engineering, procurement and construction management...

SPM EPCM CONSULTANT of 120

INVITATION TO BID

FOR

ENGINEERING, PROCUREMENT AND CONSTRUCTION MANAGEMENT SERVICES

FOR

SINGLE POINT MOORING (SPM) SYSTEM

AT

VISAKH REFINERY, VISAKHAPATNAM

ITB no.:CE:117

HINDUSTAN PETROLEUM CORPORATION LIMITED 6th Floor, Central Engineering,

Petroleum House, 17, Jamshedji Tata Road ,

Mumbai-400 020 ��

� �

December, 2007


CONTENT --------------------------------------------------------------------------------------------------------------------- SECTION SUBJECT PAGE NO. A GENERAL B PHASE-I: DETAILED SCOPE OF WORK C PHASE-II: DETAILED SCOPE OF WORK D COMPLETION SCHEDULE E PAYMENT TERMS F BID QUALIFICATION CRITERIA G INSTRUCTIONS TO BIDDERS & OTHER GENERAL CONDITIONS H GENERAL TERMS & CONDITIONS OF CONTRACTS I SPECIAL CONDITIONS OF CONTRACT J PRICE SCHEDULE Attachment –I : Integrity Pact Attachment-II : Integrity Pact Attachment-III: General terms and conditions of HSE Attachment-IV: Agreed commercial terms and conditions Attachment-V: Form of Acknowledgement Attachment-VI: Form of Bid Attachment-VII: Format of Bank Guarantees

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SECTION A

GENERAL

1.0 INTRODUCTION:

Hindustan Petroleum Corporation Limited (HPCL) is one of the major petroleum refining

and marketing company in Indian downstream oil sector, ranked 336 in the Fortune 500

of Year 2007. The corporation operates 2 Refineries, producing a wide variety of

petroleum fuels & specialties, one in Mumbai, Maharashtra of 5.5 MMTPA capacity and

the other in Visakhapatnam, Andhra Pradesh with a capacity of 7.5 MMTPA. The

turnover for 2006-07 is Rs. 96,700 crores ( USD 23 billion approx.).

HPCL is accorded a Navratna status, pride of place accorded by the Government of India

because of its infrastructure and large network, in recognition of their excellent services,

global potential and commitment to the nation's growth.

HPCL desires to upgrade the present arrangement of crude receipt at its Visakh Refinery

(VR), that is, to receive and handle marine tankers of higher capacity viz. Very Large

Crude Carriers (VLCC) in order to minimize the transportation cost and improve the

operating economics.

2.0 DESCRIPTION OF EXISTING FACILTY

HPCL – VR is currently receiving crude from various sources through Offshore Tanker

Terminal (OSTT) of Visakhapatnam Port Trust (VPT) to meet the current processing

capacity of the refinery. This OSTT at VPT has design depth of 19 m below Chart Datum

(CD) and therefore cannot receive VLCC tankers. Presently the crude is unloaded

directly into the crude tanks at refinery and existing Additional Tankage Project (ATP)

through a 36” dia. crude receipt pipeline from OSTT.


3.0 BRIEF SCOPE OF THE PROJECT

For supplying crude oil to the refinery, crude oil will be unloaded from VLCC tankers

through SPM at Visakh port and transferred through pipeline to the Crude Oil Terminal

(COT) / refinery tank farm /ATP where it will be stored in crude oil storage tanks.

Crude oil will be pumped from VLCC tankers (300000 DWT) and also from other

smaller tankers moored at proposed SPM (Single Point Mooring) by the tanker pumps

into the crude oil storage tanks via a single 48” dia. offshore pipeline from Pipeline End

Manifold (PLEM) at SPM location to Land Fall Point (LFP) and 48” dia. onshore

pipeline from Land fall Point (LFP) to new COT which is proposed to be located near

refinery, approximately 2 km from Refinery.

The major facilities that are included in the project are:

- SPM – To handle 300000 DWT tankers and associated facilities. SPM is proposed to

be installed at South East of Visakhapatnam, Andhra Pradesh, India and the

coordinates of which are :

Latitude : 17 deg 39’ 8.5”

Longitude : 83 deg 18’ 55.3”.

SPM is located 4.2 km from shore and the water depth at the SPM location is approx.35

m below CD. Pipeline approaches shore between existing breakwater and hill (Dolphin

nose).

- 48”dia, Offshore pipeline of 4.2 km length from the SPM upto LFP. Pipeline route

approaches LFP where HPCL is already having setup for its existing LPG import, the

coordinates of which are : Latitude: 17 deg 40’ 54.5” & Longitude: 83 deg 17’

41.3”.

- 48” NB, Onshore pipeline of 12 km length from LFP to COT. From LFP onwards

pipeline route is proposed parallel to existing 36” dia. Crude oil pipeline at the

foothill of Dolphin hill.


- Latest available suitable communication facilities between SPM and COT

/Refinery/ATP tank area

- Surge protection system for the offshore / onshore pipeline.

- Instrumentation and telemetry systems: Latest suitable instrumentation facilities need

to be provided,

- Control / operation philosophy of pipeline operation from control room to be

developed and finalised at LFP or COT area.

- Pigging system for 48” pipeline from SPM upto COT line

- Cathodic Protection System for total system and Safety provisions consisting of

navigational aids, life buoys, fire fighting equipments etc at SPM location.

- Hook up of the proposed crude line with existing 36” crude line within the refinery,

ATP tanks and new COT.

- Indian Strategic Petroleum Reserves Limited (ISPRL) is developing a 1.3 million Ton

capacity strategic underground crude storage near the LFP. The proposed SPM

facility shall be used for receipt of crude in the crude cavern. Accordingly, a tap off

facility for the proposed Strategic crude cavern is to be provided.

- The Project Battery limit starts from tanker rail manifold ( where the floating hose

would be connected) to the crude oil manifold at new COT.

The Fair weather period for the location is from December to February.

4.0 ADVANCE STUDIES / SURVEYS CARRIED OUT

As a part of pre-project activities, HPCL has carried out the following surveys / studies

which will form inputs for implementation of the project.

a) Pre- feasibility report has been completed

b) Oceanography study, Seabed Engineering survey, pipeline route survey for

offshore pipeline route and Environmental Impact Assessment study has been

carried out.


c) A Coastal Regulation Zone study is being carried on the onshore pipeline route.

d) Geotechnical survey carried out for offshore pipeline route and SPM location.

e) Onshore pipeline survey - The detailed survey & cadastral survey is being done

on the finalized route.

5.0 IMPLEMENTATION PLAN

The project is proposed to be executed through conventional Engineering, Procurement

and Construction Management (EPCM) mode. The total job will be awarded in two

separate phases. Phase I is for the preparation of detailed engineering and tendering of

critical items / contracts upto recommendation, for the preparation of a DFR with realistic

project cost estimate with an accuracy level +/-10%.

Phase –II will be awarded immediately after the investment clearance from the HPCL

competent authority for the project cost estimate submitted and covers balance detailed

engineering, procurement, inspection, project management, commissioning and

performance test run of the project.

The brief scope under Phase –I and Phase –II is given below:

Phase –I: Based on the studies carried out by HPCL as pre-project activities, EPCM

CONSULTANT is required to carry out the following:

a) Review of the studies carried out by HPCL and fill up the gaps if any.

b) Preparation of Basic Design Engineering package (BDEP)

c) Preparation of detailed cost estimate with an accuracy level of +/- 10 % for the project

after doing the necessary detailed engineering and tendering of critical items /

contracts (major ones like SPM, pipe, Pipe coating, installation of SPM / offshore /

onshore pipeline, communication system, cathodic protection system etc) upto

purchase recommendation for the preparation of detailed cost estimate.


d) Detailed cost estimate to be furnished based on the quotations received for identified

critical procurement items and Schedule of rates prepared for various contracts/

packages and other procurement items envisaged for the total project.

e) Preparation of DFR with +/- 10 % cost estimate, firm completion schedule and

economics for establishing the economic viability.

On developing the firm cost estimate for economic feasibility in Phase –I, parallely

HPCL will engage financial consultant to carry out financial appraisal of the project.

EPCM CONSULTANT needs to coordinate with the Financial appraisal consultant for

providing necessary data inputs.

After the receipt of cost estimate, schedule and economic analysis from EPCM, HPCL

will be approaching the competent authority for the approval of the project cost. Phase –II

will be awarded subsequently after getting the approval for the project cost.

Phase –II :

a) Placement of all orders for SPM, Pipes, other supply items and other contracts based

on recommendation basis bids received in Phase-I.

b) Order placement of items ( purchase and contracts) that were not considered phase-I

c) Carry out balance detailed engineering job.

d) Procurement, Construction supervision, expediting, certification, mechanical testing,

pre-commissioning, commissioning and guarantee test run including project

management.

HPCL solely reserves the right to carry forward the project after completion of

Phase –I and No drop dead fees for not proceeding ahead shall be paid to the

consultant except for the fees agreed under Phase-I.


SECTION B

PHASE-I : DETAILED SCOPE OF WORK

All works for the successful completion and commissioning of the project are deemed to be included in the scope of the offer, even if not specifically mentioned in this tender. Deletions/deviations, if any, shall be clearly specified by the bidder. The scope of work of the EPCM CONSULTANT shall generally include but not limited to the following:

1) REVIEW OF THE STUDIES CARRIED OUT BY HPCL AND FILL UP

THE GAPS IF ANY

a) Basis the inputs provided by HPCL (various studies carried out – mentioned in Section A), EPCM CONSULTANT has to firm up the broad scope of job to be carried out in the project.

b) If any shortcoming are observed in the input studies submitted by the surveyors, the data bank of EPCM CONSULTANT shall be used or EPCM CONSULTANT to coordinate with the surveyors through HPCL to derive the required data.

2) PREPARATION OF BASIC DESIGN ENGINEERING PACKAGE.

Prepare the basic engineering design data/package for the project with respect to the on-shore/off-shore pipelines, SPM (based on the surveys mentioned in Section A) This is for further works on Engineering and procurement and also for process/basic design works by EPCM. This will also ensure uniformity of the systems and design for SPM, Off-shore pipeline, and on-shore pipeline to enable optimal integration of all facilities associated with the project. The following needs to be included but not limited to: a) Process flow diagram and Process and Instrumentation diagram showing

flows, temperatures, pressure in equipment and piping b) Diagram showing hook up connections c) Equipment list with data sheets, instrument list, d) Line specifications indicating size, MOC , rating e) Details of control valves, instrumentation loops, relief valves, its type and

response etc. f) A supervisory operating instruction sufficient for start-up operation, shutdown

and emergency conditions should be prepared. .


3) PREPARATION OF DETAILED COST ESTIMATE WITH AN ACCURACY LEVEL OF +/- 10 %

A) EPCM CONSULTANT to finalize the Process Design for the project :

a) In order to accomplish the above, EPCM CONSULTANT is required to adhere to the following:

i) All design and engineering will be carried out preferably using the latest

version of appropriate American standards applicable to Petroleum Industry. Wherever American standards are not specific, British Standards/Indian Standards are to be followed. Oil India Safety Directorate (OISD) guidelines shall be applicable to all design and engineering to be carried out in addition to the standard mentioned above.

ii) Basic engineering design as well as subsequent detailed engineering by

EPCM CONSULTANT and construction by various contractors will also take into account various statutory requirements/standards applicable to India.

iii) EPCM CONSULTANT will ensure design packages are complete and

comprehensive to enable take-off for subsequent detailed engineering. EPCM CONSULTANT will carry out basic engineering so that final packages to be specified by EPCM CONSULTANT in major package are complete, uniform and suitable for tendering.

iv) Preparation of site layout for on-shore / offshore pipeline with elevation,

drainage, pipeline routing, etc.

v) Preparation of optimum tanker deployment at SPM to cater to various crude oil requirement of the refinery.

b) The process design services to be provided by EPCM CONSULTANT

shall include but not limited to the following: i) Check and review the Pipeline size proposed by HPCL basis the pre-

feasibility report for catering to a thruput of 15 MM TPA and for receipt of Crude Oil through various tankers such as MR, LR1, LR2, Suez-Max, VLCC, etc.

ii) Pipeline system connecting SPM, COT , ATP and refinery iii) Process design for pipelines (Off-shore, on-shore lines). iv) Basic design for SPM facilities. v) Pipeline surge analysis and its protection measures. vi) Integration of SBM/Off-shore/on-shore facilities with new COT vii) Design for pig launching and receiving facilities. viii) Hydraulic profile for the pipeline.


ix) Latest communication facilities are to be provided for communication between SPM/ Tanker and crude oil facilities at refinery and the Crude oil terminal area. Check the requirement of SCADA for the system and design the same, if required.

x) Design of oil leak detection system. xi) Design of Cathodic protection system. xii) Meter proving system. xiii) Tap off facility for strategic crude cavern , to ATP and to existing 36”

crude line xiv) Preparation of PFD/P&ID. xv) Design of facilities for future provision of corrosion inhibitor/flow

improvers. xvi) Interface computation, its cutting and batching philosophy xvii) Process studies for all items covered in the scope of projects.

c) In order to accomplish the above, a suitable process design basis has

to be developed.

This document will cover but not be limited to the following information: i) Design margin ii) Tie-up between upstream/downstream facilities iii) Crude Oil Characteristics iv) Pipe line Optimization Criteria v) Design considerations. vi) Corrosion inhibitor system vii) Pipeline coating system viii) Block diagrams showing flows.

B) EPCM CONSULTANT to consider the latest technology available to develop specifications of the facilities involved in the project:

Specification for:

i) Design / construction of above ground and underground piping ii) Design of SPM and associated facilities iii) Design of onshore line and related facilities iv) Design of off-shore line and connected facilities v) Pipeline Coating System guidelines.

- Electrical specifications - Instrumentation details and integration - Insulation and painting requirements

vi) Requirements of statutory authorities with respect to drawings,

specifications and documents.


C) EPCM CONSULTANT to provide detailed engineering services: EPCM

CONSULTANT has to provide its detailed engineering services for preparation of Material Requisitions / Tender documents for procurements / contracts.

i) EPCM CONSULTANT to ensure adoption of uniform practices for all the

units/systems, essentially covering the following: • Codes and standards • Piping material coding and specifications

ii) The basic engineering design and detailed engineering and construction should also take into account various statutory requirements/standards as applicable to India. A brief list of the same is reproduced below but shall not be limited to the following:

a) Factories Act b) Indian Petroleum Rules c) Tariff Advisory Committee Guidelines (for insurance

purposes) d) Liquid effluent discharge, as per Minimal National

Standards for liquid effluents and air emissions conforming to Pollution Control Board Standards

e) Civil Aviation Rules f) Indian Electricity Rules g) Requirement of Chief Controller of Explosives h) Oil Industry Safety Directorate i) Stipulations stated in Environment Clearance granted by

Ministry of Environment & Forest. j) Stipulations of Environmental authorities of the State of

Andhra Pradesh and coastal regulation zone authorities. k) Other legislation relating to environment protection, such

as:

# Water (Prevention and Control of Pollution) Act, 1974 # Water (Prevention and Control of Pollution) Cess Act,

1977. # Air (Prevention and Control of Pollution) Act, 1977 # Environment Protection_ Act, 1986 # Forest (Conservation) Act, 1980

m) Stipulations in environmental impact assessment studies/risk analysis studies/HAZOP studies.

n) Coastal Zone Regulations Act of Govt. of India.


o) OCIMF, ABS and other International standards and codes applicable for marine pipe laying / SPM installation

The list given above is a general one. EPCM CONSULTANT & other contractors are also to follow any other rules/standards/ requirements prevalent in India for implementation of the project. D) The services of various design engineering group of EPCM CONSULTANT

for undertaking the detailed engineering jobs shall include but not limited to the following:

I) Detailed Engineering - General:

a) Establishment and follow design basis for engineering and procurement.

b) Review and approval of drawings submitted by Contractors/Vendors

for supply of materials etc.

c) Submission of as-built drawings wherever the same is not furnished by the respective contractors.

d) Contractors would be asked to submit the as built drawings for the

facilities in their scope. EPCM CONSULTANT should review and approve all the as built drawings submitted by various Contractors / Suppliers and submit the same to HPCL.

e) Number of copies of drawings for distribution to HPCL/ Contractors

shall be as per the agreed coordination procedures.

f) Preparation of tender specification for contracts, evaluation, recommendation for all jobs.

II) General Civil:

a) Design for valve stations.

b) Estimate requirement of following enabling facilities for the project and initiate action for their execution through individual / package Contractors:

c) Site study for routing of the pipeline, construction aids like Crane, DG

Set, Welding Sets, Air Compressors, barges, pipeline coating machines and other special tools & tackles etc., required.


d) The number and nature of contract packages for completion of above work will be kept limited and developed/decided by EPCM CONSULTANT in close consultation with HPCL.

III Civil works - specifications:

a) EPCM CONSULTANT is to establish technical requirements/standards

for all types of civil engineering raw materials/inputs like aggregate, cement steel and other materials for coating of pipes, SPM installation, road crossings, and canal/river crossings as well as other construction material. The sampling/testing procedure should also be established.

b) While formulating the standards, suitability of local materials available

in the region should be considered.

c) EPCM CONSULTANT will specify design features taking due care of stipulations of various statutory bodies in respect of compliance with respect to safety, health, etc.

IV SPM System: a) Basic mechanical designs in accordance with various codes, to suit the

process operating conditions including materials specifications. b) Review and approval of vendor’s drawings as per package

specifications and Quality Assurance Plans. c) Fabrication Specification of equipment with special metallurgy. d) Design and specifications for suitable anchoring for the facilities.

V Piping: a) Preparation of preliminary equipment layouts. b) Identification of hook up points. c) Layout drawings for off-shore/on-shore pipeline. d) Review and approval of contractor’s construction drawings/ documents

as per QAP. e) Checking of design drawings, GADS, adequacy check for piping

supports and review/approval of piping flexibility inline with the requirements of packages

f) Specifications for mainline valves.


g) Pipeline laying methodology.

VI Civil/Structural Engineering: a) Preparation of contract Package inputs for Concrete coating of

pipeline, anchors of SPM and floating navigational aids.

b) Review and approval of Package contractor's drawings

VII Instrumentation:

a) Sizing and specification for control & safety valves, surge relief valves, flow elements etc..

b) Preparation of Instrumentation Package tender specifications and

technical evaluation / recommendation.

c) Review and approval of vendor drawings

d) Interlocks/logic diagrams/wiring diagram/instrument loop sketches e) Cabling/Tubing layout.

f) EPCM CONSULTANT to define/evolve a suitable Engg. Design

basis for all types of Instrumentation and Control Systems/equipment which may be used in the project.

g) EPCM CONSULTANT to define installation and Loop checking

concept of different types of instrumentation based on application.

h) EPCM CONSULTANT to suggest suitable instrumentation for pipeline operation, monitoring and maintenance and requirement of SCADA system./ telemetry system

VIII Corrosion Protection & Inspection Requirements:

- EPCM CONSULTANT will be required to specify suitable measures for corrosion protection of material/equipment for all the services involving corrosive media and also ensure suitable provisions are made for installation of "Inspection facilities" in most vulnerable locations to assist in periodic inspection and condition monitoring.


E) Finalization of purchase procedures, commercial terms and conditions for

procurement and contract along with HPCL F) Finalization of vendor list : EPCM CONSULTANT to finalize and submit

vendor list for all procurement items/ contracts with credentials of the vendor / contractors. In case a vendor list is not available for a particular item, EPCM CONSULTANT has to carry put short listing as per tendering / procurement procedures.

G) Tendering Activity

a) EPCM CONSULTANT to prepare Material requisition, floating of

enquiries on limited or global basis for major identified procurement items like SPM, 48” pipes, pipe fittings, valves, hoses which has a bearing on the accuracy of the cost of the project.

b) Conduct pre-bid meetings. Provide clarifications and ensure competitive bidding for procurement activity.

c) Receipt and opening of bids, technical and commercial evaluation and preparation of recommendations for placement of order.

d) Identify the number of contracts and develop the tender document for each like installation of SPM/ offshore line / onshore line, cathodic protection, piping coating etc..

e) Float the tender, provide clarifications, conduct pre-bid meetings and ensure competitive bidding for procurement activity and receipt and opening of bids, technical and commercial evaluation and preparation of recommendations for placement of order. If there is limitation in floating purchase requisition tender and the same has implication in deriving the cost estimate, then budgetary quotes could be obtained for such items.

- Basis all the above, EPCM CONSULTANT to develop detailed cost estimate

with an accuracy level of ±±±± 10% for the project and carryout financial analysis for project approval. EPCM CONSULTANT to furnish all the detailed back-ups prepared for estimating the project cost as detailed above and to associate with HPCL in presenting and getting the cost estimate approvals.

4) PREPARATION OF DFR Preparation of DFR with +/- 10 % cost estimate, the shut down philosophy of the SPM facility and safety aspects (especially during rough weather), firm completion schedule, implementation plan and financial analysis for establishing the economic viability. After the receipt of detailed Cost estimate, firm schedule along with economic analysis under Phase-I, the same shall be put upto the management for approval of


the project cost. HPCL anticipates obtaining the approval within one month. Phase –II will be awarded subsequently after getting approval for the project cost.


SECTION C

PHASE-II : DETAILED SCOPE OF WORK

All works for the successful completion and commissioning of the project are deemed to be included in the scope of the offer, even if not specifically mentioned in this tender. Deletions/deviations, if any, shall be clearly specified by the bidder. The scope of work of the EPCM CONSULTANT shall generally include but not limited to the following:

1) PLACEMENT OF ALL ORDERS : Placement of orders for SPM, Pipes, other supply items and other contracts based on recommendation based on bids received in Phase-I.

a) The consultant shall submit recommendations for placement of order on the

selected vendor. Upon approval of purchase recommendations by HPCL, a draft purchase order including purchase requisition shall be submitted by EPCM CONSULTANT to HPCL for releasing Purchase order on the successful vendor.

b) Order placement of items (purchase and contracts) that were not considered

phase-I.

2) BALANCE DETAILED ENGINEERING

Same activities / codes & standards mentioned in Section B -3C to be carried out for balance items.

3) POST ORDER PLACEMENT SERVICES FOR EQUIPMENT & MATERIAL SUPPLY

EPCM CONSULTANT has to coordinate with all suppliers on behalf of HPCL for review and approval of design drawings, monitor the schedule, inspection, expediting, attend review meetings to ensure quality and timely delivery of the equipment including certification of bills etc.

4) POST ORDER PLACEMENT SERVICES FOR CONTRACTS

EPCM CONSULTANT has to coordinate with all suppliers on behalf of HPCL for review and approval of design drawings, monitor the schedule, field inspection, construction supervision expediting, attend review meetings to ensure quality and timely execution of the contract.


5) ASSISTANCE IN OBTAINING STATUTORY APPROVALS

a) Envisage the various statutory approvals required for the project b) Provide all technical assistance and necessary inputs for the same c) Attend all the meetings along with HPCL in order to obtain timely approval d) EPCM CONSULTANT shall design and supervise facilities identified and

agreed by HPCL as a part of environmental clearance conditions.

6) EPCM CONSULTANT to ensure that complete project design, construction should comply with latest standards applicable.

7) SAFETY / ENVIRONMENT MANAGEMENT

EPCM CONSULTANT will consider and incorporate major features necessary to ensure safety of the project facilities and personnel. EPCM CONSULTANT will take into consideration local and international standards pertinent to pollution and environmental control, including effluents and solid waste, atmospheric emissions, noise control etc.

i. EPCM CONSULTANT shall ensure that their safety engineers are deployed to site to take care of safety during construction. EPCM CONSULTANT shall also ensure that the contractors deploy their safety engineers at site.

ii. HPCL at their discretion will witness/review any test/ records for ensuring

adherence to quality standards.

iii. Review of safety manual.

8) PROCUREMENT OF SPARES FOR THE PROJECT

EPCM CONSULTANT will review and recommend to HPCL for approval the major list and quantity of Commissioning , operation spares for 2 years and mandatory spares for the complete project and then procure and handover the same to HPCL after commissioning of the project.

i. EPCM CONSULTANT will ensure that major contractors obtain the

quotations for two years operation spares and procurement action taken separately for placement of order by HPCL.

ii. EPCM CONSULTANT will assist in evaluating and confirming

reasonableness of the price quoted for these O&M spares. EPCM CONSULTANT will ensure through major contractors that all identified/ordered spares are delivered in time for start-up/commissioning.


iii. EPCM CONSULTANT will review and ensure that major contractors provide for all required spares/replacement components that may be required during pre-commissioning and start-up activities of the plants within the overall contract value. If, however, any such commissioning spares are to be used by major contractors out of the O&M spares ordered separately by the HPCL, then EPCM CONSULTANT will be required to ensure that major contractors supplies timely replacement for the same free of cost.

9) PROCUREMENT INSPECTION

- EPCM CONSULTANT will monitor the complete inspection and quality

assurance program of the major contractors /other contractors, which will provide HPCL with acceptable and quality products.

- EPCM CONSULTANT will review and recommend to HPCL for approval the

inspection plan to be submitted by the major contractors as part of the Procurement Manual which will as a minimum include:

i. In-house inspection programs.

ii. Inspection procedures consistent with mandatory codes or governmental

rules of the locality

iii. Procedures for material identification, post-weld heat treatment, pre-shipment cleaning, and shipping.

iv. Certification of non-destructive testing results, pressure testing and

cleanliness after hydrostatic testing.

v. Conduct of non-destructive testing results, pressure testing and cleanliness after hydrostatic testing.

vi. Conduct independent inspection of al critical equipment at vendor's works

and issue inspection reports to HPCL.

vii. Cause and supervise major contractors to conduct management and control of shipping agencies for all transportation, handling, custom clearance, etc. for all materials to site/s.

viii. Cause and supervise major contractors to submit monthly material

procurement status report and special status report of late or critical items.

ix. Certify invoices submitted by contractor/Vendors.


x. EPCM CONSULTANT will require the major contractors to ensure that all manufacturers, fabricators, and suppliers utilize the above detailed inspection plan for the production of materials and equipment.

xi. EPCM CONSULTANT will require the major contractors to issue a list of

inspections scheduled on a bi-weekly basis. EPCM CONSULTANT will ensure that adequate notice will be given to allow EPCM CONSULTANT /HPCL to participate with major contractors inspectors in any specific inspection, test or non-destructive test.

xii. EPCM CONSULTANT will independently inspect the critical equipment

ordered by major contractors in addition to the inspection arranged by major contractors The items to be inspected will be decided on mutual agreement as per project requirement.

xiii. Inspection of all other materials shall be carried out by EPCM consultant.

10) CONSTRUCTION SUPERVISION & QUALITY ASSURANCE EPCM CONSULTANT will be responsible for construction planning, procedures, construction schedule, quality assurance, inspection, effective monitoring of all construction areas of the Construction management services which shall include but not limited to the following:

A) Construction Planning & Procedures:

i. Finalize coordination procedures between HPCL, EPCM

CONSULTANT and contractors from time to time.

ii. Establish detailed construction plans and schedules with major contractors to match the overall Project schedule.

iii. Identify construction/field organization of major contractors / EPCM

CONSULTANT /HPCL. iv. Finalize construction codes, standards and specifications to be followed.

The deployment of EPCM’s personnel for the project in critical areas of

engineering, construction, planning, inspection shall be subject to review and clearance by HPCL.

B) Cost Control:

Issue monthly cost reports, cost trends and change order analysis reports.


C) Construction Schedule & Monitoring:

i. Review construction schedule of the major contractors and other

contractor’s work at site

ii. Review site mobilization plan of major contractors /Sub- contractor(s) and pursue for required mobilization for all manpower/resources/equipment etc.

iii. Monitoring major contractors work schedule, progress against

program and preparation of monthly progress/exception reports highlighting percentage completion of work, areas of concern with respect to schedule/inputs to be deployed and recommend proactive corrective actions and remedial measures to remove back log in progress. Distribution of reports/construction documents to all concerned.

iv. Review the construction work/progress regularly to ensure that the

major contractors allocation of numbers and type of manpower is adequate, and to ensure that construction equipment, cranes, tools, scaffolding, lighting, etc. for the execution of the work are adequate and in safe working condition.

v. All material handling equipment should be subjected to required load

test, initially and then periodically, to ensure safe/stable operation:; EPCM CONSULTANT to witness and maintain record of all such tests.

vi. Review and comment on the drawings and technical specifications

produced at site by the major contractors to ensure compliance with the Project specification.

vii. Verify the actual work completed by the major contractors and

recommend to HPCL for release of each progress payment according to the contract.

D) Construction Management & Quality Assurance:

i. EPCM CONSULTANT to recommend the facilities required by HPCL

for construction management.

ii. Review of construction and quality assurance plans of major contractors and other contractors, and confirm their compliance to approved codes/standards/ specifications, etc. under the contract.


iii. Supervision, inspection and certification of all tests (destructive/non-destructive) at site, analyze and certify results.

iv. Monitor compliance of various statutory rules, regulations and safety

measures and also arrange and coordinate site inspection, testing, etc, as required under local statutory rules and regulations prevalent in India;

v. Ensure that the major contractors /other contractors take all necessary

precautions to protect construction work and material from damage by climate elements and construction activities.

vi. Alert HPCL and major contractors /other contractors immediately of

any use of materials not in accordance with the drawings, Project specification and take corrective action thereof.

vii. Certification of quality and work performed by major contractors at

site as per approved quality assurance plans.

viii. Review and audit approved welding procedures and welders qualification procedures.

ix. Supervise and ensure that all additional works of modifications that

have been approved by HPCL are performed according to approved change orders.

x. Ensure that machines, equipment, vessels, piping, Instruments,

structures and other materials are properly erected, installed and maintained according to the approved specifications/suppliers recommendations.

xi. Review, recommend and monitor safety and labor relations procedures

prepared by the contractors for compliance with applicable codes, regulations and HPCL requirements and advise concerning violations and injuries (including coordinating with local concerned authorities).

xii. Inspect and ensure quality of all of the major contractor’s site

activities which include recording, field purchasing etc. The following data and files will be collected and recorded:

* Engineering Data

* Major contractor’s daily manpower loading reports * Welder's qualification certificates


* Material/Equipment transportation, deliveries and receiving reports.

* Data for as-built drawings.

xiii. Review and comment on major contractor’s Plan at least 2 (Two)

weeks before first off-loading) for the off-loading, hoisting and transport of materials from sea-going vessels including transport to work site.

xiv. EPCM CONSULTANT will cause major contractors to submit detailed scheme(s) for Heavy / Critical equipment movement/erection/lifts/rigging and review/approve them before contractor affects such critical/heavy lifts/movements.

xv. EPCM CONSULTANT will supervise and approve alignment

(hot/cold) of all rotary equipment/machinery by major contractors and also ensure their upkeep/maintenance as per suppliers' recommendations.

xvi. Cause the contractors to perform house-keeping activities which

include maintaining sanitary facilities, sweeping, clean-up, removal of excess materials/temporary/facilities, , as necessary.

xvii. Formulate a system to identify and correct the major contractors /other

contractors work that may be unsatisfactory in quality, and/or is not conforming to the contract.. Ensure that adequate records are maintained, so that of rectification is made easy, systematic and timely.

xviii. A quality assurance plan shall be included in the tenders for major

contractors identifying the guidelines for supervision, inspection and witnessing tests at site in order to ensure quality construction work. This shall further be detailed in the kick-off meeting with the selected major contractors to bring about specific check points with respect to above by contractor / EPCM CONSULTANT /HPCL.

xix. The quality control program prepared by the major contractors /other

contractors will be reviewed by EPCM CONSULTANT for compliance and to ensure that it covers the following areas:

* Site Preparation

* Welding/fabrication * Tie-ins * Clean-up, testing


* Instrumentation installation and construction * Incorporation of all witness tests and hold points of the

construction work. * Prepare overall Quality Assurance(QA) and Quality

Control (QC) System for the various Phase s of the Project (i.e., Engineering, Procurement, Construction and Commissioning)

* Keep regular surveillance and audit Quality Assurance

Programme of contractors and Vendors.

* Prepare QA/QC report for the project complex on a regular basis identifying areas for action by concerned agencies

E) Construction Inspection:

- EPCM CONSULTANT will ensure that the major contractors / other contractors make arrangements for the required field inspection and tests required by the standards/specifications under the contract and by local authorities/agencies and submit inspection procedures for review/approval of EPCM CONSULTANT /HPCL. EPCM CONSULTANT will ensure that these inspection procedures will at least including the following requirements:

i. A construction activity will not start until all prescribed quality pre-

conditions and prerequisites have been met.

ii. The contractors will not proceed beyond identified witness tests and hold points without EPCM's clearance. The EPCM CONSULTANT will plan their activities to prevent undue delays in inspection at these points. Construction schedules shall allow a reasonable time for inspection, as required.

iii. If it is observed that work is not conforming to specifications and

drawings, EPCM CONSULTANT will promptly bring this information to the attention of the contractor concerned and will ensure that remedial works are carried out.

iv. In those situations where continued work would cause damage,

preclude further inspection, or make remedial action ineffective, and where there is no authorized representative of the contractor immediately available at the work location, EPCM's inspector


responsible for that work will have the authority to stop the work in progress. He will immediately notify HPCL and the concerned contractor of such action.

EPCM CONSULTANT shall: - Witness all field inspections and tests that are necessary to

comply with the Project specification. - Witness, review analyzes and certify all proof of proper

construction provided by the contractors to ensure compliance with the Project specifications.

- Witness and certify the final inspections of equipment - Ensure that the independent third-party inspector carrying out

radiographic inspection and interpretation of radiographs of welds is well qualified and acceptable to HPCL.

- Ensure that the number of welds to be spot checked is a true

representation of the actual number of welds. - Ensure that the contractors maintain a proper and up-to-date

documentation system of the radiographs which can identify the location of the weld and the welder concerned.

- Ensure that all inspection reports and files with proper cross

identification with field materials are handed over to HPCL within 1 (one) months after completion of Mechanical Completion of any part of the project.

- Witness, monitor and ensure that all field inspection by the

contractors for mechanical equipment, civil materials and electrical equipment will adhere to the procedures laid down in the Project specification.

- Ensure that erected equipment conforms to the flow diagrams,

construction drawings, manufacturers and the project specification.

- Organize field engineering work, wherever necessary and

provide assistance to HPCL in timely resolving of Site problems. - Witness hydro-test, pneumatic and other field tests jointly with

contractors and confirm successful completion of the same.


- Visual inspection of materials received at site for identifying any damage during transit and to ensure inspection certificates have been received along with the equipment.

- Supervise all restoration work required as a part of the project.

Provide drawing, specification or any clarification required in this connection.

- Supervise initial pigging and intelligent pigging operation for the

off-shore and on-shore pipeline. - Establish the effectiveness of the cathodic protection system

implemented as part of the project.

- Supervise and Commission SCADA / Telemetry system for the facilities.

F) Material Control and Warehouse Management:

The material procured by EPCM CONSULTANT on behalf of HPCL has to be received and stored in the Warehouse. Temporary Ware House shall be constructed at the cost of HPCL and total material has to be managed and controlled by EPCM. Issue reconciliation statement on completion of the work to enable HPCL to take over the balance inventory/stores. EPCM CONSULTANT will do the following: i. Monitor equipment and materials receipt at site, site inspection, storage

and issue by HPCL / Major contractor/Sub- contractors.

ii. Conduct verification of material receipt status and inventory status at Site with relation to material delivery schedule.

iii. Review material control plan/procedure of contractors.

iv. Review surveys and claims by contractors on behalf of HPCL.

v. Supervise and audit adherence to QA/QC program and issue QA/QC

reports identifying actions for compliance by concerned agencies.

vi. Coordinate with construction agencies for expeditious settlement of claims, in consultation with HPCL.

vii. Overview various insurance policies of transit and storage-cum-erection

risks.


G. Mechanical Completion:

i. EPCM CONSULTANT will develop a Phase d mechanical completion program to facilitate sequential pre-commissioning activities in a logical manner.

ii. EPCM CONSULTANT will ensure that the major contractors submit the

System Compilation Manual which will contain a checklist of forms and procedures for systems testing to achieve Mechanical Completion. EPCM CONSULTANT will review this Systems Completion Manual and recommend to HPCL for approval.

iii. EPCM CONSULTANT will ensure that all parts of the Project have been

mechanically erected and that all systems testing has been carried out satisfactorily and according to the approved Systems Compilation Manual and startup schedule EPCM CONSULTANT will review the punch list of all uncompleted work and unrectified deviations to ensure that such work is performed before the certificate of mechanical completion can be issued. EPCM CONSULTANT will then recommend to HPCL to issue a Certification of Mechanical Completion for the relevant part of the project.

iv. Identify suitable pigging programme for cleaning and intelligent pigging

operation and supervise the operation to be performed by contractor.

11) HAZOP study

- EPCM CONSULTANT will carry out, detailed HAZOP analysis for the SPM System and connected Off-Shore pipeline and other connected facilities. EPCM CONSULTANT will ensure recommendations of HAZOP studies are incorporated in the respective packages so that Hazards and operability problems are eliminated /reduced.

- EPCM CONSULTANT will also conduct hazop analysis with respect to the layout of the pipeline system and SPM.

- Further Hazop studies if required due to any change in P&ID during implementation Phase shall also be done by EPCM.

- Implementation of all Hazop recommendation shall be done by major contractors / through separate contractors.

12) RISK ANALYSIS STUDY

- Risk analysis study for the entire project facilities including crude oil tanker

berthed at SPM, Crude Oil Storage Terminal, On-Shore and off-shore pipeline, may have to be conducted depending upon the requirement from


various Statutory Bodies. Since this requirement can be firmed up only during detailed engineering phase, the bidders are requested to quote separate lump sum price for this job and not to include in the lump sum price quoted for Phase-I and Phase-II of job.

- The EPCM CONSULTANT has to conduct a comprehensive Risk Analysis

Study including offsite and onsite emergency plan for the entire project facilities comprising of crude oil tanker berthed at SPM, and the pipe lines.

13) PROJECT MANAGEMENT

The EPCM CONSULTANT shall be responsible for total management of the project activities from preparation of BDEP to pre-commissioning / commissioning activities and performance test of the entire project facilities which includes the following:

A) Planning and Scheduling:

i. Prepare preliminary schedules for discussion and finalization of the same

with HPCL.

ii. Prepare an overall project schedule/network identifying critical path, priority activities and target dates for completion.

iii. Update the networks and project schedules regularly.

iv. Review, approve and monitor detailed schedules prepared by contractors

/ Suppliers.

v. Preparation of detailed discipline-wise schedules for setting out targets. vi. Traffic study of rail/road/water ways, for transportation during

construction. Phase to identify constraints in movement and suggestions for improvement.

B) Project Cost :

i. Project cost estimation/updating (the accuracy level of estimate should be within +/- 10%).

ii. Forecasting of fund requirement

iii. EPCM CONSULTANT will assist HPCL by providing data on Project

technical matters, costs, schedule, progress reports and other documentation that will be required from time to time by financial institutions and other agencies involved in raising finance for the project.


iv. EPCM CONSULTANT will prepare the MR cost estimate for the items to

be procured by HPCL.

v. The cost estimation / updation should be done as below:

• DFR Phase • Upon completion of award of the contract.

Detailed cost estimate break up for each procurement / package is required along with the recommendation for award of the package.

C) Project procedures:

i. Develop Project scope and procedure including those for procurement and

construction contracts and establish formal lines of communication with HPCL, Vendors and contractors.

ii. Ensure that all information, drawings, specifications and data received or

developed during the basic engineering Phase are finalized with HPCL as per agreed procedure.

iii. Develop Project strategy and schedules; establish monitoring system,

reporting system and Project information system. iv. Develop project information system for highlighting slippage and hold-ups

for management action and control.

v. Develop overall project execution philosophy vi. Prepare coordination procedure with HPCL, Vendors, contractors, other

Consultants, etc. vii. Establish procedures covering mechanical completion, pre-commissioning,

commissioning, start-up and performance test run of various units and their taking over from respective agencies.

viii. Maintain Project procedures current through regular review/updating/

amendment.

D) Coordination with various agencies:

i. Maintain constant interaction/surveillance with major contractors to ensure that commitments are met, schedules are maintained and the engineering work is performed as per the engineering design basis agreed for the project.


ii. Monitor the purchasing, expediting and inspection activities of

contractors and initiate such actions as may be required for timely delivery of purchased items to the project site.

iii. Maintain surveillance of the progress of construction of contractors by

visits to the job site for identifying and discussing field problems affecting the progress with the Resident Construction Manager, wherever required.

iv. Co-ordinate with contractors for initiate commissioning and start-up

activities of facility as well as performance test run of the same.

v. Ensure proper documentation/drawings from contractors/vendors and for its timely availability and completeness along with mechanical completion.

vi. Documents/Drawings Distribution System identifying review/ approval/

information types. vii. Ensure that all facilities has been installed/incorporated in the project and

to take necessary corrective action for incorporation of those left out facilities, if any, for completion of the project.

E) Review/approval/certifications:

i. Certification with respect to as-built drawings, supply of material,

construction activities, etc.

ii. Certification of invoices of contractors for payments. iii. Ensure review/approval of all designs/drawings/specifications, etc.

submitted by contractors within the time frame stipulated for the contracts.

iv. Ensure implementation of all stipulations/suggestions of statutory/advisory

bodies such as MOE & F, APPCB, CCE, TAC, CEA, OISD, DGCA, NHO, Directorate of Factories & Boilers, etc. and recommendations/suggestions in Risk Analysis/Environmental Impact Analysis/HAZOP Study Reports. Before commissioning each facility EPCM CONSULTANT will issue a compliance certificate indicating that the new facilities are meeting all the standards/norms of all the statutory/advisory bodies noted above.

v. Ensure review/approval of operation and maintenance manuals.


F) Project Review:

i. Hold regular project review meeting with all contractors and Client.

ii. Evaluation of progress of work with respect to schedule and submit monthly progress reports to HPCL.

iii. Provide PERT/network/`S’ Curves for Project monitoring.

iv. EPCM CONSULTANT shall provide necessary documents / reports / charts and

assistance for review of the progress of the project with various agencies like Ministry Monitoring Cell, Ministry of Project Implementation, etc. appointed by the Ministry from time to time.

G) Assistance:

i. Provide Techno-Commercial assistance for responding to queries of

Chief Technical Examiner/Central Vigilance Commission of Government of India and resolve the dispute between HPCL and contractors.

ii. Assist HPCL to obtain various clearances for the project from Local

Bodies/Authorities, Statutory Authorities, and other Agencies as required for Project implementation

iii. All available data on the Project will be furnished by HPCL. EPCM

CONSULTANT will identify any additional data as required and initiate action for obtaining the same with HPCL's approval. Such action will include preparation of tender documents, recommendation of contractor/Consultants/Vendors and supervision of the job.

iv. Utilization of present surplus stock with HPCL to the extent possible.

v. EPCM CONSULTANT to ensure surplus generation to 0.5% of MTO

quantity and will render assistance to dispose off the surplus material during the tenure of the contract.

H) Organisation and Training:

i. EPCM CONSULTANT will evaluate and identify management

requirement, the plant operation organization structure, and training programme for HPCL staff.

ii. EPCM CONSULTANT will study the facilities required by HPCL for

effective supervision of construction and operation of SPM facilities and recommend to HPCL for procurement of those facilities. The procurement


action for such facilities will be undertaken by the EPCM CONSULTANT upon approval by HPCL.

14) COMMISSIONING ASSISTANCE

A) Pre-Commissioning:

- EPCM CONSULTANT to prepare / ensure that operating manuals are

prepared by major contractors and the same will be reviewed by EPCM CONSULTANT and comments incorporated.

- Ensure that all the pre-commissioning/commissioning activities of the

Project are carried out by major contractors / contractors in accordance with established procedure, schedules and program, as detailed below:

i. Equipment operation to make checks of vibration and safety device,

and other required operating tests and adjustments. ii. Adjustments and replacements of accessories as required.

iii. Flushing, blowing and cleaning. iv. Installation of temporary screens, strainers and blinds. v. Necessary purge operations including installation of temporary purge

piping or hoses to equipment connections. vi. Functional check on all instruments and controllers.

vii. Instrument calibrations with standard test equipment and all required adjustments and control point settings.

viii. Check all instrument loops for proper functioning. ix. Checks on pipe hangers, supports; and guides for hot/cold settings and

necessary adjustments. x. Checking and recording positions of all valves.

xi. EPCM CONSULTANT will ensure that all defects and deficiencies found during the course of Commissioning shall be rectified by respective contractor. EPCM CONSULTANT consultant will advise HPCL of the satisfactory completion of the Commissioning activities and recommend the issuance of the certificate for the relevant part of the project.

B) Services for Commissioning and start-up Management:

- During this Phase , EPCM CONSULTANT shall provide necessary

assistance to HPCL in planning and organizing pre-commissioning, commissioning, start-up and performance test run of the Project facilities. The EPCM CONSULTANT 's scope of work, will comprise of but not limited, to the following:

i) Set-up, review and implement start-up program.


ii) Preparation of detailed operating manuals for each system/unit based on in-house data, manuals/information, data from equipment vendors etc.

iii) Review of pre-commissioning, commissioning and standard procedures for start-up, normal operation, shutdown and handling of abnormal situation.

iv) Coordinating and supervising commissioning schedules, start-up schedule, etc. with contractors and others.

v) Preparing punch/check lists for verifying mechanical completion. vi) Conduct safety audit of the project facilities and prepare checklist

before pre-commissioning activities can be started. vii) Assist HPCL in pre-commissioning audit by Govt. audit. viii) EPCM CONSULTANT will ensure that the major contractors /

HPCL provides sufficient manpower, special tools and spare parts necessary for assisting commissioning activities such as:

� Operational tightness testing. � Pre-startup inspections by governmental bodies, as necessary � Declare Ready for Commissioning jointly with HPCL.

C) Testing and Commissioning:

- The following work will be performed by EPCM CONSULTANT until the Project is ready for commercial operation:

i. Supervision/.monitoring of check-up and calibration of the various instruments to be used for commissioning and testing.

ii. Supervision of all activities for commissioning and testing of various sub-systems and of the whole system, all in accordance with the startup schedule.

iii. Development of criteria for initial and Final Acceptance iv. Analysis and evaluation of the test results obtained during testing and

commissioning in order to determine actual performance of equipment as against contract requirements and guarantees.

v. Preparation of a check list of all defects, deficiencies, shortages etc and development of a program for their correction and completion.

vi. EPCM CONSULTANT to prepare performance test procedures and specify, among other things, the following:

* Operating data to be recorded in a log sheet * Analytical methods * Methods of calculations


* Interpretation and measurement of tests * Manner of taking operating data and its frequency * The manner of evaluating the performance including appropriate

corrections, if any, for test conditions such as feed stock quality etc. * Ensure that performance test of the facilities are performed in

accordance with professional engineering standards, plant safety and operating standards.

* On completion of performance test runs, prepare an independent

report for HPCL on performance of the system with recommendations (in consultation with major contractors and HPCL) on ways and means of improving performance, if necessary.

* EPCM will evolve acceptable formats for handing over of SPM

and pipeline system to HPCL including all required documentation, completion certificates etc and shall recommend to HPCL regarding taking over of facilities.

D) Spare Parts:

The following will be performed by EPCM: - Checking of spare parts and other supplies to be made available by the

contractor(s) to ensure compliance with the construction contract requirements and supervision of their handing over to HPCL.

- Recommendations of spare parts inventory and future ordering

schedule for safe conditions/trouble free operation.

15) PERFORMANCE GUARANTEE RUN

a) EPCM CONSULTANT will ensure that performance run of the project facilities are carried out by major contractors / EPCM CONSULTANT and EPCM CONSULTANT will assist HPCL in conducting the performance run by way of analysis and interpretation of data gathered during performance run.

b) EPCM CONSULTANT will provide necessary instructions for carrying out

the performance run.

16) DOCUMENTATION

As-built drawings/documents/reports are to be prepared in English and submitted to HPCL in the following formats:


- Six sets of hard copies - One soft copy on Compact Disk (CD). These shall be in latest versions

of Microsoft Office and AUTOCAD software. 17) HEALTH, SAFETY AND ENVIRONMENTAL GUIDELINES:

- Consultant shall establish, operate and maintain for the HSE programme for term of the contract

- Consultant shall be responsible for the HSE programme, implementation by contractors.


SECTION D

COMPLETION SCHEDULE

Phase –I: All the activities under phase –I shall be completed within 3 months from the date of award of the EPCM CONSULTANT contract/ date of Letter of Intent (LOI).

Phase –II: All the project activities under Phase –II shall be completed and commissioned

within 24 months of approval of the project. HPCL shall notify/intimate the clearance to commence Phase-II works. However EPCM CONSULTANT services shall be continued for 6 months for closing out bills etc. after completion of jobs.

The anticipated time period for approval of m Phase- I to Phase –II is 1 ½ months.


SECTION E

PAYMENT TERMS

Phase –I

- 10 % on kick off Meeting against Bank Guarantee

- 10% on finalization of design basis for all facilities

- 25% on floating of all tenders

- 25% on recommendation of major tenders progressively ( weightage of each will be

mutually agreed in KOM)

- 20 % after receipt of economic analysis

- 10% upon submission of DFR

Phase-II

- Progressively based on the monthly progress of the project, to be mutually agreed during

execution.


SECTION F

BID QUALIFICATION CRITERIA

1.0 Bidder should be a project management and engineering consultant and should have: a) Proven track record of having successfully completed EPCM works for the

following jobs broadly involving basic engineering, design, detailed engineering preparation of tender document, evaluation of bids, finalization of contracts, review and approval of design, procurement, construction supervision, inspection and project management in the last ten years and the facility should have completed minimum one year of successful operation.

i. Offshore Hydrocarbon pipeline

ii. Single Point Mooring (SPM) system iii. Onshore Hydrocarbon pipeline

b) Bidder shall have mandatory experience either for Offshore pipeline or Single

point mooring system. The bidder shall submit an MOU with a back-up consultant, for the jobs out of a.i, a.ii and a.iii above for which the bidder is not having experience as above. The back-up consultant should have proven experience for the relevant job. The MOU shall be valid till defect liability period of the contract.

c) The Average Annual Turnover of the bidder for the last three preceding financial

years, i.e. 2004-05, 2005-06 and 2006-07 shall not be less than Rs. 10.00 crores (USD 2.5 million).

d) The net worth of the bidder in last financial year 2006-07 shall be positive.

Bidders with negative net worth will not be considered, barring PSUs approved by HPCL.

2.0 Bidder should submit sufficient and clear documentary evidence to substantiate the above

along with their offer. HPCL reserves the right to verify the correctness of documentary evidence furnished by the bidder. Bidder should also submit documentary evidence pertaining to MOU/Agreement with the back up consultants for the areas specified if intended to be engaged.

3.0 HPCL reserves the right to verify the successful operation and performance of qualifying

projects and bidder shall arrange permissions for visiting these installations. 4 Techno-commercial evaluation of only such bidders shall be done who qualify the criteria

stated above. Bidders who do not meet the criteria shall not be considered for further evaluation.


SECTION G

INSTRUCTIONS TO BIDDERS

AND OTHER GENERAL CONDITIONS

1 Definitions:

For the purpose of this ITB, the following words and expressions shall have the meanings assigned to them, except where the context otherwise requires:

1.1 “Owner” or “Company” means Hindustan Petroleum Corporation Limited (HPCL), a

company having registered office at 17, Jamshedji Tata Road, Mumbai – 400020.

1.2 "Contract" shall mean the contract formed by acceptance of the Bid

1.3 "Project(s)" shall mean SPM at Visakhapatnam.

1.4 "Bid" shall mean Bidder’s offer to perform the Scope of Work described in this ITB.

1.5 "Bidder" or "Consultant" shall mean the company or organisation who will bid for EPCM.

1.6 "Work" shall mean all necessary work and services to be performed by Consultant as described in this Invitation to Bid (ITB).

1.7 "Site" shall mean the site of the work at Visakhapatnam.

1.8 “Working Day” means all days except Sunday and National holidays in India.

2 The scope of work of Consultant shall be as described elsewhere, all as more fully provided and described in the detailed Scope of Work set forth in this ITB as well as provision of all services and works, which although not specifically mentioned in the ITB, but may be required for compliance with the applicable laws and/or for safe, reliable, trouble-free, smooth and efficient operation of the refinery, subject only to the exclusions specifically mentioned in the ITB.

3 The selection of bidder for the EPCM CONSULTANT is intended to be decided through a two part

bid evaluation viz. Part A – Pre-qualification and Technical & Un priced Commercial bid and Part B - Priced bid.

On the date of the Bid submission, Part – A of the bid will be opened by the Owner at the appointed time in presence of attending authorised representatives of bidders, after ascertaining receipt of proper instrument for tender cost and EMD. .

Part B of the Bids shall be opened by the Owner on the pre-appointed date in that regard after evaluation and notification to successful bidders under Part A. Such Price bids shall be evaluated as per the specified criteria.

The successful Bidder shall be notified of the award of the contract for the Work by issuing Letter of Intent (LOI). LOI shall be followed by finalisation and execution of the contract agreements between Consultant and Owner.

4 In their own interest, the Bidders are advised to familiarise themselves with the relevant legislations,

rules, guidelines, and the general legal framework of India as of the States with their latest


Amendments, as applicable. The Owner shall not be responsible for entertaining any claim for financial or any other adjustment to the contract(s) on account of lack of clarity of such factors.

5 It will be imperative on each Bidder to acquaint himself of all local conditions and factors, including

but not limited to physical condition/location of the land comprising the Site (including all services, pipelines, cables and the like), the means of communication with and access to and through the Site and the climate and other environmental conditions, which may have any effect on the execution of work covered under the Bid Documents. Accordingly, the Bidder may, at his own cost, visit, inspect and examine the site(s) of works and its surroundings and obtain for himself, on his own responsibility, all information that may be necessary for preparing his Bid.

6 It is made clear that the Owner does not represent or warrant anything whatsoever in relation to the

site, its surroundings, including the qualitative nature thereof. It shall be the sole risk and responsibility of the Bidder to carry out such survey and rely upon its own findings. The Owner shall not entertain any claims in this regard and shall not be held responsible for any loss or damage to the Bidder on account thereof.

7 The Bidder and any of his personnel or authorized representatives will be granted permission by the

Owner upon reasonable notice, to enter into the Owner’s premises and lands for the purpose of above mentioned visits, examination or such inspection. The Bidder, his personnel and authorized representatives shall have no right to stay in the premises beyond such time as may be allowed by the Owner. In the event of the Bidder, his personnel or authorized representatives suffering any loss or damage or personal injury (whether fatal or otherwise) at the site of the Owner, the Owner shall not be held responsible for the same and the Bidder, his personnel and/or authorized representatives will release and indemnify the Owner and his personnel from and against all liability in respect thereof.

8 The Bidder, his personnel or authorized representatives shall be responsible and liable for personal

injury (whether fatal or otherwise), loss of or damage to property and any other loss, damage, cost and expenses incurred (including any third party liability) to the Owner, his agents, personnel or authorised representatives as a result of any act or omission of the Bidder, his personnel or authorized representatives arising out of such entry into the site, or any activity carried out there at.

9 Receipt of ITB

9.1 Bidder shall acknowledge receipt of the ITB documents by signing and returning the Form of

Acknowledgment as per format given in attachment herewith, within ten (10) working days of receipt, and stating whether or not bidder intends to submit a bid.

9.2 Bidder's return of its signed Acknowledgment indicating its intention to submit a Bid shall be

deemed to constitute Bidder's agreement to be bound by the confidentiality provisions spelt out in this ITB.

9.3 The selected Consultant will be required to enter into the Contract to perform the Work with

OWNER within 20 working days after issuance of Letter of Intent (LOI) to the selected Consultant by OWNER pursuant to the bid evaluation process.

10 Review of Bid Documents 10.1 Bidder is responsible for identifying and checking against the contents list and the drawing and

specification index, that it has received all the ITB documents. Any omissions from this ITB should immediately be made known to the person as mentioned in the ITB.


10.2 Should Bidder find discrepancies, or if the intent or meaning of any of the ITB documents appears unclear or ambiguous, Bidder should refer the matter to the person named in the Instructions to Bidders for clarification.

11 Bid Clarifications and Addenda All questions and requests for interpretations or clarifications related to the ITB documents shall be addressed in writing to:

Purchase department Central Engineering, 6th Floor, Petroleum House, Hindustan Petroleum Corporation Limited, 17, Jamshedji Tata Road, Mumbai – 400 020, India Attention : Shri K. M. Govindan , DGM-Purchase & Materials Tel No. 022 – 22028659 Fax No. 022 – 66466228, 22839934 e-mail: [email protected]

12 Pre-Bid meeting will be held with the bidders before the due date of submission of the bids to clarify any query from the bidder on ITB Document and related issues. Pre-Bid meeting along with site visit is scheduled on 8th January, 2008 at 1430 hrs at Visakhapatnam.

13 Questions received less than 7 (seven) working days prior to the Bid closing date will not be

answered. 14 A written reply will be made to all questions or requests for interpretation or clarification made by

Bidders. Any such inquiries and all replies thereto will be circulated to all Bidders (without identifying the source of inquiry).

15 The Owner may, for any reason whatsoever, whether at its own initiative or in response to a

clarification requested by prospective Bidders, modify the Bidding document by issuing an Addenda to the ITB. The Addenda shall be part of the Bidding Documents, and will be notified in writing to all prospective Bidders and shall be binding on them. The Bidders will be required to acknowledge receipt of any such Addenda to the Bidding Documents.

16 All addenda are to be considered as an integral part of the ITB documents. They will be sequentially

numbered and sent simultaneously and in identical form to each Bidder, who will acknowledge such addenda by signing and returning the form of acknowledgement that will accompany the addenda.

17 Bidder is required to take into account in its Bid of all addenda received during the Bid period and to

confirm in its Bid that all addenda acknowledged have been addressed to while preparing the bid. 18 Except for any written reply to a question or request for interpretation or clarification, or other written

statement which is expressly stated to be an addendum to the ITB documents, from the authorised person named in Clause 11, no written or oral communication, representation or explanation by Owner, its employees or agents, whether made before or after the issuance of this ITB, shall be binding on Owner or shall be taken to bind or fetter Owner under the Contract.

19 Conditions of Bid 19.1 The Bid and all supporting documentation shall be in English language only.


19.2 Incomplete Bids may not be considered and late Bids received after due date and time shall be summarily rejected.

19.3 Telephone/telefax or E-Mail bids will not be accepted. 19.4 Bidder is responsible for all of its expense, cost and risk incurred in the preparation of the Bid,

and in attending any Pre-Bid/Bid meeting and visiting the Site or any other location in connection therewith, prior to execution by both parties of the Contract. Owner shall, in no case, be responsible or liable for any such cost, whatsoever, regardless of the outcome of the bidding process or its abandonment by the Owner.

19.5 The ITB documents and addenda thereto, together with any other communications, are issued for

the purpose of requesting Bids only. They remain the property of Owner. The Bidder shall not disclose any information contained in the ITB documents or otherwise supplied with this ITB to any third party, except for the purpose of preparing its Bid, and shall require any such third party to treat such information as confidential. In the event that such confidentially is breached, without prejudice to any other rights of Owner, Owner may reject the Bid. Copyright in the ITB documents and addenda thereto are reserved. Bidding Documents are non-transferable.

19.6 Bidder shall complete the Forms of Bid and the Attachments thereto as set forth. Further

instructions are provided on each Attachment stating what is required. These requirements are a minimum and directional. All pages of bids shall be numbered and signed with seal at lower right hand corner by the authorised signatory. Necessary Power of Attorney in favour of the authorised signatory of the authorised company shall be furnished.

19.7 Agreement as per the Integrity pact vide Attachment-I and Attachment-II is mandatory to be

submitted along with the unpriced bid. 19.8 Owner will treat the information submitted with the Bid as confidential, but shall be entitled to

disclose such information to its shareholders and to third parties advising Owner and its shareholders in connection with the Bid and the Project. Owner will require such third parties to treat such information as confidential.

19.9 Owner reserves the right to discuss clarifications and exceptions with the Bidder or any part of the Bid before execution of the Contract. Owner may reject any Bid in whole or in part, or reject all Bids with or without notice or reasons, and if no Bid is accepted, abandon the Work or have the Work performed in such manner as the Owner may elect without assigning any reason. The owner will not be liable to the bidder, in such circumstances, either financially or otherwise.

19.10 The Bid shall constitute a firm offer on the part of the Bidder which shall remain binding upon the Bidder for the period stated in ITB, and which may be accepted by Owner at any time prior to expiration of that period.

19.11 Letter of Intent (LOI) by Owner of the successful Bidder shall in no way constitute an acceptance of such Bidder’s firm offer, nor shall Owner be considered to have accepted any Bid or otherwise be subject to any contractual relationship with any Bidder arising out of such Bid, unless and until execution of the Contract by both parties.

19.12 To assist in the examination, evaluation and comparison of bids, the Owner may, at its discretion, ask the Bidder for a clarification on its Bid. All responses to request for clarification shall be in writing, and no change in the Bid Price shall be permitted to the Bidder after submission of the Bids unless specifically sought by the Owner.

19.13 Owner shall be free to engage in discussions or negotiations with any or all Bidders concerning the terms of their respective Bids at all times prior to execution by both parties of the Contract.

19.14 Bidder shall study the bid documents in its entirety, satisfy himself regarding the scope of work, the conditions of contract including the terms of payment, etc. and familiarise himself with site conditions and nature of contract before bidding. Bidder shall confirm this aspect. Bidder shall not raise any claim at a later date on this account nor shall this be entertained.


19.15 All corrections and alterations in the Bid shall be signed in full by the authorised signatory with date and seal.

20 Tender cost : Rs. 5000/- by Indian bidders and USD 125 by foreign bidders. The tender shall be downloaded from HPCL website and the tender cost shall be payable at the time of submission of tender, by demand draft in favour of Hindustan Petroleum Corporation Limited. This is a mandatory requirement.

21 Earnest Money Deposit : Rs. Forty thousand (40,000/-) only by way of demand draft payable to

Hindustan Petroleum Corporation Limited payable at Mumbai, on a scheduled bank other than co-operative bank. EMD from a co-operative bank shall render the tender as rejected. Bidder shall submit EMD in a separate envelope while submitting the tender. In case of non-submission of EMD , the tender shall be rejected. After acceptance of valid EMD only, UNRPICED BID shall be considered.

22 Submission of Bid: The bid along with tender cost and EMD shall be submitted in two parts Viz.

Part A & Part B 22.1 Part A: - Technical and Unpriced Commercial bid along with tender cost, EMD and Pre-qualification

details

The Technical and Unpriced Commercial Bid with pre-qualification details duly signed by the bidder shall contain the Attachments duly filled up and shall be submitted as one original and two copies, clearly marked as follows:

“TECHNICAL & UNPRICED COMMERCIAL ORIGINAL” “TECHNICAL & UNPRICED COMMERCIAL COPY 1” “TECHNICAL & UNPRICED COMMERCIAL COPY 2”

Also the Technical and Unpriced Commercial Bid shall contain ITB duly signed with seal on each page as token of acceptance.

22.2 Part B: - Priced bid

The Priced Bid duly signed by the bidder shall contain only a priced bid. The Priced Bid shall be submitted as one original clearly marked as follows:

“PRICE BID ORIGINAL”

This part (i.e. Price Bid) shall contain only prices duly filled in and any other information / document which has been specifically asked for to be furnished along with the Price Bid. Any condition given or any additional information / document attached in the Price Bid (which has not been given in the unpriced commercial offer) shall not be considered and may render the offer liable for rejection.

22.3 Bids under two parts (Part A & Part B) shall be submitted in a two separate sealed cover

respectively and shall be clearly marked on the outside as follows: PART A: TECHNICAL AND UNPRICED COMMERCIAL BID The above mentioned sealed Cover shall contain the following envelopes:

• “TECHNICAL & UNPRICED COMMERCIAL ORIGINAL”

• “TECHNICAL & UNPRICED COMMERCIAL COPIES”


PART B: PRICED BID The above mentioned sealed Cover shall only contain the following envelopes:

• “ PRICE BID ORIGINAL” Both Part A & Part B sealed covers shall be enclosed & submitted in a single sealed envelope.

22.4 Bids shall be submitted no later than the time and date stated elsewhere, failing which the bids

shall be summarily rejected. .

The Owner may, at its discretion, extend the deadline for the submission of bids by amending the Bidding documents, in which case all rights and obligations of the Owner and the Bidders previously subject to the deadline, will thereafter be subject to the deadline as extended.

22.5 Bids shall be delivered to the person named and to the address given above in the Instructions to

Bidders. 22.6 Failure to Submit Bid

Any Bidder who does not or is unable to submit a Bid in accordance with these Instructions to Bidders shall notify the person as mentioned above. Accordingly, the ITB documents shall be returned without delay and shall be clearly marked as “RETURNED ITB DOCUMENTS’

22.7 Bidder shall not, under any circumstances, apply to or enter into negotiations or into any

agreement with any governmental authority, agency or regional authority in connection with its Bid without Owner’s prior, written approval.

22.8 Bid Exceptions

Any deviations from or exceptions to the ITB data, specifications, terms, conditions and/or any other ITB documents must be listed clearly in an Attachment sheet to the Bid. Deviations or exceptions mentioned at any other place(s) shall be ignored by the owner.

Bidder’s standard Terms and Conditions shall not be considered. If Bidder submits its Terms and Conditions, it shall subject such Bid to rejection.

22.9 Retention Money: Retention money shall be applicable as described in the General Terms &

Conditions (GTC) attached in ITB. The Retainage can be converted into Performance Bank Guarantee (PBG), at the option of Consultant, on commissioning of project facilities and issuance of Provisional Acceptance of EPCM’s work by the Owner. Bank Guarantees of any nationalized bank/scheduled bank (other than co-operative bank), are acceptable.

Release of Retainage: The Retainage shall be released to Consultant within 30 days of the date of successful completion of defect liability period of one year from the date of commissioning of project facilities and issuance of Provisional Acceptance of EPCM’s work by the Owner, if no defects in the performance of work, attributable to Consultant, are observed within the period.

22.10 Security Deposit: Security deposit has to be submitted by the successful bidder on placement of

the contract as per the value stated in the GTC attached in ITB.

23 Evaluation of Bids 23.1 Evaluation of Technical & Unpriced commercial bids ( Part-A)


The pre-qualification shall be done first and subsequent bid evaluation of only such qualified bidders shall be taken up. The Owner will examine the unpriced / technical Bids to determine whether they are complete, whether the documents have been properly signed, and whether the Bids are generally in order. The deviations/exceptions, both technical as well as commercial, specified by the Bidders will then be examined by the Owner. In case any of the deviations/exceptions is found unacceptable by the Owner, the Owner may request, by a written notice to the Bidder, withdrawal of the said deviation/exception. In case the Bidder refuses to withdraw the deviation/exception, the Owner reserves the absolute right to reject the bid. 23.2 Evaluation Priced bids (Part-B) After acceptance of bids on evaluation of Part-A, the Lumpsum bid Price quoted by the Bidders as prescribed in Price Schedule, shall be considered for evaluation. The evaluation and selection of the bidder for award of the contract shall be on Overall Lowest Evaluated Bid Price of Techno-Commercially qualified acceptable and substantially responsive bids. Purchase Preference or any other benefit for Indian Public Sector Enterprises or other sectors, shall be considered for evaluation purposes as per directives of Government of India from time to time.

24 No Bidder, their representative or agents shall contact the owner on any matter relating to this bid

from time to time of submission of bids, unless requested so in writing. Any effort by a Bidder to influence the Owner in the Owner’s decision in respect of Bid evaluation will result in the rejection of that Bidder’s offer.

25 OWNER'S OBLIGATIONS OWNER shall provide / arrange/ be responsible for the following activities / facilities / information / data / document free of cost at the time specified and at reasonable times where no time is specified:

25.1 OWNER shall furnish drawings /details of existing location to the extent necessary and available

with Owner, showing underground and above ground details within battery limits, bench mark details, geographical & seismic data, characteristics of utility water & power, contour map, soil investigation report detailing soil characteristics as required.

25.2 OWNER shall furnish necessary technical data sheets, operating conditions and layouts pertaining

to existing units to finalize the ENGINEERING DESIGN BASIS.

25.3 OWNER shall review / approve the technical recommendations of all the tenders given by the Consultant.

25.4 OWNER shall ensure comments / approval of documents generated by Consultant within 15

working days and shall finalize all design related issues through across the table discussions. Any further changes to design basis once approved by the OWNER shall be carried out only after mutually agreeing to implications of the change on projects.

25.5 OWNER will do all the order placement jobs, basis the Purchase recommendations issued by

consultant. 25.6 OWNER shall furnish details regarding pressure, temperature and flow of various utilities and off-

site facilities at the Battery Limits.


25.7 OWNER shall obtain necessary licenses, approvals, permits, etc from statutory bodies like CCOE,

IBR, Factory Inspector etc. required in connection with the construction erection and operation of the Plant. However, the CONSULTANT shall render all assistance including development of documents / drawings for the statutory approvals. CONSULTANT will also provide all support to OWNER for various liaison jobs in this respect and will ensure that the necessary liaison has been included in contractor’s scope.

25.8 OWNER will provide land free from any encumbrance required for the PROJECT. 25.9 OWNER shall provide the following facilities to Consultant and to Consultant personnel deputed /

visiting site, at no cost to Consultant: 25.10 Office space at Yarada Park, if available

25.11 Medical / first aid facilities to the extent available inside refinery premises, if required.

25.12 OWNER shall provide the GCC (General Condition of Contract) to be incorporated in all the

tenders. No changes will be made in GCC. Any modified clauses shall be put in SCC (Special Condition of Contract) in consultation with OWNER. Among similar clauses in SCC and GCC, clause in SCC will supersede clause in GCC.

25.13 All standard and specifications of OWNER to be incorporated in the engineering and installation

document / work as well as OWNER's guidelines and practices to be followed shall be made available to Consultant as and when required.

25.14 Safety regulations and work conditions shall be as applicable. Safety coordination and issue of hot

/ cold work permits etc. for execution of work as required. OWNER shall handover the systems and work locations in safe working conditions to perform the hot work etc. Required safety measures and area barricading details shall be finalized by OWNER and shall be executed by the execution contractors.

25.15 OWNER shall nominate one person to co-ordinate issue of work permits on behalf of OWNER. 25.16 OWNER will provide adequate insurance coverage, taking insurance policies, raising & settlement

on insurance claims for inland transportation, erection and commissioning risk for all the machinery, assets etc. In this regard consultant will provide all back up details & assistance.

25.17 OWNER Provide all operating, maintenance, and supervisory personnel and raw materials,

chemicals, catalysts, utilities, consumables, operating supplies, maintenance materials, etc. required for the performance test runs. Consultant shall only provide key commissioning staff for assistance during commissioning.

25.18 OWNER will process of contractor’s bills and making payment to them after certification of

contractor’s bill’s by Consultant. If desired by Owner, consultant will depute his personnel to explain the details of certification of payment.

25.19 OWNER shall bear all expenses in connection with advertisement for the purchases of ITB.

Consultant shall remit to OWNER, the tender fee received against the sale of tender document.

25.20 The following are excluded from bidder scope of services:

25.20.1 Any foreign travel including inspection / expediting of imported equipment / materials etc.


25.20.2 Processing contractor's bills and making payments to them. Consultant shall only certify the measurement of works for billing purpose as per standard procedure and forward the certified bill to owner for payment.

Clarification

The Bidder may note that the successful Bidder and its affiliates shall not be permitted to bid for the subsequent LSTK/EPCC/site work/contracts for the project. The Owner reserves the right to accept or reject a bid without assigning any reason thereof.

26 Joint venture/ consortium/affiliates bidding is permitted; subject to the following: i. Parties who are affiliates of one another can decide which Affiliate will make a bid. Only

one affiliate may submit a bid. Two or more affiliates are not permitted to make separate bids directly or indirectly. If 2 or more affiliates submit a bid, then any one or all of them are liable for disqualification. However upto 3 affiliates may make a joint bid as a consortium, and in which case the conditions applicable to a consortium shall apply to them.

“Affiliate” of a Party shall mean any company or legal entity which:

(a) controls either directly or indirectly a Party, or (b) which is controlled directly or indirectly by a Party; or

(c) is directly or indirectly controlled by a company, legal entity or partnership

which directly or indirectly controls a Party. “Control” means actual control or ownership of at least a 50% voting or other controlling interest that gives the power to direct, or cause the direction of, the management and material business decisions of the controlled entity.

ii. Bids may be submitted by:

(a) a single person / entity (called sole bidder); (b) a newly formed incorporated joint venture (JV) which has not completed 3

financial years from the date of commencement of business;

(c) a consortium (including an unincorporated JV) having a maximum of 3 (three) members;

(d) an Indian arm of a foreign company.

iii. Fulfillment of Eligibility criteria and certain additional conditions in respect of each of the above 4 types of bidders is stated below, respectively:

(e) The sole bidder (including an incorporated JV which has completed 3 financial

years after date of commencement of business) shall fulfill each eligibility criteria.


(f) In case the bidder is a newly formed and incorporated joint venture and which has not completed three financial years from the date of commencement of business, then either the said JV shall fulfill each eligibility criteria or any one constituent member / promoter of such a JV shall fulfill each eligibility criteria. If the bid is received with the proposal that one constituent member / promoter fulfills each eligibility criteria, then this member / promoter shall be clearly identified and he / it shall assume all obligations under the contract and provide such comfort letter / guarantees as may be required by Owner. The guarantees shall cover inter alia the commitment of the member / promoter to complete the entire work in all respect and in a timely fashion, being bound by all the obligations under the contract, an undertaking to provide all necessary technical and financial support to the JV to ensure completion of the contract when awarded, an undertaking not to withdraw from the JV till completion of the work, etc.

(g) In case the bidder(s) is / are a consortium (including an unincorporated JV),

then the following conditions shall apply: i. Each member in a consortium may only be a legal entity and not an

individual person; ii. The Bid shall specifically identify and describe each member of the

consortium; iii. The consortium member descriptions shall indicate what type of legal

entity the member is and its jurisdiction of incorporation (or of establishment as a legal entity other than as a corporation) and provide evidence by a copy of the articles of incorporation (or equivalent documents);

iv. One participant member of the consortium shall be identified as the “Prime member” and contracting entity for the consortium;

v. This prime member shall be solely responsible for all aspects of the Bid / Proposal including the execution of all tasks and performances of all consortium obligations;

vi. The prime member shall fulfill each eligibility criteria; vii. A commitment shall be given from each of the consortium members in the

form of a letter signed by a duly authorized officer clearly identifying the role of the member in the Bid and the member’s commitment to perform all relevant tasks and obligations in support of the Prime / lead member of the Consortium and a commitment not to withdraw from the consortium;

viii. No change shall be permitted in the number, nature or share holding pattern of the Consortium member after pre-qualification, without the prior written permission of the Owner.

ix. No change in project plans, time tables or pricing will be permitted as a consequence of any withdrawal or failure to perform by a consortium member;

x. No consortium member shall hold less than 25% stake in the consortium; xi. Entities which are affiliates of one another are allowed to bid either as a

sole bidder or as a consortium only;


xii. Any person or entity can bid either singly or as a member of only one consortium.

(h) In case the bidder is an Indian arm (subsidiary, authorized agent, branch office

or affiliate) of a foreign bidder, then the foreign bidder shall have to fulfill each eligibility criteria. If such foreign company desires that the contract be entered into with the Indian arm, then a proper back to back continuing (parent company) guarantee shall be provided by the foreign company clearly stating that in case of any failure of any supply or performance of the equipment, machinery, material or plant or completion of the work in all respects and as per the warranties / guarantees that may have been given, then the foreign company shall assume all obligations under the contract. Towards the purpose, it shall provide such comfort letter / guarantees as may be required by Owner. The guarantees shall cover inter alia the commitment of the foreign company to complete the entire work in all respects and in a timely fashion, being bound by all the obligations under the contract, an undertaking to provide all necessary technical and financial support to the Indian arm or to render the same themselves so as to ensure completion of the contract when awarded, an undertaking not to withdraw from the contract till completion of the work, etc.

27 CHECKLIST FOR SUBMISSION OF OFFER :

Following information are required to be submitted along with the unpriced bid, without fail. Non submission of the information may liable the bid for rejection.

Bidders are requested to duly fill-in the following checklist by providing necessary information/documentary proof and submit along with bid; (please tick Yes/No as applicable):

� Consultant shall provide an Implementation schedule showing how they propose to complete & commission the project within the specified time period. The Schedule of Work shall be in the form of schedules covering all aspects of the Work in detail, from award of Contract through mechanical completion of the Project. Schedule in the form of PERT/CPM network with slacks for start/end of non-critical activities should also be provided.

Submitted

� PAN and Sales Tax registration certificate.

Submitted

� Details of design, engineering and office facilities available with the applicant. Submitted

� Applicant’s estimation of resources required in terms of manpower etc.

Yes/No

Yes/No

Yes/No


Submitted

� Quality Assurance Plan Submitted

� Project organization / Management chart at home office / head office / branch offices with Bio-data indicating qualifications and experience of key personnel of all involved disciplines. Submitted

� Site Organization chart proposed to be committed for execution of work giving Bio-data of key personnel and Engineer-in-charge, details of progressive built-up chart envisaged for skilled personnel at site. Submitted

� Power of Attorney / Authorization with the seal of the company in favour person(s) signing the tender. Submitted

� Copies of Audited Annual Report, Balance Sheets and Profit & Loss Account Statements for last three financial years (i.e. 2004-2005, 2005-2006 & 2006-2007), showing Annual Turnover and Financial Status of the Applicant, duly certified by a Chartered Accountant . Submitted

� Latest and valid Solvency Certificate from Bankers.

Submitted Certificate dated ________________ Name of Bank _______________________

� Certificate showing that applicant is not under liquidation, court receivership or

similar proceeding Submitted

� Information regarding any current litigation in which the Applicant is involved.

Submitted

� Certificate showing Net worth of applicant for last three financial years (i.e. 2004-2005, 2005-2006 & 2006-2007).

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No


Submitted

� A complete set of ITB document marked “ORIGINAL” is required to be signed and stamped on each page. Submitted

� Addenda (if any) to ITB is required to be signed and stamped on each page Submitted

� Acceptance/Deviation sheet in Consultants’ letter head Submitted

� Any other details relevant to the job Submitted

� Acceptance to HSE conditions (as applicable) Submitted

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No


SECTION-H

GENERAL TERMS & CONDITIONS OF WORKS CONTRACT

1 PRELIMINARY 1.1 This is a Contract for execution of __________________ work at

_______________________. (please fill up the blanks) 1.2 The tenderer for the abovementioned item of work is

____________________________. (please give the name and address of the tenderer)

1.3 The terms and conditions mentioned hereunder are the terms and conditions

of the Contract for the execution of the work mentioned under item 1.1 above.

1.4 It is the clear understanding between Hindustan Petroleum Corporation

Limited and the tenderer ______________________________________ that (name and address of the tenderer) in case the tender of ______________________________________________________________ is (name and address of the tenderer) accepted by Hindustan Petroleum Corporation Limited and an intimation to that effect is so issued and also a Purchase Order is placed with ________________________________________________________

(name and address of the tenderer) this document will be termed as a Contract between the parties and terms and conditions hereunder would govern the parties interest.

1.5 Interpretation of Contract Documents: All documents forming part of the

Contract are to be taken mutually explanatory. Should there be any discrepancy, inconsistency, error or omission in the contract, the decision of the Owner/Engineer-in-Charge/Site-in-Charge shall be the final and the contractor shall abide by the decision. The decision shall not be arbitrable. Works shown upon the drawings but not mentioned in the specification or described in the specifications without being shown on the drawings shall nevertheless be deemed to be included in the same manner as if they are shown in the drawings and described in the specifications.

1.6 Special conditions of Contract : The special conditions of contract, if any

provided and whenever and wherever referred to shall be read in conjunction with General Terms and Conditions of contract, specifications, drawings, and any other documents forming part of this contract wherever the context so requires. Notwithstanding the subdivision of the documents into separate sections, parts


volumes, every section, part or volume shall be deemed to be supplementary or complementary to each other and shall be read in whole. In case of any misunderstanding arising the same shall be referred to decision of the Owner/ Engineer-in-Charge/Site-in-Charge and their decision shall be final and binding and the decision shall not be arbitrable.

It is the clear understanding that wherever it is mentioned that the Contractor shall

do/perform a work and/or provide facilities for the performance of the work, the doing or the performance or the providing of the facilities is at the cost and expenses of the work not liable to be paid or reimbursed by the Owner.

2. DEFINITIONS In this contract unless otherwise specifically provided or defined and unless a contrary

intention appears from the contract the following words and expressions are used in the following meanings;

2.1 The term "Agreement" wherever appearing in this document shall be read as

"Contract". 2.2 The "Authority" for the purpose of this Contract shall be the Chairman and

Managing Director or any other person so appointed or authorised. 2.3 The "Chairman and Managing Director" shall mean the Chairman and Managing

Director of HINDUSTAN PETROLEUM CORPORATION LIMITED or any person so appointed, nominated or designated and holding the office of Chairman & Managing Director.

2.4 The "Change Order" means an order given in writing by the Engineer-in-Charge or by

Owner to effect additions to or deletion from or alterations into the Work. 2.5 The "Construction Equipment" means all appliances and equipment of whatsoever

nature for the use in or for the execution, completion, operation or maintenance of the work except those intended to form part of the Permanent Work.

2.6 The "Contract" between the Owner and the Contractor shall mean and include all

documents like enquiry, tender submitted by the contractor and the purchase order issued by the owner and other documents connected with the issue of the purchase order and orders, instruction, drawings, change orders, directions issued by the Owner/Engineer-in-Charge/Site-in-Charge for the execution, completion and commissioning of the works and the period of contract mentioned in the Contract including such periods of time extensions as may be granted by the owner at the request of the contractor and such period of time for which the work is continued by the contractor for purposes of completion of the work.


2.7 "The Contractor" means the person or the persons, firm or Company whose tender has been accepted by the Owner and includes the Contractor's legal heirs, representative, successor(s) and permitted assignees.

2.8 The "Drawings" shall include maps, plans and tracings or prints thereof with any

modifications approved in writing by the Engineer-in-Charge and such other drawings as may, from time to time, be furnished or approved in writing by the Engineer-in-Charge.

2.9 The "Engineer-in-Charge or Site-in-Charge" shall mean the person appointed or

designated as such by the Owner and shall include those who are expressly authorised by the owner to act for and on its behalf.

2.10 "The Owner" means the HINDUSTAN PETROLEUM CORPORATION

LIMITED incorporated in India having its Registered office at PETROLEUM HOUSE, 17, JAMSHEDJI TATA ROAD, BOMBAY - 400020 or their successors or assignees.

2.11 The "Permanent Work" means and includes works which form a part of the work to

be handed over to the Owner by the Contractor on completion of the contract. 2.12 The "Project Manager" shall mean the Project Manager of HINDUSTAN

PETROLEUM CORPORATION LIMITED, or any person so appointed, nominated or designated.

2.13 The "Site" means the land on which the work is to be executed or carried out and

such other place(s) for purpose of performing the Contract. 2.14 The "Specifications" shall mean the various technical and other specifications attached

and referred to in the tender documents. It shall also include the latest editions, including all addenda/corrigenda or relevant Indian Standard Specifications and Bureau Of Indian Standards.

2.15 The "Sub-Contractor" means any person or firm or Company (other than the

Contractor) to whom any part of the work has been entrusted by the Contractor with the prior written consent of the Owner/Engineer-in-Charge/Site-in- Charge and their legal heirs, representatives, successors and permitted assignees of such person, firm or Company.

2.16 The "Temporary Work" means and includes all such works which are a part of the

contract for execution of the permanent work but does not form part of the permanent work confirming to practices, procedures applicable rules and regulations relevant in that behalf.


2.17 The "Tender" means the document submitted by a person or authority for carrying out the work and the Tenderer means a person or authority who submits the tender offering to carry out the work as per the terms and conditions.

2.18 The "Work" shall mean the works to be executed in accordance with the Contract or

part thereof as the case may be and shall include extra, additional, altered or substituted works as maybe required for the purposes of completion of the work contemplated under the Contract.

3. SUBMISSION OF TENDER 3.1 Before submitting the Tender, the Tenderer shall at their own cost and expenses

visit the site, examine and satisfy as to the nature of the existing roads, means of communications, the character of the soil, state of land and of the excavations, the correct dimensions of the work facilities for procuring various construction and other material and their availability, and shall obtain information on all matters and conditions as they may feel necessary for the execution of the works as intended by the Owners and shall also satisfy of the availability of suitable water for construction of civil works and for drinking purpose and power required for fabrication work etc. Tenderer, whose tender may be accepted and with whom the Contract is entered into shall not be eligible and be able to make any claim on any of the said counts in what so ever manner for what so ever reasons at any point of time and such a claim shall not be raised as a dispute and shall not be arbitrable.

A pre-bid meeting shall be held as per the schedule mentioned in the tender.

3.2 The Tenderer shall be deemed to have satisfied fully before tendering as to the

correctness and sufficiency of his tender for the works and of the rates and prices quoted in the schedule of quantities which rates and prices shall except as otherwise provided cover all his obligations under the contract.

3.3 It must be clearly understood that the whole of the conditions and specifications are

intended to be strictly enforced and that no work will be considered as extra work and allowed and paid for unless they are clearly outside the scope, spirit, meaning of the Contract and intent of the Owner and have been so ordered in writing by Owner and/or Engineer-in-Charge/Site-in-Charge, whose decision shall be final and binding.

3.4 Before filling the Tender the Contractor will check and satisfy all drawings and

materials to be procured and the schedule of quantities by obtaining clarification from the Owner on all the items as may be desired by the Tenderer. No claim for any alleged loss or compensation will be entertained on this account, after submission of Tender by the Tenderer/Contractor and such a claim shall not be arbitrable.

3.5 Unless specifically provided for in the tender documents or any Special Conditions, no

escalation in the Tender rates or prices quoted will be permitted throughout the


period of contract or the period of actual completion of the job whichever is later on account of any variation in prices of materials or cost of labour or due to any other reasons. Claims on account of escalation shall not be arbitrable.

3.6 The quantities indicated in the Tender are approximate. The approved schedule of rates of

the contract will be applicable for variations upto plus or minus 25% of the contract value. No revision of schedule of rates will be permitted for such variations in the contract value, including variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above. Quantities etc. mentioned and accepted in the joint measurement sheets shall alone be final and binding on the parties.

3.7 Owner reserve their right to award the contract to any tenderer and their decision in

this regard shall be final. They also reserve their right to reject any or all tenders received. No disputes could be raised by any tenderer(s) whose tender has been rejected.

3.8 The Rates quoted by the Tenderer shall include Costs and expenses on all counts viz.

cost of materials, transportation of machine(s), tools, equipments, labour, power, Administration charges, price escalations, profits, etc. etc. except to the extent of the cost of material(s), if any, agreed to be supplied by Owner and mentioned specifically in that regard in condition of Contract, in which case, the cost of such material if taken for preparation of the Contractor's Bill(s) shall be deducted before making payment of the Bill(s) of the Contractor. The description given in the schedule of quantities shall unless otherwise stated be held to include waPhase on materials, carriage and cartage, carrying in and return of empties, hoisting, setting, fitting and fixing in position and all other expenses necessary in and for the full and complete execution and completion of works and in accordance with good practice and recognised principles in that regard.

3.9 Employees of the State and Central Govt. and employees of the Public Sector

Undertakings, including retired employees are covered under their respective service conditions/rules in regard to their submitting the tender. All such persons should ensure compliance to the respective/applicable conditions, rules etc. etc. Any person not complying with those rules etc. but submitting the tender in violation of such rules, after being so noticed shall be liable for the forfeiture of the Earnest Money Deposit made with the tender, termination of Contract and sufferance on account of forfeiture of Security Deposit and sufferance of damages arising as a result of termination of Contract.

3.10 In consideration for having a chance to be considered for entering into a contract with the

Owner, the Tenderer agrees that the Tender submitted by him shall remain valid for the period prescribed in the tender conditions, from the date of opening of the tender. The Tenderer shall not be entitled during the said validity period, to revoke or cancel the tender without the consent in writing from the Owner.


In case the tenderer revokes or cancels the tender or varies any of terms of the tender without the Consent of the Owner, in writing, the Tenderer forfeits the right to the refund of the Earnest Money paid along with the tender.

3.11 The prices quoted by the Tenderer shall be firm during the validity period of the bid and

Tenderer agrees to keep the bid alive and valid during the said period. The Tenderers shall particularly take note of this factor before submitting their tender(s).

3.12 The works shall be carried out strictly as per approved specifications. Deviations, if

any, shall have to be authorised by the Engineer-in-Charge/Site-in-Charge in writing prior to implementing deviations. The price benefit, if any, arising out of the accepted deviation shall be passed on to the Owner. The decision of Engineer-in-Charge shall be final in this matter.

3.13 The contractor shall make all arrangements at his own cost to transport the required

materials outside and inside the working places and leaving the premises in a neat and tidy condition after completion of the job to the satisfaction of Owner. All materials except those agreed to be supplied by the Owner shall be supplied by the contractor at his own cost and the rates quoted by the Contractor should be inclusive of all royalties, rents, taxes, duties, octroi, statutory levies, if any, etc. etc.

3.14 The Contractor shall not carry on any work other than the work under this Contract

within the Owners premises without prior permission in writing from the Engineer-in-Charge/Site-in-charge.

3.15 The Contractor shall be bound to follow and ensure compliance to all the safety and

security regulations and other statutory rules applicable to the area. In the event of any damage or loss or sufference caused due to non-observance of such rules and regulations, the contractor shall be solely responsible for the same and shall keep the Owner indemnified against all such losses and claims arising from the same.

3.16 At any time after acceptance of tender, the Owner reserves the right to add, amend

or delete any work item, the bill of quantities at a later date or reduce the scope of work in the overall interest of the work by prior discussion and intimation to the Contractor. The decision of Owner, with reasons recorded therefore, shall be final and binding on both the Owner and the Contractor. The Contractor shall not have right to claim compensation or damage etc. in that regard. The Owner reserves the right to split the work under this contract between two or more contractors without assigning any reasons.

3.17 Contractor shall not be entitled to sublet, sub contract or assign, the work under

this Contract without the prior consent of the Owner obtained in writing. 3.18 All signatures in tender document shall be dated as well as all the pages of all

sections of the tender documents shall be initialled at the lower position and signed, wherever required in the tender papers by the Tenderer or by a person holding Power


of Attorney authorising him to sign on behalf of the tenderer before submission of tender.

3.19 The tender should be quoted in English, both in figures as well as in words. The rates

and amounts tendered by the Tenderer in the Schedule of rates for each item and in such a way that insertion is not possible. The total tendered amount should also be indicated both in figures and words with the signature of tenderer.

If some discrepancies are found between the rates given in words and figures of the

amount shown in the tender, the following procedure shall be applied : (a)When there is a difference between the rates in figures and words, the rate

which corresponds to the amount worked out by the tenderer shall be taken as correct.

(b)When the rate quoted by the tenderer in figures and words tallies but the

amount is incorrect, the rate quoted by the tenderer shall be taken as correct. (c)When it is not possible to ascertain the correct rate in the manner prescribed

above the rate as quoted in words shall be adopted. 3.20 All corrections and alterations in the entries of tender paper will be signed in full

by the tenderer with date. No erasures or over writings are permissible. 3.21 Transfer of tender document by one intending tenderer to the another one is not

permissible. The tenderer on whose name the tender has been sent only can quote. 3.22 The Tender submitted by a tenderer if found to be incomplete in any or all

manner is liable to be rejected. The decision of the Owner in this regard is final and binding. In case of any error/discrepancy in the amount written in words and figures, the lower amount between the two shall prevail.

4. DEPOSITS a) EARNEST MONEY DEPOSIT (EMD) The tenderer will be required to pay a sum as specified elsewhere, as earnest

money deposit along with the tender either thru a crossed demand draft or a non-revocable Bank Guarantee in favour of Hindustan Petroleum Corporation Limited, from any Scheduled Bank (other than a Co-Operative Bank) payable at Mumbai in favour of Hindustan Petroleum Corporation Limited, Mumbai in the Performa enclosed. The earnest money deposit will be refunded after finalization of the contract.

Note: Public sector enterprises and small scale units registered with National

Small Scale Industries are exempted from payment of Earnest Money Deposit. Small scale units registered with National Small Scale Industries


should enclose a photocopy of their registration certificate with their quotation to make their quotation eligible for consideration. The Registration Certificate should remain valid during the period of the contract that may be entered into with such successful bidder. Such tenderers should ensure validity of the Registration Certificate for the purpose.

b) SECURITY DEPOSIT:

The tenderer, with whom the contract is decided to be entered into and intimation is so given will have to make a security deposit of one percent (1%) of the total contract value in the form of account payee crossed demand draft drawn in favour of the Owner, within 15 days from the date of intimation of acceptance of their tender, failing which the Owner reserves the right to cancel the Contract and forfeit the EMD.

1% of PO/Contract value as Security deposit will be acceptable in the form of

Demand draft upto Rs. 50,000/- and in the form of Demand draft / Bank guarantee beyond Rs. 50,000/-.

Composite PBG for 10% of PO value towards Security Deposit and Performance

bank guarantee shall be accepted; which shall be valid upto a period of 3 months beyond the expiry of Defect liability period.

Demand Draft should be drawn on Scheduled Banks, other than co-operative bank.

5. EXECUTION OF WORK All the works shall be executed in strict conformity with the provisions of the

contract documents and with such explanatory details, drawings, specifications and instructions as may be furnished from time to time to the Contractor by the Engineer-in-Charge/ Site-in-Charge, whether mentioned in the Contract or not. The Contractor shall be responsible for ensuring that works throughout are executed in the most proper and workman- like manner with the quality of material and workmanship in strict accordance with the specifications and to the entire satisfaction of the Engineer-in- Charge/Site-in-Charge.

The completion of work may entail working in monsoon also. The contractor must

maintain the necessary work force as may be required during monsoon and plan to execute the job in such a way the entire project is completed within the contracted time schedule. No extra charges shall be payable for such work during monsoon. It shall be the responsibility of the contractor to keep the construction work site free from water during and off the monsoon period at his own cost and expenses.


For working on Sundays/Holidays, the contractor shall obtain the necessary permission from Engineer Incharge/Site Incharge in advance. The contractor shall be permitted to work beyond the normal hours with prior approval of Engineer-In-Charge/Site-In-Charge and the contractors quoted rate is inclusive of all such extended hours of working and no extra amount shall be payable by the owner on this account.

5.a. SETTING OUT OF WORKS AND SITE INSTRUCTIONS 5.a.1. The Engineer-in-Charge/Site-in-Charge shall furnish the Contractor with only the four

corners of the work site and a level bench mark and the Contractor shall set out the works and shall provide an efficient staff for the purpose and shall be solely responsible for the accuracy of such setting out.

5.a.2. The Contractor shall provide, fix and be responsible for the maintenance of all

necessary stakes, templates, level marks, profiles and other similar things and shall take all necessary precautions to prevent their removal or disturbance and shall be responsible for consequences of such removal or disturbance should the same take place and for their efficient and timely reinstatement. The Contractor shall also be responsible for the maintenance of all existing survey marks, either existing or supplied and fixed by the Contractor. The work shall be set out to the satisfaction of the Engineer-in-Charge/Site-in-Charge. The approval thereof or joining in setting out the work shall not relieve the Contractor of his responsibility.

5.a.3. Before beginning the works, the Contractor shall, at his own cost, provide all

necessary reference and level posts, pegs, bamboos, flags ranging rods, strings and other materials for proper layout of the work in accordance with the scheme, for bearing marks acceptable to the Engineer-in-Charge/Site-in-Charge. The Centre longitudinal or face lines and cross lines shall be marked by means of small masonry pillars. Each pillar shall have distinct marks at the centre to enable theodolite to be set over it. No work shall be started until all these points are checked and approved by the Engineer-in-Charge/Site-in-Charge in writing. But such approval shall not relieve the contractor of any of his responsibilities. The Contractor shall also provide all labour, materials and other facilities, as necessary, for the proper checking of layout and inspection of the points during construction.

5.a.4. Pillars bearing geodetic marks located at the sites of units of works under construction

should be protected and fenced by the Contractor. 5.a.5. On completion of works, the contractor shall submit the geodetic documents

according to which the work was carried out. 5.a.6. The Engineer-in-Charge/Site-in-Charge shall communicate or confirm his instructions

to the contractor in respect of the executions of work in a "work site order book" maintained in the office having duplicate sheet and the authorised representative of


the contractor shall confirm receipt of such instructions by signing the relevant entries in the book.

5.a.7. All instructions issued by the Engineer-in-Charge/Site-in-Charge shall be in writing. The

Contractor shall be liable to carry out the instructions without fail. 5.a.8. If the Contractor after receipt of written instruction from the Engineer-in-Charge/

Site-in-Charge requiring compliance within seven days fails to comply with such drawings or 'instructions' or both as the Engineer-in-Charge/Site-in-Charge may issue, owner may employ and pay other persons to execute any such work whatsoever that may be necessary to give effect to such drawings or `instructions' and all cost and expenses incurred in connection therewith as certified by the Engineer-in-Charge/ Site-in-Charge shall be borne by the contractor or may be deducted from amounts due or that may become due to the contractor under the contract or may be recovered as a debt.

5.a.9. The Contractor shall be entirely and exclusively responsible for the horizontal and

vertical alignment, the levels and correctness of every part of the work and shall rectify effectually any errors or imperfections therein. Such rectifications shall be carried out by the Contractor, at his own cost.

5.a.10. In case any doubts arise in the mind of the Contractor in regard to any expressions,

interpretations, statements, calculations of quantities, supply of material rates, etc. etc., the contractor shall refer the same to the Site-in-Charge/ Engineer-in-Charge for his clarification, instructions, guidance or clearing of doubts. The decision of the Engineer-in-Charge/Site-in-Charge shall be final and the contractor shall be bound by such a decision.

5.a.11. "The Contractor shall take adequate precautions, to ensure that his operations do not

create nuisance or misuse of the work space that shall cause unnecessary disturbance or inconvenience to others at the work site".

5.a.12. "All fossils, coins articles of value of antiquity and structure or other remains of

geological or archaeological discovered on the site of works shall be declared to be the property of the Owner and Contractor shall take reasonable precautions to prevent his workmen or any other persons from removing or damaging any such articles or thing and shall immediately inform the Owner/ Engineer-in-Charge/Site-in-Charge."

5.a.13. "Contractor will be entirely and exclusively responsible to provide and maintain

at his expenses all lights, guards, fencing, etc. when and where even necessary or/as required by the Engineer-in-Charge/Site-in-Charge for the protection of works or safety and convenience to all the members employed at the site or general public."


5.b. COMMENCEMENT OF WORK The contractor shall after paying the requisite security deposit, commence work

within 15 days from the date of receipt of the intimation of intent from the Owner informing that the contract is being awarded. The date of intimation shall be the date/day for counting the starting day/date and the ending day/date will be accordingly calculated. Penalty, if any, for the delay in execution shall be calculated accordingly.

Contractor should prepare detailed fortnightly construction programme for

approval by the Engineer-in-Charge within one month of receipt of Letter Of Intent. The work shall be executed strictly as per such time schedule. The period of Contract includes the time required for testing, rectifications, if any, re-testing and completion of work in all respects to the entire satisfaction of the Engineer-in-Charge.

A Letter of Intent is an acceptance of offer by the Owner and it need not be accepted

by the contractor. But the contractor should acknowledge a receipt of the purchase order within 15 days of mailing of Purchase Order and any delay in acknowledging the receipt will be a breach of contract and compensation for the loss caused by such breach will be recovered by the Owner by forfeiting earnest money deposit/bid bond.

5.c. SUBLETTING OF WORK 5.c.1. No part of the contract nor any share or interest thereof shall in any manner or

degree be transferred, assigned or sublet, by the Contractor, directly or indirectly to any firm or corporation whatsoever, without the prior consent in writing of the Owner.

5.c.2. At the commencement of every month the Contractor shall furnish to the Engineer-in-

charge/Site-in-Charge list of all sub-contractors or other persons or firms engaged by the Contractor.

5.c.3 The contract agreement will specify major items of supply or services for which the

Contractor proposes to engage sub-Contractor/sub-Vendor. The contractor may from time to time propose any addition or deletion from any such list and will submit the proposals in this regard to the Engineer-in-charge/Designated officer-in-charge for approval well in advance so as not to impede the progress of work. Such approval of the Engineer-in-charge/Designated officer-in-charge will not relieve the contractor from any of his obligations, duties and responsibilities under the contract.

5.c.4. Notwithstanding any sub-letting with such approval as resaid and notwithstanding that

the Engineer-in-Charge shall have received copies of any sub-contract, the Contractor shall be and shall remain solely to be responsible for the quality and proper and expeditious execution of the works and the performance of all the conditions of the contract in all respects as if such subletting or sub-contracting had not taken place and as if such work had been done directly by the Contractor.


5.c.5 Prior approval in writing of the Owner shall be obtained before any change is made in

the constitution of the contractor/Contracting agency otherwise contract shall be deemed to have been allotted in contravention of clause entitled “sub-letting of works” and the same action may be taken and the same consequence shall ensue as provided in the clause of “subletting of works”.

5.d EXTENSION OF TIME 1)If the Contractor anticipates that he will not be able to complete the work within

the contractual delivery/ completion date (CDD), then the Contractor shall make a request for grant of time extension clearly specifying the reasons for which he seeks extension of time and demonstrating as to how these reasons were beyond the control of the contractor or attributable to the Owner. This request should be made well before the expiry of the Contractual Delivery/ Completion Date (CDD).

2)If such a request for extension is received with a Bank Guarantee for the full

Liquidated Damages amount calculated on the Total Contract Value, the concerned General Manager of the Owner shall grant a Provisional extension of time, pending a decision on the request.

3)The concerned General Manager of the Owner shall expeditiously decide upon

the request for time extension and in any case not later than 6 months from the CDD or date of receipt of the request, whichever is later.

4)Grant of any extension of time shall be by means of issuance of a Change Order. 5)In order to avoid any cash crunch to the Contractor, a Bank Guarantee could be

accepted against LD, as stated above. Once a decision is taken, the LD shall be recovered from any pending bills or by encashment of the BG. Any balance sum of Contractor or the BG (if LD is fully recovered from the bills) shall be promptly refunded/returned to the Contractor.

5.e. SUSPENSION OF WORKS 5.e.1. Subject to the provisions of this contract, the contractor shall if ordered in writing

by the Engineer- in-Charge/Site-in-Charge for reasons recorded suspend the works or any part thereof for such period and such time so ordered and shall not, after receiving such, proceed with the work therein ordered to suspended until he shall have received a written order to re-start. The Contractor shall be entitled to claim extension of time for that period of time the work was ordered to be suspended. Neither the Owner nor the Contractor shall be entitled to claim compensation or damages on account of such an extension of time.


5.e.2. In case of suspension of entire work, ordered in writing by Engineer-in-Charge/Site-in-Charge, for a period of 30 days, the Owner shall have the option to terminate the Contract as provided under the clause for termination. The Contractor shall not be at liberty to remove from the site of the works any plant or materials belonging to him and the Employer shall have lien upon all such plant and materials.

5.e.3. The contract shall, in case of suspension have the right to raise a dispute and have

the same arbitrated but however, shall not have the right to have the work stopped from further progress and completion either by the owner or through other contractor appointed by the owner.

5.f. OWNER MAY DO PART OF WORK Not withstanding anything contained elsewhere in this contract, the owner upon

failure of the Contractor to comply with any instructions given in accordance with the provisions of this contract, may instead of Contract and undertaking charge of entire work, place additional labor force, tools, equipment and materials on such parts of the work, as the Owner may decide or engage another Contractor to carryout the balance of work. In such cases, the Owner shall have the right to deduct from the amounts payable to the Contractor the difference in cost of such work and materials with ten percent overhead added to cover all departmental charges. Should the total amount thereof exceed the amount due to the contractor, the Contractor shall pay the difference to the Owner within 15 days of making demand for payment failing which the Contractor shall be liable to pay interest at 24% p.a. on such amounts till the date of payment.

5.g. INSPECTION OF WORKS 5.g.1. The Engineer-in-Charge/Site-in-Charge and Officers from Central or State Government

will have full power and authority to inspect the works at any time wherever in progress, either on the site or at the Contractor's premises/workshops of any person, firm or corporation where work in connection with the contract may be in hand or where the materials are being or are to be supplied, and the Contractor shall afford or procure for the Engineer-in-Charge/Site-in-Charge every facility and assistance to carryout such inspection. The Contractor shall, at all times during the usual working hours and at all other times at which reasonable notice of the intention of the Engineer-in-Charge/Site-in-Charge or his representative to visit the works shall have been given to the Contractor, either himself be present to receive orders and instructions, or have a responsible agent, duly accredited in writing, present for the purpose. Orders given to the Contractor's agent shall be considered to have the same force as if they had been given to the Contractor himself. The Contractor shall give not less than seven days notice in writing to the Engineer-in-Charge/Site-in-Charge before covering up or otherwise placing beyond reach of inspection and measurement any work in order that the same may be inspected and measured. In the event of breach of above, the same shall be uncovered at Contractor's expense for carrying out such measurement and/or inspection.


5.g.2. No material shall be removed and despatched by the Contractor from the site without the prior approval in writing of the Engineer-in-charge. The contractor is to provide at all times during the progress of the work and the maintenance period proper means of access with ladders, gangways, etc. and the necessary attendance to move and adapt as directed for inspection or measurements of the works by the Engineer-in-Charge/Site-in-Charge.

5.h. SAMPLES 5.h.1. The contractor shall furnish to the Engineer-in-charge/Site-in-Charge for approval

when requested or required adequate samples of all materials and finishes to be used in the work.

5.h.2. Samples shall be furnished by the Contractor sufficiently in advance and before

commencement of the work so as the Owner can carry out tests and examinations thereof and approve or reject the samples for use in the works. All material samples furnished and finally used/applied in actual work shall fully be of the same quality of the approved samples.

5.i. TESTS FOR QUALITY OF WORK 5.i.1. All workmanship shall be of the respective kinds described in the contract

documents and in accordance with the instructions of the Engineer-in-Charge / Site-in- Charge and shall be subjected from time to time to such tests at Contractor's cost as the Engineer-in-Charge/Site-in-Charge may direct at the place of manufacture or fabrication or on the site or at all or any such places. The Contractor shall provide assistance, instruments, labor and materials as are normally required for examining, measuring and testing any workmanship as may be selected and required by the Engineer-in-Charge/Site-in-Charge.

5.i.2. All the tests that will be necessary in connection with the execution of the work as

decided by the Engineer-in- charge/Site-in-Charge shall be carried out at the contractors cost and expenses.

5.i.3. If any tests are required to be carried out in connection with the work or materials

or workmanship to be supplied by the owner, such tests shall be carried out by the Contractor as per instructions of Engineer-in-Charge/Site-in-Charge and expenses for such tests, if any, incurred by the contractor shall be reimbursed by the Owner. The contractor should file his claim with the owner within 15 (fifteen) days of inspection/test and any claim made beyond that period shall lapse and be not payable.

5.j. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS, DESIGNS

AND WORKS 5.j.1. The Engineer-in-Charge/Site-in-Charge shall have powers to make any alterations,

additions and/or substitutions to the schedule of quantities, the original specifications, drawings, designs and instructions that may become necessary or advisable or


during the progress of the work and the Contractor shall be bound to carryout such altered/extra/new items of work in accordance with instructions which may be given to him in writing signed by the Engineer-in-Charge/Site- in-Charge. Such alterations, omissions, additions or substitutions shall not invalidate the contract. The altered, additional or substituted work which the Contractor may be directed to carryon in the manner as part of the work shall be carried out by the Contractor on the same conditions in all respects on which he has agreed to do the work. The time for completion of such altered added and/or substituted work may be extended for that part of the particular job. The rates for such additional altered or substituted work under this Clause shall, be worked out in accordance with the following provisions:

5.j.2. If the rates for the additional, altered or substituted work are specified in the contract

for similar class of work, the Contractor is bound to carryout the additional, altered or substituted work at the same rates as are specified in the contract.

5.j.3. If the rates for the additional, altered or substituted work are not specifically provided in

the contract for the work, the rates will be derived from the rates for similar class of work as are specified in the contract for the work. In the opinion of the Engineer-in- Charge/Site-in-Charge as to whether or not the rates can be reasonably so derived from the items in this contract, will be final and binding on the Contractor.

5.j.4. If the rates for the altered, additional or substituted work cannot be determined in the

manner specified above, then the Contractor shall, within seven days of the date of receipt of order to carry out the work, inform the Engineer-in-Charge/ Site-in-Charge of the rate at which he intends to charge for such class of work, supported by analysis of the rate or rates claimed and the Engineer-In-Charge/ Site-in-Charge shall determine the rates on the basis of the prevailing market rates for both material and labor plus 10% to cover overhead and profit of labor rates and pay the Contractor accordingly. The opinion of the Engineer-in- Charge/Site-in-Charge as to current market rates of materials and the quantum of labor involved per unit of measurement will be final and binding on the contractor.

5.j.5. The quantities indicated in the Tender are approximate. The approved schedule of rates

of the contract will be applicable for variations of upto +25% of the estimated contract value. No revision of schedule of rates will be permitted for such variations in the contract value, even for variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above.

5.j.6. In case of any item of work for which there is no specification supplied by the

Owner and is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same, the work should be carried out as per standard Engineering Practice subject to the approval of the Engineer-in-Charge/ Site-in-Charge.


5.k. PROVISIONAL ACCEPTANCE Acceptance of sections of the works for purposes of equipment erection, piping,

electrical work and similar usages by the Owner and payment for such work or parts of work shall not constitute a waiver of any portion of this contract and shall not be construed so as to prevent the Engineer from requiring replacement of defective work that may become apparent after the said acceptance and also shall not absolve the Contractor of the obligations under this contract. It is made clear that such an acceptance does not indicate or denote or establish to the fact of execution of that work or the Contract until the work is completed in full in accordance with the provisions of this Contract.

5.l. COMPLETION OF WORK AND COMPLETION CERTIFICATE As soon as the work is completed in all respects, the contractor shall give notice of

such completion to the site in charge or the Owner and within thirty days of receipt of such notice the site in charge shall inspect the work and shall furnish the contractor with a certificate of completion indicating:

a) defects, if any, to be rectified by the contractor b) items, if any, for which payment shall be made in reduced rates c) the date of completion.

5.m. USE OF MATERIALS AND RETURN OF SURPLUS MATERIALS 5.m.1. Notwithstanding anything contained to the contrary in any or all of the clauses of this

contract, where any materials for the execution of the contract are procured with the assistance of Government either by issue from Government stocks or purchase made under orders or permits or licenses issued by Government, the contractor shall use the said materials economically and solely for the purpose of the contract and shall not dispose them of without the permission of the Owner.

5.m.2. All surplus(serviceable) or unserviceable materials that may be left over after the

completion of the contract or at its termination for any reason whatsoever, the Contractor shall deliver the said product to the Owner without any demur. The price to be paid to the Contractor, if not already paid either in full or in part, however, shall not exceed the amount mentioned in the Schedule of Rates for such material and in cases where such rates are not so mentioned, shall not exceed the CPWD scheduled rates. In the event of breach of the aforesaid condition the contractor shall become liable for contravention of the terms of the Contract.

5.m.3. The surplus (serviceable) and unserviceable products shall be determined by joint

measurement. In case where joint measurement has failed to take place, the Owner may measure the same and determine the quantity.

5.m.4. It is made clear that the Owner shall not be liable to take stock and keep possession and

pay for the surplus and unserviceable stocks and the Owner may direct the


Contractor to take back such material brought by the Contractor and becoming surplus and which the Owner may decide to keep and not to pay for the same.

5.n. DEFECT LIABILITY PERIOD The contractor shall guarantee the work executed for a period of 12 months from the

date of completion of the job. Any damage or defect that may arise or lie undiscovered at the time of completion of the job shall be rectified or replaced by the contractor at his own cost. The decision of the Engineer In-charge/Site-Incharge/Owner shall be the final in deciding whether the defect has to be rectified or replaced.

Equipment or spare parts replaced under warranty/guarantees shall have further warranty

for a mutually agreed period from the date of acceptance. The owner shall intimate the defects noticed in writing by a Registered A.D. letter or

otherwise and the contractor within 15 days of receipt of the intimation shall start the rectification work and complete within the time specified by the owner failing which the owner will get the defects rectified by themselves or by any other contractor and the expenses incurred in getting the same done shall be paid by the Contractor under the provision of the Contract.

Thus, defect liability is applicable only in case of job/works contract (civil,

mechanical, electrical, maintenance etc. ) where any damage of defect may arise in future (i.e. within 12 months from the date of completion of job) or lie undiscovered at the time of completion of job.

In other words, in case of service contracts (like car hire etc.) where there is no

question of damage or defect arising in future, the defect liability clause is not applicable.

5.o. DAMAGE TO PROPERTY 5.o.1. Contractor shall be responsible for making good to the satisfaction of the Owner any

loss of and any damage to all structures and properties belonging to the Owner or being executed or procured by the Owner or of other agencies within the premises of the work of the Owner, if such loss or damage is due to fault and/or the negligence or willful acts or omission of the Contractor, his employees, agents, representatives or sub-contractors.

5.o.2. The Contractors shall indemnify and keep the Owner harmless of all claims for

damage to Owner's property arising under or by reason of this contract.


6. DUTIES AND RESPONSIBILITIES OF CONTRACTOR 6.a. EMPLOYMENT LIABILITY TOWARDS WORKERS EMPLOYED BY THE

CONTRACTOR 6.a.1 The Contractor shall be solely and exclusively responsible for engaging or

employing persons for the execution of work. All persons engaged by the contractor shall be on Contractor's payroll and paid by Contractor. All disputes or differences between the Contractor and his/their employees shall be settled by Contractor.

6.a.2. Owner has absolutely no liability whatsoever concerning the employees of the

Contractor. The Contractor shall indemnify Owner against any loss or damage or liability arising out of or in the course of his/their employing persons or relation with his/their employees. The Contractor shall make regular and full payment of wages and on any complaint by any employee of the Contractor or his sub contractor regarding non-payment of wages, salaries or other dues, Owner reserves the right to make payments directly to such employees or sub- contractor of the Contractor and recover the amount in full from the bills of the Contractor and the contractor shall not claim any compensation or reimbursement thereof. The Contractor shall comply with the Minimum Wages Act applicable to the area of work site with regard to payment of wages to his employees and also to employees of his sub contractor.

6.a.3. The Contractor shall advise in writing or in such appropriate way to all of his

employees and employees of sub-contractors and any other person engaged by him that their appointment/employment is not by the Owner but by the Contractor and that their present appointment is only in connection with the construction contract with Owner and that therefore, such an employment/appointment would not enable or make them eligible for any employment/appointment with the Owner either temporarily or/and permanent basis.

6.b. NOTICE TO LOCAL BODIES The contractor shall comply with and give all notices required under any Government

authority, instruction, rule or order made under any act of parliament, state laws or any regulations or by-laws of any local authority relating to the works.

6.c. FIRST AID AND INDUSTRIAL INJURIES 6.c.1 Contractor shall maintain first aid facility for his employees and those of his

sub-contractors. 6.c.2. Contractor shall make arrangements for ambulance service and for the treatment of

all types of injuries. Names and telephone numbers of those providing such


services shall be furnished to Owner prior to start of construction and their name board shall be prominently displayed in Contractor's field office.

6.c.3. All industrial injuries shall be reported promptly to owner and a copy of contractor's

report covering each personal injury requiring the attention of a physician shall be furnished to the Owner.

6.d. SAFETY CODE 6.d.1. The Contractor shall at his own expenses arrange for the Safety provisions as may

be necessary for the execution of the work or as required by the Engineer-in-Charge in respect of all labours directly or indirectly employed for performance of the works and shall provide all facilities in connections therewith. In case the contractor fails to make arrangements and provide necessary facilities as aforesaid, the Owner shall be entitled to do so and recover the cost thereof from the Contractor.

6.d.2. From the commencement to the completion of the works, the contractor shall take

full responsibility for the care thereof and of all the temporary works (defined as meaning all temporary works of every kind required in or for the execution, completion or maintenance of the works). In case damage, loss or injury shall happen to the works or to any part thereof or to temporary works or to any cause whatsoever repair at his (Contractor's) own cost and make good the same so that at the time of completion, the works shall be in good order and condition and in conformity in every respect with the requirement of the contract and Engineer-in-Charge's instructions.

6.d.3. In respect of all labour, directly or indirectly employed in the work for the

performance of the Contractor's part of this agreement, the contractor shall at his own expense arrange for all the safety provisions as per relevant Safety Codes of C.P.W.D Bureau of Indian Standards, the Electricity Act/I.E. Rules. The Mines Act and such other Acts as applicable.

6.d.4. The Contractor shall observe and abide by all fire and safety regulations of the

Owner. Before starting construction work, the Contractor shall consult with Owner's Safety Engineer or Engineer-in-Charge/Site-in-Charge and must make good to the satisfaction of the Owner any loss or damage due to fire to any portion of the work done or to be done under this agreement or to any of the Owner's existing property.

6.d.5. The Contractor will be fully responsible for complying with all relevant provisions of

the Contract Labour Act and shall pay rates of Wages and observe hours of work/conditions of employment according to the rules in force from time to time.

6.d.6. The Contractor will be fully responsible for complying with the provision including

documentation and submission of reports on the above to the concerned authorities


and shall indemnify the Corporation from any such lapse for which the Government will be taking action against them.

6.d.7. Owner shall on a report having been made by an inspecting Office as defined in

the Contract Labour Regulations have the power to deduct from the money due to the Contractor any sum required or estimated to be required for making good the loss suffered by a worker(s) by reasons of non-fulfillment of conditions of contract for the benefit of workers no-payment of wages or of deductions made from his or their wages which are not justified by the terms of contract or non observance of the said contractor's labour Regulation.

6.e. INSURANCE AND LABOUR Contractor shall at his own expense obtain and maintain an insurance policy with a

Nationalised Insurance Company to the satisfaction of the Owner as provided hereunder.

6.e.1. EMPLOYEES STATE INSURANCE ACT i. The Contractor agrees to and does hereby accept full and exclusive liability for

the compliance with all obligations imposed by Employees State Insurance Act, 1948, and the Contractor further agrees to defend indemnify and hold Owner harmless from any liability or penalty which may be imposed by the Central, State or local authority by reason of any asserted violation by Contractor, or sub-contractor of the Employees' State Insurance Act, 1948 and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of or by reason of the work provided for by this contract whether brought by employees of the Contractor, by third parties or by Central or State Government authority or any political sub-division thereof.

ii. The Contractor agrees to file with the Employees State Insurance Corporation, the

Declaration forms and all forms which may be required in respect of the Contractor's or sub-contractor's employee whose aggregate remuneration is within the specified limit and who are employed in the work provided or those covered by ESI Act under any amendment to the Act from time to time.

The Contractor shall deduct and secure the agreement of the sub-contractor to

deduct the employee's contribution as per the first schedule of the Employee's State Insurance Act from wages and affix the employee's contribution cards at wages payment intervals. The Contractor shall remit and secure the agreement of the sub contractor to remit to the State Bank of India, Employee's State Insurance Corporation Account, the Employee's contribution as required by the Act.

iii. The Contractor agrees to maintain all records as required under the Act in

respect of employees and payments and the Contractor shall secure the agreement of the sub contractor to maintain such records. Any expenses incurred


for the contributions, making contribution or maintaining records shall be to the Contractor's or sub-contractor's account.

iv. The Owner shall retain such sum as may be necessary from the total contract

value until the Contractor shall furnish satisfactory proof that all contributions as required by the Employees State Insurance Act, 1948, have been paid.

v. WORKMAN'S COMPENSATION AND EMPLOYEE'S LIABILITY

INSURANCE Provide Insurance for all the Contractor's employees engaged in the performance

of this contract. If any of the work is sublet, the Contractor shall ensure that the sub contractor provides workmen's compensation and Employer's Liability Insurance for the latter's employees who are not covered under the Contractor's insurance.

vi. AUTOMOBILE LIABILITY INSURANCE Contractor shall take out Insurance to cover all risks to Owner for each of his

vehicles plying on works of this contract and these insurances shall be valid for the total contract period. No extra payment will be made for this insurance. Owner shall not be liable for any damage or loss not made good by the Insurance Company, should such damage or loss result from unauthorised use of the vehicle. The provisions of the Motor Vehicle Act would apply.

vii. FIRE INSURANCE Contractor shall within two weeks after award of contract insure the Works,

Plant and Equipment and keep them insured until the final completion of the Contract against loss or damage by accident, fire or any other cause with an insurance company to be approved by the Employer/Consultant in the joint names of the Employer and the Contractor (name of the former being placed first in the Policy). Such Policy shall cover the property of the Employer only.

6.e.2. ANY OTHER INSURANCE REQUIRED UNDER LAW OR REGULATION OR

BY OWNER i. Contractor shall also provide and maintain any and all other insurance which

may be required under any law or regulations from time to time. He shall also carry and maintain any other insurance which may be required by the Owner.

ii. The aforesaid insurance policy/policies shall provide that they shall not be

cancelled till the Engineer-in-Charge has agreed to their cancellation. iii. The Contractor shall satisfy to the Engineer-in-Charge/Site-in-Charge from

time to time that he has taken out all insurance policies referred to above and has paid the necessary premium for keeping the policies alive till the expiry of the defects liability period.


iv. The contractor shall ensure that similar insurance policies are taken out by his

sub-contractor (if any) and shall be responsible for any claims or losses to the Owner resulting from their failure to obtain adequate insurance protections in connection thereof. The contractor shall produce or cause to be proceed by his sub-contractor (if any) as the case may be, the relevant policy or policies and premium receipts as and when required by the Engineer-in-Charge/Site-in-Charge.

6.e.3. LABOUR AND LABOUR LAWS i. The contractor shall at his own cost employ persons during the period of

contract and the persons so appointed shall not be construed under any circumstances to be in the employment of the Owner.

ii. All payments shall be made by the contractor to the labor employed by him in

accordance with the various rules and regulations stated above. The contractor shall keep the Owner indemnified from any claims whatsoever inclusive of damages/costs or otherwise arising from injuries or alleged injuries to or death of a person employed by the contractor or damages or alleged damages to the property.

iii. No labor below the age of eighteen years shall be employed on the work.

The Contractor shall not pay less than what is provided under the provisions of the contract labor (Regulations and Abolition) Act, 1970 and the rules made there under and as may be amended from time to time. He shall pay the required deposit under the Act appropriate to the number of workman to be employed by him or through sub contractor and get himself registered under the Act. He shall produce the required Certificates to the Owner before commencement of the work. The Owner recognizes only the Contractor and not his sub contractor under the provisions of the Act. The Contractor will have to submit daily a list of his workforce. He will also keep the wage register at the work site or/and produce the same to the Owner, whenever desired. A deposit may be taken by the Owner from the Contractor to be refunded only after the Owner is satisfied that all workmen employed by the Contractor have been fully paid for the period of work in Owner's premises at rates equal to or better than wages provided for under the Minimum Wages Act. The contractor shall be responsible and liable for any complaints that may arise in this regard and the consequences thereto.

iv. The Contractor will comply with the provisions of the Employee's Provident

Fund Act and the Family Pension Act as may be applicable and as amended from time to time.

v. The Contractor will comply with the provisions of the payment of Gratuity Act,

1972, as may be applicable and as amended from time to time.


vi. IMPLEMENTATION OF APPRENTICES ACT, 1961 The Contractor shall comply with the provisions of the Apprentices Act, 1961

and the Rules and Orders issued there under from time to time. If he fails to do so, his failure will be a breach of the contract and the Engineer-in-Charge may, at his discretion, cancel the contract. The Contractor shall also be liable for any pecuniary liability arising on account of any violation by him of the provision of the Act.

vii. MODEL RULES FOR LABOUR WELFARE The Contractor shall at his own expenses comply with or cause be complied with

Model rules for Labor Welfare as appended to those conditions or rules framed by the Government from time to time for the protection of health and for making sanitary arrangements for worker employed directly or indirectly on the works. In case the contractor fails to make arrangements as aforesaid the Engineer-in-Charge/Site-in-Charge shall be entitled to do so and recover the cost thereof from the contractor.

6.f. DOCUMENTS CONCERNING WORKS 6.f.1. All documents including drawings, blue prints, tracings, reproducible models,

plans, specifications and copies, thereof furnished by the Owner as well as all drawings, tracings, reproducible, plans, specifications design calculations etc. prepared by the contractor for the purpose of execution of works covered in or connected with this contract shall be the property of the Owner and shall not be used by the contractor for any other work but are to be delivered to the Owner at the completion or otherwise of the contract.

6.f.2. The Contractor shall keep and maintain secrecy of the documents, drawings etc.

issued to him for the execution of this contract and restrict access to such documents, drawings etc. and further the Contractor shall execute a SECRECY agreement from each or any person employed by the Contractor having access to such documents, drawings etc. The Contractor shall not issue drawings and documents to any other agency or individual without the written approval by the Engineer-in-Charge/Site-in- Charge.

6.f.3. Contractor will not give any information or document etc. concerning details of the

work to the press or a news disseminating agency without prior written approval from Engineer-in-charge/Site-in-Charge. Contractor shall not take any pictures on site without written approval of Engineer-in-Charge/Site-in-Charge.

7. PAYMENT OF CONTRACTOR'S BILLS 7.1. Payments will be made against Running Accounts bills certified by the Owner's

Engineer-in-Charge/Site-in-Charge within 15 days from the date of receipt of the certified bill by the Disbursement Section of the Owner.


7.2. Running Account Bills and the final bill shall be submitted by the Contractor

together with the duly signed measurements sheet(s) to the Engineer-in-Charge/ Site-in-Charge of the Owner in quadruplicate for certification.

The Bills shall also be accompanied by quantity calculations in support of the

quantities contained in the bill along with cement consumption statement, actual/theoretical, wherever applicable duly certified by the Engineer-in-Charge/ Site-in-Charge of the Owner.

7.3. All running account payments shall be regarded as on account payment(s) to be

finally adjusted against the final bill payment. Payment of Running Account Bill(s) shall not determine or affect in any way the rights of the Owner under this Contract to make the final adjustments of the quantities of material, measurements of work and adjustments of amounts etc. in the final bill.

7.4. The final bill shall be submitted by the Contractor within one month of the date of

completion of the work fully and completely in all respects. If the Contractor fails to submit the final bill accordingly Engineer-in-Charge/Site-in-Charge may make the measurement and determine the total amount payable for the work carried out by the Contractor and such a certification shall be final and binding on the Contractor. The Owner/Engineer- in-Charge/Site-in-Charge may take the assistance of an outside party for taking the measurement, the expenses of which shall be payable by the Contractor.

7.5. Payment of final bill shall be made within 30 days from the date of receipt of the

certified bill by the Disbursement Section of the owner. 7.a. MEASUREMENT OF WORKS 7.a.1. All measurements shall be in metric system. All the works will be jointly measured

by the representative of the Engineer-in-Charge/Site-in-Charge and the Contractor or their authorized agent progressively. Such measurement will be recorded in the Measurement Book/Measurement Sheet by the Contractor or his authorized representative and signed in token of acceptance by the Owner or their authorized representative.

7.a.2. For the purpose of taking joint measurement, the Contractor/representative shall be

bound to be present whenever required by the Engineer-in-Charge/Site-in-Charge. If, however, they are absent for any reasons whatsoever, the measurement will be taken by the Engineer-in-Charge/Site-in-Charge or his representative and the same would be deemed to be correct and binding on the Contractor.

7.a.3. In case of any dispute as to the mode of measurement for any item of work, the

latest Indian Standard Specifications shall be followed. In case of any further dispute on the same the same shall be as per the certification of an outside


qualified Engineer/ Consultant. Such a measurement shall be final and binding on the Owner and the Contractor.

7.b. BILLING OF WORKS EXECUTED The Contractor will submit a bill in approved Performa in quadruplicate to the

Engineer-in-Charge/Site-in-Charge of the work giving abstract and detailed measurement for the various items executed during a month, before the expiry of the first week of the succeeding month. The Engineer-in-Charge/Site-in-Charge shall take or cause to be taken the requisite measurements for the purpose of having the bill verified and/or checked before forwarding the same to the disbursement office of the Owner for further action in terms of the Contract and payment thereafter. The Engineer-in-Charge/Site-in-Charge shall verify the bills within 7 days of submission of the Bill by the Contractor.

7.c. RETENTION MONEY 10% of the total value of the Running Account and Final Bill will be deducted and

retained by the Owner as retention money on account of any damage/defect liability that may arise for the period covered under the defect liability period clause of the Contract free of interest. Any damage or defect that may arise or lie undiscovered at the time of issue of completion certificate connected in any way with the equipment or materials supplied by contractor or in workmanship shall be rectified or replaced by the contractor at his own expense failing which the Owner shall be entitled to rectify the said damage/defect from the retention money. Any excess of expenditure incurred by the Owner on account of damage or defect shall be payable by the Contractor. The decision of the Owner in this behalf shall not be liable to be questioned but shall be final and binding on the Contractor.

Thus, deduction towards retention money is applicable only in case of job/works

contracts (civil, mechanical, electrical, maintenance etc.) where any damage or defect may arise in future (i.e. within 12 months from the date of completion of job) or lie undiscovered at the time of issue of completion certificate.

7.d. STATUTORY LEVIES 7.d.1 The Contractor accepts full and exclusive liability for the payment of any and all

taxes, duties, octroi, rates, cess, levies and statutory payments payable under all or any of the statutes etc.

Variations of taxes and duties arising out of the amendments to the Central / State enactments, in respect of sale of goods / services covered under this bid shall be to HPCL’s account, so long as :

•They relate to the period after the opening of the price bid, but before the

contracted completion period ( excluding permitted extensions due to delay on


account of the contractors, if any) or the actual completion period, whichever is earlier; and

•The vendor furnishes documentary evidence of incurrence of such variations, in

addition to the invoices/documents for claiming Cenvat /Input Tax credit, wherever applicable.��

All contributions and taxes for unemployment compensation, insurance and old age

pensions or annuities now or hereafter imposed by Central or State Governmental authorities which are imposed with respect to or covered by the wages, salaries or other compensations paid to the persons employed by the Contractor and the Contractor shall be responsible for the compliance with all obligations and restrictions imposed by the Labor Law or any other law affecting employer-employee relationship and the Contractor further agrees to comply and to secure the compliance of all sub-contractors with all applicable Central, State, Municipal and local laws, and regulations and requirements of any Central, State or Local Government agency or authority.

Contractor further agrees to defend, indemnify and hold harmless from any liability or

penalty which may be imposed by the Central, State or Local authorities by reason of any violation by Contractor or sub-contractor of such laws, regulations or requirements and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of, or by reasons of the work provided for by this contract by third parties, or by Central or State Government authority or any administrative sub-division thereof. The Contractor further agrees that in case any such demand is raised against the Owner, and Owner has no way but to pay and pays/makes payment of the same, the Owner shall have the right to deduct the same from the amounts due and payable to the Contractor. The Contractor shall not raise any demand or dispute in respect of the same but may have recourse to recover/receive from the concerned authorities on the basis of the Certificate of the Owner issued in that behalf.

7.d.2. The rates quoted should be inclusive of all rates, cess, taxes and sales tax on works

contracts wherever applicable. However, wherever the sales tax on works contract is applicable and is to be deducted at source, the same will be deducted from the bills of the Contractor and paid to the concerned authorities. The proof of such payments of sales tax on works contract will be furnished to the contractor.

7.d.3. Income tax will be deducted at source as per rules at prevailing rates, unless

certificate, if any, for deduction at lesser rate or nil deduction is submitted by the Contractor from appropriate authority.

7.e. MATERIALS TO BE SUPPLIED BY CONTRACTOR 7.e.1. The Contractor shall procure and provide the whole of the materials required for

construction including tools, tackles, construction plant and equipment for the completion and maintenance of the works except the materials viz. steel and cement


which may be agreed to be supplied as provided elsewhere in the contract. The contractor shall make arrangement for procuring such materials and for the transport thereof at their own cost and expenses.

7.e.2. The Owner may give necessary recommendation to the respective authority if so

desired by the Contractor but assumes no responsibility of any nature. The Contractor shall procure materials of ISI stamp/certification and supplied by reputed suppliers borne on DGS&D list.

7.e.3. All materials procured should meet the specifications given in the tender document.

The Engineer-in-charge may, at his discretion, ask for samples and test certificates for any batch of any materials procured. Before procuring, the Contractor should get the approval of Engineer-in-Charge/Site-in-Charge for any materials to be used for the works.

7.e.4. Manufacturer's certificate shall be submitted for all materials supplied by the

Contractor. If, however, in the opinion of the Engineer-in-Charge/Site-in-Charge any tests are required to be conducted on the material supplied by the Contractor, these will be arranged by the Contractor promptly at his own cost.

7.f. MATERIALS TO BE SUPPLIED BY THE OWNER 7.f.1. Steel and Cement maybe supplied by the Owner to the contractor against payment by

Contractor from either godown or from the site or within work premises itself and the contractor shall arrange for all transport to actual work site at no extra cost.

7.f.2. The contractor shall bear all the costs including loading and unloading, carting

from issue points to work spot storage, unloading, custody and handling and stacking the same and return the surplus steel and cement to the Owner's storage point after completion of job.

7.f.3. The contractor will be fully accountable for the steel and cement received from the

Owner and contractor will give acknowledgement/receipt for quantity of steel and cement received by him each time he uplifts cement from Owner's custody.

7.f.4. For all computation purposes, the theoretical cement consumption shall be considered as per CPWD standards.

7.f.5. Steel and Cement as received from the manufacturer/stockists will be

issued to the contractor. Theoretical weight of cement in a bag will be considered as 50 Kg. Bags weighing upto 4% less shall be accepted by the contractor and considered as 50 Kg. per bag. Any shortage in the weight of any cement bag by more than 4% will be to the Owner's account only when pointed out by the Contractor and verified by Engineer-in-Charge/Site in Charge at the time of Contract or taking delivery.

7.f.6. The contractor will be required to maintain a stock register for receipt, issuance and

consumption of steel and cement at site. Cement will be stored in a warehouse


at site. Requirement of cement on any day will be taken out of the warehouse. Cement issued shall be regulated on the basis of FIRST RECEIPT to go as FIRST ISSUE.

7.f.7. Empty cement bag shall be the property of the Contractor. Contractor shall be

penalised for any excess/under consumption of cement. The penal rate will be twice the rate of issue of cement for this work.

7.f.8. All the running bills as well as the final bills will be accompanied by cement

consumption statements giving the detailed working of the cement used, cement received and stock-on-hand.

7.f.9. The Contractor will be fully responsible for safe custody of cement once it is

received by him and during transport. Owner will not entertain any claims of the contractor for theft, loss or damage to cement while in their custody.

7.f.10. The contractor shall not remove from the site any cement bags at any time. 7.f.11. The Contractor shall advise Engineer-in-charge/Site-in-charge in writing at least 21

days before exhausting the Cement stocks already held by Contractor to ensure that such delays do not lead to interruptions in the progress of work.

7.f.12. Cement shall not be supplied by the Owner for manufacturing of mosaic tiles,

precast cement jali and any other bought out items which consume cement and for temporary works.

7.f.13. Cement in bags and in good usable condition left over after the completion of work

shall be returned by the contractor to the Owner. The Owner shall make payment to the Contractor at the supply rate for such stocks of cement they accept and receive. Any refused stock of cement shall be removed by the Contractor from the site at his cost and expenses within 15 days of completion of the work.

8. PAYMENT OF CLAIMS AND DAMAGES 8.1. Should the Owner have to pay money in respect of claims or demands as aforesaid the

amount so paid and the costs incurred by the Owner shall be charged to and paid by the Contractor and the Contractor shall not be entitled to dispute or question the right of the Owner to make such payments notwithstanding the same may have been without his consent or authority or in law or otherwise to the contrary.

8.2. In every case in which by virtue of the provisions of Workmen's Compensation Act,

1923, or other Acts, the Owner is obliged to pay Compensation to a Workman employed by the Contractor in execution of the works, the Owner will recover from the Contractor the amount of compensation so paid and without prejudice to the rights of Owner under the said Act. Owner shall be at liberty to recover such amount or any part thereof by deducting it from the security deposit or from any sum due to


the Contractor whether under this contract or otherwise. The Owner shall not be bound to contest any claim made under Section 12 sub section (1) of the said Act, except on the written request of the Contractor and upon his giving to the Owner full security for all costs for which the owner might become liable in consequence of contesting such claim.

8.a. ACTION AND COMPENSATION IN CASE OF BAD WORK If it shall appear to the Engineer-in-Charge/Site-in-Charge that any work has been

executed with bad, imperfect or unskilled workmanship, or with materials, or that any materials or articles provided by the Contractor for execution of the work are not of standards specified/inferior quality to that contracted for, or otherwise not in accordance with the contract, the CONTRACTOR shall on demand in writing from the Engineer-in-Charge/Site-in-Charge or his authorized representative specifying the work, materials or articles complained of, notwithstanding that the same may have been inadvertently passed, certified and paid for, forthwith rectify or remove and reconstruct the work so specified and at his own charge and cost and expenses and in the event of failure to do so within a period of 15 days of such intimation/ information/knowledge, the Contractor shall be liable to pay compensation equivalent to the cost of reconstruction by the Owner. On expiry of 15 days period mentioned above, the Owner may by themselves or otherwise rectify or remove and re-execute the work or remove and replace with others, the materials or articles complained of as the case may be at the risk and expenses in all respects of the Contractor. The decision of the Engineer-in- Charge/ Site-in-Charge as to any question arising under this clause shall be final and conclusive and shall not be raised as a dispute or shall be arbitrable.

8.b. INSPECTION AND AUDIT OF CONTRACT AND WORKS This project is subject to inspection by various Government agencies of

Government of India. The contractor shall extend full cooperation to all the Government and other agencies in the inspection of the works, audit of the Contract and the documents of Contract Bills, measurements sheets etc. etc. and examination of the records of works and make enquiries interrogation as they may deem fit, proper and necessary. Upon inspection etc. by such agencies if it is pointed out that the contract work has not been carried out according to the prescribed terms and conditions as laid down in the tender documents and if any recoveries are recommended, the same shall be recovered from the contractors running bills/final bill/from ordered/suggested Security Deposit/retention money. The Contractor shall not raise any dispute on any such account and the same shall not be arbitrable.

9. CONTRACTOR TO INDEMNIFY THE OWNER

The Contractor shall indemnify the Owner and every member, officer and employee of the Owner, also the Engineer-in-Charge/Site-in-Charge and his staff


against all the actions, proceedings, claims, demands, costs, expenses, whatsoever arising out of or in connection with the works and all actions, proceedings, claims, demands, costs, expenses which may be made against the Owner for or in respect of or arising out of any failure by the Contractor in the performance of his obligations under the contract. The Contractor shall be liable for or in respect of or in consequence of any accident or injury to any workmen or other person in the employment of the Contractor or his sub contractor and Contractor shall indemnify and keep indemnified the Owner against all such damages, proceedings, costs, charges and expenses whatsoever in respect thereof or in relation thereto.

10. LIQUIDATED DAMAGES i)In case of any delay in completion of the work beyond the CDD, the Owner

shall be entitled to be paid Liquidated Damages by the Contractor. The liquidated damages shall be initially at the rate of 0.5% (half percent) of the total contract value for every week of the delay subject to a maximum of 5% of the total contract value. The liquidated damages shall be recovered by the Owner out of the amounts payable to the Contractor or from any Bank Guarantees or Deposits furnished by the Contractor or the Retention Money retained from the Bills of the Contractor, either under this contract or any other contract.

ii)The Contractor shall be entitled to give an acceptable unconditional Bank Guarantee in lieu of such a deduction if Contractor desires any decision on a request for time extension. iii)Once a final decision is taken on the request of the Contractor or otherwise,

the LD shall be applicable only on the basic cost of the contract and on each full completed week(s) of delay (and for part of the week, a pro-rata LD amount shall be applicable).

iv)This final calculation of LD shall be only on the value of the unexecuted portion/quantity of work as on the CDD.

v)Contractor agrees with the Owner, that the above represents a genuine pre-

estimate of the damages which the Owner will suffer on account of delay in the performance of the work by Contractor. The Contractor further agrees that the LD amount is over and above any right which owner has to risk purchase under Clause 12.4 and any right to get the defects in the work rectified at the cost of the contractor.


11. DEFECTS AFTER TAKING OVER OR TERMINATION OF WORK CONTRACT BY OWNER

The Contractor shall remain responsible and liable to make good all losses or damages

that may occur/appear to the work carried out under this Contract within a period of 12 months from date of issue of the Completion Certificate and/or the date of Owner taking over the work, which ever is earlier. The Contractor shall issue a Bank Guarantee to the Owner in the sum of 10% of the work entrusted in the Contract, from any nationalized Bank acceptable to the Owner and if however, the Contractor fails to furnish such a Bank Guarantee the Owner shall have right to retain the Security Deposit and Retention Money to cover the 10% of the Guarantee amount under this clause and to return/refund the same after the expiry of the period of 12 months without any interest thereon.

12. TERMINATION OF CONTRACT 12.1 The owner may terminate the contract at any Phase of the construction for reasons to

be recorded in the letter of termination. 12.2 The Owner inter alia may terminate the Contract for any or all of the following reasons

that the contractor a) has abandoned the work/Contract. b) has failed to commence the works, or has without any lawful excuse under

these conditions suspended the work for 15 consecutive days. c) has failed to remove materials from the site or to pull down and replace the

work within 15 days after receiving from the Engineer written notice that the said materials or work were condemned and/or rejected by the Engineer under specified conditions.

d) has neglected or failed to observe and perform all or any of the terms acts,

matters or things under this Contract to be observed and performed by the Contractor.

e) has to the detriment of good workmanship or in defiance of the Engineer's

instructions to the contrary sub-let any part of the Contract. f) has acted in any manner to the detrimental interest, reputation, dignity, name or

prestige of the Owner. g) has stopped attending to work without any prior notice and prior permission for a

period of 15 days. h) has become untraceable.


i) has without authority acted in violation of the terms and conditions of this contract and has committed breach of terms of the contract in best judgment of the owner.

j) has been declared insolvent/bankrupt. k) in the event of sudden death of the Contractor. 12.3 The owner on termination of such contract shall have the right to appropriate the

Security Deposit, Retention Money and invoke the Bank Guarantee furnished by the contractor and to appropriate the same towards the amounts due and payable by the contractor as per the conditions of Contract and return to the contractor excess money, if any, left over.

12.4 In case of Termination of the contract, Owner shall have the right to carry out the

unexecuted portion of the work either by themselves or through any other contractor(s) at the risk and cost of the Contractor. In view of paucity of time, Owner shall have the right to place such unexecuted portion of the work on any nominated contractor(s). However, the overall liability of the Contractor shall be restricted to 100 % of the total contract value.

12.5 The contractor within or at the time fixed by the Owner shall depute his authorized

representative for taking joint final measurements of the works executed thus far and submit the final bill for the work as per joint final measurement within 15 days of the date of joint final measurement. If the contractor fails to depute their representative for joint measurement, the owner shall take the measurement with their Engineer-in-Charge/Site-in-Charge or any other outside representatives. Such a measurement shall not be questioned by the Contractor and no dispute can be raised by the Contractor for purpose of Arbitration.

12.6 The Owner may enter upon and take possession of the works and all plant, tools,

scaffoldings, sheds, machinery, power operated tools and steel, cement and other materials of the Contract at the site or around the site and use or employ the same for completion of the work or employ any other contractor or other person or persons to complete the works. The Contractor shall not in any way object or interrupt or do any act, matter or thing to prevent or hinder such actions, other Contractor or other persons employed for completing and finishing or using the materials and plant for the works. When the works shall be completed or as soon thereafter the Engineer shall give a notice in writing to the Contractor to remove surplus materials and plant, if any, and belonging to the Contractor except as provided elsewhere in the Contract and should the Contractor fail to do so within a period of 15 days after receipt thereof the Owner may sell the same by public auction and shall give credit to the contractor for the amount realized. The Owner shall thereafter ascertain and certify in writing under his hand what (if anything) shall be due or payable to or by the Owner for the value of the plant and materials so taken possession and the expense or loss which the Owner shall have been put to in procuring


the works, to be so completed, and the amount if any, owing to the Contractor and the amount which shall be so certified shall thereupon be paid by the Owner to the Contractor or by the Contractor to the Owner, as the case may, and the Certificate of the Owner shall be final and conclusive between the parties.

12.7 When the contract is terminated by the Owner for all or any of the reasons mentioned

above the Contractor shall not have any right to claim compensation on account of such termination.

13. FORCE MAJEURE 13.1. Any delay in or failure of the performance of either part hereto shall not constitute

default hereunder or give rise to any claims for damage, if any, to the extent such delays or failure of performance is caused by occurrences such as Acts of God or an enemy, expropriation or confiscation of facilities by Government authorities, acts of war, rebellion, sabotage or fires, floods, explosions, riots, or strikes. The Contractor shall keep records of the circumstances referred to above and bring these to the notice of the Engineer-in-Charge/Site-in-Charge in writing immediately on such occurrences. The amount of time, if any, lost on any of these counts shall not be counted for the Contract period. One decision of the Owner arrived at after consultation with the Contractor, shall be final and binding. Such a determined period of time be extended by the Owner to enable the Contractor to complete the job within such extended period of time.

13.2. If Contractor is prevented or delayed from the performing any of its obligations

under this Agreement by Force Majeure, then Contractor shall notify Owner he circumstances constituting the Force Majeure and the obligations performance of which is thereby delayed or prevented, within seven days of the occurrence of the events.

14. ARBITRATION 14.1 All disputes and differences of whatsoever nature, whether existing or which shall at any

time arise between the parties hereto touching or concerning the agreement, meaning, operation or effect thereof or to the rights and liabilities of the parties or arising out of or in relation thereto whether during or after completion of the contract or whether before after determination, foreclosure, termination or breach of the agreement (other than those in respect of which the decision of any person is, by the contract, expressed to be final and binding) shall, after written notice by either party to the agreement to the other of them and to the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole Arbitrator to be appointed as hereinafter provided.

14.2 The appointing authority shall either himself act as the Sole Arbitrator or nominate some

officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as owner or HPCL) or a retired officer of any other Government Company in the Oil Sector of the rank


of Ch. Manager & above or any retired officer of the Central Government not below the rank of a Director, to act as the Sole Arbitrator to adjudicate the disputes and differences between the parties. The contractor/vendor shall not be entitled to raise any objection to the appointment of such person as the Sole Arbitrator on the ground that the said person is/was an officer and/or shareholder of the owner, another Govt. Company or the Central Government or that he/she has to deal or had dealt with the matter to which the contract relates or that in the course of his/her duties, he/she has/had expressed views on all or any of the matters in dispute or difference.

14.3 In the event of the Arbitrator to whom the matter is referred to, does not accept the

appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons whatsoever, the Appointing Authority aforesaid, shall nominate another person as aforesaid, to act as the Sole Arbitrator.

14.4 Such another person nominated as the Sole Arbitrator shall be entitled to proceed with the

arbitration from the stage at which it was left by his predecessor. It is expressly agreed between the parties that no person other than the Appointing Authority or a person nominated by the Appointing Authority as aforesaid, shall act as an Arbitrator. The failure on the part of the Appointing Authority to make an appointment on time shall only give rise to a right to a Contractor to get such an appointment made and not to have any other person appointed as the Sole Arbitrator.

14.5 The Award of the Sole Arbitrator shall be final and binding on the parties to the

Agreement. 14.6 The work under the Contract shall, however, continue during the Arbitration proceedings

and no payment due or payable to the concerned party shall be withheld (except to the extent disputed) on account of initiation, commencement or pendency of such proceedings.

14.7 The Arbitrator may give a composite or separate Award(s) in respect of each dispute or

difference referred to him and may also make interim award(s) if necessary. 14.8 The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by

the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The lumpsum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation contracts and Rs. 60,000/- for engineering contracts and if the sole Arbitrator completes the arbitration including his award within 5 months of accepting his appointment, he shall be paid Rs. 10,000/- additionally as bonus. Reasonable actual expenses for stenographer, etc. will be reimbursed. Fees shall be paid Phase wise i.e. 25% on acceptance, 25% on completion of pleadings/documentation, 25% on completion of arguments and balance on receipt of award by the parties

14.9 Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or

any statutory modification or re-enactment thereof and the rules made there under, shall apply to the Arbitration proceedings under this Clause.

14.10 The Contract shall be governed by and constructed according to the laws in force in

India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at


Mumbai for all purposes. The Arbitration shall be held at Mumbai and conducted in English language.

14.11 The Appointing Authority is the Functional Director of Hindustan Petroleum Corporation

Limited. 15. GENERAL 15.1. Materials required for the works whether brought by the or supplied by the Owner shall

be stored by the contractor only at places approved by Engineer-in-Charge/Site-in-Charge. Storage and safe custody of the material shall be the responsibility of the Contractor.

15.2. Owner and/or Engineer-in-Charge/Site-in-Charge connected with the contract, shall

be entitled at any time to inspect and examine any materials intended to be used in or on the works, either on the site or at factory or workshop or at other place(s) manufactured or at any places where these are laying or from which these are being obtained and the contractor shall give facilities as may be required for such inspection and examination.

15.3. In case of any class of work for which there is no such specification supplied by the owner

as is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same the work should be carried out as per standard Engineering practice subject to the approval of the Engineer-in-Charge/Site-in-Charge.

15.4. Should the work be suspended by reason of rain, strike, lockouts or other cause the

contractor shall take all precautions necessary for the protection of the work and at his own expense shall make good any damages arising from any of these causes.

15.5 The contractor shall cover up and protect from injury from any cause all new work also

for supplying all temporary doors, protection to windows and any other requisite protection for the whole of the works executed whether by himself or special tradesmen or sub- contractors and any damage caused must be made good by the contractors at his own expense.

15.6 If the contractor has quoted the items under the deemed exports, then it will be the

responsibility of the contractor to get all the benefits under deemed exports from the Government. The Owner’s responsibility shall only be limited to the issuance of required certificates. The quotation will be unconditional and phrases like “subject to availability of deemed exports benefit” etc. will not find place in it.

16. Integrity Pact : Effective 1st September, 2007, all tenders and contracts shall comply with

the requirements of the Integrity Pact (IP) if the values of such tenders or contracts exceed Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid.


17. Grievances of parties participating or intend to participate in the tender shall be addressed in writing to the officer designate of the Grievance Redressal Cell where the tenders have to be submitted within the stipulated period. Detailed mechanism of Grievance Redressal is available on the HPCL website.

18. General terms and conditions pertaining to Health, safety and environment shall be as per

Attachment-III.


SECTION-I

SPECIAL CONDITIONS OF CONTRACT

INDEX

1. General 2. Scope of work 3. Splitting of total scope of work 4. Safety & Security Regulations 5. Price format 6. Escalation 7. Customs Duty 8. Income tax, service tax & cess 9. Adherence to Government guidelines 10. Guarantee 11. Consequential damage 12. Mechanical completion 13. Changes and additions to Consultant’s scope of work 14. Patents 15. Insurance 16. Indemnity 17. Governing Law and Jurisdiction 18. Currencies of Payment


19. Participation in Contracts for project execution 20. Income Tax Clearance Certificate 21. Permits and approvals 22. Interaction with other Agencies 23. Assistance during legal disputes 24. Statutory approvals 25. Posting of consultants’ personnel to major contractor’s office 26. Inspection of critical equipments 27. Office accommodation for owner’s staff 28. Compliance to standards 29. Responsibilities of the owner


SPECIAL CONDITIONS OF CONTRACT

1.0 GENERAL 1.1 General Conditions of Contract (GCC) attached, shall be applicable to this job. 1.2 Special Conditions of Contract (SCC) shall be read in conjunction with the General Conditions of Contract,

Scope of Work, drawings and any other document forming part of this contract wherever the context so desires. It will be presumed that the Consultant has read, understood and accepted all the conditions stipulated in GCC.

1.3 Not withstanding the sub-division of the document into separate sections and volumes wherever done,

every part of each shall be deemed to be supplementary of every other part and shall be read with and as part of the contract so far as it may be practicable to do so.

1.4 Where any portion of the General Conditions of Contract are repugnant to or at variance with any

provisions of the Special Conditions of Contract, then, unless different intentions appear, the provisions of the Special Conditions of Contract shall be deemed to override the provisions of the General Conditions of Contract and shall to the extent of such repugnancy, or variations prevail.

1.5 Wherever it is mentioned in the tender document that the Consultant shall perform certain work or provide

certain facilities, it shall be understood that same shall be affected / carried out by the Consultant at his own cost, unless a different intention is specifically and expressly stated herein or otherwise explicit from the context.

1.6 Tenderers are advised to acquaint themselves fully before firming up their offers, the description of work,

scope of services, time schedule and terms and conditions including all the provisions of the Tender Document.

2.0 SCOPE OF WORK

The scope of work covered in this tender is as specified in the tender document.

3.0 SPLITTING OF TOTAL SCOPE OF WORK. 3.1 As explained elsewhere in the tender document, the total scope of work is divided into two Phases i.e.,

Phase -I and Phase -II. Bidders are required to submit the quotations in the specified format and mention the lumpsum fee/price for each Phase (Phase – I & Phase – II) separately. Only the work under Phase I will be awarded initially. Award of work on Phase -II to the agency on whom work under Phase -I is awarded will be based on the investment clearance from the competent authority for the project cost estimate submitted or at the discretion of HPCL.

3.2 It is explicitly spelt that HPCL reserves absolute right to award the work in any manner purely based on the

requirement and convenience and purpose of the Project/Tender. In case of abandonment of Phase II jobs, the consultant shall not be entitled to get any compensation whatsoever.

3.3 The work will be awarded to the bidder quoted lowest price for Phase- I and Phase- II put together. If

the quoted price by the bidders being equal, the bidder who has quoted the lowest price for Phase I will be awarded the total work. The order for Phase-I shall be released in the first stage and after obtaining the approval of project, order shall be released for Phase-II. The bidder shall keep the price valid for phase-II for 6 months from the LOI date for Phase-I.

3.4 Bidders who do not quote exactly as per the format given in the tender are liable for disqualification.


3.5 Bidders are required to quote their lump sum fee/rate for Phase -I and Phase -II separately as per the format

given in the tender. 4.0 SAFETY AND SECURITY REGULATION

4.1 The consultant shall abide by the safety and security regulation as enforced by the owner from time to

time. The consultant shall comply with all rules, regulations and orders of various statutory authorities, Navy, Visakhapatnam Port Trust, AP State Pollution Control Board, Ministry of Environment and Forests, Coast Guard, Insurance, Engineer-In-Charge of HPCL, etc. at no extra cost to the owner.

4.2 The consultant, shall at his own expense, shall provide and maintain sufficient proper and life saving

and first aid appliances at their work station at site.

4.3 Foreign consultants and their associates shall station their engineers in India, preferably at Visakhapatnam for sufficient periods and for effective Co-ordination / design / engineering /procurement/ construction super vision and other project management activities.

5.0 PRICE FORMAT: 5.1 Lump sum fee for the services covered in this tender shall be quoted by the Tenderer as per the format

provided in the tender document, which shall be inclusive of all kinds of expenses of travel/stay, know-how, taxes, duties, etc.

6.0 ESCALATION

6.1 The prices quoted by bidders shall remain firm till completion of all works to the satisfaction of the owner.

It may be noted that no deviation on this account will be acceptable and offer not containing firm price shall be rejected.

7.0 CUSTOMS DUTY

7.1 In case the Consultant proposes to import any equipment, software, etc. for purpose of performance of the

job in India, all duties related to such imports shall be paid directly by the consultant to the concerned authorities and the same shall be included in the lump sum quoted price. Owner will not bear any liability on this account. It is the responsibility of the Consultant to provide the required particulars and documents to the Customs and other Government authorities and get the materials cleared and transported in time. Consultant shall be fully responsible for any delays, penalties, charges, losses, if any in this regard.

8.0 INCOME TAX, SERVICE TAX AND CESS 8.1 Income Tax along with surcharge, if any, at the prevailing rate(s) shall be deducted from the Consultant’s

bills as per Income Tax Act. Necessary certificate for Income Tax deduction at source, shall be issued by Owner. Bidders may familiarize themselves with the potential obligations regarding Indian Tax Laws. Bidder is advised to seek its own information and consultation regarding the applicability of these laws and requirement pursuant to this Notice Inviting Tender.

8.2 Service tax along with cess at prevalent rates shall be extra for payments made in Indian rupees and need

not be included in the lump sum price. For payments made in Foreign currencies, the same shall be as per Government of India guidelines.


9.0 ADHERENCE TO GOVERNMENT GUIDELINES 9.1 HPCL is a public sector enterprise under the administrative control of the Ministry of Petroleum and Natural

Gas, Government of India. HPCL would be modifying / deleting / adding any clause to comply with the guidelines / directions issued from time to time by the Government / other authorities.

10.0 GUARANTEE: 10.1 The Consultant shall guarantee the services as specified and described in this tender document and technical

documentation to be developed will be in accordance with sound and established engineering practices using international standards and Indian codes / regulations wherever applicable, for the purpose specified, free from defects and suitable for respective uses intended.

10.2 In the event of faulty engineering, error or omission in respect of work performed by the CONSULTANT,

Consultant shall furnish corrective technical studies and engineering as may be required without any additional cost to OWNER within a mutually agreed time frame. OWNER shall incorporate the items of redesign, change or modification suggested by the CONSULTANT and CONSULTANT shall bear 10% of the cost incurred by the OWNER for such change or modification subject to a maximum of the total lumpsum fee to be paid to the consultant by the owner.

10.3 The Consultant shall include in Purchase Orders and Contracts a requirement for guarantees from material /

works against defective material or poor workmanship, and also the Consultant shall assist OWNER in the enforcement of such guarantees.

10.4 Consultant shall provide specific guarantee for performance of the design, engineering, procurement,

inspection and construction supervision work undertaken by them. Consultant will be obliged to remedy any lack of performance of the guarantees and if for any reason the said Guaranteed Performance cannot be achieved, a financial liability will be levied by OWNER on Consultant. The financial liability which will be levied by the OWNER on Consultant in such case will be 10% of the cost incurred/required by owner to remedy of the lack of performance, subject to maximum of total lumpsum fee to be paid to the consultant by OWNER.

10.5 The time of completion of the project as specified in the contract is of essence. The time for

performance/completion of each individual contractors / suppliers will be duly covered along with applicable liability clause in each individual contracts / supplies and Consultant will maintain adequate follow-up/generation of documentation to monitor each individual contractor’s / supplier’s progress and assist OWNER in claiming the liability/damages as per each individual contracts / supplies.

10.6 EPCM CONSULTANT will be responsible for the overall performance of the entire system envisaged in the

project based on the Design Basis and FEED submitted by OWNER. EPCM CONSULTANT to do the commissioning of the system with the assistance of erection contractors and conduct the performance test run in order to achieve the performance guarantees.

10.7 Consultant’s above guarantees shall be valid up to a period of 12 (twelve) months from the date of

commissioning In this context, mechanical completion shall mean the completion of construction of the facilities in accordance with the project specifications and drawings as detailed below.

11.0 CONSEQUENTIAL DAMAGES

Neither party shall be responsible to the other for any penalty of consequential direct or indirect losses and damages such as loss of use of revenue, products or profits.


12.0 MECHANICAL COMPLETION

When the construction of the plant/unit/system of the PLANT has been completed, other than in minor respects which do not prevent commissioning, all civil engineering is completed, all equipment and machinery are installed and aligned, all piping and instrumentation work is completed, all electrical work is completed, all hydrostatic/pneumatic testing is done, safety valves & pressure relief valves set and checked, speed and direction of rotation of all prime movers is checked, relays are set and all scales, meters, measuring devices and recorders are calibrated and set, CONSULTANT shall notify OWNER in writing that the plant/unit/system is mechanically completed and ready for pre-commissioning activities. Upon written intimation as aforesaid, pre-commissioning/start up activities shall be commenced.

The date of readiness for pre-commissioning as aforesaid shall be deemed to be the date of mechanical completion of the PLANT (hereinafter called MECHANICAL COMPLETION) for the purpose of this CONTRACT.

After the mechanical completion of the plant, EPCM CONSULTANT will start the pre-commissioning /

commissioning activities with the assistance of execution contractors. . The procedures for commissioning / performance test run shall be prepared by EPCM CONSULTANT and get the approval of the OWNER. Performance test run shall be done as per established procedures / specifications.

13.0 CHANGES AND ADDITIONS IN CONSULTANT'S SCOPE OF WORK

OWNER shall have the right to request CONSULTANT in writing to make any changes, modifications, deletions and/or additions to Consultant’s scope of WORK.

CONSULTANT will be obliged to make such changes and/or additions contemplated by OWNER. Otherwise, CONSULTANT will work out the estimate of price and time adjustment on account of such changes, modifications, deletion and/or additions sought by OWNER and the same shall be mutually agreed

14.0 PATENTS

CONSULTANT shall indemnify and hold OWNER harmless from all costs, damages, and expenses arising out of any claim, action or suit brought against OWNER by third parties in respect of any infringement of any patent or registered design or any similar rights resulting from the use of any technical information, data or process or design belonging to or used by CONSULTANT and/ or furnished to OWNER.

15.0 INSURANCE

During the performance of WORK, CONSULTANT shall take out, carry and maintain insurance as applicable from those listed below:

Workman's compensation insurance, covering all employees of CONSULTANT for statutory benefits as

set out and required by local law in the area of operation or area in which CONSULTANT may become legally obliged to pay benefits for bodily injury or death.

Insurance against fire, theft, damages and loss of all property owned by CONSULTANT at the construction

site. Group Personnel Accident Insurance covering Consultant’s employees not otherwise already covered under

Para mentioned 2 above, operating from the site as per Consultant’s established practices. Insurance covering cash in transit/cash in safe/fidelity for all cash transactions performed by

CONSULTANT.


Automobile liability insurance covering all vehicles owned by CONSULTANT at the PLANT site in accordance with the Motor Vehicles Act.

16.0 INDEMNITY Consultant’s shall hold harmless and indemnify the OWNER, against any claims or liability because of per-

sonal injury including death of any employee, its servants or agent, if any, and arising out of or in consequence of the performance of this CONTRACT.

OWNER shall not be responsible for any loss or damage to property of any kind belonging to Consultant’s

or its employees, servants or agents. 17.0 GOVERNING LAW AND JURISDICTION This CONTRACT shall be governed by and construed according to the laws in force in India. The parties

hereto hereby agree to submit to the jurisdiction of the Courts situated at Mumbai for the purposes of actions and proceedings arising out of CONTRACT and the Courts at Mumbai only have the jurisdiction to hear and decide such actions and proceedings.

18.0 CURRENCIES OF PAYMENT

Payment to the Consultant shall be made in currency(s) in which the Contract price has been indicated limited to the amounts mentioned against each currency. The part of contract price the consultant envisages to spend in India shall be indicated and such payments shall be made to the Consultant / their Indian Associates in Indian Rupees. All cost figures shall be quoted in numerals as well as words. For Indian Consultants, the payment will be made only in Indian Rupees.

19.0 PARTICIPATION IN CONTRACTS FOR PROJECT EXECUTION:

The Consultant or any of its affiliates/associates or joint venture companies of the consultant will be disqualified/not allowed from subsequently providing goods or works or services related to the initial assignment for the same project. The bidder should indicate its affiliates/associates/joint venture companies in the bid document.

The bidder should submit a declaration in confirmation of this clause. 20.0 INCOME TAX CLEARANCE CERTIFICATE:

Attested copy of the latest Income Tax Clearance (ITC) Certificate in the Performa prescribed by the Government of India or concerned Bidders Country’s Government should accompany the bid. The ITC Certificate should be in the name of the firm/individual quoting for the job. In the absence of the above ITC Certificate, Bidder may not be awarded work tendered for, in the light of Government of India’s directive/instructions.

21.0 PERMITS & APPROVALS REQUIRED FOR FOREIGN EXPATRIATES:

CONSULTANT shall obtain on their own and at their cost the necessary permits and approvals for foreign expatriates to work in India, if deemed necessary.

22.0 INTERACTION WITH OTHER AGENCIES:

The bidders shall in the course of the work may be required to interact with State/Central Government Departments/Agencies like Ministry of Petroleum & Natural Gas, Government of India; Ministry of Environment & Forests, Central Pollution Control Board, AP State Pollution Control Board, Ministry of Surface Transport, Local Bodies, Telecom Departments, Port Authorities, Navy, Factories & Boilers,


Controller of Explosives, District Authorities, Chief Fire Officer, GOI (Ministry of Home Affairs) etc. for obtaining various clearances for the project. The Consultant has also to inter-act with other consultants for the project, technology suppliers, individual Contractors / Suppliers for the project and all expenses in connection with such inter-actions with agencies stated above and the costs associated with stay, travel, accommodation etc. shall be included in quoted lump sum price.

23.0 ASSISTANCE DURING LEGAL DISPUTES:

The consultant shall render all technical/commercial assistance including preparation of necessary documentation, clarification etc. required to be furnished for any disputes/arbitrations with the contractors/agencies engaged for this project. The period of this assistance required shall extend for 18 months from forwarding of the respective final bills for the contract to HPCL and no extra cost will be admissible for this.

24.0 STATUTORY APPROVALS:

The Statutory Approvals required for the Construction activities shall be in the scope of respective execution Contractors. Consultant has to list out and advise owner all the statutory approvals required for the Project execution, completion and Operation well in advance and provide all necessary assistance for obtaining the Statutory Approvals for the project facilities not included in the scope of individual contractors and also assist owner in obtaining such approvals. For layout and plot plan approval from Chief controller of explosives, EPCM CONSULTANT has to make necessary drawings and also assist and accompany owner for visit to Nagpur as required.

25.0 POSTING OF CONSULTANT'S PERSONNEL TO MAJOR CONTRACTOR'S OFFICE:

During the Performance of the job, the Consultant will have to undertake travel (s) to the office(s) of contractors / suppliers works / offices who may be located in any part of the world, and will have to post the required number of personnel in the respective offices for close coordination, monitoring, expediting/follow up, review of packages, design review, drawing approval etc. All costs associated with such travel(s), stay, etc., shall be included in the lump sum quoted fee. The lump sum fee quoted should include all necessary charges including salaries, food, accommodation, travel, local transportation, allowances etc; on this account for postings within India.

For such travel/postings outside India, the lump sum price shall include a provision for 15 numbers of travels outside India inclusive of all charges as mentioned above. The consultant has to obtain prior permission from owner before undertaking such travels. Any number of travels outside India in excess of the 15 numbers, shall be at per diem rates plus actual for Inspection. Similarly in case the travels are less than 15, reduction shall be made based on the average expenditure incurred for the travels already carried out.

26.0 INSPECTION OF CRITICAL EQUIPMENT:

The inspection of critical equipment at vendor's/sub-vendor's shop in the case of major contracts are in the scope of respective Contractors for which these contractors will be asked to conduct suitable third party inspection by accredited agencies. However, the EPCM CONSULTANT also has to conduct separate inspection of the critical equipment for the project that is identified during Front End Engineering Phase . The inspection shall be conducted in the following categories. Category A : Phase wise and final inspection by respective contractor/3rd party. Phase wise and final

inspection by consultant. Category B: Phase wise and final inspection by respective Contractor/3rd party. Final inspection

and/or document review by consultant.


Category C: Complete inspection with document review by respective Contractor/3rd party and no involvement by consultant.

The consultant should include all the costs for undertaking such inspections at vendor’s/sub-vendor’s shop located in India in the total lumpsum price to be quoted. However, for those inspections to be carried out by the consultant outside India, the consultant shall be paid per diem charges, accommodation charges and charges for to and fro air ticket (economy class) from the office of the consultant to vendor’s/sub vendor’s works on production of documentary proof. The consultant has to obtain prior permission from owner before undertaking such travels and the consultant will not be reimbursed any other charges/fees related to such inspection. The bidders are requested to indicate the per diem charges applicable for undertaking such inspections for reimbursement by Owner. For the purpose of evaluation of this offer, 60 man days will be considered for undertaking such inspections and also the bidders are requested to quote per diem charges accordingly. A suitable inspection methodology is to be evolved in consultation with major Contractors for ensuring the quality.

The owner reserves the right to inspect the items at any Phase which shall be indicated in the inspection methodology and the same to be covered as a part of purchase order condition to be issued by major Contractors.

27.0 OFFICE ACCOMMODATION FOR OWNER'S STAFF:

In order to have close inter-action in the day-to-day activities, fully furnished office accommodation shall be provided to a maximum of two owner’s staff in consultant’s office where the design engineering/procurement activities are performed for a period of 18 months.

The cost of such office accommodation shall be included in the lumpsum price quoted and the charges for external telephone communication and fax shall be reimbursed to the consultant at actual by owner.

28.0 EPCM’ S OFFICE AT HPCL / SITE

EPCM CONSULTANT shall post adequate number of personnel at job area to supervise construction work there and also for effective supervision of cross country /off-shore and SPM jobs. All costs associated with such expenses including, travel(s), stay, accommodation etc. shall; be included in the lumpsum quoted fee. Similarly for visit to SPM and Offshore pipeline job supervision, the expense shall be borne by EPCM.

Foreign consultants and their associates shall set up their office or make arrangements to station their engineers/officials in India, preferably at Visakhapatnam for effective Co-ordination / design / engineering / construction super vision and other project management activities.

29.0 COMPLIANCE TO STANDARDS

The engineering specifications prepared by EPCM CONSULTANT shall confirm to latest applicable International standards, regulations, codes, guidelines and shall be applicable for smooth operations of the facilities over its designed life. Further compliance to local and national acts, rules, standards, codes, OISD guidelines, OCIMF, ABS etc. shall be ensured beside good engineering practices. The Offshore equipments/facilities shall be certified/classified as per international /Port requirements.


30.0 RESPONSIBILITY OF THE OWNER

All the payments to Suppliers / Contractors shall be made by HPCL for the services to be performed by Suppliers / Contractors and the EPCM CONSULTANT will be paid for the services to be performed under their scope as defined in the tender document. The following shall be the responsibilities of the owner in connection with the performance of the job by EPCM CONSULTANT :

a) Make available un-encumbered land required for construction of facilities, development of infrastructure, etc.

a) Obtain, as and when required, all necessary statutory approval/ clearance from Central/State Governments and other regulatory bodies, licenses, permits for cement, steel, etc. required in connection with design, purchase and import of materials, construction, erection and operation of the facilities. EPCM CONSULTANT will render technical assistance to HPCL including preparation of necessary documents and represent in discussions to obtain these license approvals, clearance, permits, etc.

b) Reinforcement Steel and cement procurement for execution of contracts if included in the contractor’s scope as free issue.

c) Arrange for Permanent Power supply from APSEB for the facilities and for Construction (if feasible within schedule)

d) Provide assistance to EPCM CONSULTANT in identification of all hook up points. e) Provide work permits, if required, so that work proceeds as per schedule and for working

round the clock as and when required, subject to the observations of security and safety regulations of HPCL.

f) Take over of the plant and facility after declaration of “ready for commissioning” by EPCM.

g) Arrange customs clearance for items directly procured and outside the scope of contractors.

h) Maintain adequate fund allocation, exercise cost control and make timely payment to all concerned.

i) All major contractors shall place direct orders on suppliers/ contractors and enter into contracts for various construction and other agencies for supply of equipment, materials and services as required for the construction of project facilities and meet all financial obligation towards this.

j) Pay fees and other charges as required for personnel and other statutory clearance of charges for third party inspection, if required specifically by HPCL or under any statutory provision all charges for vendors as required for satisfactory execution of erection and mechanical trial run.

k) Appoint and make liable throughout the tenure of the project representative duly authorized to act for and on behalf of HPCL with respect to project activities.

l) Carry out responsibilities as called for as Principal Employer.


SECTION J

PRICE SCHEDULE

Lump Sum Price

(In Rs) /Foreign Currency Sr.

No.

Description of Job / Activity Amount in

Rs/Foreign

Currency

(In Figures)

Amount in

Rs/Foreign

Currency

(In Words)

1 EPCM CONSULTANT services, as per the scope detailed in this ITB for SPM system at Visakhapatnam

*******

********

1.1 Phase-I price ******* *******

1.2 Phase-II price ******* *******

2 Per diem rate ******* ********

3 Risk analysis study ******* ******** This format shall be used for quoting the prices. Prices furnished anywhere else in the bid shall not be considered. All figures in the format shall be clearly entered, without any alterations in firm figures and qualifications; changes and deletions shall be initialed in each copy of the bid. Figures shall be repeated in words. (a) The above prices shall be inclusive of all applicable taxes and duties except Service tax, which if applicable,

shall be to HPCL account. (b) TDS as per applicable rates shall be deducted at source from all bills/payments. (c) Indian bidder to quote in INR & foreign bidder shall quote in their currency. (d) Foreign bidders to quote gross of withholding tax. HPCL shall provide receipt for the tax deducted. (e) The total job will be awarded in two separate phases namely Phase-I & Phase-II. Phase-I is mainly to carryout

activities to the extent to establish firm cost & schedule for the project and simultaneously utilize the phase-I activities in phase –II to optimize the completion schedule.

(f) After financial appraisal and subject to approval from competent authority for the project cost estimate submitted, Phase-II would be executed.

(g) Both phase – I & II will be executed by a single bidder. Only the work under Phase –I will be awarded initially to the bidder.

(h) Bidder to quote lumpsum fee / price for each phase (Phase-I & Phase –II) separately. The selection of the EPCM CONSULTANT will be based on the lowest technically acceptable bid price of Phase-I and Phase-II put together. If the quoted price by bidders is equal, the bidder who has quoted the lowest price for Phase-I will be awarded the total work.

(i) Per Diem Rate shall be applied solely at Owner’s option for changes in the Work and for resultant additions to or deletions from the fixed lump sum price. Such adjustments to compensation to Consultant may be determined by Owner in accordance with the Project schedule. Bidder shall insert the appropriate Per Diem Rate bearing in mind that the rates shall be all inclusive as defined above. Bidder to note that the per diem rate shall be taken into account while bid evaluation.


ATTACHMENT-I INTEGRITY PACT AGREEMENT No. _____ Dated ______ To, HINDUSTAN PETROLEUM CORPORATION LIMITED Sub : Purchase of Bidding Documents Ref. Tender no. HPCL and the Bidder agree that the Notice Inviting Tender (NIT) is an offer made on the condition that the bidder will sign the Integrity Pact and the Bid would be kept open in its original form without variation or modification for a period of (state the number of days from the last date for the receipt of tenders stated in the NIT) days AND THE MAKING OF THE BID SHALL BE REGARDED AS AN UNCONDITIONAL AND ABSOLUTE ACCEPTANCE of this condition of the NIT. They confirm acceptance and compliance with the Integrity Pact in letter and spirit. They further agree that the contract consisting of the above conditions of NIT as the offer and the submission of Bid as the Acceptance shall be separate and distinct from the contract which will come into existence when bid is finally accepted by HPCL. The consideration for this separate initial contract preceding the main contract is that HPCL is not agreeable to sell the NIT to the Bidder and to consider the bid to be made except on the condition that the bid shall be kept open for (so many ) days after the last date fixed for the receipt of the bids and the Bidder desires to make a bid on this condition and after entering into this separate initial contract with HPCL. HPCL promises to consider the bid on this condition and the Bidder agrees to keep the bid open for the required period. These reciprocal promises form the consideration for this separate initial contract between the parties. If Bidder fails to honour the above terms and conditions , HPCL shall have unqualified , absolute and unfettered right to encash / forfeit the bid security submitted in this behalf. Yours faithfully, Yours faithfully (BIDDER) (PURCHASER) (One copy of this agreement duly signed must be returned along with offer). ��


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Attachment-III

General Terms & Conditions Pertaining To Health, Safety & Environment

(ESSENTIAL REQUIREMENTS)

1.0 COMPLIANCE WITH STATUTORY REQUIREMENT

Consultants, contractors or other third parties in the refinery shall abide by

a. The safety regulation of the refinery as mentioned in the Fire & safety Regulations (Latest revision).

b. All requirements under The Factories Act 1948 and the rules framed there under in the State Factory Rules including all amendments thereto.

c. All requirements of Worker Compensation Act & ESIS Act including all amendments thereto.

d. Applicable Environment Regulation in force and also the systems and procedures in the refinery related to environment.

1. QUALIFICATION AND EXPERIENCE OF MANPOWER TO BE DEPLOYED.

a. Contractor shall deploy only experienced and qualified supervisors and workman,

b. Contractor skilled workmen like riggers, scaffolds, welders, fitters, crane operators, their specialized equipment operators like welding machine, power generators etc Must have sufficient past experience and skill on the relevant jobs. The electricians to be deployed must have valid Wireman License.

c. All workmen must be capable of following instructions and training.

2. HEALTH ASSURANCE/AGE

a. Contractors will ensure that a qualified (Minimum MBBS) medical practitioner registered with state Medical Council medically examined his workers including supervisors who would be deployed on the job. Only medically sound persons as certified by the medical practitioner would be allowed on the job. Workmen deployed on high risk job like working in confined space, working at height, working under water etc must also be certified as medically fit for such jobs.

b. The medical certificate older by more than a year will not be accepted.

c. Health assurance certificates submitted by the contractor would be periodically checked at random by the refinery Doctor.

d. Age: No one bellow 18 years or more than 58 years will be employed in the refinery.

3. NORMAL TIMINGS FOR WORK

a. The normal duty timings for contractor employees shall be between 08:00 Am and 04:15 PM.

b. Contractor employees would not be allowed to work on Sunday and Refinery Holiday.

c. Any deviation from above shall be with permission from Engineer-in-charge/HPCL representative.

4. TRAINING

a. Training in Fire & safety is mandatory for all contractors’ supervisors.

b. Training of Contractor supervisor

i. The supervisor in-charge of the contractor who has ultimate responsibility for their work in the refinery must undergo a one day comprehensive safety familiarization program.


ii. This program will be conducted by Fire & safety Dept. at the Fire Station Training Hall and the schedule shall be notified well in advance.

iii. On completion of the program a certificate of attendance will be issued to each participant who will be required for supervision of the Hot work.

iv. The Passing certificate issued to the supervisor will remain valid for one year.

c. Workers' Training

i. It is obligatory that contractor supervisor who is trained by Safety dept should conduct spot training for his workers.

ii. Additionally Contract workmen will have to undergo training on "Safety in Refinery" on the spot.

5. OBLIGATION TO FOLLOW WORK PERMIT SYSTEM

a. Do not carryout any work without valid work permit issued by authorized person in the refinery as per Work permit System.

b. Comply with all the Fire/Safety/Excavation/Radiography permit conditions specified in the permit and the clearance.

c. Display permit at site for checking by refinery officials whenever required.

6. REQUIREMENTS OF SUPERVISION

a. Contractor will not carryout any work without having supervisor at site. If it is required to work simultaneously in more than one location under the same contract, one supervisor must be put in each of the locations. If a supervisor has to leave his site for any reason, he must stop his activities for that period of time.

b. For hot work permit the supervisor must have valid Training Certificate from Refinery safety dept.

c. Contractor must provide at least one full time Safety Supervisor when the contractor has engaged manpower in excess of 50 in contract activities in the refinery. If the manpower is less than 50, the on-site safety coordination responsibilities shall be assumed by any one of the contractor's other supervisory staff. In both the cases, the contractor must specify in writing the name of such person to the Engineer-in-charge and Manager - Safety.

d. The contractors whose safety records are not satisfactory will be viewed seriously and necessary action (viz. cancellation of registration/contracts) shall be taken against him.

7. USE OF PERSONAL PROTECTIVE EQUIPMENT

a. Contractor's all supervisors and workmen must wear the following Personal Protective Equipments (PPE's) without which the permission to work will be denied. Basic PPE's should be provided by the contractor.

b. Basic requirements for all jobs.

i. Hard hat (Safety helmet)

ii. Safety Shoes / Gum Boots (civil work)

iii. Hand Gloves.

c. Specific Requirements as per Job requirements

i. Safety Belt as applicable

ii. Eye Protection Goggles

iii. Face & Body protection

d. The PPE's shall be of standard quality and BIS approved.

i. Other special operative equipments like "Breathing Apparatus Set, will be issued by HPCL.


8. FIRE EXTINGUISHER & FIRE HOSE

a. Contractor shall provide Fire Hoses with Nozzle & Fire Extinguishers of his own. If he is executing jobs in refinery, for which following specifications should be adhered to

b. Fire Hose : the fire hose should be 63mm/38mm diameter and minimum 15 Meter long, seamless canvass/synthetic fiber woven jacketed, rubberized fabric reinforced rubber lined hose bearing IS:636-1988 Type A. The fire hose should have Gun-metal instantaneous type 2 1/2 " Male & 2 ½" Female couplings bearing IS:903 mark. The couplings should be riveted & doubly wounded with heavy-duty copper wire to the hose at both ends.

c. Nozzle: The nozzle to be used with fire hose should be of "Branch Pipe, Universal" type as per IS:2871-1983. it should be provided with 2 ½" Female Instantaneous couplings as per IS:903 (as nozzle with male coupling will necessitate use of double female coupling)

d. Fire Extinguisher: The fire extinguisher should be of "10 Kg Capacity DCP Extinguisher" bearing IS Mark. It should upright operated and should be cartridge type.

9. HAZARD COMMUNICATION

a. In the event, any contractor employee spot a fire or any serious hazards in refinery premises, he shall dial Ext 6666, identify himself and report location of fire when fire station operator is on line. He shall wait until the fire message is repeated by the fire operator and location confirmed.

b. Pill box communication can also be used by contractor workmen.

c. The contractor must ensure that each one of his employees clearly understands this Fire Communication requirement, i.e. in case of fire siren is sounded they should assemble at designated location near FR Medical and south of FR Boiler House. This may be ensured by contractor while providing on the job training.

10. INJURY NOTIFICATION & INVESTIGATION

a. Report to HPCL supervisor on the job, any injury sustained by any of his employees or any near-miss or any hazardous/dangerous incident at his worksite within the refinery premises. Hiding any accident or near miss would be viewed as serious misconduct.

b. Arrange to provide First-Aid immediately to injured employee.

c. Keep and maintain proper records of all such incidents in respect of his personal/work site.

d. Submit to Engineer-in-charge a first Information Report within 4 Hours of incident.

e. Arrange to immediately investigate the incident and furnish within 24 Hours a written investigation report to refinery safety dept.

11. REQUIREMENT OF HOUSEKEEPING

Contractor must ensure highest standard of housekeeping in his areas of work on a day to day basis. All unsatisfactory housekeeping will earn negative rating, which will attract penal action like cancellation of registration/contract.

12. DISPLAY BOARDS AT SITE.

Contractor must provide and maintain in his work site, appropriate display board displaying information as per HPCL "Work Site Display Board" specification.

13. PARTICIPATION IN SAFETY ACTIVITIES

Contractor must attend all scheduled safety meetings as would be intimated to him by the Engineer-in-charge. Contractor also must ensure that all his employees participate in safety promotional activities organized by the refinery.


14. POLICE VERIFICATION

Contractor who engages laborer for his jobs in the refinery must submit Police Verification of antecedents of laborers engaged by him.

15. REQUIREMENT DURING SUBMISSION OF TENDER

Contractor must submit along his tender i. Compliance to all above special conditions ii. Complete work injury records per year for last three years and iii. Total man-hours worked per year for last three years. iv. Quotation must indicate the number of Supervisors and skilled or unskilled workers, which will

be deployed for the job from time to time during execution of the contract. v. The above information will be taken into view during tender evaluation.

Note 1. Every person other than HPCL employee or a casual visitor entering in the refinery would be

governed by above conditions. 2. The term supervisor would mean any person who oversees the works of a group of workmen.

All other persons will be considered as workmen. 3. Adherence to terms of contract will also be checked by Fire & Safety Dept personnel. Violation

of any of the above conditions of safety would attract penal actions including termination of contract/registration.

4. Meticulous adherence to these requirements would be checked by the engineer-in-charge during & on conclusion of the work and in a dossier of the contractor, this performance would be given adequate weight at the time of renewal of registration.


Attachment-IV

AGREED COMMERCIAL TERMS AND CONDITIONS

SrNo

TERMS AND CONDITIONS BIDDERS’ ACCEPTANCE (Yes/No)

1 Bid submission as per Tender i.e. in Single Phase Two bid system 2 Validity of the bid: 120 days from bid closing/extended bid closing

date, for order placement.

3 Firm and valid Offer during the validity period and till completion of

order/contract, without any escalation.

4 Net worth to be positive. Bidder to submit suitable document in

proof of the same for the preceding Financial year.

5 Bidder to quote their PAN Number

6 Currency of quote (INR)

7 Time Period as specified is acceptable.

8 Payment Terms: Payment schedule as detailed in this ITB is acceptable. All payments shall be made in line with conditions mentioned in General Terms and Conditions.

10 Price Quotation submitted as per Price schedule (Please mention Yes/No)

11 Bidder to Submit a signed/stamped copy of this document 13 Quoted the per diem charges 14 Bidder to furnish name of Contact person who will be responsible

for the subject tender along with his/her detailed address, contact phone numbers, fax numbers and e-mail address(s).

.

15 Bidder to declare that they have not been banned by any government or quasi government agency. If yes, the details to be given.

16 Bidder to note that Grievance Redressal mechanism is available for all such bidders participating in this tender. The details of the Grievance Redressal Mechanism are available on the Corporations’ website www.hindustanpetroleum.com

17 Integrity pact Signed Yes/No. 18 Remarks /Others, if any

PLS. MENTION ACCEPTED OR NOT ACCEPTED AS THE CASE MAY BE. However, Bidder may note that deviation may liable bid for rejection.


Attachment-V

FORM OF ACKNOWLEDGEMENT (To be typed on Bidder*s letterhead)

Date:_______________ Hindustan Petroleum Corporation Limited Central Engineering l, 6th Floor, Petroleum House, J. Tata Road, Mumbai – 400 020 Attention : Shri K M Govindan , DGM - Purchase

Dear Sir: ITB No. CE: A.* We acknowledge receipt of the above referred Invitation to Bid (ITB) Documents and confirm our intention to submit a Bid by the due date. We have performed a completeness check on the ITB Documents and confirm that all sections, documents and attachments are present and correct. We also confirm that we have read the Instructions to Bidders, and that we shall be bound by the provisions of this ITB, including, without limitation, the confidentiality provisions of the Instructions to Bidders. Please issue any future addenda or notices to: Name of Contact: ____________________ Position: ____________________ Address: ____________________ ____________________ Tel: _______________ ____________________ Fax: _______________ B.* We acknowledge receipt of the above referred Invitation to Bid Documents but regret to inform you that we do not intend to submit a Bid. The Invitation to Bid Documents is herewith returned intact. *Bidder is directed to type either statement “A” or “B” and to return this Form of Acknowledgement within ten (10) working days of receipt of the ITB Package Very truly yours, Signature: ____________________

Name: ____________________ Position: ____________________ Seal of the Company


Attachment-VI FORM OF BID

(To be typed On Bidder’s letterhead) Date:__________________

Hindustan Petroleum Corporation Limited Central Engineering , 6th Floor, Petroleum House, J. Tata Road, Mumbai – 400 020 Attention : Mr. K M Govindan , DGM-Purchase Dear Sirs: ITB No. CE: We, the Bidder, confirm having examined all the documentation comprising the above referred Invitation to Bid (alongwith Addenda) and hereby submit this Bid to provide EPCM CONSULTANT services together with the Attachments listed hereunder. All rates and prices shall remain firm and fixed through to completion of the Work and shall not be subject to escalation. We also confirm having satisfied ourselves as to the sufficiency of our Bid in ensuring strict compliance with the Scope of Work and all other documents, conditions and requirements forming an integral part of the Invitation to Bid and that Bid Addenda Notices numbers __ to __ inclusive have been received by us and taken into account in preparing this Bid. If this Bid is accepted by Owner, we undertake to commence the Work in accordance with the Contract to be executed with Owner, and that we will execute and complete the whole of the Work within the times stated in this Bid. In consideration of your supplying us with the ITB documents and, subject to the provisions thereof, your agreeing to examine and consider this Bid, we undertake: (a) to keep this Bid open for acceptance without unilaterally varying or amending its terms or

provisions for the period of 120 days from the closing date of bid submission; and (b) to hold in confidence all documents and information supplied to us at any time by Owner in

connection with this Bid or with the Work, and without your prior, written authority, not to publish or otherwise disclose the same.


We understand that Owner shall not be considered to have accepted this Bid, or otherwise be subject to any contractual relationship with us arising out of this ITB or Bid, unless and until execution by both parties of the Contract. We also understand that Owner is not bound to accept the lowest or any other Bid it may receive. We certify that this is a bona fide proposal, intended to be competitive. We also certify that we have not and shall not undertake any of the following acts prior to the execution by both parties of the Contract: a) Communicate to any person or persons, other than the party calling for this Bid, the

amount or approximate amount of the Bid or any part thereof, except where necessary and in confidence, to enable the preparation of a complete Bid.

b) Enter into an agreement or arrangement with any other person or persons, that such

person or persons will refrain from bidding, or as to the amount of the Bid such person will submit.

c) Offer, pay, give or agree to pay any sum of money or valuable consideration directly or

indirectly to any person or persons for doing, agreeing to do or having done or causing, agreeing to cause, or having caused to be done, any act described above.

In this respect, "any person or persons" refers to any body or association, corporate or unincorporated, and any "agreement or arrangement" included in any such transaction, formal or informal and whether legally binding or not. We have each, individually and corporately, made diligent and formal inquiry of appropriate members of the bidder company or companies, and if necessary of their independent auditors, and we and they know of no matter which a reasonably prudent person in this industry, familiar with Bidder, would conclude may cause a substantial problem in completing the Work provided and set forth in this Bid and any resulting Contract. This Bid shall be governed by and construed in all respects according to the laws of India. Signed: Name (typed): Position: Date:

I, (name of Company Secretary or equivalent) , (designation) of (name of Bidder) attest that the foregoing persons (names of signatories) are known to me, are officers of (name of Bidder) are authorized to enter into binding obligations and to have affixed their signatures to this Bid.


Signed: Date:

Attachment-VII

FORMATS

FORMAT FOR BANK GUARANTEE FOR ADVANCES (on non-judicial stamp paper of appropriate value) To, Hindustan Petroleum Corporation Ltd., (Address as applicable) In CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED, a Government of India Company registered under the Companies Act 1956, having its registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called "the Corporation" which expression shall include its successors in business and assigns) having placed an order on Messrs ___________________ a partnership firm/sole proprietor business/ a company registered under the Companies Act, 1956 having its office at _______________________ (hereinafter called "the Supplier" which expression shall include its successors and assigns) vide Order No. ____________ dated _________ (hereinafter called "the Order" which expression shall include any amendments/alterations thereto as issued by "the Corporation") for the supply of goods/to the execution of Service for "the Corporation" and having agreed to pay the supplier as and by way of advance upto a sum of Rs. _________ (Rupees ____________________________________ only ) being _____ % of the value of the order in terms of "the Order" on production of an acceptable Bank Guarantee for an amount of Rs. ____________ (Rupees __________________________________ only) 1. We, ____________________ Bank having office at _________________ (hereafter referred to as "the Bank") do at the request and on behalf of "the Supplier's" hereby agree to pay "the Corporation" without any demur on first demand an amount not exceeding Rs. _________ (Rs. ______________________ only) against any loss or damage, costs, charges and expenses caused to or suffered or would be caused to or suffered by "the Corporation" by reason of any breach on the part of "the Supplier" of any of the terms and conditions of the said order. 2. We, _______________ Bank further agree that "the Corporation" shall be sole judge whether the said "Supplier" has committed breach of any of the terms and conditions of "the Order" and the extent of loss, damage, cost charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defenses to which we as guarantors and/or "the Supplier" may be entitled to. 3. We, ___________________ Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank's" liability to pay and amount demanded and "the Bank" undertake to pay "the Corporation" the amount so demanded on first demand and without any demur notwithstanding any dispute raised by "the Supplier" or any suit or other legal proceedings including arbitration pending before any court tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional. (We __________________ Bank further agree that the guarantee herein contained shall remain in full force and continue to have full effect so long as the said amount remains unadjusted, provided, however, the value of the guarantee shall progressively reduce upon any adjustments being made by "the Corporation" against the said advance and "the Corporation" rights shall extend


only to the value of the unadjusted amount. 4. We, __________________ Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said "order"/or to extend time of performance by "the Supplier" from time to time or to postpone for any time or from time to time any of the powers exercisable by "the Corporation" against "the Supplier" and to forbear to enforce any of the terms and conditions relating to "the Order" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Supplier" or for any forbearance, act or omission on "the Supplier" or by any such matter or things whatsoever which under the law relating to sureties would be for this provisions have the effect of relieving us. 5. Not withstanding anything contained herein above : i) Our liability under this guarantee shall not exceed Rs.......... ii) This Bank Guarantee shall be valid upto and including .......; and iii) We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of 30 days from the date of expiry of this guarantee 6. We, ________________ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in writing. 7. We, ____________________ Bank lastly agree that "the Bank" liability under this guarantee shall not be affected by any change in the constitution of "the Supplier". 8. We, _________________ Bank has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the agreement/contract or MOU entered into between"the supplier" and "the Bank" in this regard. IN WITNESS WHEREOF the Bank has executed this document on this ________________ day of ___________________ ____________________________ (FOR _________ BANK) (by its constituted attorney) (signature of a person authorized to sign on behalf of "the Bank")


FORMAT FOR COMPOSITE BANK GUARANTEE FOR MOBILISATION ADVANCE, SECURITY DEPOSIT/RETENTION MONEY/PERFORMANCE GUARANTEE (On Non-Judicial stamp paper of appropriate value) TO : Hindustan Petroleum Corporation Limited (Address as applicable) IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED, a Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Bombay-20 (hereinafter called "The Corporation" (which expression shall include its successor in business and assigns) having placed an order on Messers ............................ a partnership firm/sole proprietor business/a company registered under the Companies Act, 1956 having its office at .............. (hereinafter called "the supplier" (which expression shall include executors, administrators and assigns) vide order No....................... dated.............. (hereinafter called "the order" which expression shall include any amendments/alterations to "the order" issued by "the Corporation") for the supply of goods to/execution of services for "the Corporation" and "the Corporation" having agreed : a) not to insist upon immediate payment of Security deposit for the fulfillment and performance of the said order b) to pay "the supplier" as and by way of advance upto a sum of Rupees__________ (Rupees _____________________________ only) being ____% of the value of "the order"; c) that "the supplier" shall furnish a security for the performance of "the supplier's" obligations and/or discharge of "the supplier's" liability in connection with the said "order"; and "the Corporation" having agreed with "the supplier" to accept a composite Bank Guarantee for the mobilisation advance, security deposit, retention money and performance guarantee. We, .................................................... Bank having office at ............................................ (hereinafter referred to as "the Bank" which expression shall includes its successors and assigns) at the request and on behalf of "the supplier" hereby agree to pay to "the Corporation"without any demur on first demand an amount not exceeding Rs........... (Rupees.............................only) against any loss or damage, costs, charges and expenses caused to or suffered by "the Corporation" by reason of non performance and fulfillment or for any breach on the part of "the supplier" of any of the terms and conditions of the said "order". 2. We, ............................. Bank further agree that "the Corporation" shall be sole judge whether the said "Supplier" has failed to perform or fulfill the said "order" in terms thereof or committed breach of any terms and conditions of "the order" and the extent of loss, damage,


cost, charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in the favour of "the Corporation" all the rights and defenses to which we as guarantors and/or "the Supplier" may be entitled to. 3. We, ................................. Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's liability to pay and the amount demanded and "the Bank" undertake to pay "the Corporation" the amount so demanded on first demand and without any demur notwithstanding any dispute raised by "the Supplier" or any suit or other legal proceedings including arbitration pending before any court, tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional. 4. We, .................................. Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said "order"/or to extend time of performance by "the Supplier" from time to time or to postpone for any time to time any of the powers exercisable by "the Corporation" against "the Supplier" and to forbear to enforce any of the terms and conditions relating to "the order" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Supplier" or for any forbearance, act or omission on the part of "the Corporation" or any indulgence by "the Corporation" to "the Supplier" or by any such matter or things whatsoever which under the law relating to sureties would but for this provision have the effect of relieving us. 5. However, it has been agreed between "the Supplier" and "the Corporation" that there shall be only one Composite Bank Guarantee for both the advance and security deposit performance guarantee/Retention Money @ of ____% valid till the end of the defects liability period as per the terms of the P.O. No. _______________ dated ______________ and that in proportion with the recovery of advance @ ______% per bill the same amount/value automatically stands credited to the defects liability account/security deposit or retention money as the case may be and will continue to be credited/treated till the entire advance of Rs._______________________ is fully recovered from the running bills and from the date of full recovery of the advance of Rs.__________________ this guarantee automatically, shall stand valid towards the ____% retention money/defects liability, fully valid in all respects unto a further period of six months, as per the Purchase Order of "the Corporation". 6. Not withstanding anything contained herein above : i) Our liability under this guarantee shall not exceed Rs.......... ii) This Bank Guarantee shall be valid upto and including .......; and iii) We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of


30 days from the date of expiry of this guarantee. 7. We, ........................................ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in writing. 8. We, ......................................... Bank lastly agree that "the Bank’s liability under this guarantee shall not be affected by any change in the constitution of "the Supplier". 9. "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the Agreement/Contract or MOU entered into between "the Supplier" and "the Bank" in this regard. IN WITNESS WHEREOF the Bank has executed this document on this ............................. day of ........................... For ........................ Bank (by its constituted attorney) (Signature of a person authorized to sign on behalf of "the Bank")*


FORMAT FOR INDEMNITY BOND (TO BE NOTORISED AND ON STAMP PAPER OF APPROPRIATE VALUE) TO, HINDUSTAN PETROLEUM CORPN. LTD. (Address as applicable) Dear Sirs, WHEREAS Hindustan Petroleum Corporation Limited, a Government of India Company, registered under the Companies Act, 1956, having its Registered Office at 17, Jamshedji Tata Road, Bombay - 400020 (hereinafter called "the Indemnified" which expression shall include its successors and assigns) has awarded to M/s. .......................................... a Partnership Firm/Sole Proprietor Business/a company having its Registered Office at ....................................................... (hereinafter called "the Indemnifier", which expression shall include its successors and assigns) a contract for conditions set out, inter-alia, in "the Indemnified" 's Purchase Order No. ............................. dated .................. (hereinafter referred to as "The Said Contract") to "the Indemnifier". AND WHEREAS "the Indemnified" has agreed to supply to "the Indemnifier" raw material/components to the value of Rs......... (Rupees .............................................. only) for incorporation in fabrication by "the Indemnifier" in terms of "the said contract", the components/raw material to be supplied by "the Indemnified" to "the Indemnifier" for the said fabrication, (hereinafter, for the sake of brevity, referred to as "the said material") and pending fabrication and delivery at job-site of the completed fabricated work(s) incorporating "the said material" and accounting for "the said material" shall be under the sole custody and charge of "the Indemnifier" and shall be kept, stored, altered, worked upon and/or fabricated at the sole risk and expenses of "the Indemnifier" ; As a Pre-condition to the supply of "the said material" by "the Indemnified" to "the Indemnifier", the Indemnified" has required "the Indemnifier" to furnish to "the Indemnified" security in the manner and upon terms and conditions hereinafter indicated : NOW THEREFORE, in consideration of the premises aforesaid "the Indemnifier" Shri ..................................., Shri ............................ all directors/partners/sole proprietor of "the Indemnifier" in consideration of aforesaid "contract" hereby irrevocably and unconditionally and jointly and severally undertake to indemnify and always keep "the Indemnified" from and against all loss, damage and destruction (inclusive but not limited to any or all loss or damage or destruction to or of "the said material" or any item or part thereof) by theft, fire, flood, storm, tempest, lightning, explosion, storage, chemical or physical action or reaction, bending, wrapping, exposure,


rusting, faulty workmanship, faulty fabrication or faulty method of technique of fabrication, riot, civil commotion or other act of omission or commission whatsoever within or beyond the control of "the Indemnifier", misuse and misappropriation by "the Indemnifier's" servants and/or agents whatsoever to, of or in "the said material" or any part or item thereof between the date that the same or relative part or item thereof was supplied to "the Indemnifier" upto and until the return to "the Indemnified" on due dates of "the said material" or relative part or item thereof or completed fabricated work(s) incorporating the said material AND jointly and severally undertake to pay to "the Indemnified" forthwith on first demand in writing without protest or demur the value of "the said material" or item part thereof lost, damaged, destroyed, misused and/or misappropriated, as the case may be, inclusive of "the Indemnified" 's cost and expenses (inclusive but not limited to handling, transportation, cartage, insurance, freight, packing and inspection costs and/or expenses) as specified in the said demand. AND "the Indemnifier" hereby agrees with "the Indemnified" that : 1. This Indemnity shall remain valid and irrevocable until the settlement of all claims of "the Indemnified" arising hereunder : 2. This Indemnity shall be in addition to any other Indemnity, Guarantee or Security whatsoever that "the Indemnified" may now or any time anywise have in relation to "the Indemnifier" 's obligations/liabilities under and/or in connection with the said contract inclusive of "the said material" and "the Indemnified" shall have full authority to take recourse to or enforce this security in preference to the other security (ies) at its sole discretion, and no failure on the part of "the Indemnified" in enforcing or requiring enforcement of any other security shall have the effect of releasing "the Indemnifier" from its full liability hereunder : 3. "The Indemnified" shall be at liberty without reference to "the Indemnifier" and without affecting the full liability of "the Indemnifier" hereunder to take any other such security in respect of "the Indemnifier" 's obligations and/or liabilities under or in connection with the "said contract" inclusive of "the said material" and to vary the terms vis-avis "the Indemnifier" of "the said contract" or to grant time and/or indulgence to "the Indemnifier" or to reduce or to increase or otherwise vary the prices or the total contract value or the quantity, quality, description or value of the said material or to release or to forbear from endorsement of all or any of the obligations of "the Indemnifier" under the said contract (inclusive of anything in respect of "the said material") and/or the remedies of "the Indemnified" under any other security(s) now or hereinafter held by "the Indemnified" and no such dealing(s), variations(s), reduction(s), increase(s) or other indulgence(s) or arrangement(s) with "the Indemnifier" or release or forbearance whatsoever shall have the effect of releasing "the Indemnifier" from their full liability to "the Indemnified" hereunder or of anywise prejudicing rights of "the Indemnified" against "the Indemnifier" and "the Indemnifier" hereby waives all rights, if any,


at any time, inconsistent with the terms of this Indemnity. 4. This Indemnity shall not be determined or affected by the liquidation or winding up, dissolution, or change of constitution or insolvency of "the Indemnifier" and the obligations of "the Indemnifier" in terms hereof shall not be anywise affected or suspended by reason of any dispute or disputes having been raised by "the Indemnifier" (whether now pending before any Arbitrator, Officer, Tribunal or Court) or any denial of liability by "the Indemnifier" or any other order or communication whatsoever by "the Indemnifier" stopping or preventing or purporting to stop or prevent any payment by "the Indemnifier" to "the Indemnified" in terms hereof : 5. The mere statement made by or on behalf of "the Indemnified" in any notice or demand or other writing addressed to "the Indemnifier" as to any of "the said material" or item or part thereof supplied to "the Indemnifier" having been lost, damaged, destroyed, misused or misappropriated while in the custody of "the Indemnifier" before or after completion of the completed fabricated work(s) incorporating "the said material" and delivery at job site thereof shall as between "the Indemnifier" and "the Indemnified" be conclusive of the factor of "the said material" or item or part thereof having been supplied to "the Indemnifier" and/or the loss, damage, destruction, misuse or misappropriation thereof, as the case may be, while in the custody of "the Indemnifier" and/or prior to the completion of the completed fabricated work(s) and delivery to job site thereof without necessity on the part of "the Indemnified" to produce any documentary proof or other evidence whatsoever in support of this; 6. The amount stated in any notice of demand addressed by "the Indemnified" to "the Indemnifier" as the value of any of "the said material", lost, damaged, destroyed or misused or misappropriated, inclusive relative to the cost and expenses incurred by "the Indemnified" in connection therewith shall as between "the Indemnifier" and "the Indemnified" be conclusive of the value of such "said material" and the said costs and expenses as also of the amount liable to be paid by "the Indemnifier" to "the Indemnified" in terms and for the purpose of, without necessity for "the Indemnified" to produce any voucher, bill or other documentation or evidence whatsoever in support thereof. In witness whereof "the Indemnifier" have hereunto set and subscribed his hand this day and year first hereinabove written in the presence of witnesses. Yours faithfully, 1) 2) 3) WITNESSES 1. 2.