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a) The unit rates and prices shall be quoted by the bidder entirely in Indian Rupees and the rates quoted
shall be deemed to include price escalation upto completion of the work, duties, taxes , freight etc.
unless otherwise, specified. The bidders are required to visit the site of work before quoting of rates.
b) If the bidder does not quote rate for any item of the price bid, the item shall be deemed to be
the part of the overall contract value and no rate shall be allowed for such item.
c) In case bid of the lowest bidder is found unbalanced i.e. 15% below than advertised cost, the bidder
shall have to produce additional performance security of 3% of contract in shape of CDR/FDR
before issuance of contract allotment.
2. Terms of Payment
On completion of all the contractual obligations and subject to the availability of funds, the Contractor
shall be paid as per details given hereunder:
a. Up to but not more than 60% on pro rata basis of the total contract value against supply of the
material/ equipment at site
b. 20% of the Contract Value payable after complete Installation and Testing of equipments at site.
b. 10 % of the Contract Value payable after Successful Commissioning of equipments at site.
c. Balance 10% of the Contract Value payable along with Security Deposit (Earnest Money
Deposit) after satisfactory performance of the system for one full year from the date of
successful commissioning. However the balance payment (10%) may be released against an
irrevocable bank guarantee for the same amount valid for a period of one year.
3. Performance guarantee:
The firm shall be responsible to replace free of cost including transportation and insurance expenses to the
Deptt. upto destination of supplies as a whole or any part of supplies which under normal proper use may
prove defective in material or workmanship and not conforming to relevant specifications immediately not
later than (15) Fifteen days from the date of receipt of such information from the department.
The above provision shall also apply to the material replaced / repaired by the firm under this clause in case
the same is again found to be defective.
The performance guarantee shall be for a one complete year commencing upon the satisfactory completion
of the job, the final test at the site and the commissioning of the equipment. The firm’s liability shall be
limited to the replacement of parts, which may develop defect in working on account of defective material
quality or workmanship, free of charges. The Earnest Money Deposit (Security Deposit) of the firm along
with balance payment of 10% shall remain withheld till the expiry of the performance guarantee of one
4. Completion Period:
The contractor has to start the execution of work within a week’s time of handing over of site formally and
shall have to be complete the work in all respects within one (01) month from the date of the placement of
Letter Of Intent or the Work Order, whichever is earlier. In case the firm/contractor fails to start the
execution of work within the stipulated period as mentioned above, then he shall be liable to damages and
compensation which the department will suffer because of cancellation or revocation of the contract and
shall also be liable to pay the extra amount to be incurred by the department after execution of contract
through different agency.
5. Watch & Ward:
After having supplied the material, the firm shall be responsible for watch and ward of the equipment till the
machines are installed, tested & commissioned and handed over to the department. The department shall in
no way be responsible for any loss, damage of any kind till taken over by it.
It is the responsibility of the firm to deliver and install the equipments in sound condition at the destination.
For this purpose the firm may insure the material against all risks at its own cost during transit for full
delivery value of the material upto destination. The filling of claims if any and settlement thereof with
transport or insurance company shall be the responsibility of the firm. The Department shall make no extra
payment on this account. However, necessary information required in connection with making and settling
of such claims, if any, shall be provided by the consignee. All damages and or shortages during transit shall
be made good immediately on receipt of such information. In case of apparent damages and or shortages
the consignee shall obtain the loss damages certificate from the Transporters and send the same to the firm
within period of (30) days from the date of receipt of material. A certificate, on demand, shall be submitted
by the firm to the Deptt. with each bill to the effect that the material has been duly insured.
7. Civil, Suit / Legal Remedy:
All legal proceedings in connection with the tender /contract will be subject to the jurisdiction of Courts of
Srinagar City only.
8. Variation in quantities of items:
During execution of work at site the quantity of items of work can increase or decrease depending upon site
Unless otherwise specified all material shall comply in all respects with the requirements of BIS/Ashrae
10. Materials and Workmanship:
All the material should be of best class and quality and capable of satisfactory operation when exposed to
specified atmospheric conditions. The damages/cut out caused during execution of contract to the Hospital
Building shall be repaired by the firm at his own cost to the original glory.
11. Inspection and Testing:
a. All the material shall comply with the requirement of the tests specified in the Governing standards
and additional other tests as necessary.
b. Duplicate copies of the Manufacturer’s test certificates in case of various equipments shall be
submitted to the Executive Engineer, MH & CH Division, Srinagar as soon as tests, if any, are
c. The department may ask for CEIL/RITES inspection in case of radiators at manufacturers works/site
of work. The charges on account of such inspection shall be borne by the firm at the time of
inspection, which shall later be reimbursed to the firm on production of documentary proof.
d. In addition to above, the Department reserves the right to have any inspections or tests of
reasonable nature carried out on raw materials to ascertain if the same comply with the conditions
of the contract/ specifications.
12. Training of departmental staff:
The firm shall arrange at his own cost, training of two (02) departmental personnel in the operation and
maintenance of the equipment at site. This training shall be for duration of at least one week and shall
commence from the date of successful commissioning of the equipment or as may be mutually agreed upon.
The firm shall supply, free of cost to the Deptt. complete two (02) sets of equipment catalogue in case of radiators.
The firm shall make the delivery of these manuals to the Engineer-in-charge along with the supply of equipment.
14.Force Majeure clause:
If at any time during the execution of this order either party is unable to perform in whole or in part any
obligation under this order because of war, hostility, military operation of any kind, acts of public, enemy,
civil commotion, sabotage, strikes, lockouts, go-slow, fire, floods, epidemics, quarantine restrictions, acts of
nature and acts of Government(including but not restricted to prohibitions of exports and imports) then the
date of fulfillment of any obligation shall be postponed during the time for which such circumstances are
operative. Any waiver / extension of time in respect of the delivery of any installment or part thereof shall
not be deemed to be waiver / extension of time in respect of remaining deliveries. If duration of such
circumstances exceeds six months either party shall have right to claim eventual damage. The party which is
unable to fulfill its obligations under the present contract must immediately inform the other party on the
occurrence of termination of the circumstances preventing performance of contract. Certificate issued by the
Commerce in the country of the seller or buyer, as the case may be, shall be sufficient proof of the existence
of the above circumstances and their duration.
15. Correctness and completion of Equipment:
The equipment will be complete in every respect with mountings, fittings, fixtures and standard accessories
which are normally supplied even though not specifically mentioned in the specifications. The firm shall not
be eligible for additional payment in respect of such mountings, fittings, fixtures & special accessories, which
are needed for safe operation of the equipment. The firm shall be responsible for the completeness of the
equipment and for installation and efficient working of the same at the site.
16. Erection and Commissioning:
The firm shall depute at least one competent technical person to supervise the erection of equipment. The
charges on this account shall be included in the rates. The person shall be deputed as soon as equipment
reaches the site or till such date as mutually agreed upon.
17. Labour Laws:
The successful firm shall observe and strictly adhere to all prevailing labour laws in J&K inclusive of Contract
Labour (Abolition & Regulation) Act of 1970 and other safety regulations & as amended from time to time.
If at any time, any dispute or difference whatsoever shall arise between the contractor and the government
in relation to or in connection with the contract, either of the parties may give each other notice in writing of
such a dispute or difference and the same shall be referred to the Arbitration of a person not less than the
rank of in_service or retired Chief Engineer, to be mutually agreed upon or failing such agreement within 30
days of such notice, of some person appointed by the government of Jammu and Kashmir. The submission
shall be deemed to be a submission to and all rules framed there under or any statutory modifications
thereof shall apply to such proceedings. The arbitration shall be within jurisdiction of the J&K State only.
In case, the firm fails, declines, neglects or delays the contract or in the event of any damage occurring or
being caused by the firm or in the event of any default or failure by the firm in complying with any of the
terms and conditions of the contract, the Government shall without prejudice to any other remedy available
to it under law in force in the state shall besides forfeiture of Security Deposit:
a. Terminate the contract after (25) twenty-five days notice and/or
b. Recover the amount of losses caused by damages failure or default, as may be determined by the
c. Impose a penalty upto a maximum limit of 10% (ten percent) of the value of contract. And/or
d. Black list the firm.
Successful tenderer shall draw an agreement with the department within a fortnight from the date of
of formal allotment order.
21. All other terms and conditions are same as laid down in PWD form No. 25 and 33.
22. Fundamental breach of contract will include:-
a. Continuous stoppage of Work for a period of 30 days without authorization of Engineer in-charge.
b. Contractor is declared bankrupt.
c. Any evidence of involvement of contractor in corrupt practices.
d. Contractor delays the completion of work beyond stipulated time of completion.
e. Pursuant to the process of termination of defaulted contract, the employer reserves the right to invite
fresh tender for the balance work at the risk and cost of defaulter contractor.
f. If In case contractor failed to start /complete the work, within the stipulated time period, his
CDR/Earnest Money shall be forfeited after termination of the contract. Besides, defaulting contractor
shall be debarred from taking works in Mechanical Engineering Department at least for one year.
g. Major Labour Laws applicable to establishment engaged in building and other construction
a) Workmen compensation act 1923.
b) Payment of Gratuity Act 1972.
c) Employees P.F. and Miscellaneous Provision Act 1952.
d) Maternity Benefits Act 1951.
e) Contract Labour (Regulation & Abolition) Act 1970.
f) Minimum Wages Act 1948.
g) Payment of Wages Act 1936.
h) Equal remuneration Act 1979.
i) Payment of bonus Act 1965.
j) Industrial disputes Act 1947.
k) Industrial employment standing orders Act 1946.
l) Trade Union Act 1926.
m) Child Labour (Prohibition & Regulation) Act 1986.
n) Inter State Migrant workmen's (Regulation of employment & Conditions of service) Act 1979.
o) The Building and other Construction workers (Regulation of employment and Condition of service) Act
1996 and the Census Act of 1996.
p) Factories Act 1948.
q) Compliance with Labour Regulation Laws of J&K State.
23. Laws Governing the Contract:-The contract shall be governed by Laws of the land.
24. Court’s Jurisdiction:-In case of any disputes/differences between contractor and Department the
jurisdiction shall be within J&K Courts at Srinagar.
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