FINANCIAL PROPOSAL

FOR
PROJECT MANAGEMENT CONSULTANCY SERVICES
FOR THE Construction of Minority Welfare Department
Morarji Desai Residential School at Hulyala Village,
Jamakhandi Taluk, Bagalkote District.

ISSUED BY

THE CHIEF ENGINEER

KARNATAKA HOUSING BOARD
III FLOOR CAUVERY BHAVAN, BANGALORE- 9
FAX:080- 22215125, PHONE:080- 22100077
EMAIL: cheifengineerkhb@gmail.com
 FINANCIAL PROPOSAL

( FINANCIAL BID )

NAME OF THE WORK:

Construction of Minority Welfare Department
Morarji Desai Residential School at
Hulyala Village, Jamakhandi Taluk,
Bagalkote District.

1.0 DESCRIPTION OF WORK :

Project particulars Amount put to

tender/Project cost Rs. in
Lakhs
Construction of Minority Welfare
Department Morarji Desai Residential
School at Hulyala Village, Jamakhandi Rs.1000/-
Taluk, Bagalkote District

Note: The figures mentioned are subject to changes.

2.0 FEES AND TERMS OF PAYMENT:

2.1 PMC Fee:

a) PMC’s fee for rendering project management services shall be,
without any escalation payable as per mode of payment in
Clause 2.2 hereinafter (including GST and all applicable taxes)
which shall be calculated at a fee % ( )
of the contract price of work awarded to the contractor
( Excluding External Electrification amount) only and not any
other amounts the BOARD may spend for the project and
providing any other services or amenities or any other contract
the BOARD will execute for this project.
 b) The BOARD will be entitled to deduct any amounts from and
out of the payments to be released as may be required by any
state or central statute.

c) In the event of reduction of work entrusted to the contractor

in the course of execution of work the fee payable will be
limited/adjusted to the actual work carried out.

d) In the event of extension of time accorded to the work as per the

recommendation of the Project Monitoring Committee the PMC
has to provide the project management services as per the scope
of services mentioned in this contract at no extra fees.
2.2 Mode of Payment

The mode of payment shall be as under:

a) During contract management and 85% of the fee

:
construction supervision, on installments
after completion of each milestone(to be
divided equally for each milestone) for
payment applicable to the construction
contractor.
b) Defects correction during the ‘Defect : 10% of the fee
Liability Period’ supervision in equal
monthly installments
c) After completion of Post-contract period and : 5% of the fee
services

2.3 Terms of Payment:

\ ’

(a) The fee is inclusive of charges towards remuneration for all the
personnel employed during the execution of this Contract and
during the defect liability period and for boarding, lodging,
transportation, office accommodation, furniture, equipment,
 communication facility, consumables, costs of documents and
reports, insurance liabilities other expenses etc.

(b) The fee is inclusive of all taxes ( including service tax), duties,
fees, levies and any other imposition of levied under the law of
India and Karnataka and that would be payable by the PMC. The
BOARD shall perform such duties in regard to the deduction of
such impositions as may be lawfully required to be imposed and
in terms of this Contract.
(c) Security Deposit :

Security deposit will be deducted at 5% of bill amount, in each

of the running account bills of the PMC. This amount of
security deposit will be refunded after virtual completion
certificate issued by the Project Management Committee against
on Demand irrevocable Bank Guarantee of any Nationalized
Bank which shall be valid for a period of 25 months from the
date of virtual completion certificate issued by project
management committee.

(d) The BOARD shall cause the payment of the PMC’s bills within
one month after the receipt by the BOARD of such bills with
supporting documents. Portions of bills that are not
satisfactorily supported may be withheld from payments. Should
any discrepancy be found to exist at any time between actual
payment and costs authorised to be incurred by the PMC, the
BOARD may at anytime, add or subtract the difference from any
subsequent payment.

(e) Final payment shall be made only after the completion of the
Services and a final statement, identified as such, shall have
been submitted by the PMC and approved as satisfactory by the
BOARD.
(f) All payments under this contract shall be made by cheques
drawn on the BOARD’s bank payable to the PMC.