Documents Enclosed with the enquiry

Drawing no.(CESP-528-MIS-MEC-A-018-A1.R1)

:Annexure I

Special conditions of Contract

:Annexure II

GCC (Available in EPIs website under the head Tender):Annexure III

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Annexure - II
SPECIAL CONDITIONS OF CONTRACT
1. GENERAL
These Special Conditions of Contract ( S C C ) cover Erection,
Testing,
Commissioning etc. of IBR Pipeline for SAC Plant, at Cordite Factory, Aruvankadu
(CFA).
S C C shall be read in conjunction with purchasers general conditions of contract
(GCC ), Technical Specifications, Drawings and Documents.
2.
2.1

SCOPE OF WORK
SCOPE

A. Liaisoning with IBR authority including arrangement of inspection,

preparation and approval of steam pipeline from IBR Authority of site of
installation, installation of steam pipeline, Hydraulic tests etc. All
statutory charges shall be borne by the party.
B. Structural support fabrication, fixing including sliding and fixing support
for steam pipeline excluding materials
C. Supply of IBR steam header as per IBR request and drawing enclosed.
2.2

TRANSPORTATION OF IBR PIPELINE AND FITTINGS:

Equipment will be loaded for transport from Cordite Factorys Store at SAC
Plant, Aruvankadu, transported near erection site, and unloaded near erection
site by contractor at rates included in price schedule.
Contractor has to arrange trolley, cart, etc. of suitable size for transporting the
materials

2.3

FOR PIPING WORK:

Scope of work includes the Fabrication, Erection, Testing,

Commissioning, Painting etc. of IBR pipelines cleaning, incorporating or
fixing materials in the works, testing, etc as per ., as necessary including
all preparatory work of whatever description, as per IBR approved
drawings, specifications, codes of practice etc. or as directed by
Purchaser's Engineer at Site.
2.4

Lifting devices, hoists, ropes, tools, tackle, equipment, consumables, labour,

supervision etc. required for the work are to be arranged by the contractor at his
own expense.

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2.5

Fabrication and installation of packing plates is included in the scope of

work.

2.6

Painting of supports and structure with one coat of primer and two coats of
finish paint (Paint will be supplied by EPI) are included in the scope of work.

2.7

All tools, tackle, equipment(Welding Set, Gas Cutting Set), consumables

(Welding Electrodes Gas etc), labour, supervision etc. required for the
work are to be arranged by the Contractor at his own expense.

3.

COVERAGE OF CONTRACT
The contract for the work is complete for labour, material and workmanship
including all temporary works and the provision of all construction equipment,
tools, tackle, consumables etc.
The contractor shall make his own
arrangement for all the materials required for due performance of the contract,
except for items to be supplied by EPI to the contractor free of cost as provided
expressly in this contract.
Except where it is expressly provided that the cost will be borne by EPI, the
various obligations of contractor under the contract shall be at the cost of the
contractor.

4.

INSPECTION OF SITE
The tenderer is required to inspect the site and working conditions etc. before
making his offer and having submitted an offer shall be deemed to have
acquainted himself with the site conditions and obtained all information.

5.

QUALITY
Materials and workmanship shall satisfy the relevant Indian Standards. In
absence of relevant Indian Standard, specification/code of practice covering
any part of the work, the instructions of Engineer-in-Charge will be binding on
the contractor.
Regarding tolerances, methods of work and other technical details, contractor
shall strictly follow the technical specification, manufacturers instruction,
IBR approved drawings etc.

6.

TIME OF COMPLETION

6.1 The entire work shall be completed within six weeks from the date of placement
of order.

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7.

MOBILIZATION
Contractor shall mobilize manpower, machines, tools & tackle, etc., at site within
seven days of date of receipt of Work Order/EPIs notice for mobilization.

8.

SCHEDULE OF MONITORING
The Contractor shall submit within 7 (seven) days of issue of LOI/Work order, a
detailed work schedule in the form of Bar chart clearly indicating the
milestones. The bar chart will be subject to review and approval by EPI.

9.

SECURITY DEPOSIT
The contractor is required to furnish security deposit equal to 5 % (five percent) of
total order value within 7 (seven) days from the date of receipt of LOI/Work
Order for due and proper fulfillment of the contract. The Security Deposit is
to be deposited in the form of an unconditional irrevocable Bank Guarantee
from a Scheduled Bank in EPIs proforma, valid till completion of the Job.

10.

LIQUIDATED DAMAGE FOR DELAY

In the event of delay on the part of the contractor in completing the work in all
respects, the contractor shall pay to the purchaser, liquidated damages for delay
at the rate of % (half percent) of the total order value for every week of delay
or part thereof subject to a maximum of 5% of the total order value.

11.

PRICE
Rates shall be in detail. An unpriced copy of price schedule must be given with
the technical bid. Payment shall be made for the quantity actually executed as
per purchasers requirement, drawing/documents and on certification of the work
done by EPI-engineer.

12.

PRICE BASIS
Price of fabrication, erection & commissioning shall remain firm and fixed and
no variation shall be acceptable on any account whatsoever till all obligations of
the contractor under this contract are fulfilled in all respects.

13.

TAXES & DUTIES

13.1

The price is inclusive of all types of Taxes and Duties. Elements of Taxes
and Duties and their rates to be indicated separately.

13.2

The contractor shall be solely responsible for and pay all duties, levies and
taxes lawfully assessed against the contractor or any or his employees or
personnel engaged by him and shall hold the purchaser indemnified and
harmless against any claims that may be made against the purchaser in this
behalf.

13.3

Deduction of Income Tax at source will be made as per rules.

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14.

TERMS OF PAYMENT

14.1

For 2.1 A (IBR Approval)

i. 25% against permission from IBR authority
ii. 65% after installation

14.2

For 2.1 B (Fabrication & Installation)

90% after installation

14.3

For 2.1 C (Supply and Installation of IBR Steam Header)

90% after installation

14.4

Balance 10% of the total order value shall be released after commissioning
and certification from competent authority against submission of
performance Bank Guarantee of equivalent amount as per EPIs Format
from a nationalized bank till expiry of defect liability period.

15.

MODE OF PAYMENT
Payment shall be made through Electronic Fund Transfer (EFT) System. All
payments in connection with this work will be made through Electronic Fund
Transfer System under which EPI will transfer fund to Contractor having Bank
Account with any of the participating Commercial Bank. Party is required to
provide Bank A/C No. & RTGS No.

16.

QUANTITY VARIATION
The quantity finally required to be executed may vary. The rates are valid for
variation of ( ) 20% of total order value on account of quantity variation.

17.

METHODOLOGY
Contractor shall submit within 10 (ten) days of date of issue of LOI / PO, details
of all materials and methods proposed to be used in the work, for purchasers
approval. The work shall be carried out strictly according to the approval given
by purchaser.

18.

ESCALATION, IDLE TIME ETC.

Escalation, idle time and interest charges on any account whatsoever shall not
be payable to the contractor.

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19.

ISSUE OF MATERIALS

19.1

EPI will issue the materials from CFAs stores within Cordite Factory premises
the equipment to be erected, paints and made ready for testing and
commissioning.

19.2

Necessary indents for the materials shall be raised by contractor based on the
drawing, BOMs, layout etc.

19.3

Materials will be issued only for the works under this contract and not for any
other purpose.

19.4

The contractor shall bear all other costs including lifting, safe custody and
handling, transportation from CFAs stores etc. and return of surplus
serviceable/scrap materials to CFAs store within the Cordite Factory premises.

19.5

All materials issued to the contractor by EPI shall on completion of or on

foreclosure of the works, be returned by the contractor at his expense, at the
place of return designated by EPI, after making due allowance for actual
erection and permissible wastage within the limits mentioned in this contract.

19.6

All surplus unused/scrap material will be property of the EPI/CFA and shall be
returned by the contractor at his own cost to CFAs store. In case the contractor
fails to do so then recovery for the unreturned quantity of materials will be made
at penal rate which will be three times the landed cost as determined by EPI.
The decision of Engineer Incharge on this will be final and binding upon the
contractor.
Wastage on fittings, valves, mechanical parts of instruments, equipment etc. will
not be allowed.

19.7

Permissible wastage for raw materials such as pipes, steel plates and
structural etc shall be limited to 10% of finished installed quantity, as
follows:
a) Irrecoverable @ 2% of finished installed quantity.
b) Recoverable @ 8% of finished installed quantity, to be returned to
Purchaser by Contractor.
20.

INSURANCE

20.1

EPI shall take a composite insurance cover under Marine-cum-Erection

Insurance Policy ( MCE) covering dispatch from warehouse of the supplier
(overseas/inland) equipment in the course of ordinary transit upon arrival at
the project site, while in storage and being erected till completion of testing.

20.2

Contractor shall arrange insurance cover for workmen, construction equipment

etc. at his own expense.

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21.

CONSTRUCTION FACILITIES AT CFA,ARUVANKADU SITE

21.1

Water required for the work will be made available on chargeable basis to the
contractor at one point near the site as determined by the client. The contractor
shall make his own arrangements for water meter and for drawing water from
this point and further distribution at his own cost.

21.2

Electric power will be made available to Contractor on chargeable basis at one

point near the site as determined by the client. Energy meter, distribution switch
boards, cables and their connections etc. shall be arranged. Installed and
maintained by contractor, at his own cost. The electric installation shall conform
to Indian Electricity Act 1910 and relevant rules with latest amendments.

21.3

No other facilities / utilities will be provided to the contractor. If required, these

are to be arranged by the contractor at his own expense.

22.

DEFECTS LIABILITY PERIOD

22.1

Defects liability period is 12 months from the date of taking over of plant by CFA,
Aruvankadu

22.2

During the defects liability period defined above, the contractor will be liable to
make good any defect/replace defective parts whether arising from faulty
materials or workmanship or erection or from any act of commission or omission
of the contractor. All such rectification/replacement shall be done at site and
return of the defective parts shall be arranged by the contractor at his own
expense.

22.3

Warranty for any defective parts or material requiring replacement or rectification

by contractor shall extend until the expiry of 6 (six) months from the date of
replacement or rectification by contractor or until the end of the period as per
sub-clause (a) above, whichever is later and moreover the warranty period for
the entire scope of work of the contractor under this order shall be extended by
a period equal to the period during which the plant is out of action as result of
defect covered by warranty.

23.

TEST & INSPECTION

23.1

All materials and works shall be subject to IBR/CFA/EPIs examination and

approval at each stage thereof and contractor shall give notice to the EPI when
each stage is ready. Inspection of IBR Authority is to be arranged by the Party.

23.2

Inspection shall be carried out by the EPI and CFA against an advance
intimation. The inspection call, raised by contractor shall be accompanied by
internal inspection reports, test certificates, materials test certificates and other
relevant documents.

23.3

Inspection or approval by CFA/EPI shall not relieve the contractor of any of his
obligation under this contract. No certificate of the EPI shall by itself be
conclusive evidence that any work or materials to which it relates are in
accordance with the contract.

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23.4

The contractor shall arrange all equipment, instruments, tools, manpower etc,
for and shall carry out the various tests as required that may be furnished to him
during the performance of the work, at his own expense. All the tests either on
the field or outside in laboratory etc. concerning the execution of the work and
supply of materials by the contractor shall be carried out by the contractor at his
own expense.

23.5

The contractor shall use only tested and calibrated equipment, instruments, etc.
for execution of work.

23.6

Issue of inspection certificate will in no way exempt the contractor from his
obligations.

24.

LABOUR
The contractor shall comply with all requirements regarding labour as detailed at
relevant clauses of GCC. Contractor shall submit regularly documents
related to payment of wages, statutory obligation, Insurance under
Workmens Compensation Act / ESI as may be applicable.

25.

SAFETY

25.1

The contractor shall comply with all requirements regarding safety as detailed at
relevant clause of GCC.

25.2

All statutory safety rules and regulations prevailing in the area and as prescribed
by the company shall be observed by the contractor. The contractor shall be
responsible for paying strict attention to statutory regulations for prevention of
accidents and to other safety rules. The regulation for prevention of accidents
shall be strictly followed.

25.3

The contractor shall acquaint himself with all the relevant statutory regulations
such as Indian Electricity Rules etc. and comply with the regulations.

25.4

The contractor shall be responsible for safety arrangements and protective

clothing for all operatives on the site whether or not engaged in actual operation
or supervision. The contractor shall also be responsible for safety arrangements
of all equipment used for construction and shall employ trend workmen
conversant with safety regulation. The contractor shall use only tested
equipment and tools and shall periodically renew tests. All test certificates shall
be made available at the site of work.

26.

WATCHING & LIGHTING

The contractor shall provide and maintain at his own expense all lights, guards,
fencing and watching when and where necessary or required by the purchaser
for the protection of the works or for the safety and convenience of those
employed on the work or others.

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27.

SUPERVISION
Contractor shall at his own expense arrange for supervision of the work by
requisite number of competent persons approved by purchaser.

28

TIMINGS, GATEPASS PROCEDURES ETC.

28.1

Timing, gate pass procedures, safety precautions, materials entry procedures

etc. have to be observed by the contractor as applicable under the Cordite
Factorys Rules & Regulations

28.2

Security pass and tokens issued by Cordite Factory shall be returned to the
security office immediately after completion of work and certificate to this effect
shall be obtained from Cordite Factory Security Office by Contractor., which will
have to be produced for claiming balance payment / final payment.

29.

ST/WCT REGISTRATION
Within a period of 1 (one) month of date of issue of LOI / P.O. the contractor
shall get themselves registered under Tamilnadu Sales Tax / Works Contract
Tax Act and furnish to purchaser a copy of the registration certificate.

30.

ACCOMODATION
Accommodation ( Residential or office ) will not be provided by EPI. It is the sole
responsibility of the contractor.

31.

CLEARENCE OF SITE ON COMPLETION

31.1

On completion of work all construction plants, vats, tanks, materials/rubbish and

temporary structure of any sort or kind used for the purpose of or connected with
construction are to be removed by the contractor and all pits and excavations
filled up and the site handed over in a tidy and workmanlike condition, No final
payment in settlement of the accounts for the works shall be held to be due
or shall be made to the contractor till such site clearance shall have been
affected by him.

31.2

In the event of the contractor failing the comply with this provision within 7 days
after receiving notice in writing from EPI to the effect such clearance may be
made by EPI at the expense of the contractor and EPI shall under no
circumstances be held liable for any loss or damage to such contractors
property as may be on site due to removal therefrom.

32.

RISK PURCHASE
If at any time EPI finds that work is not progressing according to the agreed
progress, then EPI shall be free to get it executed through other agencies at the
risk and cost of the Contractor.

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33.

PATENT RIGHT AND SECRECY

Any information, data, specifications, drawings, documents, instructions relating
to the process of work performed under this order shall be regarded as
confidential and contractor will not reveal their contents to any unauthorized
party.
The manufacturer / Contractor shall defend any claim which alleges in a suit or
proceeding against the Purchaser that the materials / equipment or any part
thereof or any process of manufacture constitute an infringement of any patent,
if notified in writing and given authority, information and assignments for the
defence and the manufacturer/Contractor shall keep the purchaser indemnified
in this regard.
Contractor, on completion and taking over of the executed work, shall return all
the drawings/ document, issued by the Purchaser for the purpose of execution
of the work.

34.

All other terms not specified above shall be as per the General Conditions of
Contract (GCC) of EPI.

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