FICHTNER Consulting Engineers (India) Private Limited.

Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

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

SECTION - 7

PRICE SCHEDULE AND

SPECIAL CONDITIONS OF CONTRACT
(ERECTION, TESTING & COMMISSIONING)
FORMT9-P REV-B (MUM)

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008

 FICHTNER Consulting Engineers (India) Private Limited.
Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

FOR 1 X 20 MW TPP AT 3040720001-PM-SPC-700-001 B Sheet No.
JAINTIA HILLS, MEGHALAYA
2

SECTION - 7

PRICE SCHEDULE AND

SPECIAL CONDITIONS OF CONTRACT
(ERECTION, TESTING & COMMISSIONING)

CONTENTS

CLAUSE NO. DESCRIPTION SHEET NO.

1.0 GENERAL 3

2.0 STATUTORY APPROVAL FOR WORKS 3

3.0 CONTRACT PRICE 3

4.0 TERMS OF PAYMENT 3

5.0 BANK GUARANTEE 4

6.0 LIQUIDATED DAMAGES (LD) 4

7.0 ELECTRICITY AND WATER 4

8.0 TAXES AND BENEFITS 5

9.0 TIME SCHEDULE AND LIQUIDATED DAMAGES (LD) FOR

DELAY 5

10.0 TEST ON COMPLETION 5

11.0 LIQUIDATED DAMAGES (LD) FOR NON-PERFORMANCE 5

12.0 INSURANCE 6
FORMT9-P REV-B (MUM)

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008

 FICHTNER Consulting Engineers (India) Private Limited.
Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

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

SECTION - 7

PRICE SCHEDULE AND

SPECIAL CONDITIONS OF CONTRACT
(ERECTION, TESTING & COMMISSIONING)

1.0 GENERAL

1.1 Contractor shall submit equipment / system erection, testing and commissioning wise
billing schedule inline with EPC tender specification along with cash flow statement.

1.2 Contractor shall strictly follow the above billing schedule and cash flow statement in
execution of contract.

2.0 STATUTORY APPROVAL FOR WORKS

All statutory clearance/approval for works are in Contractor’s scope except approval
of State Electricity Board (SEB) U/S 44, Pollution Control Board(PCB) and aviation
clearance, which are in owner’s scope. However, all supporting papers and desired
assistance are to be provided by Contractor.

3.0 CONTRACT PRICE

3.1 The contract price for erection, testing &

commissioning of equipment at Nilanchal Cement,
Jaintia Hill, Meghalaya & comprehensive marine-cum-
storage-cum erection insurance. The prices are
inclusive of Central Sales Tax / Service Tax, if any.
However, excluding Octroi & local entry tax, if
applicable.

4.0 TERMS OF PAYMENT

4.1 The terms of payment for erection, testing and commissioning, Marine-cum-Storage-
cum-Erection Insurance are detailed herein.

4.2 For the Erection, testing & commissioning Services, Marine cum Storage cum
Erection Insurance till plant take over by the owner, terms of payment are as below:-

a) Interest free advance against BG 10% of contract value

b) Against release of all final construction drawings 5 % of contract value

b) Against erection on pro-rata basis against

FORMT9-P REV-B (MUM)

erection bills within 15 days after submission.

Bills to be submitted on monthly basis 75% of contract value

c) Against successful commissioning of plant 10% of contract value

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008

 FICHTNER Consulting Engineers (India) Private Limited.
Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

FOR 1 X 20 MW TPP AT 3040720001-PM-SPC-700-001 B Sheet No.
JAINTIA HILLS, MEGHALAYA
4

5.0 BANK GUARANTEE

5.1 Security deposit from zero date to 10% of contract value

Commissioning.

5.2 Performance Bank Guarantee valid 10% of contract value

From 2 months of LOI till successful
Performance test

5.3 Defect Liability period / Warranty 10% of contract value will be submitted
Bank Guarantee before commissioning valid for 12
months from take over or 15 months
from commissioning whichever is earlier.
(10% Bank guarantee given for security
deposit under clause 5.1 can be
extended/converted into Bank Guarantee
for warranty)

5.4 Latent Defect Liability 60 months from commissioning.

6.0 LIQUIDATED DAMAGES (LD)

(a) Liquidated Damages (LD) for delay ½ % of contract price per week’s delay
(or part thereof) with maximum of 5% of
contract value to be recovered from last
10% payment or Bank Guarantee for
performance.

7.0 ELECTRICITY AND WATER

The Contractor shall be entitled to use for the purposes of the Works such supplies of
electricity, water, if available with owner.

a) Rate of electricity in cement plant. As per mutually agreed terms. Owner

shall provide Electricity at two point (refer
Volume -III).

b) Rate of water at one point in Cement plant As per mutually agreed rates.

c) Note

Measuring meter of the above items will be in the scope of Contractor.

Contractor has to submit meter test certification from authorised agency.
FORMT9-P REV-B (MUM)

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008

 FICHTNER Consulting Engineers (India) Private Limited.
Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

FOR 1 X 20 MW TPP AT 3040720001-PM-SPC-700-001 B Sheet No.
JAINTIA HILLS, MEGHALAYA
5

8.0 TAXES AND BENEFITS

8.1 Tax deducted at Source

Any tax, which Owner may be required to deduct by law/statute, shall be deducted at
source and shall be paid to the tax authorities on account of the Contractor. Owner
shall provide the Contractor a certificate for such deduction of tax.

9.0 TIME SCHEDULE AND LIQUIDATED DAMAGES (LD) FOR DELAY

The basic considerations shall be the strict adherence to the time schedule of
Erection, Testing & Commissioning of equipment.

The Erection, Testing & Commissioning of the equipment shall be completed as per
agreed project schedule. However, if there is delay in erection, testing and
commissioning beyond agreed date, Bank Guarantee or 10 % of contract value from
last payment will be considered for applying Liquidated Damages (LD) for delay.

10.0 TEST ON COMPLETION

After all the systems have been completely stabilized and proved safe, the Owner
shall offer the systems as a whole for continuous and safe operation as a "reliability
run" at rated design load for fifteen (15) days of uninterrupted operation to their
satisfaction. The Owner may decide to reduce the period of 15 days if he is satisfied
with running of equipment of plant during the intervening period.

After the satisfactory reliability run, the unit shall be considered operationally reliable
and be ready for Performance Testing. The results would be evaluated and shall be
accepted by Owner if found satisfactory and bank guarantee for technical
performance shall be released to Contractor.

11.0 LIQUIDATED DAMAGES (LD) FOR NON-PERFORMANCE

A. For any defect in workmanship in Erection, Testing and Commissioning, which

may lead to power plant not being able to deliver guaranteed performance
(guaranteed by the equipment supplier), the Contractor shall have to pay
Liquidated Damages (LD) at the rates in proportion to the LIQUIDATED
DAMAGES (LD) of equipment performance, with the ceiling of 10% of Contract
Price.

B. Owner retains the option to reject the work wherever the workmanship is faulty
and affects the operation of power plant and Contractor shall carry out
necessary modifications / replacement to make good the defects within
reasonable time with no extra cost to the owner. However, the Liquidated
Damages (LD) for late completion will apply in case of delay in the project
completion.
FORMT9-P REV-B (MUM)

C. The cumulative sum of all Liquidated Damages (LD) for delay in completion of
work and shortfall in performance will not exceed 10% of the Contract value.

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008

 FICHTNER Consulting Engineers (India) Private Limited.
Subject Doc. No. Rev. Vol. / Sec.

EPC TENDER SPECIFICATION I / 7

FOR 1 X 20 MW TPP AT 3040720001-PM-SPC-700-001 B Sheet No.
JAINTIA HILLS, MEGHALAYA
6

11.1 Items with no permissible deviation on Technical Performance as per Contract

For all items under guarantee shortfall in performance is not acceptable more than the
permissible tolerance wherever specified and shall be guaranteed by the Contractor
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 running at full load.

2. Capability of boiler to run at 50% load without dip in superheater outlet
temperature.
3. TG vibration limits
4. Noise levels
5. Particulate Emission
6. SOx & NOx emission
7. Other guarantees as stipulated in technical specification

For the items indicated above the Contractor shall carry out modifications to obtain
the performance. As these are primary parameters, these must be corrected before
reliability run if it affects reliability run during the 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 guarantee period with no extra cost to the Owner. All the
corrections required shall be carried out at site, as far as possible;

In the event of rejection of erection work, which is faulty, it is obvious that the overall
project schedule will be affected. To minimise the loss due to such an 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 work if
it does not inhibit the operation of plant. During this period, the Contractor shall not
limit the use of the faulty equipment, except for reasons of safety during operation,
both of personnel and the equipment.

12.0 INSURANCE

Marine, Storage-cum-Erection Insurance is in the scope of Contractor for total

1 X 20 MW Power Project till commissioning including transit, storage and erection,
testing & commissioning insurance. The Contractor shall obtain sufficient insurance
coverage for marine storage, erection till commissioning with all risk. A copy of
Insurance Policy will be submitted to the Owner.
In case of damage to the equipment during transportation and handling it will be the
Contractor responsibility to inform the insurance agencies as well as to the Owner
with due promptitude.
FORMT9-P REV-B (MUM)

The beneficiary of insurance policy shall be the owner. The Contractor will obtain
N.O.C. from Owner before receiving the claim from Insurance Companies.

VOLI-S7-Special Cond-E&C AAA / ELEC 07-07-2008