Standard Bid Document (for works less than Rs 5 crores)
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CLAUSES OF CONTRACT 1 ) PERFORMANCE GUARANTEE AND SECURITY CLAUSE-1 The contractor whose tender is to be accepted, shall furnish: 1.1 A bank guarantee of Schedule Bank in the prescribed format (Specimen format attached) in favour of the Executive Engineer-in-charge for an amount of 5% of the amount of contract immediate after acceptance of tender valid up-to six months beyond the date of completion (Time limit) to cover the amount of liquidated damages and/or the compensation of the breach of contract. No payment for work done of any kind shall be released till such guarantee is furnished. 1.2 A cash security at 5% of the amount of contract inclusive of the Earnest money initially deposited with the bid to cover the cost that may be involved in removal of defects, imperfections or taking remedial measures in the work, which has been executed to be progressively deducted @ 5% in all payments, after affording credit for the initial Earnest money, 60% of the security will be refunded after 3 months of the completion of work as certified by the Engineer-in-charge with respect to the satisfactory removal of all defects, imperfections, short-comings and taking remedial measures, that may be necessary and after recording of final measurement of work done, for which the certificate of the Engineer-in-charge would be conclusive. 1.3 The remaining amount of security shall be released after expiry of 4 month or expiry of one rainy season which ever is later from the date of completion of work and after removal of all defects, imperfections and shortcomings that may be noticed during this period and after satisfactory winding up of the contract as provided in clause 6A to the entire satisfaction of the Engineer-in-charge. 2 ) COMPENSATION FOR DELAY CLAUSE -2 The time allowed for carrying out the work shall be the essence of the contract and shall be strictly observed. It shall be reckoned from the date on which the order to commence the work is given to the contractor who shall ensure all due diligence to achieve progress of work not less than indicated below:-’ (i) On lapse of 25% contractual time = 15% (ii) On lapse of 50% contractual time = 40% (iii) On lapse of 75% contractual time = 80% (iv) On lapse of full contractual time = 100% In case of default, the contractor shall, notwithstanding issuance of a prior notice in this regard, pay prospectively as liquidated damages, an amount up to 1 % of the amount of contract or such lesser amount that the Engineer-in-Charge may levy, for every week that the work remains un-commenced after 10 days of the issue of acceptance letter or the minimum progress of work stated above is not achieved or the work remains unfinished after the completion date. In case of continued default or shortfall in progress, the Engineer-in-Charge may go on enhancing the levy of liquidated damages prospectively, each time limited to 1 % of the total amount of work per week of further default subject to maximum limit of five percent of the amount of the contract. The Superintending Engineer-in-charge of the work on representation from contractor, after hearing both the parties I.e. Engineer-in-charge and contractor may reduce the amount of liquidated damages and his decision in writing shall be final. 3) BREACH OF CONTRACT-LEAVY OF DAMAGES CLAUSE-3 The Engineer-In-charge may without prejudice to other rights and remedies, under the provisions of the contract or otherwise after issuing a notice, in writing and getting the final bill prepared, absolutely determine the contract after levying compensation for damages of five percent of the amount of the contract, if the contractor, commits breach of contract under any clause of the contract, or in any of the following cases. 3.1 If the contractor suspends the execution of the work and in-spite of having been given a notice in writing by the Engineer-In-Charge, fails to resume the work within ten days of the issue of the said notice. 3.2 If the contractor, having been given a notice-in-writing by the Engineer-in-Charge, fails to rectify, reconstruct or replace any defective work or continues the execution of work in an inefficient, improper, unworkman-like manner or not in accordance with sound engineering practices or without complying with. the directions and requirements within a period of 10 days of the issue of said notice. 3.3 If the contractor being a company shall pass a resolution or a court shall make an order of the effect that the company shall be wound up or if a receiver or a manager on behalf of the creditor shall be appointed or if circumstances shall arise which entitle the court of creditor to appoint a receiver or manager or to make a wading up order. 3.4 If the contractor commits any of acts or defaults mentioned in clause 21 and 24 thereof, provided further, that in case action under clause 2 as aforesaid levy of liquidated damages is also taken, total amount of liquidated damages and compensation for breach of contract under both the clauses shall be limited to 7.5 percent of the amount of the contract or the amount available with the Board. including bank guarantee whichever is less. The requisite amount for which the contractor may become liable shall be realized by enchasing the Bank Guarantee furnished by the contractor, as specified in clause 1 above and/or from other amounts due to the contractor in respect of this work or any other work, undertaken for the board. 3.5 If the contractor fails to deploy machinery and equipment or personnel as specified in programmed work at the appropriate time. 3.6 After the termination of the contract under this clause, the board shall be at liberty to (i)get the balance work executed through some other contractor agency or through board means or to (ii) abandon the balance work altogether or to (iii) modify the design and scope of the work in any manner. The contractor shall have no claims against the board for treating the work in any manner deemed fit. 4) LIABILITY OF CONTRACTOR AND POWERS TO TAKEOVERAND DISPOSE OFF CONTRACTOR’S PLANT CLAUSE-4 In any case, in which any of the powers conferred upon the Engineer-in-Charge by clause 3 hereof shall have become exercisable and the same shall not be exercised, the non-exercise thereof shall not constitute a waiver of any of the conditions hereof and such powers shall, notwithstanding, be exercisable in the event of any future case or default on the part of the contractor, for which by any clause or clauses hereof, he is declared liable to pay compensation and the liability of the contractor for past and future compensation shall remain unaffected. 4.1 In the event of the Engineer-in-Charge putting in force all or any of the powers vested in him under the preceding clauses, he may, if he so desires, after giving a notice in writing to the contractor take possession of any or all tools, plant, materials and stores in or upon the works or the site thereof belonging to the contractor or procured by him and intended to be used for execution of the work on any part thereof, paying or allowing for the same in account at the contract rates or in case of these not being applicable, at current market rates to be certified by the engineer-in-charge 4.2 whose certificate thereof shall be final. Otherwise Engineer- in-Charge may, by giving a notice in writing to the contractor or his agent at the site of work, require him to remove such tools, plants, materials or stores from the premises within the time specified in notice. In the event of the contractor failing to comply with any such requisition, the Engineer-in-Charge may, get them removed at the contractor’s expenses or sell them by auction or private sale on account of the contractor and at his risk in all respects. The certificate of the Engineer-in-Charge as to the expense of any such removal and the .amount of proceeds and expense of any such sale shall be final & conclusive against the contractor. 5 ) EXTENSION OF TIME CLAUSE-5 If the contractor shall desire an extension of the time for completion of the work on the ground of his having been unavoidably hindered in its execution or any other ground, he shall apply in writing to the Engineer-in-Charge (with corresponding time extension in Performance Bank Guarantee) within thirty days of the date of hindrance (but before the expiry of time limit) on account of which he desires such extent ion as aforesaid’ and the Superintending Engineer shall if in his opinion (which shall be final) reasonable grounds be shown therefore, authorize such extension of time as may in his opinion be necessary or proper. No application for extension of time received late or addressed to the Sub-Divisional Engineer or any officer other than the Engineer-in-Charge shall be considered valid. If the contractor fails to apply for extension as aforesaid and the work is not completed within the time limit, the contract shall be determined absolutely after action under clauses 2 and 3 above 6) COMPLETION CERTIFICATE CLAUSE-6 Within ten days of the completion of work, the contractor shall give notice of such completion to the Engineer-in-Charge & within 30 days of the receipt of such notice, the Engineer-in-Charge shall inspect the work and if there is no defect in the work, shall furnish the contractor with a certificate of completion, otherwise a provisional certificate of completion indicating the defects (a) to be rectified by the contractor and/or (b) for which payment will be made at reduced rates shall be issued. However, no certificate, provisional or otherwise, shall be issued, nor shall the work be considered to be complete until contractor shall have removed from the premises on which the work shall be executed all scaffolding, surplus materials, rubbish and all huts and sanitary arrangements set up for his labour on the site and cleaned off the dirt from all wood-work, doors and windows, walls, floor or other parts of the building, in, upon or about which the work is to be executed or of which he may had possession for the purpose of execution thereof and not until the works shall have been measured by the Engineer-in-Charge. If the contractor shall fail to comply with the requirements of this clause as to the removal of scaffolding, surplus material and rubbish, all huts and sanitary arrangements and cleaning off as aforesaid before the expiry of date fixed for the completion of work or the date of notice as mentioned above whichever is later the Engineer-in-Charge may, at the expense of the contractor get cleared off such dirt as aforesaid and the contractor shall forthwith pay the amount of all expenses so incurred and shall have no claim in respect of any such scaffolding or surplus materials as aforesaid except for any sum actually realized by the sale proceeds thereof. 6-A) WINDING UP OF THE CONTRACT CLAUSE-6-A On completion of the work, the contractor shall hand over the same to the Engineer-in-Charge or his authorized representative free from all defects, shortcomings or imperfections. He shall clear the site of all temporary works, pits, go downs, offices, sanitary, scaffolding, debris, waste materials and installations, He shall also furnish the following documents duly signed by him or his authorized representative :. (i) Completion drawings showing the work as finally constructed. (ii) Variation statement showing the altered items, if any, against those provided in the original drawings. (iii) Original site instructions book. (iv) Original Registers for various qualities control tests as specified. (v) Cement consumption register. 7) PAYMENT ON INTERMEDIATE CERTIFICATES REGARDED AS ADVANCES CLAUSE-7 No running payment shall be made for work agreement costing Rs 50,000 (fifty thousand) till the whole of the work shall have been completed and a certificate of completion given. But in the case of works agreement to cost more than rupees fifty thousand, the contractor shall on submitting a bill thereof be entitled to receive a monthly payment proportionate to the part thereof, the time limit than executed to the satisfaction of the Engineer-in-Charge, whose certificate of the sum payable shall be final and conclusive against the contractor. But all such intermediate payments shall be regarded as payments by way of advance against the final payment only and not as payments for work actually done and completed; and shall not preclude the requiring of bad, unsound, imperfect or unskilled work to be removed and taken away and reconstructed or re-erected or be considered as an admission of the performance of the contract or any part thereof in any respect of the acquiring of any claim, nor shall conclude, determine or effect in any way the powers of the Engineer-in Charge under these conditions or any of them as to the final settlement and adjustment of the accounts or otherwise or in any other way vary or affect the contract. The final bills shall be submitted by the contractor within one month of the date fixed for completion of the work, otherwise the certificate of the Engineer-in-Charge as regards measurements and the total amount payable for the work shall be final and binding. 8) BILL TO BE SUBMITTED MONTHLY CLAUSE-8 A bill shall be submitted by the contractor each month on or before the 10th or any other date fixed by Engineer-in-charge accompanied by the following documents: 1. Measurements and quantities of items of works done since last bill. 2. Up to date statement of materials received from the stores showing the recovery made up to last bill in question, both in terms of quantity and value. 3. Copies of quality control tests in specified format covering the work done since last bill. 4. Copies of instructions recorded in the site instructions book containing the instructions and compliance made thereof, covering the work done since last bill. 5. Copy of challan in token of having been deposited the EPF of the staff employed under contractor for the proceeding month 8.1 A bill which is not accompanied with the above documents shall not be entertained. 8.2 The Engineer-in-charge shall get the bill verified, if possible, within 30 days from its presentation and the contractor shall be required to sign the correction made, if any, in token of its acceptance, before releasing or adjusting the payable amount If the contractor does not submit the bill within time limit or delays its submission or acceptance of correction after verifications, the entire responsibility for non-payment or delay in payment shall rest with him. 9) BILL TO BE ON PRINTED FORMS/EXTRA-ITEMS CLAUSE-9 The contractor shall submit all bills on the printed forms to be had on application from the office of the Engineer-in-charge and the rates in the bills shall always be entered at the rates specified in the tender or in the case of any extra works ordered, in pursuance of these conditions and not mentioned or provided for in the tender, at the rates hereinafter provided for such works. 9.1 The contractor shall deliver in the office of Engineer-in-charge on or before the 10th day of every month during the continuation of the work covered by this contract, a return showing details of any work to be charged of extra with value based upon the rates and prices mentioned in the contract or in the common schedule of rates applicable to the location of work on the date of tender. The contractor shall include in such return particulars of all demands of whatever kind and howsoever arising, which at the date thereof he has in respect of or in any manner arising out of execution of work. The contractor shall be deemed to have waived off all claims not included in such return and will have no right to enforce any such claim not so included, whatsoever be the circumstances. 10 ) STORES AND SUPPLIES CLAUSE-10 The contractor shall arrange all the schedule material required for construction and other’ required materials at his own cost and will bear all the taxes including transportation, loading, unloading, stacking, storage, safe custody against the damage due to sun, rain, dampness, fire, theft, etc. 10.1 The contractor shall procure all material from sources approved by Engineer-in-Charge in writing. All the materials brought to the site shall be duly accounted for by the contractor and got insured against loss due to any reason what so ever. Proof regarding this supported by the copies requisite document shall be regularly submitted to Engineer-in-Charge. The board may summon complete record of the procurement of materials/item of the contractor at any time at the site, the material shall be accounted in a manner prescribed by Executive Engineer-in-Charge in writing. 10.2 The material procured by the contractor shall be strictly according to the specifications of the material conforming to ISI or any other approving authority applicable, Storage of the material should be as per approved norms. No damage or inferior material will be kept at -the site of work for more than. 7 days from the date of order of the Engineer-in-Charge to remove the material. 10 ) SECURED ADVANCE CLAUSE-10 A The contractor on signing an indenture in the form to be specified by the Engineer-in charge shall be entitled to be paid during the execution of work up to 75% of the estimated value of any materials which are in the opinion of the Engineer-in-charge non perishable under para-2.105 of PWD code coupled in accordance with the requirements with rule 7.37 of D.F.R. (Financial Hand Book No.3) of the contract and which have been procured and adequately stored against damage, but which have not been incorporated in the works at the time of making advance. 10 B ) MOBILIZATION ADVANCE CLAUSE-10B On application by the contractor, mobilization advance to the extent of 5% of the value of the work may be paid to the contractor at an interest of 18% per annum after the fulfillment of following conditions before payment: 1. The contractor shall have physically completed at least 2% of the value of work. 2. The contractor shall have collected at site usable machinery and materials valuing at least 5% of the value of works and the same shall be hypothecated to Engineer-in-Charge by designation. 3. The material shall not be pledged for obtaining secured advance. 4. The recovery of mobilization advance and interest thereof shall start when 20% of the work is completed and shall be fully made when 80% of the work stands completed. 11 ) DRAWINGS,ORDERS ETC. WORK TO BE EXECUTED IN ACCORDANCE WITH SPECIFICATIONS CLAUSE-11 The contractor shall execute the whole and every part of the work in the most substantial and workman-like manner, both as regards materials and labour and otherwise in every respect in strict accordance with the Punjab PWD/MOST specifications latest Editions. The contractor shall also confirm exactly, fully and faithfully to the designs, drawings and instructions in writing relating to the work signed by the Engineer-in-Charge and lodged in his office and to which the contractor shall be entitled to have access during the office hours or on the site of work. The contractor shall be furnished free of charge one copy of all such drawings and such specifications as are not included in the printed Punjab P.W.D/MOST specifications. He shall, if he so requires, be entitled at his own expenses to make or cause to be made copies of the drawings, designs, specifications and instructions as aforesaid. 11.1 For ensuring the requisite quality of construction, the material used in works shall be subjected to quality control tests for material and workmanship tests as laid down in Punjab P.W.D./MOST. Specifications as amended from time to time or the relevant standards laid down by the Bureau of Indian Standards/Hand Book of Quality Controls for constructions of roads and runway I.R.C. Latest Editions or instructions issued under the order of the Chief Engineer, Punjab P.W.D (B&R)/Punjab Mandi Board by the Engineer-in-Charge and/or in conjunction with the quality control cell of Punjab P.W.D (B&R)/PH/ irrigation Deptt ./ PMB The contractor shall provide all help and assistance in proceeding with required tests. 11.2 The contractor shall set up quality control field laboratory required at least with the test equipment indicated into these “Conditions of Contract” Annexure-1 and employ trained staff to carry out periodical tests as per directions and procedures laid down by the quality control cell of the Chief Engineer’s Office. The records shall be maintained in the prescribed formats and copies thereof covering the work done in each month shall be submitted with the bills. 11-A REMOVAL OF EMPLOYEES / WORKMEN CLAUSE-11-A The Engineer-in-Charge shall have full powers at all times to object to the employment of any workmen, Foremen or other employees on the work by contractor, and if contractor shall receive notice in writing from the Engineer-in-Charge requiring the removal of any such person from the work, the contractor shall comply with the order forthwith. No such workmen/foremen or other employees, after his removal from the work by order of the Engineer-In-Charge shall be re-employed or re-instated on the work by the contractor at any time except with the prior approval in writing of the Engineer-in-Charge . The contractor shall not be entitled to demand the reason from the Engineer-in-Charge for requiring the removal of any such workman/foreman or any other employee. 12 ) ALTERATION IN SPECIFICATIONS AND DESIGNS CLAUSE-12 The Engineer-in-Charge shall have power to make any alteration, omissions from, additions to or substitutions for the original specifications, drawings, designs and instructions that may appear to be necessary, advisable during the progress of work, and the contractor shall be bound to carry out the work in accordance with any instruction which may be given to him in writing, signed by the Engineer in-Charge. Such alteration, addition or substitution shall not invalidate the contract and any altered, additional or substituted work shall be carried out by the contractor on the same conditions in all respects on which he agreed to do the main work and at the same rate as are specified in tender for the main work. The time of completion of the work shall be extended on in the proportion that the altered, additional or substituted work bears to the original contract work and the certificate of the Engineer-in-Charge shall be conclusive as to such proportion. The rates of such additional, altered or substituted work shall be determined in accordance with following provisions in their respective order:
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