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BIL INFRATECH LTD

Annexure III

SPECIAL CONDITIONS OF CONTRACT


1.0 DEFINITION:

1) Client/Owner/Customer - SPIU, NCRMP II, DISASTER MANAGEMENT


DEPARTMENT, GOVT. OF WEST BENGAL
2) Purchaser/Employer - BIL INFRATECH LTD

3) Contractor -

1) SCOPE OF WORK:
Piling Works for CONSTRUCTION OF MULTIPURPOSE CYCLONE SHELTERS UNDER
NATIONAL CYCLONE RISK MITIGATION PROJECT (NCRMP-11) as detailed in the BILL of
QUANTITY / SCHEDULE OF RATES furnished in Annexure-I. The major scope includes civil works
for CONSTRUCTION OF MULTIPURPOSE CYCLONE SHELTERS. The work shall be carried
out strictly as per specifications and terms & conditions laid down by SPIU, NCRMP II, and
DISASTER MANAGEMENT DEPARTMENT and binding on BILIL, to the entire satisfaction
of purchaser / owner. The Contractors Rates are inclusive of all taxes and duties including service
tax (as applicable), and shall also include levies, royalty/ cess etc complete.

The contractor have to arrange for testing of samples, test pieces as per BILIL/ SPIU, NCRMP II,
DISASTER MANAGEMENT DEPARTMENTs approved Field Quality Plan, standard norms
at your own cost. The contractor shall provide necessary manpower for the same.

The Contractor shall carry out the following work at his own cost:

i. Cleaning of the construction area and constructions of approach road and its subsequent
maintenance.
ii. Construction of temporary drainage, all temporary works and construction of labour
hutment/quarters, Site Office, go-down, stores, etc. as required by the contractor for
performing the work. Contractor shall also make arrangement for transportation of labourers
from hutment to work site.

iii. Necessary arrangement for drawing water and electricity.


iv. Loading, unloading, storage and handling of all materials required for the purpose of
construction whether supplied by the purchaser or by the contractor himself and carriage of
materials from clients/purchasers go-down/ yard/ site to the contractors go-down/
construction site.
v. The contactor shall dismantle and remove the staging and other temporary facilities like
stores, offices, labour camp etc. on completion of work, clear and clean the site where such
temporary facilities were built and restored the same to original condition.

vi. Setting up toilets/sheds/restroom etc for labourers as per prevailing rules.

vii. The Contractor shall be responsible for proper housekeeping area illumination & area
cleaning of the work to ensure safe working practices as well as deployment of watch and
ward at his work site.

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viii. The Contractor shall provide necessary man power for testing of the materials at site.

ix. The contractor shall use / provide only strong & stable staging arrangements in the work so
as to ensure safety of laboures & structures.

x. The Contractor shall assist for preparation of bar bending schedule for carrying out the work.

Xi Any special measures or techniques which may be necessary for construction of structure,
e.g. dewatering, sheet piling, diaphragm wall, well sinking, well point system, continuous
pouring of concrete etc. shall be deemed to have been taken into account by the Contractor
and no extra claim, whatsoever, shall be entertained.
xiii. The contractor shall provide all necessary storage at the site in specified areas for all
materials such as timber, cement, reinforcement and such other materials which are likely to
deteriorate by the action of sun, winds, rain or other natural cause due to exposure in the
open in such manner that all such materials shall be duly protected from damage by weather
or any other cause. All such stores shall be cleared away and the whole site left in good
order on completion of the contract. All materials shall be stacked in such a manner as to
facilitate rapid and easy checking of such materials. The Contractor will not be permitted to
store any of his material in the buildings under construction or already constructed by him
without prior approval of the Employer.

xiv. The contractor shall carry out structural load test / other non destructive test as
recommended by Employer / Owner on any part of the building/structure at its own cost if
such test is warranted due to unsatisfactory test results of concrete cubes and if so directed
by the Employer.

xv. Any other services required for satisfactory completion of the work.
However, it is binding on the contractor for faithful completion of the entire contract as per the
approved drawing, Approved Field Quality Plan (FQP), Specifications and in accordance with all
other conditions as deemed necessary and advice of Purchasers ENGINEER.

3.0 FREE ISSUE ITEMS:


Reinforcement steel
4.0 WASTAGE OF MATERIALS:
Wastage of Reinforcement steel is allowed up-to 2.5% and Invisible wastage is allowed up-to 0.5%
of the consumption of Reinforcement steel. Any wastage beyond the permissible limit will be
charged @ Rs.45000/- per Mt.
5.0 WATER & ELECTRICITY:
Water for construction work including drinking water shall be arranged by the contractor.
6.0 ACCOMMODATION:
The Contractor shall make arrangement for accommodation of the labours, supervisors.The
contractor shall strictly abide by the rules and regulations of security enforced by the Owner/
Purchaser.

7.0 PRICE
Price for the work stipulated in the contract shall remain firm and binding during the contract
period. The Contractor shall perform all his works as envisaged in the order. Rates are Inclusive of
all taxes, duties, insurance, levies, royalty/cess, service Tax (as applicable), Contractors statutory
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obligations towards his employees, staffs & workers payment of wages, provident fund, ESI (if
applicable), bonus and any other payment like labour cess etc. due as per Law. Deduction of
statutory obligation shall be of same amount as imposed by SPIU, NCRMP II, DISASTER
MANAGEMENT DEPARTMENT on BILIL. The Contract clauses between SPIU, NCRMP II,
DISASTER MANAGEMENT DEPARTMENT & BILIL shall also be binding to the Contractor
and the contractor shall be deemed to have satisfied himself as to the requirement of the purchaser/
owner specified in the conditions of the contract and in the circumstances of any payment
deducted by SPIU, NCRMP II, DISASTER MANAGEMENT DEPARTMENT from BILIL is
likely to be deducted the same amount from the Contractors bill.

All the Quantities in the BOQ are approximate and Quantities may increase or decrease but the rate
will remain firm during the execution period. The work has to be executed in such a planned
manner so that there SHOULD NOT IS ANY IDLING OF LABOUR. No IDLE CHARGE is applicable
& payable by the Purchaser.
The physical quantities of Civil Work are indicative only. Should the actual physical quantities vary
than those indicated, the Contractor shall be paid as per actual / drawing quantity whichever is less
at the existing rate.

8.0 PAYMENT TERMS

a) Progressive Payment / On-Account Payment


Payment shall be released as follows:

1) 94% of the Gross amount of R/A bill shall be released for payment as per the clause 9.0
mentioned hereunder.
2) Retention amount will be released after completion of the defect liability period.

3) Any other deduction of royalty, labour cess and others as applicable to BILIL
9.0 ON ACCOUNT BILLING
a) Payment against monthly on-account bills based on agreed payment terms shall be made within
seven days of payment receipt of the R/A bills from SPIU, NCRMP II, DISASTER
MANAGEMENT DEPARTMENT.
Payment of Final bill shall be made within one month from the date of final payment of SPIU,
NCRMP II, DISASTER MANAGEMENT DEPARTMENT and on receipt of "No Claim" and
"Indemnity Certificate" from the Contractor and submission of all clear certificates w. r. t. statutory
payment like PF, Royalty/ Cess etc.

10.0 CONTRACTORS LIABILITY:

a. If the Purchaser is forced to pay to any of the contractors, suppliers, Sub-contractor, Labour/
Worker, or to any statutory bodies/ Governments, the purchaser has the right to recover the paid
amount from the Contractor's any money available with the purchaser or by encashing any
security available with the purchaser.

b. Contract Performance means not only doing or completing the work but also observing/ abiding
by all the clauses of the contract. Violating any clause of the Contract shall mean breach of
Contract. In such a case purchaser has the right to encash the retention money available with
him.

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BIL INFRATECH LTD

11.0 TAXES & DUTIES:

All the taxes are inclusive in the rate.

The contractors rates are inclusive of all other taxes, duties, levies, entry tax, turnover tax up to the
completion of your scope of total work as applicable in the state of West Bengal under the law
governed by the Central or State Government or any local authority. The taxes and duties for
purchase of any input items are included in the contract price.

Income tax and VAT on works contract deduction at source as applicable shall be deducted from
the payments of the contractor as per provision of the statutory rules. In the event the purchaser is
being obliged to deduct any tax at source on any payment due to or payable to the contractor under
this contract, the purchaser shall deduct the same from the sums becoming due and payable and
make payment of the net amount to the Contractor. The purchaser shall give necessary certificate
(s) in this regard. Such deduction of tax by the Purchaser shall have no effect on the contract price
and the contract price shall not be liable to increase because of such deduction of tax.

The rates indicated in the BOQ are inclusive of Royalty / Cess on the materials like stone chips,
sands etc as applicable in the state of West Bengal. The contractor shall pay the Royalty / Cess as
applicable and furnish the necessary documentary evidences to the Purchaser along-with each R.A.
Bills otherwise the estimated amount, as per best judgment of the owner, shall be recovered from
the contractor.

12.0 INSURANCE:

The Contractors Machinery, equipment and materials contemplated in the Contract for execution of
the Contract work shall be covered by insurance by the Contractor. The Contractor shall maintain in
full force and affect all such insurances as above and required by the law for the purpose of the
Contract at the cost of the Contractor.

Contractor shall take out and maintain in effect adequate insurance policies for their personnel and
vehicles and for work executed by them under the Contract.

13.0 STATUTORY OBLIGATION OF CONTRACTOR:

The Contractor shall not employ for the purpose of the Work, any person below the age of 18 years.
BILIL shall have the right to decide whether any person employed by the Contractor is below the
age limit, and to refuse to allow any person, whom he considers to be under-aged to be employed
by the Contractor.

In respect of all labour directly or indirectly employed on the works by the Contractor, the
Contractor shall comply with and implement all the Provisions of the Contract Labour (Regulation
and abolition) Act 1970 or any amendment thereof, and all legislations and Rules of the State and
/or Central Government or other local authority formed from time to time governing the protection of
health, sanitary arrangements, wages, welfare and safety of labour employed on the works and the
Contractor shall be deemed to the Principal Employer for this purpose. The rules and other
statutory obligations with regard to fair wages, welfare and safety measures, maintenance of
register etc. will be deemed to be part of the Contract. The Contractor will get itself registered with
the concerned statutory authorities as provided in the Act and shall be directly responsible of the
authorities thereunder for compliance with the provisions thereof.

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The Contractor has to comply with all statutory requirements in respect of labour employed during
the period of the contract. The Contractor has to obtain licence from Assistant Commissioner Labour
(State), and should maintain the documents/registers prescribed under the Contract Labour (R&A)
Act, 1970 and follow the rules made thereunder and as amended from time to time.

Provisions of Minimum Wages Act & Payment of Wages


The Contractor shall comply with the provisions and procedures of State Governments minimum
wages Act 1948 & State Governments Minimum Wages Fixation Act, 1962 and rules made
thereunder in respect of all employees employed by the Contractor or its Sub-Contractor(s) directly
or indirectly for the purpose of carrying out the works. The Contractor shall pay employees wages
not less than the minimum rates of wages, if any, fixed by the State Government from time to time.

In respect of labour employed by the Contractor or its Sub-Contractor on the works the Contractor
shall provide at its own cost reasonable amenities for securing proper working and living condition
such as water supply, lavatories, bathing place, cleanliness, etc. Where a women labour is
employed, urinals, lavatories will be provided separately by the Contractor for female workers as
well as crches for the infant children of women labourers. Labourers engaged on hazardous jobs
and occupations, will be provided with necessary safety appliances by the Contractor(s) free of
charges.

The Contractors/Sub-Contractors establishment will be subject to inspection, investigation, etc. by


the Employer or its representative for assuring proper and faithful compliance of the provisions of
the Contract by the Contractor (so with regard to the implementations of labour laws & other
matters anticipated herein. The Contractor/Sub-Contractors shall abide by the decisions and orders
of the Employer with regard to any such matter and furnish if required, necessary compliance.

In the event of retrenchment of workers by the Contractor of Sub-Contractors employed by the


Contractor during or after the completion of Facilities the retrenchment compensation and other
benefits will be paid by the Contractor to the workers as per the Industrial Dispute Act.

If any money shall, as a result of any claim of application made under the said acts, be directed to
be paid by the Employer, such money shall be deemed to be money payable to the Employer by
the Contractor and/or failure by the Contractor to repay the Employer and money paid by the
Employer as aforesaid, latest within 30 days after the same shall have been demanded from the
Contractor, the Employer shall be entitled to recover the same from any money due or accruing to
the Contractor under this or any other Contract with the Employer, failing which such amount shall
be considered as debt due from the Contractor to the Employer.

The Contractor shall strictly comply the statutory rules and regulations in respect of working hours of
female labours at site.

Provident Fund:
The Contractor shall be solely responsible for deduction and contributions under the Employees
Provident Fund and Family Pension Act, 1952 and the scheme made thereunder as amended from
time to time. The contractor shall be solely be responsible for the maintenance of records for
payment of contributions and submission of returns in accordance with the said act and scheme.

In case the Contractor fails to make payments under the above Act and the scheme made
thereunder and as amended from time to time, the Employer reserves the right to make such
payment on behalf of the Contractor on demand from the authorities under the Act and recover the
same from the payments due to the Contractor. Further, the Contractor shall indemnify and keep
indemnified the Employer against any loss or damage whatsoever that may be suffered by the
Employer as a result of any claims, damages, penalties for any failure, non-compliance on his part
with the provisions of the aforesaid Act and the scheme framed thereunder.

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Payment of Minimum Wages:


The Contractor shall make regular and prompt payment of wages to the labour engaged in the work
and in no case shall the payment be delayed more than seven days following the period for which
the wages are due irrespective of receipt of monthly progressive payment from BILIL. The
Contractor shall send a certificate to the Employer to this effect every month. If it is found that
workers are not paid regularly, the Contract is liable to be terminated.

The Employer shall have the right to enquire into and decide against any complaint alleging that the
wages paid by the Contractor to any labour for the work done by such labour is less than the wages
paid for similar work in the neighbourhood.

a. Non-payment of wages

An amount equivalent to wages payable by the Contractor applicable for the relevant period
shall be recovered from the bills as certified by BILILs Engineer.

b. Non-payment of PF

Recovery of the PF amount and an amount equivalent to maximum penalty leviable by Regional
Provident Fund Commissioner for the delayed period under the provisions of EPF & West
Bengal Act and Rules for delayed remittance of PF contributions (both the Employee's and
BILIL's contributions), shall be recovered from the bills of the Contractor as certified by the
Engineer.

c. Delayed payment of PF

An amount equivalent to maximum penalty leviable by Regional Provident Fund Commissioner


for the delayed period under the provisions of EPF Act and Rules for delayed remittance of PF
contributions (both the Employee's and BILIL's contributions), shall be recovered from the bills of
Contractor as certified by the Engineer.

The aforesaid amount shall be recoverable from the bills by the Engineer or may be deducted by
the BILIL from any moneys due or which may become due to the Contractor under the Contract or
any other Contract between the Contractor and the BILIL or BILIL's Subsidiary units/Companies.

Reporting of accidents:

The Contractor shall be responsible for the safety of all employees and/or workmen employed or
engaged by him on and in connection with the work and shall report to BILIL and other local
authorities concerned all cases of accidents howsoever caused and wherever occurring on the
works and shall make adequate arrangements for rendering immediately all possible aid to the
victims of the accidents. The contractor shall be responsible for all such accident.

Workman's Compensation:

The Contractor shall be liable for in respect of any damages or compensation payable by law in
respect of or in consequences of any accident or injury to any workmen or other person in the
employment of the Contractor or any of its Sub-Contractors and the Contractor shall save harmless
and shall indemnify and keep indemnified the Employer against all such damages and
compensation and against all claims, demands, proceedings, costs, charges and expenses,
whatever, in respect thereof or in relation thereto. The Contractor shall at all times indemnify and
keep indemnified the Employer against all claims for compensation under the provisions of the

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Workmens Compensation Act 1923 (VII of 1923) or any other law for the time being in forces by or
in respect of any workmen employed by the Contractor or its Sub-Contractors/agencies in carrying
out the Contract and against all costs and expenses or penalties incurred by the Employer in
connection therewith. In every case in which by virtue of the provisions of Section-12, Sub-Section
(1) of the Workmens Compensation Act 1923, the Employer
is obliged to pay compensation to a workmen employed by the Contractor or its Sub-
Contractors/agencies, the amount of compensation so paid and without prejudice to the rights of
the Employer shall be at liberty to recover such amount or any part thereof from the security
deposit or from the sums due or to become due to the Contractor (whether under this Contract or
any other Contract )
The Employer shall not be bound to contest any claim made against him under Section-12, Sub-
Section (1) of the said Act, except on the written request of the same or his sub-
contractors/agencies and upon their giving to the Employer full security for all costs for which the
Employer might become liable in consequence of contesting such claims.

The Contractor shall arrange Accident Insurance Policy for all his personnel including
supervisory staff deputed at site.

Default of Contractor in compliance:

The Contractor shall give all notices and pay all fees required to be given or paid under any Central
or State statute, Ordinance or other Law or any regulation or bye-Law of any local or other duly
constituted authority in relation to the execution of the Work or of any temporary work and by the
rules and regulations of all public bodies whose property or rights are affected or may be affected in
any way by the Work or any temporary work. The Contract shall be governed by the law for the time
being in force in the Republic of India.

The Contractor shall conform in all respects with the provisions of any Statute, Ordinance or Laws
as aforesaid and the rules, regulations or bye-Laws of any local or other duly constituted authority
which may be applicable to the Work or to any temporary work and with such rules and regulations
of public bodies as aforesaid and shall keep BILIL indemnified against all penalties and liabilities of
every kind for breach of any such Statute, Ordinance, Law, rule, regulation or bye-Law.

In case of default on the part of Contractor in carrying out the order/orders BILIL shall be entitled to
employ and pay other persons to carry out the same and all expenses consequent there on or
incidental thereto shall be borne by the Contractor and shall be recoverable from him by BILIL or
may be deducted by the BILIL from any moneys due or which may become due to the Contractor
under the Contract or any other Contract between the Contractor and BILIL or BILIL's Subsidiary
units/Companies.

The Contractor shall ensure that the provisions of relevant Statutory Rules and Regulations are
implemented by him, his employees and sub-contractors.

14.0 DELIVERY SCHEDULE:


Time is the essence of the Contract. The Contractor will execute the work as per project schedule of
the main contract with SPIU, NCRMP II, DISASTER MANAGEMENT DEPARTMENT and
BILIL.
The Contractor will mobilize his resources to site within 7 days of issuance of LOI. This will include
mobilization of manpower, plant & equipment, setting up of site office, reinforcement Steel yard
storage yard etc.

The work in your scope must be completed within 02 months from the date of issue of Letter of
commencement.
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The Contractor shall organize his resources and perform so as to complete the work not later than
the aforesaid date. The work plan shall be reviewed every week and Review Reports shall be
submitted by the Contractor to the Purchaser. Contractor shall furnish weekly work schedule /
programme indicating target matching with overall work schedule and shall strictly adhere to the
milestones as applicable for BILIL.
15.0 LIQUIDATED DAMAGES:

In the event of the Contractor failing to complete the work within the time allowed in the Delivery
Schedule / construction schedule, he shall be liable to pay as liquidated damages equivalent to
0.05% per day upto maximum of 10% of the contract value . The recovery of liquidated damages
shall not relieve the contractor from his obligation to complete the work or from any of his obligation
and liabilities under the contract.

16.0 MAINTENANCE PERIOD / DEFECT LIABILITY PERIOD:


The contractor shall maintain the work through out the guarantee period / defect liability period of
365 days from the date of completion of works.. Any defect, which may appear within this period,
shall be made good by the contractor at his own cost immediately on receipt of intimation from the
Purchaser. In the event the contractor fails to carry out the rectification, the purchaser shall have
liberty to get the defects made good through other sources at the contractors risk and cost.

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