List of Penalty Clauses for Kurnool 2 Project

Sr. No Clause No. Description of Clause

1 Clause No. 1.4 of Chapter 4 A token penalty of upto Rs. 10000/- per week or part
“General Condition of thereof in case the agency fails to submit the detailed
Contract” programme of work as per Para 19 of GCC July 2020.
2 As per Annexure D of Chapter Delay in deployment of Construction Machinery Tools,
6 Plants, Vehicles will attract a penalty
3 Clause no 5.0.(ii) of Chapter 7 The time for the execution of the work or part of the works
“Special Condition of specified in the contract documents shall be deemed to be
Contract” the essence of the contract and the works must be
completed not later than the date(s) as specified in the
contract. If the Contractor fails to complete the works
within the time as specified in the contract for the reasons
other than the reasons specified in Clause 17 and 17-A, the
Railway may, if satisfied that the works can be completed by
the Contractor within reasonable short time thereafter,
allow the Contractor for further extension of time
(Proforma at Annexure-VII of GCC 2020) as the Engineer
may decide. On such extension the Railway will be entitled
without prejudice to any other right and remedy available
on that behalf, to recover from the Contractor as agreed
damages and not by way of penalty for each week or part
of the week, a sum calculated at the following rates of the
contract value of the works.
4 Clause no 22.0 of Chapter 7 For contract value more than 2.00 Cr. contractors must
“Special Condition of establish suitable site office/camp office of minimum 1000
Contract” Sqft with all essential facilities at their own cost within one
month from date of issue of LOA. Failure to comply this will
result in penalty of 50,000/- (Fifty thousand) per month.
5 Clause no 41.0 of Chapter 15 The railways shall give notice to the contractor 15 (Fifteen)
“Special Condition and the days in advance regarding arrival of CSM machine for
specification for Track Works” carrying out two rounds of packing & to make track fit for
running of trains at a minimum speed of 80 Kmph. The
contractor shall complete all the works required for final
machine packing such as linking, ballasting & initial packing
before arrival of CSM in order to achieve better quality &
progress. Average progress of packing expected from the
machine is 04 T/Km per day per round of packing. If average
progress is less than 04 T/Km per day per packing due to
fault of the contractor a penalty of Rs. 8140/- per day will
be recovered from contractor’s bill.
6 Clause no 6.2 of Chapter 16 If during the process of welding certain joints are found
“Special Condition and the defective or not come up to the required standard and are
specification for Welding of rejected, no payment shall be made for such rejected joints.
Rail Joints”
 No penalty shall be levied for rejection up to 2% of the joints
welded but beyond that limit a sum of Rs.30/- per joint
rejected will be recovered. The rail and pieces will however,
be the property of the railway.
7 Clause no 27.6 under Penalty shall be levied on the tenderer for not maintaining
“Comprehensive Annual machine up time of minimum 90% calculated on working
Maintenance Contract” of days basis, after discounting for grace period and preventive
Chapter no 20 maintenance period. Penalty shall be calculated as %age of
“Special Condition of Contract quarterly payment and will be deducted from the respective
for Mechanical Works” quarterly payments. Penalty calculation will be done by
calculating average performance over a period of (3) three
months as per details given

Availability Applicable penalty

8 Clause no 27.6.(b) under
“Comprehensive Annual
Maintenance Contract” of
Chapter no 20
“Special Condition of Contract
for Mechanical Works”
9 Clause no 27.6(c) under
“Comprehensive Annual
Maintenance Contract” of
Chapter no 20
“Special Condition of Contract
for Mechanical Works”
10 Clause no 27.5.(a) under
“Comprehensive Annual
Maintenance Contract” of
Chapter no 20
“Special Condition of Contract
for Mechanical Works”
11 Clause no 25 of Part II of
Chapter 19
“Technical Specification of
Electrical Works”
slab
95 % to 90% 0.5% for every 1 % (or part thereof)
reduction in availability of plant below 95%
90 % to 85% 0.8% for every 1 % (or part thereof)
reduction in availability of plant below 90%
85 % to 80% 1% for every 1 % (or part thereof) reduction
in availability of plant below 85%
Below 80% 2 % for every 1 % (or part thereof) reduction
in availability of plant below 80%
In case the Bidder fails to provide AMC services successfully,
the CAMC Bank Guarantee (BG) will be forfeited. This will be
in addition to penalty as per clause given above
Plant up time of less than 70% for two consecutive quarters
will constitute complete failure to provide the CAMC
services successfully; the CAMC BG will be forfeited. This
will be in addition to penalty clause above for the period of
actual performance.
In case firm fails to attend the breakdown within 48hrs of
information (During AMC) a liquidated damage at the rate
of Rs. 10,000/- (Rs Ten Thousand) shall be imposed per day.
The maximum liquated damage that can be levied will be
2% of the Annual Value of the CAMC contract on each
occasion of lapse.
he guarantees to be furnished by the tenderer in respect of
the efficiencies of the transformers shall be subjected to the
following penalty.
“If the efficiency at any of the above outputs falls short of
the corresponding guaranteed figure by more than
tolerance specified in IS 2026 the transformer shall be liable
to be rejected by the Railway and the provisions under the
 relevant clause of the general conditions of contract shall
immediately become applicable.”
12 Clause no 20.3 of Chapter no 7 In case the Contractor fails to employ the Engineer, as
“Special Condition of aforesaid in Para 20.1, he shall be liable to pay Liquidated
Contract” damages at the rates, as may be prescribed by the Ministry
of Railways through separate instructions from time to time
for the default period for the provisions, as contained in
Para 20.1.
13 Clause no 56.2.(b) of Chapter 7 If in case during test check or otherwise, it is detected by the
“Special Condition of Engineer that agency has claimed any exaggerated
Contract” measurement or has claimed any false measurement for the
works which have not been executed, amounting to
variation of 5% or more of claimed gross bill amount, action
shall be taken as following:
(i) On first occasion of noticing exaggerated/ false
measurement, Engineer shall recover liquidated damages
equal to 10% of claimed gross bill value.
(ii) On any next occasion of noticing any exaggerated/false
measurement, railway shall recover liquidated damages
equal to 15% of claimed gross bill value. In addition the
facility of recording of measurements by Contractor as well
as release of provisional payment shall be withdrawn. Once
withdrawn, measurements shall be done by railway as per
clause 55.1 above.
14 Clause no 23.2 of Technical The successful bidder or his agent shall install and
Specification of Item No. 121 commission the machine within the time period stipulated
in Top sheet of tender document. The time allowed for
installation and commissioning of M&P by the successful
bidder or his agent shall be deemed to be the essence of the
contract. In case delay in commissioning of the M&P on the
part of successful bidder shall be liable to pay liquidated
damage at the rate of ½ (half) % per week of the contract
value of said item, subject to maximum 10(ten)% of the
order value of said items. The liquidated damage (LD) of this
item will be separate from the liquidated damage (LD) of
whole project in case of delay in installation and
commissioning