Important Contract Clauses

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AFCONS Infrastructure Ltd

KRCL – Construction of 16 Bridges on Katra-Dharam


Section of USBRL project in J&K
Job No: 2629

PROJECT STATAUS

Katra-Dharam Section of USBRL


August’2018
SALIENT FEATURES

Clause
S No. Clause Name Clause Description
No.
Construction of Bridge no - 34, 38, 39, 40, 41, 42, 43, 53, 55, 56, 57, 58, 59, 85, 87 & 88
on Katra-Dharam section of Udhampur-Srinagar-Baramulla Rail Link Project in state of
1 1.0 Name of Work Jammu & Kashmir.

Konkan railway Corporation Ltd, Satyam Complex, Marble Market, Greater Kailash, P.O
2 1.0 Principal Employer Sainik Colony, Jammu.
3 1.0 Employer Konkan Railwayy Corporation Ltd (KRCL), CBD Belapur, Navi Mumbai

4 1.0 Location of Work Katra-Dharam section of Udhampur-Srinagar-Baramulla Rail Link project, J&K.

5 Contract Value Rs. 1,219.76 Crs.

6 15.1 Currency of Payment Indian Rupees.

7 Bid Submission Date 01st February 2016.

8 - Bid Opening Date 29th February 2016

9 - Date of LOA 16th March 2016 (KR/PD/J&K/HO/Tender/Bridges/9/2015/Corres , dtd 16.03.2016)

10 Signing of Agreement 28th March 2016 (KR/PD/J&K/HO/Tender/Bridges/7/2016/Corres , dtd 28.03.2016)

11 Commencement Date 16th March 2016 i.e. date of LOA

12 4.2 Project Duration 30 Months from date of LOA. (i.e. Schedule completion date, 15th September 2018)
GENERAL CONDITIONS OF CONTRACT

- OVERVIEW
General Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

GCC Notice of happening of any such event within 30 days from the date of occurrence. Only Time and
1 Force Majeure
17 escalation for extended period.

(i) Extension due to modification- Time will be granted. Silent on Cost part.
GCC Extension of Time in (ii) Notice of the happening of any such event is given by either party to other within 30 days
2 Contracts
17-A from ..Extension for delay not due to Railway or contractor- Only Time can be granted .
(iii) Extension for delay due to Railways- Only Time will be granted.

If the contractor fails to complete the works within the time as specified in contract, Railway will
GCC EOT For Delay be entitled to recover damages as a sum equivalent to ½ of 1% of the contract value of works per
3 Due To Contractor
17-B each week or part of the week. For the contract valued above 2 lakhs, total amount of liquidated
damages shall not exceed 10% of first 2 lakhs and 5% of balance.( Max 60.98 Crs)
GCC
4 Suspension of work by order of Engineer
36. (1)
Suspension of Works
GCC
5 If suspension Exceeds 14 days contractor shall be entiltled for EOT with Cost
36. (2)

GCC Suspension Lasting More Contractor may serve a written notice on Engineer requiring permission within 15 days from the
6 Than 3 Months
36. (3) receipt of suspension of works to the Engineer.

Rates entered in accepted SOR of the contract are intended to provide for works duly and properly
7 GCC 37 Rates For Items Of Works
completed in accordance with GCC, SCC, specifications and drawings.

Any item of work by Contractor on instructions of Engineer which is not in accepted SOR shall be
GCC
8 Rates For Items Of Works executed at rates set forth in the SOR of Railway modified by Tender percentage and if it not in the
39. (1) latter, then at the rate agreed upon between Engineer and Contractor before execution.
General Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision


Monthly Statement of Contractor shall prepare and Furnish detailed particulars of any additional expenses which the
9 GCC 43(1) Claims consider himself entitled on every month.
GCC Rates accepted by Railway Administration shall hold good till completion of work and no additional
10 Validity
46A.3 individual claim shall be admissible on account of fluctuations.
For extension under GCC Clause 17-A, price adjustment shall be applicable upto the stipulated date
of completion of work including the extension granted. For extension due to contractor under GCC
GCC Price Variation During Clause 17 –B-
11 Extended Period of a. In case of increase in Indices, Price adjustment limited to amount payable as per Indices
46 A.10 Contract applicable to last month of completion or extended period under GCC Clause 17-A.
b. In case indices fall, lower indices shall be adopted for price adjustment for period of extension
under GCC Clause 17-B
a. As soon as work is completed and satisfactory passed any final tests , the EIC shall issue
certificate of Completion by indicating the date of completion of whole /part of work.
Certificate of completion
12 GCC 48(1) of Works b. Defect Liability Period(DLP) will start form completion date as indicated in completion certificate.
DLP /maintenance period in this contract is same i.e. 12 Months
c. EIC may also issue such a certificate to any part of Work.
Dispute between parties to construction or operation of contract, if Railway fails to make a decision
GCC Demand For
13 within 120 days, contractor after 120 days but within 180 days of presenting final claim on disputed
64. (1) Arbitration
matter shall demand in writing that dispute be referred to arbitration.
In cases where total value of claims added altogether does not exceed Rs. 25,00,000, the Arbitral
GCC Appointment of
14 Arbitrator Tribunal shall consist of Sole Arbitrator who shall be a Gazetted Officer of Railway, nominated by the
64. (3) general manager and shall be appointed within 60 days from day of demand for arbitration.
SPECIAL CONDITIONS OF CONTRACT
PART-A
- OVERVIEW
Special Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

SCC Part-A Rates given in Schedule to Contract and percentage rate quoted in contract shall be inclusive of all
1 Enabling Works
17.1 enabling works.

SCC Part-A Priority of Documents i) The agreement for works , ii) The Letter of Acceptance, iii) SCC Part A &B, iv) IRS GCC 2014,
2
20.1 And Specifications v) Approved Drawings, vi) Technical Specifications, vii) BOQ, viii) Instruction to Tenderer/s

SCC Part-A Programme of Construction Detailed Programme of work not later than 30 days after date of receipt of LOA and detailed
3 21 Method statement within 45 days of issue of LOA to KRCL for approval.

If at any time KRCL comes to a conclusion that changes in the Works under the contract are
SCC Part-A Delay and Extension of
4 required to be made then the Contractor shall accept the decision as final and not challenge the
23.1 Contract Period
same. Contractor will be entitled to actual costs incurred by him on account of such decision.
SCC Part-A No Claim / compensation whatsoever on account of deviation/ modification in drawings with
5 Drawings for works
22.0 respect to tender
SCC Part-A Delay and Extension of
6 In case of Force Majeure, Price variation is payable as per Price variation clause.
23.3 Contract Period
SCC Part-A
7 Maintenance/ DLP 12 months from the date of issue of completion certificate by the E-I-C.
24.1
SCC Part-A
8 Price Variation Adjustment for Variation in prices of several components like material, labour, etc
26
Base period will be for the month of opening of the Tender [Technical Bid] and will be for the
SCC Part-A
9 Price Variation month of opening of the the concerned negotiated offer in the event of accepting the tender by
26.1
Corporation is on the basis of negotiated offer.
Price variation for Labour, Material [other than steel & cement] & Fuel :
SCC Part-A General Labour, L = R x [l - lo]/lo x P/100
10 26.5 Price Variation Materials, M = R x [W - Wo]/Wo x Q/100
Fuel, U = R x [F - Fo]/Fo x Z/100
Special Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

Price Variation for Cement :


Mc = Rc x [Wc - Wco]/Wco
where,
Mc = Amt. of price variation in Cement payable.
SCC Part-A Price Variation
11 Rc = Value of Cement supplied & consumed as per on account bill in the quarter under
26.6.1 for Cement
consideration.
Wco = WPI of cement & lime as published in RBI Bulletin for the base period.
Wc = WPI of cement & lime as published in RBI bulletin for the avg. of the quarter under
consideration.

Price Variation for Steel :


Ms = Q [Bs - Bso]
where,
Ms = Amt. of price variation in Steel payable.
SCC Part-A Price Variation
12 Q = Weight of steel in Tonnes for the month under consideration.
26.6.2 for Steel
Bs = SAIL's ex-works/ ex plant base price + excise duty, on the first day of the month in which the
steel was purchased.
Bso = SAIL's ex-works/ ex plant base price + excise duty, on the first day of the month in the Tender
was opened.

SCC Part-A
13 Mobilization Advance 10% of CV (i.e. Rs 122 Crs.). Rate of interest shall be 4.5% above the base rate of State Bank of India
27.1.1

Shall commence when 15% of the OCV of the work has been paid and it will be completed by the
time 75% of OCV has been paid.
SCC Part-A Mobilization Advance
14 Rate of Recovery = Mobilization advance/(75% contract value – 15% contract vale);
27.1.5 Recovery
Cumm. Amount of Recovery
= {Cumm Bill amount – 15% contract value} x Rate of Recovery + Interest due as Applicable

SCC Part-A Advance against Plant 10% of CV , payable at an interest rate of 4.5% above base rate of State Bank of India. Paid for 75%
15 28.0 & Machinery purchase value of New Plant & Machineries.
Special Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

SCC Part-A On submission of On Account Bill, payment of 75% of bill amount within 5 days. Balance amount
16 Payment of Bills
30.3 within next 14 days after scrutiny & acceptance of bill.

SCC Part-A 5% of CV (i.e. Rs. 60.99 Crs.). If CV increases by more than 25% of original CV then an additional
17 Performance security
31 .BG amounting to 5% of excess value shall be deposited.

SCC Part-A
18 Taxes and Duties WCT as applicable 15 days prior to the date of opening of tender shall be considered in the Bid.
33.1

SCC Part-A Corporation will deduct any other tax from bill at the rate as applicable as per rules framed by
19 Taxes and Duties
33.2 Govt./local bodies from time to time.

SCC Part-A Tender shall be required to pay Labour welfare cess at the rate of 1% of cost of construction work
20 Taxes and Duties
to be deducted from each bill.
33.3

SCC Part-A
21 Taxes and Duties KRCL at the time of arranging the payments to the contractor shall deduct income tax at source.
33.4

SCC Part-A Variation in The Contractor shall not be entitled for any compensation whatsoever on this account for increase
22 34.2 Quantities in agreemental value up to (+) 25% and the contract schedule rate shall remain same.

For quantities beyond [+] 25% following will be applicable :


▪ For 1st 15% increase - rates will have a reduction of 2% in the incremental value of the
SCC Part-A Variation in agreement.
23 34.2.1 Quantities ▪ For the next 10% increase in the value - rates will have an additional reduction of 2% in further
incremental value of the agreement.
▪ For rate beyond 50% of the overall agreement - rates will be mutually agreed.
Special Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

SCC Part-A Variation in For minus variation, contractor will not be entitled for any compensation, however will be paid
24 34.2.3 Quantities only for the actual qty. of work at accepted rates.

SCC-Part A Environment & Environmental and Forest Clearances for the project will be obtained by the Railways.
25
47.1.5 Forest Clearances Organization of work in such a way that ecology of the area is least affected adversely.

Shall consist of panel of three [3] Gazetted Railway officers not below JA grade or two [2] Railway
SCC Part -A Standing Arbitral Gazetted officers not below JA Grade and a retired railway officer, retired not below the rank of
26
55.1 Tribunal SAG officer as the Arbitrators. ( Clause Amended by Govt of India, Arbitration and reconciliation
act )

SCC-Part-A Reference to Preparation and furnishing to EIC and CE of project, once in every 6 months an account giving full
27 55.5.1 Arbitration and detailed particulars of all claims for additional expenses.
SPECIAL CONDITIONS OF CONTRACT
PART-B
- OVERVIEW
Special Conditions Of Contract at a Glance

S No. Clause No. Contract Clause Contract Provision

No claim. However any additional items required to be executed to deal with adverse geology &
SCC Part-B Geological Condition
unusual occurrence; the same shall be paid as per the actual input of the resources & with prior
4.1 approval of KRCL.

SCC Part-B Measurements for Payment on the basis of plan area of foundation in approved drawing and quantity will be product
8.9 Excavation for Open Foun. of area of foundation and average depth of Trench. No payments for slopes and slips.

SCC Part-B Splicing of


Shall be by lapping only or by approved type of couplings arranged by contractor at his own cost.
12.5.3.6 Reinforcing Bars

SCC Part-B Welding of


Will not generally be permitted without written approval of Engineer in accordance with IS codes.
12.5.3.9 Reinforcement

SCC Part-B Payment for


Payment shall be made only if given in approved drawing or approved by E-I-C.
12.5.3.10 Overlaps

Certification as per latest ISO 9001-2008, ISO 3834-2 and EN-1090. Submission of European
SCC Part-B Certification of Bearing
Technical approval document for Spherical Bearings with Special sliding material issued by MPA
16.3.1 (viii) Manufacturer
Stuttgart or equivalent bodies indicating that working/service life of bearing ≥ 50 years.

SCC Part-B Materials Proposed Steel confirming to IS: 2062 -2011 is proposed for use. St. steel shall be of Grade-C, normalized,
17.2 For Fabrication killed. Steel for non structural members like railings may be of Grade-A.

SCC Part-B Riveted Connections


For Bridges other than 39 and 43, If client decides to provide rivets in place of bolts, the same shall
17.4.5 be provided and no extra payment for such change shall be admissible.

If any pumping is required with execution of item in the schedule, arrangements shall be made for
SCC Part-B Dewatering by
procurement and operation of necessary pumps. No extra payment is permissible and the rates of
23.7 Pumping
works are inclusive of the cost of dewatering.
Thank You

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