Airport Authority of India

Tender for Detailed Project Report for Development of a Greenfield International Airport
at Chingen in Great Nicobar Island

1. Clause 10.15: Para 1: This clause can be interpreted to mean that Consultant’s
obligation to indemnify the Authority shall extend to those event which arise out of the
duties under this Agreement "which are attributed by the consultant."
There appears to be typo and is to be rectified as "which are attributed to by the
consultant."

Para 2: Consultant shall be liable to Authority for damages due to negligence,

incompetence, carelessness on part of the Consultant.

Para 3: It is self explanatory.

The clause read with Corrigendum Point 7 signifies that Authority has agreed that
limitation of liability given in 10.17 covers these indemnities.

2. Clause 10.17 (modified in Corrigendum Point 9): Limitation of liability is not clearly
worded.
A clear clause should be included in conditions of contract which fixes aggregate and
total liability of the consultant to a fixed % of the contract value.

However, from para 10.17 (c), it can be interpreted that in case of negligence or wilful
misconduct on the part of the Consultant resulting in damage caused to Authority’s
property, Consultant’s liability shall not exceed Agreement value. The way this clause is
worded, it is limited to damage caused to Authority’s property, but limitation of liability
clause should cover all aspects of liability.

As per (d), the limitation of liability does not include liabilities towards Third Party
claims and such limit shall be equal to Agreement value.

3. Clause 10.18: This provision pertains to project execution, therefore there are no
observations on the same.