to the

Contractor within 56 days of the date of the Engineer’s certificate

5. The Engineer gives Notice that failure to correct a particular Defect is a

fundamental breach of Contract and the Contractor fails to correct it within a
reasonable period of time determined by the Engineer;

6. The Contractor does not maintain a security which is required;

7. The Contractor has delayed the completion of works by the number of days for
which the maximum amount of liquidated damages can be paid as defined in
the Contract data; and

8. If the Contractor, in the judgment of the Employer has engaged in corrupt or

fraudulent practices in competing for or in executing the Contract.

For the purpose of this paragraph: “corrupt practice” means the offering,
giving, receiving or soliciting of anything of value to influence the action of a
public official in the procurement process or in contract execution. “Fraudulent
practice” means a misrepresentation of facts in order to influence a procurement
process or the execution of a contract to the detriment of the borrower, and
includes collusive practice among Bidders (prior to or after bid submission)
designed to establish bid prices at artificial non-competitive levels and to deprive
the Borrower of the benefits of free and open competition.

59.3 When either party to the Contract gives notice of a breach of contract to the
Engineer for a cause other than those listed under Sub Clause 59.2 above, the
Engineer shall decide whether the breach is fundamental or not.

59.4 Notwithstanding the above, the employer may terminate the Contract for
convenience.

60. Payment upon Termination

60.1 If the Contract is terminated because of a fundamental breach of Contract by the

Contractor, the Engineer shall issue a Certificate for the value of the work done
less advance payments received up to the date of the issue of the

Sign. of the Contractor Sign. of the Executive Engineer 57

 certificate, less other recoveries due in terms of the contract, less taxes due to
deducted at source as per applicable law and less the percentage to apply to the
work not completed as indicated in the Contract data. Additional Liquidated
Damages shall not apply. If the total amount due to the Employer exceeds any
payment due to the Contractor the difference shall be a debt payable to the
Employer.
60.2 If the Contract is terminated at the Employer’s convenience or because of a
fundamental breach of Contract by the Employer, the Engineer shall issue a
certificate for the value of the work done, the cost of balance material brought by
the contractor and available at site, the reasonable cost of removal of equipment,
repatriation of the Contractor’s personnel employed solely on the works, and the
Contractor’s cost of protecting and securing the Works and less advance payment
received up to the date of the certificate, less other recoveries due in terms of the
contract and less taxes due to deducted at source as per applicable law.

61. Property

61.1 All materials on the Site, Plant Equipments, Temporary Works and Works are
deemed to be property of the Employer, if the Contract is terminated because of a
Contractor’s default.

62. Release from Performance

62.1 If the Contract is frustrated by the outbreak of war of by any other event entirely
outside the control of either the Employer or the Contractor the Engineer shall
certify that the Contract has been frustrated. The Contractor shall make the Site
safe and stop work as quickly as possible after receiving this certificate and shall
be paid for all work carried out before receiving it and for any work carried out
afterwards to which commitment was made.

Sign. of the Contractor Sign. of the Executive Engineer 58

 F. SPECIAL CONDITIONS OF CONTRACT

63. LABOUR

The Contractor shall, unless otherwise provided in the Contract, make his
own arrangements for the engagement of all staff and labour, local or other, and
for their payment of housing, feeding and transport.

The Contractor shall, if required by the Engineer, deliver to the Engineer a

return in detail, in such form and at such intervals as the Engineer may prescribe,
showing the staff and the numbers of the several classes of labour from time to
time employed by the Contractor on the site and such other information as the
Engineer may require.

64. COMPLIANCE WITH LABOUR REGULATIONS

During continuance of the contact, the Contractor and his sub- contractor
shall abide at all times by all existing labour enactments and rules made
thereunder, regulations, notification and bye laws of the State or central
Government or local authority and any other labour law (including rules),
regulations, bye laws that may be passed or notifications that may be issued under
any labour law in future either by the State or the Central Government or the local
authority. Salient features of some of the major labour laws that are applicable to
the construction industry are given below. The Contractor shall keep the Employer
indemnified in case any action is taken against the Employer by the competent
authority on account of contravention of any of the provisions of any Act or rules
made thereunder, regulations or notifications including amendments. If the
Employer is caused to pay or reimburse, such amounts as may be necessary to
cause or observe, or for observance of the provisions stipulated in the
notifications/bye laws/Acts/Rules/regulations including amendments, if any, on the
part of the Contractor, the Engineer/employer shall have the right to deduct any
money due to the Contractor including his amount of performance security. The
Employer/Engineer shall also have the right to recover from the Contractor any
sum required or estimated to be required for making good the loss or damage
suffered by the Employer.
The employees of the Contractor and the Sub-Contractor in no case shall be
treated as the employees of the Employer at any point to time.

Sign. of the Contractor Sign. of the Executive Engineer 59

 SALIENT FEATURES OF SOME MAJOR LABOUR AND OTHER LAWS APPLICABLE TO
ESTABLISHMENTS ENGAGED IN BUILDING AND OTHER CONSTRUCTIONS WORK

A) Workmen Compensation Act 1923 :- The Act provides for compensation in case of
injury by accident arising out of and during the course of employment.

B) Payment of Gratuity Act. 1972 :- Gratuity is payable to an employee under the Act
on satisfaction of certain conditions on separation if an employee has completed 5
years service or more on death, the rate of 15 days wages for every completed year of
service. The Act is applicable to all establishments employing 10 or more employees.

C) Employees P.F. and Miscellaneous Provision Act 1952:- The Act Provides for
monthly contributions by the employer plus workers @ 10% or 8.33% The benefits
payable under the Act are :

1. Pension or family pension on retirement or death, as the case may be.

2. Deposit linked insurance on the death in harness of the worker.
3. Payment of P.F. accumulation on retirement/death etc.

D) Maternity Benefit Act 1951 :- The Act provides for leave and some other benefits to
women employees in case of confinement or miscarriage etc.

E) Contract Labour (Regulation & Abolition) Act 1970 : The Act provides for certain
welfare measures to be provided by the Contractor to contract labour and in case the
Contractor fails to provide, the same are required to be provided, by the Principal
Employer by Law. The principal Employer is required to take Certificate of
Registration and the Contractor is required to take license from the designated Officer.
The Act is applicable to the establishments or Contractor of Principal Employer, if
they employ 20 or more contract labour.

F) Minimum Wages Act 1948 :- The Employer is supposed to pay not less than the
Minimum Wages fixed by appropriate Government as per provisions of the Act, if the
employment is a scheduled employment. Construction of Building, Roads, Runways
are scheduled employment.

G) Payments of wages Act 1936:- It lays down as to by what date the wages are to be
paid, when it will be paid and what deductions can be made from the wages of the
workers.

H) Equal remunerations Act 1979 :- The Act provides for payment of equal wages for
work of equal nature to Male and Female workers and for not making discrimination
against female employees in the matter of transfer, training and promotions etc.

I) Payments of Bonus Act 1965 :- The Act is applicable to all establishments

employing 20 or more employees. The Act provides for payments of annual bonus
subject to a minimum of 8.33% of wages and maximum of 20 % of wages to
employees drawing Rs. 3500/- per month or less. The bonus to be paid to employees
getting Rs, 2500/- per month or above Rs. 3500/- per month shall be worked out by
taking wages as Rs. 2500/- per month only. The Act does not

Sign. of the Contractor Sign. of the Executive Engineer 60

 apply to certain establishments. The newly set-up establishments are exempted for
five years in certain circumstances. Some of the State Governments have reduced the
employment size from 20 to 10 for the purpose of applicability of this Act.

J) Industrial Disputes Act 1947 :- The Act lays down the machinery and procedure for
resolutions of Industrial disputes, in what situations a strike or lock-out becomes
illegal and what are the requirements for laying off or retrenching the employees or
closing down the establishment.

K) Industrial employment (standing Orders) Act 1946 :- It is applicable to all

establishments employing 100 or more workmen (employment size reduced by some
of the State and Central Government to 50). The Act provides for laying down rules
governing the conditions of employment by the Employer on matters provided in the
Act and get the same certified by the designated Authority.

L) Trade Unions Act 1926:- The Act lays the procedure for registration of trade unions
of workmen and employers. The Trade Unions registered under the Act have given
certain immunities from civil and criminal liabilities.

M) Child Labour (Prohibition & Regulation Act 1986 :- The Act prohibits
employment of children below 14 years of age in certain occupations and process and
provides for regulation of employment of children in all other occupations and
processes. Employment of Child labour is prohibited in Building and Construction
Industry.

N) Inter – State Migrant workmen’s (Regulation of Employment & Conditions of

service) Act 1979:- The Act is applicable to an establishment which employs 5 or
more inter-state migrant workmen through an intermediary (who has recruited
workmen in one state for employment in the establishment situated in another
state).The inter-state migrant workmen, is an establishment to which this Act
becomes applicable, are required to be provided certain facilities such as housing,
medical aid, traveling expenses from home upto the establishment and back, etc.

O) The Building and Other Construction workers (Regulation of employment and

Conditions of Service) Act 1996 and the Cess Act of 1996:- All the establishments
who carry on any building or other constructions work and employ 10 or more
workers are covered under this Act.
All such establishments are required to pay cess at the rate not exceeding 2% of the
cost of construction as may be modified by the government. The Employer of the
establishment is required to provide safety measures at the Building or construction
work and other welfare measures, such as canteens, First Aid facilities, Ambulance,
Housing accommodations for workers near the workplace etc. The Employer to
whom the Act applies has to obtain a registration certificate from the Registering
Officers appointed by the Government.

Sign. of the Contractor Sign. of the Executive Engineer 61

 P) Factories Act 1948 :- The Act lays down the procedure for approval of plans before
setting up a factory, health and safety provisions, welfare provisions, working hours,
annual earned leave and rendering information regarding accidents or dangerous
occurrences to designated authorities. It is applicable to premises employing 10
persons or more with aid of power or 20 or more persons without the aid of power
engaged in the manufacturing process.

Q) Royalty charges-The contractor shall pay the royalty to the competent authority as
per rule. The royalty charges paid shall be borne by the contractor and shall not be
reimbursed by the Employer.

R) Following Pollution control Acts and amendments made thereof from time to
time shall be applicable.

1. Water (Preservation and control of Pollution) Act, 1974

2. Air (Prevention and Control of Pollution Act 1981
3. Environmental (Protection) Act 1986

The contractor must commit to adopting Environmental management plan for

best energy use, waste management, the reduction of pollution as in EMS
(Environmental Management system)ISO-14001- 2015

65. ARBITRATION (GCC Clause 24)

The procedure for arbitration will be as follows: -

24.1 If the Contractor is of the view that a decision taken by the Engineer was either
outside the authority given to the Engineer by the Contract or that the decision was
wrongly taken, the decision shall be referred to #Superintending Engineer, Surat
(R&B) circle, surat (Higher Authority) within 14 days of the notification of the
Engineer's decision. If the issue is not resolved, any party can refer the matter for
conciliation within 15 days from the decision given by the #Superintending
Engineer.

24.2
(a) For the work up to Rs.100 Cr., if any of the parties is not satisfied with the
decision of the #Superintending Engineer, both the parties have to refer to the
#Chief Engineer concerned for the conciliation process.
(b) For the work more than Rs.100 Cr., if any of the parties is not satisfied with
the decision of the Superintending Engineer, both parties have to refer to the
#Secretary, Roads & Building Department, Government of Gujarat for the
conciliation process.
If the dispute is not resolved through the conciliation process, contractor
may refer the dispute to Gujarat Public Works Contract Dispute Arbitration
Tribunal. If the Contractor fails to refer a claim / dispute to the Higher
Authority within 14 days of the notification of the Engineer's decision, the
Contractor shall not be entitled to any additional payment/claim if he doesn’t
follow the above sequence in stipulated time. However, during such period, he
would not stop the work in any case.

Sign. of the Contractor Sign. of the Executive Engineer 62

 SECTION - 4
CONTRACT DATA

Sign. of the Contractor Sign. of the Executive Engineer 63

 #CONTRACT DATA

Clause Reference With

respect To section 3
Item marked “N/A” do not apply to this Contract.

1. The Employers is [CL.1.1]

Name : Executive Engineer, Surat (R&B) Division No.2 , Surat
Address: Executive Engineer, Surat (R&B) Division No.2 , opp.
Dutch Garden, Nanpura Surat 395001.
Name of authorized Representative (will be intimated later)
2. The Engineer is The Executive Engineer, Surat (R&B) Division
No.2,Surat
Name of Authorized Representative: ………………….
3. The Defects Liability Period is 3 (Three) years from the date of [CL.1.1&33]
completion.
4. The Start Date shall be 1st days for the date of issue of the Notice to [CL.1.1]
proceed with the work.

5. The Intended Completion Date for the whole of the works is [CL.1.1,17&2]
9 Months after start of work with the following milestones:
Milestone dates: [CL.2.2& 49.1]
Physical works to be completed Period from the start date
Milestone 1 i.e. 25 % 68 Days
Milestone 2 i.e. 50 % 135 Days
Milestone 3 i.e. 75 % 203 Days
Milestone 4 i.e. 100% 270 Days
6. The Site is located at………………………………………….. [CL.1.1]
7. The name and identification number of the Contract is: [CL.1.1]
8. The works consist of RS.57,93,772.44…with items as per B.O.Q. The [CL.1.1]
works shall, inter alia, include the following, as Specified, or as directed:

(A) Road Works

Site clearance; setting – out and layout; widening of existing
carriageway and strengthening including camber corrections;
construction of new road/ Parallel service road; bituminous pavements
remodeling/construction of Junctions, intersections, bus bays, lay-bays;
supplying and placing of drainage Channels, flumes, guard posts and
guard other related items; construction/extension of cross drainage
works, bridge, approaches and other related stones; protective works for
roads/bridge; all aspects of quality assurance of various components of
the works; rectification of The defects in the completed works during the
Defects Liability Period; submission of “As- built’’ drawings and any
other related documents; and other item of work as may be required
to be carried out for completing the work in
accordance with the drawings and the provisions of the contract and to
ensure safety.

Sign. of the Contractor Sign. of the Executive Engineer 64

 (B) Bridge Works
Site clearance; setting out, provision of foundations, piers abutments
and bearing; prestressed/reinforced cement concrete superstructure;
wearing coat, hand railings, expansion joints, approach slabs,
drainages spouts/ down take pipes, arrangements for fixing light
posts, water mains, utilities etc.; provision of suitably designed
protective works; providing wing/return walls; provision of road
markings, road signs etc.; all aspects of quality assurance; clearing the
site and handing over the works on completion; rectification of the
defects during the Defects Liability Period and submission of “As-
built” drawings and other related documents; and other items of work
as may be required to be carried out for completing the works in [CL.1.1]
accordance with the drawings and the provisions of the contract and
to Insure safety
(C) Other Items [CL.2.3(9)]
Any Other Items as required to fulfill all contractual obligations as per the
Bid documents.
10. The following documents also form part of the Contract:
As per clause 2-3

11. The law which applies to the Contract is the law of Union of India [CL.3.1]

12. The language of the Contract documents is English [CL.3.1]

13. Limit of subcontracting 25% of the Initial Contract Price [CL.7.1]

14. The Schedule of Other Contractors [CL.8]

15. The Schedule of Key Personnel As per Annex – II to Section I [CL.9]

16. The minimum insurance cover for physical property, injury and death is [CL13]
Rs. 5 lakhs per occurrence with the number of occurrences limited to four.
After each occurrence, the contractor will pay an additional premium
necessary to make insurance valid for four occurrences always.

17. Site Investigation report [CL.14]

18. The Site Possession dates shall be …………………….. [CL.21]
19. The period for submission of programme for approval of the engineer shall [CL. 27.1]
be 21 days from the issue of Letter of Acceptance.
20. The period between program updates will be 68 Days. [CL.27.3]
21. The amount to be withheld for late submission of an updated [CL. 27.3]
programme shall be Rs.1.00 lakhs
22. The following events shall also be Compensation Events [CL. 44]
Substantially adverse ground conditions encountered during the course
of execution of work not provided for in the bidding document.
(i) Removal of underground utilities detected subsequently
(ii) Significant changes in classification of soil requiring
additional mobilization by the contractor, e.g. ordinary soil to
rock excavation,
(iii) Removal of unsuitable material like marsh, debris dumps,
etc. not caused by the contractor.

Sign. of the Contractor Sign. of the Executive Engineer 65

 (iv)Artesian conditions
(v) Seepage, erosion landslide
(vi)River training requiring protection of permanent work
(vii)
Presence of historical, archeological or religious structures,
monuments interfering with the works
(viii) Restriction of access to ground imposed by civil, judicial, or
military authority
23. The currency of the Contract is Indian Rupees [CL. 46]
24. The formula (e) for adjustment of prices are as under: [CL.47]
 If any of the commodities like Cement, Steel or Bitumen are not found
applicable in a work, the weight component of that commodities {i.e.
‘Cement’ (Pc), ‘Steel’ (Ps) or ‘Bitumen' (Pb) as indicated in SBD for the
purpose of Price Adjustment} shall be clubbed with the weight component of
‘Other Material’ (Pm), such that the gross % weight of the components shall
remain as 100% .
R = value of work as defined in Clause 47.1 of Conditions of Contract
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 (Pl/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 for the State on 28
days preceding the scheduled date of opening of technical Bids as
published by Labour Bureau, Ministry of Labour, Government of
India
Li = The consumer price index for industrial workers for the State for the
month under consideration as published by the Labour Bureau,
Ministry of Labour, Government of India.
Pl = Percentage of labor component of the work.

Adjustment for cement component.

(ii) Prices adjustment for increase or decrease in the cost of cement

procured by the contractor
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 Ordinary Portland
Cement on 28 days preceding the scheduled date of opening
of technical bid as published by the Office of the
Economic Adviser,
Department for Promotion of Industry and Internal
Trade, Ministry of Commerce & Industry.

Sign. of the Contractor Sign. of the Executive Engineer 66

 Ci = The all India average wholesale price index for Ordinary Portland Cement
for the month under consideration as published by Office of the Economic
Adviser, Department for Promotion of Industry and Internal Trade,
Ministry of Commerce & Industry.

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

So= The all India wholesale price index for steel (Mild Steel - Long Products
Rebars) on 28 days preceding the date of opening of Bids as published by the
Office of the Economic Adviser, Department for Promotion of Industry
and Internal Trade, Ministry of Commerce & Industry.

Si= The all India average wholesale price index for steel (Mild Steel - Long
Products Rebars) for the month under consideration as published by Office
of the Economic Adviser, Department for Promotion of Industry and
Internal Trade, Ministry of Commerce & Industry.

Ps = Percentage of steel component of the work

Note : For the application of this clause, the index of Mild Steel- Long
products Rebars has been chosen to represent the steel group.

Adjustments of bitumen component

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

Vb = 0.85 x (Pb/100) 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.

Bo = The official retail price of bitumen at the IOC depot at the nearest
center on the day 28 days prior to the scheduled date of opening of
technical bid.

Bi = The official retail price of bitumen of IOC depot at the nearest center
for the 15th day of the month under consideration.

Pb = Percentage of bitumen component of the work

Sign. of the Contractor Sign. of the Executive Engineer 67

 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 of work during the month under

consideration due to changes in rates for fuel and lubricants.

Fo = The official retail price of High Speed Diesel (HSD) at the existing
consumer pumps of IOC at the nearest centre on the day 28 prior to the
date of opening of Bids.

Fi = The official retail price of HSD at the existing consumer pumps of

IOC at the nearest center for the 15th day of the month of the 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 the fuel and lubricants group.

Adjustment for Construction Machinery

(vi) Price adjustment for increase or decrease in the cost of plant and
Machinery spare procured by the Contractor shall be paid in accordance
with the following formula

Vp = 0.85 x (Pp/100) x R x (Pi – P0)/P0

Vp= Increase or decrease in the cost of work during the month under
consideration due to changes in rates for plant and machinery spares

P0 = The all India wholesale price index for manufacturer of machinery

for mining, quarrying and Construction for the month under
consideration as published Office of the Economic Adviser, Department
for Promotion of Industry and Internal Trade, Ministry of Commerce
& Industry.

Pi = The all India average wholesale price index for manufacturer of

machinery for mining, quarrying and Construction for the month under
consideration as published Office of the Economic Adviser, Department
for Promotion of Industry and Internal Trade, Ministry of Commerce
& Industry.

Pp = Percentage of plant and machinery spares component of the work.

Note: For the application of this clause, index of Heavy Machinery and parts has
been chosen to represent the Plant and Machinery Spares group

Sign. of the Contractor Sign. of the Executive Engineer 68

 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 be
paid in accordance with the following formula

Vm= 0.85x (Pm/100) x R x (Mi – M0)/M0

Vm = Increase or decrease in the cost of work during the month under

consideration due to change in rates for local materials other than cement,
steel, bitumen and POL.

M0 = The All Indian wholesale price index (all commodities) on 28 days

preceding the scheduled date of opening of technical Bids, as published by
the Office of the Economic Adviser, Department for Promotion of
Industry and Internal Trade, Ministry of Commerce & Industry.

Mi= The All India wholesale price index (all commodities) for the month
under consideration as published by the Office of the Economic Adviser,
Department for Promotion of Industry and Internal Trade, Ministry
of Commerce & Industry.

Pm = Percentage of local material components (other than cement, steel,

bitumen and POL) of the work.

The following percentage will govern the price adjustment for the
entire contract:
1. Labour -Pl 26.13 %
2. Cement – Pc 16.09%
3. Steel - Ps 29.83%
4. Bitumen – Pb 4.16%
5. POL – Pf 7.30%
6. Plant & Machinery Spares Pp 2.83%
7. Other Materials – Pm 13.66 %
--------------
Total 100 %
--------------

25. The proportion of payments retained (retention money) shall be 6% {CL. 48}
from each bill subject to a maximum of 5% of final contract price.

26. Amount of Liquidated damages for For Whole of work {CL.49}

delay in completion of works (1/2000)th of the Initial contract
price, rounded off to the nearest
Thousand, per day. For sectional
Completion (wherever specified In item
6 of Contract data) (1/2000)th of initial
contract price for #5 km Section,
rounded off to the nearest thousand per
day.

Sign. of the Contractor Sign. of the Executive Engineer 69

 27. Maximum limit of liquidated damages 10 percent of the Initial {CL. 49}
For delay in completion work Contract Price rounded off to
the nearest thousand

28. Amount of Bonus for early completion Amount of bonus for early
completion of work shall be given as
per CL.50 of Section-3

29. Maximum limit of bonus for early 5 percent of the Contract {CL. 50}
Completion of work Price

30. The amount of the advance payment are: {CL. 51 & 52}

#Nature of Advances Amount (Rs.) Conditions to

Be fulfilled
i Mobilization 10% of the contract On submission of unconditional
Price Bank Guarantee. (to be drawn
before the end of 20% of the
contract period). The contractor
may furnish four bank guarantees of
2.5 % of each valid for the full
period.

ii Equipment 90% for new and 50% of After equipment is brought to site
depreciated value for old (provided the Engineer is satisfied
equipment. Total amount That the equipment is required for
will be subject to a performance of the contract) and on
maximum of 5% of the submission of unconditional Bank
Contract Price Guarantee for
amount of advance

iii Secured Deleted

Advance for
Non-persish
able material
Brought to site

(The advance payment will be paid to the Contractor no later than 28 days after
fulfillment of the above conditions).

31. Repayment of advance payment for mobilization and equipment {CL. 51.3}

The advance loan shall be repaid with percentage deduction from the interim payments
certified by the Engineer under the Contract. Deduction shall commence in the next
Interim Payment Certificate following that in which the

Sign. of the Contractor Sign. of the Executive Engineer 70

 total of all such payments to the Contractor has reached not less than 20 percent of the
Contract Price or 6 (six) months from the date of payment of first installment of
advance, whichever period concludes earlier, and shall be made at the rate of 20
percent (collectively for both Mobilization Advance and Equipment Advance) of
the amounts of all Interim Payment Certificate until such time as the loan has been
repaid, always provided that the loan shall be completely repaid prior to the expiry of
the original time for completion pursuant to Clause 17 and 28.
32. Deleted
33. The securities shall be for the following minimum amounts equivalent {CL. 52} As
a percentage of the Contract Price:
Performance Security for 5 percent of contract price plus Rs. 2,90,000.00(to be
decided after evaluation of the bid) as additional security in terms of ITB Clause 29.5
The standard form of Performance security acceptable to the Employer shall be an
unconditional Bank Guarantee of the type as presented in Section 8 of the Bidding
Documents.
34. The Schedule of Operating and maintenance Manuals…..N/A. {CL. 58}
35. The date by which “as– built” drawings (in scale as directed) in 2 sets {CL. 58} are
required within 28 days of the issue of certificate of completion of the whole or
section of the work, as the case may be.
36. The amount to be withheld for failing to supply “as built” drawings {CL. 58} by the
Date required is Rs. 5 Lakhs.
37. The following events shall also be fundamentals breach of contract: {CL.59.2} “The
Contractor has contravened Sub- clause 7.1 and Clause 9 of GCC”
38. The percentage to apply the value of the work not completed representing {Cl 60} the
Employer’s additional cost for completing the Works shall be 20 per cent.

Sign. of the Contractor Sign. of the Executive Engineer 71

 SECTION - 5
TECHNICAL SPECIFICATION

----------------Attached Separately ---------------

Sign. of the Contractor Sign. of the Executive Engineer 72

 SECTION - 6
FORM OF BID

Sign. of the Contractor Sign. of the Executive Engineer 73

 FORM OF BID

Description of the Works:

-------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

BID

To :

Address :

1. We offer to execute the Works described above and remedy any defects therein in
conformity with the conditions of Contract, specification, drawings, Bill of Quantities and
Addenda for the sum (s) of

( --------------------------------------------------------------------------------------------------------- )

2. We undertake, if our Bid is accepted, to commence the Works as soon as is reasonably

possible after the receipt of the Engineer’s notice to commence, and to complete the
whole of the Works in the Contact within the time stated in the document.

3. We agree to abide by this Bid for the period of 120 Days from the date fixed for receiving
the same, and it shall remain binding upon it and may be accepted at any time before the
expiration of that period.

4. Unless and until a formal Agreement is prepared and executed this Bid, together with
your written acceptance thereof, shall constitute a binding contract between us.

5. We understand that you are not bound to accept the lowest or any tender you may receive.

Dated this ------------------------- day of --------------------------------------20

Signature ----------------------------------------------- in the capacity of ---------------------

------- duly authorized to sign bids for and on behalf of -----------------------------------

-------------

(in block capitals or typed)

Sign. of the Contractor Sign. of the Executive Engineer 74

 Address

Witness

Address

Occupation

Sign. of the Contractor Sign. of the Executive Engineer 75

 SECTION - 7
BILL OF QUANTITIES

Sign. of the Contractor Sign. of the Executive Engineer 76

 BILL OF QUANTITIES

Preamble

1. The bill of Quantities shall be read in conjunction with the Instructions to Bidder,
Conditions of Contract, Technical Specifications and Drawings.

2. The quantities given in the Bill of Quantities are estimated and provisional, and are
given to provide a common basis for bidding. The basis of payment will be the actual
quantities of work ordered and carried out, as measured by the Contractor and verified
by the Engineer and valued at the rates and prices tendered in the priced Bill of
Quantities, where applicable, and otherwise at such rates and prices as the Engineer
may fix within the terms of the Contract.

3. The rates and prices tendered in the priced Bill of Quantities shall, except in so far as
it is otherwise provided under the Contract, include all constructional plant, layout,
supervision, materials, erection, maintenance, insurance, profit, taxes and duties,
together with all general risks, liabilities and obligations set out or implied in the
Contract.

4. The rates and prices shall be quoted entirely in Indian Currency.

5. A rate or prices shall be entered against each item in the Bill Quantities, whether
quantities are stated or not. The cost of Items against which Contractor has failed to
enter a rate or price shall be deemed to be covered by other rates and prices entered in
the Bill of Quantities (in case of Item rate contract).

6. The whole cost of complying with the provisions of the Contract shall be included in
the items provided in the priced Bill of Quantities, and where no Items are provided
the cost shall be deemed to be distributed among the rates and prices entered for the
related items of Work.

7. General direction and descriptions of work and materials are not necessarily repeated
or summarized in the Bill of Quantities. References to the relevant sections of the
contract documentation shall be made before entering rates or prices against each item
in the Bill of Quantities.

8. The method of completed work of payment shall be in accordance with the

specification for Road and Bridge works. For building works specifications for
building are to be followed.

9. Errors will be corrected by the Employer for any arithmetic errors pursuant to
Clause 29 of the Instructions to Bidder.

10. Rock is defined as all materials which, in the opinion of the Engineer, required
blasting, or the use of metal wedges and sledgehammers, or the use of compressed air
drilling for its removal, and which cannot be extracted by ripping with a tractor of at
least 150 kw with a single rear mounted heavy duty ripper.

Sign. of the Contractor Sign. of the Executive Engineer 77

 BILL OF QUANTITIES
(A) Percentage Rate Tender (Up to INR 50 Cr. )
Item Description of Item (with brief Quantity Unit Rate In Amount
No specification and reference to figures
book of specifications)

------------------- As per Separate sheet attached -----------------

I/We am/are willing to carry out the work at …..................... % above/below percent (Should
be written in figures and words) of the estimated rate mentioned above. Amount of my /our tender
works out as under.

Estimated amount put to tender Estimated amount put to tender

Deduct………% below Add………% Above
Net Net
In words In words

(B) For Item Rate Tender (For above INR 50 Cr.):

Item Description of Item (with Quantity Unit Rate Amount

No brief specification and
reference to book of In In
specifications) figures Words

(A) Total Tendered Amount

(B) Rebate on above tendered amount (if any) % (in figure)
……………………………… (in
words)………………………………………………….………………………………
………………...
(C)Net Tendered Amount (A-B) (in figure) ………………………………
(in
words)………………………………………………….…………………………………
……………...
#
1 The Contractor shall exhibit a board with detailed specification and details of work as
directed by the Engineer-In-Charge for which no extra payment shall be made.
2 The labour cess will be deducted as per prevailing rules i.e. 1% of the work done.
3 GST and Income tax TDS will be deducted at a source while making payments of bills
4 In all R.C.C. Items in Rate Analysis Standard Cement Consumption has been taken as per
Govt. G.R.: PRC-10/2017 Cement Consumption/16/C Date:11/05/2017 as stated in
S.O.R. therefore in R.C.C. items where there is a change as per actual mix design the cost
of difference of cement consumption have been deducted from the rate of original item at the
rate of input rate mentioned in all the tender.

Sign. of the Contractor Sign. of the Executive Engineer 78

 SECTION - 8
SECURITIES AND OTHER FORMS

Sign. of the Contractor Sign. of the Executive Engineer 79

 BID SECURITY (BANK GUARANTEE)

WHEREAS, ---------------------------------------- (name of Bidder) (hereinafter called the

“The Bidder”) has submitted his bid Dated ------------------------ (Date) for the construction
of ------------- (Name of Contractor hereinafter called “the Bid”)

KNOW ALL PEOPLE by these presents that We -------------------------------------------------

(name of Bank) of ------------------------------------------------- (name of country) having our
registered office at -------------------------------------------------------( hereinafter called
“the bank”) are bound unto --------------------------------------------(name of Employer)
(hereinafter called “The Employer”) in the sum of -----------------------------------------------*
for which payment well and truly to be made to the said Employer the Bank itself, his
successors and assigns by these presents.

SEALED with the Common Seal of the said Bank this ---------------------- day of --------- 20

THE CONDITIONS of these obligations are:

(1) If after Bid opening the Bidder withdraws his bid during the period of Bid validity
specified in the Form of Bid;
Or

(2) If the Bidder has been notified of the acceptance of his bid by the Employer
during the period of Bid Validity:

A Fails or refuses to execute the Form of Agreement in accordance with the

Instructions to Bidders, if required; or

B. Fails or refuse to furnish the Performance Security, in accordance with the

Instructions to Bidders; or

C. does not accept the correction of the Bid Price pursuant to Clause 27
(Correction of Errors)

We undertake to pay to the Employer up to the above amount upon receipt

of his first written demand, without the employer having to substantiate his demand,
provided that in his demand the Employer will note that the amount claimed by him
is due to him owing to the occurrence of one or any of the three conditions,
specifying the occurred conditions or conditions.

Sign. of the Contractor Sign. of the Executive Engineer 80

 This Guarantee will remain in force up to and including the date ------------------------ **
days after the deadline for submission of Bids as such the deadline is stated in the
Instructions to Bidders or as it may be extended by the Employer, notice of which
extension (s) to the Bank is hereby waived. Any demand in respect of this guarantee
should reach the Bank not later than the above date

DATE --------------------------------------- SIGNATURE------------------------------

WITNESS --------------------------------- SEAL --------------------------------------

(Signature, name and address)

* The Bidder should insert the amount of the guarantee in words and figures
denominated in Indian Rupees. This figure should be the same as shown in Clause
16.1(Bid Security) of the Instructions to Bidders.

**45 days after the end of the validity period of the Bid. Date should be inserted by
the Employer before the Bidding documents are issued.

Sign. of the Contractor Sign. of the Executive Engineer 81

 PERFORMANCE SECURITY

TO,
- ------------------------------------------------------------------- (Name of Employer)
- -------------------------------------------------------------------- (Address of Employer)
-------------------------------------------------------------------

WHEREAS ----------------------------------------------------------- (name and address of

contractor) (hereafter called “the Contractor”) has undertaken, in pursuance of Contracts
No. ------------------------- dates -------------------------- to execute -----------------
--------- (name of Contract and brief description of Works) (hereinafter called “The
Contract”)

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

AND WHEREAS we have agreed to give the Contractors such a bank Guarantee:

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you
on behalf of the Contractor, up to a total of ------------------------------------------
(amount of guarantee)* -------------------------------- (in words), such sum being payable in
types and proportions of currencies in which the Contract prices is payable, and we
undertake to pay you, upon your first written demand and without cavil or argument, any
sum or sums within the limits of ---------------------------------------- (amount of guarantee)
as aforesaid without your needing to prove or to show grounds or reasons for your demand
for the sum specified therein.

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

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

This guarantee shall be valid until 60 days from the date of expiring of the Defect
Liabilities period.

Signature and Seal of the guarantor ----------------------------- Name

of Bank -----------------------------------------------

Address ------------------------------------------------
Date ---------------------------------------------------

*An amount shall be inserted by the Guarantor, representing the percentage the Contract
price specified in the Contract denominated in Indian Rupees.

Sign. of the Contractor Sign. of the Executive Engineer 82

 ADDITIONAL PERFORMANCE SECURITY
[Clause 34.1. (A)]

TO,
- ------------------------------------------------------------------- (Name of Employer)
- -------------------------------------------------------------------- (Address of Employer)
-------------------------------------------------------------------

WHEREAS ----------------------------------------------------------- (Name and address of

contractor) (hereafter called “The Contractor”) has undertaken, in pursuance of Contracts
No. ------------------------- dates -------------------------- to execute -----------------
--------- (Name of Contract and brief description of Works) (hereinafter called “The
Contract”)

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

AND WHEREAS we have agreed to give the Contractors such a bank Guarantee:

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you
on behalf of the Contractor, up to a total of ------------------------------------------
(amount of guarantee)--------------------------------- (in words), such sum being payable in
types and proportions of currencies in which the Contract prices is payable, and we
undertake to pay you, upon your first written demand and without cavil or argument, any
sum or sums within the limits of ---------------------------------------- (amount of guarantee)
as aforesaid without your needing to prove or to show grounds or reasons for your demand
for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the contractor
before presenting is with the demand

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

This guarantee shall be valid until 28 days from the project completion date.

Signature and Seal of the guarantor ----------------------------- Name

of Bank -----------------------------------------------

Address ------------------------------------------------

Date ---------------------------------------------------

Sign. of the Contractor Sign. of the Executive Engineer 83

 BANK GUARANTEE FOR ADVANCE PAYMENT

TO,

- --------------------------------------------------------------------------------- (Name of Employer)

- ---------------------------------------------------------------------------------(Address of Employer)

- --------------------------------------------------------------------------------- (Name of Contractor)

Gentlemen:

In accordance with the provisions of the Conditions of Contract, sub-clause

51.1 (“Advance Payment”) of the above mentioned Contract, -------------------------------
------------------- (name and address of Contractor) (hereinafter called -- “the
Contractor”) shall deposit with (name of
Employer) a bank guarantee his proper and faithful performance under the said
Clause of the Contract in an amount of------------------------------ (amount of Guarantee)* -
- ------------------------------------in words).

We, the ----------------------------------- (bank of financial institution), as instructed

by the Contractor, agree unconditionally and irrevocably to guarantee as primary obligator
and not as Surety merely, the payment to ---------------------------------------- (name of
Employer) on his first demand without whatsoever right of obligation on our part and
without his first claim to the Contractor, in the amount not exceeding ---
---------------------- (amount of guarantee)* - ---------------------------------------------- (in
words)

We further agree that no change or addition to or other modifications of the terms of the
Contractor or Works to be performed thereunder or of any of the Contract documents
which may be made between --------------------------------- (name of Employer) and the
Contractor, shall in any way release us from any liability under this guarantee, and we
hereby waive notice of any such change, addition or modifications.
This guarantee shall remain valid and in full effect from the date of the advance
payment under the Contract until -------------------------------------- (name of employer)
receives full repayment of the same amount from the contractor.

YOUR’S TRULY

Signature and Seal

Name of Bank/ Financial Institution
Address
Date

* An amount shall be inserted by that Bank or Financial Institution representing the amount of
the Advance Payment, and denominated in Indian Rupees.

Sign. of the Contractor Sign. of the Executive Engineer 84

 Letter of Acceptance
(Letter head paper of the Employer)

(date)
To,
(Name and address of the Contractor)

Dear Sirs,

This is to notify you that your Bid dated for execution of

the (Name of the contract and identification number, as
given in the Instructions to Bidders) for the Contract Price of Rupees
( ) (amount in words and figures) as corrected and modified in accordance
with the Instructions to Bidders* is hereby accepted by our agency.
You are requested to furnish performance security, in the form detailed in para
34.1 of ITB for an amount equivalent to Rs. within 10 days of the receipt of this
letter of acceptance up to beyond 60 days from the date of expiry of defects Liability
period i.e. up to and the Additional Performance Security for an
amount equivalent to Rs. shall be valid beyond 28 (twenty-eight) days of
Project Completion Date i.e. up to and sign the contract, failing which
action as stated in Para 34.3 of ITB will be taken.

Yours Faithfully

Authorized Signature Name

and title of Signatory Name
of Employer

* Delete “Corrected and” or and modified if only one of these actions applies. Delete as corrected
and modified in accordance with the Instructions to Bidders, if corrections or modifications
have not been affected.

Sign. of the Contractor Sign. of the Executive Engineer 85

 Issue of Notice to proceed with the work
(Letterhead of the Employer)

- ------------------------------- (date)
To,

(Name and address of the Contractor)

Dear Sirs,

Pursuant to your furnishing the requisite security in ITB Clause 34.1 and
signing of the Contract for the construction of

at a bid Price of Rs.

.

You are hereby instructed to proceed with the execution of the said works in accordance
with the contract documents.

Yours faithfully

(Signature, name and title of signatory authorized To

sign on behalf of Employer)

Sign. of the Contractor Sign. of the Executive Engineer 86

 AGREEMENT FORM

This agreement, made on the day of between

(name and address of Employer) (Hereinafter called “the
Employer) and (name and address of
contractor) hereinafter called “the Contractor” of the other part.

Whereas the Employer is desirous that the Contractor execute

Name and identification number of contract (hereinafter called “the works”) and the
employer has accepted the Bid by the Contractor for the execution and completion of such
works and the remedying of any defects therein, at a cost of Rs.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS

1. In this Agreement, words and expression shall have the same meanings as are
respectively assigned to them in the conditions of contract hereinafter referred to and
they shall be deemed to form and be read construed as part of this Agreement.

2. In Consideration of the payment to be made by the Employer to the contractor as

hereinafter mentioned, the Contractor hereby covenants with the Employer to
executive and complete the works and remedy any defects therein in conformity in all
aspects with the provisions of the contracts.

3. The employer hereby covenants to pay the Contractor in consideration of the

execution and completion of the works and the remedying the defects wherein contract
price or such other sum as may become payable under the provisions of the Contract at
the times and in the manner prescribed by the contract.

4. The Following documents shall be deemed to form and be ready and construed as part
of this Agreement viz

i) letter of Acceptance
ii ) Notice to proceed with the works:
iii ) Contractor’s Bid
iv ) Conditions of contract: General and Special

Sign. of the Contractor Sign. of the Executive Engineer 87

 v) Contract Data
vi) Additional conditions
vii ) Drawings
viii ) Bill of Quantities and
ix ) Any other documents listed in the Contract
data as forming part of the Contract.

In witness whereof the parties there to have caused this Agreement to be

executed the day and year first before written

The Common seal of

Was hereunto affixed in the presence of :

Signed, sealed and Delivered by the said

In the presence of

Binding signature of Employer

Binding Signature of Contractor

Sign. of the Contractor Sign. of the Executive Engineer 88

 UNDERTAKING
(For Investment)

I, the undersigned do hereby undertake that our firm M/s

…………………………………………………..……………………………….. would invest a
minimum cash up to 25% of the value of the work during implementation of the contract.

(Signed by an Authorized officer of the firm)

Title of officer

Name of firm

DATE

Sign. of the Contractor Sign. of the Executive Engineer 89

 UNDERTAKING
(For Validity)

I, the undersigned do hereby undertake that our firm M/s …………………………………

……………..……………………………….. agree to abide by this bid for a period .............. days
for date fixed for receiving the same and it shall be binding on us and may be accepted at any
time before the expiration of that period.

(Signed by an Authorized officer of the firm)

Title of officer

Name of firm

DATE

Sign. of the Contractor Sign. of the Executive Engineer 90

 SECTION - 9
DRAWINGS

Sign. of the Contractor Sign. of the Executive Engineer 91

 SECTION - 10
DOCUMENTS TO BE FURNISHED BY
BIDDER

Sign. of the Contractor Sign. of the Executive Engineer 92