MECON LIMITED, Ranchi- 834002 - CSRBOX · MECON LIMITED, Ranchi-834002 A Government of India Enterprise Dear Sirs, M/s MECON Limited (hereinafter referred to as MECON) have pleasure

ITT No.: 11.74.Toilet/Bartoli/CSR/081

dated : 04.12.2018

Page 1 of 31

MECON LIMITED, Ranchi-

834002

A Government of India Enterprise

Invitation to Tender (ITT)

FOR CONSTRUCTION OF COMMUNITY TOILET COMPLEX AT BAR TOLI, VILLAGE-

PANCHA, BLOCK-BUNDU, DIST. RANCHI, JHARKHAND - Under MECON's CSR activities.

SALIENT FEATURES OF THE INVITATION TO TENDER

A. TENDER ENQUIRY NO. ITT No.: 11.74.Toilet/Bartoli/CSR/081

dated : 04.12.2018

B. ITEM DESCRIPTION Construction of Community Toilet Complex at Bar

Toli, Village-Pancha, Block-Bundu, Dist. Ranchi in

the State of Jharkhand- as per enclosed technical

specification, BOQ & sketch

C. DUE DATE & TIME OF

SUBMISSION OF OFFER & OPENING

OF TECHNO-COMMERCIAL BID

Submission: 26.12.2018 by 16.00 Hrs “Indian Standard Time (IST)”. Opening: 26.12.2018. by 16.30 Hrs “Indian Standard Time (IST)”.

D. PLACE OF SUBMISSION

OF BID

Purchase Section, MECON Limited, Ranchi 834 002, Jharkhand,

E. COMPLETION SCHEDULE The entire work covered under Schedule of Quantities shall be completed within 4 (four) months from the date of placement of LOI/ Work Order

F. VALIDITY OF TENDER 4 (four) months from the due date of opening of

Techno-commercial Part i.e. PART-I of the tender

documents

G. COST OF BIDDING DOCUMENT

(Non Refundable)

Rs.1180/- (Rupees One thousand one

hundred eighty only)

H. EMD Rs.10,000/- (Rupees Ten thousand only)

I. Pre-bid Meeting On 12.12.2018 in the office of DGM I/c, CSR

Cell, MECON Ltd., Ranchi

Note: Bidders may depute their authorized representative, on due date of submission of the

tender specified above during opening of techno-commercial offer. Any change in the

due date shall be notified on MECON’s website. Also any corrigendum with regard to

the subject tender shall be notified in MECON website within the scheduled submission

date of offer.


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Dear Sirs,

M/s MECON Limited (hereinafter referred to as MECON) have pleasure in enclosing the following

tender documents for the above work and invite sealed bids from prospective bidder with the best

& binding offer for Construction of 3 nos. Solar based Drinking Water System in adopted villages

one each at Village Pandutoli, Village Sungi and Village Rai in the State of Jharkhand- as per

enclosed technical specification, BOQ & sketch.

Details of Tender Document

i) Technical Specification & BOQ Attachment I ii) Draft Purchase Order Attachment II iii) Summary of Tender Attachment III iv) Price Schedule Format Attachment IV

v) Declaration by Tenderer Attachment V vi) Undertaking by Tenderer Attachment VI

vii) Security Deposit cum Performance BG Format Attachment VII

Note:

a) All the Attachments mentioned above shall be submitted by the Tenderer along

with their tender duly filled and stamped & signed on each page as a token of

acceptance to the terms & conditions.

b) Bidders may depute their authorized representative, on due date of submission of

the tender specified above during opening of techno-commercial offer.

c) Any change in the due date shall be notified on MECON’s website.

d) THIS IS A ‘NO DEVIATION’ TENDER AND OFFER OF THE BIDDERS TAKING

DEVIATIONS IN ANY TERMS & CONDITIONS OF THE TENDER SHALL BE REJECTED.

e) The due date fixed for opening of offer, if subsequently declared as holiday by

MECON, the revised date of schedule will be notified. However, in absence of such

notification, the offers will be opened on next working day, time and venue

remaining unaltered.

1.0 ELIGIBILITY CRITERIA

1.1 Technical

Technical requirements of the eligible bidders are as detailed below: Bidders should have successfully executed / completed similar work of the following magnitude during last 7 years ending on last day of the preceding month in which this tender is floated. At least one executed/completed similar work having value of the job not less than INR 19.5 Lakhs.

OR


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At least two executed/completed similar works having value of each job not less than INR 12 Lakhs.

OR At least three executed/completed similar works having value of each job not less than INR 10 Lakhs. In case bidder has successfully executed work of larger volume in a longer duration, portion of the work executed during the last seven years shall be considered. In case the work is in progress, value of work done during the qualifying period shall be considered. Similar work Similar work shall mean execution of civil works related to any Residential /Commercial/Institutional/ Industrial projects involving RCC, Masonry, finishing works & electrical work etc on item rate/turnkey basis. Documents to be submitted

a) The bidder shall submit self attested copy of the following:

i) Letter of award / Work Order. ii) Completion / execution certificate indicating value of work executed during the

qualifying period. iii) In case the completed / executed value is not indicated in the certificate, the

bidder shall submit documentary evidence of the value executed / completed during the qualifying period in the form of bills, duly certified by the client.

1.2 Financial

a) The average annual financial turnover of the Bidder/ Tenderer during last three (03) consecutive financial years shall be at least Rs. 20.0 Lakh ending March, 2018.

b) The Bidder shall submit a copy of Chartered Accountant’s certificate in support of meeting the above stipulated financial requirements.

OR

The Bidder shall submit Audited Annual Financial Reports or Profit & Loss statement for last three (03) consecutive financial years ending March, 2018.

1.3 GENERAL

i/ Consortium offers shall not be acceptable. Offers submitted by the tenderers forming any sorts of consortium shall summarily be rejected.

ii/ The Bidder shall download the entire “Tender Document” available in the website http://www.meconlimited.co.in and http://www.eprocure.gov.in/cppp for the purpose of preparation & submission of their tender. Tenderer shall submit their offer duly signed on each page. It will be presumed that the Bidder has gone through the entire Tender Document available on the website, which shall be binding on the Tenderer.


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iii/ If any offer is submitted not in conformity of the tender conditions/specifications/price format etc., as per the tender document and subsequent corrigendum/s issued in this regard, the offer shall be liable to be rejected.

2.0 SUBMISSION OF TENDER

2.1 Tender shall be prepared and submitted in one SEALED ENVELOPE containing two individually sealed envelopes inside as follows:

Envelope 1 - PART - I (1 original + 2 copies) This part shall contain Demand Draft payable at par at Ranchi towards cost of tender

document in favour of MECON Limited, Complete techno-commercial bid and a photocopy of Price Part after blanking the actual price / rate offered and written “QUOTED” (In MECON’s Price schedule format only). Rates of taxes & duties considered in offer should be clearly mentioned in the blank price format also.

Tenderer shall strictly ensure that this part does not contain any Price at all.

Tenderers shall submit their Price bid and the Un-priced copy of Price schedule strictly as per the Price Format (Attachment-IV OF ITT) provided alongwith MECON’s tender document and it is hereby suggested not to generate their own Price Format.

Envelope 2 - PART – II PRICE PART ONLY (in Two copies) This part shall be marked as PRICE BID and shall contain PRICE part indicating incidence

of tax if any as per MECON's price format without any terms & conditions attached. 2.2 Insertion, post-script, addition and alteration shall not be recognised unless confirmed by

Tenderer's signature and stamp. 2.3 Incomplete Tender or Tenders (not submitted as per requirement of MECON as indicated in

the ‘Invitation to Tender’) shall be liable to be rejected. 2.4 Tenderer shall fill in the price/rate under the unit rate column and total price under the total

price column strictly as per the unit mentioned against each item. Offer submitted with different unit other than the one indicated in BOQ/price schedule format shall be liable to be rejected.

2.5 In the event of an error occurring in the total amount column of schedule of items as a result of wrong extension of the unit rate and quantity, the unit rate shall be regarded as firm and extension shall be amended on the basis of the rate. All errors in totalling in the amount column and in carrying forward totals shall be corrected and the tendered sum amended accordingly during price evaluation.

2.6 All entries in the price bid should be in typed/hand-written form in same ink. Erasures and over writing are not permitted. All cancellations, corrections and insertions should be duly signed by the tenderer concerned with proper indication of the name, designation and address of the person signing.

2.7 Before quoting, the tenderers are advised to inspect the site of work and its environments

and be well acquainted with the actual working and other prevailing conditions, position of materials and labour.


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2.8 Conditional tenders, tenders containing absurd rates and amounts, tenders which are

incomplete or otherwise considered defective, tenders which are not in accordance with the tender conditions laid down by the Accepting Officer and tenders not submitted in the prescribed forms are liable to be rejected.

2.9 The Tenders as submitted will consist of the following :

i) Cover letter of Tender detailing list of contents in the bid document being submitted by the tenderer.

ii) DD payable at par at Ranchi towards cost of tender document (Non – refundable) and EMD

iii) Draft Work Order duly signed on each page as a token of acceptance of all the commercial terms and conditions mentioned therein.

iv) Duly filled-in Attachments including the summary of Tender v) Unpriced copy of Price Format (Attachment-IV): vi) Documents as per Eligibility Criteria vii) Any other technical information the Tenderer wishes to furnish; viii) In general NO DEVIATION shall be accepted.

2.10 It shall be the responsibility of the tenderer to ensure that the tender has been submitted in the formats and as per the terms & conditions of the tender documents and no change should be made therein. In the event any doubt regarding the terms & conditions / formats, the persons concerned may seek clarification in this regard from MECON. In case any tampering / unauthorised alteration is noticed in the tender submitted from the tender document available on MECON website, the said tender shall be summarily rejected and MECON shall have no liability whatsoever in the matter. However, deviations if any, proposed by the bidder may be separately indicated for acceptance or otherwise by MECON. Such deviation will not be treated as tampering for the purpose of application of the clause.

3.0 SCOPE OF WORK

3.1 The scope of work shall be as per Technical Specification & BOQ enclosed herewith at

Attachment-I.

3.2 The Tenderer shall carefully check the specification and shall satisfy himself regarding the

technical requirement and completeness of the equipment. Also, the tenderer may inspect

the site and satisfy himself about the actual site conditions and collect any other

information, which may be required by him for submitting the tender for efficient execution

of the work.

4.0 PRICE

The tenderer shall quote their prices strictly as per the Price Schedule Format enclosed at

Attachment-IV. The unit rate to be quoted by the tenderer shall not exceed the

JSR(2018)/DSR(2016) rates as per the corresponding JSR/DSR no. indicated against each

item of Price Schedule Format (Attachment-IV), wherever applicable. and applicability of

percentage of GST shall be indicated against each item as per the format.


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5.0 TAXES_AND_DUTIES

Taxes & duties shall be as per enclosed Draft Work Order (Attachment-II)

6.0 TERMS_OF_PAYMENT

Subject to any deduction which MECON may be authorised to make under the order, the

contract price shall be payable as indicated in the enclosed Draft Work Order (Attachment-

II).

7.0 TIME_OF_COMPLETION

Time of completion is the most important aspect of the order. Tenderer shall complete

entire work in accordance with the Completion Schedule indicated in this Invitation to

Tender. Time of completion shall be firm and binding.

8.0 LIQUIDATED_DAMAGES

Liquidated Damages shall be applicable as per enclosed Draft Work Order(Attachment-II).

9.0 PERIOD_OF_VALIDITY_OF_TENDER

Unless otherwise specified, the Tenderer shall keep his Tender valid initially for a period of 4

(Four) months from the due date of receipt of the Tender.

10.0 LANGUAGE

The Tender shall be submitted in English language.

11.0 EARNEST MONEY DEPOSIT The Tender must be accompanied by Earnest Money Deposit (EMD) in the form of a demand

draft drawn in favour of MECON Limited, from a Nationalised Bank acceptable to MECON, for Rs.10,000/- (Rupees Ten thousand only ). The Earnest Money shall be kept deposited upto a period of one month beyond the validity of the tender. The earnest money will not earn any interest. If the Tenderer after submitting his tender resiles from his offer or modifies the terms and conditions thereof in a manner not acceptable to MECON, the Earnest Money shall be liable to be forefeited. Tenders not accompanied by Earnest Money shall be liable for rejection.

On acceptance of the tender (but not earlier than the expiry date of validity of Tender), the

Earnest Money will be returned to the unsuccessful Tenderers on request.

Should an Invitation to Tender be withdrawn or cancelled by MECON, which it shall have the right to do at any time, the Earnest Money will be returned to the Tenderer.

Firms registered with MSME/SSI / NSIC and holding valid registration certificates are exempted from submission of the Earnest Money Deposit.


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12.0 COST OF TENDER DOCUMENT

The tender must be accompanied by cost of tender document of Rs.1180/- (non-refundable), inclusive of GST, in the form of Demand Draft drawn in favour of MECON Limited, Ranchi. Tenders not accompanied by cost of tender shall be liable for rejection.

Firms registered with MSME/SSI / NSIC and holding valid registration certificates are exempted from submission of the Cost of Tender.

13.0 NO CLAIM OR COMPENSATION FOR SUBMISSION OF TENDER

The Tenderer whose Tender is not accepted shall not be entitled to claim any costs, charges,

expenses of and incidental to or incurred by him through or in connection with his

submission of Tender, even though MECON may elect to withdraw the Invitation to Tender.

The purchaser reserves the right to accept or reject any bid and annul the bidding process or even reject all bids at any time prior to award of contract, without thereby incurring any liability to the affected bidder or bidders or without any obligation to inform the affected bidder or bidders about the grounds for the purchaser's action. The purchaser reserves the right to accept or reject any technology proposed by the vendor.

14.0 EVALUATION CRITERIA

The price of all the techno-commercially acceptable tenderers shall be evaluated on overall basis, i.e. total price quoted for civil work, borewell, sanitation & plumbing, electrical and solar system, as per the Price Schedule Format (Attachment-IV) including GST. Tenderers are requested to quote for all the items as per Price Schedule Format (Attachment-IV) and part offer/incomplete offer shall be liable to be rejected.

Tenderer shall note that final discussions shall be held with the techno-commercially acceptable evaluated L-1 (i.e. lowest) Tenderer only, if required.

15.0 ACCEPTANCE OF ORDER

MECON is not bound to accept lowest or any Tender or to assign reasons whatsoever for non-acceptance. MECON also reserves the right to cancel the tender without assigning any reason whatsoever.

16.0 OPENING OF PART-II: PRICE BID

Price-bid of only those Technically and Commercially acceptable tenderers will be opened in the presence of such duly authorized representatives of tenderers who may wish to attend the price bid opening on a specified date and time. The techno-commercial acceptable tenderers will be informed about the date and time of Price-bid opening. Three (3) to Five (5) working days notice will be given to such techno-commercially acceptable tenderers for deputing their authorized representative. Only one authorized representative of each tenderer shall be allowed to attend the Price-bid opening.


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During opening of price, only summary of price quoted by vendors shall be read and no discussion shall be made with any vendor. The authorized representative of vendors shall be required to sign on attendance sheet / attendance register.

17.0 NOTICE_ON_BEHALF_OF_MECON

Notice and Certificate on behalf of MECON in connection with the tender may be given by

duly authorised officers of MECON.

Any modification which may become necessary in the interim period will be intimated to the

Tenderer as soon as possible.

18.0 CONFIDENTIALITY

Tenderer shall note that all data/ drawings/ specification enclosed with Tender document is

confidential. Tenderer shall keep all data/ drawings in strict confidence and shall not copy or

pass on any of the Tender papers etc. to any third party. Tenderer shall return the Tender

document alongwith the Tender.

19.0 PRE-BID MEETING

The interested parties may visit the site to satisfy themselves about the local conditions and

site restrictions, physical/administrative/access etc., if any, before submission of bid. Pre-bid

conference shall be conducted at MECON Head Office on 12.12.2018 at 3.00 pm in the

office of DGM I/c (CSR Cell). Bidders desirous of obtaining clarifications on clauses of the

tender enquiry (Technical as well as Commercial) are requested to ensure their participation

in the pre-bid conference. Failure to visit the site and attend pre-bid meeting shall not,

under any circumstances whatsoever, at a later date, constitute a ground for mitigation of

the terms of this contract

20.0 GENERAL

20.1 Tenderer shall submit their offer strictly as per terms and conditions of Tender document

without any deviation.

20.2 The tender is liable for rejection due to any of the reasons mentioned below, at the discretion of MECON:

a. Non-Submission of tender within stipulated due date/extended due date b. Submission of tender without Price Bid c. Submission of technical bid & price bid in single envelope d. Submission of tender documents in unsealed envelope. e. Submission of un-signed tender f. Non-payment of Cost of Tender g. Non-submission of required documents as per cl.no. 1.0 above. h. Conditional and / or vague offers i. Incomplete offer


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20.2 Canvassing in any form in connection with tenders is strictly prohibited and the tenders

submitted by the contractors who resort to canvassing will be liable for rejection.

20.3 If the tenderer deliberately gives wrong information/false document in his tender, MECON reserves the right to reject such tender at any stage. Further the tenderer will be liable for any damage caused.

20.4 Any change in the due date shall be notified on MECON’s website. Also any corrigendum with regard to the subject tender shall be notified in MECON website within the scheduled submission date of offer. If any offer is submitted not in conformity with the tender conditions/specifications/price format etc., as per the tender document and subsequent corrigendum/s issued in this regard, the offer shall be liable to be rejected.

AGM I/c (P&S) Tel:0651-2483210

E-mail: [email protected]


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Attachment-I

Technical Specification and BOQ

(attached separately)


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Attachment - II

DRAFT WORK ORDER

M/S ………………………….

Amendment No. : Nil

Dated : Nil

Work Order No. Date of

Order

Completion Date CONTRACTOR's

Code

11.74.Toilet/Bartoli/CSR/

Sub. : Construction of Community Toilet Complex at Bar Toli, Village-Pancha, Block-

Bundu, Dist. Ranchi in the State of Jharkhand - Under MECON's CSR activities

Ref. : 1) Our Tender Enquiry No. 11.74.Toilet/Bartoli/CSR/081 dated 04.12.2018

2) Your Offer No. ………. dated …………….

3) Subsequent discussions ending with your letter no. ……… dated ………...

Dear Sirs,

With reference to above, We, the MECON LIMITED (herein after referred to as MECON) are pleased

to place our Work Order on you (herein after referred as CONTRACTOR) for Construction of

Community Toilet Complex at Bar Toli, Village-Pancha, Block-Bundu, Dist. Ranchi in the State of

Jharkhand - Under MECON's CSR activities, as per Technical Specification & BOQ (Attachment-I).

Terms & conditions of the order shall be as follows.

1.0 SCOPE OF WORK & SERVICES

The scope of Work shall cover Construction of Community Toilet Complex at Bar Toli, Village-Pancha, Block-Bundu, Dist. Ranchi in the State of Jharkhand - Under MECON's CSR activities, as detailed in enclosed Technical Specification and BOQ & drawing at Attachment-I.

The scope of work and services shall broadly include the followings :

1.1 CONTRATOR shall provide, erect and maintain his own site office, stores, godown, open storage etc. as required for the work and arrange for maintaining in neat manner of the area placed at the CONTRACTOR’s disposal.

1.2 CONTRACTOR shall provide watch & ward and adequate lighting, to be maintained by him,

for work under his scope. 1.3 Providing all labour, skilled, semi-skilled, un-skilled & supervisory personnel etc. as may be

required to complete the work within schedule completion time.


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1.4 Providing adequate tools, instruments, tackles, & construction equipment required for

completion of the job.

1.5 Procurement of all the materials as may be required for the work. 1.6 Taking required insurance as detailed under Insurance Clause in this work order. 1.7 Timely payment of wages/ benefits to labourers, supervisory personnel engaged at site as

per Wage Acts prevailing during execution of work, keeping MECON completely indemnified against such payments. CONTRACTOR shall keep a record of such payment and produce the same on demand by MECON.

1.8 Abide by statutory regulations, labour rules, safety codes during execution of order and

obtaining clearance from relevant statutory authorities as required. CONTRACTOR shall submit all statutory documents as asked by MECON.

1.9 Abiding by all statutory obligations including ESI, EPF etc. during execution of order.

CONTRACTOR shall submit all documentary evidence in this respect such as ESI, EPF certificates and Minimum Wage Certificate alongwith each and every bill or as required by MECON.

1.10 Material brought to site shall not be removed from the site without the prior written consent

of MECON.

1.11 Contractor shall strictly adhere to and follow the safety guidelines of Govt. of Jharkhand in execution of the work.

2.0 CONTRACT PRICE

2.1 The Contract Price for the entire scope of work and in accordance with the commercial terms & conditions, stipulations, specifications, drawings, BOQ, requirement and other conditions of the work order is detailed in Attachment-IV (Price Schedule) enclosed. This being an item rate contract, the contract price is estimated only and is based on estimated quantity of work / items and applicable unit rates as indicated in the Price Schedule (Attachment-IV).

2.2 Quantities of some items of work are indicative and may vary. The Contract Price shall be adjusted based on actual quantity of work executed by the Contractor as per construction drawings / BOQ to be issued by MECON and firm unit rates as per Price Schedule. Payment shall however be released against actual quantities of work executed as certified by MECON’s Site Engineer and applicable unit rates as per the work order. Final contract price to be paid to the CONTRACTOR shall be arrived based on actual quantities of work finally executed by the contractor as duly certified by MECON Site Engineer and applicable unit rates as per the work order.

2.3 Contract price are inclusive of all applicable taxes including GST and expenses towards various statutory and regulatory bodies and insurance coverage. GST shall be paid to the contractor on submission of documentary evidence.


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2.4 Unit rates of all the items shall remain firm and binding for any variation in quantities during entire period of execution of the order except Statutory variation in taxes & duties indicated under clause 4.0 below within contractual completion period.

2.6 Contract price shall also be deemed interalia to include and cover all costs and expenses, including but not limited to, the cost of security, safety arrangement to be provided by the Contractor and any other work as required for proper and safe completion of this order.

2.7 Contract price shall be deemed interalia to include and cover all costs and expenses,

including but not limited to the cost of labour, supervisory personnel, tools, tackles, equipment, templates, scaffolding, supports, approaches, workman compensation insurance, automobile liability insurance, insurance for his workmen, employees and construction equipment at site, taxes, royalties, consumables, transport, handling, temporary facilities like labour camps, etc., facilities for testing/checking, disposal of rubbish/surplus earth, security, safety etc to be used by the CONTRACTOR.

3.0 MEASUREMENT OF WORK

Unless otherwise specified, measurement of work shall be carried out on the basis of the drawings/BOQ issued by MECON. In the event of any dispute with regard to measurement of work executed, decision of MECON shall be final and binding on the CONTRACTOR.

4.0 TAXES & DUTIES

4.1 Except as otherwise specifically provided in the order, the CONTRACTOR shall bear and pay all taxes, duties, levies as charges for the subject work by the CONTRACTOR, its sub CONTRACTOR or their employees.

4.2 The CONTRACTOR must be registered with GST. Any tax liability due to failure on the part of the CONTRACTOR to get itself registered under GST shall be to the CONTRACTOR’s account.

4.3 All other applicable Taxes, Duties, Levies, Fees or Royalties for construction material and erection/construction work, as applicable and other charges legally leviable on the CONTRACTOR in connection with this work order are included in the contract price and shall be borne and paid by the CONTRACTOR. MECON shall bear no liability in respect of any taxes, duties, levies etc. whatsoever.

4.4 TDS as applicable shall be deducted at source. 5.0 COMPLETION PERIOD 5.1 Completion Schedule / Time is the most important aspect of the work order. CONTRACTOR

shall complete the entire work as per the scope of work detailed in the technical specification/BOQ & drawing and clause 1.0 above in all respects and hand over the same to MECON within 4(four) months from the date of placement of LOI/Work Order.


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6.0 TERMS OF PAYMENT

6.1 Subject to any deductions, which MECON may be authorised to make under the Contract, the Contract Price shall be payable as follows :

90% payment shall be made on completion of work on pro-rata basis as per the scope of work indicated in Attachment-I against submission of invoice along with Certificate to be issued by MECON. Balance 10% payment shall be made on completion of work against submission of Security Deposit cum Performance Bank Guarantee of 10% of the Contract Price to be kept valid for a period of one year.

Tax Invoice to be submitted by the Contractors, shall comply with the following:

i. Tax Invoice on a printed form / letter head which should reveal :

The name and Address of the Contractor

Firm Registration No.

I. Tax Registration No. (PAN)

P.F. Registration No. with Regional Provident Fund

ESI Registration No. with ESI Authorities

Registration under GST

Contact Telephone No.

ii. Measurement sheet should be on printed form / letter head of the Contractor duly certified

by the contractor and MECON Engineer. 6.2 All Bank Guarantees shall be in MECON’s proforma.

6.3 All Bank Charges shall be borne by the Contractor.

6.4 All payments shall be released through Electronic Fund Transfer (NEFT / RTGS) upon submission of pre receipted invoice alongwith correct & complete documents at MECON, Ranchi. MECON will not be responsible for delay in payments in case of non receipt of documents / receipt of incorrect & incomplete documents. The Contractor shall intimate their Bankers details and Account No. etc. to Finance Section, MECON, Ranchi.

6.5 All costs, charges or expenses which the Contractor is liable to pay may be deducted by

MECON from any money due or becoming due to the Contractor against the subject order or any other order being executed, or may be recovered, at MECON's sole discretion, by action of law or otherwise from the Contractor.

6.6 MECON shall deduct Taxes at source as per the prevailing statutes from the payments to be made to the Contractor. MECON shall deposit amounts thus deducted with the concerned authorities and issue necessary certificates to the Contractor to this effect.

6.7 No advance payment and/or Adhoc payment will be made to the contractor during execution of the work. Payment will be made strictly as per the Payment terms of the Work Order.

6.8 Deduction, if any, on account of Liquidated Damages shall be made from the payment due

to the contractor against final payment.


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7.0 SECURITY DEPOSIT CUM PERFORMANCE BANK GUARANTEE

The CONTRACTOR will furnish Security Deposit cum Performance Bank Guarantee for a value of 10% of the Contract Price in favour of MECON in MECON’s prescribed proforma.

7.1 The Security Deposit furnished by the CONTRACTOR will be subject to the terms and conditions of this order and MECON will not be liable for payment of any interest or charges on the Security Deposit or any depreciation thereof.

7.2 Bank Guarantee for Security Deposit shall be valid till completion of maintenance guarantee period of one year. The Security Deposit Bank Guarantee shall be released on CONTRACTOR’s application after expiry of warranty/maintenance guarantee period of one year reckoned from the date of issue of Acceptance certificate by MECON.

7.3 In case the Contractor fails to submit the Security Deposit the same amount shall be deducted from amount payable against their invoice.

8.0 DEDUCTION OF CONTRACT PRICE

All costs, charges or expenses which the CONTRACTOR is liable to pay may be deducted by MECON from any money due or becoming due to the CONTRACTOR or encashment of Bank Guarantee (s) or may be recovered, at MECON's sole discretion, by action of law or otherwise from the CONTRACTOR.

9.0 LIQUIDATED DAMAGES

Time and date stipulated in the Purchase Order for completion of work shall be the most important aspect of the order. The CONTRACTOR shall complete the work in accordance with the schedule stipulated in the work Order. If, however, the CONTRACTOR fails to complete the work in accordance with the time schedule, i.e. within 15 days from the date of placement of order or within such extended time schedule as may be further granted to the CONTRACTOR, the CONTRACTOR shall be liable to pay as liquidated damages and not by way of penalty by making deduction from the CONTRACTORs account or by encashment of CONTRACTORs bank guarantees @ 0.5% of the Contract Price plus escalations if any, excluding taxes and duties paid or payable to the CONTRACTOR, per week of delay or part thereof upto a maximum of 5% of the Contract Price excluding taxes and duties paid or payable to the CONTRACTOR. In case the reasons for delay in execution of the work as per agreed time schedule are not attributable to the contractor, then the LD clause shall not be applicable.

10.0 SUB-LETTING

The CONTRACTOR shall not sublet/sub-contract the whole or any part of work or assign the order or any part thereof without the prior written consent of MECON. Such consent, if given, shall not establish any contractual relationship between the Sub-CONTRACTOR(s) and MECON and shall not relieve the CONTRACTOR of any liability, responsibility or obligation under this order and the CONTRACTOR shall be responsible for the acts, defaults or neglects of any Sub-CONTRACTOR or his representative or workmen as fully as if they were the acts, defaults and neglects of the CONTRACTOR himself. In the event the CONTRACTOR contravenes this condition, MECON reserves the right to reject the Work sub-contracted and complete the same from elsewhere at CONTRACTOR’s Risk and Cost. The CONTRACTOR shall be solely liable for any loss or damage which MECON may sustain in consequence or arising out of such replacing of the contract work.


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11.0 TYPE, QUALITY OF MATERIAL AND WORKMANSHIP 11.1 The CONTRACTOR shall be deemed to have carefully examined and to have knowledge of

the conditions, specifications, schedules, drawings, etc. forming part of the order and also to have satisfied himself as to the nature and character of the work to be executed and, where necessary, of the site conditions and other relevant matters and details. Any information thus had or otherwise obtained from MECON shall not in any way relieve the CONTRACTOR from his responsibility for executing the work in terms of the order.

11.2 The Contract work shall be of the best quality and workmanship at the time of entering

into the Contract. All materials shall be new. 11.3 Brand Names/Makes, Codes and Standards referred in Contract documents shall be

followed. Brand Names/Makes, Codes and Standards of other countries can be followed with the prior written approval of MECON provided materials, supplies and equipment according to the standard are equal to or better than the corresponding standards specified in the order.

12.0 PROTECTION OF WORK

12.1 The CONTRACTOR is responsible for protecting his “Work” till it is finally accepted by MECON, No claim will be entertained by MECON for any damage or loss to the CONTRACTOR’s ‘Work’. CONTRACTOR is also responsible for complete restoration of the damaged ‘Work’ to its original condition to comply with the specifications and drawings keeping MECON / School completely indemnified.

13.0 PERMITS AND LICENSES

13.1 The CONTRACTOR shall at its own expense obtain all permits and licenses from concerned authorities / Indian Government required for the performance of work under this order and the CONTRACTOR shall be required to bear all fees paid to the Government or local licensing authority for obtaining permits and licenses. MECON shall not reimburse the CONTRACTOR for any such fees paid. The CONTRACTOR shall perform the work in accordance with the conditions of all applicable permits and licenses.

13.2 The CONTRACTOR shall provide MECON with evidence of licenses granted and any restrictions contained therein, as & when required.

14.0 ACCEPTANCE 14.1 INSPECTION AND FINAL ACCEPTANCE

The Construction / Contract work shall be inspected by MECON to ensure that the plans and specification are being properly executed. MECON shall have access and right to inspect the work or any part thereof at any stage. If by the above inspection, MECON reject any work, the CONTRACTOR shall make good such rejections either by modifications or repairs as may be necessary, to the entire satisfaction of MECON. Such repair modifications include re – execution of such of those works of other CONTRACTOR’s and / or agencies, which might have got damaged or affected by re – work done to the CONTRACTOR’s work. All supply items shall be inspected by MECON if required.


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14.2 FINAL ACCEPTANCE Final Acceptance certificate in respect of the Facilities shall be issued by MECON when the

entire work as per the technical specification/BOQ has been completed and handed over to MECON to the entire satisfaction of MECON.

15.0 MAINTENANCE GUARANTEE PERIOD (DEFECT LIABILITY PERIOD)

15.1 The CONTRACTOR guarantees that for a period of 1 (one) year commencing from the date of Commissioning, the Contract work shall not show any sign of defects, cracks, settlements, disfigurations, shrinkage, leakage, dampness or any other faults.

15.2 The CONTRACTOR shall maintain and satisfactorily execute at his own cost all such works of repair, amendment, reconstruction, rectification, replacement, all regular schedule work and any other work to make good the faulty work as stated under ‘Completion certificate’ for a period of 1 (one) year from the date of commissioning.

15.3 If the repair, replacement or making good is of such a character that it may affect the efficiency of the Facilities or any part thereof, MECON may give to the CONTRACTOR a notice requiring that tests of the defective work shall be made by the CONTRACTOR immediately upon completion of such remedial work, whereupon the CONTRACTOR shall carry out such tests.

If the CONTRACTOR does not commence the rectification either by repair or replacement of such defects within 30 (thirty) days from the date of notice by MECON or does not complete the rectification with reasonable diligence and within a reasonable time, MECON may, at its option, rectify the defects at the CONTRACTOR’s expense. MECON shall, in such case, deduct from payment due to the CONTRACTOR the expenses incurred by MECON for remedy of such defects without prejudice to the other rights of MECON under the order.

15.4 If the Facilities or any part thereof cannot be used by reason of such defect and / or making good of such defect, the Maintenance Guarantee Period of the Facilities or such part, as the case may be, shall be extended by a period equal to the period during which the Facilities or such part cannot be used by MECON because of any of the aforesaid reasons.

16.0 RESPONSIBILITY FOR PERFORMANCE OF CONTRACT

16.1 The CONTRACTOR shall be entirely responsible for the due performance of the order in all respects according to the intent and meaning of the drawings, specifications and all other documents referred to in this order. MECON will have the right to reject the work done by the CONTRACTOR if it is found that the work carried out by the CONTRACTOR is not in conformity with the terms and conditions of the order in all respects.

17.0 RESPONSIBILITY FOR COMPLETENESS

The CONTRACTOR shall, unless specifically excluded in the order, perform all such work and / or supply all such items and materials not specifically mentioned in the order but that can be reasonably inferred from the order as being required for attaining Completion of the Facilities, as if such work and / or items and material were expressly mentioned in the order, without extra charges and the work must be completed in all respects within the stipulated completion period.


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18.0 RIGHTS OF MECON TO VARY/ CHANGE THE ORDER

18.1 MECON from time to time during the period of performance of this order, reserves the right to make changes within the general scope of this order in drawings, designs, specifications, method of shipment, or require additional work, or direct the omission of work.

18.2 If any such change causes an increase or decrease in the cost of, or the time required for the performance of this order, or otherwise affects any other provision of this order, the commercial implication shall be mutually discussed and agreed upon with MECON.

18.3 Notwithstanding anything contained in this article the CONTRACTOR shall not suspend or cease the performance of this order for reasons of any change or any dispute or any Arbitration proceedings.

19.0 SUSPENSION AND TERMINATION

19.1 MECON may at any time temporarily stop the work under the order or any part thereof by notice in writing to the CONTRACTOR. MECON will not be liable to the CONTRACTOR for any damage or loss or idle wages caused by such period of suspension of work.

19.2 MECON will be at liberty to terminate the order without prejudicing its rights and affecting the obligations of the CONTRACTOR by giving 15 days notice in writing in the following events :

a) If the CONTRACTOR fails to show progress of work or the work is found unsatisfactory. b) If the CONTRACTOR fails to comply with the provision/ provisions of the order. c) If the CONTRACTOR is involved in any action involving moral turpitude. 20.0 NEGLIGENCE, DEFAULT AND RISK PURCHASE

20.1 If the CONTRACTOR fails to execute the work with due diligence or expedition or shall refuse or neglect to comply with any order given to him in writing by MECON in the order, MECON may give notice in writing to the CONTRACTOR calling upon him to make good the failure, neglect or contravention within such time as may be deemed reasonable and in default of the compliance with the said notice, MECON without prejudice to its rights under the order, may rescind or cancel the order holding the CONTRACTOR liable for the damages that MECON may sustain in this regard.

20.2 Should the CONTRACTOR fail to comply with such notice within a reasonable period from the date of serving thereof, MECON shall have the option and shall be at liberty to take the work wholly or in part out of the CONTRACTOR’s scope and may complete the work envisaged in the order themselves or may recontract to any other person or persons to execute the same or any part thereof and provide other materials, tools, tackle or labour for the purpose of completing the work or any part thereof at the CONTRACTOR’s Risk and Cost. This shall be without prejudice to MECON's rights under other clauses of this order.

20.3 MECON shall have right to recover all expenses, costs and charges incurred in completion of the work by deducting any money due or which may become due to the CONTRACTOR or by revoking the Bank Guarantees.


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20.4 If the CONTRACTOR performs any work in a manner contrary to the order, without the approval of MECON, the CONTRACTOR shall bear all the costs arising therefrom and shall be responsible for all losses to MECON arising therefrom.

21.0 COMPLIANCE WITH STATUTORY LAWS AND OTHER REGULATIONS

21.1 The CONTRACTOR shall, throughout the performance of this order, comply with all the laws, rules, regulations and statutory requirements/obligations of Government of India/ State/ Local Government and other statutory bodies applicable at Site for this contract work and MECON shall not be liable for any action of the statutes applicable due to non-fulfillment of statutory obligations by the CONTRACTOR.

21.2 The CONTRACTOR shall provide, at his own cost, to all staff and workmen directly or indirectly employed in the works, all amenities for securing proper working and living conditions at the Site and at the labour camp. The CONTRACTOR shall also provide medical facilities at the site as per rules in force in relation to strength of their staff and workmen deployed at site.

22.0 LABOUR

22.1 CONTRACT LABOUR RULES

In respect of all labour directly or indirectly employed on the works by the CONTRACTOR, the CONTRACTOR shall comply with and implement all the provisions of the Contract labour (Regulation and Abolition) Act 1970, or any amendment thereof, and all legislation and rules of the State and/or Central Government or other local authority formed from time to time governing the protection of health, sanitary arrangements, wages, welfare and safety of labour employed on the works and the CONTRACTOR shall be deemed to be the Employer for this purpose. The rules and other statutory obligations with regard to fair wages, welfare and safety measures, maintenance of register etc. will be deemed to be part of the Contract.

The CONTRACTOR shall have a valid labour license and shall also maintain all records/ register/return/cards under Jharkhand contract Labour (R&A) Rules Act,

22.2 CONTRACTOR SHALL ALSO STRICTLY ADHERE TO ALL PROVISION OF THE

FOLLOWING ACT : MINIMUM WAGES ACT 1948 AND PAYMENT OF WAGES ACT 1936 STATE GOVERNMENT’S MINIMUM WAGE FIXATION ACT 1962

PROVISION OF WORKMEN'S COMPENSATION ACT 1923 APPRENTICS ACT 1961 HEALTH, SAFETY, WELFARE OF LABOUR

22.3 REPORTING OF ACCIDENTS TO LABOUR The CONTRACTOR shall be responsible for the safety of all workmen and employees

engaged by him or by his sub-CONTRACTORs in connection with the contract work. All accidents at site are to be immediately reported to the required authorities. The CONTRACTOR shall be responsible for all such accidents and shall make arrangements to render all possible assistance and aid to the victims of the accident.


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22.4 PRESERVATION OF PEACE The CONTRACTOR shall take adequate precautions and use his best endeavor to prevent any

riotous or unlawful behavior by or amongst his workmen and/or others employed on the works by him and for the preservation of peace, protection of the inhabitants & security of the property at or in the neighborhood of the works/site.

22.5 CONDITION OF SERVICE OF EMPLOYEES OF CONTRACTOR/SUB CONTRACTOR

22.5.1 The CONTRACTOR/sub-CONTRACTOR shall abide by the provisions of Jharkhand Contract Labour (R&A) Rules regarding condition of service.

22.5.2 No female shall be allowed to work between 6 PM and 6 AM. 22.6 MEDICAL FACILITIES AT SITE

The CONTRACTOR shall provide medical facilities at the site as per rules in force in relation to the strength of the CONTRACTOR’s staff and workmen deployed at site and cover his employee under ESI.

22.7 AGE LIMITS OF LABOUR No child/adolescent shall be allowed to work in the work site. The CONTRACTOR shall not

employ for the purpose of the work, any person below the age of 15 years. MECON shall have the right to refuse to allow any labourer whom he considers to be underage to be employed by the CONTRACTOR.

22.8 IDLE LABOUR

CONTRACTOR shall engage sufficient & proper nos. of Workmen / Supervisor etc. for successful & timely completion of work. No Idle labour charges whatsoever shall be paid by MECON in case labour remain idle for some period during performance of order.

23.0 INSURANCE

23.1 Contractor/and his Sub-Contractor, as required by law for purpose of this Contract, shall arrange, secure and maintain during execution of the Contract, all insurances as may be necessary or required by law for purpose of this order and for all such amounts to protect the interest of the MECON against all risks as detailed herein. Insurance Policy taken shall be kept valid till completion of work at site

24.0 FACILITIES TO BE PROVIDED BY MECON

MECON shall provide to the CONTRACTOR the construction drawings, Sketches, instructions for execution of work.


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25.0 FORCE MAJEURE 25.1 “Force Majeure” shall mean any event beyond the control of the MECON or of the

CONTRACTOR, as the case may be, and which is unavoidable notwithstanding the reasonable care of the party affected, and shall include, without limitation, the following:

a) war, hostilities or warlike operations (whether a state of war be declared or not),

invasion, act of foreign enemy and civil war. b) rebellion, revolution, insurrection, mutiny, usurpation of civil or military government,

conspiracy, riot, civil commotion and terrorist acts. c) strike, sabotage, unlawful lockout, epidemics, quarantine and plague. d) earthquake, fire, flood or cyclone, or other natural or physical disaster.

25.2 If either party is prevented, hindered or delayed from or in performing any of its

obligations under the order by an event of Force Majeure, then it shall notify the other in writing of the occurrence of such event and the circumstances thereof within 14 days after the occurrence of such event.

25.3 The party who has given such notice shall be excused from the performance or punctual

performance of its obligations under the order for so long as the relevant event of Force Majeure continues and to the extent that such party’s performance is prevented, hindered or delayed, the Time for Completion shall be extended.

25.4 The party or parties affected by the event of Force Majeure shall use reasonable efforts to

mitigate the effect thereof upon its or their performance of the order and to fulfil its or their obligations under the order, but without prejudice to either party’s right to terminate the order.

25.5 Any delay or non-performance by either party hereto caused by the occurrence of any event

of Force Majeure shall not

a) constitute a default or breach of the order b) give rise to any claim for damages or additional cost or expense occasioned thereby

if and to the extent that such delay or non-performance is caused by the occurrence of an event of Force Majeure.

25.6 If the performance of the order is substantially prevented, hindered or delayed for a period of more than ninety (90) days on account of Force Majeure during the currency of the order, the parties will develop a mutually satisfactory solution.

26.0 ARBITRATION

26.1 All disputes or differences, whatsoever, arising between the parties out of or in relation to the construction, maintenance and operation or effect of this contract or breach there of shall be settled amicably. If, however, the parties are not able to resolve them amicably, the same shall be referred to a sole Arbitrator to be appointed by CMD, MECON (or Functional Director in absence of CMD) to settle the dispute in accordance with the Rules of Arbitration of the Indian Council of Arbitration and award in persuance there of shall be final, conclusive and binding on both the parties to this contract.


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26.2 The venue of arbitration proceeding shall be Ranchi.

26.3 Work under this Order shall be continued by the Contractor during the arbitration proceedings, unless otherwise directed in writing by MECON or unless matter is such that the work can not possibly be continued until the decision of the arbitrator is obtained.

27.0 GOVERNING LAW This order including the Arbitration proceeding shall be governed by and interpreted in

accordance with the laws of India and shall be subject to the exclusive jurisdiction of the courts of Ranchi.

28.0 SITE OCCUPANCY The CONTRACTOR, its employees, Sub-CONTRACTORs and invitees shall be admitted to the

installation sites for the purpose of performing the work required by this order, but none of them shall have any tenancy.

29.0 DRAWING & DOCUMENTS All drawing specifications, sketches, schedule of items etc. furnished by MECON is treated as

strictly confidential property of MECON. 30.0 GENERAL

No Director or official or employee of MECON shall in anyway be personally bound or liable for acts or obligations of MECON under the order or answerable for any default or omission in the observance or performance of any of the acts, matters or things or conditions which are herein contained.

31.0 EXECUTING AUTHORITY

DGM I/c, CSR (Cell) or any officer as nominated by him shall act as Executing Authority in execution of the contract, contractor’s invoice processing etc. and the Contractor shall interact with him for any matter relating to the contract.

32.0 CORRESPONDENCE

All correspondences with regard to Commercial matters shall be made in duplicate to the following address :-

AGM I/c.(P&S) MECON LIMITED, Ranchi – 834 002

All correspondences with regard to Technical matters shall be made in duplicate to the following address

DGM I/c (CSR Cell) MECON LIMITED, Ranchi - 834 002


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ATTACHMENT-III

SUMMARY OF TENDER

MECON’s ITT No. & Date : ____________________________________________ Tenderer’s Offer No. & Date : ____________________________________________

This questionnaire duly filled in should be returned alongwith each copy of Part-I (Technical Part) of offer. Clauses confirmed hereunder should not be repealed in the offer. All the commercial terms and conditions should be indicated in this format only. A. The Tenderer shall fill up the answers to the following questions. The answers are to be

given only as "CONFIRMED" or "AGREED". Deviation to ‘items’ on the clauses listed below shall be indicated separately :

Sl. No. Q u e s t i o n Answer

1 Cost of Tender Documents & EMD submitted 2 Eligibility Criteria complied

4 All items as per bill of quantities quoted.

5 Prices quoted are as per terms of payment of Invitation to Tender/Draft work Order.

6 Quoted Unit rates shall remain firm & binding till completion of the Order

9 Quoted Unit Rates are inclusive of all incidental charges.

10 Security Deposit clause of Draft Work Order acceptable.

11 Maintenance Guarantee clause of Draft Work Order acceptable.

12 Liquidated Damages clause of Draft Work Order is acceptable.

13 Completion schedule as per ITT acceptable.

14

Offer is valid for 4 (four) months from the due date

15 Contractor registered GST (Registration Certificates to be enclosed)

16 All other terms and conditions shall be as per Draft Work Order and other documents attached with ITT

17 Un-priced copy of Price Bid submitted, indicating “quoted” under the price column


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18 Declaration by Tenderer

19 Technical Specification submitted duly signed & stamped on each page

20 ITT & DWO submitted duly signed & stamped on each page

SIGNATUE OF THE TENDERER

NAME : DESIGNATION : (Seal of the Company) Address : Phone No.: Mobile no. Fax No. E- mail


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ATTACHMENT – IV

PRICE SCHEDULE FORMAT

TENDERER SHALL SUBMIT THEIR PRICE BIDS IN MECON’S PRICE SCHEDULE FORMAT ATTACHED SEPARATELY WITH

THIS TENDER.


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ATTACHMENT – V

DECLARATION BY TENDERER

(To be furnished on letter head)

1. We hereby declare that our organisation have not been banned or delisted by any

Government or Quasi Government agencies or Public Sector Undertakings.

2. With reference to this tender, we are submitting our offer after having fully read and

understood the nature of the work and Qualification Criteria. We confirm that if at any time,

any of the declarations is found to be false, our offer or work order is liable to be rejected.

3. It is hereby confirmed that our offer is strictly as per tender specification and there is no

deviation to the technical specification as per your tender Enquiry. We further confirm acceptance of all commercial terms & conditions as per above-referred tender enquiry without any deviation whatsoever.

4. On award of above Job for the above Tender/ITT, we undertake to comply with all legal and

statutory regulations with regard to Statutory taxes & duties, Legal notice etc. for work

executed by us. We shall bear the same keeping MECON fully indemnified against the

same in all respect for the above job under subject tender.

For & on behalf of

Signature of the Tenderer

Name :

Designation :

(Seal of the Company)


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Attachment – VI

UNDERTAKING BY TENDERER

(To be furnished on Contractor’s letter head) On award of above Contract for the above Tender/ ITT, we undertake to comply with all legal and

statutory regulations with regard to PF, Minimum wages, EPS, ESI, Statutory taxes & duties, Legal

notice, Labour Laws, Permit/Licenses etc. as per law of the land for work executed by us. We shall

bear the same keeping MECON fully indemnified against the same in all respects for the above job

under subject tender.

Signature of the Tenderer

Name :

Designation :

(Seal of the Company)


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ATTACHMENT - VII

WITH IMMEDIATE EFFECT

(To be submitted on Non-Judicial Stamp Paper worth Rs. 10/- purchased in the name of issuing

Bank)

BANK GUARANTEE FOR SECURITY DEPOSIT CUM PERFORMANCE WARRANTY i) Name of the Issuing Bank ii) Address with FAX No. iii) Bank Guarantee No. iv) Limit of liability v) Issued on behalf of vi) Issued in favour of vii) Contract/Order No. & Date viii) Description of work ix) Date of issue x) Date of Expiry xi) Claim period from the date of expiry This top sheet shall form part of the original bank guarantee.

Authorised signature with Code No. And stamp of the issuing bank


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PROFORMA OF BANK GUARANTEE FOR SECURITY DEPOSIT CUM PBG (To be submitted on Non-Judicial Stamp Paper worth Rs. 100/- purchased in the name of issuing

Bank) No……… dated : MECON Limited Ranchi – 834 002 (Jharkhand) INDIA Dear Sirs, In consideration of your agreeing to accept the Security Deposit of Rs. .………………. (Rupees ……………………………… only) furnishable to you by M/s …………………………………………………….. (hereinafter referred to as Contractor) in terms of the Contract No. ………………….. dated ……………. for supply/construction of …………………………. required for ……………………………………………………………………………………….. (hereinafter referred to as the ‘Contract’) in the form of a bank guarantee in the manner hereinafter contained we ………. Branch (Banker’s Name) having registered office at ………………., and local office at………….. do hereby covenant and agree with you as follows :

1. We hereby undertake to indemnify you up to a sum of Rs. …………. (Rupees……..…………………………………………… only) against any loss or damage caused to or suffered by you or that may be caused to or suffered by you by reason of any breach or breaches on the part of the Contractor of any of the terms of the terms and conditions contained in the said Contract and in the event the Contractor shall make any default or defaults in carrying out any of the works under the said contract or otherwise in the observance and performance of any of the terms and conditions relating thereto in accordance with the true intent and meaning thereof, we shall forthwith on demand and without any protestor demur pay to you such sum or sums not exceeding in total the said sum of Rs. …………………. (Rupees ………………………………………………………………………….. only) as may be claimed by you as your losses and/or damages, costs, charges or expenses by reason of such default or defaults on the part of the Contractor.

2. Notwithstanding anything to the contrary contained in this Guarantee your decision as to whether the Contractor has made any such default or defaults and the amount or amounts to which you are entitled by reasons thereof will be binding on us and we shall not be entitled to ask you to establish your claim or claims or damages or losses suffered by you but will pay the amount demanded by you under this guarantee forthwith on your demand without any protest or demur.

3. This guarantee shall continue and hold good until it is released by you on the application by the Contractor after expiry of the related warranty period of the said Contract and after the Contractor have discharged all their obligations under the said Contract and produced a certificate of due completion of the work under the said Contract and submitted a ‘No Demand Certificate’, provided always that this guarantee shall in no event remain in force after the date of 31.03.2006 without prejudice to your claim or claims arisen and demanded from or otherwise notified to us in writing before the expiry of six months from the said date which will be enforceable against us notwithstanding that the same is or are enforced after the said date.


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4. We ………………… (Name of the Bank), further undertake to extend the validity of this beyond the period prescribed in clause 3 or as extended from time to time, for such further period as may be required in writing before the expiry of this and upon such extension(s), all terms and conditions of this shall remain in full force till the expiry of this extended period(s).

5. You will have the fullest liberty without affecting this guarantee from time to time to vary any of the terms and conditions of the said Contract or extend the time of performance of the Contractor or to postpone for any time or from time to time any of your rights or powers against the Contractor and either to enforce or forbear to enforce any of the terms and conditions of the said Contract and we shall not be released from our liability under this guarantee by the exercise of your liberty with reference to matters aforesaid or by reason of any time being given to the Contractor or any other forbearance, act or omission on your part or any indulgence by you to the Contractor or by any other variation or modification of the said contract or any other act, matter or things whatsoever, which, under the law relating to sureties, would but for the provisions hereof, have the effect of so releasing us from our liability hereunder provided always that nothing herein contained will enlarge our liability hereunder beyond the limit of Rs.………………… (Rupees ………………………………………………………………………….. only) as aforesaid or extend the period of the guarantee beyond the said date of ………………. unless expressly agreed to by us in writing in terms of clause 4 hereof.

6. This guarantee shall not in any way be affected by your taking or varying or giving up any securities from the Contractor or any other person, firm or company on its behalf or by the winding up, dissolution, insolvency or death as the case may be of the Contractor.

7. In order to give full effect to the guarantee herein contained, you shall be entitled to act as if we are your principal debtors in respect of all your claims against the Contractor hereby guaranteed by us as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any, which are in any way inconsistent with any of the provisions of this Guarantee.

8. Subject to the maximum limit of our liability as aforesaid, this guarantee will cover all your claim or claims against the Contractor from time to time arising out of or in relation to the said Contract and in respect of which your claim in writing is lodged on us before expiry of six months from the date of expiry of this guarantee.

8. Any notice by way of demand or otherwise hereunder shall be in writing and may be sent by special courier, telex or telefax to us or our local address as aforesaid and if sent by post, it shall be deemed to have been given when the same has been posted.

9. This guarantee and the powers & provisions herein contained are in addition to and not by way of limitation of or substitution for any other guarantee or guarantees heretofore given to you by us (whether jointly with others or alone) and now existing uncancelled and that this guarantee is not intended to and shall not revoke or limit such guarantee or guarantees.

10. This guarantee shall not be affected by any change in the constitution of the Contractor or us nor shall it be affected by any change in your constitution or by any amalgamation or absorption thereof or therewith but will ensure for the benefit of and be available to and enforceable by the absorbing or amalgamated company or concern.

11. This guarantee is irrevocable during the period of its currency and shall not be revoked

without your previous consent in writing.


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12. We further agree and undertake to pay you the amount demanded by you in writing irrespective of any dispute or controversy between you and the Contractor or any reference to arbitration of the said dispute/ controversy pending or a civil suit filed by the Contractor in respect of the dispute or controversy.

13. Notwithstanding anything contained herein above our liability under this guarantee is restricted to ………………… (………………………………………………………………………….. only) and this guarantee shall remain in force until ……………... Unless a written claim is lodged on us for payment under this guarantee within six months from the date of expiry of this guarantee i.e. on or before ………….. all your rights under this guarantee shall be forfeited and we shall be deemed to have released and discharged from all liabilities thereunder, irrespective of whether or not the original guarantee is returned to us.

15. We …………………………………… Bank hereby further Guarantee that the design, performance, workmanship and quality of materials and equipment delivered to you and / or to ……………………………… on your written instruction by the Contractor, in terms of the said contract, shall be free from any defect for a period of ………………………. Calendar from the final acceptance and performance / guarantee tests are over and we hereby undertake to pay on demand without any protest or demur to the PURCHASER the sum of Rs.………………….. if, during the guarantee period any defect is detected in design, performance, workmanship and materials used in the manufacture of the said equipment to indemnify you against the claim, demands, proceeding, losses, damages costs, charges and expenses which may be made against or sustained by the PURCHASER M/s ………………………. By reasons or the consequence of any defect in the performance, workmanship and / or materials of the said equipment or part thereof arising or manifested or found during the warranty period and if during the guarantee period, any defect is detected in the design, performance, workmanship and material used in the manufacture of the said equipment and the Contractor fails to rectify the defects and/ or replace the equipment expeditiously without causing any loss of production to the PURCHASER M/s …………………………………. , we shall pay to you on demand without any protest and demur such sum or sums as may be claimed by you as your losses/ damages, costs charges and expenses consequent upon such failure of the Contractor to rectify defects/ replace the equipment, not exceeding in the total the said sum of Rs. ……………… (Rupees ……………………………………… only).

16. We ………………………………………. Bank, further agree that you shall be the sole judge in respect of discovery or detection of any defect in design, performance, workmanship and materials used in the manufacture of the said equipment and your decision in this regard shall be final and binding on us.

17. We have power to issue this guarantee in your favour under the memorandum and articles of association of the Bank and the undersigned has full power to execute this guarantee under the power of attorney granted to them by the Bank.

Signed & delivered For and on behalf of for and on behalf of (Bankers name) the above named bank Branch Manager Bankers Seal) Address :____________