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Standard document
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INDEX
S.No Description Page No
Standard document
(attached as a separate document comprising of
following)
a Special Conditions of Contract for Tendering 4
b Special Conditions of Contract for Execution 11
c Conciliation Rules 2018 41
d Safety
d.1  Penalty towards non compliance to safety 59
d.2  Contractor safety guidelines 61
e General conditions of contract 97
1. Definition of Terms 99
2. Instructions to Bidders (ITB) 101
3. Interpretation of Contract Documents 111
4. Security Deposit 113
5. Changes in Scope of Work / Quantities 115
6. Materials and Facilities 122
7. Performance of Works 128
8. Inspection and Testing 138
9. Measurements and Payment 145
10. Taxes, Labour Laws and Insurance 154
11. Termination 160
12. Arbitration 165
13. Safety Regulations 167
14. General 177
Appendices (content detailed below)
I Submission of Tender 179

II Information of Tenderer 182

II-A Declaration of Black Listing / Holiday 183

Listing
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III Details of Past Experience 184

IV Details of Equipment Proposed to be

used for the Tendered Work 185

V Details of Concurrent Commitments

186
VI Bank Guarantee for Earnest Money
Deposit 187

VII Agreement 189

VIII Bank Guarantee for Initial Security

Deposit 192

IX Bank Guarantee for Security Deposit 195

X Indenture for Secured Advance
197
XI Indemnity Bond 200
f Formats
Format A Declaration for Acceptance of Tender Document 201
Format B Information about bidders 202
Format C Schedule of deviation 203
Format D Prequalification details submitted by bidder 204
Format E Declaration for confidentiality clause w.r.t
207
compliance with CPCL’s insider trading code
Format F Declaration for the purpose of Section 206AB & 209
206CCA of Income-tax Act, 1961
Format G Compliance with the government order on
211
procurement from bidders from countries sharing
land border with india
Format H1 Declaration of Local Content 214
( for jobs upto Rs. 5 cr)
Format H2 Declaration of Local Content
215
( for jobs above Rs. 5 cr)
Format I Declaration for independent ESI 217

Format J Consent Letter Format for E-Payment 218

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Special Conditions of Contract for Tendering:

3.1.1 GENERAL:

3.1.1.1 The following shall form the contract documents:

a)Statement of Agreed Variations, if any.

a)The detailed Letter of Acceptance along with its enclosures.
b)Fax of Acceptance awarding the works to the contractor.
c) Special Conditions of Contract. (SCC)
d)General Conditions of Contracts. (GCC)
e)Scope of work/ Technical Specification.
f) Addendum/Corrigendum to tender documents issued if any.
g)Original tender documents issued with its enclosures.

All other documents and correspondence exchanged prior to issue to Fax of

Acceptance/ Letter of Acceptance whichever is earlier, shall be treated as null and
void.

3.1.1.2 General Conditions of Contract" which is being enclosed as a annexure/enclosure

to this tender shall be read in conjunction with the Special Conditions of Contract &
Scope of work together with drawings, specifications and all Annexures which form
part of the contract including any corrigenda issued in lieu of any particular
clauses(s) forming part of GCC/SCC/Scope of work/FOA/LOA.

3.1.1.3 Notwithstanding the subdivision of the documents into these separate

sections/parts, every part shall be deemed to be supplementary to and
complementary of every other part and shall be read with and into the contract so
far as it may be practicable to do so.

3.1.1.4 Where any portion of the General conditions of contract is repugnant to or in

variance to any provisions of the special conditions of the contract, then the
provisions of the Special conditions of the contract shall supersede the provision of
General conditions of contract and shall, to the extent of such repugnancy or
variation prevail.

3.1.1.5 It will be the Contractor’s responsibility to bring to the notice of Engineer-in-Charge

any contradiction/irreconcilable conflict in the Contract documents before starting
the work (s) or making the supply with reference to which the conflict exists.

3.1.1.6 In the absence of any Specifications covering any material, design or work(s) the
same shall be performed/supplied/executed in accordance with standard
engineering practice as per the instructions/directions of the Engineer-in-Charge,
which will be binding on the Contractor.

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3.1.1.7 The successful bidder shall take over the plant / site “as is” and no claim shall be
entertained by CPCL on any account unless specifically mentioned and exempted
elsewhere in the document.

3.1.1.8 Unless otherwise specified the work to be provided for by the contractor shall
include but not be limited to the following:

a) Provide all materials, supervision, testing, services, scaffolding, formwork,

temporary drainage, temporary fencing and temporary lighting as required for
safety and work purposes etc, for the execution of the work.

b) To take all the safety measures like using safety belt, helmet, goggles, hand
gloves, shoe, safety net, ladders, catwalks, etc. required for such type of work
and if required, insures the labourers against any accident, which may occur in
the course of execution of the job.

c) Making good any damage done to any property during execution of work.

d) All the construction materials shall be stocked neatly away from the battery
limits of plant area.

3.1.1.9 The materials, design and workmanship shall satisfy the relevant standards, the job
specifications contained herein and codes referred to. Where the job specifications
stipulate requirements in addition to those contained in the standard codes and
specifications, these additional requirements shall also be satisfied. Works shall be
carried out as per the instruction and directions of CPCL Engineer-in-charge, in the
absence of any standards/specification covering any part of the work covered in
this tender, the instructions/directions of Engineer-in-charge will be binding on the
contractor.

3.1.1.10 First Aid: The Bidder shall provide necessary first aid facilities to their personnel.
Depending on the availability at that time of need, CPCL may provide these facilities
entirely at its discretion. The cost of such assistance as worked out by CPCL shall
be recovered from the Bidder’s running bill as per EIC.

3.1.1.11 CPCL change house and toilet facilities are not available to contractor’s employees.
Contractor’s employees shall use the contractor’s toilet facilities located in Refinery.

3.1.1.12 Contractor’s vehicles and bicycles shall be allowed inside up to parking area
specified / allocated for contractors after obtaining proper entry passes and shall
be parked outside the Gate. CPCL assumes no responsibility for security of the
above.

3.1.1.13 No idle payment shall be applicable, incase if any power outage / work front not
provided due operational reason during the course of contract and no dispute shall
lie against this.
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3.1.1.14 CPCL reserve the right to award the contract for part of the quantities / area under
the subject work without the consent of contractor.

3.1.1.15 Whenever it is mentioned in the specification that the contractor shall perform
certain work or provide certain facilities / materials it is understood that the
contractor shall do so at his own cost unless otherwise specified.

3.1.2 LOCATION:

3.1.2.1 Manali Refinery: The Chennai Petroleum Corporation Ltd. (CPCL) Refinery is
situated in Manali in Thiruvallur District, Tamil Nadu, about 15 KM from Chennai
City. The site is located on the South of Thiruvottiyur – Ponneri Road.
3.1.2.2 Cauvery Basin Refinery :The Site, Cauvery Basin Refinery (CBR) of Chennai
Petroleum Corporation Limited is situated at Panangudi village in Nagapattinam
District, Tamilnadu and is about 5 km from Nagore Railway Station. CPCL’s main
refinery is situated at Manali in Thiruvallur District, Chennai, Tamilnadu.

3.1.3 SITE INSPECTION / SITE PARTICULARS:

3.1.3.1 The contractors shall inspect the site and assess the site conditions and satisfy
themselves as to the constraints, inadequacies, accessibility and such other
aspects and ensure that all such aspects are taken into consideration while
submitting quotes. No extra claims on these grounds shall be applicable.

3.1.3.2 The intending tenderers shall be deemed to have visited the site and familiarized
themselves thoroughly with the site conditions before submitting the tender. Non-
familiarity with the site conditions will not be considered a reason either for extra
claims or for not carrying out the work in strict conformity with drawings and
specifications. For site visit, the intending tenderer may contact the Manager
(Contracts Cell).

3.1.3.3 By virtue of 3.1.3.1 & 3.1.3.2 the successful contractor waives his right to dispute
at any point of time on any reason pertaining to “site”.

3.1.4 SPLITTING UP OF JOBS:

3.1.4.1 The acceptance of tender will rest with the CPCL. CPCL however, does not bind
itself to accept the lowest tender, and reserves to itself the authority to reject any or
all the tenders received without assigning any reason what so ever.

3.1.4.2 CPCL reserves the rights to take over the awarded jobs in full or part, if the progress
of the jobs are found behind schedules and unsatisfactory and carryout such jobs
through other agencies or departmentally. The risk and cost including supervising
cost upto 15 % of the total value of the reallocated job of such jobs taken over and
executed by CPCL will be recovered from the bidder.
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3.1.4.3 The total job shall be awarded to one single agency or as per methodology of
evaluation of offer.

3.1.5 TAXES:

3.1.5.1 Income Tax:

Income Tax shall be deducted from the Contractor’s bills as per the rules and
regulations in force in accordance with Income Tax Act prevailing from time to
time. Quoted rates shall be deemed to include this.

3.1.5.2 Goods and Service Tax (GST):

a) Type of contract: Refer Notice Inviting Tender

Services means anything other than goods, money and securities but includes
activities relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged.

b) Rate of GST Applicable: Refer Schedule of rate

c) TDS :

GST TDS has been notified by the Government with effect from 01.10.2018. GST
TDS at the rate of 2% will be deducted from the payment made or credited to the
supplier of taxable goods or services or both where the total value of contract
exceeds Two Lakh and Fifty Thousand.

d) Quoted Price:

Bidders’ quoted price shall be INCLUSIVE OF GOODS & SERVICE TAX.

Applicable GST shall be reimbursed by CPCL. GST amount paid by CPCL to the
vendors is to be deposited by vendors and a necessary return as per the provisions
of GST law is to be filed by the vendors.

In respect of transactions / situations where CPCL is entitled to Input Tax Credit

(ITC) of the GST charged by the vendor in the invoices issued to CPCL, in case
the GST amount paid to the vendor against any such invoice or invoices does not
get reflected in GSTR-2A / GSTR-2B or any other prescribed form / return of CPCL,
or any notice / demand / letter / order is issued to CPCL due to non-payment of
tax, short payment of tax, non-filing of returns, wrong filing of returns or any default
or mistake committed by the vendor or CPCL is unable to avail ITC for default of
the vendor, then to the extent of such loss including interest or penalties, CPCL
reserves the right to get indemnified by vendor or to recover such amount from
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future payments, security deposit or monies available with CPCL. Such recovery
is towards compensating CPCL for the loss of ITC and the same will be in the
nature of damages.

e) CGST & SGST / IGST:

Goods and service tax in respect of intra state supplies will attract CGST and
SGST at the prevailing rates. The invoice should clearly mention the CGST and
SGST separately.

In respect of interstate supplies IGST will be levied at the prevailing rates.

3.1.6 PRICE BASIS / FIRM PRICE:

Bidders shall quote their rates for respective items in the Schedule of Rates (SOR)
/ Bill of Quantities (BOQ) including GST.

The prices shall be kept FIRM till the completion of work and no
escalation/remission will be admissible for any reason whatsoever. (If PVC clause
is applicable, the same shall supersede this clause).

3.1.7 UN QUOTED ITEM:

Where offers are received with some items left blank / not quoted, then these
tenders shall be straightway rejected as an incomplete tender. However, the final
decision will be rest with CPCL based on the existing tender procedure manual and
the same is binding on bidder.

3.1.9 STIPULATIONS AND DEVIATIONS TO TENDER CLAUSES:

Tenderers are advised to submit the quotations strictly based on the terms and
conditions and specifications contained in the tender documents and not to
stipulate any deviations.

3.1.10 VERIFICATION OF DOCUMENTS:

The Tenderer may please note that they are required to produce Originals of the
Experience certificates and other documents, copies of which were submitted by
them along-with their requisitions for issue of Tender Schedules at Works
Contracts Department before issue of work order / Letter of Intent for verification,
if required.
The tenderer shall note that if the documents submitted by them at the time of
Requisition for issue of Tender Documents or afterwards are found to be incorrect/
fraudulent/ forged, the contract shall be liable for termination without any further
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notice to the contractor and the work shall be got executed by CPCL at the risk &
cost of the contractor, other actions like debarring / blacklisting also may be taken
at the discretion of CPCL without prejudice to the right of CPCL to recover
loss/damage/cost and other remedies under loss.

3.1.11 SUBMISSION OF FALSE DOCUMENTS:

If at any time during the tendering process, prior to the award of contract, it is found
that the Bidder has submitted false/fabricated documents, as evidence towards
fulfillment of the Pre-Qualification Criteria or towards meeting any other
requirement of the tender, CPCL apart from exercising its other legal entitlements,
reserves the right to disqualify the Bidder from the tender and recover from the
Bidder, an amount equal to the Earnest Money Deposit / Bid Security, as
Liquidated Damages. They may be subject to other acts like debarring/
blacklisiting at the discretion of CPCL

3.1.12 ABNORMAL RATES:

The contractor is expected to quote rate after careful analysis of costs involved for
the performance of the complete item consisting all specifications and conditions
of the contract. If it is noticed that the rate quoted by the Tenderer is unusually high
or unusually low, it will be sufficient cause for rejection of the tender unless the
owner is convinced about the reasonableness of the rate on scrutiny of the analysis
for such rate to be furnished by the tenderer on demand. Notwithstanding anything
therein stated, the rate once accepted by the owner shall be FINAL and shall not
be subject to any claim either on account of unworkability of rates or on any other
ground whatsoever.

3.1.13 REDRESSAL OF GRIEVANCES OF TENDER PARTIES:

The grievances, if any, of tendering parties shall be lodged with the coordinator
of the Grievance Redressal Cell of CPCL, with a copy to the Tender Inviting
Authority.

Name of the Coordinator of the Grievance Redressal Cell:

Shri. S.Sadagopan,ChiefGeneral Manager (Logistics&Projects)

Chennai Petroleum Corporation Limited

536, Anna Salai, Teynampet,
Chennai-600 018
Telephone No: 044-25941192
Mail id:ssadagopan@cpcl.co.in

This Cell will examine the grievances and put up its recommendations to the
concerned Functional Director, who will be the Grievance Officer.
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Grievances regarding the pre-qualification shall be submitted to the coordinator

within five working days from the date of publication calling for pre-qualification bid.

Grievances regarding the Letter Inviting Tender (Challenging the condition of

tender) shall be submitted to the coordinator within three working days from the
last date of sale of tender documents. The grievances received later than three
working days will not be entertained.

Grievances regarding the tender process (other than LIT related grievances) shall
be submitted to the Coordinator before the tender document opening.

The decision taken by the Grievance Officer will thereafter be communicated to

the aggrieved party, in writing, by the Coordinator of the Grievance Redressal Cell.

In case the Tendering Party is not satisfied with the decision of the Grievance
Officer, he will have the right of appeal against the Orders of the Grievance Officer.
This Appeal will be considered and disposed of by a Committee of Functional
Directors of the Company. The Tendering Party shall file his Appeal before the
Coordinator of the Grievance Redressal Cell. The decision of the Committee shall
be final and binding.

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Special Conditions of Contract for Execution

3.2.1 SITE ORGANIZATION:

3.2.1.1 Subject to the provision in the tender document and without prejudice to contractor’s
liabilities and responsibilities to provide adequate qualified and skilled personnel on
the work, contractor shall deploy site organization and augment the same as
decided by EIC from time to time depending on the exigencies of work.

3.2.1.2 The tenderer shall submit the details of site organization proposed by them to the
EIC prior to commencement of work.

3.2.2 DEPLOYMENT DETAILS:

All key personnel shall be adequately qualified and experienced to handle the
relevant work. The contractor shall provide the list and qualifications of all
personnel proposed to be employed to carry out the jobs as per scope of work for
this contract the work. However, it shall be the contractor’s responsibility to ensure
timely, efficient, reliable, productive and safe completion of assigned work to the
best practice and system employed at similar refineries. The contractor shall
deploy his labour as per requirement of the EIC. It may be necessary to carry out
the work on round the clock based on requirement. Contractor has to submit the
required details of the work force as per the format attached. Contractor has to
take the responsibility of their working crew and stand guarantee for their integrity.

3.2.3 CONTRACTOR'S REPRESENTATIVE:

3.2.3.1 The Contractor’s Representative should be available round the clock with telephone
facilities at Chennai to attend and cater to urgent calls. The contractor’s
representative should also have a cell phone facility. The contractor’s
representative has to work on round the clock basis, including working on Sundays
and Company Holidays if situation so demands, without resorting to any extra claim.

3.2.3.2 Contractor's Representative / Site Engineer shall be stationed permanently at the

site inside CPCL, Manali Refinery during General Shift working hours on full time
basis and shall be responsible for all necessary liaison and coordination in
connection with this contract on Contractor's behalf. The Site supervisors shall be
dedicated exclusively for administration and execution of this contract for the
individual areas.

3.2.3.3 The contractor's supervisory personnel must at all times be available in cases of
emergency and the contractor must implement an efficient call-out procedure. To
this end, the contractor shall provide effective communication system, to his Site
supervisors for immediate contacts. They must also have telephones installed in
their place of residence, which should be operative at all times, so that they may be
reached for any work beyond normal general shift working hours.

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3.2.4 WORK TIMINGS AND SPECIFIC WORK REQUIREMENTS:

3.2.4.1 The contractor shall work on Round the clock basis including Saturday, Sunday and
Company declared holidays so as to complete the job within the stipulated time.
There shall not be any extra payment for working on extended hours, on Sundays,
Round the clock and Company declared holidays.

Normally the work will be carried out during the general shift hours on the CPCL’s
working days only. In case of any deviation from this the contractor shall have to
take prior permission from the Engineer-in-charge.

3.2.4.2 All jobs shall be performed from 07.30 hrs. to 16.00 hrs. on each day. Contractor
shall deploy adequate manpower so as to ensure smooth and uninterrupted
progress of work.

3.2.4.3 If required, the contractor shall work on Round the clock basis including Saturday,
Sunday and Company declared holidays so as to complete the job within the
stipulated time. There shall not be any extra payment for working on extended
hours, on Sundays, Round the clock and Company declared holidays.

3.2.4.4 Whilst the contractor is directed to comply with the CPCL shift timings / shift roster
for the work, the directions of the Engineer-in-charge will be final and binding on
the contractor.

3.2.4.5 The Engineer-in-charge can change the shift roaster of the contractor and re-
organize for Shift and General Shift requirements. The re-organization shall be
binding on the contractor.

3.2.4.6 Break Timings in work for coffee/tea/lunch/dinner shall be as per CPCL timings.
The contractor shall provide sufficient contact telephone numbers.

3.2.4.7 If required, the contractor shall be prepared to mobilize additional resources by way
of manpower, equipment, tools& Tackles etc as per instructions of Engineer-in-
charge without any additional compensation so as to complete all the shutdown
works within the contract period.

3.2.4.8 Contractor shall deploy adequate manpower in all the shifts so as to ensure smooth
and uninterrupted progress of work.

3.2.4.9 Normally, CPCL work timings is detailed below and until the reliever reaches the
work site the already deployed personnel shall not leave the work spot. The
supervisor shall report to EIC and then only leave the work site. A detailed logbook
shall be maintained by the contractor for all the works and shall be countersigned
by the EIC.

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 General Shift: 0730 hrs to 1600 hrs

 Morning Shift: 0615 hrs to 1415 hrs
 Evening shift: 1415 hrs to 2215 hrs
 Night Shift: 2215 hrs to 0615 hrs (next day)

3.2.5 ENTRY AND EXIT TIMINGS:

The contractor, his supervisors and workmen shall observe entry and exit timings
strictly. The Contractor’s men can enter Refinery premises only when in possession
of a valid security photo pass and through labour entry gate. CPCL will authorize
issue of the required number of security photo passes to the contractors. It is the
responsibility of the Contractor to collect the required security photo passes from
the Security and distributes the same to their workmen and sees that security
controls are strictly followed.

3.2.6 SECURITY:

The Refinery being a protected area, entry into the Refinery/Project area shall be
restricted and governed by issue of photo gate passes by the Security/CISF. The
Contractor shall arrange to obtain through the Engineer-in-Charge, well in
advance, all necessary entry permits/gate passes for his staff and labour and entry
and exist of his men and materials shall be subject to vigorous check by the
security staff. The Contractor shall not be eligible for any claim or extension of
time whatsoever on this account. The Contractor and his staff and labour shall be
bound by all the security, fire and safety regulations of the refinery and any default
of the Contractor or his staff and labour in this regard, as to which the opinion of
the Engineer-in-Charge shall be final and binding on the Contractor, shall
constitute an infringement of relevant clause of General Conditions of Contract
with consequences as laid down in the said clause and other associated clauses.

CPCL will not assume any responsibility for the security of Contractor’s materials,
equipment, tools and tackles.

3.2.7 ORDER OF WORKS / PERMISSIONS / RIGHT OF ENTRY / CARE OF EXISTING

SERVICE:

The order in which the work to be carried-out, shall be subject to the approval of
the Engineer-in-Charge (EIC) and shall be so as to suit the detailed method of
construction adapted by the contractor, as well as the agreed joint program.

The work shall be carried out in a manner so as to enable the other contractors, if
any, to work concurrently. Coordination with other agencies will be contractor’s
responsibility. In case of any disputes the decision of Engineer-in-charge shall be
final & binding on the contractor. Owner reserves right to fix up priorities which will
be conveyed by Engineer-in-charge and the contractor shall plan and execute work
accordingly. The contractor at his own cost shall guard drains, pipes, cables,

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overhead wires and similar services encountered in the course of the works from
damage. Should any damage done by the contractor to any mains, pipes, cables
or lines (whether above or below ground etc.) whether or not shown on the
drawings the contractor must make good or bear the cost of making good the same
without delay to the satisfaction of the Engineer-in-charge.

3.2.8 CO-ORDINATION WITH OTHER AGENCIES:

The contractor shall be responsible for proper co-ordination with all agencies within
the refinery for smooth completion of work. The contractor shall obtain the
necessary clearances / permits from for carrying out the entire work to the
satisfaction of the Engineer-in-charge.

3.2.9 FRONTS FOR WORKS:

The work involved under this contract includes such works as have to be taken up
and completed after other agencies on the job have completed their jobs. The
contractor will be required and bound to take up and complete such works as and
when the fronts are available for the same and no claim of any sort whatsoever
shall be admissible to the contractor on this account. Only extension of time limit
shall be admissible, if the availabilities of work fronts to the contractor are delayed
due to any reasons not attributable to the Contractor.

3.2.10 MAKE OF MATERIALS:

The materials required to be supplied by the contractor under this contract shall be
procured only from CPCL approved Tenderers. Where the makes of materials are
not indicated in the bidding document the contractor shall furnish the details of
makes shall obtain prior approval of Engineer-in -charge of Tenderers / sub
Tenderers before placing order.

3.2.11 CANTEEN ARRANGEMENTS:

The Bidder shall make his own canteen arrangement for his workmen, which shall
be operated only on restricted timings as followed by CPCL. The Bidder shall not
establish a canteen within the site premises. The place of taking lunch / dinner is
as per the prevailing practices. As a security measures the contract workmen are
not allowed to take their food items along with them to their work site and are
directed to keep in the designated place as per the prevailing practices.

3.2.12 TRANSPORTATION OF MEN / MATERIALS AND ACCOUNTING OF

MATERIALS:

3.2.12.1 Contractor shall ensure that the materials drawn by him from the Owners' Stores /
Tool room are properly identified and segregated and kept safely while in
Contractor's custody. Transportation to & fro the Owners' Stores and work site is
contractor's responsibility. Unused materials shall be returned by the Contractor to
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the Owners' Stores through the CPCL Engineer-in-charge through Material Return
Notes and proper accounting of materials shall be done by the Contractor while
bills are submitted for payment failing which twice cost of unaccounted materials
will be back charged to the Contractor.

3.2.12.2 All transportation requirements for manpower in General shift / shifts, materials etc
have to be arranged by the contractor. CPCL will not provide any mode of
assistance for transportation.

3.2.13 DRESS CODE:

3.2.13.1 While on duty, all employees will wear the IFR and PPE provided by the contractor.

3.2.13.2 Head gear / wear would be worn on duty for safety and as part of uniform.
Contractor shall ensure that their uniform is not similar to that of CPCL.

3.2.13.3 All the staff shall wear safety Shoes. The contractor shall provide closed shoes for
safety reasons. The staff will ensure wearing respective work masks, safety gloves
and belts as and when required.

3.2.13.4 All Staff should have been trained on Safety and First Aid. The company would
conduct training sessions on use of fire fighting equipment and Fire Drill for all the
contract workmen and the sessions have to be attended without fail. The staff
should be trained to face emergency situations, such programs could be industry
specific and as such it would be conducted in coordination with the Engineer-in-
charge.

3.2.14 STRIKE BY CONTRACTOR:

The Contractor shall not stop or cause stoppage of work during the period of the
contract by resorting to strike or other agitation methods or by their workmen / their
authorized applicator The Contractor agrees that they shall be liable for all
consequences for the delay caused or loss / damages suffered by CPCL due to
the stoppage / strike by the Contractor. CPCL shall recover the cost incurred on
this account from the contractors’ running account bills.

3.2.15 HOUSE KEEPING:

3.2.15.1 It shall be the contractor’s responsibility to keep the work area clean and tidy
always throughout the course of work. House keeping shall be done during every
shift / on a day-to-day basis.

3.2.15.2 Scrap material generated during the course of the work shall be dumped at the
designated area as per the instructions of Engineer-in-Charge issued from time to
time with in the Refinery premise by using suitable mobile equipment at no extra

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cost to owners. All metal scraps are to be segregated, weighed and handed over
to CPCL Materials Department.

3.2.15.3 Empty Paint drums / tins should not be left at the work place. Being fire hazard,
empty drums / tins shall be collected and stacked near their storage place safely.
The contractor shall clear the drums from site once in 6 months, with proper
gatepasses duly signed by EIC, supported by their inpasses.

3.2.15.4 If house keeping is not done at work site on a day to day basis / on completion of
work to the satisfaction of the EIC / Inspecting authority, CPCL shall impose a
penalty, subject to max of 5% (Five Percentage) of the value of work for non-
performance of house keeping, at the discretion of EIC and the same will be
binding on the contractor.

3.2.16 SUB–CONTRACTOR:

3.2.16.1 At the commencement of the job the contractor shall supply to the Engineer–in–
Charge, list of all sub – contractors or other persons or firms engaged by the
contractor to work at the site. Any tenderer who had submitted the bid and pre-
qualified for the tender and does not get the contract because of his being not the
lowest will be prohibited from working as sub–contractor for execution of this
contract. List of unsuccessful tenderers shall be provided for in the contract
agreement.

3.2.16.2 The tenderer shall indicate in his offer the works, which he intends to sublet to the
sub– contractors. The Contract Agreement will specify the major works for which
the Contractor proposes to engage the sub – contractor. The contractor from time
to time propose an addition or deletion to the list and will submit proposals in this
regard to the Engineer–in–Charge for approval well in advance so as not to impede
the progress of work. Such approval of the Engineer–in–Charge will not relive the
contractor from any of his obligations, duties and responsibilities under the
contract.

3.2.17 SYSTEM AND DOCUMENTATION:

As part of the contract, it shall be responsibility of the contractor to follow

comprehensive systems, documentation and manuals for the maintenance
activities and safety practices for all activities within the scope of work as per the
direction of the EIC.

3.2.18 WORK SCHEDULE AND PROGRESS REPORT:

Time is the essence of the contract and timely completion is the primary
responsibility of the Contractor. Work Schedules will be drawn up by the Engineer-

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in-charge and the contractor shall scrupulously adhere to the targets by timely
deploying all resources as per the scope of work specified under this contract. In
all matters concerning the extent of targets set out in the work schedule and the
degree of achievement, the decision of Engineer-in-charge will be final and binding
on the contractor. Contractor shall attend co-ordination meetings with the
Engineer-in-charge for work without fail as and when required.

The contractor shall submit daily, reports for all the activities envisaged in the
various sections of the bid document.

3.2.19 AFTER THE AWARD OF CONTRACT (B) :

The contractor shall present the programme and status at various review meetings
as required.

A. Weekly Review Meeting:

Level of Participation : Contractor’s/Consultant’s RCM / Site

In charge and Job Engineers.

Agenda : a) Weekly programme v/s actual

achieved in the past week and
programme for next week.
b) Remedial Actions and hold up
analysis.
c) Client query/approval
Venue : Office of EIC

B. Monthly Review Meeting:

Level of Participation : Senior Officers of CPCL and contractors.

a) Progress Status/Statistics.
b) Completion Outlook.
c) Major hold ups/slippages.
d) Assistance required.
e) Critical issues.
f) Client query/approval

Venue : Office of EIC CPCL/ Site Office

3.2.20 PROGRESS REPORTS:

A) Monthly Progress Report:

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This report shall be submitted on a monthly basis within Ten Calendar days from
cut-off date as agreed upon, covering overall scenario of the work. The report shall
include but not be limited, to the following:

a) Brief introduction of the work.

b) Activities executed / achievements during the month.
c) Schedule v/s actual percentage progress and curves for engineering,
sub-ordering, manufacturing / delivery, sub-contracting, construction
and overall Work.
d) Quantum wise status of purchase orders against schedule shall also be
indicated.
e) Areas of concern / problem / hold ups, impact and action plans.
f) Resources deployment status.
g) Annexures giving status summary for Materials Requisitions and deliveries,
sub-contracting and construction.

B) Weekly Report:

This report will be prepared and submitted by the contractor on weekly basis and
will cover following items:

a) Activities programmed and completed during the week.

b) Resource deployed men and machine.
c) Qty achieved against target in construction.
d) Construction percentage progress, schedule and actual.

3.2.21 SUPERVISION:

The contractor shall have to engage sufficient number of skilled persons to

supervise and execute the work. The contractor shall solely be responsible for any
defective construction/ rectification as a result of poor supervision.

3.2.22 DISCREPANCIES IN THE CONTRACT DOCUMENTS:

In case of any discrepancies in the contract document, the decision of the

Engineer-In-Charge is final and binding on the Contractor regarding interpretation
of any clause(s).

3.2.23 SPECIFICATIONS / CODES AND STANDARDS:

All works under this Contract will be executed according to the Specification for
works are given in attachments. Whenever the details are not specifically covered
in the specifications, relevant provisions in the latest revision and/ or replacements
of the Indian Standard Specifications (IS) or any other Inter-national Code of
Practice/CPWD specifications will be followed. The Contractor shall have to
procure copies of such codes/ standards for ready reference of his own personnel

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as well as the CPCLs’ Engineers at site at his own cost and without any additional
reimbursement.

3.2.24 GOVERNMENT ACTS AND LOCAL RULES:

3.2.24.1 The contractor shall conform to the provisions of all local laws / bye-laws and
regulations relating to the work and pay all fees payable to such authorities for
execution of the work involved. CPCL shall not be responsible for such liabilities
and claims.

3.2.24.2 The contractor shall comply with the provisions of all labour legislation's including
the requirements of Payment of Minimum Wages Act 1948, Workmen
Compensation Act, Contract Labour (Regulation & Abolition Act, 1970 & Central
Rules, 1971) Act, EPF & ESI Acts, Prevention of Child Labour Act, (No child labour
shall be employed by the Contractor), Indian Contract Act., Shops & Establishment
Act, etc.

a. Payment of Minimum Wages:

1. Contractors should strictly comply with the provisions of the Minimum Wages Act
1948. In this regard, they should follow the directions / notifications issued by the
Ministry of Labour / Government of India from time to time on the above subject.
However, in case the Minimum Wages prescribed by the Commissioner of Labour
in Tamil Nadu are higher than the wages prescribed by the Commissioner of
Labour (Central) then the Contractor has to follow only the higher wages for
making payment. Contractor should accordingly comply with the aforesaid
provisions. Wages to the workmen should be paid on or before the 7th of the
subsequent month. If 7th falls on a holiday or weekly off day, the payment should
be made one day prior. PF for the month, both the employer’s (in this case
contractor) and employee’s (in this case workman employed by the contractor)
contributions should be deposited in the bank in the permanent PF code numbers
and challan should be obtained before the 15th of the subsequent month and
forwarded to the EIC. In case of failure of the contractor to comply with any of the
above, punitive action will be taken by EIC/CPCL as stipulated in this tender. It is
deemed to have understood and accepted that the payment of wages are done
upfront by the successful contractor.The relevant registers/documents in support
of the wage payment to workmen shall be maintained by the contractor and shall
be made available for inspection by the client statutory bodies as and when
required. In case of non- compliance of the provision of minimum wage act, the
contracts shall be terminated forthwith and contractor will be liable for legal
penalization.

2. The Contractor shall not pay his work force less than the minimum wages as
notified by the Government for the nature of jobs to be done by his workers in this
area and shall also be liable to pay at such rates in case of any increase revision /
change in minimum wages during the contractual period.

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b. Workmen Compensation Act & Contract Labour Act:

1. The contractor shall comply with statuary requirements such as possession of valid
labour license, adequate Insurance coverage for his workmen under workmen’s
compensation act, ESI Coverage, wages as per minimum wage act for is work
men to totally absolve CPCL of any and all liabilities which might result in case of
accidents.
2. All liabilities like salaries, wages and other statutory obligations in respect of the
persons engaged by the contractor shall be borne by the contractor during the
period of agreement. In view of the provisions of the ESI Act, P.F. and the EPF
Act and other Act as may be applicable to CPCL, the contractor shall take
necessary steps to cover their employees under the said enactment’s and shall
submit proof of such compliance to CPCL periodically, or at any date upon such
request, as may be made by CPCL to the contractor. In the event of non-
compliance with the statute or the provisions thereof, referred to above, it shall be
open to CPCL to withhold such amount as in its opinion is due and payable by the
contractor in respect of its employees from and out of dues, payable by CPCL to
the contractor and such due shall be held by CPCL with it until proof is submitted
by the contractor to CPCL indicating compliance with such statutes within
reasonable time, failing which CPCL shall deposit such amounts with the
authorities concerned on behalf of the contractor and inform the contractor of such
deposit or deposits.

3. The Contractor shall obtain necessary license from the Licensing Authority under
the Contract Labour (Regulation & Abolition) Act, 1970 and the Central Rules
framed there under and produce the same to the Engineer-in-Charge before start
of work.

4. The Contractor shall not undertake or execute or permit any other agency or sub-
contractor to undertake or execute any work on the Contractor’s behalf through
contract labour except under and in accordance with the licence issued in that
behalf by the Licensing Officer or other authority prescribed under the Factories
Act or the contract labour (Regulation & Abolition) Act-1970 or their applicable law,
rule or regulation, if applicable.

5. The Contractor Shall maintains registers and records under contract labour
(Regulation & Abolition) Act 1970 and any amendment thereto as per following list.

- Register of workmen in Form No. XIII

- Employment card for each worker in Form No. XIV
- Service Certificate on termination of employment in Form No. XV
- Muster Roll in Form XVI
- Register of wages in Form No. XVII
- Register of wages cum muster Roll in Form No. XVIII
- Wage Slip to Each Workman in Form XIX.
- Register of Deductions for damages [or] loss in Form No. XX
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- Register of fines in Form No. XXI

- Register of Advances in Form No. XXII
- Register of Overtime in Form No. XXIII
- Display abstract of CLRA Act. 1970

6. The Contractor shall send a half-yearly return in Form No. XXIV in duplicate (one
copy to the Licensing Officer and another to the Management) within 30 days from
the close of half-year.

7. The Contractor shall have to produce Labour license from Labour department from
the office of the Assistant labour Commissioner (Central), before the
commencement of the work.

8. The Contractor shall maintain a register showing Name, Father’s Name,

Designation, Date of birth and address of the persons engaged along with
photographs of such person and shall produce the same for Inspection on demand
by the concerned authority.

9. Every Contractor shall furnish declaration in Form No.1 and list of persons to be
engaged by him / them for the subject work in Form No.11 prior to commencement
of job.

10. A statement in Form No. III verified by the concerned EIC shall have to be enclosed
with the Contractor’s monthly bills.

11. The Contractor shall abide by all the rules and follow the system/procedure framed
by the owner for securing compliance of various provisions of the statutory labour
Acts applicable to the owner.

12. The contractor shall obtain insurance coverage in respect of workmen towards
compensation as admissible under workmen’s’ compensation Act.1923 upon
disablement of workmen.

c. ESI & EPF Regulations:

1. The contractor shall follow the rules / regulations of EPF and ESI and any
amendment thereto submit the following and ensure total compliance.

2. The contractor shall ensure strict compliance with provisions of the Employee’s
provident Fund Act, 1952 and the scheme framed there under in so far as they are
applicable to their establishment and agencies engaged by them.

3. The provision of EPF Act and the Rules / Schemes thereunder shall be applicable
to the Contractor and the employees engaged by him for the work. The Contractor
shall furnish the code number allotted by the RPFC Authority, to the Engineer-in-
Charge before commencing the work.

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4. The contractor shall submit a copy of the Provident Fund membership certificate /
PF CODE number and ESIC certificate / Code number issued by concerned
authorities and it should be on individual name. A certificate from the Office of
Regional Provident Fund Commissioner, and ESIC authorities, certifying
submission of Provident Fund contribution towards all the employees engaged by
the contractor, to be submitted to EIC.

5. The Contractor has to maintain various records and registers of all details called
for by EPF organisation for the labour employed by them and has to submit the
same at any time if called for.
6. The Contractor shall send the following forms to the P.F. authorities.

Form No.2 -Declaration / Nomination from for P.F.

Form No.9 - Declaration Form
Form No.11 – Declaration/Nomination Form for pension schemes.
Monthly statement of contribution with triplicate copies of the copies of the
challan.
Form no.13 shall be required to be filled in case employees shifting from one
contractor to another.

7. The Contractor should submit copy of the EPF and ESI challans to the EIC, for
monthly remittances to the concerned authorities, by 25th of subsequent month
without fail.

8. Applicable amount will be deducted from the bill by EIC for non submission of the
documentary evidences towards the payments for ESI/PF and this shall be
minimum of 10 % or as per EIC.

9. Clearance of Final Bills by CPCL’s Contract Labour Management (CLM) Cell:

The Contractor shall

a. Enforce the provisions of ESI / EPF Act and Scheme framed there under with
regard to all the workmen / employees involved in the performance of the Contract.

b. Deduct ESI / EPF employee’s contribution from the wages of each of the
employees and deposit the same together with employer’s contribution of such
total wages payable to the employees in the appropriate account.

c. Submit documents / challan towards proof of remittance towards ESI / EPF for the
workers engaged for this work along with every RA bill to the Engineer-In-Charge.

d. Submit copies of ESI / EPF Challans every month during the Contract period to
CLM Cell.

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e. CLM Cell will not give clearance for the final bill unless ESI and EPF remittances
are made fully by the Contractor for the entire contract period and retained deposit
will be refunded to the contractor only on production of documents / challan.

d. Child Labour Prohibition:

The contractor shall strictly comply with provisions of various enactment on child
labour including "Child Labour (Prohibition & Regulation) Act, 1986 and shall not
engage any labour below the age of 18 years for any kind of work in the Refinery
premises. CPCL reserves the right to terminate the contract for violation of the
provisions of the above enactment. CPCL reserves the right to reject the persons
found not suitable for the job.

e. Compliance to Indian Factories Act & Tamil Nadu Factories Rules:

The contractor shall follow the provisions of Indian Factories Act and all rules made
there under from time to time as applicable and shall indemnify the employer
against all claims of compensations under the provisions of the act in respect of
workmen employed by the contractor in carrying out the work against all costs,
expenses and penalties that may be incurred by the employer in connection
therewith.

f. Wage Record:

The contractor shall maintain and submit wage records, work commencement/
completion certificate etc. for bill clearance. The Contractor should submit
Attendance / Salary Disbursement Register for the workmen engaged, by 25th of
subsequent month. The Contractor shall, whenever required by the Company or
Government Officials authorized under the Statutes, produce for inspection, all
forms, registers and other documents required to be maintained under various
statutes.

3.2.24.3 In the event of any claim arising due to breach of any of these laws, Rules and
regulations relating to the above subject, the contractor would be personally liable
for such breaches, violation [or] contravention of provisions of the above laws, rules,
codes etc., and in case of his failure to make payment, if owner is required to pay,
the contractor will indemnify the owner against all such claims.

3.2.24.4 The approval from any authority required as per statutory rules and regulations of
Central / State Govt., shall be responsibility of the contractor.

3.2.24.5 The Contractor shall be exclusively responsible for any delay in commencing the
work on account of delay in obtaining a license or in obtaining the code number and
the same shall not constitute a ground for extension of time for any purpose.

3.2.25 INDEMNIFICATION:

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The contractor is also required to indemnify the employer, if required and as decided
by the Engineer-in-charge, against any loss or claim or penalties or damages
whatsoever resulting out of non-compliance on the part of the contractor with the
provisions of aforesaid act and the schemes framed there under.

3.2.26 LAWS GOVERNING THE CONTRACT:

The Laws of India will govern the Contract for the time being in force and as
amended or made from time to time.

3.2.27 COMPLIANCE WITH STATUTORY & SAFETY REQUIREMENTS:

The contractor shall ensure that work procedures and actions fully conform with all
the relevant statutes, acts, laws and bye–laws applicable at time to time.

3.2.28 COMPLIANCE TO ISO:

The successful bidder shall comply with the guidelines and procedure of CPCL’s
ISO-9001, ISO-14001, ISO-18001. The documentation in this regard shall be
referred at the office of the CM (TPM/ISO) prior to bidding and during execution of
work.

3.2.29 INSURANCE:

3.2.29.1 Indemnity by the Contractor:

The contractor shall be responsible at all times during the currency of the contract
for and shall defend, hold harmless and indemnify the Owner and or the Owner
indemnified parties from and against any and all claims, liabilities, costs, damages
and expenses (including court cost and legal fees) arising whether by way of
indemnity or otherwise, in relation to any and all losses of every kind and nature
resulting from damage to or loss or, loss of use or recovery, or destruction of
property, or sickness, injury or death suffered by any personnel or consultant of
the contractor, its affiliates, agents or sub-contractors and damage to or loss or,
loss of use or recovery or destruction of any property or equipment belonging or
contracted to or otherwise in the custody of the contractor its affiliates, agents or
sub-contractors or its or their personnel or consultants (other than Owner
equipment) in connection with the performance of this contract regardless of any
cause howsoever arising specifically including but not limited to the default and /or
willful misconduct and / or negligence of the owner.

3.2.29.2 Contractor’s Personnel and Property:

The contractor shall be liable for and shall indemnify the owner, the participants
and owner’s personnel from and against all claims in respect of any death or injury
or contractor’s personnel and any damage to contractor’s property in each case

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caused by or arising out of the performance of this contract and whether or not
arising in respect of a serious event. The assumption of liability and the indemnity
contained in this clause extends to any claims made against the owner pursuant
to any provision of any agreement, whenever effective, under which owner
assumes liability in respect of and or indemnifies and or otherwise compensates
any other person or body in respect of the death or injury of contractor’s personnel
and any damage to contractor’s property arising in respect of a serious event.

All contractor’s personnel which may include permanent, temporary or casual,

servants, agents and / or representatives, contractual or otherwise, either
contractor’s and /or their sub-contractors, affiliates/subsidiaries/co-ventures shall
be covered under contractor’s workers compensation and employers liability
insurance of statutory benefits and any damages or compensation payable in
respect of accidents of injury as set forth and required by applicable law in the area
of operations or such other jurisdiction under which contractor may become
obligated to pay benefits. Employers’ liability insurance, including appropriate
coverage covering all contractors’ personnel shall be provided to meet the
requirement of this clause or as required by applicable statute, whichever is
greater. Workmen’s compensation and / or employers’ liability insurance covers
or coverage of comparable nature, to the full extent required by all statute/laws
applicable in any jurisdiction of operations hereunder in the course of contract shall
be effected by the contractor for the appropriate limits and for the entire period of
the contract.

3.2.29.3 Personnel Injury and Property Damages:

a. Contractor shall indemnify and hold harmless the indemnified all claims resulting
from personal injury to any personnel, employees, sub-contractors or agents of
contractor or damage to any property of contractor or any employees or agent or
sub-contractor arising out of the performance of the services, whether or not the
personnel injury or damage to property is caused by or contributed to by the
negligence or other legal fault of the indemnified.

b. Contractor shall further indemnify and hold harmless the indemnified against all
claims resulting from personal injury to any person (s) (other than employee or
agent of contractor or employee or agent of owner) or damage to any property to
the extent that the personal injury or damage is contributed to by negligence or
other legal fault of the contractor.

3.2.29.4 Third party and Third party property:

Third party liability insurance shall be provided for liability arising from all
operations of contractor including accidental / similar liabilities. The policy shall
include coverage for premises and operations including operations off shore. It is
expressly the term third party shall mean and include any person other than that
employed by contractor himself and shall not extend to any person in employment

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of owner or sub-contractor / associates / affiliates / subsidiaries/ co-ventures and

or other similar agencies.

Contractor shall be liable for and shall indemnify Owner and owner’s personnel
from and against all claims in respect of any death or injury of a third party and any
damage to third party property upto a sum of Rs. Five Lakh in respect of each and
any single incident caused by or arising out of the performance of this contract by
contractor or its sub-contractors. If any such claim or claims exceeds Rs. five Lakh
liability for the excess shall, as between the Owner and the contractor, be borne in
proportion to what the respective liabilities (if any) in the law of negligence are or
would be in respect of the incident in question.

3.2.29.5 Due Diligence:

Apart from complying with the various expressed conditions it is necessary for the
contractor to take reasonable precautions.

- For safety of the property insured.

- In selection of labour
- To prevent injury, loss or damage
- To ensure all compliances including safety, etc. at all times during terms
of contract

It is also requires that the insured

-To allow the insurer’s access to examine the insured’s premises plant and
equipment
-To minimize loss in the event of an accident

3.2.29.6 Compliance with Insurance Warranty:

The contractor is solely responsible for all the insurance warranties attached to the
policies taken by him. The owner should not be held responsible in any manner
for non-compliance of the warranty.

3.2.29.7 Description not Limitation:

The insurance coverage referred to the relevant clause connected with insurance
indemnity shall be set forth in full in the respective Policy forms, and the foregoing
descriptions of such Policies are not intended to be complete, nor to alter or amend
any provision of the actual Policies and in matters, if any, in which the said
description may be conflicting with such instruments, the provisions of the Policies
of the insurance mutually agreed by the parties shall govern, provided, however,
that neither the content of any Insurance Policy or Certificate nor owner’s approval
thereof shall relieve the Contractor of any of its obligations under the Contract.

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3.2.29.8 Any other Insurance as required under Law:

CONTRACTOR shall also carry and maintain any and all other insurance(s), which
may be required under any law or regulation from time to time without any extra
cost to OWNER. Contractor shall also carry and maintain any other insurance,
which may be reasonably required by OWNER.

3.2.29.9 General Insurance Requirement:

All insurance’s required under Clause shall be on terms and conditions issued by
insurance companies or underwriters acceptable to the Owner.

3.2.29.10 Non Performance of Contractors Insurance Companies:

The insolvency, liquidation, bankruptcy or failure of any insurance company

providing insurance for Contractor or its sub-contractors or failure or denial of any
such insurance Company to pay claims accruing, shall not be considered a waiver
of, nor shall it excuse Contractor from complying with, any of the provisions of this
Contract. Nevertheless, such liability shall be to the sole account of the Contractor.

3.2.29.11 Failure to provide required Insurance:

In the event that owner reasonably disapproves of the insurance companies

concerned, or if any of the insurance policies be not procured or maintained
pursuant to owner, at its option, may notify contractor that the failure to provide the
insurance is a material omission whereupon it is agreed that owner, at its sole
option, shall have the right either to purchase similar coverage, the cost thereof to
be reimbursed forthwith by Contractor to Owner, or alternatively, to be deducted
by the owner from any sum due or thereafter becoming due to contractor from
owner whether under this contract or any other contract to which both owner and
contractor are parties. In any case, the liability in such situations shall be to the
sole account of the Contractor.
Owner, exercising right to take appropriate policy under the above situation will in
no way make themselves liable even if there is any deficiency in the Policy so
availed of.

3.2.29.12 No Limitation of Liability

The required coverage referred to and set forth in the relevant Clause shall in no
way affect or limit Contractor’s liability with respect to performance of the work or
any obligation under the Contract.

3.2.29.13 Period of the Insurance:

The contractor shall take the required insurance cover as above for this work and
shall effective from the date of signing of agreement with the owner. Policies shall

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be renewed regularly till the completion of contract period including extension if

any.

3.2.29.14 Owner’s Personnel and Property:

Owner shall be liable for and shall indemnity contractor, its sub-contractors and
contractor’s personnel from and against all claims in respect of any death or injury
of Owner’s personnel and any damage to Owner’s property, in each case cause
by arising out of the performance of this contract and whether or not arising in
respect of a serious event.

The CONTRACTOR shall take required insurance cover for all personnel and
equipment controlled by him, including risk of consequential liabilities in the event
of accidents or incidents created by human error and / or break down of equipment
under the control of the contractor, so as to indemnify CPCL. Details of insurance
cover and cost considered for covering:

 Workmen compensation and / or Personal Accident for Contractors Personnel /

Staff including Crew Members.

 COMPREHENSIVE GENERAL LIABILITY (Consequential Liability) Subject to

an upper limit of Rs.5.00 Lakh covering Third Party Liability including property
and personal injury.

The Contractor will Co-Operate with CPCL for all disclosure and evidences to avoid
double costs of insurance. Insurance Policy covering all the work men against
injury, permanent disability, death etc., which shall be effective from the date of start
of contract and cover for the entire period of contract including extended
period/defect liability period, if any.

Insurance policy covering payment of ex-gratia amount of Rupees Five Lakh in case
of fatal accidents to the contract labour engaged by him. As and when a fatal
accident takes place. The contractor is required to pay the ex-gratia amount within
30 days from the date of accident to the legal heir of the deceased. This insurance
policy is to be taken by the contractor and above the provisions specified under
clause “Third Party” and “Workmen’s Compensation” in the given elsewhere in the
tender document.

3.2.29.15 PMJJBY AND PMSBY:

The contractor shall enroll all the workmen to be engaged for the subject work
under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan
Mantri Suraksha Bima Yojana (PMSBY) schemes. The proof for having enrolled
the workmen must be submitted to the EIC within 10 days from receipt of Letter of
Acceptance (LoA). The coverage period under these schemes is from 01st June
to 31st May ever year. If the subject work overlaps the said period, the contractor

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has to ensure coverage of the workmen deployed for such duration/coverage

period.

3.2.30 CONSTITUTION OF THE CONTRACTOR:

3.2.30.1 The Contractor shall not change the composition during the currency of the contract
without the prior approval of the Company. Any happening like Death/ Resignation
of any partner/director/member shall be notified within 24 hours of such happening,
in writing, immediately to CPCL, Manali, Chennai 600 068. On receipt of such
notice, the Company reserves the right either to terminate or continue the contract.

3.2.30.2 In the event of any dispute, legal or other proceedings by any party or parties
concerning the constitution or composition of the Contractor, the Company reserves
the right to take such necessary action as it deems fit, including termination of
contract and withholding payments due or accrued to the Contractor.

3.2.30.3 The contract shall be awarded on the basis of “PRINCIPAL-TO-“PRINCIPAL” and

the Contractor shall be deemed to be an independent Contractor engaged for the
performance of services in the manner and to the extent provided in these presents.

3.2.31 SCOPE OF WORK:

The Scope of work of the contractor covered by this contract shall be as stipulated
under Section 4 – Scope of Works & Scope of Supply, but not limited to the
same as detailed elsewhere in this tender document.

Note: Various preparatory work shall have to be carried out well in advance prior
to commencement of work and all precautionary safety measure for
obtaining the hot / cold work and entry permit on day to day basis need to
be strictly adhered by the Contractor for timely and successful completion
of work.

3.2.32 MOBILIZATION ADVANCE:

No mobilization advance will be paid by CPCL for this contract.

3.2.33 CONSUMABLES, TOOLS & TACKLES:

3.2.33.1 The contractor shall arrange for all consumables like light, torch cells, cheap cloth,
cotton waste, manila rope, detergents etc., which may be required during the course
of work by the contractor at their own cost.

3.2.33.2 Contractor shall provide all required equipment / tools and tackles, etc., required for
the subject work.

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3.2.33.3 The contractor shall furnish their list of tools to be deployed for the work. They shall
arrange for affixing permanent identification marks for all his tools in the presence
of CPCL personnel. These tools shall be subjected to CPCL inspection and
approval.

3.2.33.4 The Contractor shall provide personal protective equipment like use safety shoes,
helmets, safety goggles, safety belts, gloves and fall arrestors for the works, to all
the workmen engaged by them and ensure the usage appropriate PPEs. The
contractor shall arrange for these safety appliances and other safety related items,
which may become necessary for the safe working at their own cost. Penalty will
be levied if any contractor’s workmen found not adhering to safety requirements.
The decision of the Engineer-in charge will be final on this matter.

3.2.34 MATERIAL SUPPLIED FREE OF COST:

Handling of owner’s free of issue material shall be as follows:

3.2.34.1 Materials supplied by owner shall be duly protected by the contractor at his own
cost. Before lifting the material from owners store, contractor shall ensure that
material received are free from any visual damage.

3.2.34.2 The material issued to the contractor, though the property of the owner, will remain
under the custody of the contractor. The contractor will be responsible to preserve
them in good working condition as required by Engineer-in-charge to the
satisfaction of the owner till such time they are erected, tested, handed over to and
taken over by the owner after the job is completed in all respects. For any loss or
damage to materials while in the contractor's custody, recoveries will be made from
the contractor’s bill and the decision of the Engineer-in-charge as to the amount of
recovery shall be final.

3.2.35 MATERIALS AND TRANSPORT:

All materials except mentioned otherwise in the items of the attached bill of
quantities, for successful completion of work shall have to be procured and
supplied by the successful tenderer at his own cost. The materials supplied by the
contractor shall be of approved quality and approval also shall have to be taken
from the Engineer at site before using the materials to the work. Rejected
materials, if any, shall have to be removed by the contractor with his own labour
and transport at his own cost immediately on receipt of the instruction.

3.2.36 CONSTRUCTION WATER AND POWER:

Clause Nos. 6.6 & 6.7 of GCC shall stand partially modified to following extent:

Construction water and construction power shall be provided free of cost by the
CPCL at one point. Contractor shall at his own cost make arrangements for further

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distribution to work site. The distribution network arrangement shall have the prior
approval of Engineer-in-charge. All electrical connections carried out by contractor
shall meet the statutory requirements.

3.2.37 DEDUCTIONS:

All the deductions like income tax, works contract tax and any other applicable
taxes and duties etc. that are required to be made as per prevailing laws and the
conditions of contract will be deducted from the bill before payment. Relevant
certificates will be issued by CPCL Finance Department.

3.2.38 FAILURE OF THE CONTRACTOR:

If the Contractor fails to complete the work and the order is cancelled / terminated,
the amount due to the Contractor on account of work executed, if payable, shall
be paid only after due recoveries including risk and cost and also supervisory
charges as per the provisions of the contract without prejudice to the right, other
alternatives / remedies available as per Law and that too after alternative
arrangements to complete the work has been made.

3.2.39 DEFAULT BY CONTRACTOR:

The successful tenderer may be debarred or shifted to Holiday List at the discretion
of the company, from issue of further tender documents work orders etc., for a
specified period to be decided by CPCL in case of Undue delay in starting and
execution of work awarded, poor performance, backing out from the tender, non-
accepting work order / LOI during the validity of tender or non-observance of safety
rules and regulations, misappropriation of company’s materials/property, non-
payment of due wages to labour or such similar defaults. without prejudice to the
right, other alternatives / remedies available as per Law

3.2.40 ACTION AND COMPENSATION PAYABLE IN CASE OF BAD WORK:

The work during its progress or during the defect liability period can also be
inspected by the Chief Technical Examiner or his authorized representatives of the
Central Vigilance Commission and any defects pointed out by him shall be
attended to by the contractor in the same manner as specified in Clause-77 of
General Conditions of Contract.

3.2.41 LIABILITY FOR BAD WORKMEN SHIP:

In the case, the work executed results in bad workmen ship due to material [or]
workman ship defects which is identified at a later date within the defects liability
period, the contractor has to made good the same within a reasonable period of
time, failing which the amount already paid for the subject work will be recovered

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from the balance payment of the contractor without prejudice to the right, other
alternatives / remedies available as per Law.

3.2.42 ECS PAYMENT:

3.2.42.1 The bidders are advised that all payments related to this subject work would be
made through Electronic Clearance Service (ECS). The bidder would be required
to provide particulars of their bank account along with the bid. The payment will be
made through ECS only.

3.2.42.2 Under this procedure, both CPCL and the bidders are contractually bound by the
correctness of the bank particulars given in the award of contract and is therefore
a more safe and secure method. In the event of change in bank account during the
pendency of the order, it is the responsibility of the bidder to advise CPCL of the
changes under the signature of an authorised person in their letterhead and seek
an amendment to the AOC if required.

3.2.42.3 Failure on the part of the bidder to communicate changes in bank account nos. (for
reasons which may include change in the constitution of a party due to
amalgamations/ mergers/take-over) or delay in receipt of communications or non-
updation of bank account nos. may result in payments being made to an unrelated
account for which CPCL will not be responsible.

3.2.42.4 Particulars of bank A/C

(a) Bank Name

(b) Branch Name & Address
(c) Phone No.
(d) Type of account
(e) Account Number
(f) Nine (9) Digit MICR code Number of the Bank and branch

Declaration letter from the bidder on the company letterhead to participate in ECS
of national clearing cell of Reserve Bank of India and the same to be attested by
the bank Manager.

3.2.43 QUANTITY VARIATIONS:

Quantity variation clause shall be as per relevant clause in General Conditions of

Contract (GCC)

3.2.44 INSPECTION:

3.2.44.1 The work is subject to inspection at all times by the CPCL Engineer-in-charge. The
contractor shall carryout all instructions given during inspection and shall ensure

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that the work is carried out according to the technical specifications of this tender
and with relevant codes of practice.

3.2.44.2 CPCL Engineer-in-charge or any person deputed by him shall test / inspect the
works carried out.

3.2.44.3 After completion of all tests as per specification the whole work will be subject to a
final inspection to ensure that the job has been completed as per requirement. If
any defects noticed in the work are attributable to the Contractor, these shall be
attended by the Contractor at his own cost as and when they are brought to his
notice by the Owner / Engineer-in-Charge. The Owner / Engineer-in-Charge shall
have the right to have these defects rectified at the risk and cost of the Contractor
if he fails to attend to these defects immediately.

3.2.45 FORWARDING OF MATERIALS

All dismantled unserviceable materials are to be disposed off to the earmarked

places within the Refinery premises as directed by Engineer-in-charge at the
contractor’s own cost. The contractor shall have to arrange transport for forwarding
any usable/ saleable materials that may be found during the process of execution
of the work to the CPCLs’ store / scrap yard or any other Site/ Godown including
labourers, transportations, loading, unloading all complete as per the direction of
the Engineer-In-Charge. No separate payment will be made to the contractor on
this account unless specifically mentioned in the B.O.Q.

3.2.46 DELAY COMPENSATION:

3.2.46.1 Delay compensation shall be as per General conditions of contract.

3.2.46.2 CPCL reserves the right to take over jobs in full or part the progress of which are
found to be behind schedule and unsatisfactory, and carry out such jobs through
other agencies. The cost of such jobs taken over and executed shall be recovered
from the original contractor at actual. Including risk, cost, damage that may be
incurred by CPCL

3.2.46.3 No bonus clause is applicable for this contract.

3.2.47 RECOVERIES:

3.2.47.1 Damage cause wilfully or through gross negligence to any of the CPCL issued
materials / equipment / tools by the contractor shall be made good by the contractor
at his own cost, failing which the actual cost working out by the Engineer-in-charge
shall be deducted from the contractor’s running account bill.

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3.2.47.2 While quoting the rate for the services to be rendered by him, the contractor shall
take into consideration all statutory obligations including the liabilities towards
Gratuity / Retrenchment, Compensation, Leave / Holiday wages etc.

3.2.47.3 The rate to be quoted by the contractor for different kinds of work, which should be
inclusive of all charges and no separate payment will be made whatsoever be the
reason.

3.2.47.4 If any of the workers employed by the contractor is found to indulge in act
subversive of discipline, the same will be brought to the knowledge of the contractor
and he shall arrange for replacement of such personnel.

3.2.47.5 It shall be clearly understood that the personnel to be deployed by contractor are
their own workers and they have no binding whatever with company. The contractor
shall indemnify the company from all liabilities arising out of deployment of
personnel and other issues related thereto.

3.2.47.6 In case the premises covered by this contract are not put into use by CPCL, the
same will be intimated to the contractor and due deductions will be made
accordingly.

If the service of the contractor is found to be unsatisfactory during the stipulated

contract period and for any other reasons, CPCL reserves the right to short close
the contract without assigning any reasons whatsoever. However, the contract is
terminable on either side by giving one month’s notice.

3.2.48 REDUCTION OF PAYMENTS:

If a breach of the Contract is committed by the Contractor or if there are

continual absence or non availability of personnel, unsatisfactory timekeeping,
poor progress in planned performances, failure of minimum resource
mobilization / deployment resulting in delayed completion / poor performance
, violation of safety rules or refusal or delay in acting upon any reasonable
instructions, the Engineer-in-Charge, without prejudice to any other rights and
remedies open to him, at his own option, shall reduce the amount payable for
performance of the work of the calculated amount as per requirements of the
Contract, during the period of default.

3.2.49 RIGHT OF DEDUCTION:

CPCL, without prejudice to any other method of recovery and other alternative
legal remedies, reserves the exclusive right to deduct the amount due to it or
reduction of payment as stipulated, hereof, from money in its hands, due or which
may become due to the Contractor under this Contract or any other contract or
from the Performance Bond. Such deduction shall not relieve the contractor from
his obligations to complete the work or from any other of his obligations and

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liabilities, all of which without any notice or legal action and the Contractor shall
have no right to object to the same.

3.2.50 TEMPORARY WORKS:

All temporary works, ancillary works, enabling works, underground clearances

including dewatering of surface and subsoil water, preparing approaches and
working areas, wherever required for execution of the work, shall be the
responsibility of the Contractor, and the price quoted by them shall be deemed to
have included the cost of such works.

3.2.51 EXISTING SERVICES/STRUCTURES:

Structures, drains, pipes, cables, overhead wires and similar services encountered
in the course of the works shall be guarded from injury by the contractor at his own
cost, so that they may continue in full and uninterrupted use to the satisfaction of
the OWNER.

Should any damage be done by the contractor to any structures, mains, pipes,
cables or lines (whether above or below ground etc.), whether or not shown on the
drawings, the contractor must make good, or bear the cost of making good the
same without delay to the satisfaction of the Engineer-in-charge.

3.2.52 CONTRACTOR’S FIELD OFFICE, GODOWN, WORKSHOP AND CAMP

FACILITIES:

Contractor shall, if required by him, for the entire duration of the execution of the
work arrange construction of Contractor’s office, warehouse and workshops
required for the execution of the Contract. The Contractor shall at his own cost
construct all temporary buildings/facilities and provide suitable water supply and
sanitary arrangement as required. Such facilities as constructed by Contractor
shall be maintained by Contractor at his own cost.

3.2.53 STATUTORY REQUIREMENT:

3.2.53.1 The approval from any authority required as per statutory rules and regulations of
Central/State Government shall be the contractor's responsibility unless otherwise
specified in the tender document.

3.2.53.2 The application on behalf of the Owner for submission to relevant authorities along
with copies of required certificates complete in all respects shall be prepared and
submitted by the contractor well ahead of time so that the actual construction /
commissioning of the work is not delayed for want of the approval/inspection by
concerned authorities. The inspection of the works by the authorities shall be
arranged by the Contractor and necessary coordination and liason work in this
respect shall be the responsibility of the Contractor. However statutory fees paid,
if any, for all inspections and approvals for permanent establishment by such
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authorities shall be reimbursed at actuals by the Owner to the Contractor on

production of documentary evidence. The statutory fees paid in the case of
approvals for the Contractors equipments, materials and workmanship shall not be
reimbursed.

3.2.53.3 Any change / addition required to be made to meet the requirements of the statutory
authorities shall be carried out by the Contractor free of charge. The inspection and
acceptance of the work by statutory authorities shall, however, not absolve the
contractor from any of his responsibilities under this contract.

3.2.54 DRAWINGS & DOCUMENTS:

3.2.54.1 The drawings accompanying the tender document are of indicative nature and
issued for tendering purpose only. Purpose of these drawings is to enable the
tenderer to make an offer in line with requirements of the Owner. However, no extra
claim whatsoever shall be entertained for any variation in the “Approved for
Construction” and “Tender Drawings” regarding any changes/units. Construction
shall be as per drawings/specifications issued / approved by the Engineer-in-
Charge during the course of execution of work. Detailed construction drawings on
the basis of which actual execution of work is to proceed will be furnished to the
Contractor progressively based on the detailed construction programme evolved
after the award of work and also based on construction progress achieved.

3.2.54.2 Detailed working drawings on the basis of which actual execution of the works is to
proceed, will be furnished from time to time during the progress of the work. The
contractor shall be deemed to have gone through the drawings and bring to the
notice of the Engineer-in-Charge discrepancies if any, therein before actually
carrying out the work.

3.2.54.3 Copies of all detailed working drawings relating to the works shall be kept at the
Contractor’s office on the site and shall be made available to the Engineer-in-
Charge at any time during execution of the contract. The drawings and other
documents issued by the Owner shall be returned to the Owner on completion of
the works.

3.2.55 Security DEPOSIT:

The bidder should deposit as per terms and conditions of GCC exclusive of taxes,
duties and other levies towards security deposit, by way of either Demand Draft or
Bank Guarantee for satisfactory performance and for completion of all obligations
under the said contract.

3.2.56 VERIFICATION OF CHARACTER & ANTECEDENT (C&A) OF CONTRACT

WORKERS:

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As per the directives of Intelligence Bureau, Ministry of Home Affairs, Government

of India, Character & Antecedent verification of all contract workers must be
carried out before employment. A recent certificate from the Police Head
Quarters of the respective States (based on the residential address of workers)
referring C&A verification be submitted, wherever and whenever required, before
the workers are deployed for work with appropriate validity.

C&A verification has to be done through online portal for the contract workers
domiciled from Tamil Nadu and other States. Contractors shall submit the
Police Verification Certificate for their workers along with copies of Aadhaar
Card, Bank Pass Book, ESI-Pehchan Card, EPF-UAN Number etc., while
applying for labour entry pass. Police verification cerificates will be checked
online to ensure genuinity. The cost of obtaining the above mentioned
documents should be borne by the contractor and CPCL will not reimburse.
3.2.57 REGISTRATION OF VENDORS IN GOVERNMENT E-MARKET PLACE:

It shall be mandatory for the bidders to be registered on GeM portal and obtain a
Unique GeM seller ID at the time of placement of order/acceptance of contract.
This unique GeM seller ID is required to be incorporated in the Purchase
order/contract. In case, bidder has alread obtained this Unique ID, the same is to
be provided along with the bid. Otherwise, in case of award of order/contract,
successful bidder is required to provide the Unique GeM seller ID with in ten days
from the last date of bid submission. As this unique ID is required to be
incorporated in Purchase Order/Contract, any delay in providing this will be on
account of the supplier/contractor.

3.2.58 INCOME TAX ACKNOWLEDGEMENT:

In order to ensure compliance of Sec-206AB/206CCA of Income Tax Act 1961,

Vendor needs to submit the ITR acknowledgements of previous two years and
declaration stating inapplicability of sections 206AB/206CCA while submitting the
tender documents and invoice thereon”. Bidders shall submit the same vide
Format titled “Declaration for the purpose of Section 206AB & 206CCA of Income-
tax Act, 1961” of the tender document.

3.2.59 CERTIFIED SKILLED WORKFORCE TO BE ENGAGED BY THE

CONTRACTOR:

Of the total workforce to be engaged for the subject works, it is mandatory that
minimum 10% or above of the workforce are to be skilled workers as certified by
Ministry of Skill Development and Enterpreneurship. However, the engagement
of skilled workforce is to be made 100% progressively in a phased manner, to
achieve the mission of Government of India on spreading the culture of utilizing
certified skilled workers by the year 2026-2027.

3.2.60 PRE/ TECHNICAL - QUALIFICATION DOCUMENTS VERIFICATION:

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3.2.60.1 Document verification with originals shall be carried out after opening of price bids.
Since documents are submitted by the bidder in the tender, the responsibility of
authenticity of documents shall be with the bidder.

3.2.60.2 Bidder shall be required to present their original documents to the tender inviting
authority within a period of 7 days from the date of intimation by CPCL.

3.2.60.3 In case it is observed that if any bidder submitted forged documents/credentials,

necessary action for holiday listing of the bidder shall be carried out including
forfeiture of EMD.

3.2.61 ARBITRATION:

The arbitration clause shall be as per GCC enclosed along with this tender except
GCC clause no. 12.2 – “Settlement of disputes with other than PSUs and Govt.
Departments”, which is replaced as detailed below:

“Any dispute arising out of or relating to this Agreement, or the breach or validity
thereof, shall be finally settled by arbitration in accordance with the Arbitration and
Conciliation Act, 1996 (the “Act”) by a sole arbitrator to be appointed by the
Managing Director of the Owner in the manner herein below stated. The Party
requiring that the dispute be referred to arbitration shall do so by a written
notification to the other Party with a copy to the Managing Director of the Owner.
Within 30 days of receipt of such notification, the Managing Director of the Owner
shall notify to both parties the name and address of three individuals who are not
connected with the Owner, for appointment as the sole arbitrator. Within 10 days
of receipt of such notification, the Party other than the Owner shall select one out
of the three individuals and communicate such person’s name to the Owner and
the Managing Director of the Owner. On receipt of such communication, the
Managing Director of the Owner shall forthwith appoint the individual so selected
as the sole arbitrator; provided that in the event the Party other than the Owner,
refuses or omits to so communicate within the said 10 days, the Managing Director
of the Owner shall forthwith appoint anyone out of the three individuals as the sole
arbitrator. The arbitration shall be held at Chennai and the arbitration proceedings
shall be conducted, and the award shall be rendered, in English. The award shall
state the reasons upon which it is based. The costs of the arbitration proceedings
shall be borne equally by the two parties. Interest, if awarded by the arbitrators,
shall be at a rate not exceeding the Cash Credit Rate prevailing on the date of the
award. This Agreement, and the rights and obligations of the Parties, shall remain
in full force and effect pending the award in any arbitration proceedings. For the
purposes of this clause, the term „dispute‟ shall include a demand or difference of
any kind whatsoever, arising out of this Agreement and respecting the performance
thereof, whether during the Term of this Agreement including extensions if any, or
after completion, and whether before or after termination, abandonment or breach
of the Agreement.” The fees payable for the Arbitrator shall be as per the Act.

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Others:

Web based Bill Tracking system (BTS):

Bill Tracking System (BTS) is to track the status of invoices raised by the vendors
on-line. Upon despatch of the materials, vendor shall submit their invoices as per
the payment terms and conditions stipulated in the purchase order. Vendor shall
also furnish the details of their invoices in the on-line web based BTS of CPCL,
details of which are furnished below.
The original invoices shall be sent to Engineer-In-Charge (EIC), Chennai
Petroleum Corporation Ltd, Manali, Chennai - 600068 along with the system
generated BTS acknowledgment slip with bar code. The payment term as per
purchase order shall be reckoned from the date of receipt of invoices duly
accompanied by the respective BTS acknowledgement slips. Invoices submitted
by the vendors accompanied by the BTS acknowledgement slips shall only be
processed by CPCL and payment shall be released on time.
Invoices submitted by the vendors without BTS acknowledgement slips will not be
processed and any consequent delay in payment shall be attributable to the
vendor. Hence, vendor is informed to enter the invoice details on the BTS system
and also attach the BTS acknowledgement slips along with the original invoices
without fail.
CPCL BTS Website Address:
https://pms.cpcl.co.in/cpclbts/Account/Login. To access the BTS system,Vendors
shall sign up (One time registration) using their Vendor Code as User ID. Password
cab be created by the Vendors on line. Vendors have to register their Email IDs
and Cell Phone numbers while signing up. BTS shall update the Invoice/Payment
status to the Vendors through their registered Cell numbers/E-mail IDs. HELP
menu is also available in the Bill Tracking System for reference".

Generation of E-Invoice:
A person having aggregate turnover of more than Rs.500 Crs. is mandatorily
required to generate e-invoice for B2B supplies w.e.f. 1st October, 2020. {Rule 48
(4) CGSTR 2017}. Supplier to provide/upload the required information in Form
INV-01 on e-invoice common portal which would generate "invoice reference
number" (IRN) and QR code. Supplier to print such IRN number and QR code on
his tax invoice. Any B2B invoice without IRN & QR code by notified person shall
be treated as invalid. Further, Notification No. 70/2019-CT dated 13.12.2019
provides that a person having turnover of more than Rs. 500 Crs. is required to
provide QR code for B2C invoices. For details please refer to GST Notifications
numbering 68/2019-CT to 72/2019CT dated 13.12.2019.

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The bidders who are covered under the mandatory requirement of e-invoice, is
requested to issue tax invoices in compliance with e-invoice provisions for the
supplies being made to CPCL from the notified date. Effective 01.10.2020, tax
invoice without IRN and QR code is an invalid invoice.

Trade Receivable e-Discounting System (TReDS).

TReDS is an online electronic institutional mechanism for facilitating the financing
of trade receivables of MSEs through multiple financiers. The TReDS Platform will
enable discounting of invoices/bills of exchange of MSEs Sellers / Contractors
against large Corporates including Govt. Departments and PSUs, through an
auction mechanism, to ensure prompt realization of trade receivables at
competitive market rates.

CPCL has registered itself on TReDS Platform with M/s RXIL, Mumbai.

You are requested to kindly on-board/ register on TReDS Platform.

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Chennai Petroleum Corporation Limited Conciliation Rules, 2018

Whereas Chennai Petroleum Corporation Limited (hereinafter referred as CPCL) is

increasingly focused on Conciliation as a Dispute Resolution Mechanism and hereby frames
the present Rules in conformity with Part – III of the Indian Arbitration and Conciliation Act,
1996 for speedier, cost-effective and amicable settlement of disputes through conciliation.

1. TITLE
These Rules shall be called the Chennai Petroleum Corporation Limited Conciliation
Rules, 2018.

2. (i) DEFINITIONS
“Conciliation” means a process, whereby parties by mutual consent appoint Settlement
Advisory Committee (SAC) to assist them in their attempt to reach an amicable settlement
of their dispute arising out of a contractual relationship. The SAC does not have the
authority to impose upon the parties a solution of or to the dispute.

“Contract” means Work Contract (including its Special and General Conditions)
covering jobs relating to Engineering, Procurement, Construction etc. / Material
Procurement agreements of CPCL , if applicable to the relationship out of which the
dispute arise.

“Contractor” means the contractor defined under the relevant contract who is a party to
the conciliation proceedings.

“Approving Authority” means the Director, Managing Director, Projects and Planning
Committee or Board of Directors as per the financial limit provided in Rule 17 of this
Rule.

“Dispute” means Notified claims of the Contractor as defined in the Contract or any
Claim mutually agreed by CPCL and the Contractor to be referred for settlement through
conciliation in terms of these Rules. It shall also include any claim of CPCL arising out of
the Contract.

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“CPCL” means Chennai Petroleum Corporation Limited.

“Rule(s)” means these Conciliation Rules.

“Panel of Conciliators” means the list of eligible persons selected by the Legal
Department of CPCL and approved by the Managing Director of CPCL to act as
Conciliators in Conciliation proceedings under the Rules.

“Party” means CPCL and the Contractor individually and “Parties” mean CPCL and the
Contractor collectively.

“SETTLEMENT ADVISORY COMMITTEE”: The Conciliators, as and when

appointed for a specific Conciliation proceeding, shall constitute and function by the name
and style of “Settlement Advisory Committee” (hereinafter also referred as “SAC”) in
regard to the dispute referred for Conciliation.

“Settlement Agreement” shall mean the agreement arrived between the parties in
settlement of all disputes forming the subject matter of the Conciliation.

“Working Day” means any day between Monday to Friday including both Monday and
Friday, between 10.00 A.M. and 5.00 P.M. (Indian Standard Time), excluding Gazetted
holidays and all other holidays declared by the Government of India or CPCL.

The masculine gender shall include female and neutral genders and vice-versa. The
singular shall include the plural and vice-versa.

3. SCOPE AND APPLICABILITY

a) These Rules shall be apply to the Disputes involving claims of not less than Rs.
10,00,000/- (Rupees Ten Lakhs).
b) These Rules shall be applicable if the works forming the subject matter of the Contract
have been successfully completed and the Contractor/ CPCL has requested in writing
for Conciliation of specific dispute under the Rules. However, in exceptional cases
Dispute(s) under an ongoing Contract may also be referred based on specific approval.
For clarity, Disputes pertaining to Contracts which have been abandoned by the Parties
would not be covered under the said Rules.
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c) Subject to sub-rule (a) & (b) these Rules shall be applicable to Conciliation of Disputes
involving CPCL in domestic or international Contracts.
d) Conciliation under these Rules shall be applicable only to disputes which the parties
have agreed to be referred to for Conciliation in accordance with these Rules and a
party shall not during the period of Conciliation raise a claim, counter claim or defense
as dispute which the parties had not or do not agree to refer to Conciliation.
e) With the consent of the Parties, Conciliation under these Rules may be invoked, even if
Conciliation is not the prescribed Dispute Resolution Mechanism and/ or these Rules
are not the prescribed Conciliation Rules under the relevant Contract/Agreement.
f) Pendency of Arbitral or Judicial proceedings shall not constitute any bar on
commencement of Conciliation proceedings under the Rules, even if the proceedings
under these Rules are on the same dispute as the subject matter of the Arbitral or
Judicial proceedings.
g) The Rules embody a broad standard Conciliation Procedures for a flexible, systematic,
expedient and amicable settlement of disputes and Parties. Any departure or deviation
from the Rules shall not however render a Conciliation Proceeding void or defect or
affect the validity or any Settlement Agreement reached pursuant thereto. However,
such departure or deviation shall be in writing.

4. PANEL OF CONCILIATORS
a) The Legal Department of CPCL shall with the approval of the Managing Director,
CPCL prepare and maintain a Panel of Conciliators consisting of persons having good
standing in the field of Technical or Finance/Commerce or Legal. The note categorizing
eligible persons, in this regard would be put up by Legal Department through Director
(Finance) for approval of the Managing Director. The Managing Director may add any
name to or delete any name from the Panel of Conciliators.
b) Following persons shall be eligible for consideration for empanelment in the Panel of
Conciliators:

i. Retired Civil Servants of Govt. of India not below the rank of Additional
Secretary.
ii. Retired Directors/Chairman of any “Maharatna” / “Navratna Company in India
other than Chennai Petroleum Corporation Limited, Indian Additives Limited
and Indian Oil Corporation Ltd.
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iii. Retired Independent Directors who have served on the Board of any
“Maharatna” / “Navratna”/ Company in India other than Chennai Petroleum
Corporation Limited, Indian Additives Limited and Indian Oil Corporation
Ltd.
iv. Independent Experts in their respective fields preferably registered with the
Indian Council of Arbitration or The Madras High Court Arbitration Centre or
Federation of Indian Chambers of Commerce and Industry or SCOPE Forum
for Conciliation and Arbitration.
v. Serving and Retired Independent External Monitors of Maharatna, Navratna
Companies in India.

Explanation: In the sub-rule (b) in regard to Conciliators from legal field Director
shall be read as Chief General Manager.

c) In preparing the Panel of Conciliators the appointing authority shall have regard to such
considerations as are likely to secure the appointment of independent and impartial
conciliators who are neither Employees nor Consultants nor Professionals or Advisors
of CPCL including its Subsidiaries and Joint Ventures and also Indian Oil Corporation
Limited.
d) A person shall be empanelled as a conciliator only after obtaining his consent to be so
empanelled.
e) The Panel of Conciliators shall contain an Annexure, giving details of the qualifications
of the conciliator and his professional or technical experience and qualifications.
f) When a person is approached in connection with his possible appointment as
Conciliator, he shall disclose any circumstances likely to give rise to justifiable doubts
as to his impartiality or independence. A Conciliator, from the time of his appointment
and throughout the conciliation proceedings, shall without delay disclose any such
circumstances to the Parties unless they have already been informed of such
circumstances. Such person shall not act or continue to act as Conciliator if a party
objects to his so acting or continuing to act. Such circumstances shall include:

i. An interest in or connection with the subject matter of the dispute;

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ii. A relationship with a party or his representative, including a relationship of

lawyer and client

g) An appointment on the Panel of Conciliators under sub-rule (a) shall ordinarily be for a
period of 3 (Three) years from the date of appointment. Such period may be extended
or curtailed at the discretion of the Managing Director, CPCL. The Panel of
Conciliators shall be reviewed on bi-annual basis by the Managing Director, CPCL.
Conciliators exceeding the age of 75 years shall cease to exist on the Panel of
Conciliators and/or to be empanelled/appointed as Conciliators, notwithstanding the
date of said appointment. However, Conciliators already appointed to SAC shall
continue as conciliators up to the conclusion of conciliation by a Settlement Agreement
or otherwise in terms of these Rules, notwithstanding the fact that they have attained
the age of 75 years.
h) A person shall not cease to act as Conciliator in an existing SAC by virtue only of
ceasing to be on the Panel of Conciliators.
i) The following persons shall be disqualified for being empanelled as Conciliators:

i. A person who has been declared insolvent.

ii. A person against whom criminal charges involving moral turpitude are framed
by a criminal court and the same are pending for final disposal.
iii. A person who has been convicted by a criminal court for an offence involving
moral turpitude.
iv. A person against whom disciplinary proceedings initiated by the appropriate
disciplinary authority are pending or have resulted in the imposition of a
punishment.

j) A person appointed as a Conciliator shall give an undertaking in the manner prescribed

in the Schedule A to the Rules.
k) A person in the Panel of Conciliators shall not be entitled to any monetary benefit or
remuneration or fees or other facilities only by virtue of his name being in the Panel of
Conciliators.

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5. APPOINTMENT & NUMBER OF CONCILIATORS

a) Conciliators will be appointed to constitute the SAC from the Panel of Conciliators
maintained by CPCL and endeavour shall be made to appoint local Conciliators in order to
minimize the cost of the Conciliation proceedings. In each conciliation, the number of
Conciliators to be appointed to constitute the SAC shall be determined on the following
basis:

i. One Conciliators shall be appointed in case the amount of the disputed claim is
or less than Rs. 1,00,00,000/-(Rupees One Crore ).
ii. Two Conciliators shall be appointed in case the amount of the disputed claim
is more than Rs. 1,00,00,000/- (Rupees One Crore ) but less than Rs.
10,00,00,000( Rupees Ten Crores).
iii. Three Conciliators shall be appointed in case the amount of the disputed claim
is Rs. 10,00,00,000 (Rupees Ten Crores ) or more.

b) In Conciliation proceedings with One Conciliators, same may be from Technical or

Financial / Commercial field shall be appointed by CPCL from the Panel of Conciliators.
c) In Conciliation proceedings with two Conciliators, one each from Technical and Financial
/ Commercial field shall be appointed by CPCL from the Panel of Conciliators.
d) In Conciliation proceedings with three Conciliators, preferably one each from Technical,
Financial / Commercial field and Legal fields shall be appointed by CPCL from the Panel
of Conciliators.
e) If a Conciliator withdraws himself from the SAC is otherwise unavailable for the
Conciliation proceeding or is removed by the Parties from the SAC on the ground of
continued absence in at least two scheduled meetings/hearings or cannot act further
because of the objection of a party pursuant to Rule 4(f) hereof, the vacancy shall be filled
by the appointment of an alternative Conciliator appointed in the same manner as the
outgoing Conciliator.
f) No person shall be appointed as Conciliator in more than two matters at a time.

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6. COMMENCEMENT OF CONCILIATION PROCEEDINGS

a) A Contractor willing to settle a dispute with CPCL, shall give written notice to the Owner
as defined under the Contract of its proposal to settle all the disputes and requesting for
initiation of Conciliation Proceedings under the Rules preferably after exhausting the
normal official avenues of communication for resolving the dispute proposed to be
referred to conciliation. Such notice can be accepted or rejected by the CPCL with the
approval of Functional Director. Any written notice partly to settle the dispute through
Conciliation and partly through Arbitration shall not be entertained.
b) If CPCL is willing to settle such dispute by Conciliation, with any Contractor, Owner
shall, with the prior approval of the Functional Director, give written notice of such
willingness to the Contractor for initiation of Conciliation Proceedings under these Rules.
c) CPCL may, if it so deems fit, accept the request for Conciliation conditional upon the
disputed claims of CPCL being also settled through Conciliation in accordance with these
Rules, or may accept the proposal for settlement by Conciliation of only some of the
disputed claims referred to in the proposal for Conciliation and not in respect of the rest of
the disputed claims specified in the proposal. Such conditional or limited acceptance shall
constitute a counter proposal by CPCL for the settlement of the disputed claims mentioned
therein by Conciliation in accordance with these Rules, and shall be subject to acceptance
by the Contractor.
d) A proposal or counter proposal by a Party expressing its desire to initiate Conciliation
proceedings shall, inter alia, contain the following details:

i. Identity of the Party – Name, Official Address, Contact & E-Mail Address, Telephone
Number(s), Official Representative etc.
ii. Details of dispute sought to be settled through Conciliation with details of the
amount(s) claimed and consequently the party serving the notice of shall not raise any
fresh issue thereafter.
iii. Specific consent for Conciliation under these Rules.

iv. An undertaking that:

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• No interest shall be claimed before any court, arbitration or other forum including the
SAC for the period commencing from the request for conciliation upto the conclusion of
the conciliation by a Settlement Agreement or otherwise in terms of these Rules;

• Not to claim at any time in any proceedings before any Court or arbitrator(s) or before
the SAC any other than that or those specified in the notice, waiving without reservation
or condition the right to raise or pursue any such claim(s) if the request/invitation for
Conciliation is accepted.

• During the pendency of the conciliation proceedings, not to initiate any arbitral or
judicial proceedings in respect of the dispute which is the subject matter of the request to
conciliation, and if any such proceedings have been initiated to maintain status quo in
respect thereof as long as conciliation proceedings are pending.

e) The Party receiving a written proposal for Conciliation under Sub-rule (a) & (b) hereof
above shall, within 30 (Thirty) days of receipt of such written proposal for Conciliation,
intimate the other its acceptance or rejection of the proposal. However, if CPCL desires to
give any counter proposal as mentioned in sub-rule (c) it may do so in writing within the
said 30 (Thirty) days period and if the CPCL gives such counter-proposal, the Contractor
shall, within 15 (Fifteen) days of receipt of such counter proposal, intimate to the CPCL its
acceptance or rejection of the counter proposal. Within 15 (Fifteen) days of acceptance of
the Contractor’ proposal or receipt of acceptance of proposal or counter proposal from the
Contractor, the CPCL shall formally appoint Conciliators under intimation to the
Contractors.
f) If no reply to a proposal or counter proposal for conciliation under sub-rule (a) or (b) or (c)
hereof above is received from the other Party within the stipulated time as mentioned in
Sub- Rule (e) the proposal/counter-proposal for Conciliation may be treated as having
been rejected.
g) Conciliation proceedings under these Rules shall be deemed to commence on the day of
receipt of the proposal/counter-proposal for conciliation by the Party, in the event that the
proposal/counter-proposal is accepted.
h) If the Parties fail to agree on appointment of Conciliators and constitution of SAC within
the stipulated time as mentioned in sub-rule (e) the efforts at dispute settlement through
Conciliation shall be treated as ‘failed’ and the dispute can be referred for Arbitration as
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per agreement between the parties or parties shall be free to recommence the arbitration or
Judicial proceedings, if any pending.

7. PROCEDURE TO BE FOLLOWED BY THE SAC

a) The SAC shall, within 6 (six) working days of its constitution, request the Parties to file a
brief Written Statement for the disputed claims, describing the general nature of the
dispute and the amount claimed. Each Party shall also file along with its Written
Statement, the salient documents which it considers vital to the disputed claim and its
opening proposal for the settlement of the disputes.
b) The SAC may, if it so considers necessary, permit or request the Parties or any of them to
submit further Written Statements of the concerned Party’s position explaining the facts
and grounds in support thereof, supplemented by any further document necessary to
support its position.
c) All statements, documents and proposals presented by a Party to the SAC, shall be
submitted in such number of copies as the members constituting the SAC. Simultaneously,
a copy of the presentation shall be given to the other Party.
d) The first meeting of the Parties shall be called by the SAC, after consulting the Parties
within 10 working days of receipt of documents mentioned in the sub-rule (a) or sub-rule
(b), as the case may be. It is anticipated that before this meeting the SAC would have met
to consider the prima facie merits and de-merits of the respective positions of the Parties
on the disputed claims.
e) At the first meeting, the Parties shall state their respective positions and will identify the
points of divergence which would have to be addressed by them to achieve a settlement of
the dispute. During the first meeting, the Parties and the SAC shall work out a tentative
time-frame and broad work-Schedule for the further conduct of the Conciliation
proceedings.
f) It is envisaged that at subsequent conciliation meetings it shall be the endeavour of the
SAC to narrow the divergence between the proposals of the Parties and to bridge the gap
between the perceptions of the Parties. To this end, the SAC may request the Parties to
submit fresh and/or revised proposals for the settlement of the dispute, and may guide the
parties to the possible direction and content of the proposal to be submitted by each party
to achieve a settlement of the dispute.

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g) To this end, and with a view to assist the Parties, the SAC shall prepare and distribute to
the Parties within 7 (seven) days of the conclusion of each conciliation hearing a minutes
summarizing the proceedings and setting out the further steps suggested and/or discussed
with a view to achieving a settlement of the disputed claims.
h) Advocates shall not be permitted to participate in the Conciliation Proceedings and Parties
shall be expected to present their respective positions themselves. Parties shall, however,
be free to appoint their duly authorized in-house Legal Officials to present their case.
i) Opportunity shall be given to the Parties during conciliation proceedings to openly and
fearlessly express their views so as to enable the Parties to better understand and
appreciate each other’s view points.
j) The official language of Conciliation proceedings under these Rules shall be English.

8. ROLE OF THE SAC

a) The SAC shall act as honest interlocutor and facilitators of a settlement by the Parties of
their disputes. To this end the SAC shall encourage the Parties to meet and discuss
amongst themselves to possible solutions.
b) The SAC may express its views on the merits of the dispute and/or of the defense thereto
by a party, provided that the SAC shall on no count be entitled to impose it’s will on the
Parties or on a party or determines or decides any matter or dispute between the Parties.
c) The SAC may suggest to the Parties or any of them for their consideration the possible
terms of a proposal for a settlement.
d) The SAC shall be guided by the principles of objectivity, fairness and justice and shall
assist the Parties in an independent, impartial and dignified manner to reach an amicable
settlement of the dispute.
e) The SAC may meet or communicate with Parties together or with each of them separately.

9. CO-OPERATION OF PARTIES
a) The Parties shall in good faith co-operate with the SAC and, in particular, shall endeavor
to comply with any request of the SAC to submit written materials, provide evidence, give
clarification, attend meetings/hearings etc.
b) Conciliation being an amicable Dispute Settlement Mechanism, the Parties shall not take
adversarial roles, but instead make every reasonable effort to accommodate the other
Party’s viewpoint, without, however, diluting the correct legal position.

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c) The Parties shall make every reasonable effort to render optimum co-operation for a
speedy, efficient and yet mutually acceptable & amicable resolution of the disputes.
d) The Parties shall not in any manner make any attempt to unduly influence the Conciliation
process or the SAC or the Conciliator(s) by way of inducement in any form or manner and
shall conduct themselves with full dignity, honesty and integrity.

10. VENUE FOR CONCILIATION PROCEEDINGS

Conciliation Proceedings may ordinarily be held at the corporate office of CPCL situated
at Teynampet in Chennai or any other place where refinery/Factory of CPCL is situated.

11. TIME FRAME

a) The total number of meetings of the SAC in a Conciliation proceeding shall be not more
than 6 (Six) unless in exceptional cases the Parties and the SAC agree for further
meetings.
b) The SAC shall attempt to complete the entire Conciliation process on its part (except for
finalization of Settlement Agreement) within a time-frame of 6 ( Six) months from the
date of appointment of the SAC, which period may be extended by the SAC in
consultation and with the consent of the Parties, upto a further period of 2 (two) months
and not further, and the Conciliation shall be deemed to have failed if a draft Settlement
Agreement cannot be prepared within the said period / extended period. This shall not,
however, prevent the Parties from independently agreeing to a draft Settlement
Agreement and/or in finalizing and/or entering into a Settlement Agreement covering the
disputes.
c) CPCL shall give its final consent/dissent on the draft Settlement Agreement within 3
(three) months from the date of draft Settlement Agreement. CPCL may request an
extension of time for a further period of upto 1 (one) month for reasons to be stated in
writing to convey the approval.
d) Notwithstanding the provisions of Sub-rule (b) hereof above, the SAC may earlier
terminate the Conciliation process or proceedings if it is of the view that because of the
vastly divergent, extreme and/or rigid views of the Parties or for any other substantial
reason it is no longer possible or practicable to meaningfully conduct conciliation
proceedings.

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12. REMUNERATION & COST

a) Each conciliator constituting the SAC shall be entitled to a reading fee of Rs.15,000/-
(Rupees fifteen thousand ).
b) Each conciliator would be entitled to facilitation fee of Rs. 15,000/- (Rupees fifteen
thousand) if they prepare and finalize the draft Settlement Agreement.
c) In addition to the above, each Conciliator shall be paid a fee of Rs. 15,000/- (Rupees
fifteen thousand) for each hearing/meeting.
d) The fee under Sub-rule (a), (b) and (c) hereof above shall on no account exceed a
maximum of Rs. 2,00,000/- (Rupees Two Lakh ) per case per Conciliator excluding
applicable taxes.
e) The concerned Legal department of CPCL shall act as the Coordinator for the SAC
through whom Parties may communicate with the SAC and the SAC may communicate
with the Parties and through whom the parties may do all filing and present all
statements, documents and submissions to be presented to the SAC. For this purpose by
appointing the Conciliator to be appointed by the CPCL will intimate the name of the
person who will act as the Coordinator of the SAC.
f) The SAC will make its own arrangements for secretarial services. For Secretarial
Services, a lump sum amount of Rs.5,000/- (Rupees Five Thousand) shall be jointly
paid by the Parties to the SAC for the whole Conciliation proceedings.
g) Apart from fees and payment for Secretarial Services fees, the Conciliator(s) will also
be entitled to payment or re-imbursement of the expenses incurred for attending the
conciliation proceedings including Railway/Air fare, accommodation, and local travel.
The accommodation to Conciliators shall be provided by CPCL.
h) Conciliators’ Fees, payment for Secretarial Services and expenses incurred by the SAC
relating to a Conciliation proceeding and the Settlement Agreement, shall be equally
borne by the Parties, to which end once the SAC is appointed the Contractors shall
deposit with the Coordinator, who will be responsible for the payments/disbursements,
Rs. 2.00 Lakhs (Rupees two Lakhs) in case of 1(one) Conciliator, Rs. 4.00 Lakhs
(Rupees Four Lakhs) in case of 2(two) Conciliators and Rs. 6.0 Lakhs (Rupees Six
Lakhs) in case of 3(three) Conciliators, on or prior to first meeting with SAC towards
the fee and cost of Conciliators and Conciliation proceedings. Any disbursement made
from this deposit shall be matched by an equal contribution by CPCL. In the event that

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the amount of the deposit is insufficient to defray the Contractor’s share of the deposit,
the Contractor shall make such further deposit as may be specified by the Coordinator.
i) Final accounts towards Fees, payment for Secretarial Services and expenses of the
Conciliation shall be reconciled and settled between the parties on the termination of
the conciliation proceedings.

13. NON DISCLOSURE OF INFORMATION BY THE SAC

When a Party to a Conciliation proceeding provides any information concerning any issue
of dispute to the SAC, subject to a specific condition that such an information is to be
treated confidential, the SAC shall not disclose that information to the other Party.

14. SETTLEMENT AGREEMENT

a) After discussing with and hearing the Parties involved, if the SAC is of the view that it
is possible for the parties to settle the disputed claims the SAC shall formulate and
prepare the draft terms of settlement and submit the same to the Parties for their
consideration and comments.
b) If any part of the draft terms of settlement is not acceptable to any of the Party, further
meetings/hearings shall be held for possible resolution till mutually acceptable terms of
Settlement are arrived.
c) Once the parties agree on the settlement of the dispute, the SAC shall cause a draft
Settlement Agreement to be prepared and initialled by the parties and by members of
the SAC. Such draft Settlement Agreement shall be binding on the Contractor but shall
be subject to the approval of Approving Authority of CPCL which shall convey such
approval within 3 (three) months of the draft Settlement Agreement being initialed in
the manner aforesaid. Should CPCL fail to convey the approval to the draft Settlement
Agreement within the said 3 (three) months period or extension thereof sought by
CPCL, the approval shall be deemed to have been declined. It is the intent of the
Corporation that the disputes are resolved in line with the Settlement Agreements
arrived, as much as possible, unless there are reasonable grounds not to approve the
Settlement Agreement in which case such grounds shall be duly recorded by the
Corporation.
d) The final Settlement Agreement shall be signed by the parties and authenticated by the
SAC within 15 (fifteen) days of the approval being communicated by the CPCL.

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e) The Settlement Agreement shall contain a statement to the effect that each of the
persons signing thereto (i) is fully authorized by the respective Party he/she represents,
(ii) has fully understood the contents of the same, (iii) is signing on the same out of
complete free will and consent, without any pressure, undue influence, and (iv) the
same shall be final and binding on and enforceable against the Party and the persons
claiming under/through him.
f) The Settlement Agreement shall be signed by the parties and authenticated by the SAC.
The SAC shall make as many original copies of the Settlement Agreement as there are
parties and every Party shall be given an original copy of the Agreement.

15. CONFIDENTIALITY AND ADMISSIBILITY IN EVIDENCE IN OTHER

PROCEEDINGS

a) The Conciliators and the Parties and their representatives shall keep confidential all
information furnished, documents filed, evidence or opinions produced and proposals
and submissions whatsoever exchanged during the course of Conciliation proceedings
and the contents of any Terms of Settlement, draft Settlement Agreement except where
its disclosure is necessary for purposes of implementation and enforcement of the
Settlement Agreement.
b) A Conciliator, a Party or the representative of a Party unless required by applicable law
or unless all the Parties agree otherwise in writing, shall not give testimony in any
judicial, arbitration or similar proceedings concerning any aspect of the conciliation
proceedings.
c) A Party to the Conciliation proceedings, the Conciliator and any third person,
representing a Party in any conciliation proceedings shall not in arbitral, judicial or
similar proceedings rely on, introduce as evidence or give testimony or evidence
regarding any of the following:

i. An invitation by a Party or counter proposal by a Party to engage in

conciliation proceedings or the fact that a Party was willing to participate in
conciliation proceedings;
ii. Views expressed or suggestions or proposals made by a party in the
Conciliation in respect of a possible settlement of a dispute or the terms of
a possible settlement;
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iii. Statements or admissions made by a party in the course of the Conciliation

proceedings;
iv. Proposals or suggestions made or views expressed by a Conciliator;
v. The fact that a Party had indicated its willingness to accept a proposal for
settlement made by a Conciliator or by a Party;
vi. A document prepared solely for purposes of the Conciliation proceedings.

d) Sub-rule (a) to (c) herein above applies irrespective of the form of the information or
evidence referred to therein.
e) The provisions of sub-rule (a) to (d) herein above will apply whether or not the arbitral,
judicial or similar proceedings relate to the dispute(s) that is, was or were the subject
matter of the conciliation proceedings.
f) Subject to the limitations of sub-rule (a) to (e) herein above, evidence that is otherwise
admissible in arbitral or judicial or similar proceedings does not become inadmissible
as a consequence of having been used in conciliation.
g) Any Invitation or proposal or counter proposal for Conciliation by a Party of any
dispute in terms of these Rules and any acceptance by a party of any invitation or
proposal or counter-proposal to any dispute for settlement by conciliation in terms of
this Rule and the acceptance of an appointment to act as a Conciliator shall be deemed
to carry with it the unconditional undertaking of the Party or the Conciliator, as the case
may be, to be bound by and to abide by the provisions of these Rules.

16. PERSONAL EXEMPTION OF CONCILIATORS

a) A Conciliator shall neither be held liable for anything done or omitted to be done by him
during the course of conciliation proceedings in civil or criminal action nor shall he be
summoned by any Party as witness in any arbitration or Judicial proceedings in regard to
any information received or action taken by him or in respect of or during the course of
conciliation proceedings.
b) No Conciliator shall be engaged by the parties in any arbitral or judicial proceedings in
respect of a dispute which is the subject matter of the conciliation proceedings.

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17. APPROVING AUTHORITY OF CPCL

a) Once the Parties come to a consensus and the draft Settlement Agreement is prepared
by the SAC, the draft Settlement Agreement shall be placed by the Functional Head for
the approval of Approving Authority. The Agenda for the draft Settlement Agreement
required to be approved by the Managing Director shall be moved by the Functional
Director with the concurrence of Director (Finance). Further, the draft Settlement
Agreement required to be approved by Planning and Projects Committee / Board of
Directors shall be moved by the Concerned Director through Managing Director with
the concurrence of Director (Finance).
b) The primary Role of Approving Authority shall be ensuring that disputes are resolved
through Conciliation, as much as possible.
c) In line with the existing Delegation of Authority, Draft Settlement Agreement
containing the financial implication shall be approved as under: -

Authority Financial implication

Managing Director Upto Rs. 10 Lakhs
Planning and Projects Committee Above Rs. 10 Lakhs and upto Rs.50 Lakhs
Board of Directors Above Rs. 50 Lakhs

* The above limits shall be revised upon revision of Delegation of Authority.

d) All the settlement claim proposals placed before the Board shall be first considered by
the Planning and Project Committee and only after its recommendations, the Board
shall consider for its approval. The decision of the Approving Authority shall be final
regarding the terms of Settlement Agreement in so far as CPCL is concerned.

18. TERMINATION OF CONCILIATION PROCEEDINGS

a) The conciliation proceedings are terminated on the occurrence of any one of the
following:

i. On the date of the signing of the Settlement Agreement by the Parties.

ii. On the date of written declaration by the SAC, after consulting with the Parties that no
further efforts at Conciliation are justified.

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iii. On the date of written declaration by the Parties, addressed to the SAC to the effect
that the conciliation proceedings are terminated.
iv. On the date of written declaration of a Party to the other Party and the SAC, if
appointed, to the effect that the conciliation proceedings are terminated.
v. On the expiration of any time set for the completion of conciliation proceedings, or
any extension thereof by the Parties.
vi. On the non-payment of deposit by a Party as required to be made under these Rules.
vii. On the failure of a Party to appoint a Conciliator to constitute the SAC in accordance
with these Rules.

19. MISCELLANEOUS

These Rules shall be subordinate to and supplementary to Part-III of the Indian Arbitration
and Conciliation Act, 1996 and the later would prevail over the former to the extent of any
inconsistency.

20. FURTHER AMENDMENT

Managing Director is authorised to bring amendment/modification in the Conciliation
Rules as and when necessary under intimation to the Board of Directors.

******

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SCHEDULE - A: DECLARATION OF ACCEPTANCE AND INDEPENDENCE BY

MEMBERS OF SETTLEMENT ADVISORY COMMITTEE

REF: Conciliation Between __________and arising out of Contract No.__________ dated

___________

I, the undersigned, do hereby agree to serve as a member of the Settlement Advisory

Committee in the instant case and hereby make the following declarations:

i. I am familiar with requirements of law, particularly the Arbitration and Conciliation

Act of 1996 and Chennai Petroleum Corporation Ltd. Conciliation Rules, 2018.
ii. I am available to serve as a Member of the Settlement Advisory Committee and I am
independent of any of the Parties involved in the instant Conciliation proceeding and
have no interest – financial or otherwise - in any part of the Contract under reference or
subject matter of the Conciliation proceeding.
iii. I have not dealt earlier with the Contract under reference or the subject matter of the
conciliation proceeding in any manner or capacity, which could compromise my ability,
independence or impartially.
iv. In future I will not act as an arbitrator or as a representative or Counsel of any party in
any arbitral or judicial proceedings in respect of a dispute which is the subject matter of
the conciliation proceedings.
v. The fees and other facilities for conciliation offered to and accepted by me, will remain
fixed and under no circumstances will there be any demand from me for any alteration
or change therein.

(Signature)

Name:

Address:

Date:

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PENALTY TOWARDS NON-COMPLIANCE TO SAFETY

Date of Observation:
Contractor Name :
Name of the Person/No of the Person/ No of Occasion/ No of Unsafe Condition
Observed:

Description of Safety Violation:

Penalty Amount as per Contractor safety Guidelines 15.1 (Details attached back
side):

------------------------/- (Amount in Words: )

I accept that the above mentioned safety violation persist and assure that it will
not be repeated. I also agree to deduct the above said amount from the
forthcoming running bill as per Safety guideline

Signature and Name of the Contractor Representative:

Signature and Name of the CPCL EIC

____________________________________________________________________________________________________________________
 60

Sl EVENT PENALTY AMOUNT

no
1 Absence of Resident Engineer of Contractor in CPCL‟s safety meeting Rs.5000 per Meeting
2 Non deployment of Safety Engineer / Supervisor Rs.1000/- per Person per day
3 Failure to submit monthly safety reports Rs.1000/- month
4 Failure to have regular site safety Inspection (by contractors themselves) every
Rs. 1000/- Week
week
5 Failure to conduct Health / Safety / Environment (HSE) meetings and HSE
Rs. 1000/- Month
Audit by Contractor at site (in-house) and maintain records
6 Failure to report & follow up of accident, fire, explosion and property damage Rs.1000/- per occasion
incident (including Near Miss Incidents)
7 Poor House Keeping Rs.1000/- per occasion
8 For non use of Personal Protective Equipment (Helmet, goggles, gloves, Safety Rs. 250/- per day / item /
belts, Safety shoes, Full body harness, face shield, etc.) person
9 Working without Work Permits / Clearance Rs.5000/- per occasion
10 Non-use of safe electricity at work sites (Not installing / bypassing ELCB, poor
jointing of cables, non-use of plugtops / insertion of naked wire ends into
Rs.1000/- per item per day
socket holes, laying cables/wires across roads/drains,etc., absence of
competent electrician)
11 Working at height / depth without permit and/or failure to
arrange fall-protection arrangement such as scaffolding /barricading, Safety
Nets, etc. Working at height without full body harness Working at height using Rs.1000/-case/day
nonstandard / rejected scaffolding and not arranging fall protection
arrangement as required like
12 Unsafe handling of compressed gas cylinders (No trolley, jubilee clips double
Rs.100/- per item per day
gauge regulator, improper storage / handling)
13 Use of domestic LPG for cutting purpose Rs.1000/- per occasion
14 No fencing/barricading of excavated areas Rs.1000/- per occasion
15 Non providing shoring / strutting / proper slope and not keeping the excavated
Rs.1000/- per occasion
earth at least 1.5M away from excavated area
16 Inadequate First Aid Box Rs.500/- per occasion
17 Traffic rules violations like over speeding of vehicles, rash
driving, wrong parking, not using seat belts, vehicles not fitted with reverse Rs.1000/- per occasion
warning alarms
18 Degradation of environment (not confining toxic spills, spilling oil / lubricants
Rs.1000/- per occasion
onto ground)
19 Not medically examining the workers before allowing them to work at height,
not providing ear muffs while allowing them to work in noise polluted areas,
Rs.1000/- per occasion
made them to work in air polluted areas without respiratory protective
devices, etc.
20 Use of Grinder without wheel guard Rs.500 per occasion
21 Rs.1000/- per item per
occasion. On third repeated
occurrence, contractor shall
Non-use of CCOE approved spark arrestors; Fire extinguishers in vehicles
be prohibited from taking
vehicles into the Refinery
beyond the Main Gate
22 Non-use of flash back arrestors in oxy-acetylene cylinders Rs.1000/- per occasion
23 Blocking of roads without permission (OR) Not providing barricade & caution
Rs.5000/-per occasion
boards
24 Movement of crane with suspended loads; people travelling in cranes &
Rs.5000/- per occasion
forklifts.
25 To be decided by Engineer-
Any violation not covered above
incharge

____________________________________________________________________________________________________________________
 61

Page 1

Chennai Petroleum Corporation Limited

(A group company of Indian Oil)
Manali, Chennai – 600 068

CONTRACTORS SAFETY GUIDELINES

Note:CPCL’s Safety Guidelines shall be read in the context of

the units / facilities / establishments available / proposed
in the Cauvery Basin Refinery at Nagapattinam, Tamilnadu. The
safety guidelines are applicable to the extent of Scope of
Services / Works specified in the tender.
Thus, the terms, “CISF” & “Manali / Chennai” occurring in these
Safety Guidelines shall be read as “CPCL Security” &
“Nagapattinam” respectively.
The Safety Assembly points specified under Clause No.12.5 of these
Safety Guidelines shall be replaced with the following:
• In front of OM&S Control Room
• In front of Fire & Safety Office.

Revision: November-2018

Signature of Bidder
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INDEX

CLAUSE PARTICULARS

1. INTRODUCTION

2. GENERAL

3. GATE ENTRY / EXIT PROCEDURE

4. PERSONAL PROTECTIVE EQUIPMENT

5. SAFETY TRAINING

6. JOB SAFETY ANALYSIS

7. CONTRACTOR‟S SAFETY OFFICERS

8. WORK PERMIT & CLEARANCE

9. SAFETY OF LIFTING EQUIPMENTS

10. HOUSEKEEPING

11. EMERGENCY PROCEDURES

12. EMERGENCY RESPONSE PLAN

13. ACCIDENT / NEAR MISS REPORTING

14. SAFETY REPORT

15. PENALTIES FOR NON COMPLIANCEOF SAFETY

16. RADIOGRAPHY

17. STATUTORY / OISD / BIS GUIDELINES

18. ANNEXURES

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1. INTRODUCTION:

The guidelines listed herein comprise contractor’s obligations towards safety and its
compliance to work. Contractor working within the refinery premises shall adhere to
these guidelines and shall also follow any additional precautions that may be prescribed
from time to time by CPCL to prevent any injury to contract workmen and any loss or
damage to the property. CPCL reserves its right to modify or replace the contents of this
manual, orally or in writing, without prior notice. Contractor shall keep their personnel
and subcontractors informed about the potential health and safety hazards to which they
are exposed to and shall ensure that their personnel and their subcontractors are
supplied with all necessary personal protective equipment and aware of the applicable
emergency response and mitigation plans.

2. GENERAL:

Security Awareness

Contract personnel shall be alert to any suspicious situations or persons and report them
to their supervisor or CISF personnel available nearby. The contractor shall keep their
tools, equipment, or materials securely with lock for all toolboxes, buildings, and
compounds. All such preservations shall bear the signage of the respective contractor for
easy identification. Briefcases, purses, wallets, keys, or other valuables should not be
left unattended or unsecured.

Loss of Property
Thefts or suspected thefts of CPCL or contractor’s material should be reported to the
CISF. Any loss of property of the contractor from the parking lots outside CPCL Gate
should be reported to the local Police.

Traffic Accidents in the Plants

All traffic accidents shall be immediately reported to CISF and to the Engineer-in-Charge
with details of driving license, vehicle registration, insurance, etc. Driver of the vehicle
involved in an accident shall stop the vehicle at the scene of the accident, for further
action by the concerned authorities.

Traffic Rules
Fire fighting is important activity in a refinery. Hence, road users should give Right of
Way to the fire trucks, ambulances and rescue vehicles at all times. Contractors are
advised not to proceed beyond any red flashing warning light that indicates an
emergency in an area unless the contractor has the specific duties or responsibilities
related to the emergency. Contractors shall not park the vehicles near Fire hydrants,
manifolds, MCPs, etc. blocking them. All drivers should possess and practice exemplary
driving courtesy and defensive driving techniques. The speed limit for all vehicles should
not exceed beyond 25 KMPH. Persons operating motor vehicles within CPCL premises
shall possess relevant valid Driving License and Registration and Insurance for the
vehicles. They shall comply with traffic signs, parking rules and other regulations listed
from time to time. Vehicles movement into refinery processing areas and tank farms
shall be permitted only with a valid permit/clearance.
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Prohibited Items /Acts

Items such as cellular phones, Radio, Transistor, Tape recorder, SLR / Video Camera,
cigarettes, Matchbox, Crackers, alcohol, Arms & Ammunition, Flammable materials are
prohibited inside the CPCL.

a) Cameras: Contractor while seeking entry into CPCL should declare the camera in
their possession to CISF, who in turn shall keep the camera under safe custody and
return the same on exit. Contractors who need to take photographs within CPCL
must obtain prior approval from Functional Director of CPCL through their respective
Engineer-in-Charge.

b) Cell Phones: Contractor shall deposit their cellular phones at the plant main Gate to
CISF and the cell phone could be collected on exiting the refinery.

c) Movement: Loitering within CPCL and near the gates of CPCL by Contractor
personnel without any specific business and without their photo passes is prohibited.

d) Smoking: Smoking is strictly prohibited within the premises of CPCL.

e) Gambling: Gambling in all forms is prohibited within the premises of CPCL.

3. GATE ENTRY / EXIT PROCEDURE

Entry of personnel and materials into the Refinery is restricted on account of the safety and
security of the installation. Contractor shall comply with the prevailing guidelines and regulations
for entry of their men and material to the refinery. All the contract workmen and their supervisory
staff shall obtain passes for themselves duly authorized by the appropriate authorities of CPCL and
must display their passes at the gates and at the sites whenever demanded by CPCL officials or
CISF. Recording of attendance and compliance of statutory provisions for contractors and
contract labours is done through an agency under the control of CLM cell. Gate pass systems in
CPCL are as follows:

Permanent Photo Gate Pass

Permanent Photo Gate Passes will be issued to contractor’s workmen for a period requested in
the pass request form for a period of maximum six months subject to fulfilling the following
terms and conditions:
a. Work order validity shall be there for the pass request period
b. Valid Safety Pass
c. Valid Labour license
Proof of residence and 2 copies of photographs are to be provided.
Permanent pass will be issued to people between 18 and 60 years of age only. Pass will be
issued to people above 60 years and upto 65 years with appropriate medical certificate.
Above pass can be extended further on recommendation of the EIC (Engineer-in- charge). The
pass shall be duly certified & issued by CLM cell. Application format for permanent photo gate
pass is available with CPCL-CLM Cell.

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Temporary Gate Pass

In order to attend emergency works in the refinery, Temporary Gate passes will be issued to
contractor’s workmen at the Labour entry gate. Respective EIC has to create the pass online
through CPCL intranet. This is valid for a maximum period of 3 days. In case the work is
extended for more than 3 days, the Contractor has to apply for Regular Pass. Application
format for temporary gate pass is available online CPCL intranet.
In addition, ONE DAY temporary passes are issued to drivers/cleaners/ load men coming with
vehicles. ID proof is required for obtaining one day pass and for drivers valid driver license is
also to be produced.

Vehicle Pass for Contractors

Entry of contractor’s vehicles in to CPCL is restricted. For execution of work, contractor shall
apply for Vehicle Pass through respective Engineer in charge and the same will be approved
by the competent authority of CPCL and the Pass will be issued by CPCL CISF.

Special permission for working on holidays/Sundays/Nights.

Special permission is required for working on holidays/Sunday/nights. The contractor shall

submit a request letter to CISF through the EIC.

Entry and Exit of Contractor’s Material

Entry / Exit of contractor’s materials will be allowed through CPCL Gate as per CPCL
procedures. All entries of contractor’s materials into CPCL shall be endorsed on the delivery
challan or authorized document by CISF. The endorsed challan shall be preserved for
reconciliation. The material shall be subjected to CPCL inspection / checking before it is
taken to site or put to beneficial use. Contractor while taking the materials out of CPCL shall
ensure possession of CPCL Gate Pass indicating the materials to be taken out with respective
inward challans endorsed by CISF.

4 PERSONAL PROTECTIVE EQUIPMENT

All Contractor’s officials and workmen entering CPCL must wear BIS certified steel - toed
safety shoes and helmets complying with the relevant BIS standard. Other personnel
protective Equipment such as Chemical Splash & Impact Resistant Face shields and
Goggles, Safety Glasses with Molded Side Shields, Eye and Face Protectors, Appropriate
Gloves and Hearing Protection shall be used by the contractor’s workmen while carrying out
specialized work. All the PPEs shall be BIS compliant.
Contract workers involved in hot jobs shall wear IFR (Inherently Fire retardant) suit which shall
be of minimum 150 GSM fabric approved to the requirements of BS EN ISO 11612:2015 OR ISO
11612 2015 (E).

5 SAFETY TRAINING
Contractor’s supervisory staff and workmen shall undergo Induction safety briefing given by CPCL
Fire & Safety department, before issue of Safety pass. They shall be required to undergo safety
training / demonstrations periodically through CPCL Fire & Safety department. Further,
Contractor shall release their staff and workmen for training and specific subjects given by
CPCL from time to time.

Contractor’s supervisory staff and workmen shall be in possession of valid safety training badge
while working in CPCL premises.
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It shall be the responsibility of the contractor to provide detailed Induction training to

new staff and workmen and provide periodic training to them.
The contractor‟ JOB SUPERVISORS shall deliver safety talks/tool box talk (5-minute) to
their workmen on a daily basis prior to commencement of the day’s work covering the
jobs planned during the day and with specific reference to the Job Safety Analysis
document for the jobs. The Owner will monitor the same and any violation in this regard
will be viewed seriously.
Sub-contracting of work shall be dealt as per the relevant clause of the tender
document. However, for all purposes contractor’s employed workmen and the sub-
contractor’s employed workmen at site will be considered as “Contractor’s Workmen” on
whom the contract is awarded by CPCL and any shirking of liability by the contractor
citing the reason as sub-contractor will not be acceptable. The contractor shall take all
practical efforts to ensure safety of their own workmen and their sub-contractor’s
workmen at site at any point of time.

6 JOB SAFETY ANALYSIS (JSA):

Before starting of the work, contractor has to prepare “Job Safety Analysis” for all the
activities involved in the contract and submit the same to the Engineer in charge for their
review and acceptance. The preventive measures stipulated in the JSA have to be strictly
complied by the contractor to ensure safety at work site. A sample JSA format is
enclosed as Annexure - 1.

7 CONTRACTOR’S SAFETY OFFICERS

Deployment

Contractor shall deploy the following minimum safety personnel atsite:

Labour Strength Minimum No. of Safety Staff

Less than 20 One Engr./Supervisor with safety experience on Part Time
basis
20 – 100 One safety supervisor on Full time basis
101 – 250 For „manpower supply oriented contract – One safety
Supervisor on full time basis- Full time
For „works contract” - One safety Engineer on full time basis +
One safety supervisor full time basis
One safety Engineer full time basis + One safety supervisor on
251 – 500 full time basis for every 250 employees deployed atsite
More than 500 One safety Engineer on full time basis + One Environment
Engineer on full time basis + One safety Supervisor on full
time basis for every 250 employees deployed atsite

The number of safety personnel has to be augmented by the Contractor, considering the
hazardous nature of work, as per the instructions of the Engineer in charge, without
claiming any compensation from CPCL.

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Safety personnel deployed at site should possess certificate/Diploma/Degree in safety from a

recognized institute. However, exclusive supervisors with other qualifications viz. Diploma,
Graduate, etc. can also be deployed, with the permission of the engineer in charge, if
they possess sufficient knowledge on safety or if they have previous experience as Safety
personnel at work site.

In case of non deployment of safety personnel as above, penalty shall be imposed as

mentioned in the Penalty clause ofthese guidelines.

Responsibilities

To assess the hazards associated with jobs in consultation with all concerned andestablish
safe working procedure including identification of the escape routes.

To establish a written record of factors this can cause injuries & illnesses.

To undertake routine/ surprise inspections of all work sites and identify unsafe
conditions & practices, if any. Check for compliance of the safety practices beingfollowed
with approved HSE Plan.

To investigate promptly the incidents (including near-miss) in order to advise corrective

and/or preventive action.

To maintain statistical information for use in analyzing all phases of incidents and events
involving contract personnel.

To provide the means for complying with the reporting requirements for occupational
injuries and illnesses.

To check whether the proposed working arrangements are safe and satisfactory,
particularly at the interface between the contractors‟ planned work and CPCL‟s existing
facilities.

To communicate to the Contractor the imposed restrictions which may affect the work/
personnel such as the temporary closure of a corridor or electrical isolationof equipment?

To review and monitor the contractor's adherence to approved HSE plan and all
applicable environmental, health, and safety requirements.

To ensure that Consultant, Contractor‟s Managers, Supervisors and workmen at all levels
(who will plan, monitor, oversee and carry out the work) undergo Health, Safety and
Environmental training in their respective responsibilities with respect to conducting work
safely and with due regard for the protection of the environment.

To identify areas of operations where specialized training is required to deal with

potential dangers.

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To document and to bring to the attention of plant Supervisor and Contractor any non-
compliance/violation of the safety norms against approved safety and health planner
safety and health requirements and also raises these issues in the Safety Committee
Meetings.

To take part in Tool Box Meetings at random & to ensure maintenance of records.

To attend weekly meeting with Refinery Safety Officer with their weekly safety
performance and submit action plan / status of recorded points of last meeting and
discuss the safety, health and environment issues at work site of contractor.

To get assessed the health of equipment /appliances of contractor before they begin the
job. The thorough assessment shall be done for all such equipment appliances before
first use and at regular interval to ensure that their health is okay and statutory
requirements are complied. The example is as below:

- Healthiness of all lifting machine (cranes, derrick, forklifts, etc.), tools and tackles
and their test certificate.

- Healthiness of gas cylinders and their test certificate. No cylinder shall be allowed to
enter without a test certificate.

- Adequacy and healthiness of Scaffolding materials.

- Health of portable machines/ tools such as grinding machine and hand tools

- Health of welding machine, other machines and IC engine, standard and

health of Electric equipments, cables, protective devices

- Standard and health of battery operated equipment with their certificate

- Health assessment checks certificate of all contractor vehicles and fitness certificate
of RTO for vehicles, if entry allowed.

- Safety items such as materials for barricading & shoring, gas testing equipment,
instruction boards, flash back arrester, fire proof cloth, ELCBs, including PPE
(Adequacy, quality and certification)

Contractor’s job supervisor shall deliver toolbox talks daily and safety talks on a
weekly basis respectively to the workmen to familiarize the work site hazards,
hazardous materials being used at site, safe work procedures to be followed at site, etc.

Investigate thoroughly, document and submit reports in case of injury, accident

or near misses involving any of the workmen in the work site. Necessary follow up
actions to be taken with the workmen to avoid recurrence of such acts in future.

Adequate job specific safety procedures have to be developed to suit the site
condition and the same should be followed meticulously, wherever potential safety risks
are identified.

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Safety meetings have to be conducted to create commitment amongst all the

stakeholders of the site work.

Increase safety awareness by providing signboards, posters, etc.

Perform at least one safety audit per month and submit the audit report to CPCL
for review. Carry out Continuous motivation to the workmen for safe working practices,
attitudes, etc.

Device methods, viz., incentive for longer safety man-hours for a team among
workmen for improving the motivation among the workers.

To ensure the safety compliance as per CPCL Safety/ERDMP Manual.

To ensure that no hazardous material/chemical is stored in the site.

The following precautions shall be taken during execution of welding & cutting
works at site:

- Certified welder alone should carry out the welding work.

- Welding machine with proper routing with ELCB and double body
earthing should be ensured.
- Proper lugs and return lead with crocodile lamp.
- Both end flashback arrester (Cylinder & Torch) should be made available
before the start of welding work.
- Cylinder trolley for gas cutting sets
- Fire blanket, Fire hose and Fire extinguishers
- Proper house keeping

8 WORK PERMIT & CLEARANCE SYSTEM

General

Contractor shall obtain the necessary entry permits for all his labour before commencing
the job and abide by the instructions in this regard. Presently, CPCL has the following
Permit System:

Hot Work Permit

Cold work Permit
Height work & Scaffolding Permit
Electrical Isolation / Energization Permit
Excavation Clearance
Road Block Clearance
Radiography permit

CPCL may introduce new permit system, which shall be followed by the contractor as and
when introduced.

Before commencement of any work, contractor shall intimate at least a day in advance
to Engineer-in-Charge, who in turn will arrange for work permits. The
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contractor shall take all the precautions given in the permit before starting of the
work to the satisfaction of the Engineer-in-Charge. On account of operational
problem it is possible that the clearance and permit may get delayed for which the
contractor shall not be paid any compensation whatsoever. Fire equipment such
as fire extinguishers, fire hoses, control type nozzles, personal protective
equipment, Blow man air apparatus, etc. required for safety precautions are to be
arranged by contractor himself. However, in case of emergency upon
authorization from Engineer-in-Charge such of those items cited above, can be
issued to the contractor from the Refinery‟s Fire Station on chargeable basis and
shall be returned after completion of the work/works in working condition, to the
satisfaction of the Fire & Safety Officer. In case of any damage to the fire & safety
equipments issued or used by the contractor, the contractor shall bear the cost of
such damage in full as decided by the Engineer-in-charge and the same must be
recovered from the contractor‟s bills.

All safety measures stipulated in the respective Work Permits shall be strictly complied
at all times while carrying out the work within the premises of the Owner.

Owner reserves the right to cancel a work permit without assigning reasons. When called
upon to stop the work by the Engineer-in-Charge, the Contractor shall immediately
cease to continue the work. Before re-commencement, work permit must be obtained
afresh.

The Engineer-in-Charge reserves the right to terminate the contract or forfeit amounts
due to the contractor in case the contractor does not strictly adhere to the precautions
written on the permit.

Hot Work Permit (For Hot works, Radiography & Vessel Entry)

Hot work permit issued by the concerned department or area-in-charge covers for
the work to be carried out in that specific area within the refinery premises only. In
addition, clearance must be obtained from the concerned officer or supervisor prior to
commencement of any job. A hot permit is required for:

a) Any work involving open flames, spark such as welding, gas cutting, soldering,
grinding, concrete breaking, use of hurricane lamps and internal combustion driving
vehicles / Radiography / Crane lifting / Vessel entry.

b) Sand blasting, Trucks, Jeeps, Cranes, Lifts, Cars or any kind of vehicle driven by an
internal combustion engine or by batteries. Use of gasoline, diesel or electrical power
engines or tools.

c) Entry of vehicles inside battery limits of process area within tank dykes and adjacent
to pump houses and loading gantries, etc.

Open fire such as burning of wood, coal, etc. is strictly prohibited inside the
battery area. Flammable / combustible materials should either be removed from the
work place or should be properly protected.

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Hot work permit must be obtained on every shift basis in a day, for works inside
columns, Vessels, tanks or any enclosed area where chemicals, hydrocarbons or
hazardous materials is either used or stored. Contractor shall ensure stand by persons,
provision of exhaust fan and use of breathing apparatus, etc. for vessel entry.

While carrying out the hot job, the contractor and his workmen must ensure the
following minimum safety measures without which, the work shall not be executed:
- Valid hot Work permit,
- Availability of tested and proper fire extinguisher at the work places
- Provision of running firewater hose at work place.

Cold Work Permit

Any work with in CPCL premises which are not covered under Hot work Permit are
classified as Cold works and Cold work permit on daily basis shall be obtained from
the issuing authority which can be extended further for the next consecutive days.

Height Work & Scaffolding Permit

The contractor’s workmen have to take adequate protection while working atheight.

Contractor’s workmen desire to work at a height more than 1.8 meters shall get
them examined and certified at CPCL OHS Center for their Medical Fitness. In case, if it
is not possible for medical examination at CPCL OHS Center, Medical officers in CPCL
OHS Center may prescribe the medicals tests to be done by the workmen by a
Registered Medical practitioner who is possessing allopathic qualification recognized by
the Indian Medical Council. Contractor shall produce the test report and the certificate
issued by the registered medical practitioner to CPCL OHS for verification. After
verification, CPCL OHS will retain the test report and issue Medical Fitness certificate for
the workmen, which will be valid for One-year period from the date of issue. Format for
Medical Fitness Certificate is enclosed as Annexure - 2. Every contract workmen shall
keep this certificate with them during work at site.

Safety devices used by the workmen while working at height are called as Fall
Protection device. Wherever fall protection devices are used, 'TIE-OFF' must be used.
Fall protection devices shall comply with relevant BIS standards and shall be used in the
following situations:

- When working at unprotected elevations (including ladders) 6' (ft) or more above
grade level.
- When working from elevated personnel platforms, such as a man lift, man basket,
aerial lift, etc.
- When erecting or dismantling scaffolding as directed by the Scaffolding Supervisor.

Snap-hooks used in fall protection devices should not be hooked to another (or
hooked together). More than one snap hook should not be attached to D or O-ring.
Locking type of snap hooks should be used.

Tying point or anchoring point of the fall protection device should be located above
the wearer’s attachment. Minimum slack shall be maintained in between the wearer of
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the device and the anchoring point, so that even during a fall, the wearer is not hit by
any obstruction in the lower level. The structure to which the fall protective device is
anchored shall be strong enough to sustain the load of the wearer, in case of a fall.
Weak structures should be avoided for tying or anchoring. Structures preferred for
anchoring are Structural beams / angles, 4” dia. Pipes for one person and more than 6”
dia. for more than one person, Fixed ladder rails and clips, etc. Structures should not be
used for anchoring are Temporary platform or scaffold handrails, Ladders made out of
scaffolding, Conduit pipes / electrical cable tray, Parts of valve / equipments /
instruments, Cages / rungs of ladders, etc.

In case of use of lifelines, 2 or more persons shall not be permitted at a time.

Such lifeline should possess sufficient tensile strength and shall be properly secured at
the anchorage points with proper connecting & locking devices.

While working at height, at more than 2 Meter from floor level, following safety
precautions has to be followed:
i) Contractor has to obtain Height work permit issued by competent authority
ii) Proper type of scaffolding/platform/ladder should be made to facilitate the job at
height. Minimum 2 nos. of ladders should be provided at opposite sides.
iii) Use of bamboo scaffolding is strictly prohibited inside CPCL. Only steel scaffolding
shall be used for work inside the Refinery. The steel scaffolding material and its
erection shall be done as per relevant IS specification.
iv) Contractor shall ensure the use of safety belts by the person who is working at
heights. Safety belt to be used should be of good quality (IS marked), double
Lanyard type with snap hook and shall be hooked up with firm support.
v) Full body safety belt, horizontal & vertical fall arrestors are to be used. Safety nets
also to be used as per site conditions
vii) Before starting the job, scaffolding shall be inspected by competent person and a
record of the same shall be kept at site.

Suitable scaffolding should be provided for workmen for all works that cannot
safely be done from the ground or from solid construction except such short period work
as can be done safely from ladders. When a ladder is used, an extra Mazdoor shall be
engaged for holding the ladder and if the ladder is used for carrying materials as well,
suitable footholds and handholds shall be given in inclination not steeper than 1 in 4 (1
horizontal and 4 vertical).

Scaffolding or staging more than 12 meters above the ground or floor, swing or
suspended from an overhead support or erected with stationery support shall have a
guard rail properly attached, bolted, braced and otherwise guarded at least 1 meter
above the floor or platform of such scaffolding or staging and extending along the entire
length of the outside and ends thereof with only such openings as may be necessary for
the delivery of materials. Such scaffolding or staging shall be so fastened as to prevent
from swaying from the building or structure.

Working platform, gangways and stairways should be so constructed that they

should not sag unduly or unequally and if the height of the platform or the gangway or
the stairway is more than 12 meters above ground level or floor level, they should be
closely guarded, should have adequate width and should be suitably fastened.

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Any opening in the floor of a building or in working platform shall be provided

with suitable means to prevent the fall of persons or materials by providing suitable
grills, fencing or railing having a minimum height of 1 meter.

Safe means of access shall be provided to all working platforms and other
working places. Every ladder shall be securely fixed. No portable single ladder shall be
over 900 cm in length, while the width between the side rails in rung ladder shall in no
case be less than 30 cms for ladder up to and including 300 cm in length. For longer
ladders, this width should be increased by at least 6 mm for each additional foot of
length. Uniform step spacing shall not exceed 30 cm. Adequate precautions shall be
taken to prevent danger from electrical equipment. No materials on any of the sites of
work shall be so stacked or placed as to cause danger or inconvenience to any person or
public. Contractor shall also provide all necessary fencing and lights to protect the
workers and staff from accidents.

Scaffolding wherever erected inside CPCL, shall be done after obtaining approval
in the prescribed format enclosed in Annexure - 3. The tags to be used for scaffolding
certification shall be as given in Annexure - 4. A register shall be maintained for the
scaffolding erected by the contractor. Format for the register shall be as detailed in
Annexure - 5.

General Guidelines for erection and use of scaffolding:

i) Wooden Planks bent / damaged scaffold tubes and repaired / defective aluminum
ladders shall not be used.
ii) During erection of scaffoldings, full body harness with double hook lanyard shall
be used.
iii) Erection of scaffoldings should be avoided during heavy raining & high wind.
iv) General requirements to be verified during inspection of scaffold before clearing
for use / periodical inspection after erection is given in the Checklist below.
v) Scaffoldings shall be inspected & certified at frequency not exceeding 7 days or
whenever some modification / alteration carried out or whenever scaffold is
exposed to adverse weather condition.
vi) Scaffoldings under modification/alteration shall be provided with RED tag.
vii) Contract workmen certified fit under the supervision of competent supervisor of
the contractor shall dismantle the scaffolding after job completion.
viii) The following Checklist shall be considered for scaffolding inspection:
ix) Has the surrounding area near the scaffold been cordoned off?
x) Are base plates provided to scaffold?
xi) Is longitudinal / transverse (cross) bracing provided to ensure the stability?
xii) Is base lift provided not more than 6 inch height?
xiii) Guard railing should be in between 95 cm & 120 cm but space between toe board
& guard shall not exceed 2‟-6‟‟ (76 cm)
xiv) Are toe boards with minimum 4 inches height provided?
xv) Is working platform covered by planks with no gap & free of cracks or damage?
xvi) Are all braces, bearer, and clamps well secured?
xvii) Is ladder is well secured & provided at a safe place to get up and down the
scaffold?
xviii) Is ladder provided above the landing platform?
xix) Is the front of the scaffold within 14 inches of the work place?
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xx) Is there any projection of Scaffold pipes, which obstructs pathway?

xxi) Ladder shall rise to a height of at least 3‟–6‟‟ above the landing place.
xxii) Overlapping of planks at working platform should be avoided.
xxiii) Upper lift should not more than 2 meter (6‟-6‟‟) height.

Electrical Isolation / Energization Permit

The Contractor shall deploy a competent Engineer / Electrician to attend to

electrical matters. All temporary power supply boards shall conform to IE Regulations.

Contractor or his nominated subcontractor should have valid electrical contractor’s

license for working in State. Contractor shall furnish a copy of the same to Engineer-in-
Charge before commencement of any work pertaining to Electrical System. In any case,
no work shall be permitted to be executed at site without a valid Electrical Contractors
License, and the decision of the Engineer-in-charge in this regard shall be final and
binding. Any claim / or compensation towards the same will not be made on this
account.

Motors, Gearing, Transmission, Electric wiring and other dangerous parts of

hoisting appliances should be provided with efficient safeguards.

The contractor should ensure that the portable electrical equipment like grinding
machine, drilling machine etc. is in healthy condition. The contractor should take all
precautionary safety action, as providing of earth leakage circuit breakers( 30mA rating)
for their portable electric machines, also double insulated portable equipment may be
used.

All portable electrical apparatus shall be regularly examined, tested and

maintained to ensure the apparatus and leads are in good order. Temporary jointing of
extension wire, power cables etc. is not allowed.

Ensure that all portable appliances are provided with 3 pin plug and socket
connections and that the metal body of the apparatus is effectively earthed. All loose
wiring such as flexible cables for portable lamps, tools & trailing cables and other
portable and transportable apparatus shall be tested regularly at frequent intervals to
ensure safety. All temporary board shall have ELCB of 30 ma sensitivity for personnel
safety and double earthed / double insulated hand tools.
When workers are employed on electrical installations, which are already
energized, insulating mats, wearing apparel, such as tested rubber gloves, sleeves and
boots as may be necessary, shall be provided. The workers should not wear any metallic
rings, watches, keys or other materials, which are conductors of electricity.

While working on electrical system, the contractor and his workmen shall ensure
that the following safety measures are in place:-

- Proper & valid Electrical line clearance is obtained for the

equipment;

- The cables are properly insulated and are without any temporary joint;

Signature of Bidder
With seal
 75

Page 15

- All Flammable / combustible materials should either be removed from the

work place or should be properly protected;

- Suitable Earth leakage Circuit Breaker (ELCB) is provided for incoming and all
outgoing feeders;

- Proper earthing is provided to distribution board and other electrical

equipments like welding machines & grinding machines etc.

- Pipe sleeves are provided for road crossings of temporary cables laid by the
contractor for his work;

- The power connection should not be overloaded and suitable overload

protection should be provided;

- The tools used by the contractor personnel should be properly insulated and
in good condition;

- The grinding machine & other power tools should have proper guard.

Do not attempt to work on electrical apparatus unless authorized by an electrical

department, and without obtaining clearance or permit from the area-in-charge. Use
only approved electrical fitting gadgets or equipment. Obtain clearance from electrical
personnel and produce the clearance to area-in-charge prior to obtaining permit to start
the work. Electrical personnel will check the norms and should sign the register/permit.
Keep the register/permit at the site. Time to time the equipment is to be checked by
contractor’s authorized electrical supervision and necessary entry shall be made in the
register. If any norms are found violated, the work of those equipment to be stopped till
the equipment is either rectified or replaced, the norms are as below:

i) Contractor should use approved quality earth leakage circuit breakers (ELCB) on
their portable distribution board for all type of electrical equipment used including
welding sets etc. Checking with the polarity meter by contractor.
ii) Also use ELCB on their main distribution board for each feeder. Contractor should
ensure the healthiness of their Electrical Portable Apparatus by competent
electrical supervisors. Contractor shall provide proper earthing for their
distribution board.
iii) Contractor should engage licensed electrical supervisors for certifying their
equipment and ensuring safety of their connection.

The work area shall always be kept accessible for switching off power supply in
case of emergency. Before leaving the work place, the Contractor shall ensure power
supply is switched off properly. For this purpose a record shall be maintained of the last
person leaving the concerned work site on all days of activity.

No dry battery or accumulator type of electric hand lamp or torch, which is not of
the flameproof safety type, shall be taken inside the Refinery.

Signature of Bidder
With seal
 76

Page 16

Excavation Clearance

All trenches 1.2 meters or more in depth shall at all times be supplied with at least
one ladder for each span of 30 meters length.

Ladder shall be extended from bottom of the trench to at least 100 cm. above the
surface of the ground. The site of the trenches which are 152 cm. or more in depth shall
be stepped back to give suitable slope or securely held by timber bracing, so as to avoid
the danger of sides to collapse. The excavated material shall not be placed within 152
cm. of the edge of the trench or half of the trench depth whichever is more. Cutting shall
be done from top to bottom. Under no circumstances undermining or under cutting be
done.

All the areas where the existing grading is disturbed in the course of work by the
contractor shall be made good by him to the full satisfaction of the Engineer-in-Charge.

Excavation is executed only after obtaining a valid Excavation Clearance and Hot
Work permit. For deeper excavation, precautions viz. barricading, sloping trenches
instead of vertical cutting, adequate shoring / strutting, etc. shall be ensured. Wherever
required sufficient illumination, escape ladders, etc. should be provided. Minimum
number of workmen should be permitted to work inside the excavated trenches. Heavy
machineries viz. Crane, etc. should not be permitted near the excavated trenches.

Road Block Clearance

Wherever required, Road Block Clearance has to be obtained as detailed in Annexure 6.

9 SAFETY OF LIFTING EQUIPMENTS

All lifting machines (cranes, forklifts, elevators, hydra cranes, etc.), lifting tools and
tackles (includes slings, chain pulley blocks, wire rope, chains, shackles hooks, etc.)
brought inside refinery by contractor shall have identification marks, Safe Working Load
(SWL) displayed on equipment and certified by the competent authority as per
Tamilnadu Factories Rules. All lifting equipment shall be exposed to “Pre-use check”
before use every time. Pre-use check must include checking of all critical controls such as
brake, limit switches, interlock, warning devices, etc. Contractor shall maintain record of
pre-use check conducted at site.

All lifting machines, lifting tools and tackles shall be removed from service before expiry of
testing date. Visual inspection of such equipment shall also be carried out regularly to look
for deformation/physical damage and the defective equipment shall be removed after
such observations.

The methodology of erection shall be got approved by the Owner prior to carrying out
equipment erection/lift by lifting machines. Contractor shall provide all required data of
the lifting machines for this purpose. All crane operators and riggers deployed for the
purpose of erection shall be well trained and certified for the specific purpose. The area
below crane boom shall be barricaded when the equipment lift is being made and it shall
be ensured that no person shall come under suspended load at any given time. When
cranes are used in night, there shall be adequate illumination and the crane operator
and rigger shall wear fluorescent and light reflective jackets.

Signature of Bidder
With seal
 77

Page 17

The following should be ensured for material handling equipments:

- Third party approved certificate for Sling, Chain sling, Shackles & webbing slings
- Insurance
- Third Party License
- Reverse light, front light & warning light during night & reverser horn.
- Driving License for heavy vehicle driving for the driver.
- Limit switches
- Angle Indicator
- Safe workload marking
- Safety Hook Latch
- Load Chart
- Signal man

No cranes shall be left unattended with hanging load. On completion of work, the boom/
jib of the crane may be brought down and kept in horizontal condition. No crane
including hydra crane shall be allowed to move on road with suspended load.

10 HOUSEKEEPING

Housekeeping is a very important aspect towards maintaining a healthy & safe work
environment inside any Industry. Most of the safety related issued can be addressed if
proper housekeeping is done and maintained. . The Contractor therefore must ensure for
removal of scrap, inflammable material, waste and debris at appropriate interval
including proper storage of materials and equipment. The debris, scrap and other
unwanted materials generated out of the activities carried out by the Contractors must
be removed from site and shifted to the designated location or as instructed by
Engineer-in-Charge. The Contractor may ensure the following.

Ensure proper storage of both Owners‟ / Contractor’s materials & equipment at site used
for carrying out the maintenance or construction job.

Remove the loose materials, which are not required for use. Accumulation of these at
the site can obstruct means of access to workplaces and passageways. Scrap generated
out of the maintenance job should also be removed.

Workplaces and passageways, that are slippery due to spillage of oil, grease or other
causes, should be cleaned up or strewn with sand, sawdust, ash, chalk powder etc.

The workplace should be kept clean on continuous basis. Even for continuous nature of
work, the work place must be cleaned, non-compliance of which shall be treated as
violation of safety norms.

Before offering a completed job for final inspection/acceptance Contractor must ensure
that all maintenance waste, scrap and other disposable items are removed from the
workplace. Failing the same will call for rejection of inspection call and the contractor
shall be penalized for the wastage of inspection time through necessary recovery from
their bill.

Signature of Bidder
With seal
 78

Page 18

All disposable material and scrap shall be dumped in the specified location only and
penal recovery shall be made if found dumped in other than designated locations. It may
be noted that in all contracts engaged by the Owner, housekeeping is a part of the scopeof
work and as such deduction made in case of non-compliance is deemed to be accepted
by the Contractor.

The following procedures shall be complied while stacking materials at the worksite:

- Barricading of materials arriving at site

- Proper access for materials stacked
- Proper identification of materials stacked
Precautions to be visibly displayed for chemical materials viz. Paint, thinner,
solvents, etc.
- Proper storage of cylinders with bifurcation for empty and filled cylinders.

11 EMERGENCY PROCEDURES

In case of Emergencies such as fires, explosion, leakages or accidents noted by

contractors‟ personnel, such events should be immediately informed to the nearby CPCL
employees and Fire Station. They may use any of the modes of communication available
nearby viz. Intercom telephone to Fire Control room - 3630 / 3663 or 101 or Breaking
MCP (Manual call point) or PA system or nearby control room to intimate Fire Station
about the incident / accident. For ambulance call 2222.
In case of fire, until assistance arrives at the scene of fire, contractor’s workmen should
use Fire water or portable Fire Fighting media available nearby. The following Siren Code is
practiced in CPCL to communicate in emergency:

Minor fire : No siren

Major Fire : Wailing siren for 2 minutes. Sirens will be sounded six
times for fifteen seconds with an interval of six seconds in
between
Disaster : Same type of siren as in case of Major Fire butsiren will be sounded
three times at the interval of one minute.

All clear : Sounding of Fire sirens continuously for two minutes.

If the Contractor’s employees notice any oil leak or fire, they should immediately report
such matters to the Owner’s representatives and the Fire Station by using any one of
the communication mode mentioned above and stop all the jobs.

On hearing the alarm/ siren the work in progress should be stopped immediately, shut -
off the machinery, such as welding machines and take advice from owner’s
representatives.

Those using firewater for any purpose must immediately stop using the same and must
shut off the hydrant valve from which water being drawn.
Only when the all-clear siren is blown, work should be resumed. Fresh permits should be
taken before commencing work in such cases.

Signature of Bidder
With seal
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Page 19

Assist owner personnel in mitigating emergency situation as per advice.

Any contractor-driving vehicle at the site of fire should park his vehicle at a suitable
location away from the site of fire and firefighting equipment deployed by the Owner.

12 EMERGENCY RESPONSE PLAN

Contractor’s working within the refinery premises is deemed to have studied the
emergency response plan of the Owner. An emergency response plan can be seen at the
Owner’s Fire & Safety Department. Contractor has to adhere and respond to the on- site
emergency plan and coordinate with the site main controller of Refinery in such a
circumstance.

Contractor personnel shall stop their work and proceed to a safe area in the event an
emergency arises in the area where they are working such as fire, oil spillage, power
failure, etc. Before re-commencement of the job they should obtain clearance of Owner‟s
supervisor of area involved.

In view of the hazards associated with Hydrocarbon processing; on site emergency plan
has been prepared in the event of major accident occurring on site. The plan envisages
handling emergency situation, which shall be communicated through siren, based on
nature of emergency as mentioned below.

In case of major emergency, it is the responsibility of the contractor to head count his
personnel and takes them out with the help of concerned Refinery coordinator to safer
location. Contractor must confirm the safe evacuation of his personnel to Refinery
coordinator. In case of missing personnel, it must be brought into the notice of Refinery
authorities immediately in writing.

In case of emergency/major accident or disaster, site-in-charge shall coordinate with Site

Main Controller for sheltering & evacuation and advise his workmen to rush to one of the
following Assembly points:

Refinery-I Control Room

Refinery-II Control Room
Lube Expansion Block/ DHDS Control Room
Power & Utilities – I Control Room
Workshop / Garage
Main Fire Station
Mounded bullet SS
Office Indcoserve
Office Southgate
Power & Utilities-II Control Room
Power & Utilities -III Control Room
Refinery-III Control Room
Refinery-III Fire Station
Mandatory Tank Farm Main gate
Mandatory tank Farm South gate
Mandatory Tank Farm Fire station
Tertiary Treatment Plant Main Gate
Signature of Bidder
With seal
 80

Page 20

13 ACCIDENT / NEAR MISS INCIDENTS REPORTING

Accidents happen within the CPCL premises or in other work sites of CPCL, should be
reported to the Engineer in Charge in the format available with the Engineer in charge /
Fire & Safety department.

Contractor’s safety supervisors and workmen shall report the Near Miss Incidents to the
Engineer in charge, who in turn will forward it to Fire & Safety department. At least one
Near Miss incident should be reported in each working day during the contract period.

CPCL may constitute a “Contractor’s Safety Steering Committee” who will interact with
CPCL Fire & safety regularly, share best practices amongst themselves, carryout cross
audit of work spots and report areas of improvement.

14 SAFETY REPORT
Contractor shall submit a monthly safety report as per the format enclosed marked as
Annexure - 7.

15 PENALTIES FOR NON-COMPLIANCE OF SAFETY

The contractor has to take full precautions to implement all provisions of Safety
requirements of CPCL. In case of non-compliance of procedure, the owner shall impose
the following penalties on the contractor and such penalties imposed will be deducted
from their running/final bill. EIC or any other authorized personnel of CPCL are
authorized for imposition of penalties.

Above violations resulting in any reportable physical injury as per Factories Act, a
penalty of 0.50% of contract value (Maximum of Rs. 2,00,000/- (Rs. Two lakh only) per
injury shall be levied. In addition to the above, penalty for safety violation as given
below shall be levied by CPCL.

Above violations resulting in a Fatal Accident, a penalty of 1.0% of contract value

(Maximum of Rs. 10,00,000/- (Rs. Ten lakh only)) per fatality shall be levied. In additionto
the above major and minor non-compliances, the following penalties shall be levied for the
events listed:

SN Event Penalty
1 Rs.5000 per Meeting
Absence of Resident Engineer of Contractor in
CPCL‟s safety meeting
2 Non deployment of Safety Engineer / Rs.2000/- per
Supervisor Person per day
3 Failure to submit monthly safety reports Rs.1000/- month
4 Failure to conduct Health / Safety/ Environment
Rs. 1000/- Week
(HSE) meetings and HSE Audit by Contractor at site
(in-house) and maintain records
5 Failure to conduct Health / Safety Rs. 2000/- Month
/ Environment (HSE) meetings and HSE Audit by
Signature of Bidder
With seal
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Page 21

Contractor at site (in-house) and maintain records

6 Failure to report & follow up of accident, fire, Rs.5000/- per
explosion and property damage incident (including occasion
Near Miss Incidents)
7 Poor House Keeping Rs.1000/- per
occasion
8 For non use of Personal Protective Equipment Rs. 500/- per day /
(Helmet, goggles, gloves, Safety belts, Safety item / person
shoes, Full body harness, face shield, etc.,)
9 Working without Work Permits / Clearance Rs.5000/- per
occasion
10 Non use of safe electricity at work sites( Not Rs.2000/- per item
installing, bypassing ELCB, poor joining of cables, per day
non use of plug tops/ insertion of naked wire ends
into socket holes, laying cables/wires across roads/
drains etc, absence of competent electricians)
11 Working at height/ depth without permit and/or Rs 2000/- per case
failure to arrange fall protection arrangement such per day.
as scaffolding/barricading, safety nets etc.
Working at height without full body harness,
working at height using non standard/rejected
scaffolding not arranging fall protection
arrangements as required.
12 Unsafe handling of compressed gas cylinder( No Rs.500/- per item
trolley, jubilee clips, double gauge regulator, per day
improper storage/handling)
13 Use of domestic LPG for cutting purpose Rs.1000/- per
occasion
14 No fencing/barricading of excavated area. Rs.1000/- per
occasion
15 Not providing shoring, shuttering, proper slope and Rs.1000/- per
not keeping the excavated earth at least 1.5 meter occasion
away from the excavated area.
16 Inadequate first aid box. Rs.500/- per
occasion
17 Traffic rules violations like over speeding, rash Rs.1000/- per
driving, wrong parking, not using seat belt, vehicles occasion
not filled with reverse parking alarms, without
proper certificates, without driving license, without
fire extinguisher, using phone while driving etc
18 Degradation of environment ( Not confining toxic Rs.1000/- per
spills, spilling oil/ lubricants onto ground) occasion

19 Rs.1000/- per
Not medically examining the workers before allowing
occasion
them to work at height, not providing ear muffs while
allowing them to work in noise polluted areas, made
them to work in air polluted areas without respiratory
protective devices, etc.
20 Use of Grinder without wheel guard Rs.1000 per occasion
Signature of Bidder
With seal
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Page 22

21 Non-use of CCOE approved spark arrestors; Fire

Rs.2000/- per item
extinguishers in vehicles
per occasion. On
third repeated
occurrence,
contractor shall be
prohibited from
taking vehicles into
the Refinery beyond
the Main Gate
22 Non-use of flash back arrestors in oxy-acetylene
Rs.1000/- per
cylinders
occasion
23 Blocking of roads without permission (OR) Not Rs.5000/-per
providing barricade & caution boards occasion
24 Movement of crane with suspended loads; people Rs.5000/- per
travelling in cranes & forklifts. occasion
25 To be decided by
Any violation not covered above
Engineer-in- charge

The rate of above penalty shall be double in case of violation of aforesaid acts more than
three times during the pendency of the contract. In addition, CPCL reserves the right to
cancel the pass of contractor supervisors / workmen in case of violations and ban them
from entering the refinery.

Signature of Bidder
With seal
 83

Page 23

16 RADIOGRAPHY

Radiography is a potential hazard to all concerned. Hazardous conditions for both users of
radioisotopes and the general public have to be prevented. Procedure no. CPCL-INSP-
RAD-01, titled “Procedure for the safe use of Industrial Radiography sources during field
Radiography” (all sheets), issued by CPCL has to be followed, to prevent a hazardous
condition during radiography.

Hot work Permit should be obtained for any Radiography works with CPCL premises. The
Engineer-in-charge shall inform F&S Department about the radiography works in
progress.

Details such as the type and strength of the source, the model and the serial number of
the Radiography camera proposed to be used at the site, the names of the
Radiographers and the name of the site-in-charge should be communicated to the
Engineer-in-charge along with the request for approval of the proposed site. A sketch of
the site (to scale) indicating the location of the Radiography operators should also be
sent.

Each Radiography site should possess the specified and calibrated survey meters. At
least one radiation survey meter with calibration certificate shall be made available in
good working condition at all times.

Enough care should be taken before dispatch of the Radiography camera to site. As far
as possible the package containing radiography camera and source should be duly
escorted to the site by an authorized person along with all documents pertaining to the
camera including a certificate stating that the camera is safely packed for transport.

All accessories required for the safe use of the Radiography source such as the
manipulator rod should also be necessarily transported to the Radiography site along
with the Radiography Camera.

Upon arrival at site, the Radiography Camera should be inspected by the Site-in-Charge
and Owner’s nominated Engineer-in-charge and an appropriate entry made in the
relevant logbook.

The Radiography Camera and source when not in use should always be stored in a
separate storage room / pit under lock and key. It should never be left at the work site
unattended. If a number of Cameras and source are to be stored, individual
compartments may be provided in the same storage room or alternatively individual
underground pits with lids bearing appropriate identification markings / tags may be
provided. Care should be taken to avoid water seepage into the pits, which should be
duly protected. Prior approval for the proposed design of the site storage facility should
be obtained from the Owner.

Radiation warning signs should be conspicuously posted on the entrance door of the
storage room. The storage room should be provided with adequate illumination and
ventilation. Site-in-Charge shall be the custodian of the Radiography Cameras and
sources at the site and shall maintain a logbook / issue register regarding the sources or
cameras.
Signature of Bidder
With seal
 84

Page 24

As far as possible, field radiography should be done only during night when there is littleor
no movement of personnel around the site of radiography.

Field Radiography during daytime may be permitted on a restricted scale when the
occupancy is minimum e.g. during lunch interval or on holidays. If field radiography is
done at the same location repeatedly, it is advisable to provide either a wire fencing
around or a temporary brick enclosure.

A suitable area around the radiation source should necessarily be cordoned off during
field radiography so that the radiation levels outside the area do not exceed the
maximum permissible radiation levels.
The distance to be cordoned off around the source is decided by the nature and strength of
the radiation source used the type of exposure given, the nature of occupancy around and
the total exposure time per week.

Radiation warning symbols should be conspicuously posted all along the cordon. Red
warning lights should be conspicuously displayed during night all along the cordon and
especially at the point of entry.

The concerned radiographer shall be physically present outside the cordoned area during
exposures.

All personnel working with the radiography sources should wear appropriate personnel
monitoring badges during radiography. The film badge should be work on the chest. In
addition, the worker may also wear a wrist badge depending upon the type of operationsto
be conducted.
As soon as the radiation work is over, the film badges should always be stored in a
radiation free area along with the control film. It should never be carried home or left at a
place where radiation sources are stored.
The Site-in-Charge should arrange to collect and return all used films to his Head Officeor
direct to the Owner, as appropriate, at the end of every radiographic examination
without fail.
Any accidental exposure to the film badge or damage to the film due to mishandling
should be immediately reported to the Owner and the film sent to Owner for urgent
processing. The person affected should be provided with a new film.
To facilitate proper evaluation of radiation exposure the film badge should be protected
from excessive heat, moisture and pressure.
In addition to the film badge, each radiation worker may be provided with a pocket
dosimeter, which has a range of 200 mR full scales. These dosimeters should be charged
each day prior to use. The pocket dosimeter reading should be noted in a register
against the name of each radiation worker at end of the day’s work. The pocket
dosimeter should be handled carefully so as to avoid self-discharge due to excessive
humidity conditions, accidental fall, etc.
Radiation emergencies may be caused due to loss of sources or damages to the camera or
source pencil or due to improper functioning of the equipment.

Signature of Bidder
With seal
 85

Page 25

Contractor with the assistance of contractor’s Safety Officer and Owner should institute
strict internal management procedure to ensure that accidents are avoided.

17 STATUTORY / OISD / BIS GUIDELINES:

Contractors and their supervisors must acquaint themselves with all the relevant
statutory guidelines like Factories Act, Tamilnadu factories rules, Indian Explosives Act
and Rules, Petroleum Act and Rule, Indian Electricity Act and rules, relevant IS
codes, OISD standards / guidelines, etc. relating to safety equipment and safe
working practices. The list of such standards, guidelines and codes are given in
Annexure-8.

Use of Hydra Cranes: Contractor shall follow strictly the guidelines for usage of
Hydra cranes as given below:
•.Hydra cranes with Front cabin only should be engaged for the works at CPCL.
•.Hydra cranes should not be used for transportation of materials.
•.Guiding Ropes should be used always for guiding the loads.
•.In no case, Rear cabin Hydra cranes shall be allowed in the worksite anywhere
in CPCL.
•.Any violation in this regard will be viewed seriously and a penalty of Rs.5,000/-
will be imposed on violators and necessary action will be initiated against the
concerned.

Signature of Bidder
With seal
 86

Page 26

ANNEXURE – 1

FORMAT OF JOB SAFETY ANALYSIS

Signature of Bidder
With seal
 87

Page 27

ANNEXURE – 2

SAMPLE MEDICAL CERTIFICATE FORMAT

Certified that I have examined

Shri , Age , ESI Number

on and I find him medically fit to work at height more than 2

meters / work in confined space.

Signature and Rubber stamp Date of Medical Practitioner

(Name, Qualification and Registration Number)

Signature / Thumb Impression of the workman ID Card No.

Note:

1. This certificate is to be given on the letterhead of the registered medicalpractitioner

who is possessing allopathic qualification as recognized by the Indian medical
council.

2. The detailed medical examination report shall be given to the workman for handing
over to CPCL-OHS Centre.

Signature of Bidder
With seal
 88

Page 28

ANNEXURE – 3

Scaffold Pre-erection cum Periodical Inspection Clearance Form

Location of work (Unit /Area/ Equipment no.)

Name of Contractor: SAP Work order No.:

Scaffold Pre-erection Clearance:
Sl. No. Requirements Yes No Remarks (if any)
Scaffold site erection site inspected and surface is firm
1
/ hard
2 Scaffold erectors have medical certificate

3 Scaffold pipes- , Scaffold couplers - , Base plates - , Toe boards- , Tags (Red &
Green) - , Metal Scaffold planks - , Metal wire - , Aluminum ladder- , Barricading
tape - , Full body harness with double lanyard - , Warning signs - .
Performing authority Authorized Engineer
Date of Request & Clearance for
erection

Designation & PR .No

After pre-erection clearance, RED tag shall be handed over to Performing Authority for
providing in the scaffold till the erected scaffold is offered for inspection & cleared for use.
Scaffold Cleared for use:
Performing authority Authorized Engineer
Date of Request & Clearance for
use

Designation & PR .No

After clearing for use, GREEN tag shall be provided in the scaffold.
Scaffold Clearance Renewal:

Sl. Date Authorized Engineer

Remarks
No. From To PR. No. Name Signature

Signature of Bidder
With seal
 89

Page 29

ANNEXURE – 4

TAGS TO CERTIFY SCAFFOLDING

SCAFFOLD INSPECTION TAG SCAFFOLD INSPECTION TAG

(Red Color)
Location:
(Green Color)
Erected by:
Location:
Erected by:

DO NOT USE FIT FOR USE

Name of the authorized engineer: Name of
Date of
Authorized Signature
Signature: Inspection
Engineer

Date of inspection:

Signature of Bidder
With seal
 90

Page 30

ANNEXURE – 5

FORMAT OF SCAFFOLDING REGISTER

Remark
INSPECTION RECORD
Name of Contractor’s Name of CPCL‟s
Date Signature Signature
Safety supervisor Engineer-in-Charge

Signature of Bidder
With seal
 91

Page 31

ANNEXURE – 6

ROAD BLOCK CLEARANCE

Signature of Bidder
With seal
 92

Page 32

ANNEXURE – 7

MONTHLY SAFETY REPORT

(To be submitted by each Contractor)

Actual Work start Date: for the Month of:

Project: Report No.:

Name of the Contractor: Status as on:

Name of work: Name of Designated Safety Officer:

Item This Month Cumulative

Remarks, if any

Date:
Safety Officer / Resident Engineer
(Signature and Name)
To

Signature of Bidder
With seal
 93

Page 33

ANNEXURE - 8

APPLICABLE CODES / STANDARDS / GUIDELINES

BIS CODES

SP: 53 Safety code for the use, care and protection of hand operated tools.
IS: 818 Code of practice for safety & health requirements in electric and gas welding and
cutting operations
IS: 1179 Eye & Face precautions during welding, equipment, etc.
IS: 1860 Safety requirements for use, care and protection of abrasive grinding wheels
IS: 1989 Leather safety bolts and shoes (Part-II)
IS: 2925 Industrial Safety Helmets
IS: 3016 Code of practice for fire safety precautions in welding & cutting operation
IS: 3043 Code of practice for earthing
IS: 3764 Code of safety for excavation work
IS: 3786 Methods for computation of frequency and severity rates for Industrial injuries
and classification of industrial accidents
IS: 3996 Safety Code of scaffolds and ladders
IS: 4082 Recommendations on stacking and storage of construction materials and
components at site
IS: 4770 Rubber gloves for electrical purposes
IS: 5121 Safety code for piling and other deep foundations
IS: 5216 Recommendations on Safety procedures and practices in (Part-I) electrical works
IS: 5557 Industrial and Safety rubber lined boots
IS: 5983 Eye protectors
IS: 6519 Selection, care and repair of Safety footwear
IS: 6994 Industrial Safety Gloves (Leather & Cotton Gloves) (Part-I)
IS: 7293 Safety Code for working with construction Machinery
IS: 8519 Guide for selection of industrial safety equipment for body Protection
IS: 9167 Ear protectors
IS: 11006 Flash back arrestor (Flame arrestor)
IS: 11016 General and safety requirements for machine tools and their operation
IS: 11057 Specification for Industrial safety nets
IS: 11226 Leather safety footwear having direct mounded rubber sole

Signature of Bidder
With seal
 94

Page 34

IS: 11972 Code of practice for safety precaution to be taken when entering a sewerage
system
IS: 13367 Code of practice-safe use of cranes
IS: 13416 Recommendations for preventive measures against hazards at workingplace

INTERNATIONAL STANDARDS

Safety Glasses ANSI Z 87.1, ANZI ZZ 87.1, AS 1337, BS 2092, BS 1542, BS 679, DIN 4646
/58211
Safety Shoes ANSI Z 41.1, AS 2210, EN 345
Hand Gloves BS 1651
Ear Muffs BS 6344, ANSI S 31.9
Hard Hat ANSI Z 89.1 / 89.2, AS 1808, BS 5240, DIN 4840
Goggles ANSI Z 87.1
Face Shield ANSI Z 89.1
Breathing Apparatus BS 4667, NIOSH
Welding & Cutting ANSI Z 49.1

OISD GUIDELINES

OISD-GDN-207 Contractor Safety

OISD-STD-105 Work Permit System
OISD-GDN-192 Safe practices during Contract

Signature of Bidder
With seal
 95

Page 35

ANNEXURE – 9

FORMAT FOR ELECTRICAL ISOLATION / ENERGISATION

Signature of Bidder
With seal
 96

Chennai Petroleum Corporation Limited

HR Personnel
DepartmentNotice
No: PD/07/2021

Sub: Additional Penalties for safety violations w.e.f

20/01/2021

The following Penalties will supersede the penalties indicated in Sl. No. 15.3 (Pages 20-22):
.

Penalties
S No Lapses/ Violations 1 st
2nd 3rd
Violation Violation Violation
Road Safety
Suspension of
1 Over speeding of vehicle Rs. 1000/- Rs. 2000/- vehicle pass for
03 months
Suspension of
Not wearing seat belts while driving
2 Rs. 500/- Rs. 1000/- vehicle pass for
inside the battery area
15 days
Suspension of
3 Vehicle parking at non-designated area Rs. 500/- Rs. 1000/- vehicle pass for
03 months
Work Permit System
Failed to comply prescribed Work
4 Rs. 1000/- Rs. 2000/- Rs. 3000/-
permit procedure
Non-compliance to conditions of
5 Rs. 500/- Rs. 1000/- Rs. 2000/-
Work Permit system
6 Use of Hydra without flag man Rs. 1000/- Rs. 1500/- Rs. 2000/-
Safety
Non-wearing of required PPEs such
7 as safety Helmet & safety shoe inside Rs. 500/- Rs. 750/- Rs. 1000/-
battery area
Not using special PPEs (such as safety
8 belt, safety lanyard, full body harness Rs. 500/- Rs. 750/- Rs. 1000/-
etc.) while working at height#
Non wearing required PPEs (hand
glove, face shield, Goggles etc. for jobs
9 Rs. 500/- Rs. 750/- Rs. 1000/-
such as welding chemicals handling
etc)
Non-compliance to Logout / Tagout
10 Rs. 500/- Rs. 1000/- Rs. 2000/-
(LOTO)
Rs. 1000/-* Rs. 1500/-* Rs. 2000/-*
11 Carrying Mobile inside Refinery
*or / and disciplinary action

# - In addition to each penalty, the pass of the concerned contract worker will be
withdrawn forone month for violation of safety while working at height.
 97

General conditions of contract

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Page 1

INDEX

Section Description PAGE No.

1 Definition of Terms 2-3

2 Instructions to Bidders (ITB) 4-13

3 Interpretation of Contract Documents 14-15

4 Security Deposit 16-17

5 Changes in Scope of Work / Quantities 18-24

6 Materials and Facilities 25-30

7 Performance of Works 31-40

8 Inspection and Testing 41-47

9 Measurements and Payment 48-56

10 Taxes, Labour Laws and Insurance 57-62

11 Termination 63-67

12 Arbitration 68-69

13 Safety Regulations 70-79

14 General 80

15 Appendices 81-103

Signature of Bidder
With seal
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Page 2

SECTION 1

DEFINITION OF TERMS

Unless the context otherwise requires, the defined terms set out below have the following meaning.

1. “Bid” or “Tender” shall mean and include the complete offer document submitted by the
Bidder / Tenderer in response to the Notice Inviting Tender which has been deposited
with/submitted to the Owner within the stipulated date and time.

2. “Bidder” or “Tenderer” shall mean that individual or entity who has been issued with or
who has purchased the Bid Document pursuant to the Owner‟s Notice Inviting Tender/
Letter Inviting Tender.

3. “Change Order” shall mean the order given in writing by the Engineer-in-charge to
effect additions to or deletions from and alterations in the Work.

4. “Completion Certificate” shall mean the certificate issued in terms of Clause 8.4.3.

5. “Contract” shall mean the Agreement between the Owner and the Contractor for the
execution of the Work.

6. “Contract Document” shall mean collectively the Tender Documents, designs, drawings,
specifications, Schedule of Rates, Letter of Acceptance of Tender, statement of agreed
variations, if any, and such other documents as may be mentioned in the Contract or
included subsequently.

7. “Contractor” shall mean such Bidder or Tenderer whose offer has been accepted and to
whom a Letter of Acceptance has been issued in pursuance thereto.

8. “Contract Value” in relation to the Work shall mean the total consideration required
under the Contract to be paid by the Owner to the Contractor on satisfactory execution of the
Work.

9. “Consultant” shall mean the consultant nominated/appointed by the Owner for the project/
job.

10. “Defect Liability Period” shall mean the period reckoned in terms of Clause 8.5.

11. “Drawings” shall include maps, plans, sketches and tracings or prints thereof as also any
modifications thereto approved in writing by the Owner, and/or Engineer-in-charge,
notifying addition to or deletion with respect to the Work.
Signature of Bidder
With seal
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Page 3

12. “Engineer-in-Charge” shall mean the officer designated as such by the Owner and shall
include any other person expressly authorized in writing by the Owner, for any specific purpose,
as the Engineer-in-charge.

13. “Final Test Certificate” shall mean the certificate issued in terms of Clause 8.3.2.

14. “Letter of Acceptance” shall mean the letter of acceptance issued by the Owner to the
Bidder/Tenderer whose offer has been accepted.

15. “Managing Director” shall mean the person discharging the duties of the Managing
Director of the Owner.

16. “Owner” shall mean the Chennai Petroleum Corporation Limited, incorporated in India,
having its Registered Office at 536, Anna Salai, Teynampet, Chennai– 600018,
Tamil Nadu, India.

17. “Permanent Work” shall mean and include work which will be incorporated in and form a
part of work to be handed over to the Owner by the contractor on completion of the
contract.

18. “Progress Schedule” shall mean the progress schedule as approved in terms of Clause
7.4.2 or as issued by the Engineer-in-charge in terms of Clause 7.4.3.

19. “Site” shall mean and include the area at or on which the Work or any part of the Work is to
required to be executed or carried out, and shall include such other place(s) as may be made
available by the Owner for purposes of executing the contract.

20. “Sub-Contractor” shall mean any person or entity designated as the Sub-contractor by
the Contractor in accordance with the terms of the GCC.

21. “Temporary Work” shall mean all temporary work of every kind required in or about the
execution, completion or maintenance of the Work.

22. “Termination Notice” shall mean the written notice issued by the Owner to the Contractor in
terms of Clause 11.1.1.

23. “Work” shall mean and include all works, of whatsoever character, set forth or specified, or
implied therefrom, or incidental thereto or as may be subsequently specified in the
Contract, including but not limited to drawings, supplies, construction, erection, etc, as per
the Contract.

Signature of
Bidder
With seal
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Page 4

SECTION 2

INSTRUCTIONS TO BIDDERS

2.1 Tender Documents:

The Tender Documents shall consist of the following:

i) Notice Inviting Tender / Letter Inviting Tender

ii) Instructions to Bidders (ITB)
iii) General Conditions of Contract (GCC)
iv) Special Conditions of Contract (SCC)
v) Standards and Specifications
vi) Drawings
vii) Time Schedule
viii) Schedule of Rates
ix) Addendum / Addenda to Tender Documents

2.2 Tenderer to obtain his own information:

2.2.1 The Tenderer shall be deemed to have obtained or be otherwise in possession of all the
necessary information for the purpose of preparing his Tender, including the Schedule of
Rates.

2.2.2 The Tenderer shall be deemed to have examined the Tender Documents, to have
generally obtained information in all matters whatsoever that might affect the carrying
out of the Work at the Scheduled Rate and to have satisfied himself as to the correctness of
his Tender. Any errors in description of quantity or omission therefrom shall not vitiate
the Contract that may be entered into or release the Contractor from executing the Work
comprised in the Contract according to Drawings, Specifications at the Scheduled
Rates. The Tenderer is deemed to have known the scope, nature and magnitude of the
work and the requirements of Materials and Labour involved, etc., and as to what all
Work he has to complete in accordance with the Contract notwithstanding any
omissions or errors in the Tender Documents.

2.2.3 The Tenderer shall be deemed to have visited and examined the site and its
surroundings, to have satisfied himself as to the nature of all existing structures if any,
and also as to the nature and condition of existing railways, roads, bridges and culverts,
means of transport or communication, whether by land, water or air and as to possible
interruptions thereto and the access to and egress from the site, to have made necessary
inquiries, examined and satisfied himself as to the sites for obtaining sand, stone,
bricks and other materials, the sites for disposal of surplus materials, the available
accommodation as to whatever required, Depots and such other building as may be
Signature of Bidder
With seal
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Page 5

necessary for executing and completing the works, to have made local and independent
inquiries as to the subsoil, subsoil water and the variation thereof, storm, prevailing
winds, climatic conditions and generally all matters affecting these works.

2.2.4 The Tenderer is deemed to have acquainted himself as to his liability for payment of
Government Taxes and Duties and other charges.

2.2.5 Any neglect or failure on the part of the Contractor in obtaining necessary and reliable
information upon the foregoing or any other matters affecting the Contract shall not
relieve him from any risks, or liability or from the entire responsibility for completion of
the Work at the Scheduled Rates and within the stipulated time, in accordance with the
Contract Documents.

2.2.6 No verbal agreement or inferences from conversation with any officer or employee of the
Owner, howsoever occurring and at any time, shall affect or modify any of the terms or
obligations contained in the Contract agreement.

2.3 Submission of Tenders:

2.3.1 Tender Documents shall remain the property of the Owner and shall not be used, without the
express written consent of the Owner, by any one other than the intending Tenderer who
has purchased or otherwise lawfully obtained the same.

2.3.2 Two sets of tender documents, one set marked “ORIGINAL” and the other marked
“TENDERER‟s COPY”, shall only be issued to any one intending Tenderer.

2.3.3 The “ORIGINAL” tender document shall be completely filled in all respects and shall be
submitted along with requisite information and Annexures. A Tender, incomplete in any
respect, shall be liable for rejection without further reference to the Tenderer. All
information, correspondence, letters and details accompanying the Tender Documents and
all further correspondence in connection with the Tender shall be submitted in FIVE
copies.

2.3.4 The Tender with a complete set of Tender Documents shall be submitted as prescribed
below:

2.3.4.1 The Unpriced part of the Tender kept in a sealed envelope superscribed “UNPRICED PART
- TENDER for [Name of Work], TENDER NOTICE No……………………….” .
This part shall also contain the Earnest Money Deposit. [“First Cover”]

2.3.4.2 The Priced part of the Tender kept in a sealed envelope superscribed “PRICED PART
- TENDER for [Name of Work], TENDER NOTICE No…………….”. [ “Second Cover”]

Signature of Bidder
With seal
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Page 6

2.3.4.3 The First Cover and the Second Cover shall be enclosed in a sealed cover superscribed
prominently with the note “TENDER for [Name of Work], TENDER NOTICE
No……………………………….., DO NOT OPEN BEFORE” [ “Third Cover”].

2.3.4.4 All the three sealed envelopes shall bear the full name, postal address, telephone / fax
number of the Tenderer at the bottom left hand corner.

2.3.5 The Tenderers are advised to submit the Tenders, personally or through an authorised
agent, at the place of submission of Tender mentioned in Notice / Letter Inviting Tender.
Alternatively, the Tenderers may send the Tender by registered post to the tender
receiving authority specified in the Notice / Letter Inviting Tender. However, the Owner
does not accept responsibility for postal delay or loss in transit.

2.3.6 The sealed Tender in the Third Cover must reach the stipulated address before the
closing time for submission of Tenders specified in the Notice / Letter Inviting Tender.
Tenders received after the closing time for submission of Tenders shall be considered as
“Late Offers” and are liable for rejection.

2.3.7 Tender, as submitted shall be the property of the Owner and it shall not be returned to the
Tenderer on any account. However, “Late Offers”, if requested by the Bidders shall be
returned to them.

2.4 Tender Documents:

The Tenders, as submitted, shall include the following:

2.4.1 Complete set of Tender Documents marked “ORIGINAL” as issued, duly filled in and
signed by the Tenderer in the manner prescribed in the Tender Documents.

2.4.2 Earnest Money as specified in Clause 2.12 hereof.

2.4.3 Power of Attorney or a true copy thereof duly attested by a Gazetted Officer in case an
authorised representative has signed the Tender, as stipulated in Clause 2.7 hereof.
2.4.4 Income Tax clearance certificate and Sales Tax clearance certificate in original or true
copies duly attested by a Government Gazetted Officer.

2.4.5 „Letter of Submission of Tender‟ as per Proforma enclosed in Appendix – I

2.4.6 Information regarding Tenderer in the Proforma enclosed as Appendix – II.

2.4.7 Copy of the partnership deed in case the Bidder is a Partnership firm and Memorandum/
Articles of Association in case of Companies.
Signature of Bidder
With seal
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Page 7

2.4.8 Details of work of comparable nature and magnitude carried out by the Tenderer in the
proforma enclosed as Appendix – III. The Tenderer should enclose documents to
show that he has previous experience in having successfully completed in the recent
past, works of the nature and value as stipulated in the pre-qualification requirements,
together with the names of owners, location of sites and value of contract.

2.4.9 Organisation Chart giving details of the proposed field management at site, including
bio-data of the Site-in-charge and the key personnel.

2.4.10 Details of construction plant and equipment available with the Tenderer for use in the
execution of the work, in the proforma enclosed under the head “Information Regarding
Equipment which the Tenderer proposes to use for his work”, as Appendix – IV.

2.4.11 Tenderer‟s Safety Policy.

2.4.12 Tenderer‟s Quality Policy.

2.4.13 Solvency certificate from a Scheduled bank indicating the amount to which the Tenderer is
solvent to prove the financial ability to carry out the work tendered for.

2.4.14 Details of concurrent commitments of Tenderer as per proforma enclosed as

Appendix – V.

2.4.15 Copies of documents showing annual turnover of the Tenderer.

2.4.16 Audited Profit and Loss Account and Balance Sheets for the preceding three years.

2.4.17 Exceptions and deviations, if any, with reference to the Section No., Clause No. and
Page No. of the Tender Document.

2.4.18 Any other technical information, relevant to the work which the Tenderer wishes to furnish.

2.5 Addenda:

2.5.1 Addenda to the Tender Documents may be issued prior to the date of opening of the
Tenders to remove omissions /ambiguities, if any, or to clarify the specifications, or to
intimate modifications in the design or contract terms.

2.5.2 Each addendum will be distributed in duplicate to each person or Organisation to

whom a set of Tender Documents has been issued. Each recipient will retain one signed
copy of each addendum for submission along with his Tender and return one signed copy
Signature of Bidder
With seal
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Page 8

to the authority inviting Tenders as acknowledgement of receipt of the addendum. All

such addenda issued by the Owner shall become part of Tender Documents.

2.6 Filling up of Tender:

2.6.1 Tenderers are deemed to have read and fully understood all terms and conditions of the
Tender.

2.6.2 Tenderers shall submit the quotation as per additional details given in other clauses
given here under. The requisite details shall be filled in by the Tenderer in the Letter of
Submission of Tender.

2.6.3 Addenda /Corrigenda to the Tender Document, if issued, must be signed and submitted
along with the Tender Document. The Tenderer should write clearly the revised quantities in
the Schedule of Rates of Tender Document and should price the work based on revised
quantities, if amendments for quantities have been issued.

2.6.4 Tenderers are advised to submit quotation strictly based on the terms and conditions and
specifications contained in the Tender Document and not stipulate any deviations. Should
it however become unavoidable, deviations should be stipulated with reference to the
clause and page number of Tender Document. Owner reserves the right to reject such
Tenders or to evaluate quotations containing deviations having financial implications
after loading appropriate cost for such deviations as determined by the Owner.

2.7 Signing of Tender:

2.7.1 The Tender shall contain the name, residence and place of business of person or
persons making the Tender and shall be signed by the Tenderer with his usual signature.
Partnership firms shall furnish the full names of all partners in the Tender. It should be
signed in the partnership‟s name by all the partners or by duly authorised representative
followed by the name and designation of the person signing. Tender by Corporation
shall be signed in the name of Corporation, by a person duly authorised to do so. In
case it is signed by an authorised representative, a Power of Attorney in that behalf
shall accompany the Tender. A copy of the constitution of the firm with names of all
partners shall be furnished.

2.7.2 The person signing the Tender shall state his capacity as also the source of his power to
bind the Tenderer. The power of attorney or authorisation or other document
constituting adequate proof of the capacity and competence of the signatory to bind the
Tenderer shall be annexed to the Tender. The Owner reserves the right to reject any Tender
unsupported by adequate proof of the signatory‟s authority.

2.7.3 All pages of all sections of Tender Document shall bear, at the lower right hand corner, the
initials of the Tenderer or of a person holding Power of Attorney authorising him to sign on
Signature of Bidder
With seal
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Page 9

behalf of the Tenderer unless such page is required to bear the full signature. All
signatures in Tender Documents shall be dated as well.

2.7.4 When a Tenderer signs a Tender in a language other than English, the total amount in the
Schedule of Rates should in addition be written in the same language. The signature should
be attested by at least one witness.

2.7.5 Witnesses and sureties shall be persons of status and their names, occupation and
address shall be stated below their signatures.

2.8 Rates to be in Figures and Words:

2.8.1 The Tenderer should quote in English, both in figures as well as in words, the rates and
amounts tendered by him in the Schedule of Rates, in such manner that interpolation is
not possible. If the rate is not quoted both in figures and words properly and correctly, the
Tender shall be liable for rejection. The amount for each item should be entered,
together with working details where called for, and requisite totals given of all items,
both in figures and in words. The tendered amount for the work shall be entered in the
Tender and duly signed by the Tenderer.

2.8.2 If discrepancies are found between the rates given in words and figures of the amount
shown in the Tender, the following procedure shall be followed :
a) When there is a difference between the rates in figures and words, the rate
which corresponds to the working details furnished by the Tenderer shall be taken
as correct rate.
b) When the rate quoted by the Tenderer in figures and words tally but amount is
incorrect, the rate quoted by the Tenderer shall be taken as correct and the
amount shall be determined accordingly.
c) When it is not possible to ascertain the correct rate as prescribed above, then
the rate in words shall be treated as quoted rate.

2.8.3 The rates stated in the Schedule of Rates shall not be subject to escalation on any
account whatsoever.

2.9 Corrections and Alterations :

No erasures or over writings are permissible. In case corrections /alterations in the

entries of Tender documents become unavoidable, they should be authenticated with full
signature of the Tenderer with date. Tenders with blanks, or dashes are liable to be
rejected. The expressions „nil‟, or „not applicable‟ may be used wherever necessary.

2.10 Unquoted Items:

The Tenderer shall fill in rates for all items of the Work as detailed in the Schedule of
Rates. Tenderer will not be entitled to be paid anything by the Owner in respect of
items for which no rate is entered and the cost /price in respect of such items shall be
deemed to be included in the other items in the Schedule of Rates.
Signature of Bidder
With seal
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Page 10

Owner reserves the right to reject Tenders in which rate(s) are not quoted by the Tenderer for
one or more items.

2.11 Currencies:

The rates and the amounts shall be quoted by the Bidder entirely in Indian Rupees
unless otherwise permitted.

2.12 Earnest Money :

2.12.1 The Tenderer must deposit in full the Earnest Money indicated in the Notice Inviting
Tender / Letter Inviting Tender along with the Tender, and in the manner indicated herein,
failing which the Tender will be considered incomplete.

2.12.2 The Earnest Money can be deposited in the form of Demand Drafts or Bank Guarantee.

2.12.3 The Demand Drafts or Bank Guarantee shall be one issued by any Scheduled Bank in India
in favour of the Chennai Petroleum Corporation Limited, Manali, Chennai. The bank
guarantees submitted by the Tenderer shall be in the proforma enclosed as Appendix
– VI and shall be valid, initially, for a period of six (6) months from the notified date
of opening of the tender.

2.12.4 No interest shall be allowed on the Earnest Money deposited by the Tenderer.

2.12.5 Earnest Money of the unsuccessful Tenderer will be refunded within a reasonable period of
time after award of the contract.

2.12.6 The Earnest Money deposited by successful Tenderer shall be liable for forfeiture if such
Tenderer fails to deposit the requisite Initial Security Deposit as per Section 4 hereof,
and /or fails to start work within a period of Ten (10) days, or fails to execute the contract
agreement within ten (10) days of receipt of intimation of acceptance of the Tender by
the Owner. The Earnest Money deposited by the successful Tenderer shall be returned to
him only after he deposits the requisite Initial Security Deposit as per Section 4 hereof.

2.13 Time for Completion:

2.13.1 The time for completion of the Work is shown in the Time Schedule forming part of the
Tender Document. Time shall be reckoned from the date of receipt by the successful
Tenderer of Fax /Letter of Acceptance of the Tender by the Owner. The successful
Tenderer shall commence work at job site within ten (10) days of the date of receipt of
the Fax /Letter of Acceptance.

2.13.2 The Time Schedule shall be signed and submitted along with the Tender. Requests for
revision of Time Schedule after the Tenders have been opened will not be considered.

Signature of Bidder
With seal
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Page 11

2.14 PF / ESI Code:

The Tenderer shall indicate his / their PF Code / ESI Number in their tender, failing
which the Tender submitted by him / them shall be liable for rejection.

2.15 Income Tax Permanent Account Number :

The Tenderer shall in all cases indicate his income tax Permanent Account Number.

2.16 Safety Policy:

The Tenderer shall submit copies of their safety policy, procedures, accident
performance details, together with illustrative risk assessments and method statements for
similar work undertaken previously.

2.17 Quality Policy:

The Tenderer shall submit copies of their quality policy, procedures, and performance
details, together with certifications obtained by them in this regard.

2.18 Tender Validity:

Tender submitted by Tenderer shall remain valid for acceptance, initially, for a period of
four months from the date of opening of the Tender. At the request of the Owner, the
Tenderer may extend the validity period of the Tender. The Tenderer shall not, during the
said period of four months or the extended period, without the prior consent in writing
of the Owner, revoke, or cancel the Tender or vary the terms of the Tender. In case of
Tenderer revoking or canceling his Tender or varying any term in regard thereof without the
consent of Owner in writing, the Earnest Money paid along with Tender, by Tenderer, shall
be forfeited.

2.19 Retired Government or Company Officers :

2.19.1 No Director of the Owner is allowed to Tender for a period of two years after his
retirement or resignation from the office of Director, without the previous permission of
the Owner. The contract, if awarded in violation of this stipulation, is liable to be cancelled if
the Tenderer is found at any time to be such a person and has not obtained the
permission of the Owner before submission of the Tender. Any Tender by a person
aforesaid shall carry a disclosure thereof in the Tender and shall be accompanied by a copy
of the document by which the requisite consent is given. Such disqualification shall
apply to every partner of a partnership firm.

2.19.2 The Tenderer is required to expressly state whether he is a relative of any Director of the
Owner or the Tenderer is a firm in which a Director of the Owner or his relative is a
partner, or Tenderer is a company in which a Director of the Owner is a Director. For the
purposes of this Clause the term „relative‟ shall have the same meaning as in Section 6
of the Companies Act, 1956.
Signature of Bidder
With seal
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Page 12

2.19.3 No engineer of gazetted rank or other gazetted officer, employed in engineering or

administrative duties in an Engineering Department of the State / Central Government or
of the Owner is allowed to work as or under a Contractor for a period of two years after
ceasing to be in such service, without the previous written permission of the Owner. In the
absence of such permission, a Contract if awarded is liable to be cancelled.

2.20 Banned or De-listed Contractors :

The Tenderer shall give a declaration in the enclosed proforma (Appendix II A) that it /
they have or had not been banned, or blacklisted / de-listed by any Government / Quasi-
Government / Public Sector Undertaking. If such declaration is not given together with the
Offer, their bid will be rejected as incomplete. If a Tenderer has been so banned, or
blacklisted / de-listed, the OWNER reserves the right to disqualify such Tenderer. A
person, firm or company banned, or blacklisted / de-listed by the Owner shall not be
eligible to receive the Tender Documents or to submit a Tender for so long as the order
banning / blacklisting / de-listing is in force. If it is found at a later date that the
Contractor has secured the contract by furnishing wrong information or by suppressing
facts in the bid submitted, the owner reserves the right to cancel the contract and
forfeit the EMD.

2.21 Right of Owner to Accept or Reject Tender :

2.21.1 The acceptance of Tender will rest with the Owner. The Owner, however, does not bind itself
to accept the lowest Tender and reserves to itself the authority to reject any or all Tender
received without assigning any reason whatsoever.

2.21.2 The whole Work may be split up between two or more Contractors, or accepted in part and
not in entirety, if considered expedient.

2.21.3 Tenders in which any of the particulars and prescribed information are missing or are
incomplete in any respect, and / or the prescribed conditions are not fulfilled, are liable to
be rejected.

2.21.4 Canvassing in connection with tenders is strictly prohibited. Tender submitted by a

Tenderer who resorts to canvassing in any form is liable to rejection, apart from other
legal proceedings that may be instituted against the concerned Tenderer.

2.21.5 Tenders containing uncalled for remarks or any additional conditions are liable to be
rejected.

2.21.6 In case unsolicited reductions in rate(s) or price(s)are offered by a Tenderer after

opening of the priced bids, the respective Tender shall be liable to be rejected.

2.21.7 Acceptance of a Tender shall be intimated by a Letter of Acceptance by the Owner to the
Tenderer at the address furnished for the purpose in the Tender.

Signature of Bidder
With seal
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2.22 Signing of the Contract :

The successful Tenderer shall be required to execute an agreement in the form attached as
Appendix – VII, within 10 days from date of receipt of the Fax / Letter of Acceptance of
the Tender or within such extended time as may be permitted by the Owner in this
regard. In the event of failure on the part of the successful Tenderer to execute the
agreement within the stipulated period, the Earnest Money deposited and the Initial
Security Deposit will be forfeited and the acceptance of the tender, shall stand cancelled. This
is subject to cure period under Clause11.1.1

*********

Signature of Bidder
With seal
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SECTION 3

INTERPRETATION OF CONTRACT DOCUMENTS

3.1 Interpretation of Contract Documents:

3.1.1 The Contract Documents are to be read together. Should there be any discrepancy,
inconsistency, error or omission in the Contract or in any of the Contract Documents, the
matter shall be referred to the Engineer-in-Charge, whose decision shall be final and
conclusive and the Contractor shall carry out the Work in accordance with such
decisions.

3.1.2 Works shown upon the drawings but not mentioned in the specifications, or described in
the specification without being shown on the drawings, shall nevertheless be held to be
included in the same manner as if they had been specifically shown upon the drawings and
described in the specifications.

3.1.3 All headings of and marginal notes to the clauses of these General Conditions of
Contract or to the Specifications or to any other part of the Tender Document are solely
for the purpose of giving a concise indication and not a summary of the contents thereof,
and shall not be deemed to be part thereof or be used in the interpretation of
construction thereof of the Contract.

3.1.4 In the Tender / Contract Documents, unless otherwise stated specifically, the singular
shall include the plural and vice versa wherever the context so requires. Words importing
persons shall include relevant incorporated companies / registered associations / body of
individuals / firm of partnership.

3.2 Special Conditions of Contract :

3.2.1 The Special Conditions of Contract shall be read in conjunction with the General
Conditions of Contract, Specifications of Work, Drawings and any other documents
forming part of this Contract wherever the context so requires.

3.2.2 Notwithstanding the sub-division of the Contract Documents into separate sections and
volumes, every part of each shall be deemed to be supplementary to and
complementary of every other part and shall be read with and into the Contract so far it
may be practicable to do so.

3.2.3 Where any portion of the General Conditions of the Contract is repugnant to or at
variance with any other provisions of the Special Conditions of the Contract, then unless a
different intention appears, the provisions of the Special Conditions of the Contract shall
be deemed to over-ride the provisions of the General Conditions of Contract and shall
prevail to the extent of such repugnancy or variations.

Signature of Bidder
With seal
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Page 15

3.2.4 Wherever it is mentioned in the Specifications that the Contractor shall perform certain
Work or provide certain facilities, it is understood that the Contractor shall do so at no
extra cost.

3.2.5 The materials, designs and workmanship shall satisfy the relevant Standards,
Specifications contained herein and Codes referred to. Where the Specifications
stipulate requirements in addition to those contained in the Standards or Codes, such
additional requirements shall also be satisfied.

3.3 Order of Precedence of Documents :

3.3.1 The Contract Documents shall be interpreted in the following order of precedence, that
is to say, in the event of any inconsistency, the document later in precedence shall stand
modified / abrogated by the document(s) higher in precedence.

i) Fax of Acceptance / Letter of Acceptance along with Schedule of Rates and Statement of
Agreed Variations and its enclosures
ii) Special Conditions of Contract
iii) General Conditions of Contract
iv) Relevant Standards / Technical Specifications v)
Drawings
vi) Any other documents listed as forming part of the Contract Documents.

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SECTION - 4

SECURITY DEPOSIT

4.1 Amount of Security Deposit :

The Contractor is required to deposit with the Owner in the specified manner, a Security
Deposit which shall be equivalent to 10(ten) per cent of the Contract Value. The
Security Deposit shall be held by the Owner as security for the due performance of the
Contractor‟s obligations under the Contract. [“Contract Performance Guarantee” or
“CPG”]. No interest shall be payable by the Owner for the Security Deposit.

4.2 Mode of Security Deposit :

4.2.1 The Security Deposit shall be made in any of the following forms within 10 (ten) days of
receipt by the Contractor of the notification of acceptance of the Tender:

(a) By a Demand Draft for the full Value; or

(b) By a Demand Draft for 2½ % (two and a half per cent) of the Contract Value or by a
Bank Guarantee for 2½ % (two and a half per cent) of the Contract Value as per proforma in
Appendix VIII; or
(c) By a Bank Guarantee for the full value from a Scheduled Bank as per proforma in
Appendix IX.

4.2.2 In case of Clause 4.2.1 (b) above, the balance Security Deposit shall be made by
adjustment recovery from the first running bill onwards @ 10% of each such bill, till the
full value of the Security Deposit is made up. The Demand Draft shall be drawn in
favour of “Chennai Petroleum Corporation Limited”, payable at Chennai.

4.2.3 The BG shall be from a Scheduled Commercial Bank located in India. BGs issued by a
Foreign Bank shall be counter-guaranteed by their branch in India or a scheduled
commercial bank. The BG in all cases shall be valid upto a date three months beyond the
expiry of the Defect Liability period.

4.2.4 If the total value of the Security Deposit becomes deficient at any time, the Contractor
shall make up the deficiency within ten days of such occurrence, by furnishing a BG for the
deficient amount, failing which, the Owner shall be entitled to make up the deficiency by
adjustment recovery from the Running Bills.

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4.3 Shortfall / Excess in Security Deposit :

If the value of Work as per actual execution exceeds the Contract Value as stated in the
Letter of Acceptance, further recoveries towards Security Deposit shall be effected at
10(ten) per cent of the value of each running account bill till the deficiency in the
Security Deposit is made good. Similarly, if the value as per actual execution is less
than the Contract Value, recovery towards Security Deposit, effected in the running bills,
in excess of 10 (ten) per cent of the value of work as per actual execution shall be
refunded to the Contractor along with final bill.

4.4 Right of Owner to enforce Bank Guarantee in case of destruction of property

by Contractor :

If the Contractor, or Sub-contractor, including their agents and employees shall,

howsoever, cause any loss or damage to the property of the Owner during the
execution of the Contract, such loss or damage shall be made good by the Contractor
promptly at his own expense and in default thereof, the Engineer-in-Charge may cause the
same to be made good by other agencies at the risk and expense of the Contractor (for
which the certificate of the Engineer-in-Charge shall be final). In such a case, Owner shall be
at liberty to recover any dues in this regard from the Contractor by invoking the Contract
Performance Bank Guarantee, without recourse or notice to the Contractor.

4.5 Right of Owner to adjust Security Deposit for any dues :

The Owner shall be entitled to recover from the Security Deposit, by adjustment or by
invoking the Bank Guarantee or partly by one and partly by another, any sums that may
become due to the Owner from the Contractor on account of or in terms of this Contract, and
in such cases the Contractor shall make up the Security deposit in terms of Cl.4.2.4.

4.6 Refund / Forfeiture of Security Deposit :

4.6.1 The Security Deposit shall be held by the Owner as security for the due performance of the
Contractor‟s obligations under the Contract, provided that nothing herein stated shall
make it incumbent upon the Owner to utilize the Security Deposit in preference to any
other remedy which the Owner may have, nor shall it be construed as if the claims of
the Owner against the Contractor are limited to the value of the Security Deposit.

4.6.2 Upon termination of the Contract, howsoever caused, prior to completion of the Contract, the
Owner shall refund to the Contractor, the un-utilised part of the Security Deposit, if any,
for the time being remaining in the hands of the Owner, after settlement of accounts
including by way of adjustment , with respect to any and all sums due from the
Contractor to the Owner.

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With seal
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SECTION – 5

CHANGES IN SCOPE OF WORK / QUANTITIES

5.1 Plans and Drawings to be furnished by Owner :

5.1.1 Unless otherwise stated, plans and drawings forming part of the Tender Documents are
only indicative of the scope of the Work. Detailed working plans and drawings (if any),
required to be furnished by the Owner for the actual execution of the Work, shall be
furnished from time to time as and when required, during the progress of Work.

5.1.2 It shall be the responsibility of the Contractor to call upon the Owner to furnish such
detailed plans and drawings as are required by the Contractor for the proper execution of
the Work or any particular item or job therein, sufficiently in advance of the
requirement . Delay or failure on the part of the Contractor in this regard shall be entirely at
the risk and cost of the Contractor and shall not constitute a ground for the extension of
time or escalation of price.

5.1.3 The Contractor shall carefully study the detailed plans / drawings supplied to him in
conjunction with other connected plans / drawings and other Contract Documents and
shall, prior to the execution of the related work(s), bring to the notice of the Engineer-
in-charge any difficulties for clarification / correction .

5.1.4 The Owner shall be entitled at any time before or during the execution of the related
work(s) to amend / modify or alter any plan(s) / drawing(s) furnished to the Contractor
by the Owner and the Contractor shall thereafter perform and / or continue to perform
the related work(s) according to the plans / drawings so amended / modified / altered,
without entitlement to any extra cost or consideration, and should the Contractor
thereafter execute such relative work(s) not in accordance with the amended / modified /
altered plans / drawings, the provisions of clause 8.2.7 hereof relating to defective
works shall apply, provided further that if any such amendment / modification / alteration
shall in the opinion of the Contractor, necessitate an extension of time for completion, the
provisions of clause 7.4.4 hereof shall apply.

5.1.5 Copies of all plans and drawings, including amendments / modifications / alterations,
relating to the work(s) shall be kept and maintained at the Contractor‟s office at the
site and shall be made available to the Engineer-in-charge for inspection and for
reference at any time during the execution of the work.

5.1.6 All plans and drawings, including amendments / modifications / alterations, furnished by
the Owner to the Contractor shall be and remain the property of the Owner and shall be
returned by the Contractor to the Owner on completion of the work(s) or prior
termination of the Contract.

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5.2 Plans and Drawings to be furnished by the Contractor :

5.2.1 Where the scope of Work requires preparation of any plans / drawings / designs, the
Contractor shall, within 15 (Fifteen) days (or such period as the Owner may specify in this
behalf) of receipt of notification of acceptance of Tender or within 15 (Fifteen) days
before the specified date of commencement of the relative Work, whichever is earlier,
submit to the Owner the relative plans / drawings/ designs for approval.

5.2.2 The Contractor shall not permit any Work to be done or any material or equipment to be
utilised or fabricated or erected at variance with drawings / designs / specifications
approved by the Owner as amended / modified / altered.

5.2.3 Unless otherwise required, at least 3 (Three) sets of all approved plans / drawings /
designs prepared by the Contractor shall be submitted to the Owner for the record of the
Owner. Such sets of plans / drawings / designs shall bear the signature of the
Contractor as also the reference number and date of the approval granted. Same
provisions shall apply with respect to all amendments / modifications / alterations as
well.

5.3 Alterations in Designs, Plans, Drawings, Specifications, Orders and

Instructions:

5.3.1 In addition to the provisions of Clause 5.1, the Engineer-in-charge shall have the power by
written notice to the Contractor, at any time prior to or in the course of execution of the
Work, to alter or amend the specifications, order and / or instructions or any of them
by addition, omission, substitution or otherwise howsoever with and without altering or
amending the plans, drawings and / or designs and the Contractor shall carry out the
Work of the related work in accordance with such altered specifications, orders,
instructions, plans, drawings and / or designs as the case may be, on the same terms
and conditions in all respects, subject to provisions of Clause 5.4.3.

5.3.2 If such alteration or amendment, in the opinion of the Contractor, necessitates an

extension in the time of completion, the provisions of Clause 7.4.4 hereof and related
clauses with regard to the extension of time, shall apply.

5.3.3 If such alteration or amendment in the opinion of the Engineer-in-charge (whose opinion in
this behalf shall be final and binding upon the Contractor) necessitates the
performance of any work not covered by the Schedule of Rates (“Additional Work”), the
remuneration of such Work or portion of the Work or item thereof not covered by the
Schedule of Rates shall be determined in the following manner:

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a) If it is possible to derive the rates for such Additional Work directly from any items in
the Schedule of Rates, it shall be so derived. The opinion of the Engineer-in-
charge as to whether or not the relative rates could be so derived shall be final and
binding upon the Contractor.
b) In all other cases the rate(s) for the Additional Work shall be determined by
aggregating the following :

i) cost of all material supplied by Owner at the appropriate applicable

issue rate for material supplied by the Owner
ii) cost of all material used / supplied by the Contractor and incorporated in
the permanent Works, at the applicable rate(s) for such materials, if
specified in the relevant Schedule forming part of the Contract
iii) Cost of labour at rate(s) for same / comparable labour, if specified in the
relevant schedule forming part of the Contract.

Provided that in all cases where rates are not determinable in the manner stated
above for any item of material or labour, market rates for such item(s) of materials
and / or labour shall be taken into account adding thereto 15% (Fifteen Percent), to
cover Contractor‟s supervision, overheads and profit.

c) The opinion of the Engineer-in-charge as to whether or not any particular item of

material or labour involved is covered by the relevant Schedule(s) shall be final and
binding upon the Contractor.

d) The opinion of the Engineer-in-charge as to the quantity / quality / standard of

material and / or labour involved shall be final and binding on the Contractor.

5.3.4 The composite unit rate(s) for any work determined in accordance with the provisions of
Clause 5.3.3. above shall for the purpose of Contract be deemed to be included in the
Schedule of Rates, with effect from such determination.

5.3.5 The Contractor shall not be entitled to any compensation in addition to the payment for the
work actually performed by the Contractor calculated on the basis of the Schedule of
Rate(s) or as provided for in Clause 5.3.3 hereof, as the case may be, as a result of any
amendment or variation in the specifications, orders, instructions, plans, designs or
drawings, even if such alteration(s) or variation(s) has resulted in a reduction of the total
quantum or value of the Work involved under the Contract, provided that if as a
consequence of such amendment / variation, the Work actually performed by the
Contractor and valued on finalisation of all dues to the Contractor under the Contract
shall be less than 75% (Seventy Five Percent) of the total Contract Value as specified

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for the purpose of Security Deposit in the Letter of Acceptance, then the provisions of
Clause 5.6.4 hereof shall apply in respect of the allowance to the Contractor for the
advantage (including profit) which the Contractor may have anticipated on execution of
the Work upto the total Contract Value specified as aforesaid in the Acceptance of
Tender, but in addition thereto, the Contractor shall not be entitled to claim any
compensation, damages or profit, whatsoever upon the amendment or variation.

5.4 Alteration in the Scope of Work :

5.4.1 The Owner may, at any time before the commencement of the Work, by notice in writing
issued to the Contractor, alter the scope of the Work by increasing or reducing the
component jobs required to be done by the Contractor, or by adding thereto, or omitting
therefrom any specific job or operations or by substituting any existing jobs or operations
with other jobs and / or operations, or by requiring the Contractor to perform any extra
works in or about the job site, and upon receipt of such notice, the Contractor shall
execute the job(s) as required in terms of the altered scope of work.

5.4.2 If any alteration in the scope of work shall, in the opinion of the Contractor, necessitate
any extension in the time for completion, the provisions of Clause 7.4.4 hereof with
regard to the extension of time shall apply.

5.4.3 If such alteration in the opinion of the Engineer-in-charge (whose opinion in this behalf
shall be final and binding upon the Contractor), necessitate the performance of any
work not covered by the Schedule of Rates, the remuneration for such work or portion of
item thereof not covered by the Schedule of Rates shall be determined in accordance with
the provisions of Clause 5.3.3 hereof.

5.4.4 The Contractor shall not be entitled to any compensation in addition to the payment for the
work actually performed by the Contractor calculated on the basis of the Schedule of
Rate(s) or as provided for in Clause 5.3.3 hereof, as the case may be, as a result of any
alteration in the scope of work even if such alteration has resulted in a reduction of the
total quantum or value of the Work involved, provided that if as a consequence of such
alteration, the Total Contract Value for the completed works on finalisation and settlement
of all dues to the Contractor under the Contract shall be less than 75% (Seventy Five
Percent) of the Total Contract Value as specified for the purpose of Security Deposit in
the Letter of Acceptance, then the provisions of Clause 5.6.4 hereof shall apply in respect
of the allowance to the Contractor for the advantage (including profit) which the
Contractor may have anticipated on execution of the Work upto the Total Contract Value
specified as aforesaid in the Acceptance of Tender, but in addition thereto, the Contractor
shall not be entitled to claim any compensation, damages or profit, whatsoever upon the
alteration.

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5.5 Quantities of Work :

5.5.1 The quantities of work stated in the Form of Schedule of Rates are only indicative and do
not form part of the Contract and the Owner assumes no responsibility for the
correctness thereof, and the Owner shall not be liable for any increase or decrease in the
actual quantities of work effected within the scope of Work, nor shall such increase or
decrease, if any, in the actual quantities form the basis of any alteration of rates quoted
and accepted, or for any claim for additional compensation, damages or loss of profit or
otherwise. Notwithstanding the quantities mentioned in the Schedule of Rates, the
Contractor shall be entitled, subject to Clause 5.3 and 5.4 above, to payment only in
respect of actual quantities of work performed in terms of the Contract and as per the
final measurements, irrespective of any increase or shortfall in the quantities mentioned
in the Schedule of Rates and even if the total Contract Value for the completed
works on finalisation of all dues to the Contractor under the Contract is less than 75%
(Seventy Five Percent) of the total Contract Value as specified for the purpose of
Security Deposit in the Letter of Acceptance.

5.5.2 Variation in Quantities: If in the opinion of OWNER, the prices quoted for certain
component items of work by the lowest bidder are abnormally high in comparison with the
cost estimate and quotation of other bidders, these items will be specifically identified
and mentioned in the Letter of Acceptance. In the event of increase in quantity of such
items beyond tender quantity, a market rate analysis will be done and the Contractor
will be paid either the market rate or the rate quoted by the Contractor whichever is
less for the increased quantity.

5.6 Cancellation of Contract / Suspension of Work :

A). Cancellation of Contract

5.6.1 The Owner shall be entitled, at any time, to cancel / rescind the Contract, if in the
opinion of the Owner, the cessation of the work becomes necessary owing to any cause
whatsoever, and a notice in writing from the Owner to the Contractor of such
cancellation / rescission and the reason(s) therefor shall be conclusive proof of such
cancellation / rescission and the reasons thereof.

5.6.2 Upon such cancellation / rescission the Contractor shall be entitled to be paid for the
work actually performed by the Contractor on finalisation of all dues and the Owner shall
also take over from the Contractor the approved materials lying at job site on the date of
such cancellation at the rates for such material(s) as specified in relative item(s) of the
Schedule of Rates, and if the rate(s) for any material(s) be not (in the opinion of the
Engineer-in-charge shall be final) specified in the Schedule of Rates, then at the

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market rate(s) for such material(s) current on the date of the cancellation
/ recission. The decision of the Engineer-in-charge as to the approved materials lying
at site on the date of cancellation / rescission and the quantities and market rate(s)
thereof shall be final and binding upon the Contractor.

5.6.3 Notwithstanding that such cancellation / rescission may result in the performance of
quantities of work below the quantities indicated in the form of Schedule of Rates and / or
of a value below the total Contract Value indicated in the Letter of Acceptance, the
Contractor shall not be entitled to any compensation consequent to the cancellation /
rescission except to the extent provided in Clause 5.6.4. The contractor shall only be
entitled to payment for the work actually performed by the Contractor until cancellation /
rescission, calculated on the basis of the Schedule of Rates.

5.6.4 If as a consequence of such cancellation, the amount payable for the Contractor‟s
material taken over by the Owner and for the work actually performed by the Contractor on
finalisation of all dues under the Contract, in the aggregate be less than 75% (Seventy
Five Percent) of the total Contract Value as specified in the Letter of Acceptance for
the purpose of Security Deposit, then the Contractor shall be entitled by way of allowance
for the advantage (including profit) which the Contractor may have anticipated on
execution of the complete work, upto 10% (Ten Percent) of the difference between the
aggregate aforesaid and 75% (Seventy Five Percent) of the total Contract Value specified
in the Letter of Acceptance, as may be determined by the Owner but in addition thereto
the Contractor shall not be entitled to any compensation or expenses or damages or loss of
profit whatsoever consequent upon the cancellation.

B). Suspension of Work :

5.6.5 The Engineer-in-charge may at any time(s) at his discretion should he consider that the
circumstances so warrant (the decision of the Engineer-in-charge as to the existence of
circumstances warranting such suspension shall be final and binding upon the
Contractor), by notice in writing to the Contractor temporarily suspend the work or any
part thereof for such period(s) as the Engineer-in-charge shall deem fit, and the
Contractor shall, upon receipt of the notice of suspension, suspend the work(s) or such
part thereof as shall have been suspended, forthwith or from the date / time specified
in the said notice. The suspension shall continue until receipt of a written order from the
Engineer-in-charge to resume the work suspended.

5.6.6 The Contractor shall not be entitled to claim compensation for any loss or damage
sustained by the Contractor by virtue of any suspension as aforesaid notwithstanding that
consequent upon such suspension the machinery, equipment and labour of the
Contractor or any part thereof shall be or become or be rendered idle and
notwithstanding that the Contractor shall be liable to pay salary, wages or hire charges or
bear other charges and expenses thereof.

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5.6.7 Except where the suspension is by reason of default or failure on the part of the
Contractor (and the reasons for suspension stated by the Engineer-in-charge in any
notice of suspension as aforesaid inclusive as to the existence of a default or failure on
the part of the Contractor if so stated in the notice shall be final and binding upon the
Contractor), in other cases, if in the opinion of the Contractor the suspension of the work
or any part thereof in terms of this Clause 5.6 necessitate any extension in the time of
completion, the provision of Clause 7.4.4 hereof in respect of extension of time shall apply.

5.6.8 In the event of a suspension in terms of this Clause being total affecting the entire
works remaining in operation and such suspension continuing for not less than of 4
(four) consecutive months, the Contractor shall have the option to terminate the Contract by
giving written notice thereof to the Owner. Unless the suspension be by virtue of default
or failure on the part of the Contractor as specified in Clause 5.6.7 hereof, such termination
shall be deemed to operate as cancellation of the Contract within provisions of Clause 5.6
hereof and the provisions of Clauses 5.6.2, 5.6.3 and 5.6.4 shall apply relative thereto.

5.6.9 Where the Contractor terminates the contract in terms of Clause 5.6.8, the Contractor
shall be entitled only to payment for the work done in accordance with the terms of the
Contract by application of the Schedule of Rates to the measured quantities and shall not
be entitled to any damages, compensation, loss of profit or other payment
whatsoever in addition.

5.7 Notwithstanding anything provided in Clause 5.6 and upon cancellation of the Contract
under the provisions of Clause 5.6.1 hereof, or termination of the Contract under the
provisions of Clause 5.6.8 hereof, the provisions of Clauses 11.2.1 to 11.2.5 hereof
upon termination of Contract shall apply.

**********

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SECTION – 6

MATERIALS AND FACILITIES

6.1 Contractor’s responsibility :

6.1.1 The Contractor shall be responsible to provide necessary material, labour, equipment,
machinery and facilities and all other items and things whatsoever required for and in
connection with the scope of the Work, for the satisfactory performance of the contract.

6.2 Materials to be supplied by the Contractor :

6.2.1 Materials supplied by the Contractor shall conform to the specifications contained in the
Contract Documents and shall be suitable for the purpose for which they are required.

6.2.2 Unless otherwise specified by the Owner, all materials supplied by the Contractor shall bear
the ISI stamp and / or shall be procured from reputed manufacturers or suppliers listed
with the DGS & D. If, in respect of any materials, including but not limited to sand,
stone, aggregate, etc., neither ISI marking / approved nor DGS&D listed supplies are
available, such materials shall be obtained from source(s) / supplier(s) /
manufacturer(s) approved by the Engineer-in-charge; provided that, in no case, shall
the Contractor be relieved of his full responsibility in respect of the suitability and quality of
the material, or for any defects therein, or for their use in any works or constructions
relative to which the same has been utilised.

6.2.3 The Contractor shall, at his expense, analyse, test, prove and weigh all those materials
which the Engineer-in-Charge has required in writing to be analysed, tested, proved or
weighed, in the manner, at such time and location as is required by the Contract
Documents or the Engineer-in-Charge. The Contractor shall provide necessary skilled
manpower, materials and things required by the Engineer-in-Charge for testing, for
preparation of samples, measuring the work or any part thereof, providing and weighing
materials in such manner as the Engineer-in-Charge, shall direct.

6.3 Materials issued by the Owner :

6.3.1 Save to the extent expressly provided herein or in the Contract, the Owner has no
responsibility to provide any material(s) and / or service(s) with respect to the
satisfactory performance of the contract.

6.3.2 If the specification of the work provides for the use of materials of special description to
be supplied from the Owner‟s stores, or if it is required that the Contractor shall use only
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certain stores to be provided by the Engineer-in-Charge, such materials and stores and price
to be charged therefor as hereinafter mentioned being so far as practicable for proper
and timely performance of the Contract but not so as in any way to control the meaning
or effect of this Contract specified in the Schedule hereto annexed, the Contractor shall
be bound to purchase and shall be supplied such materials and stores as are from time to
time required to be used by him for the purpose of the Contract only.

6.3.3 The sums due from the Contractor for the value of materials supplied by the Owner will be
recovered from the running account bill on the basis of actual consumption of materials
in the work covered and for which the on-account-bill has been prepared. After the
completion of works, however, the Contractor has to account for the full quantity of materials
supplied to him as per relevant clauses in the contract . The value of stores materials
as may be supplied to the Contractor by the Owner will be debited to the Contractor in the
account at the rates shown in the Schedule of Materials and if no such rates are shown in
the said Schedule, they will be debited at cost price, which for the purpose of the Contract
shall include the cost of carriage and all other expenses whatsoever such as normal
storage and supervision charges which shall have been incurred in obtaining the same
at the owner‟s stores.

6.3.4 All materials so supplied to Contractor shall remain the absolute property of the Owner, and
shall not be removed from the site of the work except for and in the course of the
performance of the contract. Such material(s) shall be at all times open to inspection by
the Engineer-in-Charge, until utilization in the performance of the contract. Any such
materials remaining unused at the time of the completion or termination of the Contract,
howsoever caused, shall be returned to, the Owner‟s stores or at such place as is
directed by the Engineer-in-Charge, in perfectly good condition.

6.3.5 Materials specified in the Contract Documents as „to be issued‟ by the Owner will be
supplied to the Contractor by the Owner from its stores. It shall be the responsibility of
the Contractor to take delivery of the materials and arrange for its loading, transport
and unloading at the site of work at his own cost. The materials shall be issued between the
working hours and as per rules of the Owner as framed from time to time.
6.3.6 The Contractor shall bear all incidental charges for storage and safe custody of materials at
site after these have been issued to him.

6.3.7 Materials specified in the Contract Documents as „to be issued‟ by the Owner shall be
issued in standard sizes / lots, as obtained from the manufacturers or the serviceable
materials in assorted sizes as follows:

i) all pipings / tubes and structural of 2 meter and above length

ii) all plates of 2 square meter and above

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6.3.8 The Contractor shall construct suitable godowns at the site of work for storing the
materials against damage by rain dampness, fire, theft etc. He shall also employ
necessary watch and ward establishment for the purpose.

6.3.9 It shall be duty of the Contractor to inspect the materials issued to him at the time of
taking delivery and satisfy himself that they are in good condition. After the materials
have been delivered by the Owner it shall be the responsibility of the Contractor to keep
them in good condition and if the materials are damaged or lost, at any time, they shall
be repaired and / or replaced by him at his own cost according to the directions of the
Engineer-in-Charge.

6.3.10 It shall be the responsibility of the Contractor to arrange in time all materials required for the
works other than those to be supplied by the Owner as per schedule of Materials; if, however, in
the opinion of the Engineer-in-Charge the execution of the work is likely to be delayed due to
the Contractor‟s inability to make arrangements for supply of materials which normally he has to
arrange for, Engineer-in-Charge shall have the right at his own discretion to issue such
materials if available with the Owner and the Contractor will be bound to take such materials
at the rates decided by the Engineer-in-Charge. This, however, does not in any way absolve
the Contractor of responsibility of making arrangements for the supply of such materials in
part, or in full, should such a situation occur nor shall this constitute a reason for the delay
in the execution of the work.

6.3.11 None of the materials supplied to the Contractor will be utilised by the Contractor for
manufacturing items which are required to be obtained under the Contract as supplies
from standard manufacturer in finished form.

6.3.12 The Contractor shall, if decided by the Engineer-in-Charge, be required to execute an

indemnity bond in the prescribed form, for safe custody and accounting of all materials
issued by the Owner.

6.3.13 The Contractor shall furnish to the Engineer-in-Charge sufficiently in advance a statement
showing his requirement of the quantities of the materials to be supplied by the Owner
and the time when the same will be required by him for the works, so as to enable the
Engineer-in-Charge to verify the quantities of materials and arrange for such materials.

6.3.14 A day-to-day account of the materials received from the Owner shall be maintained by the
Contractor indicating the daily receipt, consumption and balance in hand. Such account
shall be maintained in a manner prescribed by the Engineer-in-Charge along with all
connected papers, and it shall be always available for inspection in the Contractor‟s
Office at site.

6.3.15 The Contractor should ensure that only the required quantities of materials are
demanded for issue by the Owner. The Contractor shall not be entitled to cartage and

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incidental charges for returning the surplus / unused materials, if any, to the Owner‟s
store wherefrom they were issued or to the place as directed by the Engineer-in-Charge.

6.4 Material procured with assistance of Owner :

Notwithstanding anything contained to the contrary in any or all the clauses of this
Contract, where any materials for the execution on the contract are procured with the
assistance of the Owner either by issue from Owner‟s stock or purchases made under
orders or permits or licenses issued by Government, the Contractor shall hold the said
materials as trustee for the Owner and use such materials economically and solely for the
purpose of the Contract and not dispose them of without the prior permission of the
Owner. The Contractor shall be liable to return to the Owner, if so required by the
Engineer-in-Charge, all surplus or unused materials that may be left with the Contractor on
completion of the Contract or at its termination for any reason whatsoever. In such event
the Contractor shall be entitled to be paid or credited such price as the Engineer- in-Charge
shall determine, for the material(s) so returned, having due regard to the condition of
the materials. The price due to the Contractor on this account, however, shall not
exceed the amount originally charged to the Contractor excluding storage charges if
any. The decision of the Engineer-in-Charge in this regard shall be final and conclusive in
such matters.

6.5 Location of site and Accessibility :

6.5.1 The Contractor shall, at his expense and as necessary for the proper performance of the
Work, construct or secure access roads to the actual site of Work. The Contractor shall be
required to permit the use of the roads so constructed by him for use by the vehicles of
any other parties, including the Owner, who may be engaged in lawful activity at the
Refinery site. The Contractor shall cooperate and not hinder, the construction of
permanent roads, should the construction thereof start while he is engaged on this
work. He shall make due allowance in the tender for any inconvenience he may
anticipate on such accounts.

6.5.2 Non-availability of access roads and Railway siding for use of / by the Contractor shall in
no case be treated as valid justification for any delay in the execution of works or be the
cause of any claim for compensation against the Owner.

6.5.3 Entry into the refinery area is restricted. Only pass and permit holders as also vehicles
with special permits are permitted within the boundary of the refinery. Inside the
premises, access to various job sites is further regulated by permits issued for each
area. The Contractor shall be responsible to apply for and secure in time, necessary pass
/ permits for facilitating entry of their men, materials and vehicles.

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6.6 Water Supply :

6.6.1 Water for Construction Purpose : The Owner undertakes to provide water to the
Contractor at the Owner‟s source of supply, free of cost, provided the Contractor
arranges to install a water meter, distribution pipe networks from the source of supply
and such distribution pipe network shall have the prior approval of the Engineer-in-
charge, so as not to interfere with the layout and progress of normal operation and
other construction works.

6.6.2 Water for Drinking Purpose : Owner at their discretion may endeavour to provide drinking
water to the Contractor at the Owner‟s source of supply, at one point, free of cost,
provided the Contractor makes his own arrangement for the water meter, distribution
pipe networks from the source of supply and such distribution pipe network shall have the
prior approval of the Engineer-in-charge, so as not to interfere with the layout and
progress of normal operation and other construction works. However, the Owner does not
guarantee the supply of water and this does not relieve the Contractor of his
responsibility in making his own arrangement and for the timely completion of the various
works stipulated.

6.7 Power Supply :

The Owner shall provide power connection to the Contractor at the Owner‟s source of
supply, free of cost, provided the Contractor makes his own arrangement for the energy
meter and distribution from the source of supply. All the works by the Contractor in this
regard will be carried out in accordance with applicable laws and as approved by the
Engineer-in-charge, so as not to interfere with the layout and progress of normal
operation and other construction works.

6.8 Land for Contractor’s Field Office, Godown and Workshop :

6.8.1 The Owner may, subject to availability and other considerations, may permit construction of
Contractor‟s field office, godowns, workshops and assembly yard required for the
prompt execution of the Contract in Owner‟s lands. Such permission shall remain valid
only till completion of the work or till termination of the contract howsoever caused,
whichever happens earlier. The Contractor shall at his own cost construct all temporary
buildings and provide suitable water supply and sanitary arrangement approved by the
Engineer-in-charge.

6.8.2 All temporary buildings, sheds, etc., shall be constructed in conformation with the safety
and security regulations of the Owner as regards location and type of structures.

6.8.3 On completion of the Work or prior termination of the contract howsoever caused,
whichever is earlier, the Contractor shall remove all structures, temporary works etc.,
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erected / installed by him and restore the site in the original condition or have it cleared as
directed by Engineer-in-charge. If the Contractor fails or omits to comply with these
requirements, the Engineer-in-charge may at the expense of the Contractor remove, the
left-over materials and dispose of the same as he deems fit and get the site cleared as
aforesaid and the Contractor shall forthwith pay the amount of all expenses so incurred
and shall have no claim in respect of any such left-over material disposed of as aforesaid.
But the Owner reserves the right to ask the Contractor any time during the pendency of
the Contract to vacate the land by giving 7 days notice on security reasons or in
national interest.

6.9 Land for Residential Accommodation :

The Owner shall not be liable or be required to provide land for construction of residential
accommodation for staff and / or labour of the Contractor, or to provide living quarters for
the Contractor‟s personnel.

*********

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SECTION 7

PERFORMANCE OF WORKS

7.1 General :

7.1.1 All works shall be performed and executed by the Contractor in strict conformity with
the Contract Documents as applicable to the particular work(s) and any relative
instruction as may be issued to the Contractor in this regard by the Engineer-in-Charge
from time to time.

7.1.2 The Engineer-in-Charge, on his own or on being moved by the Contractor, shall be
entitled from time to time or at any time at his discretion to issue written orders or
instructions to the Contractor, by way of clarification or amplification of the terms of the
Contract, and relative to the performance of the Contract by the Contractor or otherwise
relative to any matter touching or affecting the Contract or arising therefrom, and to
revise or revoke any orders or instructions previously issued in this regard and such
orders and instructions shall be binding on both the parties.

7.1.3 If in the opinion of the Contractor, compliance with any order or instruction issued by
the Engineer-in-Charge in terms of Clause 7.1.2 would involve violation of any
previously issued order or instruction or any terms of the Contract, the Contractor shall
forthwith refer the matter in writing to the Engineer-in-Charge and the decision of the
Engineer-in-Charge on any such matter shall be final and binding upon the Contractor, who
shall thereafter perform the work accordingly without entitlement to any claim against or
compensation from the Owner resultant upon such order, instruction or decision, except
in terms of the contract.

7.1.4 The Contractor shall within 10 (ten) days of receipt of notification of Acceptance of
Tender, designate in writing with respect to each job site at which the Contractor shall be
awarded any work under the Contract, an engineer by name, responsible for the work
at that site on behalf of the Contractor. The engineer of the Contractor so
designated shall be treated as the representative of the Contractor at that site for all
purposes and with full authority to act on behalf of the Contractor. The designated
engineer shall not be changed or replaced except by prior notification in writing to the
Engineer-in-Charge. The Engineers / Supervisors appointed by the Contractor or his Sub-
Contractors / other agencies, for the work shall be duly and adequately qualified with
relevant experience to handle the work of the contract to the satisfaction of the
Engineer-in-Charge.

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7.1.5 The Contractor shall establish, a Site Office at each job site within 10 (ten) days of
receipt of notification of Acceptance of Tender and maintain the same till completion of
all obligations under the Contract. The Site Office shall in any case remain manned on all
working days of the Owner during the working hours of the Owner.

7.1.6 The Contractor shall co-operate with and afford assistance to the Owner and other
Contractors engaged at the site, as regards access to the work spots and supply of
power and water for the performance of the work entrusted to them and / or for the
carriage and storage of materials by them. If the performance of any work by the
Contractor requires the association, collaboration with any other Contractor(s), the
Contractor shall co-operate with the Owner or such other Contractor(s) / agency(ies)
involved so as to ensure harmonious working between the Contractor and the Owner /
Contractor(s) / agency(ies) involved, and the Contractor shall comply with any
instructions issued by the Engineer-in-Charge in this regard.

7.1.7 The Owner shall be entitled, at its discretion, to appoint one or more engineers and / or
other personnel at or about each job site on behalf of the Owner to do such acts,
deeds, matters and things as may be necessary to safeguard the Owner‟s interest
including (but not limited to, at the discretion of the Owner), supervision and testing of
the work(s) being conducted by the Contractor at the job site and for rendering of such
assistance to the Contractor relative thereto as the Owner or such engineer(s) or
personnel shall or may deem fit; it being understood, however, that the presence of,
any engineer(s) or personnel of the Owner at or about each job site or any supervision,
inspection or test performed or conducted by any such engineer(s) or personnel of the
Owner in respect of any work (s) or any other assistance rendered by such engineer(s) and
/ or personnel of the Contractor relative thereto, shall be without any attendant
obligation or liability of the Owner vis-a-vis the Contractor, nor shall it relieve or dilute
the obligations of the Contractor under the Contract.

7.1.8 The Contractor shall, before commencing work, bring to the notice of the Engineer-in-
Charge in writing any defects existing in any prior works, upon which or in continuation of
which the Contractor is required to execute the contracted Work.

7.2 Job Site :

7.2.1 The Owner shall furnish the Contractor with only four corners of the job site and a level
bench mark, and the Contractor shall at his own cost and initiative to set out the work
accurately and shall be solely responsible for the accuracy of such
setting-up notwithstanding any assistance rendered by the Engineer-in-charge.

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7.2.2 The Contractor shall provide, fix and be responsible for the maintenance of all stakes,
templates, level marks, profiles and the like and shall ensure that they are in the
respective position(s) till completion of the Work. The Contractor shall also be
responsible for the maintenance of all survey marks, boundary marks, distance marks and
center line marks, whether existing or supplied / fixed by the Contractor.

7.2.3 Before commencing the work the Contractor shall at his own cost and arrangement,
provide the necessary reference and level posts, pegs, bamboos, flags, ranging rods,
strings and other materials for proper layout of the work in accordance with scheme for
bench marks acceptable to the Site Engineer. The centre, longitudinal or face line and
cross line shall be marked by means of small masonry pillars. Each pillar shall have a
distinct mark at the centre to enable a theodolite to be set over it. No civil work shall be
started until all these co-ordinates are approved by the Site Engineer in writing in all cases,
wherever required under the terms of the contract. The Contractor shall be responsible in
respect of adequacy or accuracy of the co-ordinates. The Contractor shall also provide
all labour, material and other facilities necessary for the proper checking of layout and
inspection of the points during construction.

7.2.4 Pillars bearing geodetic marks located at the sites of works under construction, should be
protected and fenced by the Contractor.

7.2.5 On completion of works the Contractor must submit to the Engineer-in-Charge the
geodetic documents according to which the work was carried out.

7.2.6 The Contractor shall be solely responsible for the provision of and the maintenance of the
horizontal and vertical alignment(s), level and for the correctness of every part of the
work in accordance therewith. The Contractor shall, at his own cost, rectify any error or
deviation in this regard.

7.3 Conditions of Work :

7.3.1 Ordinarily Work shall be carried on for a minimum of 48 (forty eight) hours a week at
the rate of 8 (eight) hours per working day. When necessary the Contractor shall work
overtime or in two or more shifts in a day so as to accomplish the Work within the
stipulated time. However the Contractor shall not be entitled to any extra compensation or
remuneration for overtime or double or triple shift working, nor shall the Owner be
responsible for any idle time payments to the Contractor‟s staff or for labour, equipment or
machinery, howsoever occasioned.

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7.3.2 Should it become necessary to work on Sunday and / or holiday so as to accomplish the
Work within the stipulated time, the Contractor shall so work without extra
compensation. In the event of work proposed to be carried out by the Contractor‟s
personnel at any time on a non-working day of the Owner, the Contractor shall inform the
Engineer-in-charge of such plan at least 2(two) days in advance.

7.3.3 The execution of the work(s) shall ordinarily entail working during rain or the monsoon
period to the extent necessary, and the Contractor shall maintain at each job site
requisite material, labour, protective equipment and machinery as may be required for the
uninterrupted performance of the work during such period.

7.3.4 The Contractor shall arrange for and bring to each job site such special equipment and
machinery as may be necessary to enable work during the monsoon, and shall, at his own
cost, arrange for de-watering the job sites so as to keep the construction site and areas
to be worked upon, suitable for carrying on the work.

7.3.5 The Contractor shall not be entitled to any compensation or remuneration for or relative to
any work during the monsoon, or for or relative to any and all special arrangements to be
made to enable such working.

7.4 Time for Completion :

7.4.1 Time shall be the essence of the contract even if the contract empowers the Owner to
grant extension of time in certain circumstances. The Contractor shall complete the
entire Work in all respects and in accordance with the terms of the Contract within the
time specified in this behalf in the Time Schedule.

7.4.2 Within 10 (Ten) days from the date of receipt of notification of Acceptance of Tender, the
Contractor shall submit to the Owner for approval, in respect of each job site or groups
of work, if circumstances so require, a detailed provisional Progress Schedule in PERT
chart or other suitable form giving dates of starting and finishing of various operations
and works, providing sufficient margin to cover for contingencies and for final testing
and consequential reparation, etc., if any, required. Within 10 (Ten) days of submission of
the provisional Progress Schedule, the Engineer-in-charge in consultation with the
Contractor shall finalise the Progress Schedule. The Progress Schedule so finalised shall
be the Approved Progress Schedule and shall form part of the Contract terms with
attendant obligation upon Contractor to commence the various works / operations
involved on or before the date(s) mentioned in such Approved Progress Schedule and
to conclude the said work(s) / operation(s) on or before date mentioned in this behalf in
the Approved Progress Schedule, and default by Contractor to commence or complete any
work or operation within prescribed date(s), shall constitute breach of contract terms by
the Contractor.

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7.4.3 If the Contractor fails to submit to Owner a provisional Progress Schedule as envisaged in
Clause 7.4.2 it shall be permissible to the Engineer-in-Charge to prepare and issue a
Progress Schedule in PERT chart or other suitable form and such Progress
Schedule shall be treated as the Approved Progress Schedule for the purposes of the
Contract.

7.4.4 After receipt of notification of Acceptance of Tender, if any event or circumstance arises
whereby the Contractor considers himself justified to seek postponement of the
commencement of the Work, and / or to an extension of time for completion of the
Work, the Contractor shall forthwith make a full report in writing of such event or
circumstance to the Engineer-in-charge and as soon thereafter as possible the
Contractor shall submit a written request to the Engineer-in-Charge for the
postponement of the commencement of the Work or extension of time for completion of
the Work. Such written request shall contain full justification for the request and the
period of postponement / extension sought with respect to the Approved Progress
Schedule. On consideration of such request, the Engineer-in-Charge shall, within
reasonable period and by a written order, reject or grant the request in full or in part, as
considered appropriate. It shall not be necessary for the Engineer-in-Charge to hear the
Contractor before deciding the matter nor shall it be necessary for the Engineer-in- Charge
to give reasons for the decision. The decision of the Engineer-in-Charge in this regard
shall be final and binding upon the Contractor. Unless and until a written decision to
such effect has been issued by the Engineer-in-Charge in this regard, the Contractor shall
not be entitled to assume that the request for postponement and / or extension has been
granted or agreed to by the Owner.

7.4.5 The power under Clause 7.4.4 shall be without prejudice to the power and right of the
Owner, to permit / direct or grant, if considered necessary and appropriate, the
postponement of the commencement of the Work, and / or an extension of time for
completion of the Work.

7.4.6 Subject as elsewhere herein or in the Contract Documents expressly provided, only the
existence of force majeure circumstances as defined in Clause 7.8 hereof shall afford
the Contractor a ground for extension of time for completion of the work or any part of
the work or any operation(s) involved therein, and specifically without prejudice to the
generality aforegoing, inclement or unforeseen weather, strike, shut-down, third party
breach, delay in payment or commercial hardship shall not afford Contractor a ground
for extension of time or relieve the Contractor of his full obligations under the Contract,
nor will any shut-down or idle time charges be payable by Owner to Contractor for any delay
in the commencement, progress or completion of the work due to any reason
whatsoever, inclusive due to the existence of force majeure circumstances.

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7.4.7 Notwithstanding other provisions contained herein, the postponement of the

commencement of the Work, and / or an extension of time for completion of the Work
shall be operative and binding, if and only if, the Owner or on his behalf the Engineer- in-
charge, has issued a written communication to such effect addressed to the
Contractor specifying the period of postponement or extension. Any change or
modification to the Approved Progress Schedule shall not have effect unless it is made
pursuant to and in conformity with the written communication authorising the
postponement of the commencement of the Work, and / or an extension of time for
completion of the Work issued by the Owner / Engineer-in-charge.

7.4.8 Time shall be the essence of the Contract. If there is delay in the final completion of the
Work, or the work at any job site or in specific works in respect of which a separate
Progress Schedule has been established, beyond the date stipulated in the Progress
Schedule for the completion of such Work or works as case may be, or if the Contractor
repudiates the Contract before such stipulated date, the Owner shall (without prejudice to
any other right of Owner in this behalf) be entitled to recover from the Contractor as
agreed liquidated damages and not by way of penalty, a sum equivalent to 1/ %(one-
half percent) of the total Contract Value per week or part thereof of such delay, limited
2 to
a maximum of 10% (Ten percent) of the total Contract Value, as constituting a genuine pre-
estimate of damages duly agreed by the Parties. Liquidated damages for delay, to the
extent due, may be recovered by the Owner, from the sums payable to the Contractor
„on account‟ or from running bills and the provisions herein shall constitute notice to the
Contractor of the Owner‟s intention to claim compensation for the non- completion of
the Work or works, as the case may be, within the stipulated time.

7.4.9 The levy of liquidated damages in terms of the preceding sub-clause shall be in addition to
any and all other remedies and levies provided elsewhere in this GCC or in the
respective contract agreement.

7.5 Reports and Records :

7.5.1 The Contractor shall, maintain at his expense, in addition to any records or registers
required to be maintained by the Contractor under any law, rule or regulation having the
force of law, such records and registers and at such place(s) as the Engineer-in- Charge
by written direction requires the Contractor to do.

7.5.2 In addition to any other records or registers to be maintained by the Contractor from
time to time and / or reports required to be furnished by the Contractor, the Contractor
shall daily or otherwise as may be prescribed by Engineer-in-Charge, submit to the
Engineer-in-charge a Progress Report of all work done and / or progress achieved by the
Contractor at each job site within the preceding day or the period of last report, as the
case may be.

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7.5.3 The submission of such report to the Engineer-in-charge shall be without prejudice to the
full rights and remedies of Owner and obligations / liabilities of Contractor under the
Contract, and shall not anywise operate as an estoppel against Owner by reason only of
the fact that no notice or objection was taken of any information contained in any such
report; nor shall any statement in any such report be deemed to be correct merely by
virtue of the existence of such statement, and it being uncontroverted by the Owner.

7.5.4 The Contractor shall maintain at each job site a Site Order / Site Instructions Book in
which all orders and instructions received from the Owner / Engineer-in-Charge / Site
Engineer, whether in writing or verbally, shall be entered and authenticated by the Owner/
Engineer-in-Charge / Site Engineer. The Contractor or his authorised representative shall
signify in the appropriate column of the Site Order / Site Instructions Book,
acknowledgement of every entry on the same day, failing which as soon as practicable. This
book shall be kept available for inspection by the Officers of the Owner.

7.6 Execution of Work :

7.6.1 The Contractor shall provide sufficient labour, staff (qualified and unqualified), machinery,
tools and equipment, material and things whatsoever necessary for the proper
performance of the work and to ensure the rate of progress as envisaged in the Progress
Schedule.

7.6.2 If it comes to the notice of the Engineer-in-Charge that the work(s) / operation(s) at
any job site or as a whole is / are not meeting the progress necessary to achieve the
relative date of completion in the Progress Schedule, the Engineer-in-Charge shall have
the power to advise the Contractor to employ / provide additional labour, staff,
machinery, tools, equipment or material so as to achieve the required progress.
Provided that nothing herein shall be construed as casting any duty on the Owner to so
advise nor shall it in any manner dilute the contractual obligations of the Contractor.

7.6.3 Should Contractor fail to comply with such instruction(s) or fail to comply therewith to
the satisfaction of the Engineer-in-Charge (the opinion of either of whom in this behalf
shall be final and binding upon the Contractor) the Engineer-in-Charge may, at his
discretion, at the risk and cost of Contractor appoint, procure or provide the additional
labour / staff / machinery / tools / material, etc., as the Engineer-in-Charge (the decision of
either of whom in this behalf shall be final and binding upon the Contractors),
considers necessary to achieve the necessary progress in relation to any particular work
/ operation or the work as a whole or may appoint sub-contractor(s) for the
performance of any particular work or operation. In so doing, Engineer-in-Charge shall

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be deemed to be acting for and on behalf of and as agent of the Contractor and all such
appointments, procurement / provision shall be deemed to have been made by the
Contractor and shall be paid for by the Contractor. In addition to the other amounts
payable to Owner under Section 6 hereof in respect of any labour / staff / machinery /
material, etc., as aforesaid procured or provided by the Owner, the Owner shall be
entitled in this event to 15% (fifteen percent) as supervision charges on the total amount
due as computed under Section 6 hereof.

7.6.4 Should the Engineer-in-Charge at any stage (notwithstanding that the time for
completion of the relative work or item of work as specified in the Progress Schedule has
not expired) be of opinion (the opinion of the Engineer-in-Charge in this behalf being
final) that the performance of any work or item of work by the Contractor is
unsatisfactory (whether in the rate of progress, the manner, quality or workmanship of
the performance, or in the adherence to specifications, or in the omission, neglect or
failure to do, perform, complete or finish any work or items, or for any other cause
whatsoever), the Engineer-in-Charge shall be entitled (without prejudice to any other
rights of the Owner and / or obligations of the Contractor under the Contract) at his
discretion and the risk and cost of the Contractor either to appoint, procure and / or
provide such labour / staff / machinery / tools / materials, etc., as the Engineer-in-
Charge (the decision of either of whom shall be final and binding upon the Contractor)
considers necessary to achieve satisfaction in relation to the particular work, operation or
item of work, or the work as a whole, as the case may be, or to appoint one or more sub-
contractors for the satisfactory performance thereof or any part thereof, or may
undertake the performance thereof or any part thereof departmentally, and the provisions of
Clause 7.6.3 hereof shall mutatis mutandis apply to any action taken by the Engineer- in-
Charge pursuant to this clause in the same manner as applicable to an action taken under
the said clause.

7.7 Sub-Contracts :

7.7.1 The Contractor shall not assign, sub-contract or sublet the whole or any part of the
work except with previous written consent of Engineer-in-Charge, and to such extent and
subject to such conditions as may be imposed by the Engineer-in-Charge; provided that
grant of such consent by the Owner shall not in any manner dilute the contractual
obligations of the Contractor. Provided further that it shall be permissible for the Owner to
withdraw or modify the consent once granted with respect to any sub-contractor, on
grounds of unsatisfactory service or other valid reasons.

7.7.2 Subject as hereinabove in this behalf specifically permitted and provided, the Contractor
shall not sub-contract any work under the Contract.

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7.7.3 The Contractor shall, before the fourth of every month, furnish to the Engineer-in-Charge a
list of all Sub-Contractors engaged in work at the site during the previous month, with
particulars of the nature of the work performed by them.

7.8 Force Majeure :

7.8.1 Definition

“Force Majeure” means any act, circumstance or event or a combination of acts,

circumstances and events which wholly or partially prevents or delays the performance of
obligations arising under this Agreement if such act, circumstance or event is not
reasonably within the control of and not caused by the fault or negligence of the non-
performing Party, and provided that such act, circumstance or event is in one or more of
the following categories:

(a) Flood, drought, lightning, cyclone, earthquake or geological disturbances,

eruption of gases and such like natural occurrences.

(b) Major explosion, fire and contamination of atmosphere by radio active or

hazardous substances.

(c) Civil disturbance including riot, terrorism, rebellion, sabotage and communal
clashes.

(d) Acts of God or the public enemy.

(e) Any law, ordinance or order of the Central or State Government, or any direction
of a statutory regulatory authority that restricts performance of the obligations
hereunder.

Any of the above acts, circumstances or events that affect any of Owner‟s or Contractor‟s
subcontractors under this Agreement shall be deemed a Force Majeure event of the
Owner or Contractor, as the case may be.

Provided that a Force Majeure act, circumstance or event shall not include economic
hardship, equipment failure or breakdown other than as specifically set forth above.

7.8.2 Burden of Proof

In the event the Parties are unable to agree in good faith that a Force Majeure act,
circumstance or event has occurred, the Parties shall resolve the dispute in accordance
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with the provisions of this Agreement. The burden of proof as to whether a Force
Majeure act, circumstance or event has occurred shall be upon the Party claiming the
occurrence or existence of such Force Majeure act, circumstance or event.

7.8.3 Effect of Force Majeure

If either Party is rendered wholly or partially unable to perform its obligations under this
Agreement because of a Force Majeure act, circumstance or event, that Party shall be
excused from whatever performance is affected by the Force Majeure act, circumstance or
event to the extent so affected, provided that

(a) Within five (5) Business Days after the occurrence of the inability to perform due to
a Force Majeure act, circumstance or event, the non-performing Party provides a
written notice to the other Party of the particulars of the occurrence, including an
estimation of its expected duration and probable impact on the performance of its
obligations hereunder, and continues to furnish periodic reports with respect
thereto, every 7 days, during the period of Force Majeure;

(b) the non-performing Party shall use all reasonable efforts to continue to perform its
obligations hereunder and to correct or cure as soon as possible the act,
circumstance or event constituting the Force Majeure;

(c) The suspension of performance shall be of no greater scope and no longer duration than
is reasonably necessitated by the Force Majeure act, circumstance or event;

(d) The non-performing Party shall provide the other Party with prompt notice of the
cessation of the Force Majeure act, circumstance or event giving rise to the excuse
from performance and shall thereupon resume normal performance of obligations
under this Agreement with utmost promptitude;

(e) The non-performance of any obligation of either Party that was required to be
performed prior to the occurrence of a Force Majeure act, circumstance or event
shall not be excused as a result of such subsequent Force Majeure act,
circumstance or event;

(f) The occurrence of a Force Majeure act, circumstance or event shall not relieve
either Party from its obligations to make any payment hereunder for performance
rendered prior to the occurrence of Force Majeure or for partial performance
hereunder during periods of Force Majeure;

(g) The Force Majeure act, circumstance or event shall not relieve either Party from its
obligation to comply with Applicable Laws;

(h) The non-performing Party shall exercise all reasonable efforts, at their own expense, to
mitigate or limit damages to the other Party.
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SECTION 8

INSPECTION AND TESTING

8.1 Inspection and Testing of Materials :

8.1.1. The Owner shall be entitled at all times at the risk of Contractor to inspect and / or test by
itself or through an independent person(s) / agency(ies) appointed by the Owner and / or to
direct the Contractor to inspect and / or test all materials, items and components
whatsoever supplied or proposed for supply for incorporation in the works inclusive during the
course of manufacture or fabrication by the Contractor and / or at the Contractor‟s work
or otherwise, of such material, item or component. The inspection and / or tests shall be
conducted at the expense of the Contractor, and if conducted by the Contractor, may be
directed by the Owner to be conducted by agency(ies) nominated by the Owner and / or in
the presence of a witness(es) or agency(ies) nominated by the Owner.

8.1.2 Where the manufacture / fabrication of any material, item or component intended for
incorporation in this work is being done by any person(s) other than the Contractor and
/ or in the premises / workshop (wherever situated) of any person other than the
Contractor, the Contractor shall procure and arrange for the inspection and / or tests
thereof with such other person(s) and shall provide the Owner and / or its agents every
facility and assistance necessary for the inspection and / or tests.

8.1.3 In the event of inspection and / or testing of any material(s) by the Owner, the Contractor or
his authorised representative shall be entitled to be present at the place of such
inspection and / or testing.

8.1.4 The Contractor shall furnish to the Engineer-in-charge for approval when requested or as
required by the specifications in the contract documents, sample(s) of all materials and
finishes intended for incorporation in the works. Such samples shall be submitted before
the work is commenced permitting sufficient time for tests / examination(s) thereof by
the Owner. All materials furnished and finishes incorporated in the work shall conform to
the approved sample(s) in all respect.

8.1.5 The Engineer-in-charge shall be entitled to reject at any time any material, item or
component (including specially manufactured or fabricated items and components) that
are defective or not in accordance with the specifications and which are supplied by the
Contractor for incorporation in the works and upon such rejection the Contractor shall
either perform such work or make necessary improvements thereon as shall be
necessary to bring the material item / component to the requisite standard, or shall, if

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so required by the Engineer-in-charge (whose decision in this behalf shall be final)

replace the rejected material / item / component at his own cost and expense (without
additional remuneration or compensation in respect thereof) with material(s) / item(s) /
component(s) approved by the Engineer-in-charge.

8.2 Inspection and Testing of Works :

8.2.1 The Contractor shall at all times ensure highest standards of workmanship relative to the
work. The Engineer-in-charge shall have power to inspect the work in all respects at any
and all times up to completion of the work as also to test or instruct the Contractor, to test
the works or any structure, material and component thereof at the risks and cost of the
Contractor, either by the Contractor or by any agency(ies) nominated by the Engineer-
in-Charge in this behalf.

8.2.2 The Contractor shall provide all facilities, instruments, material / labour and
accommodation required for testing the works (including checking the setting out of the
work) and shall afford the Engineer-in-charge all assistance necessary to conduct the
tests.

8.2.3 The Contractor shall also provide and keep at all times during the progress of the work and
maintenance period, proper means of access to the works and every part thereof by
means of ladders, gangways, etc., and the necessary personnel / materials to move and
set up the same as directed by the Engineer-in-charge for inspection or
measurement of the works.

8.2.4 On no account shall the Contractor proceed with concreting or other work in foundations and
in superstructure by covering up or otherwise placing beyond reach of inspection or
measurement any work, before due authentication of the corresponding entries in the
Site Inspection Register by the Engineer-in-charge or his authorised representative. Should
the Contractor do so, the same shall be uncovered at Contractor‟s risk and expense for
carrying out the inspection and measurement.

8.2.5 Should the Contractor fail to comply with any of the foregoing provisions relative to
inspection and / or testing of the works, the Engineer-in-charge shall in his absolute
discretion be entitled to remove / dismantle and / or uncover, as the case may be, at
the risk and cost of Contractor for test and examination any structure, material or
component thereof installed, erected or put up by the Contractor and to conduct or
have conducted, the test(s) and / or examination at the risk and cost of the Contractor. In
such event the Contractor shall also bear the risks and costs of replacement,
reinstallation or re-erection of the concerned structure / material / component, as the
case may be.

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8.2.6 Notwithstanding anything provided in the foregoing clauses hereof, the Contractor
shall be and remain liable at his own cost and initiative to conduct all tests at all relevant
times during supply, erection and installation of any works, structure, material or
component as shall be required in terms of the Contract Documents or by the Engineer- in-
Charge. Such tests, wherever required / permissible shall be conducted through
agency(ies) or laboratory(ies) specified or approved by the Engineer-in-Charge in this
behalf.

8.2.7 Should the Engineer-in-charge on inspection or test be not satisfied with the quality or
workmanship of any work, structure, material or component (the decision of the
Engineer-in-charge being final in this behalf), the Contractor shall re-perform, replace, re-
install and / or re-erect, as the case may be, such work, structure, material or
component, and no such rejected work structure, material or item or component shall be
re-used with reference to the work except with the prior permission of the Engineer- in-
charge, and the provisions of Clause 8.2.8 hereof shall apply to default by the
Contractor of the provisions of this clause.

8.2.8 Should the Contractor fail to re-perform, replace, re-install and / or re-erect, as the
case may be, any work, structure, material or component rejected or found defective in
terms of Clause 8.2.7 hereof within such period as the Engineer-in-Charge may specify
by written notice to the Contractor in this behalf, the Contractor shall be deemed to be in
breach of contract within the provision of Clause 11.1.1 hereof with regard to termination
of Contract and associated provisions thereunder and the Owner shall be entitled (without
prejudice to any other right or remedy available to the Owner) upon expiry of the period
specified in said notice, demolish and / or remove the rejected / defective work,
structure, material or component and re-perform, replace, re-install and / or re-erect,
as the case may be, the same by itself or through other agency or Contractor at the
risks and costs of the Contractor in all respects, and recover the costs incurred by the
Owner in this behalf together with a supervision charge of 15 % (fifteen percent) thereon
admissible to the Owner, and the Owner shall be entitled (without prejudice to any other
mode of recovery) to deduct the sums due from the Running Account / Final Bill(s) of
the Contract or any monies becoming due to the Contractor from time to time from the
Owner in any other contract, and the decision of the Engineer- in-Charge as to the costs
incurred by the Owner as aforesaid shall be final and binding upon the Contractor.

8.3 Final Tests and Possession of Works :

8.3.1 As soon as the works have been completed in all respects in terms of the Contract, Final
tests of the works shall be undertaken by the Contractor at the risks and costs of the
Contractor in the presence of the Engineer-in-charge or his authorised
representative. The Owner may at its discretion permit Final Test in respect of particular
part(s) or group(s) of the works or in respect of particular job site(s) involved.

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8.3.2 Upon satisfactory conclusion of the Final Tests, Engineer-in-charge shall prepare a Final
Test Certificate witnessed by the Contractor which shall certify the date(s) on which the
Final Tests in respect of the works have been successfully completed, and where Final
Tests have been conducted piecemeal, shall certify the date on which the Final Test in
respect of concerned part(s) / section(s) / group(s) / job site(s) have been successfully
completed. Notwithstanding that the Final Tests have been conducted in respect of the
entire works, the Owner shall be required to issue a Final test Certificate only in respect of
those particular part, section, group or job site with respect to which the test /
performance is in conformity with the Contract Specifications.

8.3.3 As and from the date of successful completion of Final Tests as mentioned in the Final Test
Certificate, the Owner shall be deemed to have taken over the work(s) / part(s) /
section(s) / group(s) in respect of which the Final Test Certificate has been issued, but
subject to conditions if any stated in such certificate.

8.3.4 If during Final Tests or prior thereto any defect(s) in the design (insofar as the work
involved any designing on the part of the Contractor), or in any work performed, or in
any structure or component installed / erected, or in any installations / erections, or in
any material, or other items incorporated in the works, is / are noticed by Engineer-in-
Charge, the Contractor shall forthwith rectify the defect(s) to the satisfaction of the
Engineer-in-charge and if the defect(s) be discovered during the Final Tests, the
Contractor shall thereafter repeat the Final tests or such of part of it as may be required to
be repeated until successful conclusion of Final Tests without any defect in respect of the
entire works.

8.3.5 Should the Contractor fail to so rectify any defects as aforesaid, the provision of Clause
8.2.8 hereof shall mutatis mutandis apply.

8.3.6 Notwithstanding anything provided in Clause 8.3.3 hereof, the Owner shall be entitled
without prejudice to any other rights of the Owner or liabilities of the Contractor under
the Contract, including the rights of the Owner under Clause 7.4.8 hereof and associated
clauses thereunder and Clause 11.1.1 hereof and associated clauses thereunder:

(a) If by reason of any default on the part of the Contractor a Final Test Certificate has not
been issued in respect of the entire works within 30 (thirty) days after the date fixed
for completion of the entire works at all job sites in the Progress Schedule(s), to take
over and use such portion of works in respect of which Final Test Certificate has not
been issued, with or without affording the Contractor further opportunity for
completing the works for issue of the Final Test Certificate. In such event, a
contractor will be entitled to payment with respect to the portion of work so taken

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over as agreed between the parties but not exceeding the proportionate part of
the contract price.

(b) At any time during the progress of the works, notwithstanding that time for the
completion of the entire works or concerned part, portion or section thereof
according to the Progress Schedule(s) shall not have expired, take over and / or use
for any purpose the incomplete or partially completed work or any part or portion or
section thereof as the case may be, and give the Contractor an opportunity for
completing the work or relative part or portion or section thereof, as the case may
be, within the time for completion permitted thereof under the Progress Schedule
and if in the opinion of the Contractor such taking over and or use shall require an
extension of time for completion, the provision of Clause 7.4.4 hereof and
associated clauses thereunder relating to extension of time shall apply.

Provided always that takeover, possession or use of the works or any part or portion or
section thereof by the Owner within the provisions of sub-clauses (a) and / or (b)
above shall not be deemed to be an acceptance of work or relative part or portion or
section thereof by the Owner or relieve the Contractor of his full obligations in respect
thereof under the Contractor.

8.4 Completion Certificate :

8.4.1 Within 7 (seven) days of issue of Final Test Certificate in respect of the works at any job
site covered by the Contract, the Contractor shall clear the job site of all scaffolding, wiring,
pipes, surplus materials, Contractor‟s labour, equipment and machinery and shall
demolish, dismantle and remove all Contractor‟s site office and quarter and other
temporary works, structures and constructions and other item and things whatsoever
brought upon or erected at the job site or any land allotted to the Contractor by the
Owner and not incorporated in the permanent works and shall remove all rubbish from the
job site and the land allotted to Contractor and shall clear, level and dress the job site
and said land to the satisfaction of the Site Engineer and shall put the Owner in
undisputed custody and possession of the job site and all land allotted by the Owner to the
Contractor, and unless the Contractor shall have fulfilled the provisions of the clause, the
works shall not be deemed to have been completed, and failing compliance by the
Contractor of the provisions of this clause, the provisions of Clause 11.2.4 hereof relating to
Termination of Contract and associated provision thereunder shall apply.

8.4.2 Upon the satisfactory fulfillment by Contractor of the provisions of Clause 8.4.1 thereof, and
upon submission of the following documents, the Contractor shall be entitled to apply to
the Engineer-in-Charge in the prescribed format, for a Completion Certificate in respect
of the entire work or work at any job site:

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(i) The Technical Documents according to which the work was carried out.
(ii) Complete set of working drawings showing therein correction and modifications (if
any) made during the course of execution of the works, signed by the Engineer- in-
Charge.
(iii) Certificate of final levels as set for various works, signed by the Engineer-in-charge. (iv)
Final Test Certificate.
(v) Certificate of Engineer-in-charge of satisfactory fulfillment of the provisions of
Clause 8.4.1 hereof.
(vi) List of Owner supplied surplus material returned to Owner‟s stores, signed by the
Engineer-in-charge
(vii) Materials at site accounting for Owner supplied materials, signed by the Engineer- in-
charge
(viii) List of the scrap materials returned to Store, signed by the Engineer-in-charge
and
(ix) Discharge Certificate in respect of Owner supplied equipment and machinery
signed by the Engineer-in-charge.

8.4.3 If the Engineer-in-Charge is satisfied of the completion of the work relative to which the
Completion Certificate has been sought and of the completeness in all respects of the
Documents specified in Clause 8.4.2 hereof, the Engineer-in-Charge shall within 30
(Thirty) days of the receipt of the application for Completion Certificate, issue a
Completion Certificate in respect of the works for which the Completion Certificate has
been applied. The Completion Certificate shall specify the date of completion of the
Work.

8.4.4 The issue of a Completion Certificate shall be without prejudice to the Owner‟s rights and
Contractor‟s liabilities under the Contract, including the Contractor‟s liability for the
defect liability period under Clause 8.5.1 hereof nor shall the issue of a Completion
Certificate in respect of the works or work at any job site be construed as a waiver of
any right or claim of the Owner against the Contractor in respect of work or the works at
the job site in respect of which the Completion Certificate has been issued.

8.4.5 Up to and until issue of the Completion Certificate as provided for herein above in
respect of the work or the works at any job site, the relative work(s) shall be and remain at
the risks of the Contractor in all respects, including (but not limited to) accident, fire,
lightning, earthquake, flood, storm, tempest, riot, civil commotion
and / or war.

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8.5 Defect Liability Period and Latent Defects :

8.5.1 Unless otherwise specified, the Defect Liability Period for the Work shall be 12 (Twelve)
months from the date specified in the Completion Certificate as the date of completion of
the Work . The Contractor shall at his own cost and initiative, correct, repair and / or
rectify any and all defect(s) and / or imperfections in the design of the work (insofar as
the Contractor shall be concerned with the design of the work or any part thereof) and / or in
the work performed and / or materials, components or other items incorporated
therein as shall arise or be discovered during the said Defect Liability Period. In the
event of the Contractor failing to do so the provisions of Clause 8.2.8 hereof shall apply.

8.5.2 The Defect Liability Period for the Work shall remain extended beyond the initial period of
12 months, in all cases wherein Clause 8.5.1 is attracted, till the defect(s) are repaired /
rectified.

***************

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SECTION 9

MEASUREMENTS AND PAYMENT

9.1 Final Measurements :

9.1.1. Within 15 (fifteen) days from the date of issue of Final Test Certificate in respect of the
Work, or of any portion of the works, section, group or job site, as the case may be,
Final Measurements for the works covered by the Final Test Certificate shall be jointly
taken by the Engineer-in-charge and the Contractor as herein provided.

9.1.2 If the Contractor fails to apply to the Engineer-in-Charge for Final Measurements within
15 (fifteen) days from the date of relative Final Test Certificate as specified in Clause
9.1.1, the Engineer-in-charge shall notify the Contractor in writing of the date(s) for
Final Measurements, and require the Contractor to be present on date(s) so notified.

9.2 Mode of Measurement :

9.2.1 All measurements shall be recorded in the metric system, and shall be taken in
accordance with the procedures set forth or provided for in the Schedule of Rates,
Specifications and other Contract Documents.

9.2.2 Where the mode of measurement is not provided for in the Contract Documents in
respect of any item of work, it shall be measured in accordance with the Indian Standard
Specification No. 1200 (latest edition) and in the event of such item not being covered by
Indian Standard Specifications, it shall be measured in accordance with the method of
measurement in this behalf specified by the Engineer-in-Charge, whose decision in this
regard shall be final and binding upon the Contractor.

9.2.3 All measurements shall be taken jointly by the Engineer-in-charge and the Contractor or
their respective representatives. The Contractor or his authorized representative shall
be entitled to remain present at all times when joint measurements are being taken.

9.2.4 Despite due intimation, if the Contractor omits or fails to be present to witness joint
measurements, the measurements shall be taken in the presence of the Engineer-in-
charge and the measurements so recorded and signified by the Engineer-in-charge as
correct, shall be final and binding upon the Parties.

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9.2.5 Except in cases covered by Clause 9.2.4, in all other cases measurements shall be
signed and dated on each page by the Contractor / Contractor‟s representative and
Engineer-in-charge or his representative. If the Contractor objects to any of the
measurements recorded, including the mode of measurement, such objection shall be
noted in the measurement book against the item objected to and such note shall be dated
and authenticated by the Contractor / Contractor‟s representative and Engineer- in-charge
or his representative. In the absence of any objection noted as aforesaid, the Contractor
shall be deemed to have accepted the relative measurements as entered in the
Measurement Book / Sheets and shall be barred from raising any objection in respect of
any measurements recorded in the Measurement Book.

9.2.6 All objections noted in the Measurement Book in terms of Clause 9.2.5 shall be
considered and decided within 15 days by the Engineer-in-Charge. The decision of the
Engineer-in-Charge relative thereto (whether on the correct measurement to be
adopted or on the mode of measurement to be adopted) shall be final and binding upon
the Parties.

9.2.7 The measurement as finally recorded in terms of Clause 9.2.4 or Clause 9.2.5 or
9.2.6, as applicable, shall be the Final Measurement.

9.3 Final Bill :

9.3.1 On the basis of the Final Measurement the Contractor shall prepare a Final Bill in the
prescribed form with reference to the total work covered by the Contract. Such Bill shall
be drawn up by applying the applicable rate(s) specified in the Schedule of Rates to the
relative measured quantity(ies) and submitted within 30 days from the date of final
measurement or date of final decision as per Clause 9.2.6, whichever is later.

9.3.2 In the event of there being any difference or disputes between the Contractor and the
Owner as to the item(s) of the Schedule of Rates applicable to any particular supply,
work or operation either the Contractor or any representative of the Owner shall refer
the matter to the Engineer-in-Charge and the decision of the Engineer-in-Charge on
such matters shall be final and binding upon the Contractor. If the Engineer-in-Charge
shall be of opinion (which opinion shall be final and binding upon the Contractor) that the
disputed supply work or operation is not covered by any item in the Schedule of Rates,
the Engineer-in-Charge shall determine the applicable rate(s) in respect thereof, according
to the provisions of Clause 5.3.3 hereof, and the rate(s) so determined by the Engineer-
in-Charge shall be final and binding on the contractor.

9.3.3 The Final Bill shall contain all the claims of the Contractor including those in terms of
Clause 9.7.3.

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9.3.4 The Final Bill shall be submitted to the Owner for payment in quadruplicate accompanied by
the Completion Certificate relating to the works covered by the Final Bill.

9.3.5 Monies payable under the Contract shall not become due and payable to the Contractor until
submission to the Owner of the Final Bill prepared in accordance with the provisions of this
Chapter. The Owner shall make payment based on the Final Bill to the extent admitted
by the Owner and subject to any set-off, recoveries, or other adjustments within 90
(ninety) days of the receipt of the Final Bill complete in all respects. Any delay in payment
on undisputed claim / amount beyond 90 days of the receipt of the Final Bill, complete
in all respects, will attract interest @ 0.5% per month. No interest will be paid or payable
on disputed claims.

9.3.6 All payments due to the Contractor on the Final Bill shall be subject to deduction on
account of Security Deposit as provided for in Clause 4.4, 4.5, liquidated damages, if
applicable, any other dues from the contractor to Owner, Income tax as provided for in the
Income Tax Act and other taxes and deductions as provided for under any law, rule or
regulation having the force of law from time to time.

9.4 Schedule of Rates :

9.4.1 Nothing shall be due to the Contractor for or on account of the Work other than in terms of
the provisions of this Chapter.

9.4.2 Without prejudice to the generality of the provisions of Clause 9.4.1 hereof, the Final
Bill prepared based on the Schedule of Rates shall be deemed to include and cover :

(a) All costs, expenses, outgoings and liabilities of every nature and description
whatsoever and all risks whatsoever (foreseen or unforeseen) to be taken or which may
occur in or relative to the execution, completion, testing and / or handing over the
work to the Owner and / or in or relative to acquisition, loading, unloading,
transportation, storing, working upon, using, converting, fabricating, erecting any
item, equipment, material or component in or relative to the works and the
Contractor shall be deemed to have known the nature, scope, magnitude and the
extent of the works and items, materials, equipment, and components required for
the proper and complete execution of the works though the Contract Documents may
not fully and precisely set out, describe or specify them; and the generality hereof
shall not be deemed to be anywise limited, restricted or abridged because in certain
cases the Contract Documents or any of them expressly state that the Contractor
shall do or perform any particular work or operation or supply of any particular
item, article or material or perform any particular labour or service, or

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because in certain cases the Contract Documents state a particular work,

operation, supply, labour or service shall be performed / made by the Contractor at
his own cost or without additional payment, compensation or charge or without
entitlement of claim against the Owner or words to similar effect, and in other
cases they do not, or because, in cases it is stated that the same are included in or
covered by the Schedule of Rates and in other cases it is not so stated.

(b) The cost of all constructional plant, equipment, supply of water and power,
construction of temporary roads and access, temporary works, pumps, wiring,
pipes, scaffolding, shuttering and other materials, supervision, labour, insurance,
fuel, stores spares, supplies, appliances and other materials, items, articles and
things whatsoever to be supplied, provided or arranged by the Contractor in or
relative to or in connection with the performance and / or execution of each item
specified in the Schedule of Rates and any related or incidental works or operations by
expression or implication involved therein or incidental thereto, complete in every
respect in accordance with the Contract Documents, and the plans, drawing, designs,
orders and / or instructions.

(c) The cost of all royalties, licence fees or other fees, duties, penalties, levies and
damages whatsoever payable for or in respect of any protected or patented goods,
materials, equipment or processes employed or relative to the works and all rents,
royalties, licence fees and any other fee, duty, penalty, levy, loss or damages
payable on the excavation, removal or transportation of any material or acquisition or
use of any right of way or other rights, licences, permits, privileges or usages
required for or relative to the performance of the works.

(d) Except to the extent specifically provided in the Special Conditions of Contract, all
customs duties, excise duties, stamp duties and other duties, sales tax and other
direct and indirect taxes, quay and port dues or charges, and all their duties, taxes,
fees, charges, levies, octroi and / or cesses whatsoever imposed by the Central
Government or State Government or Municipal and Local Bodies or other Authorities
whatsoever payable on any materials and / or works supplied or performed
including materials incorporated in the works or brought to site for the performance
of the work. Statutory variations, whether by imposition / abolition, or increase /
decrease in rates or remission / exemption, with respect to duties, taxes and such
like levies after the Base Date shall be to the account of the Contractor. The
Base Date for this purpose shall mean the date fixed for submission of the bid or
for opening the Price Cover, whichever is later.

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(e) The cost of all indemnities to the Owner and insurance premia on insurance
required in terms of the Contract Documents or otherwise under any law, rule or
regulation, and the cost of all risks of whatsoever (foreseen or unforeseen) including but
not limited to risks of delay or extension of time or reduction or increase in the work
or scope of work and / or cancellation of Contract and / or accidents strike, civil
commotion, war, labour trouble, third party breach, fire, lightning, inclement
weather, storm, tempest, flood, earthquake and other acts of God, Government
regulation or imposition or restriction, dislocations of road, rail and other transport,
access or facilities, flooding of site and / or access / roads / approaches thereto,
suspension of work, sabotage and other cause whatsoever.

(f) The cost of all materials supplied and / or intended for incorporation in the works
delivered to the job site and stacked as instructed by the Engineer-in-Charge
including (but not limited to) loading, transportation and unloading thereof, waste
on materials, and return of empties.

(g) Except to the extent specifically provided in the Special Conditions of Contract, the
cost, if any, of all escalations (foreseen and unforeseen) including but not limited to
labour cost and material cost.

(h) All supervision charges, establishment charges, overheads, finance charges and
other costs and expenses of and charges to the Contractor, and Contractor‟s profit
relative to the work.

9.4.3 Notwithstanding any provisions to the contrary in these conditions the Engineer-in-
Charge may at his absolute discretion agree to accept as complete any incomplete
work or item of work or any defective work or item of work performed by the Contractor
being at variance with the specifications, subject and upon the terms and conditions of this
clause.

The condition of such acceptance shall be that the work / item of work concerned shall be
deemed to be a work not covered by the Schedule of Rates within the meaning of Clause
5.3.3 hereof, and the Contractor shall be entitled to remuneration thereof only as
determined by the Engineer-in-Charge in accordance with provisions of Clause
5.3.3 hereof and the provisions of the said clause shall in all respects mutatis mutandis
apply to such work and the determination of the remuneration to the Contractor in
respect thereof.

9.5 On Account Payments :

9.5.1 Without prejudice to the provision of Clause 9.3.5 hereof, the Owner may at its discretion by
way of assistance to the Contractor, make „on account‟ payments to the Contractor, during
the progress of the work and in terms of the Contract, on the basis of Running Account
Bill as hereinafter more specifically mentioned.

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9.5.2 The Contractor shall make a quantitative assessment of the work performed by
Contractor at each job site during a month or such other period specified for the purpose and
submit a Running Account Bill (in the form prescribed by the Owner) in quadruplicate to the
Engineer-in-charge within 10 days of the expiry of the month / period, as the case
may be, complete with detailed measurements. The Running Account Bill(s), are to be
drawn by applying unit quantities measured to the applicable item(s) in the Schedule
of Rates. The Engineer-in-Charge shall thereafter carry out summary verification of
the work performed and the quantities entered in the Running Account Bill(s), and shall
certify the Running Account Bill(s) for payment on basis of such verification, in full or
partially.

Owner shall endeavour to make payment against complete Running Account Bills within
30 days of submission. However, in case of part payments or delay in payment beyond
30 days, the Contractor shall not be entitled to any interest.

9.5.3 Where the contract stipulates a lump sum as payable for the work or where a lump sum rate
is stipulated in the Schedule of Rate(s) in respect of any particular work or part thereof
and the works are not at any intervening stage capable of measurement, the Owner may
at its discretion pay on a Running Account Bill prepared by the Contractor otherwise in
accordance with the provisions of Clause 9.5.2 hereof, a percentage of the lump sum
provided for the entirety of the work or item of the work, as the case may be, on the basis
of a value assessment of such work certified for payment by the Engineer-in-Charge.
The periodicity of the Running Account Bill for the purposes of this sub-Clause shall be
as determined by the Engineer-in-charge.

9.5.4 No Running Account Bill(s) shall be made and / or certified for a total value of less than
Rs.10,000 (Rupees ten thousand) .

9.5.5 The Owner shall be entitled to recover by deduction, withholding, set-off or adjustment
from all “on account” payments, all dues to the Owner from the Contractor including,
retention monies and other deductions provided for in any Contract, and taxes and
other monies deductible within the provisions of the Income Tax Act or any other
applicable law, rule or regulation for the time being in force.

9.5.6 All “on account” payments shall be regarded merely as advance payments against the
amount due to the Contractor in terms of the Contract, and any such payment shall be
without prejudice to the full rights of the Owner under the contract and the liabilities of
the Contractor thereunder, and specifically shall not be regarded as an acceptance or
completion of any works paid for in terms of any Running Account Bill or otherwise.

9.5.7 Nothing provided in the foregoing clause hereof shall anywise be deemed to confer any
right or entitlement on the Contractor to receive “on account” payments, nor shall any
failure or delay by the Owner to make any on account payments as herein envisaged or
otherwise afford the Contractor a ground or basis to claim extension of time for
completion, or additional payment(s), or otherwise relieve the Contractor from any of his
liabilities under the contract.

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9.5.8 Secured Advance on Materials

Contractor may be allowed “Secured Advance” on the security of materials brought to site
for execution of the contracted item of work to the extent of 75% of the value of the
materials as assessed by the Engineer-in-Charge provided that the materials are of an
imperishable nature and that a formal agreement is drawn up with the Contractor under
which the Owner secures a lien on the materials and is safeguarded against losses due
to the Contractor postponing the execution of their proper watch and safe custody.
Recoveries of advances so made would be postponed until the whole of the work
entrusted to the Contractor is completed. They should be adjusted from his bills for work
done as the materials are used, the necessary deductions being made whenever the
items of the work in which they are used are billed for.

9.6 Mode of Payment :

All payments under or in terms of the Contract shall be made in official Indian Currency, by
crossed “Account Payee” cheque sent to the registered office of the Contractor or other
office notified in this behalf by the Contractor or delivered to the Contractor‟s
authorised representative. In addition the Contractor‟s bank account number and its
name may also be incorporated in the cheque. All cheques drawn shall be payable by the
Owner‟s bankers and in no case will the Owner be responsible if the cheque is mislaid,
misappropriated or otherwise lost or stolen.

9.7 Claims by the Contractor :

9.7.1 Should the Contractor consider that he is entitled to any extra payment or compensation in
respect of the works, over and above the amounts due in terms of the Contract as
specified in Clause 9.4.1, or should the Contractor dispute the validity of any deductions
made by the Owner from any Running Account Bills or from any payments due to him in
terms of the Contract, the Contractor shall forthwith give notice in writing of his claim in
this behalf to the Engineer-in-Charge within 10(Ten) days of the arising of the
entitlement for the extra payment, or of the payment after deduction, as the case may
be, and such notice shall give full particulars of the nature of such claim, grounds on
which it is based, and the amount claimed. The Contractor shall not be entitled to raise any
claim nor shall the Owner anywise be liable in respect of any claim by the Contractor unless
notice of such claim shall have been given by the Contractor to the Engineer-in- Charge in
the manner and within the time aforesaid and on failure to do so the Contractor shall be
deemed to have waived any and all claims and all his rights, if any, with respect to any extra
payment howsoever due.

9.7.2 The Engineer-in-Charge shall be under no obligation to reply any notice or claim issued /
made by the Contractor in terms of Clause 9.7.1 or otherwise, and the omission or
failure on the part of the Engineer-in-Charge to formally reject any claim made or notified by
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the Contractor, or any delay in dealing with any such claim shall not constitute or be
deemed to be an admission by the Owner of the validity of such claim, in full or part, or to
be a waiver by the Owner of any right in respect thereof; subject however that all such
claim otherwise valid within the provisions of Clause 9.7.1 read with Clause 9.7.3 and
9.7.4 shall be dealt with / considered by the Owner not later than together with the Final
Bill.

9.7.3 Any or all claims of the Contractor notified in accordance with the provision of Clause
9.7.1 from time to time which subsist at the time of submission of the Final Bill by the
Contractor shall be separately shown in the Final Bill together with particulars of the
claim such as grounds on which it is based, and the amount claimed, and shall be
supported by a copy(ies) of the relevant notice(s) in terms of Clause 9.7.1.

9.7.4 Any claim not specifically reflected and included in the Final Bill in accordance with the
provisions of Clause 9.7.3 shall be deemed to have lapsed or to have been waived by the
Contractor, and the Owner shall have no liability in respect of any such claim. The
Contractor shall not be entitled to reflect or include in the Final Bill any claim(s) except in
accordance with the provisions of Clause 9.7.3.

9.7.5 Notwithstanding that the Contractor has made a claim in terms of Clause 9.7.1, the
Contractor shall be liable to continue to perform the works till completion in all respects
and as per the Contract, unless prior termination of the Contract in terms of this
contract.

9.7.6 Any “on account” payment to the Contractor in respect of a claim made by the Contractor in
terms of Clause 9.7.1 shall not constitute or be deemed to be an acceptance by the
Owner, in full or in part, of the relative claim.

9.8 Discharge of Owner’s Liability :

9.8.1 Pursuant to submission of the Final Bill by the Contractor and on the Owner making the final
payment, as due thereon, the Contractor shall not be entitled to any further or other
payment with respect to the Work including with respect to claims, if any, made in
accordance with Clause 9.7.1.

9.8.2 Notwithstanding payment in respect of the Final Bill, the Contractor shall be and remain
liable in terms of Clause 8.5. and shall be entitled to receive the unadjusted balance of the
Security Deposit remaining in the hands of the Owner in terms of Clause 9.9.2 hereof.

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9.9 Final Certificate :

9.9.1 On satisfactory completion of the liability in terms of Clause 8.5. and where applicable of
the obligations in terms of Clause 8.2.8, and all other obligations under the contract, the
Contractor may apply to the Engineer-in-Charge for the issue of a Final Certificate. After
due satisfaction, the Engineer-in-Charge shall issue a Final Certificate to the Contractor
with respect to the performance of the contract by the contractor. Such Final Certificate
may be with or without conditions.

9.9.2 On satisfactory completion of all obligations under the contract, the Contractor may
apply to the Engineer-in-Charge for refund of Security Deposit, and in such event the
Owner shall pay / refund to the Contractor the unadjusted balance (if any) of the Security
Deposit for the time being remaining in the hands of the Owner. On such payment /
refund, or on intimation to the Contractor that the nothing out of the Security Deposit
remains to be repaid / refunded, the Owner shall stand discharged of all obligations and
liabilities under the Contract.

****************

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SECTION – 10

TAXES, LABOUR LAWS AND INSURANCE

10.1 Taxes :

The Contractor shall be exclusively liable for the payment of any and all taxes, duties and
levies now or hereafter imposed, increased or modified in respect of any work done and
/ or materials supplied and for the payment of all contributions and taxes for
unemployment compensations, insurance and old age pension and annuity now or
hereinafter imposed by the Central or any State Government or authority with respect to
or covered by the wages, salaries or other compensations paid to persons employed or
engaged by the Contractor and doth hereby undertake to indemnify and keep
indemnified the Owner from and against the same and all claims, actions, demands and
payments whatsoever against the Owner howsoever arising therefrom or in
connection therewith.

10.2 Government Regulations :

The Contractor shall comply with and ensure strict compliance by his / its sub-
contractors, servants and agents of all applicable Central, State, Municipal and local laws
and regulations of any Central, State or local bodies and authorities and undertakes to
indemnify the Owner from and against all levies, damages, penalties, any payments
whatsoever as may be imposed by reason of any such breach or violation of any law, rule
or regulation whatsoever and all actions, claims and demands arising therefrom and / or
relative thereto.

10.3 Labour Laws and Regulations :

10.3.1 The Contractor shall be responsible for strict compliance of and shall ensure strict
compliance by its sub-contractors, servants and agents of all labour and other laws,
rules or regulations having the force of law affecting the performance of the Work or
the relationship of employer and employee between the Contractor / sub-contractors
and their respective employees.

10.3.2 The Contractor shall ensure that wages are paid by himself or by his sub-contractors to
their workmen directly without the intervention of any Jamadars or Thekedars and that
no amount by way of commission or otherwise is deducted or recovered by the
Jamadars from the wages of the workmen. It is agreed and understood that the wages
paid or payable by the Contractor or his sub-contractor is not below the minimum
wages as applicable from time to time and the Owner shall not be liable to bear any
part of the increase, if any, in the minimum wages during the term of the contract.

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10.3.3 The Owner shall be entitled at all times to carry out any check(s) or inspection(s) of the
Contractor‟s facilities, records and accounts, which are situated within Owner‟s
premises, to ensure that the provisions of the Labour Laws and Regulations are being
observed by the Contractor and that the workmen are not denied the rights and benefits to
which they are entitled under such provisions. Any violation shall, without prejudice to any
other rights or remedies available to the Owner, constitute a ground for termination of the
Contract as though specifically set forth under Clause 11.1.1 thereof.

10.3.4 Contractor enters into this Agreement as, and shall continue to be, an independent
contractor. The parties agree that no employment relationship, partnership, joint venture or
other association shall be deemed created by this Agreement. Under no
circumstances shall the Contractor look to the Owner as his employer, or as a partner,
agent, or principal. Contractor or his sub-contractor, employees / workers of either,
shall not be entitled to any benefits accorded to the Owner‟s employees including,
without limitation, worker‟s compensation, disability insurance, leave or sick pay. Nothing in
the Contract Documents shall be construed or treated as making the workmen /
employees of the Contractor or any sub-contractor, as or to be workman / employee of the
Owner, or place obligation or liability in respect of any such workmen / employees upon
the Owner.

10.3.5 The Contractor shall indemnify and keep indemnified the Owner from and against all
actions, claims, demands and liabilities whatsoever under and in respect of the breach of
any of the provisions of Clauses 10.3.1 and 10.3.2, and / or against any claim, action or
demand by any workman / employee of the Contractor or any sub-contractor, and / or
from any liability under any law, rules or regulations having the force of law relative to
the contract, including but not limited to claims against the Owner under the Workmen‟s
Compensations Act, 1923, the Employees Provident Funds Act, 1952, Employees State
Insurance Act and / or The Contract Labour (Abolition & Regulation) Act, 1970.

10.3.6 Owner reserves the right to deduct or withhold any amount to the extent necessary or
required to ensure compliance of any Act or rules or other applicable statutory provisions as
in force from time to time. The same shall be recovered from bills payable to the
Contractor as debt recoverable.

10.3. 7 Compliance of ESI and EPF Acts

10.3.7.1 The Contractor agrees to cover all employees engaged by or through Sub-Contractors
under ESI as well as EPF Acts as per provisions of Acts and shall submit necessary
records and returns in proof of compliance of these statutory enactments.

Contractor further agrees to defend, indemnify and hold the OWNER harmless from any
liability or penalty which may be imposed by the Central, State, Local or other statutory
authority for any alleged violation of labour enactments or other enactments, by the
Contractor or his Sub-Contractor.

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With seal
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10.3.7.2 In the event that the OWNER is required under law to remit or otherwise the Owner
remits the contributions on behalf of the Contractor or sub-contractor to the concerned
authorities under the ESI and EPF Acts and Rules, on a month to month basis or
otherwise, then upon such remittance, the OWNER shall have the right to recover the
amounts so remitted from the running account bills / any amount payable by the OWNER to
the Contractor.

10.4 Safety Regulations, Accident and Damage :

10.4.1 The Contractor shall be responsible at his own cost and so far as it relates to the
performance of the Work, to observe and to ensure observance by his sub-contractors,
agents and servants of the applicable provisions of the Safety Code as hereinafter
appearing including all fire, safety and security regulations as may be prescribed by the
Owner from time to time as also such other reasonable precautions and measures as
appear necessary. The Contractor shall, at his cost, employ / deploy equipment as
necessary to protect all works, materials, properties, structures, equipment,
installations, communications and facilities whatsoever from damage, loss or other
hazard whatsoever (including but not limited to fire and explosion) and shall during
construction / operations minimise the disturbance and inconvenience to the Owner,
other contractors, the public and the adjoining land and property owners and occupiers, and
crops, trees and vegetation. It is agreed and understood that the Contractor shall
indemnify and keep indemnified the Owner from and against all claims, losses and
damages resulting directly or indirectly from any breach by the Contractor of his
obligations aforesaid or owing to negligence or want of due care on the part of the
Contractor. For the purposes of this Clause the expression Contractor shall include the
sub-contractor(s) or agent(s) or servant(s) of the Contractor.

10.4.2 The Contractor‟s liabilities under Clause 10.4.1 and otherwise under the Contract shall
remain unimpaired notwithstanding the existence of any other indemnity or insurance
covering any risk, claim, damage, loss or liability for which the Contractor is liable to the
Owner and in respect of which Clause 10.4.1 applied. The Owner, at his option, shall
be entitled to take recourse to any one or more of the indemnities or remedies available
under the Contract.

10.5 Indemnity and Insurance :

10.5.1 The Contractor shall at all times indemnify and keep indemnified the Owner and its
officers, servants and agents from and against all third party claims whatsoever
[including those related to property loss and damage, personal accident, personal
injury or death of any sub contractor and / or the servants or agents of the Contractor,
any sub-contractor(s) and / or the Owner] relatable to or respecting the Work and the
Contractor shall at his own cost and initiative at all times upto the successful conclusion of
the defect liability period specified in Clause 8.5.1 hereof take out and maintain
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insurance policies with insurance company(ies) approved by the Owner, in respect of all
insurable liabilities under this clause, in particular those under the Motor Vehicles Act,
Workmen‟s Compensation Act, Fatal Accident Act, Personnel Injuries Insurance Act,
Emergency Risk Insurance Act, and / or other Industrial Legislation from time to time in
force in India.

10.5.2 If it comes to the notice of the Owner that the Contractor has omitted or failed to take
out and / or maintain insurance policies as provided for in the foregoing sub-clause, the
Owner shall be entitled (but without obligation to do so) to take out and / or maintain such
insurance policies, at the cost and expense of the Contractor, and without prejudice to any
other rights or remedies of the Owner in this behalf. The Owner shall be entitled to
recover, by deduction or adjustment, the sum(s) incurred in this regard from the dues
to the Contractor.

10.5.3 The Contractor shall keep the Owner indemnified from and against all personal and third
party claims of whatsoever nature (inclusive of all litigation costs and Counsel fees)
arising out of any act or omission attributable to the Contractor or any sub- contractor
including any sub-contractor or agent, sub-agent, consultant or employee of the Contractor
or any sub-contractor, whether arising within or outside the scope of the contract, sub-
contract, agency or employment, as the case may be.

10.6 Training of Apprentices :

The Contractor shall, if and when called upon by the Engineer-in-Charge during the term
of the contract, engage and / or cause to be engaged by his sub-contractor(s), such
number of apprentices and for such period as may be required by the Engineer- in-Charge
in this behalf. Such apprentices shall be engaged / trained in accordance with the
provisions of the Apprentices Act, 1961 and other applicable statutory provisions.
The Contractor shall be responsible for fulfilling all obligations of the employer under
the said Act, including liability for payment to apprentices and the contractor shall not
be entitled to any extra compensation or remuneration from the Owner in this regard.

10.7 Patent and Royalties :

The Contractor represents and warrants that all the work to be performed / delivered by
Contractor under this Agreement will not violate or in any way infringe any patent or other
intellectual property rights of any third party. Wherever necessary, the Contractor
undertakes to secure at their own expense, appropriate license or other user rights with
respect to any aspect of the Work which is the subject of intellectual property rights of
any third party. Contractor shall indemnify and hold harmless (including payment of
reasonable attorney‟s fees) the Owner and its directors, officers, employees and agents
(each of the foregoing being referred to individually as an “Indemnified Party”) for any
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claim, loss or liability to third parties (other than such claim, loss or liability solely the
fault of the Indemnified Party) arising from or in connection with the Contractor‟s
breach of this Clause. In the event of any claim for royalty or license fee for the use of
any patent or other IPR, the Contractor alone shall be liable to make such payments.

10.8 Articles of Value Found:

All gold, silver and other metals, minerals or ore of any kind or description and all
precious and semi-precious stones and bearing earth, rock or strata, coins, treasures,
treasure trove, antiques and other items and things whatsoever which shall be found
under or upon the job site shall as between the Contractor and the Owner be the
exclusive property of the Owner and the Contractor shall forthwith upon discovery thereof
notify the Owner of such discovery with the details of the item(s) or things discovered
and pending directions by the Owner for the disposal thereof shall hold and preserve the
same as trustee of the Owner to the satisfaction of the Engineer-in-Charge.

10.9 Material Obtained from Dismantling :

Any Material obtained by the Contractor consequent upon dismantling of any building,
structure or construction whatsoever at the job site other than any building, structure or
construction dismantled by the Contractor pursuant to the Contractor‟s liabilities for
defects as elsewhere herein provided, shall be the exclusive property of the Owner.

10.10 Lien and Liabilities :

If at anytime there is evidence of any lien or claim for which the Owner might be or
become liable and which in terms of the Contract or otherwise is chargeable to or
payable by the Contractor, the Owner shall have the right to retain out of any payment
then due or thereafter becoming due to the Contractor an amount sufficient to completely
indemnify the Owner against such lien or claim, and should the Contractor not dispute
such lien or claim and / or if in the opinion of the Owner such lien or claim is otherwise
valid (the Owner‟s opinion in this behalf being final and binding on the Contractor), the
Owner may pay and discharge the same and deduct the amount so paid together with any
legal and other costs, charges and expenses incurred by the Owner in defending any
action and / or in obtaining legal advice or opinion relative to the lien, claim or action,
from any monies then due or thereafter becoming due to the Contractor and / or
retained as aforesaid, and if there is no money due or retained as aforesaid or if the same
be insufficient to satisfy the payment(s) aforesaid, the Contractor shall on demand pay to the
Owner the same and failing such payment within 10 (ten) days of demand by the Owner in
his behalf, shall be liable to pay interest on the amount due from the date of demand upto
and until the date of payment in full at the bank rate as applicable to the Owner Plus 1%
(one percent) per annum.
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10.11 Collection of Indebtedness :

Without prejudice to any other rights or remedies of the Owner and in addition to any
other provisions thereof, the Owner shall be entitled (1) to deduct out of the Security
Deposit and / or any monies of the Contractor for the time being in the hands of the
Owner , or (2) to withhold any monies becoming due to the Contractor, any and all
amounts due to the Owner from the Contractor arising out or in connection with the
Contract.

10.12 Liabilities for Sub-Contractor(s) :

Without prejudice to any other liabilities or obligations of the Contractor relative to sub-
contractors in terms hereof or otherwise, the Contractor shall require every sub-
contractor to whom any portion of the work to be performed under the Contract has
been sub-contracted, to comply with the provision of the Contract insofar as applicable to
the respective sub-contractor, and the Contractor shall hold the Owner harmless and
indemnified from any and against all penalties, action, claims and demands and costs,
charges and expenses whatsoever arising out of or occasioned by failure of the Contractor
or any sub-contractor(s) to make full and proper compliance with any of the terms and
conditions of the Contract.

10.13 Waiver :

It shall be permissible for the Owner by a written communication to the Contractor, to

waive in whole or in part, (1) any stipulation / requirement to be fulfilled by the Contractor, or
(2) the enforcement of any right or remedy, which the Owner may have against the
Contractor, or of any obligation which the Contractor may have herein; PROVIDED
ALWAYS that,

i) No waiver shall be presumed or inferred unless made in a written communication

addressed by the Owner to the Contractor and specifically communicated as a
Waiver;

ii) No waiver of any right or part of any right on one occasion shall be deemed to be a
waiver or abandonment of that right for all occasions with the intent that a waiver
once given shall be limited to the specific waiver and shall be without prejudice to the
right of the Owner to insist upon the strict adherence of the attendant obligations of the
Contractor and / or the future enforcement of the right by the Owner in respect of the
same and / or any other dependent obligation.

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SECTION – 11

TERMINATION

11.1 Right of Owner to Terminate Contract :

11.1.1 Notwithstanding anything elsewhere herein provided and in addition to any other right or
remedy of the Owner under the Contract or otherwise (including the right of the Owner
to recover from the Contractor agreed liquidated damages for delay in completion of
the works within the provision of 7.4.8 hereof), the Owner shall be entitled to terminate the
Contract by a written Termination Notice at any time during its currency on the occurrence
of any of the following event(s) contingencies, subject to a cure period of 10 days from
the date of receipt of a notice in this regard, namely,

i) Default or failure on the part of the Contractor to perform any of the obligations of
the Contractor under the Contract, including but not limited to ;

a) Failure to start the work within 10 (ten) days of handing over the job site to
the Contractor, and in the event of more than one job site being involved,
failure to start the work at all the job sites involved, within 10 (ten) days of
handing over of the concerned job site to the Contractor,

b) Failure to commence any work at any job site in accordance with the time
prescribed in this behalf in the Progress Schedule,

c) Failure to execute the works in conformity with the Progress Schedule,

d) Failure to provide at each job site sufficient labour, material, equipment,

machinery, temporary work and / or facilities required for the proper and / or
due execution of the work or any part thereof,

e) Negligence in carrying out the works or unsatisfactory execution of the

work,

f) Abandonment of the work or any part thereof,

g) Suspension of the Work for a continuous period of 14 (fourteen) days without

the prior consent of the Engineer-in-Charge,

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h) Any breach of the terms and conditions of the Contract by the Contractor or
his sub-contractor, agent or employee,

i) Failure to deposit the Initial Security Deposit within 10 (ten) days in terms of
Clause 4.2.1,

j) Failure to execute the Contract Agreement in specified Form of Agreement

within 10 (ten) days in terms of Clause 2.22.

ii) If there is any material change in the constitution of the Contractor (if a firm, or
corporate entity), or in the circumstances or organization of the contractor, which is
detrimental to the interests of the Owner.

iii) Dissolution of the Contractor (if a firm) or commencement of liquidation or winding- up

(whether voluntary or compulsory) of the Contractor (if a company) or
appointment of a receiver or manager of any of the contractor‟s assets and / or
insolvency of the Contractor (if a sole proprietorship or of any partner of the
Contractor (if a firm).

iv) Distress, execution or other legal process being levied on or upon any of the
Contractor‟s goods and / or assets.

v) Death of Contractor (if an individual).

vi) If the Contractor or any person employed by him shall make or offer for any purpose
connected with the Contract any gift, gratuity, royalty, commission, gratification or
other inducement (whether money or in any other form) to any employee or agent of
the Owner.

vii) If the Contractor shall assign his interest or any part thereof in the Contract.

11.1.2 The decision of the OWNER as to whether any of the events / contingencies mentioned in
Clause 11.1.1 hereof entitling the Owner to terminate the Contract, has occurred or
noted shall be final and binding upon the Contractor.

11.1.3 The Termination Notice shall set forth, in addition to a statement of the reason or reasons for
terminating the Contract, the time(s) and place(s) for conducting a survey and
measurement of the work performed under the Contract upto the date of termination for
the purpose of determining the amount(s) due to the Contractor. The reason(s) for the
termination stated in the Termination Notice, shall be final and binding upon the
Contractor.

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11.2 Settlement upon Termination :

11.2.1 For the purpose of measurements, the provisions of Clause 9.2.1 to 9.2.6 shall apply.
Only completed items of the work shall be reckoned for the purpose of measurements and
the decision of the Engineer-in-Charge as to whether or not any works have been
completed for the purpose of measurement shall be final and binding upon the
Contractor. Incomplete items of works shall be measured only on the basis of materials
supplied, and decision of the Engineer-in-Charge as to the quantity of material involved in
or relative to any incomplete works shall be final and binding upon the Contractor.

11.2.2 For the purpose of determining the amount due to the Contractor in respect of the work
[items of work or the total Work], the provisions of Clauses 9.3.1, 9.3.2 and 9.3.3 shall
apply, and the measurements taken shall for the purpose of such accounting be deemed to
be final measurements and the bill prepared by the Contractor on such basis, shall be
treated to be the Final Bill.

11.2.3 Within 7 (seven) days of completion of the measurements, the Contractor shall clear the
job site of all scaffolding, wiring, pipes, surplus materials, Contractor‟s labour,
equipment and machinery and shall demolish, dismantle and remove all Contractor‟s site
offices and quarters, and other temporary works, structures and construction and other
items and things whatsoever brought upon or erected at the job site or on any land
allotted to the Contractor by the Owner and not incorporated in the permanent works
and shall remove all rubbish from the job site and the land allotted to Contractor and shall
clear, level and dress the job site and said land to the satisfaction of the Engineer-in-
charge and shall put the Owner in custody and possession of the job site and all land
allotted by the Owner to the Contractor.

11.2.4 Should the Contractor fail to comply with provisions of Clause 11.2.3 in the manner
and within the time specified therein, the Owner shall have the right at the risk and cost of
the Contractor in all respects to clear the job site of all scaffolding, wiring, pipes,
surplus materials, contractor‟s labour, equipment and machinery and other materials
and things and / or demolish / dismantle and remove all Contractor‟s site offices and
quarters and other temporary works, constructions and erections whatsoever on or at the
job site or on any land allotted to the Contractor by the Owner and / or remove all
rubbish from a job site, the land allotted to the Contractor and store, sell, dispose of
and / or otherwise deal with any and all material, equipment and machinery, etc., and
other items and things aforesaid and recoveries of any demolition / dismantling as the
Owner shall in its absolute discretion deem fit, and the Contractor shall forthwith on
demand pay the Owner the entirety of the cost / expenses of the Owner relative to the
above together with 15% (fifteen per cent) thereof to cover Owner‟s supervision, with
right in the Owner (without prejudice to any other mode of recovery), to recover the

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same from the proceeds of any sale or disposal as aforesaid or any monies of the
Contractor held by the Owner or dues of the Contractor AND for the purposes of
exercising the powers under this sub-Clause, the Contractor DOTH HEREBY
irrevocably nominate, constitute and appoint the Owner [with right to the Owner to
delegate any and all of its rights in terms hereof to such of its officer(s) and / or other
person(s) as it shall deem fit] for and on behalf of and as attorney of the Contractor to
do, commit and sign all acts, deeds, matters and things as shall or may be necessary to
be done, committed and / or signed by the Owner to put into effect the provision of this
clause with full right to enter into arrangements with third parties for or relative to the
storage, sale and / or other disposal of any material, equipment and machinery, etc.,
and other items and things and to enter into or upon any of the Contractor‟s premises
and to break open if necessary any locks, bolts, fasteners, bonds or other devices
restricting entry thereto and generally to do all other acts, deeds, matters and things as
shall be necessary to give full effect to the provision of this clause, PROVIDED ALWAYS that,

i) The Owner shall be entitled, without prejudice to the aforegoing and in addition
thereto, upon the Contractor failing to comply with the provisions of Clause 11.2.3
after removing / demolishing / dismantling from the job site or land allotted to the
Contractor, any of the Contractor‟s scaffolding, wiring, pipes, materials, temporary
works and other items and things, by written notice to the Contractor, to require
the Contractor to remove or take delivery of, lift and / or clear the same within 7
(seven) days (or such other period as may be specified in said notice) of date of
receipt of the notice. If the contractor omits or fails to so remove or take delivery
etc., it shall be permissible for the Owner to abandon the Contractor‟s items at
the risk and cost of the Contractor, whereupon (without prejudice to any other
rights of the Owner) the Owner shall stand absolutely discharged and absolved in
respect of any demand or claim with respect to all such Contractor‟s property.

ii) Nothing herein stated shall make or constitute the Owner as a trustee or bailee of the
Contractor‟s property referred to in clause 11.2.3, nor shall the Owner be bound in law
or fact by any duty of care in respect thereof, with the intent that all actions, dealings
and disposals within the provisions of this clause shall be exclusively at the risk and
liability of the Contractor (including relative to any loss or damage) and the Owner
shall not be howsoever responsible, accountable or liable in respect thereof.

11.2.5 If any cause (including but not limited to resistance put up by the Contractor and / or his
servants or agent or any court order consequent upon a suit or proceedings filed by the
Contractor) the Owner is unable to fully take over possession of the entire works at any or
all job sites within 7 (seven) days from the date of completion of the measurements
and contemplated above, the Owner shall, in addition to all amounts, compensations and
/ or damages recoverable from the Contractor in terms hereof) including but not limited
to Owner‟s entitlements under Clause 7.4.8 and Clause 11.2.7 hereof or otherwise, be
entitled to recover from the Contractor liquidated damages in the amount equivalent to
1% (one per cent) of the Total Contract Value specified in the Acceptance of Tender for
each week or part thereof that the said taking over of possession at any job site is
delayed beyond the period of seven days specified above, without any limitation as to
quantum or percentage of such damages.
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11.2.6 Notwithstanding anything provided in Clause 11.2.4 the Owner shall have the right at any
time prior to the removal of the same from the job site, to take possession of such of the
Contractor‟s materials at any and all job sites as the Owner shall deem fit, and the
Contractor shall be entitled to compensation for any such material taken over as for
surpluses.

11.2.7 Upon termination of the Contract, the Owner shall be entitled at the risk and expense of
Contractor by itself or through any independent Contractor(s) or partly by itself and / or
partly through independent Contractor(s) to complete the execution of the Work as
contemplated in the scope of the Work in terms of the Contract Agreement and to
recover from the Contractor in addition to any other amounts, (including compensation
within the provisions of Clause 7.4.8. and Clause 11.2.5 hereof) the difference between the
amounts as would have been payable to the Contractor in respect of the work
(calculated as provided for in Clause 9.3.1 hereof read with the associated provisions
thereunder) and Clause 9.4.1 hereof and the amount actually expended by the Owner for
completion of the entire work as aforesaid together with 15% (fifteen per cent) thereof
to cover Owner‟s supervision charges, and in the event of the latter being in the excess of
the former, the Owner shall be entitled (without prejudice to any other mode of recovery
available to the Owner) to recover the excess from the security deposit or any monies
due to the Contractor.

11.2.8 No amount shall be due and payable to the Contractor upon or in the event of termination of
the Contract unless and until the entirety of the works as contemplated in the scope of
work shall have been completed in all respect to the satisfaction of the Owner and
following such completion the defect liability period in respect thereof as herein
otherwise provided for has expired and all payments finally due on any account to the
Owner and / or other Contractor(s) in respect of the balance works have been finally
settled and the Owner has been discharged from all liabilities in respect thereof.

11.2.9 If upon the satisfaction of the provisions of Clauses 11.2.7 and 11.2.8 hereof, there
shall remain in the hands of the Owner any excess / balance after all accounting and
adjustment of all dues from Contractor to the Owner, the Owner shall forthwith pay over
the excess / balance to the Contractor and in the event of the Security Deposit and
other dues of Contractor in the hands of the Owner being insufficient to meet the dues of
the Owner, the Contractor shall forthwith on demand by the Owner pay the Owner the
shortfall.

********************

Signature of Bidder
With seal
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SECTION -12

ARBITRATION

12.1 Settlement of disputes between two PSUs or between a PSU and Govt.
Department :

In the event of any disputes or differences relating to the interpretation and application of
the provisions of the Contract, such disputes or differences shall be referred by either
party to the Arbitration of one of the Arbitrators in the Departments of Public
Enterprises (DPE) to be nominated by the Secretary to the Government of India in
charge of the Bureau of Public Enterprises.

The Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment
thereof shall not be applicable to the arbitration under this clause.

The award of the Arbitrator shall be binding upon the parties to the dispute, provided,
however, any party aggrieved by such award may make a further reference for setting
aside or revision of the award to the Law Secretary, Department of Legal Affairs,
Ministry of Law and Justice, Government of India. Upon such reference the dispute shall
be decided by the Law Secretary, or the Special / Additional Secretary when so
authorized by the Law Secretary, whose decision shall bind the parties finally and
conclusively.

The parties to the dispute will share equally the cost of arbitration as intimated by the
“Arbitrator”.

Arbitrator shall give a speaking award.

12.2 Settlement of disputes with other than PSUs and Govt. Departments :

Any dispute arising out of or relating to this Agreement, or the breach or validity thereof,
shall be finally settled by arbitration in accordance with the Arbitration and Conciliation
Act, 1996 (the “Act”) by a sole arbitrator to be appointed by the Managing Director of
the Owner in the manner herein below stated. The Party requiring that the dispute be
referred to arbitration shall do so by a written notification to the other Party with a copy to
the Managing Director of the Owner. Within 30 days of receipt of such notification, the
Managing Director of the Owner shall notify to both parties the name and address of three
individuals who are not connected with the Owner, for appointment as the sole

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arbitrator. Within 10 days of receipt of such notification, the Party other than the Owner shall
select one out of the three individuals and communicate such person‟s name to the Owner and
the Managing Director of the Owner. On receipt of such communication, the Managing Director
of the Owner shall forthwith appoint the individual so selected as the sole arbitrator; provided
that in the event the Party other than the Owner, refuses or omits to so communicate within
the said 10 days, the Managing Director of the Owner shall forthwith appoint anyone out of
the three individuals as the sole arbitrator. The arbitration shall be held at Chennai and the
arbitration proceedings shall be conducted, and the award shall be rendered, in English. The
award shall state the reasons upon which it is based. The arbitrator shall render the award
within six months of the commencement of arbitral proceedings, which period may be
enlarged by consent of both Parties. The costs of the arbitration proceedings shall be borne
equally by the two parties. Interest, if awarded by the arbitrators, shall be at a rate not exceeding
the Cash Credit Rate prevailing on the date of the award. This Agreement, and the rights
and obligations of the Parties, shall remain in full force and effect pending the award in any
arbitration proceedings. For the purposes of this clause, the term „dispute‟ shall include a
demand or difference of any kind whatsoever, arising out of this Agreement and respecting
the performance thereof, whether during the Term of this Agreement including extensions if
any, or after completion, and whether before or after termination, abandonment or breach of
the Agreement.

**********************

Signature of Bidder
With seal
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SECTION – 13

SAFETY REGULATIONS

13.1 General :

13.1.1 The Contractor‟s employees and labour, engaged in the performance of the Work ,
shall adhere to safe construction practice and guard against hazardous or unsafe
working conditions and shall comply with the Owner‟s Safety Rules as set forth herein. The
safety rules specified herein are in addition to and not in substitution of the applicable
provisions of the Factories Act, 1948, The Contract Labour Act 1970, and other statutory
provisions, which in all cases shall apply.

13.1.2 The Contractor shall not be entitled to any extra or additional payment or other
compensation for the compliance with all applicable safety rules.

13.1.3 The requirement to comply with all applicable safety rules shall not entitle or justify the
Contractor to demand or claim any time or cost overrun.

13.1.4 Contractor shall post a qualified and experienced „Safety Manager‟ and provide Safety
Engineers / Officers / Supervisors in every shift, to exclusively oversee and ensure
compliance with all applicable safety rules.

13.1.5 It shall be the responsibility of the Contractor to keep those engaged in the Work duly
and promptly informed of any patent and latent dangers at the work sites. The Contractor
shall undertake safety talks with his staff and labourers each day before the
commencement of the work and outline dangers on site.

13.1.6 The Contractors shall not employ minors (persons below the age of 18 years). Also, the
women workers shall not be engaged in hazardous areas. Notwithstanding the
requirement under any applicable law, the Owner or the Engineer-in-charge, may at any
time require the Contractor to subject any contract workman, to a medical
examination, generally or in relation to specific jobs such as in canteen, tank cleaning, etc.

13.1.7 Contractors are prohibited from using Cellular phones within the Refinery premises,
except to the extent permitted by the Owner by special or general order / instruction.

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13.2 First Aid and Industrial Injuries :

13.2.1 Contractor shall ensure maintainance of first aid facilities for his employees and those of
his sub-contractors. However, if practicable and available, emergency first-aid
treatment may be obtained from Owner‟s First Aid Center / Emergency Care Center.

13.2.2 Contractor shall make his own arrangements for the transportation and treatment of his
employees and those of his sub-contractors suffering injuries. Name and telephone
numbers of those providing such services shall be prominently displayed in Contractor‟s Site
Office.

13.2.3 All cases of personal injury sustained by the Contractor‟s personnel within the premises of
the Owner shall be promptly reported in writing to the Engineer-in-charge / Emergency Care
Center / Owner‟s Safety Department, if occurring during normal working hours and to
the Shift Manager or Emergency Care Center of the Owner if occurring at other times.

13.2.4 The Contractor shall be solely responsible for any and all liability under the Workmen‟s
Compensation Act, and other applicable laws with respect to all those engaged by the
Contractor or any sub-contractor.

13.2.5 All and every accident or incident involving the personnel, vehicles or machinery of the
Contractor or any sub-contractor, shall be duly reported to the Owner promptly.

13.3 Carrying Match Boxes / Lighters and Smoking :

Carrying / Striking of matches, lighters inside the Owner‟s premises or smoking within the
refinery, tank farm or dyke limits are strictly prohibited. Owner‟s regulatory officials shall
be entitled to forthwith remove, using force if necessary, anyone violating the „No
Smoking‟ and other fire safety rules.

13.4 Work Permits :

13.4.1 Contractor shall obtain the necessary entry permits for all his labour before commencing the
job and abide by the instructions in this regard.

13.4.2 Contractor shall obtain necessary permits for hot work, cold work and excavation jobs as
may be directed by the Engineer-in-charge from time to time.

13.4.3 Safety measures stipulated in the respective Work Permits shall be strictly complied at
all times when within the premises of the Owner.

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13.4.4 Owner reserves the right to cancel a work permit without assigning reasons. When
called upon to stop the work by the Engineer-in-charge, the Contractor shall immediately
cease to continue the work. Before re-commencement, fresh work permit must be
obtained.

13.4.5 Contractor‟s personnel shall abide by the applicable instructions as may be issued from
time to time to handle any emergent situations, such as explosion, fire, terrorist attacks,
major accident, etc. In the event of such emergencies, the Contractor‟s personnel shall
stop their work and proceed to a safe designated place assembly point in the area of
their work and inform the Engineer-in-Charge immediately. If needed, they shall be safely
evacuated.

13.5 Entry Pass for Men and Machinery :

13.5.1 Contractor shall arrange to apply for and secure valid gate passes for the entry and exit
of his men, materials and equipment, including those of the sub-contractors, from the
concerned authorities of the Owner.

13.6 Owner’s Fire Fighting Facilities :

13.6.1 Fire hydrant water shall never be used by the Contractor, directly or indirectly, for any
purpose other than putting out any fire, unless otherwise permitted by the Engineer-in-
charge.

13.6.2 Contractor or their workmen shall not remove the fire hose / extinguishers from their
locations under any circumstances.

13.7 Operation of Vehicles :

13.7.1 The Contractor shall ensure that all State traffic rules and regulations are complied
with when Motor Vehicles are driven inside the Refinery / Project premises. In addition, the
following shall also be complied with by the Contractor‟s personnel ;

13.7.2 Speed Limit within the Refinery / Project premises, as stipulated by the Owner shall be
strictly adhered to. Unless otherwise specified the speed limit shall be 25 K.M. per hour.

13.7.3 Vehicles driven inside the Owner‟s premises shall be serviceable and roadworthy and shall
have CCE approved spark arrestors.

13.7.4 Vehicle drivers shall always check over-head and side clearance while driving vehicles.
Hanging of loads on the sides or at the rear is prohibited.

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13.7.5 Vehicles shall be parked only in designated areas. No vehicle shall be parked opposite fire
hydrants or at the intersection of roads or within 10 meters of any road corner or in front
of the Fire Station.

13.7.6 No Contractor‟s material should be spread or stacked on any of the roads, unless it is in
the performance of the Work.

13.7.7 The Work shall, as far as is practicable, be carried out by the Contractor so as not to
interfere with the normal activities of the Owner and the normal use of all facilities in the
Owner‟s premises.

13.7.8 Vehicles such as tractors, cranes or forklifts shall not be used to transport people.

13.8 Contractors Barricades :

13.8.1 Contractor shall erect and maintain suitable barricades to guard or protect :

a) Excavations, demolitions
b) Hoisting areas
c) Areas adjudged hazardous by Contractor‟s or Owner‟s inspectors
d) Owner‟s existing property liable to damage by Contractor‟s operations, in the
opinion of the Engineer-in-charge
e) Railroad unloading spots.

13.8.2 Contractor‟s employees and those of its Sub-contractors shall become acquainted with
Owner‟s barricading practice and shall respect the provisions thereof.

13.8.3 Barricades and hazardous areas situated in passages, pathways, or roads and in
areas adjacent thereto shall be conspicuously indicated including by red flasher lanterns at
night.

13.9 Scaffolding :

13.9.1 Suitable scaffolding should be provided for workmen for all works that cannot safely be
done from the ground or from solid construction except such short period work as can be
done safely from ladders. When a ladder is used, an extra mazdoor shall be engaged
for holding the ladder and if the ladder is used for carrying materials as well, suitable
footholds and handholds shall be given in inclination not steeper than 1 in 4 (1 horizontal
and 4 vertical).

13.9.2 All scaffolding material used shall be as per relevant IS specifications and tested
periodically as per statutory requirements.
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13.9.3 Scaffolding or staging more than 12 meters above the ground or floor, swing or
suspended from an overhead support or erected with stationery support shall have a
guard rail properly attached, bolted, braced and otherwise guarded at least 1 meter
above the floor or platform of such scaffolding or staging and extending along the
entire length of the outside and ends thereof with only such openings as may be
necessary for the delivery of materials. Such scaffolding or staging shall be so fastened as
to prevent from swaying from the building or structure.

13.9.4 Working platform, gangways and stairways should be so constructed that they should not
sag unduly or unequally and if the height of the platform or the gangway or the stairway
is more than 12 meters above ground level or floor level, they should be closely guarded,
should have adequate width and should be suitably fastened as described in clause
13.9.3 above.

13.9.5 Any opening in the floor of a building or in working platform be provided with suitable
means to prevent the fall of persons or materials by providing suitable grills, fencing or
railing having a minimum height of 1 meter.

13.9.6 Safe means of access shall be provided to all working platforms and other working
places. Every ladder shall be securely fixed. No portable single ladder shall be over
900 cms. in length, while the width between the side rails in rung ladder shall in no case
be less than 30 cms. for ladder upto and including 300 cms. in length. For longer ladders,
this width should be increased at least 6 mm for each additional foot of length.
Uniform step spacing shall not exceed 30 cms. Adequate precautions shall be taken to
prevent danger from electrical equipment. No materials on any of the sites of work shall
be so stacked or placed as to cause danger or inconvenience to any person or public.
Contractor shall also provide all necessary fencing and lights to protect the workers and
staff from accidents, and shall be bound to bear the expenses of defence of every suit,
action or other proceedings, as law that may be brought by any person for injury
sustained owing to the neglect of the above precautions and to pay any damages and
costs which may be awarded in any such suit or action or proceedings to any such
persons or which may be with the consent of the Contractor be paid to compromise any
claim by any such person.

13.9.7 Scaffolding must be inspected and certified fit by the Contractor‟s Safety Manager
weekly or more frequently in the event of adverse weather. Such inspections shall be
recorded.

13.10 Excavation and Trenching :

13.10.1 All trenches 1.2 meters or more in depth, shall at all times be supplied with at least one
ladder for each span of 30 meters length.

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13.10.2 Ladder shall be extended from bottom of the trench to at least 100 cms. above the
surface of the ground. The site of the trenches which are 152 cms. or more in depth
shall be stepped back to give suitable slope or securely held by timber bracing, so as to
avoid the danger of sides to collapse. The excavated material shall not be placed within
152 cms. of the edge of the trench or half of the trench depth whichever is more. Cutting
shall be done from top to bottom. Under no circumstances undermining or under
cutting be done.

13.11 Demolition :

Immediately prior to the commencement of any demolition work and also during the
process of demolition the following additional precautionary steps shall be observed.

13.11.1 All roads and open areas adjacent to the particular site shall either be closed or suitably
controlled.

13.11.2 All underground / overground power / telephone cables or water / sewerage lines in the
vicinity of the particular site shall be either suitably diverted or made non-functional for
the duration of the demolition activity.

13.11.3 All practical steps shall be taken to prevent danger to persons employed from risk of fire
or explosion or flooding. No floor, roof or other part of the building shall be overloaded with
debris or materials as to render it unsafe.

13.12 Safety Equipment :

13.12.1 The Contractor shall ensure ready availability at the respective work site of necessary
personal protective equipment for use by persons employed at the site and such
equipment shall be maintained in a condition suitable for immediate use. The
Contractor shall ensure proper use of such equipment by those concerned. Contractor shall
use material handling equipment and tools such as chain pulley blocks, wire ropes, lifting
machines etc. and scaffolding materials only if they are duly certified as per statutory
requirements.

13.12.2 Workers engaged in mixing asphaltic materials, cement and lime mortar shall wear
protective footware and protective gloves.

13.12.3 Workers engaged in white washing and mixing or stacking of cement bags or any
materials which are injurious to eyes shall be provided with protective goggles / dust
masks.

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With seal
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13.12.4 Those engaged in welding and cutting works, shall be provided with protective face and
eye-shields, hand gloves, apron etc.

13.12.5 Stone breakers shall be provided with protective goggles and protective clothing and
located at safe intervals.

13.12.6 When workers are required to work in sewers and manholes, which are in use, the
Contractor shall ensure that the manhole covers are opened and ventilated at least for an
hour before the workers are allowed to get into manholes and the manholes so opened
shall be cordoned off with suitable railing and provided with warning signals or boards to
prevent accidents.

13.13 Risky Places :

13.13.1 If there is risk of drowning or such like danger at or near the work site, adequate safety
equipment shall be positioned at such site(s) in ready-to-use condition. Steps
necessary for prompt rescue of any person in danger shall be taken.

13.13.2 When work is required to be performed in areas where H2 S / CO gas is likely to be

present, the Contractor should ensure with the Permit Issuing Authority on the total gas
free atmosphere. Care should be exercised when work in a contaminated area upto the
Threshold Limit Value (TLV) is undertaken, by wearing a Self Contained Breathing
Apparatus (SCBA) or using a Blow Man Apparatus. Such work should not be
performed by a single worker and should always be done under close supervision.

13.14 Hoisting Equipment :

13.14.1 All hoisting machines and tackles including their attachments, anchorage and supports shall
be as per relevant IS specifications, standards and tested / inspected periodically by the
concerned competent authorities. Necessary records / certificates etc., in this regard
shall be maintained as per statutory requirements.

13.14.2 These shall be of good mechanical construction, sound materials, and adequate
strength and free from patent defect and shall be kept in good repair and in good
working order.

13.14.3 Ropes used in hoisting or lowering materials or as a means of suspension shall be of

durable quality, of adequate strength and free from defects.

13.14.4 Every crane driver or hoisting appliance operator shall be properly qualified. No person
under the age of 21 years shall be in charge of any hoisting machine including any
scaffolding winch or for giving signals to the operator.

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13.14.5 In case of every hoisting machine and of every chain ring hook, shackle swivel and
pulley block used in hoisting or lowering or as means of suspension, the safe working load
shall be ascertained by appropriate means. Every hoisting machine and all gear referred
to above shall be prominently marked to show the safe working load. In case of a
hoisting machine having a variable safe working load, each safe working load and the
respective conditions under which it is applicable shall be clearly indicated. No part of
any machine or any gear shall be loaded beyond the safe working load except for the
purpose of testing.

13.14.6 In respect of machines made available by the Owner, the safe working load shall be notified by
the Engineer-in-charge. As regards Contractor‟s machines, the contractor shall notify the
safe working load of the machine to the Engineer-in-charge, whenever he brings any
machinery to site of work and cause it to be verified by the Engineer-in-charge.

13.14.7 Hoisting appliances should be provided with such means as will reduce to the minimum, any
risk of accidental descent of the load.

13.14.8 Adequate precautions should be taken to avoid the risk of any part of a suspended load
becoming accidentally displaced.

13.15 Electrical Equipment :

13.15.1 The Contractor shall deploy a competent Engineer / Electrician to attend to electrical
matters. All temporary power supply boards shall conform to IE Regulations.

13.15.2 Motors, Gearing, Transmission, Electric wiring and other dangerous parts of hoisting
appliances should be provided with efficient safeguards.

13.15.3 When workers are employed on electrical installations which are already energised,
insulating mats, wearing apparel, such as gloves, sleeves and boots as may be
necessary, shall be provided. The workers should not wear any metallic rings, watches, keys
or other materials which are conductors of electricity.

13.15.4 The work area shall always be kept accessible for switching off power supply in case of
emergency. Before leaving the work place, the Contractor shall ensure power supply is
switched off properly. For this purpose a record shall be maintained of the last person
leaving the concerned work site on all days of activity.

13.16 Maintenance of Safety Devices :

All scaffolds, ladders and other safety devices mentioned or described herein shall be
maintained in safe conditions and no scaffold, ladder or equipment shall be altered or

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With seal
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removed while it is in use. Adequate washing facilities should be provided at or near

places of work.

13.17 Display of Safety Instructions :

13.17.1 The Contractor shall display a „Safety Policy‟ at a prominent place at his site office and
each work spot.

13.17.2 The safety provisions covered herein should be brought to the notice of all concerned by
display on a notice board at a prominent place at the work spot(s).

13.18 Personal Conduct :

13.18.1 Gambling, fooling on the work, horseplay, mock fighting or fighting is strictly forbidden in
the Refinery premises / Project area.

13.18.2 Entering the Refinery premises / Project area under the influence of alcohol / narcotics or
its possession is strictly forbidden.

13.18.3 Entering the Refinery premises / Project area with weapons such as knives, gun etc. is
prohibited.

13.19 Housekeeping :

13.19.1 Good housekeeping must be practised by the Contractor‟s personnel at all times while
within the Owner‟s premises. During and after completion of work, they are to ensure
that their work area is kept clean and tidy.

13.19.2 Records of routine housekeeping inspection shall be maintained.

13.19.3 Materials and equipment should be stored in a safe and orderly manner so that they will
not block exits to roads, buildings, aisles, passages and approach to fire fighting
equipment such as fire hydrants, fire hoses, fire extinguishers or areas where
emergency safety showers, electrical switch panels and switch rooms are located.

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13.20 Enforcement of Safety Regulations :

13.20.1 To ensure effective enforcement of the rules and regulations relating to safety
precautions, the arrangements made by the Contractor shall be open to inspection by the
Engineer-in-Charge or Safety Engineer of the Owner or their representatives.

13.20.2 Contractors and their supervisory staff shall undergo a one-day training programme
annually by CPCL on Safe Working Practices in the Refinery Premises so as to
familiarize themselves with the safety rules, regulations and practices. Contractor shall be
in possession of valid safety training badge while working in the Refinery premises.

*******************

Signature of Bidder
With seal
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SECTION – 14

GENERAL

14.1 PERSONAL ACTS AND LIABILITIES :

14.1.1 No Director, officer or other employee of the Owner shall be personally bound or liable to
the Contractor for or in respect of any obligation, default or omission directly or
indirectly relative to the Contract.

14.1.2 The Contractor shall not under any circumstances remit, pay or advance to any officer(s),
servant(s) or agent(s) of the Owner any amount on any account without prior written
authorisation of the Owner.

14.1.3 Any money paid to any partner of the Contractor (if a firm) and any receipt, settlement,
acknowledgement of liability or other documents whatsoever signed by any one of the
partners of the firm or erstwhile partner of the firm (without notice of the cessation of
his interest) or any person held out to be a partner of the firm shall be binding upon the
Contractor vis-a-vis the Owner and shall constitute a full release and discharge to the
Owner and / or valid settlement, acknowledgement or obligation upon the Contractor, as
the case may be, and the Owner shall not be concerned, with the application of any monies
so paid or the authority of the concerned partner (or erstwhile or purported partner)
vis-a-vis the other partners to make the settlement, receipt, acknowledgement or other
document(s) concerned provided always that the owner shall be entitled at its discretion
at any time to call upon all the partners of the Contractor firm to sign any receipt,
settlement, acknowledgement or other document(s) including any receipt, settlement,
acknowledgement or other document signed by a partner (or erstwhile or purported
partner) as aforesaid, and all the partners of the firm shall, when called upon to do so by
the Owner forthwith sign the receipt, order acknowledgement or other document
required to be so signed.

*************

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SECTION – 15

APPENDICES

APPENDIX No. PROFORMA

I Submission of Tender

II Information of Tenderer

II A Declaration of Black Listing / Holiday Listing

III Details of Past Experience

IV Details of Equipment Proposed to be used for the Tendered Work

V Details of Concurrent Commitments

VI Bank Guarantee for Earnest Money Deposit

VII Agreement

VIII Bank Guarantee for Initial Security Deposit

IX Bank Guarantee for Security Deposit

X Indenture for Secured Advance

XI Indemnity Bond

Signature of
Bidder
With seal
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APPENDIX – I

PROFORMA FOR SUBMISSION OF TENDER

(To be filled up by the tenderer and issued in their letter head)

Ref. : Date :

From

...................................................................

...................................................................

...................................................................

To
Chennai Petroleum Corporation Limited,
[Refer Note 1 for Full Address]

1. Having examined the Tender Documents consisting of the Notice / Letter Inviting
Tenders, Instruction to Bidders, General Conditions of Contract, Special Conditions of
Contract, Standards and Specifications, Plans and Drawings, Time Schedule, Proforma for
agreement, Form of Schedule of Rates and Addendum / Addenda to the Tender
Documents in connection with the ……………………………… [Name of Work] for Chennai
Petroleum Corporation Limited, …………………… [Refer Note 1 for Full Address] and
having understood the provisions of the said Tender Documents and having thoroughly
studied the requirements of Chennai Petroleum Corporation Limited relative to the work
tendered for and having conducted a thorough study of the job site(s) involved, the site
conditions, soil conditions, climatic conditions, labour, power, water, material and
equipment availability, transport and communication facility, availability and suitability
of borrow areas, availability of right of way and temporary office accommodation and all
other facilities and things whatsoever necessary for the performance of the work, I / We
submit our tender offer for the performance of the proposed work in accordance with
the terms and conditions and within the time mentioned in the Tender Documents at the
rates quoted by me / us in the accompanying Schedule of Rates based on the Form of
Schedule(s) of Rates included within the Tender Documents.

2. If the work or any part thereof is awarded to me / us, I / We undertake to perform the
work in accordance with the Contract Documents as defined in the Proforma of
Agreement forming part of the Tender Documents and accept the terms and conditions of
the contract as laid down therein and undertake within 10 (Ten) days of receipt of
Acceptance of Tender to pay to and / or deposit with Chennai Petroleum Corporation
Limited a sum which together with the amount of Earnest Money deposited by me / us in
terms hereof, shall make 2 ½% (Two and one-half percent) of the Total Contract Value
Signature of Bidder
With seal
 180
Page 83

as specified in the Acceptance of Tender for the purpose of Security Deposit, by any one
or more modes of payments specified in this behalf in the General Conditions of Contract and
to commence work as each job site(s) involved within 10 (Ten) days of handing over the
job site or any part thereof to me / us, and to sign the formal contract in terms of the
Proforma for agreement forming part of the Tender Documents within
10 (Ten) days of receipt of Letter of Acceptance from and on behalf of Chennai
Petroleum Corporation Limited in this behalf failing which Chennai Petroleum
Corporation Limited shall be at liberty without further reference to me / us and without
prejudice to any of its rights or remedies, to terminate the contract and / or to forfeit the
earnest money deposited in terms hereof.

3. I / We hereby further undertake to keep my / our tender offer valid for a period of not
less than 4 (Four) months from the scheduled date of opening of tenders as specified in
the Instructions to Bidders forming part of the Tender Documents.

4. I / We hereby further state that I / We / none of us (in the case of partnership firm) was /
were employed as Directors of Chennai Petroleum Corporation Limited during the 2
(Two) years immediately preceding the date hereof

(OR)

I / We hereby declare that I / Shri. ………………., one of our partner (in the case of
partnership firm) was employed as a Director of Chennai Petroleum Corporation
Limited during the of 2 (Two) years immediately preceding the date hereof and that I /
Shri………………. have / has obtained previous permission of Chennai Petroleum
Corporation Limited to make this tender.

5. I / We have annexed to this tender the following documents [Tenderers to list down the
documents] in accordance with the Instructions to Bidders, Clause No. 2.4.

I / We hereby undertake that the statements made herein / information given in the
Annexures referred to above are true in all respects and that in the event of any such
statement or information being found to be incorrect in any particular, the same may be
construed to be a misrepresentation entitling Chennai Petroleum Corporation Limited to
avoid any resultant contract.

6. I / We further undertake as and when called upon by Chennai Petroleum Corporation

Limited to produce for its inspection original(s) of the document(s) of which copies
have been annexed hereto.

7. I / We confirm having deposited / enclosed Earnest Money of Rs……………. (Rupees

……………………..) as detailed hereunder [Strike off whichever is not applicable] :

Signature of Bidder
With seal
 181
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a) Demand Draft No…………………… dated …………… drawn on

…………………… [Name of Bank and Branch] attached hereto.

b) Bank Guarantee No. ………………… dated ……………. Issued by

………………….[Name of Bank and Branch] attached hereto.

Yours truly,

Signature of Tenderer with seal

Name :
Designation :
Address :

Witness (Signature)
Name :
Address :
Occupation :

Tenderers to Note :

1. The full address of Chennai Petroleum Corporation Limited’s job site shall be either
Manali, Chennai – 600 068 or Panangudi, Nagapattinam – 611 002, or any other
place as indicated in the NIT / LIT.

Signature of Bidder
With seal
 182
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APPENDIX – II

INFORMATION ABOUT TENDERER

A. In case of Individual :

i) Name of business
ii) Whether his business is registered iii)
Date of commencement of business
iv) Whether he pays Income Tax over Rs. 10,000 per year
v) Whether he is a Director or is related to any Director of Owner, present or retired
within the past two years
vi) Whether he has been banned / de-listed by any Government Department / Quasi-
Government / Public Sector Undertaking. If so, give details.

B. In case of Partnership :

i) Names of partners
ii) Whether the partnership is registered
iii) Date of establishment of firm
iv) If each of the partners of the firm pays income Tax over Rs. 10,000 a year and if
not, which of them pays the same
v) Whether any partner or member of the firm is a Director or is related to any Director of
Owner, present or retired within the past two years
vi) Whether the firm has been banned / de-listed by any Government Department /
Quasi-Government / Public Sector Undertaking. If so, give details.

C. In the case of Limited Company or Company Limited by Guarantees :

i) Amount of paid-up capital

ii) Name of Directors
iii) Date of Registration of Company
iv) Copies of the balance sheet of the company of the last two years
v) Whether any Director of the Company is a Director or is related to any Director of
Owner, present or retired within the past two years
vi) Whether the company has been banned / de-listed by any Government Department
/ Quasi-Government / Public Sector Undertaking. If so, give details.

Signature of Tenderer with seal :

Name and Address of Tenderer :

Signature of Bidder
With seal
 183
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APPENDIX – II A

PROFORMA OF DECLARATION OF BLACK LISTING / HOLIDAY LISTING

A. In the case of a Proprietary Concern :

I hereby declare that neither I in my personal name or in the name of my Proprietary concern
M/s. which is submitting the accompanying Bid / Tender nor any other
concern in which I am proprietor nor any partnership firm in which I am involved as a Managing
Partner have been placed on black list or holiday list declared by any Government Department/
Quasi-Government / Public Sector Undertaking or its Administrative Ministry (presently the
Ministry of Petroleum & Natural Gas), except as indicated below:

(Here give particulars of blacklisting or holiday listing and in the absence thereof state “NIL”)

B. In the case of a Partnership Firm :

We hereby declare that neither we, M/s. , submitting the accompanying

Bid / Tender nor any partner involved in the management of the said firm either in his individual
capacity or as proprietor or managing partner of any firm or concern have or has been placed on
blacklist or holiday list declared by any Government Department / Quasi-Government / Public Sector
Undertaking or its Administrative Ministry (presently the Ministry of Petroleum & Natural Gas),
except as indicated below:

(Here give particulars of blacklisting or holiday listing and in the absence thereof state “NIL”)

C. In the case of a Company :

We hereby declare that we have not been placed on any holiday list or black list declared by any
Government Department / Quasi-Government / Public Sector Undertaking or its Administrative
Ministry (presently the Ministry of Petroleum & Natural Gas), except as indicated below:

(Here give particulars of blacklisting or holiday listing and in the absence thereof state “NIL”)

It is understood that if this declaration is found to be false in any particular, Chennai Petroleum
Corporation Limited or its Administrative Ministry, shall have the right to reject my / our bid, and if
the bid has resulted in a contract, the contract is liable to be terminated.

Place : Signature of Bidder :

Date :
Name of Signatory :

Signature of Bidder
With seal
 184
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APPENDIX – III

DETAILS OF PAST EXPERIENCE

I / We have completed the following similar works during the past 5 years :

Sl. Full Name, Year of Contractual Actual Total

No. Particulars of address of Completion completion Completion Contract
Similar work client Period Period Value
carried out including (Months) (Months)
by tenderer contact
person‟s
Name,
Phone / Fax
No.

Signature of Tenderer with seal :

Name and Address of Tenderer :

Signature of Bidder
With seal
 185
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APPENDIX – IV

DETAILS OF EQUIPMENT PROPOSED TO BE USED

FOR THE TENDERED WORK

I / We, shall use the following equipment owned by the tenderer for the work, if awarded to me /
us :

Sl. Description Quantity Make Capacity Owner Approximate Period of

No. (Numbers) date retention
when it at site
will be
deployed
at site

Signature of Tenderer with seal :

Name and Address of Tenderer :

Signature of Bidder
With seal
 186
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APPENDIX – V

DETAILS OF CONCURRENT COMMITMENTS

I / We furnish below the details of the works currently being executed by me / us :

Sl. Full Name, Total Contractu Actual Expected Current

No particula address Contra al Completi Date of Progres
. rs of of client ct Completi on Period Completi s
similiar and Value on period (Months) on (Perce
work contact (Months) n-
carried out person tage)
by tenderer

Signature of Tenderer with seal :

Name and Address of Tenderer :

Signature of Bidder
With seal
 187
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APPENDIX – VI

PROFORMA OF BANK GUARANTEE FOR EARNEST MONEY DEPOSIT (on

Non-judicial Stamp Paper of Value Rs……. )

To
CHENNAI PETROLEUM CORPORATION LIM-
ITED [Refer Note 1 for Full Address]

Registered Office :
536, Anna Salai, Teynampet,
Chennai – 600 018, INDIA

Messrs ………………………………………………………are giving tender for the work of

……………………………………………………for the Chennai Petroleum Corporation, Manali, Chennai /
Panangudi, Nagapattinam.

The General Tender Notice provides that the tenderer shall along with his tender pay a sum of Rs.
………………… (Rs. ……………………) as earnest money deposit, in the form therein mentioned. The
form of payment of earnest money includes guarantee executed by a scheduled bank, undertaking
full responsibility to indemnify Chennai Petroleum Corporation Limited in case of default. The said
…………………………. has approached us and at their request and in consideration of the
premises ……………………………having our office at
………………..have agreed to give such guarantee as hereinafter mentioned.

1. We …………………………………………….hereby agree with you that if default shall be made by Messrs

……………………………………….in observing or performing any of the terms and conditions of the tender,
given by them or in payment of any money payable to you under the terms of the tender,we shall,
on demand, pay to you in such manner as you may direct, the said amount of Rs ………………(Rupees
…….................................................................................. only) or such portion thereof not
exceeding the said sum as you may from time to time require.

2. You will have the full liberty without reference to us and without affecting this guarantee, to
postpone for any time or from time to time the exercise of any of the powers and rights conferred on
you under the tender given by the said ……………………………..and to enforce or to forbear from
enforcing any powers or rights or by reason of time being given to the said
………………………which under law relating to the sureties would but for the provision have the effect
of relating us.

Signature of Bidder
With seal
 188
Page 91

3. Your right to recover the said sum of Rs. ……………(Rupees. ................………………only) from us in
the manner aforesaid will not be affected or suspended by reason of fact that any dispute or
disputes have been raised by the said Messrs ……………………………and / or that any dispute or
disputes are pending before any Officer, tribunal or court.

4. The guarantee herein contained shall not be determined or affected by the liquidation or
winding up, dissolution or change of constitution or insolvency of the said
………………………………………but shall in all respects and for all purposes be binding and operative until
payment of all monies, due to you in respect of such liability or liabilities is made.

5. Notwithstanding anything contained herein :

a) Our liability under this bank guarantee shall not exceed Rs. ………….
(Rupees ………………………………….. only)
b) This guarantee shall be valid upto ………………………. and
c) We are liable to pay the guaranteed amount or any part thereof under the
bank guarantee only and only if you serve upon us a written claim or demand on
or before ……..…………

6. We have power to issue this guarantee in your favour under our Memorandum and Articles of
Association and the undersigned has full power to do the Power of Attorney dated
………………………granted to him by the Bank.

Dated at ……… day of …………… ………..

Yours faithfully,

...................... Bank, by its

Constituted Attorney

Signature of a person duly authorised

to sign on behalf of the bank

Tenderers to Note :

1. The full address of Chennai Petroleum Corporation Limited’s job site shall be either
Manali, Chennai – 600 068 or Panangudi, Nagapattinam – 611 002, or any other
place as indicated in the Special Conditions of Contract.
2. The tenderer should insert the amount of guarantee in words and figures. This figure
should be the same as indicated in the Notice / Letter Inviting Tenders.

Signature of Bidder
With seal
 189
Page 92

APPENDIX – VII

PROFORMA OF AGREEMENT

CONTRACT AGREEMENT NUMBER …………………….. DATED . ........... DAY OF

....................... 20………… Two Thousand and …………………. between
Messrs……………………………… a Company incorporated under the Indian Companies
Act, and having its registered office at in the town of …………………………………
hereinafter called the “CONTRACTOR” (Which term shall unless excluded by or
repugnant to the subject of context) include its successors and permitted assignees)
of the one part and the Chennai Petroleum Corporation Limited , hereinafter called
“OWNER” (which term shall, unless excluded by or repugnant to the subject or
context include its successors and assignees), of the other part.

Wheres:

A. The Owner being desirous of having provided and executed certain works
mentioned, enumerated or referred to in the tender documents including Short
Tender Notice, General Tender Notice, General Conditions of Contract, Special
Conditions of Contract, Specifications, Drawings, Plans, time Schedule of
completion of jobs, Agreed Variations and other documents etc., has called for
Tender for the work of ……………………………………

B. The Contractor has inspected the site and the surroundings of the works
specified in the tender documents and has satisfied himself by careful
examination before submitting his tender as to the nature of the surface strata,
soil, sub-soil and ground, the form and nature of site and local conditions, the
quantities, nature and magnitude of the work, the availability of labour and
materials necessary for the execution of the work, the means of access to site,
the supply of power and water thereof and the accommodation he may
require and has made local and independent enquiries and obtained complete
information as to the matters and things as referred to or implied in the tender
documents or having any connection therewith, and has considered the nature
and extent of all probable and possible situations, delays hindrances or
interferences to or with execution and completion of the work to be carried out
under the Contract and has examined and considered all other matters,
conditions and things probable and possible contingencies, and generally all
matters incidental thereto and ancillary thereof affecting the execution and
completion of the work and which may have influenced him in making his tender.

C. The offer made by the Contractor dated ……………..in response to Owner‟s Tender
Notice dated ………………….and the letter of acceptance of the said offer of the
Contractor by the Owner by letter No …………….dated …………….and the document
containing the agreed variations are attached to this Agreement and they form
an integral part of this Agreement.
Signature of Bidder
With seal
 190
Page 93

And whereas the Owner accepted the tender of the Contractor for the provision and the
execution of the said work at the rates stated in the Schedule of Quantities of works and
finally approved by the Owner (hereinafter called the „Schedule of Rates”) upon the terms
and subject to the conditions of Contract: -

Now THIS AGREEMENT WITNESSETH and it is hereby agreed and declared as

follows:

1 . In consideration of the payment to be made to the contractor for the work to be

executed by him the Contractor hereby covenants with the Owner that the Contractor
shall and will duly provide, execute and complete the said works and shall do and
perform all other acts and things and in the Contract mentioned or described or
explained which are to be implied therefrom or may reasonably necessary for the
completion of the said works and at the times and in the manner and subject to the
terms and conditions of stipulations mentioned in the Contract.

2. In consideration of the due provision, execution and completion of the said works, the
Owner does hereby agree with Contractor that the Owner will pay to the Contractor
the respective amounts for the work actually done by him and approved by the Owner
at the Schedule of Rates and such other sum payable to the Contractor under the
provision of the Contract, such payment to be made at such time and in such manner
provided for in the Contract.

and

3. In consideration of the due provision, execution and completion of the said works, the
Contractor does hereby agree to pay such sums as may be due to the Owner for
the Service rendered by the Owner to the Contractor, such as power supply, water
supply and others as set forth in the said contract and such other sums as may
become payable to the Owner towards the controlled items of consumable materials
or towards loss, damage to the Owner‟s Refinery Equipment, Materials,
Construction Plant and Machinery, such payment to be made such time and in such
manner as provided in the Contract.

IN WITNESS whereof the parties have executed these present in triplicate the day and
the year first above written.

Signed and delivered for and on behalf of

Signature of Bidder
With seal
 191
Page 94

In the case of partnership, to be signed by all partners or by one partner holding

a General Power of Attorney.

At

In the presence of
(Two Witnesses)
Signed and delivered for and on behalf of
Chennai Petroleum Corporation Limited

In the presence of (Two Witnesses)

In the presence of (Two Witnesses)

Signature of Bidder
With seal
 192
Page 95

APPENDIX - VIII

PROFORMA OF BANK GUARANTEE FOR INITIAL SECURITY DEPOSIT

Chennai Petroleum Corporation Limited,

Tender No. : . ...............................

Dear
Sirs,

In consideration of Chennai Petroleum Corporation Limited (hereinafter called „the Corporation‟

which expression shall include its successors and assigns) having awarded certain work for and
relative to “
...................................................................................................................
...................................................................................................................
............. ....................................................................................... ” (Name of the
work) to M/s
...................................................................................................................................
............. ........................................................................................ (Name and address
of the Contractor) (hereinafter called the „Contractor‟ which expression shall include
its successors) upon certain terms and conditions interalia mentioned in the Corporation‟s
Letter of Acceptance No. . ................................................................................... dated .
.................................................................................................... read with the relative
Tender Documents (hereinafter collectively called „the Contract‟, which expression shall include any
formal contract entered into between the Corporation and the Contractor in supercession of
the said Letter of Acceptance and all amendments and / or modifications in the contract) in-
clusive of the condition that the Corporation may accept a Bank Guarantee / Undertaking of a
Scheduled Bank in India in lieu of Cash Deposit of the Initial Security Deposit as provided for in
clause 4.2 of the General Conditions of Contract forming part of the said Tender Documents.

We, .
(Name of the Bank) a body registered /
constituted under the .
having registered and Head Office at
..................................
. (hereinafter called „the
Bank‟) at the request of the Contractor and with the intent to bind the Bank and its successors
and permitted assigns, do hereby unconditionally and irrevocably Guarantee / Undertake
payment to Chennai Petroleum Corporation Limited of the unpaid balance of the Initial Security
Deposit up to an aggregate limit of Rs....
(Rupees
..................................
...only).

AND the Bank doth hereby further agree as follows :

i. The Guarantee / Undertaking herein contained shall remain in full force and effect during
the period that would be taken for the performance of the said Contract andoffor
Signature the
Bidder
With seal
 193
Page 96

claims of the Corporation relative thereto to be satisfied and / or discharged and until
the Corporation accordingly discharge this Guarantee / Undertaking subject, however,
that the Corporation shall have no claims under this Guarantee / Undertaking after the
midnight of . ................................ unless a notice of the claims under this Guarantee
/ Undertaking has been served on the Bank before the expiry of the said date.

ii. The Corporation shall have the fullest liberty without reference to the Bank and without
affecting in any way the liability of the Bank under this Guarantee / Undertaking, at any
time and / or at any of the terms and conditions thereof or relative to the said Initial
Security Deposit or to extent time of performance of the said Contract in whole or part or
to postpone for any time and / or from time to time any of the obligations of the
Contractor and / or the powers or remedies exercisable by the Corporation against the
Contractor and either to enforce or forbear from enforcing any of the terms and
conditions of / or governing the said Contract or the said Initial Security Deposit or the
securities available to the Corporation or any of them and the Bank shall not be released
from its liability under these presents and the liability of the Bank shall remain in full
force and effect notwithstanding any exercise by the Corporation of the liberty with
reference to any or all the matters aforesaid or by reason of time being given to the
Contractor or any other forebearance, act or omission on the part of the Contractor or of
any indulgence by the Corporation to the Contractor or of any other act, matter or thing
whatsoever which under the law relating to sureties could have the effect or releasing
the Bank from its liability hereunder or any part thereof.

iii. It shall not be necessary for the Corporation to proceed against the Contractor before
proceeding against the Bank and the Guarantee / Undertaking herein contained shall be
enforceable against the Bank notwithstanding the existence of any other undertaking or
security for any indebtedness of the Contractor to the Corporation (including relative to the
said Initial Security Deposit) and notwithstanding that any such Undertaking or security
shall at the time when claim is made against the Bank or proceeding taken against the
Bank hereunder, be outstanding or unrealised.

iv. The amount stated by the Corporation in any demand, claim or notice as the unpaid
balance of the said Initial Security Deposit for the time being shall as between the Bank
and the Corporation for the purposes of these present be conclusive of the said balance.

v. The liability of the Bank to the Corporation under this Guarantee / Undertaking shall
remain in full force and effect notwithstanding the existence of any difference or dispute
between the Contractor and the Corporation, the Contractor and the Bank and / or the
Bank and the Corporation or otherwise howsoever touching or affecting these presents or
the liability of the Contractor to the Corporation, and notwithstanding the existence of
any instructions or purported instructions by the Contractor or any other person on the
Bank not to pay or for any cause withhold or defer payment to the Corporation under
these presents, with the intent that notwithstanding the existence of such difference
dispute or instruction, the Bank shall be and remain liable to make payment to the
Corporation in terms hereof.

Signature of Bidder
With seal
 194
Page 97

vi. The Bank shall not revoke this Guarantee / Undertaking during its currency except with the
previous consent of the Corporation in writing and also agrees that any change in the
constitution of the Contractor or the Bank or the Corporation shall not discharge the
Bank‟s liability hereunder.

vii. Notwithstanding anything contained herein above, our liability under this guarantee
shall be limited to a sum of Rs..........................................
(Rupees
.......................................................................... only) unless a demand or claim
under this guarantee is made on us in writing on or before . ................................. , we
shall be discharged from all liabilities under this guarantee thereafter.

viii. The Bank doth hereby declare that Shri ..................................

.................................. (Name of the person signing on behalf of the Bank) who is
.................................. (his Designation) is authorised to sign this Guarantee /
Undertaking on behalf of the Bank and to bind the Bank thereby.

Dated the . ................................ day of ..................

20............ Yours faithfully,

For

Signature :

Name and designation :

Name of the Branch :

Address :

Signature of Bidder
With seal
 195
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APPENDIX – IX

PROFORMA OF BANK GUARANTEE FOR SECURITY DEPOSIT

1. In consideration of Messrs. Chennai Petroleum Corporation Limited, (hereinafter called the “the
Owner”) having agreed to exempt M/s……………………………………………… (herein after called “the said
Contractor(s) from the demand, under the terms and Conditions of work order / agreement dated
…………………………….. made between M/s. Chennai Petroleum Corporation Limited and M/s
………….for ………………………………….(hereinafter called “ the said work order / agreement), of security
deposit for the due fulfillment by the said contractor(s) of the terms and conditions contained in the
said work order agreement, on production of a Bank Guarantee for Rs. ……………………… (Rupees
............................................ only). We
..............……… (indicate the name of
bank) (hereinafter referred to as “ the Bank “), at the request of contractor(s) do hereby
undertake to pay to the Owner an amount not exceeding Rs…………………
(Rupees
only) against any loss or damage caused to or
suffered or would be caused to or suffered by the Owner by reason of any breach by the said
contractor(s) of any of the terms or conditions contained in the said work order / agreement.

2. We …………………………………………………., do hereby undertake to pay the amounts due and payable

(indicate the name of the bank) under this guarantee without any demur, merely on a demand
from the Owner stating that the amount claimed is due by way of loss or damage caused to or
would be caused to or suffered by the Owner by reason of breach by the said contractor(s) failure
to perform the said work order / agreement. Any such demand made on the bank shall be
conclusive as regards the amount due and payable by the bank under this guarantee. However,
our liability under this guarantee shall be restricted to an amount not exceeding Rs.
…………………….. (Rupees ............................................................. only)

3. We undertake to pay the Owner any money so demanded notwithstanding any dispute or
disputes raised by the contractor(s) supplier(s) in any suit or proceeding pending before any
Court or Tribunal relating thereto. Our liability under this present being absolute and unequivocal.

The Payments so made by us under this bond shall be a valid discharge of our liability for
payment thereunder and the contractor(s) / supplier(s) shall have no claims against us for making
such payment.

4. We ……………………………………………………….(indicate the name of the Bank) further agree that the

guarantee herein contained shall remain in full force and effect during the period that would be
taken for the performance of the said work order / agreement and that it shall continue to be
enforceable till all the dues of the Owner under or by virtue of the said work order

Signature of Bidder
With seal
 196
Page 99

/ agreement have been fully paid and its claims satisfied or discharged or till the Owner certificates that
terms and conditions of the said work order have been fully and properly carried out by the said
contractor(s) and accordingly discharges this guarantee. Unless a demand or claim under this
guarantee is made on us in writing on or before ………….. we shall be discharged from all liability
under this guarantee thereafter.

5. We…………………………(indicate the name of the Bank) further agree with the Owner that the
Owner shall have the fullest liberty without our consent and without affecting in any manner our
obligations hereunder to vary terms and conditions of the said work order / agreement or to extend
time of performance by the said contractor(s) from time or to postpone for any time or from time
to time any of the powers exercisable by the Owner against the said contractor(s) and to forbear or
enforce any of the terms and conditions relating to the said work order / agreement and we shall not
be relieved from our liability by reason of any such variation, or extension being granted to the said
contractor(s) or by any such matter or thing whatsoever which under the law relating to sureties
would, but for this provision, have effect of so relieving us.

6. The guarantee will not be discharged due to the change in the constitution of the Bank or the
contractor(s) / supplier(s).

7. We …… (indicate the name of the Bank) lastly undertake not to revoke this guarantee during its
currency except with the previous consent of the Owner in writing.

8. Notwithstanding anything contained hereinabove, our liability under this guarantee is restricted to
Rs. .................................... (Rupees . ............................................................. only) and
this guarantee is valid upto . ................................. and we shall be released and discharged from
all the liabilities hereunder unless a written claim for payment under this guarantee is lodged on us
on or before . ................................ irrespective of whether or not the original guarantee is returned
to us.

Dated the . ................................ day of ..................

20............

For ………………………..
(indicate the name of the bank)

Signature of Bidder
With seal
 197
Page 100

APPENDIX – X

PROFORMA OF INDENTURE FOR SECURED ADVANCE

This Indenture made the……………………day of …………………….. 20 . ........... between

……………….. ………………. (hereinafter called the Contractor which expression shall where the context
so admits or implies be deemed to include his executors, administrators and the assigns) of the
one part and Chennai Petroleum Corporation Limited (herein after called the Owner , which
expression shall where the context so admits or implies be deemed to include its successors in office
and assigns) of the other part.

WHEREAS by an agreement No. …………………… dated ………….(hereinafter called the said

agreement) the contractor has agreed ………………………………………………………… and WHEREAS the
Contractor has applied to the Chennai Petroleum Corporation Limited that he may be allowed
advance on the security of materials absolutely belonging to him and brought by him to site of the
works, the subject of the said agreement for use in the construction of such of the works as he has
undertaken to execute at rates fixed for the finished work (inclusive of the cost of materials and labour
and other charges) and whereas the Chennai Petroleum Corporation Limited has agreed to
advance to the Contractor an amount up to Rs……………(Rupees
……………….................................….. only) on the security of the quantities and other particulars
of the materials on the security of which the advance or advances are made as detailed in the
secured advance account forming part of the running account bill referred from time to time and
signed by the Contractor for the said works.

NOW THIS INDENTURE WITNESSETH that in pursuance of the said agreement and in
consideration of amounts aggregating to the sum of Rs ……(Rupees ……………..only) on or after the
execution of these present paid to the Contractor by the Chennai Petroleum Corporation Limited
(The receipt whereof the Contractor hereby acknowledge) Contractor both hereby covenant and
agree with the Chennai Petroleum Corporation Limited and declare as follows:

1. That the said sum aggregating to Rs.….........…. (Rupees…. ................................…………….. only)

so advanced by the Chennai Petroleum Corporation Limited to Contractor as aforesaid shall be
employed by the Contractor in or towards expediting the execution of the said works and for no
other purposes whatsoever.

2. That the materials detailed in the said Running Account Bills which have been offered to and
accepted by the Chennai Petroleum Corporation Limited as Security are absolutely the
Contractor‟s own property, and free from encumbrances of any kinds and the Contractor will not
make any application for or receive a further advance on the security of materials which are not
absolutely his own property and free from encumbrances of any kind and the contractor hereby
agrees to indemnify the Chennai Petroleum Corporation Limited against all claims to any
materials in respect of which an advance has been made to him as aforesaid.

3. That the materials detailed in the said Running Account Bills (hereinafter called the said
materials) shall be used by the Contractor solely for the execution of the said works in accordance with
Signature of Bidder
With seal
 198
Page 101

the direction of the Engineer-in-Charge in terms of the said agreement.

4. That the Contractor shall make at his own cost all necessary and adequate arrangement for the
proper watch, safe custody and protection against all risk of the said materials and that until used in
construction as aforesaid the said materials shall remain at the site of the said works in the
Contractor‟s custody and on his own responsibility and shall at all times be open to inspection. In the
event of the said materials or any part thereof being stolen, destroyed or damaged the Contractor
will forthwith replace the same with other materials of like quality or repair and make good the same
as required by the Engineer-in-charge.

5. That the said materials shall not on any account be removed from the site of the said works
except with the written permission of the Engineer-in-Charge or an officer authorised by him on that
behalf.

6. That the advance shall be repayable in full when or before the Contractor receives payment from
the CHENNAI PETROLEUM CORPORATION LIMITED of the price payable to him for the said works
under the terms and the provisions of the said agreement provided that if any intermediate
payments are made to the Contractor on account of the work done then on the occasion of each
such payment the Chennai Petroleum Corporation Limited will be at liberty to make recovery from
the Contractor‟s bill for such payment by deduction there from the value of the said materials then
actually used in the construction and in respect of which recovery has not been made previously the
value for this purpose being determined in respect of each description of materials at the rates at
which the amount of the advances made under these presents were calculated.

7. That if the contractor shall at any time make any default in the performance or observance in any
of the term and provisions of the said agreement the total amount of the advances or advance that he
may still be owing to the Chennai Petroleum Corporation Limited together with the interest thereon at
twelve percent per annum from the date or respective dates of such advance or advances to the
dates of payment with all costs, charges, damages and expenses incurred by the Chennai
Petroleum Corporation Limited in the recovery thereof or the enforcement of the security or
otherwise by reason of the default of the Contractor shall become payable by the Contractor
hereby covenants and agrees with the Chennai Petroleum Corporation Limited to repay the same
respectively to him accordingly.

8. The Contractor hereby gives charge of all the said materials for the repayment to the Chennai
Petroleum Corporation Limited of the said sum aggregating to Rs. …………… (Rupees
……………………….only) and all costs, charges, damages and expenses payable under the agreement
and without prejudice to the powers contained therein if and whenever the money owing shall not
be paid in accordance herewith the Chennai Petroleum Corporation Limited may at any time
thereafter adopt all or any of the following courses as he may deem best:-
(a) Seize and utilise said materials or any part thereof in the completion of the said works on
behalf of the Contractor in accordance with the provisions in this behalf contained in the said
agreement debiting the contractor with the actual cost of effecting such completion and the
amount due in respect of advance under these presents and crediting the Contractor with the
value of work done as if he had carried it out in accordance with said agreement and the rate
thereby provided if the balance is against the contractor he is to pay the same to Chennai
Signature of Bidder
With seal
 199
Page 102

Petroleum Corporation Limited on demand.

(b) Remove and sell by the public auction the seized materials or only part thereof and out of the
money arising from the sales retain all the sums aforesaid repayable to the Chennai Petroleum
Corporation Limited under these presents and pay over the surplus (if any) to the Contractor.

(c) Deduct all or any part of the money owing out of the security deposits or any sum due to the
contractor under said agreement.

9. That in the event of any conflict between the provisions of these presents and the said
agreements provisions of the said agreements shall prevail and in the event of any dispute or
difference arising the construction or effect of these presents the settlement of which has not been
hereinbefore expressly provided for, the same shall be referred to arbitration as provided in the said
agreement.

IN WITNESS WHEREOF............................................................... and Chennai Petroleum

Corporation Limited by the order and under the directions of Chennai Petroleum Corporation
Limited have herein to set their respective hands the day and year first above written.

Signed, sealed and delivered Signature :

by the said Contractor Name :
in the presence of witness Address :

Witness (1)

(2)

Signed by the Order and direction of Signature :

the Chennai Petroleum Corporation Limited Name :
in the Presence of Witness Address :

Witness (1)

(2)

Signature of Bidder
With seal
 200

Page 103

APPENDIX – XI

PROFORMA OF INDEMNITY BOND

WHEREAS M/s………………………(hereinafter called the contractor) have entered into a

contract No …………….dated …………..with CHENNAI PETROLEUM CORPORATION LIMITED
(hereinafter called the company) for the work of…………………………………

WHEREAS the said contract agreement provides for an indemnity Bond to be given by the
contractor for the supply by the company to the contractor for……………………………….

WHEREAS the company has now issued and the contractor has now received …………………
valued at Rs ……………..as in the Schedule hereunder.

WHEREAS the contractor has agreed to keep the…………….. in its safe custody and use them or
cause them to be used exclusively for the work specified in the said contract agreement.

We ………………………….hereby indemnify and keep indemnified M/s. Chennai Petroleum

Corporation Limited harmless against loss of or damage to the and consequential loss arising
out of such loss or damage received by us and mentioned in the Schedule hereunder, to the
extent of Rs………………………..

This Indemnity Bond shall not be discharged and continues to be valid and enforceable until the
said contract agreement No ………………..dated …………..is duly performed by the contractor in
accordance with the terms and conditions thereof.

SCHEDULE

SPECIFICATION AND QUANTITIES OF………………………..

RECEIVED BY THE CONTRACTOR. SIGNATURE DATED :

PLACE :

WITNESSES :

1.

2.

Signature of Bidder
with seal
 201

Format A

Declaration for Acceptance of Tender Document

I/ we confirm that we have quoted the rates in the tender considering Inter-alia the
following documents, as applicable for the subject tender:

1. Price bid (BoQ) sheets

2. Techno-Commercial Bid Document
3. General Conditions of Contract (GCC), Other Conditions of Contract,
4. Addendum / Corrigendum (if any)
5. All other attachments, drawings, specifications etc. which are part of the tender
document.

I/we hereby certify that we have fully read and thoroughly understood the tender
requirements and accept all terms and conditions of the tender including all documents
mentioned above and all corrigendum/addendum issued. Our offer is in confirmation to
all the terms and conditions of the tender including all corrigendum/addendum and
minutes of the pre-bid meeting, if any except the deviations stated in format of
“Deviations / Exceptions”. In the event of award of contract to us, the complete tender
document along with addendum /corrigendum, if any as uploaded by CPCL at e-tender
portal / GeM portal (as applicable) under the subject referring to the above-mentioned
tender number shall be considered for constitution of Contract Agreement.

I/ we declare that none of the electronic documents have been tampered with. In case
of tampering of electronic documents, the bid shall be rejected outright and EMD
forfeited without prejudice to any other rights or remedies available to CPCL.

I / we further undertake and confirm that all the documents submitted by us along with
the bid are true and genuine to the best of our knowledge and belief. In case at any time,
any document / information furnished by us are found to be forged / false / fabricated /
misleading, we shall be solely liable for any legal consequences, penal actions including
holiday listing by CPCL.

Signature of the bidder with stamp

Name : ………………………..…… Designation : ………………….…………………….

Company Name : ………………...
Contact Number : ……………….………………….
Email ID : ………………………….…………………
 202

Format B
Information about the bidder

Sl.
Description Details
No.
1 Name of Bidder /
Organisation
2 Name & Designation of
the Person in whose
name Power of
Attorney is given for
this tender
3 Name & Designation of
the Person in whose
name DSC has been
taken and the offer is
being submitted for this
tender
Details of the Contact Person / alternate person for this Tender
Name
Address

Phone No.
Mobile No.
E-mail ID
5 ESI Code No.
6 EPF Code No.
7 Vendor code at CPCL
8 IT Pan No.
9 GST Registration No.
 203

Format C
Schedule of deviations

Bidder may stipulate exceptions and deviations to the tender document, if considered
unavoidable as per the following format:

Page No. of Clause No. of

Sl
tender tender Subject Deviation
no
document document
COMMERCIAL

1.

2.

3.

TECHNICAL

1.

2.

3.

All exceptions/deviations taken by the Bidder to the stipulations of the tender document
shall be brought out in the Techno-Commercial bid (and not in the Tender document or
Price Bid) strictly as per this format.

Note: 1) If the above table is left blank (unfilled), it will be construed that the bidder has
not taken any deviation to this tender.

2) Any exceptions/deviations brought out elsewhere in the bid shall not be

construed as valid.

Signature of the bidder with stamp

 204

Format D
Pre-qualification details submitted by bidder

S.No. Requirement Details

1 EMD details

2 PQ Experience criteria

2.1 Reference # 1

a. Work order ref.,

b. Work order date

c. Name of the job

Work order amount (excl.

d.
GST)

e. Executed value (excl. GST)

f. Completion date of job

g. Name of the client

Name, Designation, email

h.
address, e-mail id, contact
 205

phone nos. of Work order

and Completion certificate

issuing authority

2.2 Reference # 2

a. Work order ref.,

b. Work order date

c. Name of the job

Work order amount (excl.

d.
GST)

e. Executed value (excl. GST)

f. Completion date of job

g. Name of the client

Name, Designation, email

address, e-mail id, contact

h. phone nos. of Work order

and Completion certificate

issuing authority

2.3 Reference # 3

a. Work order ref.,

b. Work order date

 206

c. Name of the job

Work order amount (excl.

d.
GST)

e. Executed value (excl. GST)

f. Completion date of job

g. Name of the client

Name, Designation, email

address, e-mail id, contact

h. phone nos. of Work order

and Completion certificate

issuing authority

3 PQ Financial criteria

a Turn over details for

2020-21 Rs.

2021-22 Rs.

2022-23 Rs.

b Networth for 22-23

4 Technical PQ criteria, if any

 207

Format E

Declaration for confidentiality clause w.r.t compliance with cpcl’s insider trading code

During the contract / engagement with CPCL, the organization, its employees, agents,
other contractors, sub-contractors and their employees, etc., may be exposed to certain
unpublished price sensitive information (UPSI), that is not generally available to the public
or in public domain and which upon becoming generally available is likely to materially
affect the price of the securities of CPCL traded in Stock Exchanges. Such UPSI shall be
held by the organization, its employees, agents, other contractors, sub-contractors and
their employees etc., in strictest confidence and shall not be disclosed to any other party
except on need to know basis and with the prior consent of CPCL.

It is hereby further cautioned that, the organization, its employees, agents, other
contractors, sub-contractors, their employees and immediate relatives thereof, should not
trade in the securities of CPCL while in possession of such UPSI or communicate such
UPSI to any person except in furtherance of legitimate purposes, performance of duty or
discharge of legal obligations. Any trades in securities of CPCL, while in possession of
any UPSI would be presumed to have been motivated by the knowledge and awareness
of the UPSI and liable for penal action under this contract / engagement as well as under
SEBI (Prohibition and Insider Trading) Regulations, 2015. It is therefore advised to
familiarize with the “Code for Prevention of Insider Trading in the Securities of CPCL”,
copy of which is hosted on the website www.cpcl.co.in/policies.

Accordingly, it must be ensured that any UPSI, whenever received from the CPCL,
(a) shall be used solely for the purpose for which it is being disclosed;
(b) shall be preserved and the secrecy of such information shall be maintained;
(c) shall not be disclosed to any third party;
(d) shall be kept securely and properly protected against theft, damage, loss and
unauthorized access (including access by electronic means) by deploying means
similar to those being used to secure their own confidential information;
(e) To notify CPCL immediately upon becoming aware that any of the confidential
information has been disclosed to or obtained by a third party.

The organization shall undertake that its employees & their immediate relatives, agents,
sub-contractors and any other person associated with said contract / engagement does
not violate any of the provision of the SEBI (Prohibition of Insider Trading) Regulation,
 208

2015. Any violation shall be considered as breach of terms of contract / engagement and
CPCL shall take necessary action for such breach in addition to reporting it to SEBI for
taking necessary action under SEBI (Prohibition of Insider Trading) Regulations, 2015.”

NOTE: The above Confidentiality Clause will also be included in the contract work order.

Signature of the bidder with stamp

 209

Format F
Declaration for the purpose of Section 206AB & 206CCA of Income-tax Act, 1961
TO WHOMSOEVER IT MAY CONCERN
Name of the Vendor/Contractor/Supplier:
Address:

PAN:
SAP Vendor Code:
Financial Type of Income- Due date Date of Aggregate of Tax
tax u/s filing of Deducted at Source
Year (recent Return 139(1) / (TDS) and Tax
Return Income-
2 years for Collected at Source
Acknowle 139 (5) tax return (TCS) claimed in
which return
is filed) dgement Income-tax Return is
not less than Rs.
Number
50,000 (Y/N)

Original
FY 2020-21

Revised

FY 2021-22 Original

Revised

FY 2022-23 Original
 210

I/We_____________________(Name of the person signing the declaration) hereby

declare that particulars provided are true and correct.

I/We understand that based on this declaration, CPCL will not apply higher rate of
TDS/TCS as per provisions of Section 206AB and 206CCA respectively. In case any
of the particulars submitted appears to be false or are found to be false and the Income-
tax Authorities raises any tax demand including interest and penalty on account of
non-compliance of the provision of Section 206AB or 206CCA, as the case may be,
w e hereby undertake to keep CPCL indemnified against any such demand of tax,
interest and penalty.

I/We hereby declare that I/we am/are competent to sign and submit this
declaration.

For
Date :
Place : [ Authorized Signatory]
 211

Format G

Compliance with the government order on procurement from bidders from countries
sharing land border with india

I. Any bidder from a country which shares a land border with India will be
eligible to bid in this tender only if the bidder is registered with the Competent
Authority.

Competent Authority for the purpose of this registration shall be the

Registration Committee constituted by the Department for Promotion of
Industry and International Trade (DPIIT). Registration with the competent
authority shall be valid at the time of submission of bid and at the time of
acceptance of bids. Where applicable, bidder shall attach copy of valid
registration certificate issued by the Competent Authority.
II. "Bidder" (including the term 'tenderer', 'consultant' or 'service provider' in certain
contexts) means any person or firm or company, including any member of a
consortium or joint venture (that is an association of several persons, or firms
or companies), every artificial juridical person not falling in any of the
descriptions of bidders stated hereinbefore, including any agency branch or
office controlled by such person, participating in a procurement process.
.
III. "Bidder from a country which shares a land border with India" for the purpose
of this Order means: -

a. An entity incorporated, established or registered in such a country; or

b. A subsidiary of an entity incorporated I established or registered in such

a country. or

c. An entity substantially controlled through entities incorporated,

established or registered in such a country; or

d. An entity whose beneficial owner is situated in such a country; or

e. An Indian (or other) agent of such an entity; or

f. A natural person who is a citizen of such a country. or

g. A consortium or joint venture where any member of the consortium or

joint venture falls under any of the above
 212

IV. The beneficial owner for the purpose of (III) above will be as under:
1. In case of a company or Limited Liability Partnership, the beneficial
owner is the natural person(s), who, whether acting alone or together,
or through one or more juridical person, has a controlling ownership
interest or who exercises control through other means.
Explanation-
a. "Controlling ownership interest" means ownership of or
entitlement to more than twenty-five per cent. of shares or capital
or profits of the company;

b. "Control" shall include the right to appoint majority of the directors.

or to control the management or policy decisions including by
virtue of their shareholding or management rights or shareholder’s
agreements or voting agreements;

2. In case of a partnership firm, the beneficial owner is the natural person(s)

who, whether acting alone or together, or through one or more juridical
person, has ownership of entitlement to more than fifteen percent of
capital or profits of the partnership;

3. In case of an unincorporated association or body of individuals, the

beneficial owner is the natural person(s), who, whether acting alone or
together, or through one or more juridical person, has ownership of or
entitlement.to more than fifteen percent of the property or capital or profits
of such association or body of individuals;

4. Where no natural person is identified under (1) or (2) or (3) above, the
beneficial owner is the relevant natural person who holds the position of
senior managing official;

5. In case of a trust, the identification of beneficial owner(s) shall include

identification of the author of the trust, the trustee, the beneficiaries with
fifteen percent or more interest in the trust and any other natural person
exercising ultimate effective control over the trust through a chain of
control or ownership.

V. An Agent is a person employed to do any act for another or to represent another

in dealings with third person.
 213

Certificate by the Bidder:

(Bidder to choose from the following terms according to their applicability & put tick
mark against the applicable one).

o Certified that "I have read the clause regarding restrictions on procurement from
a bidder of a country which shares a land border with India. I certify that this
bidder is not from such a country”

( or)

o If from such a country, has been registered with the Competent Authority.

“I hereby certify that this bidder fulfills all requirements in this regard and is
eligible to be considered. [Where applicable, evidence of valid registration by
the Competent Authority shall be attached]”.

Bidders shall submit the above certificate duly signed and stamped as part of the
Techno commercial bid failing which the offer shall not be considered. If the certificate is
found to be false, this would be a ground for immediate termination of Contract and
further legal action.

Signature of the bidder with stamp

 214

Format H1
Declaration of Local Content
(to be submitted on Company’s Letterhead for jobs upto Rs.10 Cr)
Tender ID -………………………….

Certification by bidder

I_______________________, Son/Daughter of _______________________, do

solemnly affirm and state as under:

1. That I am the__________________________ of _________________and I am duly

authorized to furnish this undertaking declaration on behalf of__________________ _.

2. That___________________ has submitted its bid no __________dated __________

against bidding document No _____________dated_______ for________ ____ ____
____ ____ ____ ____ ____ ____ ____ _item/works for ________ _____________

3. That the company is fully aware of the provisions of Policy to Provide Purchase
Preference (linked with local content) (PPP-MII) dated 17.11.2020 and amendments
thereof.

4. We hereby confirm that our offer is achieving the local content (LC) of

Declaration of Local Content (Local means India)

[ ] Equal to or above 50%
[ ] 20 % and above but upto 50 %
[ ] Less than 20 %
(Tick whichever is applicable)
5. I confirm that I am aware of the implication of the above undertaking and our liability
on account of wrong declaration.

(Authorized signatory)

Note: This undertaking shall be certified by the authorized signatory of the bidder,
signing the bid. Preference is applicable only when Local Content is minimum 50 %
 215

Format H2
Declaration of Local Content
(to be submitted on Company’s Letterhead for jobs of Rs. 10 Cr and above)

I_______________________, Son/Daughter of _______________________, do

solemnly affirm and state as under:

1. That I am the__________________________ of _________________and I am duly

authorized to furnish this undertaking declaration on behalf of__________________ _.

2. That___________________ has submitted its bid no __________dated __________

against bidding document No _____________dated_______ for________ ____ ____
____ ____ ____ ____ ____ ____ ____ _item/works for ________ _____________

3. That the company is fully aware of the provisions of Policy to Provide Purchase
Preference (linked with local content) (PPP-MII) dated 17.11.2020 and amendments
thereof.

4. We hereby confirm that our offer is achieving the local content (LC) of

Declaration of Local Content (Local means India)

[ ] Equal to or above 50%
[ ] 20 % and above but upto 50 %
[ ] Less than 20 %
(Tick whichever is applicable)
5. I confirm that I am aware of the implication of the above undertaking and our liability

on account of wrong declaration.

(Authorized signatory)
 216

Certification by the Statutory Auditor / Chartered Accountant of the bidder

We,___________________, a CA firm having our registered office address

_____________ _____________________________and certificate number

_____________ certify that we are statutory auditor of the company

M/s________________________, having its registered office at ___________________.

OR

We,___________________, a CA firm having our registered office address

_________________and certificate number ____________________ certify that

statutory auditor is not mandatory for the company. We,___________________, a CA

firm having our registered office address __________________________and certificate

number _________________ certify that we are statutory auditor of the company

M/s________________________, having its registered office at

____________________________

OR

M/s__________________, having its registered office at __________________ as per

prevailing law and we are practicing Chartered Accountant, not being employee/ Director

and not having any interest in the company.

We have understood the provisions of Policy Purchase Preference (linked with local

content) (PPP-MII) dated 17.11.2020. We hereby confirm that the local content (LC)

details certified above by M/s _________________________

(Statutory auditor / Chartered Accountant of the bidder)

Note: This undertaking shall be certified by the authorized signatory of the bidder, signing
the bid. Preference is applicable only for suppliers claiming minimum 50 % Local Content.
 217

Format I

Declaration for independent ESI

Strike out Not Applicable Clause / section and furnish relevant document.

(a) If Available:

If independent ESI code is available, please indicate code _______________________

and annex the copy of the same.

(b) If independent ESI code is presently not available:

Party will be governed by the following:

“In case job is awarded, party will acquire independent ESI code within 15 days of the
date of issue of Work order. The gate pass for labour shall be issued only after furnishing
the independent ESI code to Engineer-in-Charge (EIC). In case party fails to acquire the
independent ESI code, EIC reserves the right to cancel the work order, forfeit the EMD
and initiate suitable penal action as deemed fit by CPCL.

(c) In case of exemption claim:

In case bidder claims exemption from obtaining independent ESI code, bidder must
submit documentary evidence towards the same along with the bid. CPCL will examine
the submitted documents during tendering and convey the decision to the party. If the
exemption claim is accepted by CPCL, the party will have to furnish an indemnity bond
indemnifying CPCL against any eventuality regarding ESI becoming applicable to the
party during the tenure of the contract. In case the exemption claim of party is not
acceptable to CPCL the same will be conveyed to the party and party will be governed
by above clause (b). In response to CPCL communication conveying non acceptance of
party’s exemption claim, party will submit acceptance to above clause (b).

In case party does not agree to any of the above clauses (a), (b) or (c) the offer of party
shall be liable for rejection.

(Signature of bidder with stamp)

 218

Format J
Consent Letter Format for E-Payment

(On the Letterhead of the Vendor / Contractor / Supplier)

Date :

To
Chennai Petroleum Corporation Ltd
Manali
Chennai

Dear Sir,
With reference to the Tender/P.O./W.O / Contract Ref. No.________________
Dtd.____________ issued to us by CPCL, we hereby give our consent to accept the
related payments of our claims/ bills on CPCL through Cheques or Internet based online
E-payments system at the sole discretion of CPCL. Our Bank account details for the said
purpose are as under:

S.No. Particulars Details

1. Name and Address of the
Beneficiary
2. Account No. of Beneficiary
3. Account classification (CA / CC-11
or 29) & SB-10 as per cheque leaf.
4. Name and address of the Bank
Branch (where payments are to be
sent by CPCL)
5. Branch Name / Code
6. The 9 Digit MICR code of the
Branch (as appearing
on the MICR cheque)
7. IFSC Code of the Bank Branch for
RTGS mode
8. IFSC Code of the Bank Branch for
NEFT mode
9. E-mail ID of Beneficiary
10. Any other Particulars (to be advised
by Beneficiary for the E-payments
purposes
11. Permanent Account Number (PAN)
12. Mobile number (for sms alerts)

A blank copy of a cancelled cheque / photocopy of a cancelled cheque relating to the

above account number for verifying the accuracy of the bank account details is enclosed.
 219

A copy of PAN Card duly attested by authorized signatory for verifying the accuracy of
the PAN is enclosed.

I/We hereby declare that the particulars given above are correct and complete.

Date: Signature of Account Holder

Place: with Company Stamp (If a Company)

Encl: One Cheque / Photocopy of Cheque duly Cancelled & Copy of PAN Card.

***We hereby confirm that the above bank account details of beneficiary are correct in all
respects and the account of Beneficiary (CPCL Vendor) is maintained at our bank branch.

(Name of the Bank & Branch)

Authorized Signatory

***Verification required only in case (a) vendors not providing a cancelled cheque leaf or
if vendors name is not printed/appearing on the cancelled cheque leaf submitted to CPCL
Office. (b) Change in existing bank details.