ANNEXURE

FORMOFAGREEMENT

Preliminary Agreement entered into on this…………………………………………

dayof……………………………………………Twothousandand……………..between
………. Engineer/Secretaryof……………..………. ……..…….onbehalfoftheCouncil
/Committeeof theCorporation/MunicipalityDistrict/Block/GramaPanchayathof ..................of
………………..(hereinaftercalledfortheGovernment)oftheonepartandSri……………
…………………………………………………………………… …… …………………
…………………………………………………………………………………………
………… ………… ………………… ………… …..(H.E.fullnameandaddressofthe
contractor) hereinafter calledthecontractoroftheotherpartfortheexecutionofthe
agreementaswellasfortheexecutionofthework.

WhereastheGovernmentinvitedtotendersfortheworkasstatedabove…………………
…… ... ……… ……… ……… ……… ………… ………… ……… ……… ………
……… …… … ………...……. (H.E.name ofthe work) by notification No. ………..
…………….………….……………………… ….Datedinthe……….…………..……..
………..………..……....……………...……..…………
ANDWHEREASPara13oftheNoticeinvitingtendersstatedasfollows.

Beforecommencingworkorwithinaweekafterthedatewhentheacceptanceofthe
tenderhasbeenintimatedtohim,thetenderorshalldepositasumsufficienttomakeupto
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CONTRACTOR MUNICIPAL ENGINEER
thebalanceof5percentoftheprobable valueofcontractwhichtogetherwiththeamountof
earnestmoneydepositedshallbetreatedassecurityfortheproperfulfillmentofthesame
andshallexecuteanagreementfortheworkinthePWDschedule form.Ifhefailstodothis
orinthecaseof PWD contractorsfailstomaintainaspecifiedrateofprogress(to be specified
ineachcase,inthetenderschedule bythebidder)theearnestmoneyandsecurity
depositshallbeforfeitedtoGovernment andfreshtendersshallbecalledfororthematter
otherwisedisposedoff.Ifasaresultofsuchmeasuresduetothedefaultofthetendererto pay the
requisite deposit, sign contract or take possession of the work any loss to Government
duetothesamewillberecoveredfromhimasarrearsofrevenue,butshouldit
beasavingtoGovernment,theoriginalcontractorshallhavenoclaimwhatevertothedifference.
Recoveries onthisoranyotheraccountwillbemadefromthesumthatmaybe duetothecontractor
onthisoranyorothersubsisting contractsorundertheRevenue
RecoveryactorotherwisetheGovernment maydecideNOWTHEREFOREINTHE
PRESENCEOFWITNESSit ismutuallyagreedasfollows.

1. Thetermsandconditions forthesaidcontracthavingbeenstipulated inthesaidtender

formtowhichthecontractor hasagreedacopyofwhichisheretoappended which
formsthepartofthisagreement, itisagreedthatthetermsandconditionsstipulated
thereinshallbindthepartiestothisagreement excepttotheextendtowhichthey are
abrogated oralteredbyexpresstermsandconditions hereinagreedtoandinwhich
respecttheexpressprovisionshereinshallsupercedethoseofsaidtenderform.
2. TheContractorherebyagreedandundertaketoperformandfulfillalltheoperations
andobligationsconnectedwiththeexecutionofthesaidcontractwork……..……………….
……… …….………….………….…….....
..…………………..………...........(H.E.nameofthework)(hereinafterthenameofthework)i
fawarded infavour oftheContractor.)
3. IftheContractordoesnotcomeforwardandtoexecutetheoriginalagreementafterthe
saidworkis awardedandselectionnoticeissuedin hisfavourorcommitsbreachof any
oftheconditionsofthecontractasstipulatedinclause13ofthenoticeinvitingtenders
asquotedabove,withintheperiodstipulatedthentheGovernment mayre-arrangethe
workotherwiseorgetitdonedepartmentallyattheriskandthecostofthecontractor
andthelosssosustained bytheGovernmentcanberealizedfromtheContractorunder the
RevenuerecoveryActasifarrearsoflandrevenueasassessedquantifiedandfixed
byanadjudicating authorityconsistingoftheSecretary/President/Engineerofthe
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CONTRACTOR MUNICIPAL ENGINEER
 Grama/Block/DistrictPanchayat/Municipality/Corporation&ExecutiveEngineerof
theDistrict PanchayatoranyotherofficerorofficersauthorizedbyGovernmentinthis
behalf,takingintoconsiderationtheprevailingP.W.Dratesandaftergivingduenotice
totheContractor.Thedecisiontakenbysuchauthority officerorofficersshallbefinal
andconclusiveandshallbebindingontheContractor.
4. TheContractorfurtheragreesthatanyamountfoundduetotheGovernmentunderor
byvirtueofthisagreementshall berecoverablefrom theContractorfromhisEMDand
hisproperties
movableandimmovableasarrearsofLandRevenueundertheprovisionoftheRevenue
RecoveryActforthetimebeinginforceorinanyothermannerastheGovernmentmaydeemfit
inthisregard.

5. TheContractorfurtherassuresthatitisclearlyunderstoodthatthesettlementofclaims
eitherbypartbillsorbyfinalbillswillbemadeonlyaccordingtotheavailability of
budgetprovisionandallotmentoffundsmadewiththeSecretaryofthe…………
……..………….……(H.EnameoftheInstitution)) inchargeoftheworkunderthe respective
headsofaccountinwhichtheworkissanctioned andarrangedandalso subjecttotheseniority
ofsuchbills.Noclaimsforinterestorfordamageswhatsoever
shallbemadefortherelatedsettlementofclaimsofbills.
INWITNESSTHEREOFSri(H.E.thenameoftheofficeroftheDepartment)…………
…………………………………………… (hereinaftertheofficeroftheDepartment)foron
behalfoftheCouncil/Committeeofthe……………..…….…….(H.E. thenameofthe Institution)and
Sri ………………………………………………………(thecontractor)have
settheirhandonthedayandyearfirstabovewrittenSignedbySri…………
……………………………………………………………(Officer/
OfficersofLocalSelfGovernmentDepartmentInthepresenceofwitnesses)

1.

2.
SignedanddeliveredbySri………………………..(contractor)inthepresenceofwitnesses:
1.

2.

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CONTRACTOR MUNICIPAL ENGINEER
SpecialconditionsvideGO(P)84/97/PW&OTdtd19-08-1997

1. Clause3(C)Addition
TheContractorwhoquotesunjustifiedlowrateswillremitperformance guaranteewitha
viewtocurbthetendencytoquotelowratesandexecutetheworksunsatisfactorily.
(i) Ifthequotedrate fora workisbelow50%it will berejected.
(ii) Ifthequotedrateisbetween25%and50%belowestimaterate,thecontractorwill
remitperformanceguaranteeequaltothedifferencebetweentheestimateP.A.C.and
quotedPAC.Thiswill bereleasedaftersatisfactorycompletionofthework
2. Clause4Addition
Tenderssealedandendorsed assuchwiththenameoftheworkclearlywrittenthereon
shouldbedeliveredbyRegisteredPost onorbeforethelastdate andtimeforthereceiptof
tendersbytheundersigned fortheworks.Thedepartmentwillnotberesponsibleforany
postaldelay.
3. Clause10(A)Addition
The contractorwillexaminethesiteconditionsandsatisfythemselvesoftheavailabilityof
materialsatthenearbyplaces,difficulties whichmayariseduringexecution etc.before
submittingtenderforthework.
4. Clause22(Substitution)
Executionofagreementforworkswill be madewithinprescribedtime limit asfollows:(1)
Thetimeallowedforexecutingagreementwithoutfinewillbe20days(Twenty days)
fromthedateofregistrationofthecommunication(SelectionNotice)inthepost office.
(2) Furthertimeof10daysshall beallowedtoexecuteagreementbyrealizingfineof
1%PACsubjecttoa minimumofRs.600andMaximumof15,000/-.
(3) Thetenderwillberejectedifagreement isnotexecutedwithin30daysandwork will
beawardedtothenextlowesttendererasperrules.
(4) Thecontractor willtakeoverchargeofthesitewithin10daysafterexecuting
agreementandcommencethework.
5. Clause28(Substitution)
(i)Cementandsteelwillnotbesupplieddepartmentally.Malabarcementshallpreferably
beusedinthiswork.Incaseanyotherbrandofcementistobeused,itshallbegottested
&approvedbythecompetentauthority.

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CONTRACTOR MUNICIPAL ENGINEER
 (ii)AllmaterialsproposedtobeusedbytheContractors shouldbegotapprovedbythe
competentauthority.Materialssuppliedfortheworkshallbetestedatperiodicalintervals
asdirectedbythedepartmentalofficersandtestingofthematerialswherevernecessary will
bedonebythecontractorat hiscost.
6. Clause35(A)Deleted
7. Clause35(A)(I)Addition
Theresponsibilityforsafecustodyofmaterialsatworksiteandduringtransitwillbe
vestedwiththecontractor. Theconcerned overseerinchargeoftheworkwillverifythe
stockandinitiateactionifanyshortageinstockisnoticed.Otherinspecting officerswill
alsoverifythestockduringinspection.
8. Clause42(Addition)
Thecontractorwill employTechnicalPersonaltosupervisetheworkasfollows:
ForPrequalificationworksupto3Crores
1) WorksManger–1no(CivilEngineeringGraduate+3yearsexperience)
2) Site Engineers--2Nos(Graduate/ DiplomaHolder+Min1YearExperience)
3) SkilledLabours–10Nos
4) UnskilledLabours–30Nos
Forworkscostingmorethan3Crores
1)WorksManger–1no(CivilEngineeringGraduate+5yearsexperience)
2)Site Engineers--2Nos(Graduate+Min1YearExperience)
3Nos(Graduate/Diplomaholders-atleast1shouldbeMechanical
Engg)
3) SkilledLabours–20Nos
2) UnskilledLabours–60Nos

9. SPECIALCONDITION,CLAUSE49(A)Addition
Totakecareofanydepartmentaldelaysordelayoccurringduetounexpected technical problems
facedduringexecution ofworkagraceperiod20%oftheoriginaltimeof completionwill
beallowediffoundnecessarytocompletethework.
Thegraceperiodwillnotbegrantediftheextension isnecessitatedduetothedefaulton
thepartoftheContractor
Forextensionoftimeofcompletion beyondthegraceperiodfinewillbeimposedatthe
followingrates.
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CONTRACTOR MUNICIPAL ENGINEER
 Periodofextension Rate ofFine
1)Firstthreemonths 1%ofthePACsubjecttoa
MinimumofRs.300/-andMaximumofRs.15,000/-

2)Foreverythreemonths beyondthefirst 3months2%ofthePACsubjecttoaminimum

ofRs.600/-andmaximumofRs.30,000/-
3)Forextensionoftimeofcompletionforpartoftheabove periodproportionate amount offinewill
belevied.

10. TERMINATIONOFCONTRACT.
Thepresentsystemofriskandcostterminationwill continue.

11. BANKGUARANTEE
Bankguaranteeat therate of10%ofquotedPACshallbeproducedat thetime of
executionofagreement.

12. AMENDEMENTTOFORMNO.83

1. Clause24(Substitution):Alldisputesanddifferencesarisingoutofthecontractsthat
maybeexecutedinpursuanceofthenotification shallbesettledonlybythecivilcourtin
thosejurisdictionoftheworkcoveredbythecontractissituated,orinwhosejurisdiction or
morethanonecourt.
2. Clause32(B)Deleted
3. Clause3(C)Deleted
4. Clause32(3)Deleted
5. Clause33(A)Deleted
6. Clause48(Substitution):Thequantitiesspecifiedintheschedulemayvaryandthe
contractorshouldbepreparedtodoexcessupto25%(TwentyFivePercent)ofthe
schedulequantitiesat hisquotedrate ofthework.

13. AMENDEMENTUNDERCLAUSE23(b)INFORMNO.83
Clause23(B),in thecase of earthworkfor foundationfootings,drains,trenches,the payment
shallbemadebasedontapemeasurements.Howeverifthequantitiesexceed300
cummeasurementsshallbegiveninlevels.

14. CLAUSE20(a)ADDITIONS
Thecontractor isboundtocarryoutsinkingofwellforanincreaseddepthupto10meter
beyondtheestimateddesign depthandrateforwhich shallbepaidasperscheduleofrates
andextraitemconditions.Incaseofpilefoundations, thesameconditionsasaboveshall apply.

15. SPECIALCONDITIONTOWARDSCONSTRUCTIONOFKERALA
CONSTRUCTIONWORKERSWELFAREFUNDBOARD
1% (OnePercent)ofthe billamountlesscost ofdepartmentalmaterialsand hirechargesof
departmental tools and plant will be recovered towards the contribution of
KeralaConstructionWorkersWelfareFundboardsasperKeralaConstructionWorkersWelfare
FundScheme1990.

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CONTRACTOR MUNICIPAL ENGINEER
16. SPECIALCONDITIONS(contd….)

1. Landrequiredfortheworkmaynotbeavailableinfullordifferentcontractors
maybeworkingsimultaneouslyinsameland.Furtherlandwillbehandedoverasand
whenitisreceivedfromtheLandAcquisition Authority. TheContractorshallnotbe
eligibleforanyextraorenhancedclaimsorforcompensationduetothenon-availabilityof
entireland.Heshallalsonotbeeligibleforanyclaimsorcompensation forthenon-
completionofthework withintheagreed timeandforcontinuingthework intheextended
periodofagreedtime duetotheabovereasons.

2. InthecaseofanydelayinshiftingtheTelephoneposts,Electricposts,Electric
overheadlineandcables,waterlinesetc.bytheconcernedDepartment. Thisdepartment
shallnotinanywaybeheldliablefordamages,howeveraproportionateextensionoftime
ofcompletionofworkwill begrantedindeservingcasesonapplicationbythecontractor.

17. SPECIALCONDITIONS
Billsshallbesubmittedinaccordance withtheformsuppliedbytheImplementing
officerandtheratesatwhichthevalueoftheworkcalculatedshallbeasthoseenteredin
theattachedscheduleofrates.Theallowforaguarantee fundof10percent,forall payments
tothecontractorrecoveryistobemadebytheImplementingofficer,atthetime of
payment.Thisguaranteefundofretentionmoneyshallbemadein favourofthe
Implementingofficerinchargeofthework subjecttotheconditionthatifrecoveriesareto
bemadeforsuchamountwhichbecomeduetoGovernment, itwillberecoveredfromthe deposits.
TheContractor shalldeposittheentireretentionmoneyinitiallyinbankbeforethe
firstrunningaccountbillispassedandpaid. Additionalretentionmoneyonthebasisof
therevisionofprobableamountofcontractanditshallalsobe depositedin bankbeforethe
billinwhichsuchadditionalclaiminexcessoftheoriginalprobableamountofcontractis
passedandpaid. Buttheamountsoheldasretentionplusthesecuritydepositof5
percentageasperclause(1)shallnotatanytimeexceed10percentofthecontract amount
subjecttotheconditionthatthemaximumamountoftotalsecurityincludingearnest
moneydeposit,furthersecurityandtheretentionamountfrombillswillbelimitedtoRs.5

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CONTRACTOR MUNICIPAL ENGINEER
 Lakhs forworks costinguptoRs.1.00Croreand10lakhsforworks costingabove Rs.1.00
Croreiftheauthorityexecutingtheagreementissatisfiedthattheamountsoretainedshall
coverstheliabilitiesofthecontractor ifany.Theretentionamountwhichisheldas
additionalsecuritywillbereleasedbytheofficercompetentofmakingpaymentofthe
worktothesatisfactionoftheEngineerandfinallytakenoverbytheGovernment and shall
retainonlysuchamountashemayconsidernecessary toberecovered asthe
liabilitiesifanyofthecontractor.Themaximumperiodofretaining thesecuritydepositis
2yearsfromthedateofcompletion ofthework.Thesecurityamountwillbenecessary
releasedearliertothisatthedirectionoftheImplementingOfficer,concerned,provided he is
convincedthat the amountas perthe finalbill will coverall liabilities ofthe Contractor
andrecordedandprovided furtherthatthecontractorhasproducedthelatest
clearancecertificateofIncomeTaxandSalesTax. Tillthentheresponsibility willrests
withthecontractor.

18. SPECIALCONDTIONSFOREARNESTMONEYDEPOSIT.

1. Cashifenclosedwiththetenderwill notbeaccepted.
2. BankDraft/DepositproducedtowardsE.M.D.shouldbepledged infavourofthe
ImplementingOfficeranddulystamped.
3. InthecaseofNationalsavingsCertificate,thesameshould bepledgedinfavour ofthe
Implementing Officerintheprescribedformdulyauthenticatedbytheconcernedpost master.
4. BhadradaCertificateshallalsobepledgedinfavourofImplementingOfficerbefore
submittingthetenders.
5. Tendersnotconfirmingtotheabovewill notbeaccepted.

19. SPECIALCONDITIONFORP.Q.WORKS

1. BankGuarantee attherateof10%ofP.A.C.shouldbegivenatthetimeofexecuting
agreementforthework.

2. Thetenderershallfurtherberequestedthattheearnestmoneyshouldbepledgedin favour
ofthe….….…....…......................................…..(Nameof
ImplementingOfficer)andenclosedin thefinancialbid,butina separatesealed
envelopesuperscribedthereinEarnestMoneyDepositfortheworkof……

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CONTRACTOR MUNICIPAL ENGINEER
20. SPECIALCONDITIONSFORKVATASPERTHEKERALAFINANCEACT2008
In case of Civil works awarded by Government of Kerala, deduct KVAT
amountingto4%ofthegrossamountofbill payableforthecontractorseverytime.
TheVAT amountwillberetainedbytheconcernedPWD officerswhen thebillfor
theworkispassedforpaymentandtheamountsoretainedshallbecreditedtothesales
TaxDepartment.
21. SPECIALCONDITIONSFORPURCHASING
Inrespectofeachwork,thePWDofficersconcernedpassesthebill,willdetermine
thetotalcostofpurchased itemsutilizedintheworkandissueacertificateregardingthe above
amountto the assessingauthorityconcerned.Six pointfour eight percentages
(6.48%)ofthevalueofthepurchasable itemsortherateprescribedbytheSalesTax
Departmentexceptdepartmentalmaterialswillberetainedbythe P.W.D.officerswhenthe
billfortheworkispassedforpayment andtheamountsoretainedwillbecreditedtothe
SalesTaxDepartment.
Inassessingthetaxliability,thepercentage,willbeworkedoutwithreferenceto
thecontractorsvalueoftheworkwhetheritisbeloworabovetheestimateamount, purchase
taxwillbeleviableaspersections2(2)oftheKeralaFinanceAct.1991as modifiedperiodically.

22. AMENDMENTOFCLAUSE7OFCONDITIONSOFCONTRACTATTACHED
TOG.W.D.FORM.NO.132ASPERG.O.(M.S)NO.2/2005PWD.DATED7.1.2005

Billsshallbesubmittedbythecontractor forpartpaymentwhiletheworkisin progressor

final bill on completionof the work as per the specification,terms and
conditionsofthecontractandtheImplementing Officer shalltaketherequisitemeasures
forhavingthesamecheckedandtheclaimasfarasadmissiblesettledaccording tothe
availabilityofbudgetprovision andallotmentoffundsmadewiththedivisionalofficer
undertherespectiveheadsof accountunderwhichtheworkis sanctionedandarrangedand
alsosubjecttotheseniorityofsuchbills.Thecontractor shallnotmakeanyclaimfor
interestorfordamages foranydelayinsettling thebills.Nosuchclaimsshallbeadmitted
bytheGovernment shouldthecontractorbeunabletopreparethebillforhimself,the Implementing
Officershalldeputeasubordinatetomeasuretheworkperformed,inthe
presenceofthecontractor,whosecountersignaturetothemeasurement listwillhea
sufficientwarranttotheImplementingOfficertopreparethebill forhimthat list.

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CONTRACTOR MUNICIPAL ENGINEER
23. A NEW CLAUSE IN THE SPECIAL CONDITIONS IN GWD FORM NO.83
NOTICEINVITINGTENDERSASCLAUSE–56
Thetenderer/contractormustclearlyunderstandthatthesettlementoftheclaims eitherby
partbillsorbyfinalbillswillbemadeonlyaccordingtotheavailabilityofbudget
provisionandallotmentoffundsmadewiththeDivisionofficerinchargeofthework
undertherespectiveheadofaccountinwhichtheworkissanctionedandarrangedand also
subjecttotheseniorityofsuch bills.Noclaimforinterestorfordamageswhatsoever shallbe
madefortherelatedsettlementofClaimsofbills.Nosuchclaimsshallbeadmitted
bytheGovernment.

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CONTRACTOR MUNICIPAL ENGINEER
 DECLARATION

I do herebydistinctlyand expresslydeclareand acknowledgethat I have read the conditions

asstipulatedinthestandardformsNo.83and84withtherelevantmodifications effected underclause9-
13-24 ofform.No.83andClause14ofForm.No.84andIdohereby admitthattheseconditions
arebindingonmeandIshallabidebythetermsandconditionsas stipulatedthereininrespectofthework.

I am enclosing preliminary agreement form in stamp paper Rs.200/-

Date:
CONTRACTOR.

TENDER AND CONTRACTORS CERTIFICATE

I herebydeclarethatIhavepersuedindetailandexamined closelyintheMadras
DetailedStandardSpecification,allClausesofthestandardpreliminaryspecification before
IsubmitthetenderandIagreeto be boundby andcomplywithallsuchspecificationsexcept
clause73andother clausesrelatingtoarbitrationscontainedtherein.Theguaranteeperiodof
18monthsasperG.O.(MS)No.98/02/PWDdated21/11/1992isnotedbymeforthiswork,
Ihavesignedtheregisterasbelowinacknowledgment thereofhavingexaminedtheMDSS
andotherdocumentsconnectedwiththecontract.

TendererofContractor’s
Signature :
Name :
Date: Address :

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CONTRACTOR MUNICIPAL ENGINEER