VOLI-S3-Special Cond-Supply

FICHTNER Consulting Engineers ( India ) Private Limited.
SUBJECT Doc. No. Rev. Vol. / Sec.
EPC TENDER SPECIFICATION I / 3

FOR 1 X 20 MW TPP AT 3040720001-PM-SPC-700-001 B Sheet No.
JAINTIA HILLS, MEGHALAYA
1
SECTION - 3
PRICE SCHEDULE AND

SPECIAL CONDITIONS OF CONTRACT
[ SUPPLY ]
FORMT9-P REV-B (MUM)
VOLI-S3-Special Cond-Supply AAA / ELEC 07-07-2008


2
SECTION - 3
PRICE SCHEDULE AND

(SUPPLY)
CONTENTS
CLAUSE NO. DESCRIPTION SHEET NO.
1.0 GENERAL 3
2.0 CONTRACT PRICE 3
3.0 TERMS OF PAYMENT 4
4.0 BANK GUARANTEES 5
5.0 TAXES AND BENEFITS 6
6.0 TIME SCHEDULE AND LIQUIDATED DAMGES (LD) FOR

DELAY 8
7.0 LIQUIDATED DAMAGES FOR SHORTFALL IN

PERFORMANCE 8
8.0 AFTER SALES SERVICES 11



3
SECTION - 3
PRICE SCHEDULE AND

1.0 GENERAL
1.1 Supplier shall submit equipment-wise billing schedule in line with Volume – II of EPC
tender specification along with cash flow statement, which will be approved by Owner.
1.2 Supplier shall strictly follow the above billing schedule and cash flow statement in
execution of supply contract.
2.0 CONTRACT PRICE
2.1 Total contract price is FOR site Rs.
2.2 The contract price is having following break up :
Design, engineering, manufacturing, inspection,

packing & forwarding and supply of all equipment /
systems as per technical scope, mandatory and
commissioning spares on F.O.R. site basis
inclusive of local as well as central sales tax as
applicable, custom duty but excluding cenvatable
excise duty, CVD and local entry tax / octroi. Rs.
==============
Net Price Rs.

==============
2.3 BREAK-UP of above price :
• Steam generator including all auxiliaries. :

• Steam turbine generator including all auxiliaries. :
• Fuel, bed material & ash handling system including
auxiliaries. :
• Balance of plant equipments including auxiliaries.
(Bidder to list out separately for individual
equipments). :
• Mandatory O&M spares :
•
Start-up & commissioning spares. :

• Special tools & tackles. :
• Inland transportation :


4
• Comprehensive insurance (including inland transit) :

• Packing and forwarding :
• Excise duty / custom duty. :
• Sales tax :
• CIF content. :
• Modvatable amount. :
• Ocean freight and Marine insurance :
• Exchange rate quoted. :
3.0 TERMS OF PAYMENT
3.1 The terms of payment for the Supplied Items are detailed herein.
a) Interest free advance against submission

of BG equivalent to the advance amount
in favour of owner valid until completion of
supply. 10% of contract value
b) Against completion of detailed engineering 5% of contract value
c) On release of purchase orders for STG,

Boiler, HP / LP pipeline, ESP, Chimney,
WTP, Fuel handling plant, Ash handling
plant, MCCs, PCCs, DCS, HT panels,
Transformers, LT Motors, etc. (copies of
un priced purchase order to be furnished
to Owner) 5% of contract value
d) On pro-rata basis against receipt of

material along with commissioning spares
and standard manuals at site within 15
days. Supplier will submit the
Performance Bank Guarantee before the
despatch of turbine / Generator whichever
is supplied first and valid up to successful
Performance test 70% of contract value
e) On successful commissioning of plant 10% of contract value



5
4.0 BANK GUARANTEES
4.1 Security deposit from zero date to the date

of commissioning in the form of Bank
Guarantee. 10% of contract value.
4.2 Performance Bank Guarantee valid from the

date of despatch of turbine/or generator
whichever is earlier, up-to successful
Performance test 10% of contract value.
4.3 Warranty BG valid from Bank Guarantee of 10% of

commissioning to Warranty Period. contract value will be submitted before
commissioning or Bank Guarantee
submitted under clause 4.1 may be
converted and extended.
4.4 Liquidated Damges (LD)
a) Liquidated Damages (LD) for delay ½% per week or part thereof of contract
value for delayed period (Max.5% of
contract value), which can be recovered
from last 10% payment due or from Bank
Guarantee given under Clause 4.2
b) Reduction in Gross power output Rs. 0.5 Lacs / kWHr
c) Increase in gross plant Heat Rate Rs. 8.5 Lacs /Kcal/kWH
d) Increase in aux. Power consumption Rs. 0.8 Lacs / kW
e) Increase in Water consumption Rs. 1.2 Lacs /CUM/Hr.
f) Unburnt combustible content shall be rectified
g) Overall liquidated damages 10% of contract value

against (b) to (f)
h) Overall Liquidated Damages on 10 % of contract value

Account of delay and performance
Failure (a to f)
4.5 Warranty / Defect Liability Period 12 months from the date of take over or
15 months from the date of
commissioning whichever is earlier.
4.6 Latent Defect Liability 60 months from commissioning.


6
4.7 Mandatory spares prices As per list given ( price valid for
(FOR despatching station) 24 months from zero date )
inclusive of all local as well as - to be extended, if required.
central sales tax, custom duty,
etc. as applicable but
excluding Cenvatable excise
duty and CVD.
5.0 TAXES AND BENEFITS
5.1 Contract Price shall be FOR despatching station inclusive of local as well as central
sales tax, custom duty, etc. but excluding Cenvatable excise duty, CVD. Local Entry
Tax / Octroi, if any.
Excise duty on equipment shall be paid at the rates prevailing at the time of despatch
within the Contractual delivery period and also for extension if any granted by owner.
5.2 Excise Duty
Notwithstanding the terms of Commercial Conditions of Contract the supplier and

Owner specifically record their intention that:
(a) Property in goods, material, etc. shall pass to the Owner as soon as such goods,
materials etc. leaves supplier’s sub-supplier’s works and other terms of this
contract or any other contract relating to the said goods, materials, etc. shall be
construed accordingly.
(b) The supplier shall nevertheless remain liable for conditions of warranty in
respect of such goods, materials etc. till the testing / commissioning of the
(power plant) and during the warranty period and the fact that the title to
property in such goods, materials, etc. has passed to the Owner will not absolve
the supplier on account of its obligations in respect of performance of the said
goods, materials, etc. as stipulated in the Commercial Conditions of Contract.
(c) The Owner shall re-imburse the amount of Excise Duty paid by the supplier only
in case where such amount is claimed as CENVAT credit on the eligible goods
within the ambit of prevailing Central Excise Rules. The Owner shall not be
liable to reimburse the amount of Excise Duty in respect of the goods not found
eligible for CENVAT credit as per Central Excise Rules.
(d) The supplier shall furnish to the Owner all necessary documents as prescribed
under Central Excise Rules to enable him to avail CENVAT benefit on the goods
supplied. Excise Invoice should be drawn in the name of "Nilanchal Cement Pvt
Ltd, Noida" as consignee, enabling Owner to avail CENVAT credit. Incase of
bought out items, the supplier shall ensure that the Excise invoice should be
raised in the name of ""Nilanchal CementPvt Ltd, Noida A/c Supplier ," as
consignee. Duplicate copy of Excise invoice (Transporter's copy) should be sent

alongwith the Transporters and it should be ensured that the Transporter's copy
of Excise invoice is handed over to Owner's Site office.


7
(e) The Owner shall not reimburse the Excise duty incase the Excise invoice is not
drawn in the manner as mentioned herein above or if it does not contain the
necessary particulars required by the Excise Department for availment of
Cenvat Credit.
(f) Incase the CENVAT credit availed by the Owner is denied by Central Excise
Deptt, for reasons attributable to supplier and any Demand for the same is
raised on Owner along with interest and Liquidated Damages (LD), if any, the
amount so paid by the Owner including all expenses shall be borne by the
supplier.
5.3 Sales Tax
Contract Price is inclusive of Concessional Central Sales Tax @ 4%, applicable for
supply of finished items. The Owner will issue valid Sales Tax declaration “Form – C”
for this purpose to Supplier. Any variation in Central Sales Tax rate on finished items
supplied by the Supplier during the contractual delivery period or any extension
thereof shall be reimbursed at actual on production of documentary evidence. In case
of supply of items from the state of Madyapradesh, the price shall be inclusive of local
Sales Tax. The Owner shall issue Sales Tax declaration “Form“ for this purpose to
supplier, if any. If existing Central Sales Taxes are reduced or abolished, Owner will
be entitled to get the resultant benefit in full.
5.4 Sale in Transit
The Supplier shall make inter state / intra state sale as per provisions of the Central
Sales Tax Act 1956 / Sales Tax Act 1947, as the case may be, and all formalities
required shall have to be observed by the Supplier keeping in view all obligation to be
discharged under the contract. Any failure in this regard shall be to the Supplier’s
account.
5.5 Bought Out Items
For bought out finished items coming under the purview of the central sales tax act.,
the Supplier shall comply with the required formalities for availing the facilities
provided in the central sales tax act. for non-incidence of sales tax at two points.
Concessional sales tax form will be issued by the Owner in respect of bought out
items involving central sales tax as applicable, on production of subject suppliers
invoices. However, if the aforesaid sales tax is attracted at two points, the same shall
be borne and paid by the Supplier.
5.6 Sales Tax Declaration Form
The supplier/sub-supplier shall make sure that ST Form 18A is sent duly filled-in
along with the material and in case there is any lapse, the loss on account of the
same will be in your account.


8
5.7 Variation in taxes and duties
a) Sales Tax (CST) Only for change in CST rate
b) ED / CVD At actual
c) Custom duty / Exchange rate–on Bidder to Specify.

CIF content
d) New Taxes On actual
e) Octroi / Entry Tax Extra at actual against documentary

evidence
f) Price escalation for duration

of contract Not allowed
6.0 TIME SCHEDULE AND LIQUIDATED DAMAGES (LD) FOR DELAY
The basic considerations shall be the strict adherence to the time schedule of total
scope of supply.
The time for completion of engineering and supply of all items of supply shall not be
more than 16 months from the date of Letter of Intent/commencement, since the time
for completion for synchronisation (i.e commissioning) is 18 months from the date of
Letter of Intent/commencement. However, if there is delay in supply of equipment by
supplier leading to a delay in commissioning beyond 18 months or if due to supply of
faulty equipment commissioning is delayed beyond contractual commissioning
schedule, Bank Guarantee or 10 % of contract value due on commissioning will be
considered for applying LIQUIDATED DAMGES (LD) for delay. The LIQUIDATED
DAMGES (LD) will be 0.5% of contract price per week or part thereof subject to a
ceiling of 5% of contract value.
7.0 LIQUIDATED DAMAGES FOR SHORTFALL IN PERFORMANCE
The Supplier shall provide guaranteed performance for the complete scope of supply
and the values shall be binding on him. The supplier shall conduct performance test
indicated in contract document and prove the guarantees.
The terms under reference fall under two categories:
A. Items for which Liquidated Damages (LD) will be leviable for shortfall in
Performance.
B. Items for which shortfall in performance is not acceptable and which must be
corrected at no extra cost to the Owner.


9
Items for which Liquidated Damages will be leviable for shortfall in

performance.
i. Electrical Power Output
If there is a short fall in generation the loading for

Short fall will be Rs 50,000/KWHr
The plant will be liable for rejection if the plant capacity goes below 98% from the
MCR value ( Full load value).
ii. Gross Plant Heat Rate
If the measured heat rate (GCV basis) of plant is greater than the guaranteed value
as stated in the Schedules of Guarantees the owner shall have the right to recover the
following by:
Per kcal / kWhr or part thereof increase in heat rate

from guaranteed parameter value : Rs. 8.5 lacs
The plant will be liable for rejection if the increase in heat rate is more than 2% over
and above the guaranteed value.
iii. Auxiliary Power Consumption
The owner shall have the right to recover the following for each kW of power
absorbed by the auxiliaries for the plant or part thereof is in excess of guaranteed
value as stated in the Schedule of Guarantees.
Per kW increase in Auxiliary Power Consumption or

part thereof from guaranteed parameter value. : Rs 0.8 lacs
Auxiliary power consumption shall be measured by the gross power generated at the
generator terminal minus net power exported as measured at power evacuation
system.
If the auxiliary power consumption exceeds 350Kw over and above guaranteed value,
the plant will be liable for rejection.
iv. Make up Water Consumption

Per M3 /hr increase in Make up Water Consumption : Rs. 1.2 lacs
v. Unburnt Combustibles in Fly Ash
Shall be rectified at any cost
The cumulative sum of all liquidated damages for delay in supplied equipment and
performance (I to V mentioned above) shortfall will not exceed 10% of the Contract
value.


10
Owner retains the option to reject the equipment wherever the performance goes
below the minimum value indicated and in such case the Supplier shall replace the
equipment with one which shall meet the guaranteed values. The replacement shall
be done within a reasonable period of time as will be mutually discussed between the
two parties the owner and with no extra cost to the Owner; in such cases, however,
the liquidate damage for late completion will apply.
Items with no permissible deviation on Technical Performance confirmed as per

Contract
For all items shortfall in performance is not acceptable more than the permissible
tolerance wherever specified and shall be made good by the Supplier as under
compulsory correction. The performance shall be proved under worst grid conditions
as specified.
1. Availability of plant as proved by 15 days of continuous Reliability running of

TPP at full load.
2. Capability of boiler to run at 60% load without dip in superheater outlet

temperature.
3. TG vibration limits
4. Noise levels
5. Particulate Emission
6. SOx & NOx emission
7. Other parameters as stipulated in technical specification
For the items indicated above the Supplier shall carry out modifications to obtain the
performance. As these are primary parameters, these must be corrected even before
reliability run(if affect reliability) or during stabilisation period. And further, these
parameters must remain stable throughout the period of reliability run. All work related
to correction and subsequent reliability run to prove stability / reliability shall be
completed within the warranty period with no extra cost to the Owner. All the
corrections required shall be carried out at site, as far as possible; however, in the
event of any necessity for the Supplier to transport the equipment to his / sub-
vendor's works for any specific correction, it shall be his responsibility to carry the
equipment back and commission it at no extra cost to Owner.
If finally, in spite of all practicable effort on the part of the Supplier, the stipulated
guarantees on these parameters are not established, the Owner retains the option to
reject the equipment. In case the option to reject is exercised by the Owner, the
Supplier shall replace the rejected equipment within a reasonable period of time as
will be indicated by the Owner and achieve the performance as confirmed in the
Contract.
In the event of equipment rejection for reasons as covered above, it is obvious that
the overall project schedule will be affected. To minimise the loss due to such an


11
occurrence, the Owner retains the right to use as best as possible, the faulty
equipment until new replacement arrives at site for erection. Note should be taken
that as the faulty equipment has not been taken over by the Owner, the responsibility
for it lies entirely with the Supplier. During this period, the Supplier shall not limit the
use of the faulty equipment, except for reasons of safety during operation, both of
personnel and the equipment.
8.0 AFTER SALES SERVICES
The Supplier confirms that the owner can avail the after sale services without any
problem from its “After Sales Service Division”. This system should cater to all
sections of project including obtaining from OEM sources such services.
A maintenance contract services shall be made available for one year after
commissioning at terms and price to be mutually agreed.

VOLI-S3-Special Cond-Supply

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

VOLI-S3-Special Cond-Supply

Uploaded by

Copyright:

Available Formats

FICHTNER Consulting Engineers ( India ) Private Limited.

SUBJECT Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 3

PRICE SCHEDULE AND