S Reddy - W.O
S Reddy - W.O
Subject: - Issue of Work Order for structure balance works between Km 259+800 to 338+923
of NH-48 (Old NH-4)4) in the state of Karnataka)
Dear Sir,
With reference to the above, we are pleased to place work order upon M/s. Radha Construction
for the work under subject (hereinafter
hereinafter referred to as the “Work”) in accordance with the terms
& conditions of the Contract Agreement under reference & additional terms & conditions listed iin
this document.
You have acknowledges that prior to quoting of rates to AV,, a complete and careful examination is
carried out and made an independent evaluation of the Proposal, Scope of the Project,
Specifications and Standards of design, construction aand nd maintenance, Site, local conditions,
physical qualities of ground, subsoil and geology, traffic volumes, suitability and availability of
access routes to the Site and all information provided by the Authority, A AV or obtained, procured or
gathered otherwise,
ise, and has determined to its satisfaction the accuracy or otherwise thereof and the
nature and extent of difficulties, risks and hazards as are likely to arise or may be faced by you in
the course of performance of your obligations hereunder. You confirm there is no claim whatsoever
against the AV in this regard.
Definitions and abbreviations:
For Understood as
2.3. You shall submit construction program along with resource (manpower, shuttering &
Staging material, machinery etc.) mobilization schedule as agreed during negotiation
meeting as per instruction of project in-charge / AV’s representative. In no case the program
for execution of scope of works shall be more than nine months from date of this work order
including monsoon period as per drawing and relevant specifications.
2.4. It is expressly stipulated that time is the essence of this work order. The work has to be
satisfactorily completed in specified time from the date of this work order (including
monsoon period) which is being accepted and acknowledge by you.
2.5. It shall be your liability & responsibility to provide adequate qualified, skilled &
experienced personnel and the requisite machineries, plant, equipment, tools & tackle &
other resources to ensure acceptable quality of works & the completion of the works in the
specified period only.
2.6. The work will not be considered as completed until completion certificate is issued by the
Director / GM authorized representative.
2.7. If in the opinion of the AV.’s representative under whose supervision the work is done, the
Sub-Contractor employs inadequate number of men / machine of which they fails to proceed
with the work with reasonable speed or does not execute it in a satisfactory and
workmanship manner or if in accordance with the terms and conditions of the contract or
refuses or neglects to make such alterations as per AV’s representative may require time to
time, the AV shall get the work done without any notice through departmental labor or any
other Sub-Contractor at your risk and cost and recover the same from you.
2.8. The work shall not be deemed to be completed until you have obtained satisfactory
completion certificate from Director.
2.9. All tools and tackles needed for the work shall be provided by you unless otherwise
specified. If any materials / machinery / tools and plants are provided by the Company, the
same shall be properly utilized / maintained by you. The cost of any wastage / damage / loss
will be recovered from you at the rate of actual cost of machinery or repairs plus 10% as
service charge.
2.10. You will fully co-ordinate with the other sub-contractors working on sites. In case of any
dispute, the Director/GM. (E.Q.A.)’s decision will be final and binding on the both Sub-
Contractors.
2.11. You have to arrange area for land and material for construction of labor camp construction /
erection/ execution of the same has to be done by you. You shall arrange electricity and
water for your staff (AV provided water at water filling point).
2.12. You shall mobilize necessary skilled/unskilled workman to carry out the works to meet with
the targets set at site by us. In case we find that this needs any change you shall immediately
take suitable action to mobilize required suitable staff. The work shall be executed on round
the clock basis if required.
2.13. Minimum scope of Shuttering, Staging and machinery deployment at site –
List of Shuttering and staging material
As decided with Project In Charge as per execution plan and shuttering scheme
submitted by you and approved by AV
List of manpower to be deployed at site
Vibrator - 8
60mm dia Needles -20
15 KVA DG - 2
7.5 KVA Generator - 1
Shuttering Material 1000 Sqm
Tractor 1
Water Tanker 2
2.14. The list of Shuttering Material, Staging Material and Machinery & manpower are indicative,
you have to maintain as per the available scope to complete the work within stipulated time
frame.
2.15. No equipment / machineries brought in by yourself can be taken away from site by you or
any of your agents or creditors, etc. without the written consent of M/s. Arjunvaishnavi
Infrastructure and developers Pvt ltd.,and only the Engineer in Charge is authorized to
sign such authority letters. That all work and all materials delivered and kept on the premise
to form part of the work shall be considered the property of M/s. Arjunvaishnavi
Infrastructure and developers Pvt ltd.,and shall not be removed without its written
consent.
2.16. The location of work fronts are liable to change from time to time and as per our
requirement and no extra claim for that matter shall be considered.
2.17. Availability of work fronts depend upon clearance of obstructions by Authority. Hence you
will have to mobilize/ demobilize or increase/ decrease equipments as per availability of
work fronts. It is explicitly understood by sub-contractor that no idling or underutilization of
resources shall be payable by AV.
2.18. In case of unavailability of work fronts, scope may be reduced to any extent &sub-contractor
will not raise any claim for reduction in scope.
2.19. Project completion date for the scope annexed with the work order shall be as instructed by
AV representative. In case of failure to achieve the required progress of the work on account
of reasons attributable to you, liquidated damages will be impose as per article 6.
3. RATE SCHEDULE,BILLING PRECEDURE and PAYMENTS TERMS AND
CONDITIONS:
3.1. The rates shall be as per the attached ANNEXURE ‘A’.
3.2. The rates as indicated in BOQ are inclusive of all material, labour, except as mentioned in
exclusion and shall remain firm and shall not be subjected to any revision / variation till
completion of the entire job, except specially mentioned in this agreement.
3.3. The rates are inclusive of water & power required for execution of work. Water & power
required for construction works is in your scope (AV Provided water at water filling point).
3.4. The rate shall remain firm and shall not be subjected to any revision / variation / escalation,
till completion of the entire job. No idle / detention charges shall be payable in any
circumstances.
3.5. Payment for steel will be made for quantity as per approved BBS. For reconciliation laps
and chair wastage will be allowed up to 5% only All cut pieces will be returned by
subcontractor (Nails and Oil for Shuttering provided by AV on debatable basis& Steel
provided by AV at Base camp only).
3.6. Wastage of concrete more than 3% of measured quantity will be deduct from subcontractor
payment(Cement, sand for cover block and finishing work provided by AV on debatable
basis).
3.7. Rates quoted shall be deemed to allow for all minor details, which are not specifically
shown on drawings or in specifications but are essential for the execution of work and
services in workman like manner and sound construction practice. In case of difference of
opinion between the agency and Site In Charge or his representative as to whether or not
certain item of work constitutes "Minor Details' which is deemed to have been included in
the agency's quoted rate, the decision of the Director of AV shall be final, conclusive and
binding on all.
3.8. If any kind of License is to be obtained in the name of AV relating to your scope of work,
then you will have to submit and follow up for the same at your cost.
3.9. The quantity mentioned in BOQ is tentative, which may vary to any extent depending upon
site conditions, design and drawing for which no adjustment in rates will be allowed.
3.10. Payments shall be made on monthly basis on production of bills supported with Approved
RFI for the work done during month duly certified by Engineer In-Charge. Joint
measurement for the work done during the month shall be taken on 25th of every month and
subsequently bill will be raised by 1st of every month. Quantities of as per BOQ will be
finalized based on the drawing. Measurement of executed works will be finalized based on
the site measurements with our site engineer and will be submitted to billing dept. Every RA
Bill certified by site Billing Department will be considered as advance payment against
work done and all measurements will be finalized in the final bill. Seventy Five (75%)
advance payment shall be made within 10 days after the preliminary certification wherein
preliminary certification shall be done within 7 days from the date of submission of the bill
& balance payment shall be made after 14 days from certification of D.H. (EQA) and
Director / Project Manager. Payment against bill will be subjected to Payment realization
from Authority.
3.11. The rates are all inclusive i.e. includes all costs of materials (consumables / non
consumables), labor charges, supervisors, operators, drivers, mechanics, fuel, oil, lubricants,
transportation, power, equipment’s, tools & tackles, safety apparatus, supervision except as
mentioned in exclusion,overheads, profits and / or any other incidentals required for the
execution of this contract. This being a contract on item rate basis, payment will be made for
the actual work done as per plan & as per joint levels taken at site. In the eventuality of any
differences in measurement, the measurements as recorded by AV representative shall be
final & binding upon you and no further discussions / disputes, of any nature will be
entertained at any time thereafter.
3.12. Any material supplied by AV apart from as mentioned in exclusion will be on chargeable
basis as per AV norms and will be deducted from your immediate running account bill
3.13. The work shall be performed in thorough, efficient & workmanlike manner with due
diligence & care according to sound practices as per the prevalent standards and
specifications. It will be your specific responsibility to get the completed work approved
from AV /consultants/Authority’s representative. AV reserves the right to get the worker
done from you at no extra cost to AV of any work rejected or not found satisfactory. AV
shall not supply any labor & material free for rectification or replacement of defective work.
3.14. The indents for materials if any signed and sent by you for getting materials from AV.’s
store and on the strength of which the materials have been issued to you shall be liable for
recovery of the value from you. The material indents issued by you shall be considered as
receipt of material by you and no special receipt shall be needed for the same.
3.15. It should be clearly understood that no escalation or price increase of any nature is
admissible during the entire period of this contract until completion of the same. The rates
agreed upon under this contract for various items of work are firm, final and binding and
shall not be revised upwards under any circumstance.
3.16. Extra item if required to be executed will be executed only after finalization of the rates on
mutually agreed terms with AV and the same shall be duly approved by AV’s Project
Director. In case any extra item executed at site, rate for extra item and payment related to
extra item will be finalized from AV, Head Office.
3.17. AV will not be liable to pay any amount to the Party / Agency / Persons with whom you
shall be dealing while executing said scope of work. You shall make your own arrangements
to make the payment to the concerned Party / Agency / Persons work with you irrespective
of payment due with AV. You will maintain minimum wages register and other statutory
records as required and provide it to our HR & Admin Dept. monthly for statutory
compliance.
3.18. Cost of Local liaison with police, local people etc. related to your work shall be borne by
you.
3.19. Performance Guarantee: (Only If we give Mob. Advance)
Performance guarantee in the standard form of bank guarantee, issued by a Nationalized
/Scheduled bank for (Percentage) shall be produced by the subcontractor, before issuing the
work order by the main contractor. Format of Bank Guarantee will be provided by AV.
Performance security will be released after successful completion of work as certified by
Authorities Engineer. In case of any problem from Authorities Engineer decision of Project
Director of AV will be final.
3.20. Mobilization Advance: No mobilization advance will be paid.
4. TAXES & DUTIES and CESS:
4.1. The rate of all BOQ items is inclusive of all taxes, duties, Octroi, levies, royalties, sales tax;
VAT, works contract Tax, Service Tax, labourCess(Excluding GST) etc as applicable,
Wastages, insurance, entry tax, surcharge, transportation, loading & unloading, all incidental
expenditure etc. The rate shall be valid for any variation in quantity & shall be valid for all
leads and lifts. The rates shall also include & provide for timely execution of all Necessary
preliminary works, enabling works and allied works related to your scope of work.
5. LIQUIDATED DAMGES:
5.1. If the work is not executed as per instruction of AV representative, as per agreed schedule
pursuant to article 2 and for the reasons solely attributable to subcontractor, then liquidated
damages will be levied on you as imposed by authority to AV for the potion of work
executed by you.
11.6. You shall submit the valid license of Drivers and Operators before deployment.
11.7. Work shall commence immediately on receipt of this order in consultation with the Site in
Charge. We reserve the right to increase/decrease the quantum of work without any change
whatsoever in the rates. We reserve the right to terminate the work in case of
inferior/irregular workmanship, as may be determined solely & at the discretion of AV.
11.8. It will be your duty and responsibility for sorting out problems, difficulties, troubles and
bottlenecks on & around the work sites and to take appropriate remedial steps immediately
to completely ensure that all works are carried out properly, smoothly and within the
stipulated time limit, without any sort of financial liability and or any responsibility on AV.
12. STATUTORY AND LEGAL REQUIREMENTS.
12.1. The payment of workmen shall be done by you in presence of representative of AV. In case
of complaint regarding non-payment of wages to workers is received; your bill shall be kept
under HOLD till completion of inquiry. If Engineer-in-charge is convinced that the
workmen wages have not been paid, such wages shall be directly paid to aggrieved worker
and shall be recovered from your bill with 10% extra towards establishment cost.
12.2. In any case if AV is to pay compensation to any workmen / person(s) of due to your fault,
ABL will recover the amount of any part thereof by deducting it from security deposit or
any other deposit retention money or any amount due by AV to you. AV will never be
bound to contest any claims made against it, under the said Act.
12.3. Even though AV is the Contractor for the execution of the work, you as a sub-contractor
will be completely responsible for complying with all statutory provisions and obligations of
various acts, laws, rules and regulations, policies etc. including but not limited to the
Contract Labor Act against risk & cost, Labor Insurance Policies, Workmen’s
Compensation Liability under the Workmen Compensation Act and all amendments thereto
ESIS/Acts, PF Act, rules, regulations, etc. will be complied and followed completely by
yourselves and shall be to your account. To satisfy the ESIS/PF act regulation you have to
submit the monthly statement of deposit PF slip/challan along with the monthly bill, failing
to which the 3% will be hold in the monthly bill.
12.4. It will be your sole responsibility to comply with all concerned Statutory Acts and Laws and
various Liabilities during the entire period of this contract till its satisfactory completion
e.g. you will ensure that all types of Labor Laws, necessary insurance policies to be taken
out for men, material, equipment, vehicles, minimum wages act, Provident Fund Act,
Employees State Insurance Act, and also to pay to the Government all taxes and any other
dues which arises out of this contract being given to you.
12.5. You without limiting your obligations & responsibilities shall prior to commencement of
work insure the risk arising out of accident, riot, fire, theft or any natural calamities, bandhs,
etc., and for which the AV will not be liable. However if you fail to effect & keep in force
various insurance policies referred above, or do not comply with your obligations and
responsibilities, then AV may effect and keep in force such insurances and pay such
premium or premiums, and fulfill such other obligations as may be necessary from time to
time and deduct / recover the said amounts payable/ paid from amounts due to you at any
and all times.
12.6. As per State Regulations you have to provide “Health Card” for each & every individual
laborers, failing which, all penalties shall be borne by you.
12.7. Statutory Standard Deductions to be made from each R.A. Bill submitted by you will mainly
be as under:
12.8. Income Tax deduction at source and any other statutory deductions under the various Laws,
Acts, as per prevailing rates and rules from time to time. Any other deductions / adjustments
that may arise as per AV’S decision in the course of this work order being awarded.
12.9. As per State Regulations you have to be registered with Regional Provident Fund
Commissioner, & you shall pay PF of all Employs/Staff/Laborers working at Site, failing
which, all penalties shall be borne by you. You are liable and responsible for complying
with the provisions of the Employees Provident Funds and Miscellaneous Provision Act
1952 (latest revision) and schemes framed there under, in so far they are applicable to this
Project.
12.10. You and your worker/staff are not permitted to stay on work site in alcoholic impression in
site/office premises, if any person observed in such condition Project Managerdecision will
be final and binding.
12.11. You will not appoint any child labor (labor less than 18 years old) on project.
12.12. As per Karnataka State Regulations you have to provide “Health Card” for each & every
individual labourers, failing which, all penalties shall be borne by you.
12.13. As per Karnataka State Regulations you have to register with Regional Provident Fund
Commissioner, Karnataka & you shall pay PF of all Employs/Staff/Labourer working at our
Dharwad Site, failing which, all penalties shall be borne by you.
13. CHANGE IN LAW / ORDINANCE:
13.1. If as a result of Change in Law, subcontractor suffers any additional costs in the execution
of the Works or in relation to the performance of its other obligations under this agreement,
Sub-contractor shall, within 15 (fifteen) days from the date it becomes reasonably aware of
such addition in cost, notify AV of such additional cost due to Change in Law.
13.2. If as a result of Change in Law, the Sub-Contractor benefits from any reduction in costs for
the execution of this Agreement or in accordance with the provisions of this Agreement,
either Party shall, within 15 (Fifteen) days from the date it becomes reasonably aware of
such reduction in cost, notify the other Party of such reduction in cost due to Change in
Law.
13.3. The AV, within 15 (fifteen) days from the date of receipt of the notice from the Sub-
Contractor, determine any addition or reduction to the Contract Price, as the case may be,
due to the Change in Law.
If your progress of work entrusted to you is consistently found to be below the accepted
progress schedule, in such case in the interest of timely completion of work, we shall have an
option to terminate any part of the scope of work or the entire balance work and to take up the
same directly by us or any other agency, at your risks and costs. In such a case no compensation
shall be payable to you for the work so deleted. The Director of AV may terminate this
agreement at his opinion by giving written notice of 7 days at any time without assigning any
reason and without entertaining any claim for labour or material or any other expenses or
damages.
17.1. We may recover any damage that accrues to us as a consequence of your non-performance
by:
17.1.1. Withholding the due payments till such time the damage is made good.
17.1.2. Retaining all your plants & equipment’s and use them for balance works.
17.1.3. Any other method as deemed fit.
17.2. AV also reserves the rights to terminate this contract for its convenience without assigning
any reasons whatsoever without any liability on AV.
18. ARBITRATION:
18.1. All disputes shall be resolved through direct negotiations at site through the offices of
Project Manager / Project Controller, failing which the dispute matter shall be referred to
managing director of AV, for amicable solution, failing which, the dispute finally resolved,
in accordance with The Arbitration & Conciliation Act 1996 and amendment thereto by a
sole Arbitrator to be nominated by the Director / Project Maanger – Head office of AV, the
venue shall be Dharwad.
IT MAY PLEASE BE NOTED THAT THIS WORK ORDER WILL ITSELF CONSTITUTE
A BINDING AGREEMENT BETWEEN M/s. Radha Construction AND M/S.
ARJUNVAISHNAVI INFRASTRUCTURES AND DEVELOPERS PVT. LTD.
ANNEXURE “A” ATTACHED HEREWITH FORMS AN INTEGRAL PART OF THIS
WORK ORDER.
Annexure-A
Scope of Work
Thanking you,
Yours Faithfully,
For Arjunvaishnavi Infrastructure and developers pvt ltd.
Accepted by