3.0 Modified PCC by CBM and Than Corrected by Consultant

PARTICULAR CONDITIONS OF CONTRACT (PCC)
The following Particular Conditions of Contract (PCC) shall supplement the General
Conditions of Contract and both shall be read together. Clauses of the General Conditions of
Contract not specifically amended or supplemented shall remain in effect.
Whenever there is a conflict, the provisions in the PCC shall prevail over the General
Conditions of Contract.
1 GENERAL PROVISIONS
1.1 DEFINITIONS
1.1.1 The Contract
1.1.1.4 Add the following at the end of the paragraph:
‘Letter of Tender’ is synonymous with ‘Letter of Bid’.
The ‘Employer’s Requirements’ means the Technical Specifications
(General and Particular), the Technical data sheet forming Volume 3;
the Drawings and the Contract Documents and any additions and other
supporting documents modifications to such documents in accordance
with the contract.
The ‘Schedule’ means the Schedule of Prices forming part of the tender
and Contract Documents.
The word ‘Tender’ is synonymous with the word ‘Bid,’ the word
"Tenderer" with "Bidder", the word "Tendering" with "Bidding" and the
words "Tender Documents" with "Bidding Documents" and the words
‘Letter of Tender’ with ‘Letter of Bid’.
The words ‘Appendix to Bid’ is synonymous with ‘Appendix to
Tender’.
1.1.2 Parties and Persons
1.1.2.2 Replace the whole text of this Sub-Clause with the following:
The ‘Employer’ means the Omega Energy Developer Pvt. Ltd.
1.1.2.4 Replace the whole text of this Sub-Clause with the following:
The “Engineer” is the Consultant appointed by the Employer, and will
act as ‘The Engineer’ for the purposes of this contract. The Contractor
will be notified in writing by the Employer in the event of any change
in the Engineer.
Add the following new Sub-Clauses 1.1.2.11 to 1.1.2.14
1.1.2.11 ‘Government’ means the Government of Nepal.
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Particular Conditions of Contract (PCC)
1.1.2.12 ‘Other Contractors’ or ‘Others’ means any party or parties which have
a direct contract with the Employer for work related to this project
outside the scope of this Contract, including their subcontractors.
1.1.2.13 ‘Financier’ means the financing institution/s of the Project.
1.1.2.14 ‘Resident Engineer’ means an assistant to the Engineer who will be
resident on the Site and is appointed from time to time by the
Engineer under Sub-Clause 3.2 and notified to the Contractor.
1.1.4 Money and Payments
1.1.4.2 Replace the whole text with the following:
Contract Price’ means the sum stated in the Letter of Acceptance as
payable to the Contractor for the execution and completion of the
works subject to such additions thereto or deductions therefrom as
may be made under the provisions of the contract and remedying of
any defects therein in accordance with the provisions of the contract.
The Foreign Currencies’ mean/s United States Dollar (USD) or
Indian Rupees (INR) or Nepalese Rupees, in which part of the
Contract Price is payable.
‘The Local Currency’ mean/s the Nepalese Rupee (NRs).
1.1.6 Other Definitions
The Country means Nepal
‘Site’ means the places where the Permanent Works are to be
executed, including access roads, site installations, workshops,
storage and working areas, and to which Plant and Materials are to be
delivered, and any other places as may be specified in the Contract as
forming part of the Site.
Add the following new Sub-Clauses 1.1.6.10 to 1.1.6.13
1.1.6.10 ‘Project’ means the Suni Gad Hydropower Project.

1.1.6.11 “The Project Area” means the area enclosed in between the following
geographical coordinates:
Longitude: 810 11’ 46” E - 810 14’ 16” E
Latitude: 290 36’ 10” N to 290 40’ 00” N
The project area lies in Chainpur Municipality, Surma Rural
Municipality and Telkot Rural Municipality, Bajhang District, and
Sudurpashchhim Province of Nepal.
1.1.6.12 ‘or approved equivalent’ means an item such as material or equipment
which may be substituted for the exact item specified since it is
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substantially equivalent in function, dimensions, quality and
durability, provided that such substitution is:
(a) proposed in writing to the Engineer for approval accompanied by
sufficient information such as catalogues, test data, specifications,
references, etc., and
(b) following approval by the Engineer, is delivered sufficiently in
advance so as not to interrupt the progress of the Works or to
extend the scheduled date for delivery of material.
1.1.6.13 "Management Meeting" means a meeting called by the Engineer in
accordance with Sub-Clause 3.6.
1.2 INTERPRETATIONS
Replace the text in sub-paragraph (d) by the following:
(d) ‘written’ or ‘in writing’ means hand-written, type-written or printed,

and resulting in a permanent record. E-mail or any other form of
similar electronic communication will be considered as a form of
“writing”
Add the following new paragraph at the end of the Sub-Clause:
(e) In these Conditions, provisions including the expression ‘Cost plus

profit’ require this profit to be one-tenth (10%) of this Cost unless
otherwise indicated in the Contract Data
1.3 COMMUNICATIONS
Add the following sentences at the end of the last paragraph:
When a notice is issued to the Engineer by the Contractor, a copy shall be sent
to the Employer, in respect of the followings and also in other cases stated
elsewhere in the Contract:
(i) claims as per Sub-Clause 1.9, 4.12, 4.24, 16.1, 17.4, 19.4;
(ii) delivery to Site of Plant or other major items as per Sub-Clause
4.16;
(iii) prolonged suspension as per Sub-Clause 8.11;
(iv) variation requests as per Sub-Clause 13.1 and Value Engineering
as per Sub-Clause 13.2; and
(v) application for a Taking-Over Certificate as per Sub-Clause 19.1.
Add the following new paragraph at the end of this Sub-Clause:
The Engineer may require the Contractor to attend a management meeting in

order to review/discuss any programming, planning or resources for future
work or any other matters pertaining to the Contract. The Engineer will notify
the Contractor no less than 07 days in advance of such a meeting, and the
Contractor’s Representative and such other senior staff of Contractor as shall
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be agreed with the Engineer shall attend the meeting. The Engineer will record
the business of management meetings and will supply copies of the record to
the parties attending the meeting and to the Employer. Such records of
management meetings shall include clear identification of responsibilities for
any actions to be taken in accordance with the Contract.
1.4 LAW AND LANGUAGE
Replace the text of this Sub-clause by the following:
The Contract shall in all respects be read and construed in conformity with the
laws of Nepal.
The Contract shall be construed and interpreted according to the English
language, which shall be the language for all communications between the
Employer, the Engineer and the Contractor, as well as for all contract
documents, technical information and data, literature, books, drawings,
standards, test data, instructions, directions, and all documents,
correspondence, or submittals.
1.5 PRIORITY OF CONTRACT DOCUMENT
Delete the documents listed as (a) to (h) in the sub clause and substitute the
following:
(a) The Contract Agreement,

(b) The Letter of Acceptance, including the Memorandum of Understanding
(MoU) and/or Minutes of Meeting (MoM), (if any)
(c) The Letter of Bid,
(d) The Appendix to Tender
(e) The Particular Conditions of Contract,
(f) The General Conditions of Contract,
(g) The Completed Technical Data Sheets,
(h) The Particular Technical Specifications,
(i) The General Technical Specifications,
(j) The Priced Schedule of Prices,
(k) The Bid Schedules,
(l) The Tender Drawings and Construction Schedule,
(m) The Completed Bidding Forms,
(n) The Contractor’s Proposals, including all Forms, Schedules and Data
Sheets, as completed by the Contractor, in Volumes 1, 2 and 3 of the
issued Bidding Documents in as much as these are not already included
within the documents listed in (a) to (m) above
(o) The Instructions to Bidders,
(p) The Bid Data Sheet
(q) Any other documents forming part of the Contract
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1.6 CONTRACT AGREEMENT
Add the following at the end of this Sub-Clause:
The Base Date, the Accepted Contract Amount and, if known at the time of
signing the Contract Agreement, the Commencement Date and the Completion
Date shall be entered into the Contract Agreement.
1.7 ASSIGNMENT
Any modifications in the constitution of the Contractor or in joint venture to its

participation which have the effect of such modification in the effective control
of the Contractor shall be deemed to be an assignment that requires the prior
approval of the Employer under this Sub-Clause.
1.8 CARE AND SUPPLY OF DOCUMENTS
‘The Contractor shall supply to the Engineer and the Employer the number and
types of Contractor’s documents as stipulated in the Technical Specifications
or elsewhere in the Contract, but shall otherwise supply a minimum of two
copies of the Contractor’s Documents to the Employer together with one copy
of the electronic version thereof and three copies to the Engineer together with
one copy of the electronic version thereof.
In addition to any other Contractor’s Documents necessary under the Contract,
the Contractor shall be responsible for the preparation of detailed
manufacturing and installation drawings, subject to the Engineer’s approval, in
accordance with the Specifications using AutoCAD software (with approved
version) based on the drawings issued in the Tender documents and any other
drawings as may be issued from time to time by the Engineer. Such detailed
manufacturing and installation drawings shall include, detailed drawings for
Mechanical, Electrical and Hydro-mechanical components.
In accordance with the Specifications, the Contractor’s Documents shall also
include all necessary detailed calculations for the Permanent Works as well as
all Temporary Works (please delete TemporaryWorks Works) including
manufacturing and installation stages, subject to the Engineer’s approval.
In the preparation of the calculations and drawings, the Contractor shall
anticipate and be responsible for updating the Contractor’s Documents to
incorporate the following;
- Changes to suit modification arising from the encountered conditions
revealed during construction, including instructions issued by the
Engineer;
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- Drawing revisions issued by the Engineer and/or other contractors
required by the construction of the Civil Works and Hydro-mechanical
Works and arising from the specified liaison with other contractors.
The Contractor shall also be responsible for the preparation and submission for
approval of “as-built” drawings and documents for the Works as finally
constructed, subject to the approval of the Engineer.
All such Contractor’s Documents shall be subject to the approval of the
Engineer and the Employer prior to commencement of work covered by the
drawings and documents, and in his planning of the work the Contractor shall
allow 1430 d days for obtaining the approval or detailed comments of the
Engineer.
1.9 ERRORS IN THE EMPLOYER’S REQUIREMENT

Delete all the paragraphs of this Sub-Clause and substitute the following:
‘The Contractor shall review the Drawings, documents and other information
which he receives from the Engineer or Employer and shall notify the Engineer
and Employer in writing of any errors or omissions in such drawings,
documents or information in order for the Engineer or Employer to be able to
make the necessary changes or corrections thereto. The Contractor shall be
responsible for the correctness of the Drawings, documents and other
information received from the Engineer or Employer except in the case that the
Contractor has notified the Engineer or Employer of such errors or omissions
and the Engineer or Employer has not made the necessary related changes or
corrections.
1.12 CONFIDENTIAL DETAILS
“Each of the Parties shall treat the Contract Document and details of the
Contract as private and confidential, except to the extent necessary to carry out
their respective obligations under the Contract or to comply with applicable
Laws and save insofar as may be necessary for the purposes of the Contract.
Each of them shall not publish or disclose any particulars of the design and of
the Works prepared by the other Party without the prior consent of the other
Party. However, the Contractor shall be permitted to disclose any publicly
available information, or, with the prior consent of the Employer, information
otherwise reasonably required to establish its qualifications to compete for
other projects. If any dispute arises as to the necessity of any publication or
disclosure of the details of the Contract, the same shall be referred to the
Employer whose determination shall be final. The Contractor shall ensure that
the requirements imposed on the Contractor by this Sub-Clause apply equally
to each Subcontractor.”
1.13 COMPLIANCE WITH LAWS
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Applicable law shall be the prevailing laws of Nepal and the Contract shall in
all respects be read and construed in conformity with the Laws of Nepal.
Add the following new Sub-Clause 1.15:
1.15 INSPECTIONS BY THE FINANCIER

Upon instruction from the Engineer, the Contractor must permit the Financier
and/or persons appointed by the Financier to inspect the Site and provide them
with the audited Contractor’s general ledger accounts and records relating to
the performance of the Contract.
2 THE EMPLOYER
2.2 PERMITS, LICENSES OR APPROVALS
The Contractor shall be responsible for obtaining all import permits, licenses or
approvals etc. for his own machinery only and contractor’s equipment, and the
Employer shall not incur any liability towards the Contractor except for
issuance of P.B.G on behalf of contractor whose bank issuance charges may be
debited to the contractor..
The Contractor shall inform the Engineer and Employer in writing of the
details of the Equipment, Plants and Materials to be imported into Nepal for
the use on the Works at least 4556 days prior to arrival of shipment at
disembarkation port, and shall submit a formal written request for assistance
from the Employer for importation processing for contractor’s equipment.
The Employer will assist the Contractor to obtain the necessary permits for the
imports into Nepal. Import license fees or any other charges shall be at the cost
of the Contractor. The Contractor shall be responsible for all transport,
including from the point of entry into Nepal to the Site or location of the
Works.
The Contractor shall determine and be fully responsible for payment of all
import licenses, fees or other such charges as may be imposed by the local or
any en-route customs authorities for his own machinery, plants and equipment.
However, in case of any provisional bank guarantee is to be provided for
import of machinery, the same will be provided by Employer and all the costs
incurred for issuance of the same shall be deducted from the contractor.
3 THE ENGINEER
3.1 ENGINEER’S DUTIES AND AUTHORITY
Amend Sub-Clause 3.1 by replacing the word “may” in the first sentence of the
third paragraph with the word “shall”.
Delete the following sentence from the third paragraph:
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The Employer undertakes not to impose further constraints on the Engineer's
authority, except as agreed with the Contractor.
and substitute by the following:
The Employer will promptly inform the Contractor of any change to the
authority attributed to the Engineer.
Add following sub-paragraph (d) after sub-paragraph (c):
(d) any act by the Engineer in response to a Contractor’s request, except as

otherwise expressly specified, shall be notified in writing to the Contractor
within 28 days of receipt.
Add the following new paragraphs at the end of this Sub-Clause:
“The Engineer shall obtain the specific approval of the Employer before taking
any of the following actions under the-following Sub-Clauses of these
Conditions:
(i) Sub-Clause 4.4 [Subcontractors]: consenting to the subcontracting of any
part of the Works, and approval of the relevant subcontractors, under Sub-
Clause 4.4;
(ii) Sub-Clause 4.12 [Unforeseeable Physical Conditions]: Agreeing to or
determining an extension of time and/or additional cost;
(iii) Sub-Clause 8.4 [Extension of Time for Completion]: Agreeing to or
determining an extension of time;
(iv) Sub-Clause 8.8 [Suspension of Work]: Instructing the Contractor to
suspend the progress of the Works under Sub-Clause 8.8 which would be
liable to give rise to a determination under Sub-Clause 8.9;
(v) Sub-Clause 10.1 [Taking Over of the Works and Sections]: Issuing a
Taking oOver Certificate-
Not Applicable
(vi) Sub-Clause 13.1 [Right to Vary]: Instructing a Variation-Not Applicable
(vii) Sub-Clause 13.3 [Variation Procedure]: Approving a proposal for
Variation submitted by the Contractor in accordance with Sub-Clause 13.1
[Right to Vary] or 13.2 [Value Engineering],-Not Applicable
(viii) Sub-Clause 20.1 [Contractor’s Claims]: Determining an additional
payment for Claims-Not Applicable
Notwithstanding the obligation, as set out above, to obtain approval, if, in the
opinion of the Engineer, an emergency occurs affecting the safety of life or of
the Works or of adjoining property, he may, without relieving the Contractor of
any of his duties and responsibility under the Contract, instruct the Contractor
to execute all such work or to do all such things as may, in the opinion of the
Engineer, be necessary to abate or reduce the risk. The Contractor shall
forthwith comply, despite the absence of approval of the Employer, with any
such instruction of the Engineer. Within 7 days of having issued such
emergency instructions, the Engineer shall submit written documentation of
8
such instructions to the Employer. The Engineer shall determine an addition to
the Contract Price, in respect of such instruction, in accordance with Clause 13
[Variations and Adjustments] and shall notify the Contractor accordingly, with
a copy to the Employer together with the justification of emergency
occurrence.
The Engineer will coordinate the activities of the various contractors working
at the site. In addition to this Lot 02 Hydromechanical Works Contract, the
Employer has tendered or will tender contracts for, but not limited to the
following:
Lot 03 - Construction of Civil Structures
Lot 05 - Electromechanical Works
Lot 06 - Transmission Line and Interconnection Works
The Contractor will be expected to cooperate with the other contractors and to
furnish support facilities specifically called for in the Specifications.
(To be specified). In addition, each contractor must afford to the others, safe
and reasonable access, clean and clutter free work areas, temporary services
called for in the Specifications, space in construction yards for storage, pre-
fabrication yards and pre-assembly of materials and equipment, such other
cooperation and assistance as may be reasonably implied. The Engineer will
conduct regularly scheduled coordination meetings amongst those contractors
requiring interfacing, and the Engineer will endeavor to keep each contractor
adequately informed as to schedule, impending activities, and assistance
required by other contractors, all to the extent required by the Work. The
Contractor will be expected to participate in all coordination meetings when
and as requested by the Engineer and will be expected to comply with the
subsequent implementation of all activities agreed to as arising therefrom. In
the event disputes arise between contractors, either during the coordination
meetings or subsequent implementation of activities, the Engineer will issue
instructions in writing as specified under this Sub-Clause 3.1.
3.4 REPLACEMENT OF THE ENGINEER
Delete the following words of this Sub-Clause:
not less than 42 days
not less than 14 days
Add the following new Sub-Clause 3.6 to 3.7:
3.6 MANAGEMENT MEETINGS

Whenever the Engineer is requested or required to meet with the authorized
representative from the Contactor to discuss any programming, planning or
resource matters related to future work or any other matters pertaining to the
Contract, the Engineer will notify the Contractor no less than 07 day in
advance of such a meeting, and the Contractor's Representative and such other
9
senior staff of the Contractor as shall be agreed with the Engineer shall attend
the meeting. The Engineer shall record the business of these meetings and
supply copies of the record to those attending the meeting. In the records of
such meetings, clear identification of responsibilities for any actions to be
taken shall be noted and be in accordance with the requirements of the
Contract.
3.7 EMERGENCY WORK

If in the opinion of the Engineer, an emergency occurs affecting the safety of
life or of the Works or of adjoining property, he may, without relieving the
Contractor of any of his duties and responsibilities under the Contract, instruct
the Contractor to execute all such work or to do all such things as may, in the
opinion of the Engineer, be necessary to abate or reduce the risk. The
Contractor shall forthwith comply with the instructions of the Engineer.
If the emergency action involves work which the Contractor was liable to do at
his own expense under the Contract, the reasonable cost of that work shall be
recoverable from the Contractor by the Employer. As soon as practicable after
the taking of the action the Engineer shall notify the Contractor of the
emergency and thereafter confirm in writing its extent and the cost of the
emergency work carried out.
If the emergency action involves work which the Contractor was not liable to
do at his own expense under the Contract, Clause 13 [Variations and
Adjustments] shall apply.
4 THE CONTRACTOR
4.1 CONTRACTOR’S GENERAL OBLIGATIONS
The Contractor shall, in accordance with the Contract, with due care and
diligence, complete the Works within the Time for Completion. In the event
that an item mentioned in the Schedule of Price fall short in the description of
one or more of its components, but such components are deemed necessary for
that item to serve the purpose it was intended to, then the Contractor is
compelled under this Contract to execute such item complete will all its
components that would guarantee its functionality, and to do so with no
additional cost and with no extra time allowance.
4.2 PERFORMANCE SECURITY
Replace the first two paragraph of this Sub-Clause with the following:
The Contractor shall obtain at his own cost a Performance Security for his
proper performance under the Contract in the amount of the percentage of the
Accepted Contract Amount stipulated in the Appendix to Tender. The
Contractor shall deliver the Performance Security to the Employer within 21
days after signing of the detailed contract agreement and shall simultaneously
submit a copy to the Engineer.
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The Performance Security shall be in the form of irrevocable either from a
Nepalese Bank or from a Foreign Bank, as stipulated by the Employer in the
Volume 1 Part 7 Contact Forms.
The bank guarantee shall be issued by a class “A” commercial bank located in
Nepal or by a foreign bank counter guaranteed by a class “A” commercial bank
acceptable to the Employer located in Nepal. The foreign bank issuing the
Performance Security must have as a minimum of an “A” Rating determined
by one of the following rating agencies: Moody’s, Standard and Poor’s, Fitch
or DBRS (Dominion Bond Rating Service). The Performance Security shall be
denominated in the types and proportions of currencies in which the Contract
Price is payable.
Without limitation to the provisions of the preceding paragraph, whenever the
Engineer determines an addition to the Contract Price as a result of a change in
cost and/or legislation or as a result of a variation amounting to more than 25%
of the portion of the Contract price payable in a specific currency, the
Contractor, at the Engineer’s written request, shall promptly increase the value
of the Performance Security in that currency by equal percentage. The
Performance Security of a joint venture shall be in the name of the joint
venture.
Replace the third paragraph with the following:
The Performance Security shall be valid until a date minimum of 30 days

beyond the Defect Notification Period.
4.3 CONTRACTOR’S REPRESENTATIVE
Replace the last paragraph of this sub-Clause with the following:
The Contractor’s authorized representative shall be competent in speaking,

reading and writing English, and in the use of English engineering and
contractual terminologies. In addition, the Contractor shall have available on
Site at all times a sufficient number of competent staff and/or interpreters to
ensure the proper transmission and reception of instructions and information in
the English language.
An authorized representative of the Contractor shall be at the site and the
location of any of the work at all times. Whenever the Contractor’s site
representative is not present on any part of the work where the Engineer may
be desired to give direction orders or instructions, such direction, orders, or
instructions shall be received and observed by the Contractor’s superintendent
or foreman as the authorized representative in charge of the work. Any order
given by the Engineer, not otherwise required to be in writing, shall, at request
of the Contractor, be given or confirmed in writing.
The Contractor shall file with the Engineer, the names, address and telephone
numbers of representatives on Site, or at any other Contractor’s local or
regional offices, who can be contacted at any time, in case of emergency.
These representatives shall be fully authorized and equipped to correct unsafe
or excessively inconvenient working practices on short notice.
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4.4 SUBCONTRACTORS
At the end of this Sub-Clause add following paragraphs:
In order to obtain the Engineer’s consent pursuant to (b) above, the Contractor
shall submit an application to use these Subcontractors together with all
necessary supporting documents, which shall also include not less than the
following information for each Subcontract to the satisfaction of the Engineer:
(i) The name, address, telephone and fax numbers and email address of the
Sub-Contractor;
(ii) The nature and scope of the Works to be subcontracted;
(iii) Information on the Subcontractor’s experience of carrying out similar

Works and details of the Subcontractor’s site supervision, sources of
labor and equipment and financial capabilities, all in sufficient detail to
enable the Engineer to determine the ability of the Subcontractor to
undertake and successfully complete the Works to be subcontracted
within the time and to the standards required by the Contract.
(iv) The approximate value of the Works to be subcontracted based on the

prices in the Contract;
(v) The percentage of (iv) above as a proportion of the Accepted Contract

Amount or, in the information submitted with the Bid, of the Bid Price,
and the percentage of all Works to be subcontracted together as a
proportion of the Bid Price;
(vi) Confirmation that the proposed Subcontract agreement includes all the
necessary terms and conditions and covers all obligations and
responsibilities contained in the Contract in so far as these apply to the
Subcontractor including with respect to assignment and subcontracting
and the requirement for the Engineer’s prior consent thereof.
In the event of approved subcontracting the Contractor shall ensure that the
Subcontractor does not further sub-let his Subcontract. The Contractor shall be
responsible for keeping a log showing following information of all
Subcontractors engaged in the Works:
 Name and address of the Subcontractors
 Date of Subcontract
 Works included in the Subcontract
 Commencement of Subcontract
 Completion of Subcontract
 Value of Subcontract
 Payment
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The Contractor shall include in his monthly reports to the Engineer details of
all Subcontracts entered into, the names of the Subcontractors concerned, and
the numbers and types of staff and labour from each Subcontractor present on
Site during the month.
If requested by the Engineer, the Contractor shall provide copies of any
documents such as wage sheets and details of the names and employment
references for the Subcontractor's staff and labour on Site, invoices for the
supply of materials to be used by the Subcontractor, etc.
4.6 CO-OPERATION
At the end of this Sub-Clause add the following paragraphs:
The Project involves other contracts including in particular Lot 03-

Construction of Civil Structures, Lot 05 – Electromechanical Works, Lot 06 –
Transmission Line and Interconnection Works for the execution of the various
other Works in the project which will be performed concurrently with the
Works under this Contract. The Contractor shall co-ordinate his general day to
day activities with the Employer’s other contractors to avoid hindrances and
obstructions of the Employer’s other contractors as far as is appropriate and
reasonable. This will include co-ordination and co-operation with the
Employer’s other contractors at any interface between the work of this
Contract and the work of the Employer’s other contractors and for joint use of
facilities such as roads, site installation areas and other general site services.
Such general co-operation shall be foreseen and provided for in the
Contractor’s programming and is deemed to be included in the Accepted
Contract Amount.
Particular requirements for coordinated working with other contractors are
included in Volume 3 Part 1 General Technical Specification, Clause 1.10
Interfaces Details. This shall include interfaces within structures for which the
Civil Contractor is responsible as well as at other structures and locations.
For these combined activities the Contractor will make prior planning, in co-
operation with the Engineer and the Employer’s other contractors, to prepare
for and execute these combined activities and to make every reasonable effort
to facilitate these activities within the performance of the Works.
No claim for delay arising from interfaces between the Contractor and other
contracts shall be admissible unless the Contractor can demonstrate that the
Contractor has attempted to provide all reasonable liaison and co-ordination in
accordance with the requirements of the Contract but that nevertheless
unavoidable or unreasonable delays with respect to the progress of the Works
have been incurred by the Contractor as a direct result of the actions or
omissions of the other contractors.
The Employer may claim against the Contractor for the amount to be
compensated to the other contractors if any claim is resulted from other
contractors due to non-coordinated works by the Contractor
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4.7 SETTING OUT
Delete the following words from the second paragraph of this Sub-Clause:
‘’but the contractor shall use reasonable efforts to verify their accuracy before
they are used. However, final points shall be considered as given by the
Employer.’’
And substitute by the following:
‘Nevertheless the Contractor shall be responsible for the verification of the

survey control points, benchmarks and such other information provided to him,
and any errors or delay in the Works caused by the Contractor’s failure to
verify the accuracy of such data will not be an acceptable cause for an
extension of time or payment of additional cost by the Employer’-Not
Applicable
4.8 SAFETY PROCEDURES
At the end of this Sub-Clause add the following paragraph:
“The Contractor shall notify the Engineer and Employer within 48 hours or as
soon as reasonably possible after the occurrence of any accident which has
resulted in damage or loss of property, disability or loss of human life, or
which has or which could reasonably be foreseen to have a material impact on
the environment and shall submit to the Engineer and Employer no later than
28 days after the occurrence of such an event, a summary report thereof.”
4.10 SITE DATA
The Contractor acknowledges that he has satisfied himself as to the nature and
location of the Works and the general and local conditions, including but not
limited to those bearing upon transportation, disposal, handling and storage of
Goods, availability of water, roads, access to the site, coordination with other
contractors, and conflicts, if any. Any failure by the Contractor to become
acquainted with the available information and existing conditions shall not be a
basis for relief from successfully performing the Works and shall not, in any
case whatsoever, constitute for additional compensation.
The Employer shall provide necessary access to all areas at site for execution
and completion of the works as requested by the contractor.
If the Contractor finds discrepancies in or omissions from the Contract
Documents, or if the Contractor is in doubt as to their meaning, the Contractor
shall notify the Engineer or his authorized representative. The Contractor shall
not proceed without direction in writing from the Engineer or his authorized
representative.
If the Contractor considers it necessary for his own purposes, in order to fulfill
his obligations under the Contract and execute the Works, he may conduct,
after seeking and obtaining approval from the Engineer, additional site
14
investigations including subsurface investigations. A copy of the interim and
final records, test results and reports from all such additional site investigations
shall be submitted to the Engineer within 7 days of their receipt by the
Contractor. Such activities shall be carried out without prejudice, by the
Contractor on its own.
4.11 SUFFICIENCY OF THE ACCEPTED CONTRACT AMOUNT
The Accepted Contract Amount, unless otherwise specified in the

Specifications and Price Lists or elsewhere in the Contract Documents, shall be
understood to include all costs and provisions required for the correct
execution of the Works in compliance with the Construction Time Schedule.
The Accepted Contract Amount shall include not only costs for supply of
plant, equipment, materials, and allowance for bulking, shrinkage or waste, but
also wages and salaries for the Contractor's personnel. They also include,
without being limited to, the following:
• Cost of transportation to the Site and costs for provision, operations and
maintenance of the complete plant and equipment necessary for the
execution of the Works as well as costs of equipment for transportation,
machines, including all expenses for the setting up, operations,
maintenance and support of workshops, storage areas, warehouses, offices,
access roads within the Site etc., used by the Contractor, but not provided
by the Civil Contractor or Employer.
• Cost of intermediate storage including loading/unloading at Site or at
other locations required by the Contractor of all materials for the
Works under the Contract, transportation to the place of
construction, transportation to erection point,, Provision of all tools
and other construction equipment, temporary and permanent
materials and consumables necessary for the construction as well as
all tools and equipment for the performance of tests on materials and
of individual parts of the Works under the Contract.-Not Applicable,
Intermediate storage if any, to be borne by Employer only at his own
cost
• Cost of providing and maintaining suitable and safe storage of materials
while en-route to the Site, factory or at any other location prior to delivery
to the Site.
• Cost of electricity required for the execution and completion of the Works.
• All additional costs due to any kind of difficult working conditions.
• Separation allowances, travelling allowances, hotel and travelling
expenses, holiday and vacation salaries, other accommodation and related
costs and all other allowances and project related costs for employees and
laborers.
• Cost of the premiums for all required insurance policies.
15
• Cost of bank guarantees or payment or other surety securities required
under this Contract.
• Any kind of taxes, duties, charges, surcharges in Nepal or abroad for
contractor’s equipment or machinery whether stipulated in the Contract
documents or not and as may be required.
• Cost of any freight for imported materials including sea-worthy and/or
tropicalized packing, if required, and all other handling, and transport to
the Site of labor, materials, supplies, equipment, plant, etc.
•
• Cost of environmental protection measures, monitoring and reporting, and
all health and safety measures which are in addition to those items in the
Price Lists and as may be required in accordance with any regulations-Not
Applicable
• All expenses for royalties, licenses, liabilities and the like in connection
with the Works. Not Applicable
• Services for normal and/or specified material tests (including laboratory tests). The
particular tests will be fixed by the Engineer and shall be executed in approved laboratories.
• Cost of field surveys. The required points of reference and benchmarks
will be indicated by the Engineer. Not Applicable
• Cost of all other Contractor's obligations under this Contract.
• Site, head office and other support office overheads and profits.
All Contract prices shall be fixed for the duration of the Contract.
4.12 UNFORESEEABLE PHYSICAL CONDITIONS
At the end of the second paragraph of this Sub-Clause add the following:
but in any case within 14 days of encountering such adverse physical

conditions.
Without limitation to any other responsibilities of the Contractor under this

Contract, it shall be the responsibility of the Contractor to overcome the
difficulties, and to complete the Works in any circumstances that arises
because of the following risks:
• a) that the Contractor's own interpretation of the information given in the
Contract proves to be incorrect or inaccurate.; Not Applicable
• b) that the methods and Plant employed by the Contractor prove to be
incorrect or insufficient for the conditions. Not Applicable
4.14 AVOIDANCE OF INTERFERENCE
At the end of the Sub-Clause add the following paragraph:
16
‘The Contractor shall reinstate only damaged properties whether public or
private which are damaged in consequence of the execution and/or
maintenance of the Works to a condition as specified and at least equal to that
existing before his first entry on them.
If in the opinion of the Engineer the Contractor shall have failed to take prompt
action with respect to his obligations in the matter of reinstatement, the
Engineer will inform the Contractor in writing of his opinion, with a copy to
the Employer, in which circumstances the Employer reserves the right to
employ others to do the necessary reinstatement work and to deduct the cost
thereof from any money due or which shall become due from the Employer to
the Contractor.’
4.15 ACCESS ROUTE
The Contractor's attention is directed towards the permissible load-bearing

capacities of the existing road and bridges along the public road network. The
Contractor shall be responsible for satisfying himself that any of his vehicles or
equipment which he intends to pass over any of the existing bridges in the area
will not damage or endanger the integrity or safety of the general public,
roadways, associated structures and other traffic and vehicles of the general
public.
In the event that the Contractor proposes to carry out any strengthening or
supporting works of any bridge or associated structure or roadway in order to
permit the use of heavier or larger vehicle, for the purposes of executing the
Works under the Contract, the Employer shall be responsible for obtaining all
necessary approvals and permissions as may be required from the authorities
concerned which own or are responsible for operation of such bridges,
structures or roadways. The Contractor shall submit to the Engineer a copy of
all such requests for approval or permission within 7 days of submission of the
original request to the authority concerned, including all supporting drawings,
calculations and other information-Not Applicable
4.16 TRANSPORT OF GOODS
At the end of this Sub-Clause add the followings:
(d) The Contractor shall deliver and store products, materials and equipment in
accordance with manufacturer’s recommendations and by methods and means
that will prevent damage, deterioration and loss including theft. Delivery
schedules shall be controlled to minimize long-term storage of products at site
and overcrowding of construction spaces. In particular, the Contractor shall
ensure coordination to warrant minimum holding or storage times for
flammable, hazardous, easily damaged or sensitive materials to deteriorate or
be subject to theft and other sources of loss.
Re-handling costs or midway storage costs due to any reason whatsoever shall
be borne by Employer.
17
4.17 CONTRACTORS EQUIPMENT
At the end of this Sub-Clause add the followings:
No item of the Contractors equipment brought to site shall be more than 10

years old without the Engineers approval.
18
4.18 PROTECTION OF THE ENVIRONMENT
BEFORE THE START OF THE FIRST PARAGRAPH OF THIS SUB-CLAUSE ADD THE
FOLLOWING HEADING:
GENERAL REQUIREMENT
THE CONTRACTOR SHALL ADHERE AND CONFORM TO ALL

ENVIRONMENTAL REQUIREMENTS AND RESTRICTIONS, BUT NOT LIMITED TO
THOSE REQUIREMENTS AND RESTRICTIONS ESTABLISHED IN THE
ENVIRONMENTAL MANAGEMENT PLAN EMP, TECHNICAL SPECIFICATIONS
AS WELL AS ANY OTHERS CONTAINED IN THE EMPLOYER’S REQUIREMENTS,
IN RESPECT OF SAFETY, SECURITY AND PROTECTION OF THE ENVIRONMENT.
THE CONTRACTOR SHALL BE RESPONSIBLE FOR ENSURING THAT ALL

SUBCONTRACTOR’S AND CONTRACTOR’S PERSONNEL UNDERSTAND AND
OPERATE IN ACCORDANCE WITH THE PRINCIPLES AND REQUIREMENTS OF
THE ENVIRONMENTAL AND SOCIAL IMPACTS PROVISIONS OF THIS SUB-
CLAUSE AND THAT THE SAME STANDARDS APPLY TO THE
SUBCONTRACTOR’S ENVIRONMENTAL AND SOCIAL IMPACTS MANAGEMENT
SYSTEMS AND ENVIRONMENTAL AND SOCIAL IMPACTS PERFORMANCE.
THE CONTRACTOR’S PROGRAM SHALL DEMONSTRATE CLEARLY THE

PROCEDURES AND METHODS OF WORKING THAT THE CONTRACTOR AND ITS
SUBCONTRACTORS WILL ADOPT TO COMPLY WITH THE ENVIRONMENTAL
AND SOCIAL IMPACTS REQUIREMENTS OF THIS SUB-CLAUSE.
THE CONTRACTOR SHALL ENSURE THE ADEQUATE DISPOSAL OF

CONSTRUCTION AND EXCAVATION WASTES.
THE CONTRACTOR SHALL RESTORE THE SITE TO ORIGINAL CONDITIONS OR

TO A STATE AS SET OUT IN THE EMPLOYER’S REQUIREMENTS AFTER THE
COMPLETION OF THE WORKS.
NOT APPLICABLE
AT THE END OF THIS SUB-CLAUSE ADD THE FOLLOWING NEW

PARAGRAPHS:
ENVIRONMENTAL MANAGEMENT ACTION PLAN (EMP)
THE SATISFACTION OF ALL THE REQUIREMENTS OF THE CONTRACT WITH

RESPECT TO PREVENTING AND MITIGATING ENVIRONMENTAL IMPACTS OF
THEWORKS SHALL BE BY MEANS OF THE IMPLEMENTATION OF AN
ENVIRONMENTAL MANAGEMENT PLAN (EMP) FOR THE CONTRACT. THE
CONTRACTOR SHALL PREPARE THE EMP TO THE SATISFACTION OF THE
ENGINEER IN FORM AND SUBSTANCE.
19
THE PURPOSE OF THE EMP IS TO IDENTIFY AND ADDRESS ALL MODERATE
TO SIGNIFICANT NEGATIVE IMPACTS ON THE ENVIRONMENT ARISING FROM
ACTIVITIES UNDER THE CONTRACT, TO ENSURE THAT THE IMPACTS ARE
PREVENTED OR MITIGATED, OR THAT RESIDUAL IMPACTS ARE CONFINED TO
A SHORT PERIOD, AND TO SPECIFY THE ACTIONS TO BE IMPLEMENTED BY
THE CONCERNED PARTY INDICATED TO HAVE THE RESPONSIBILITY.
THE EMP SHALL IDENTIFY AND DESCRIBE THE ACTIONS NECESSARY TO

COMPLY WITH ALL ENVIRONMENTAL PROTECTION REQUIREMENTS. THE
ENVIRONMENTAL PROTECTION REQUIREMENTS MAY BE SUMMARISED AS
FOLLOWS:
ANY ENVIRONMENTAL LAW (I.E. THE STANDARDS, LAWS AND REGULATIONS

IN FORCE WHICH RELATE TO ENVIRONMENTAL ISSUES);
ANY ENVIRONMENTAL APPROVAL REQUIRED TO BE ISSUED BY ANY

RELEVANT AUTHORITY OR OTHERWISE UNDER THE ENVIRONMENTAL LAWS;
THE ENVIRONMENTAL AND SOCIAL PLANS FOR THIS PROJECT, WHICH

INCLUDE:
(A) THE ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR THE

PROJECT, AND INCLUDING ALL SUPPLEMENTS AND AMENDMENTS THERETO;
(B) THE GENERIC ENVIRONMENTAL MANAGEMENT ACTION PLAN

(EMAP) FOR THE PROJECT, INCLUDING ALL SUPPLEMENTS AND
AMENDMENTS THERETO;
(C) THE RESETTLEMENT ACTION PLAN (RAP) FOR THE PROJECT,

UNDER PREPARATION BY THE EMPLOYER, INCLUDING ALL SUPPLEMENTS
AND AMENDMENTS THERETO;
(D) THE EMP TO BE PREPARED BY THE CONTRACTOR UNDER THIS

CONTRACT.
THE EMP TO BE PREPARED BY THE CONTRACTOR IN ACCORDANCE WITH

THIS SUB-CLAUSE SHALL FOLLOW THE REQUIREMENTS OF THE EIA, THE
EMAP AND THE RAP AND MAKE ANY NECESSARY SPECIFICATIONS AND
AMENDMENTS TO COVER ALL THE ACTIVITIES RELATED TO THE WORKS
UNDER THE CONTRACT INCLUDING ALL SITES, SITE FACILITIES AND
STRUCTURES, PRACTICES AND OPERATIONS DURING CONSTRUCTION THAT
HAVE THE POTENTIAL TO IMPACT ON THE ENVIRONMENT, CULTURAL
HERITAGE AND/OR SOCIAL CONDITIONS OF THE LOCAL POPULATION. THE
EMP SHALL INCLUDE:
A DETAILED DESCRIPTION OF ALL NECESSARY ENVIRONMENTAL AND

SOCIAL MONITORING ACTIVITIES AND POSSIBLE MITIGATION MEASURES
WHICH COULD BECOME NECESSARY;
20
A TIME SCHEDULE AND ASSIGNMENT OF RESPONSIBILITY FOR THE
MONITORING ACTIVITIES, AND PROCEDURES FOR DETERMINING WHEN
MITIGATION MEASURES ARE TO BE IMPLEMENTED;
A DESCRIPTION OF SPECIFIC WORK SUPERVISION METHODS OF ENSURING

THAT ALL MEASURES AND PROGRAMMES ARE FULLY IMPLEMENTED BY ALL
RESPONSIBLE PARTIES.
THE CONTENTS LIST OF THE EMP SHALL REFLECT THE ENVIRONMENTAL

AND SOCIAL REQUIREMENTS AND ALL THE PROVISIONS IN THE CONTRACT
RELATED TO THE PROTECTION OF THE ENVIRONMENT. THE EMP SHALL
ADDRESS ALL ENVIRONMENTAL AND SOCIAL MATTERS RELEVANT TO THE
WORKS, WHICH SHALL INCLUDE AS A MINIMUM, BUT NOT BE LIMITED TO,
THE FOLLOWING SUBJECTS:
GENERAL REQUIREMENTS
LIAISON WITH LOCAL AUTHORITIES AND RESIDENTS
COMPLIANCE WITH APPLICABLE REGULATIONS
PREVENTION OF CONTAMINATION OF NATURAL WATER COURSES AND

GROUNDWATER
CONTROL OF HAZARDOUS SUBSTANCES, FUEL ETC. AND SPILLAGE

PREVENTION
ESTABLISHMENT, OPERATION AND REINSTATEMENT OF SPOIL AREAS
REINSTATEMENT OF SITE AREAS USED FOR FACILITIES, ACCESS ETC.
REINSTATEMENT OF TEMPORARY CONSTRUCTION ROADS
PROTECTION AND REPLANTING OF FLORA
PROTECTION OF WILDLIFE AND FISH
ATMOSPHERIC POLLUTION AND DUST CONTROL
EROSION CONTROL AND STORM WATER MANAGEMENT
WATER EXTRACTION, TREATMENT AND SUPPLY
WASTEWATER COLLECTION, TREATMENT AND DISPOSAL
COLLECTION, HANDLING AND DISPOSAL OF SOLID WASTE AND HAZARDOUS WASTE
CONTROL OF NOISE
DAMAGE TO AND MAINTENANCE OF EXISTING ROADS, BRIDGES, CULVERTS ETC.

21
MINIMISING DISTURBANCE IN PUBLIC AREAS INCLUDING FROM CONSTRUCTION TRAFFIC
DEALING WITH GEOLOGICAL, PALEONTOLOGICAL AND ARCHAEOLOGICAL REMAINS,

GRAVES ETC.
WITHIN 120 DAYS AFTER THE COMMENCEMENT DATE THE CONTRACTOR SHALL
PREPARE AND SUBMIT THE DRAFT EMP TO THE ENGINEER WITH A COPY TO THE
EMPLOYER FOR REVIEW. WITHIN 14 DAYS AFTER RECEIVING THE DRAFT EMP
AFTER DUE CONSULTATION WITH THE EMPLOYER THE ENGINEER SHALL SUBMIT
TO THE CONTRACTOR ANY REQUESTS FOR AMENDMENT WITH RESPECT TO THE
DRAFT EMP. THE CONTRACTOR SHALL INCORPORATE THE AMENDMENTS
REQUESTED AND SHALL ISSUE THE FINAL EMP FOR THE CONTRACT.
THE ENGINEER MAY REQUIRE THE PREPARATION AND SUBMISSION OF UPDATED

VERSIONS OF THE EMP FOR THE CONTRACT IF, IN HIS OPINION, THERE IS A NEED
TO DO SO AS A RESULT OF NEW INFORMATION OR CHANGED CIRCUMSTANCES.
EACH SUCH UPDATED VERSION OF THE EMP SHALL BE BINDING ON THE
CONTRACTOR FROM THE TIME OF ITS ISSUE.
(NOT APPLICABLE)
4.19 ELECTRICITY, WATER AND GAS
Delete the whole text of this Sub-Clause and substitute by the following:
The contractor shall be responsible for the provision of all construction power
and other services he may require during the construction and erection of
equipment.
The Contractor shall, at his own cost other than in accordance with any
arrangement which may be stipulated in the Specification, be responsible for
the provision of all construction power, and other services he may require.
No separate payment shall be made for the cost of construction power, water
and gas. It shall be deemed to be covered by related items.
Employer shall supply water free of cost however the accessories required for
water supply Water Supply shall be arranged and supplied by Employer to the
by contractor Free of Cost.
4.20 EMPLOYERS EQUIPMENT AND FREE ISSUE MATERIALS

At the end of this Sub-Clause add the followings
The steel plate required for stiffener, headrace, penstock, surge pipe and its
bends shall be provided by employer at the contractor workshop. Materials for
other components and other things shall be the responsibility of contractor.
ANot applicable as all raw materials in Indian Contract are in scope of
Contractor and all raw materials in Nepalese contract are in scope of
Employer.
22
4.21 PROGRESS REPORTS
Replace the entire text of this Sub-Clause by the following:
The Contractor shall keep a Site Diary wherein full details of all work carried
out each day shall be recorded. The Site Diary may be prepared in sections
relating to different parts of the works being carried out in different locations.
The Site Diary shall be available for inspection by the Engineer any time
during normal office hours.
The Contractor shall submit before 2:00 pm daily ‘Daily Site Report’ of the
preceding day to the Engineer in an approved format. The Daily Site Report
shall be well organized and legible ad shall include at least the following:
Atmospheric condition, (Not Applicable)

Rainfall data, (Not Applicable)
Description and location of work performed,
(i) Interruption of work due to any circumstances,
(ii) Shifts and Working hours,
(iii) Number and category of workers worked on the site,
Type of Equipment and Number of hours equipment usage, (Not Applicable)
Test carried out including results if available, (Not Applicable)
Inspections carried out by the Project Manager and/or Persons assigned by the Project
Manager, (Not Applicable)
Supplied materials,
Notices and site instructions,
Visitors, (Not Applicable)
Accidents (Not Applicable)
(iv) Any other events or information relevant to the progress of the Works,
as requested by the Engineer.
Notwithstanding the foregoing, the Engineer may employ members of his own
staff to record some or all of the above data in addition to the Contractor's
records. The Contractor shall also provide such further information as may be
requested by the Engineer.
The Contractor shall prepare and submit three copies of a weekly report to the
Engineer and two similar copies to the Employer, signed by the Contractor.
The weekly report shall include the following information: (Not Applicable)
Personnel on site (list by trade, and categorized in accordance with the
following requirements:
• Total personnel, by Management, Administrative, Trades and Labor
category
23
• By nationality
(i) Major equipment in use,
(ii) Quantities and description of work completed,
(iii) Problems, and
(iv)Contractors 4-week schedule
(v) The contractor shall prepare monthly progress report each month and shall
be submitted to the Engineer in three suitably bound hard (paper) copies in
a format approved by the Engineer and additionally as readable electronic
files, complete with all supporting documents and information as required
by this Sub-Clause. Charts, diagrams, photographs, graphics etc. which in
original are in colour shall be reproduced in all the copies also in colour.
Each monthly progress report shall also be submitted to the Employer in two
similarly bound copies in the same format approved by the Engineer and
additionally one copy as readable electronic files. The reports submitted to the
Employer shall be complete with all supporting documents and information in
all respects similar to the copies to be submitted to the Engineer.
Each monthly report shall include the contents listed in the General Conditions
and additionally shall include at least the following:
(i) record of managerial and superintendence staff on Site during the month,
with names and designations;
(ii) monthly report on Quality Assurance System;
(iii) record of equipment import / re-export shipments;
(iv)monthly Critical Items report;
(v) record of statements and payment certificates to date;
(vi)statement of anticipated Contract Price based on approved, requested and
forecast changes.
The electronic version submitted shall include the updated complete electronic
files from the current Critical Path Method (CPM) design, manufacturing,
delivery, installation programme. The Engineer and the Employer shall be able
to access all information contained within the Contractor's electronic CPM
design, manufacturing, delivery, installation programme without restriction.
In case within 7 days of the receipt of any monthly report the Employer or the
Engineer notifies the Contractor of any discrepancies, omissions or errors in
the report, the Contractor shall promptly correct the report accordingly and
resubmit to the Employer and the Engineer no later than 7 days following such
notification (Not Applicable)
Add the following new Sub-Clause 4.25 to 4.27
4.25 Early Warning
The Contractor shall give notice to the Engineer at the earliest opportunity of specific likely
future events or circumstances which may adversely affect the Works, increase the Contract
Price or delay execution of the Works. The Engineer may require the Contractor to submit
an estimate of the anticipated effect of the future event or circumstances, and/or a proposal
24
under Sub-Clause 13.3 [Variation Procedures]. The Contractor shall submit such estimate
and/or proposal as soon as practicable. The Contractor shall co-operate with the Engineer
in making and considering proposals to mitigate the effect of any such event or
circumstances, and in carrying out instructions of the Engineer.
4.26 Details to be Confidential
The Contractor shall treat the details of the Contract as private and confidential, save
insofar as may be necessary for the purposes thereof and shall not publish or disclose the
same or any particulars thereof in any trade or technical paper or elsewhere without the
prior written consent of the Employer. If any dispute arises as to the necessity of any
publication or disclosure for the purpose of the Contract the same should be referred to the
Employer whose determination shall be final.
(Not Applicable)
4.27 Illegal Payments
If the Contractor, or any of his Subcontractors, agents or servants gives or

offers to give or agrees to give to any person any bribe, gift, gratuity or
commission as an inducement or reward for doing or forbearing to do any
action in relation to the Contract or any other contract with the Employer or
Engineer, or for showing or forbearing to show favor or disfavor to any person
in relation to the Contract or any other contract with the Employer, then the
Employer shall be entitled to cancel the Contract and recover from the
Contractor the amount of any loss resulting from such cancellation including
all costs associated with the Contractor's removal from Site, the identification
and appointment of others to complete the outstanding Works, and any
financial loss arising from the ensuing delay in the start of operation of the
Project.
5 DESIGN
5.2 CONTRACTOR'S DOCUMENTS
At the end of this Sub-Clause add the following new paragraphs:
Provided that the Engineer has, during each review period for any single
Contractor's Document, complied with the requirement to give notice to the
Contractor within 21 days that the submitted item fails (to the extent stated) to
comply with the Contract, the Contractor shall be responsible for any delays or
additional costs which may be incurred as a result of the overall review
procedure for that item of the Contractor's Documents exceeding a period of 42
days, irrespective of the number of review periods therein.
25
5.6 AS-BUILT DOCUMENTS
Delete the following words from the third paragraph of this Sub-Clause:
the Contractor shall supply to the Engineer the specified number and types of
copies of the relevant as-built drawings
and substitute the following:
the Contractor shall supply at his own cost to the Employer and Engineer the
specified number and types of copies of the relevant as-built drawings
5.7 OPERATION AND MAINTENANCE MANUALS
Replace the whole text of this Sub-Clause by the following paragraphs:
Prior to commencement of the Tests on Completion, the Contractor shall

supply at his own cost to the Engineer and the Employer the final Operation
and Maintenance Manuals in sufficient detail for the Employer to operate,
maintain, dismantle, reassemble, adjust and repair the equipment supplied by
the contractor in accordance with the Employer’s Requirements. One
electronic copy and one paper set of all complete Operation and Maintenance
Manuals shall be submitted by the Contractor to the Engineer for approval.
After approval two electronic copies and 6 paper sets of all final Operation and
Maintenance Manuals shall be delivered by the Contractor to the Employer and
one electronic copy and one paper set to the Engineer.
The Works shall not be considered to be completed for the purposes of taking-
over under Sub-Clause 10.1 [Taking over of the Works and Sections] until the
Engineer and the Employer has received final operation and maintenance
manuals in such detail, and any other manuals specified in the Employer’s
Requirements for these purposes.-Not Applicable
5.8: Design Error
The contractor shall be responsible for any errors, omissions, ambiguities,

inconsistencies or other defects in the Contractor’s Documents or Drawings,
and the approval by the Employer or the Engineer of these documents shall not
relieve the Contractor in any way from this responsibility.
With respect to Designs prepared by the Contractor on the basis of Drawings,
documents or other information which he receives from the Employer or the
Engineer, the responsibilities of the Contractor with respect to the correctness
of such Drawings, documents or other information and for notifying the
Employer and the Engineer of any errors or omissions therein shall be in
accordance with Sub-Clause 1.9.
6 STAFF AND LABOR
26
6.1 ENGAGEMENT OF STAFF AND LABOR
The Contractor shall be responsible for the return to the place where they were
recruited, or to their domicile, of all persons that he has recruited and employed
for the purposes of or in connection with the Contract and shall maintain such
persons as are to be so returned in a suitable manner until they have left the
Site or, in the case of persons who are not nationals of and have been recruited
outside Nepal, have left Nepal.
The Contractor shall make any necessary arrangements for the transport, to any
place required for burial, of any of his expatriate employees or members of
their families who may die in Nepal. The Contractor shall also be responsible
for making any arrangements with regard to burial of any of his local
employees who may die while engaged upon the Works.
The Contractor shall be solely responsible for recruiting his labor force and
satisfying the relevant obligations under the Contract and the regulations and
laws in force in Nepal. It is nevertheless a requirement that the Contractor
shall, to the extent practicable and subject to the availability of suitable
candidates, employ staff and labor for the Works with the required
qualifications and experience from the surrounding districts of the Project.
The Contractor is encouraged to recognize that, in order to maintain good
community relations as required under the Contract, to the extent that suitable
options for recruiting labor locally exist and provided that other selection
factors are equal he should make every reasonable effort to recruit his
workforce according to the priorities of the local population and in particular
those affected directly by the Project. These priorities should follow the order
of preference of sources for recruitment as given by the following list:
(i) Seriously Project Affected Families (SPAFs)
(ii) Project Affected Families (PAFs)
(iii) Persons from villages directly affected by land expropriation for the
Project
(iv)Lists of the families designated as SPAF and PAF will be provided by the
Employer at the Contractor's request.
(v) In addition, the Contractor shall fulfil the following conditions:
a. The Contractor shall not employ any workman who are suffering
from an infectious disease or are known to be carrying of an
infectious disease and shall if so required have all workmen
engaged on the construction of water-works certified by a medical
officer acceptable to the Employer as a non–carrier of any water
borne disease.
b. Notice shall be posted in conspicuous places and workplaces
concerned to inform the workers of the conditions of work provided
by the Contract.
27
c. The Contractor shall be responsible for keeping discipline on the site
and shall obey all policy, labor, health and municipal regulation and
all other regulations that may from time to time require his
observance and he shall instruct his agent, subcontractors and other
employees accordingly. The Contractor shall indemnify the
Employer in respect of all claims that may be made against the
Employer of non-compliance thereof by the Contractor.
d. The Contractor shall keep proper wages books and such other
records as are required by any prevailing Laws of Nepal governing
the employment of labor.
(Not Applicable)
6.2 RATES OF WAGES AND CONDITION OF LABOR
The Contractor shall pay rates of wages and observe conditions of labor not
less favorable than established by the District Development Committee office
where the work is carried out(Not Applicable). In the absence of any rates of
wages or conditions of labor so established, the Contractor shall pay rates of
wages and observe conditions of labor which are not less favorable than the
general circumstances in the trade or industry in which the Contractor is
engaged.
The Contractor shall in dealing with his staff and labor have due regard to all
recognized festivals, days of rest and religious or other customs.
6.3 PERSONS IN THE SERVICE OF EMPLOYER
Delete the heading of this Sub-Clause and substitute by the following:
PERSONS IN THE SERVICE OF THE EMPLOYER OR THE ENGINEER
The Contractor shall not recruit or attempt to recruit any personnel and labor
from among persons in the service of the Employer or the Engineer.
Furthermore, if any personnel who is retired or terminated from the service of
the Employer or the Engineer, the Contractor shall not hire the said personnel
within two years of his/her retirement or termination from the Employer or the
Engineer. The foregoing provision shall not exclude the Contractor from
recruiting by means of advertisements place in general circulation media for
any other technical or skilled personnel including engineers required for the
execution of the Works.
6.4 LABOR LAWS
The Contractor shall at all times take all reasonable precautions to prevent any
unlawful, riotous or disorderly conduct by or amongst his staff and labor and
28
for the preservation of peace and protection of person and property in the
neighborhood of the Works. The Contractor is obliged to notify immediately to
the Engineer of any labor conflict or riot faced by him or his subcontractors
that could influence the progress of the Works.
The Contractor shall be responsible for making all arrangements for and shall
bear all costs relating to the obtaining of all necessary visas, permits,
documents or other official permission for the movement of staff or labor from
place to place and from one country to another as may be necessary for the
purposes of or in connection with the Works.
The Contractor shall be responsible for observance by his sub-contractors of
the provisions for this Sub-Clause.
The cost of complying with this Sub-Clause and of complying with any
relevant laws and regulations in force in Nepal, at the time 28 days before the
submission of the Bid, is to be included in the Accepted Contract Price
6.6 FACILITIES FOR STAFF AND LABOR
The Contractor shall provide and maintain such accommodation and amenities
as he may consider necessary for all his staff and labor, employed for the
purposes of or in connection with the Contract, including water supply (both
for drinking and other purposes) (to be provided by Employer),, electricity
supply, sanitation, cookhouses and other requirements in connection with such
accommodation or amenities. On completion of the Contract, unless otherwise
agreed with the Employer, the temporary camps/housing provided by the
Contractor shall be removed and the site reinstated to its original condition(Not
Applicable), all to the approval of the Engineer.
6.7 HEALTH AND SAFETY
Replace the entire text of this Sub-Clause by the followings:
At his own cost, the Contractor shall at all times take all reasonable precautions
to maintain the health and safety of the Contractor's Personnel. In collaboration
with local health authorities, the Contractor shall ensure that medical staff, first
aid facilities, medicines and sick bay, ambulance service and evacuation
service are available at all times at the Site and at any accommodation for
Contractor's, Employer's and Engineer’s Personnel, and that suitable
arrangements are made for all necessary welfare and hygiene requirements and
for the prevention of epidemics. In the event of any outbreak of disease of an
epidemic nature, the Contractor shall comply with and carry out such
regulations, orders and requirements as may be made by the Government, or
the local medical or sanitary authorities, for the purpose of dealing with and
overcoming the same. The Contractor shall report the outbreak of any epidemic
to the local health authorities as soon as he becomes aware of such epidemic.
The medical staff of the Contractor or any of his Subcontractors shall be
subject to the requirements of the applicable law for registration as practising
medical personnel and shall be fluent in spoken and written English language
29
to the satisfaction of the Engineer as well as in the languages of Nepal and the
country of origin of the Contractor's labour as appropriate.
The Contractor shall appoint an Accident Prevention Officer at the Site,
responsible for maintaining safety and protection against accidents. This
person shall be qualified for this responsibility, and shall have the authority to
issue instructions and take protective measures to prevent accidents.
Throughout the execution of the Works, the Contractor shall provide whatever
is required by this person to exercise this responsibility and authority.
The Contractor shall immediately inform the Engineer of the occurrence of any
accident at or about the Site or in connection with the execution of the Works,
and within 24 hours of the occurrence shall submit a report of the accident to
the Engineer. The Contractor shall also report such accident to the competent
authority wherever the applicable law requires such reporting.
The Contractor shall take adequate measures and maintain the safety and
welfare of his employees at work, including those of his Subcontractors. The
responsibility of the Contractor shall include, but not be limited to:
(a)Dissemination of safety instructions, information and measures to be
undertaken at site to the extent that his employees become conversant
with it;
(b) Provision of all stipulated facilities, equipment, procedures and training
of personnel in compliance with the requirements of the Specifications;
(c)Maintenance of such records and making such reports concerning the
safety, health and welfare of persons and damage to property as the
Engineer may from time to time prescribe.
The Contractor shall at all times take the necessary precautions to protect all
staff and labor employed on the Site from insect nuisance, rats, and other pests
and reduce the dangers to health and the general nuisance caused by the same.
If necessary, the Contractor shall provide his staff and labor with suitable
prophylactics for the prevention of related diseases, and shall comply with all
the regulations of the local health authorities in these respects including the
appropriate use of approved insecticides.
The Contractor shall conduct an HIV-AIDS awareness program in the project
areas as required by the approved EMP via an approved service provider, and
shall undertake such other measures as are specified in the Contract to reduce
the risk of the transfer of the HIV virus between and among the Contractor’s
Personnel and the local community, to promote early diagnosis and to assist
affected individuals.
The Contractor shall make all necessary arrangements for the transport, to any
place as required for burial, of any of his expatriate employees or members of
their families. The Contractor shall also be responsible, to the extent required
by the local regulations, for making any arrangements with regards to the
funeral and burial of any of his local employees who may die while engaged
upon the Works.
(Not Applicable)
6.8 Contractor’s Superintendence
30
A reasonable proportion of the Contractor’s superintending staff shall have a

working knowledge of English. If the Engineer determines that the
Contractor’s Personnel providing superintendence have inadequate knowledge
of such language, the Contractor shall make competent interpreters available to
ensure the proper transmission of instructions and information.
6.9 CONTRACTOR'S PERSONNEL
All staff and labor on the Site shall be provided with identification as follows:
(a) Identification cards incorporating the name, position and photograph of
the person and the name of the direct employer (Contractor,
Subcontractor, etc.).
(b) hard hats with the name of the direct employer.
The Contractor shall be responsible for the observance of the provisions of this
Sub-Clause by all Subcontractors employed by him in the execution of the
Contract.
Add the following new Sub-Clause 6.12 to 6.24:
6.12 FOREIGN PERSONNEL

The Contractor may bring in to the Country any foreign personnel who are
necessary for the execution of the Works to the extent allowed by the
applicable Laws. The Contractor shall ensure that these personnel are provided
with the required residence visas and work permits. The Employer will, if
requested by the Contractor, use his best endeavors in a timely and expeditious
manner to assist the Contractor in obtaining any local, state, national, or
government permission required for bringing in the Contractor’s personnel.
The Contractor shall be responsible for the return of these personnel to the
place where they were recruited or to their domicile. In the event of the death
in the Country of any of these personnel or members of their families, the
Contractor shall similarly be responsible for making the appropriate
arrangements for their return or burial.
6.13 SUPPLY OF FOODSTUFFS

The Contractor shall arrange for the provision of a sufficient supply of suitable
food as may be stated in the Specification at reasonable prices for the
Contractor’s Personnel for the purposes of or in connection with the Contract.
6.14 SUPPLY OF WATER

The Contractor shall, having regard to local conditions, provide on the Site an
adequate supply of drinking and other water for the use of the Contractor’s
Personnel.-To be provided by Employer
31
6.15 MEASURES AGAINST INSECT AND PEST NUISANCE
The Contractor Employer shall at all times take the necessary precautions to
protect the Contractor’s Personnel employed on the Site from insect and pest
nuisance, and to reduce the danger to their health. The Contractor Employer
shall comply with all the regulations of the local health authorities, including
use of appropriate insecticide.-To be provided by Employer
6.16 ALCOHOLIC LIQUOR AND DRUGS

The Contractor shall not, otherwise than in accordance with the Laws of the
Country, import, sell, give, barter or otherwise dispose of any alcoholic liquor
or drugs, or permit or allow importation, sale, gift, barter or disposal thereto by
Contractor’s Personnel, Subcontractors, agents, staff or labor.
6.17 ARMS AND AMMUNITION

The Contractor shall not give, barter, otherwise dispose of, to any person or
persons, any arms or ammunition of any kind, or allow Contractor's Personnel
to do so.
6.18 FESTIVALS AND RELIGIOUS CUSTOMS

The Contractor shall respect the Country's recognized festivals, days of rest
and religious or other customs.
6.19 FUNERAL ARRANGEMENTS

The Contractor shall be responsible, to the extent required by local regulations,
for making any funeral arrangements for any of his local employees who may
die while engaged upon the Works.
6.20 FORCED LABOR

The Contractor shall not employ forced labor, which consists of any work or
service, not voluntarily performed, that is exacted from an individual under
threat of force or penalty, and includes any kind of involuntary or compulsory
labor, such as indentured labor, bonded labor or similar labor-contracting
arrangements.
6.21 PROHIBITION OF CHILD LABOR

The Contractor shall not employ any child to perform any work that is
economically exploitative, or is likely to be hazardous to, or to interfere with,
the child's education, or to be harmful to the child's health or physical, mental,
spiritual, moral, or social development. The Contractor shall not employ in
connection with the works any person who has not completed his/her 16 years
of age.
6.22 EMPLOYMENT RECORDS OF WORKERS

The Contractor shall keep complete and accurate records of the employment of
labor at the Site. The records shall include the names, ages, genders, hours
32
worked and wages paid to all workers. These records shall be summarized on
a monthly basis and submitted to the Engineer, and these records shall be
available for inspection by auditors during normal working hours. These
records shall be included in the details to be submitted by the Contractor under
Sub-Clause 6.10 [Records of Contractor’s Personnel and Equipment].
6.23 WORKERS’ ORGANIZATIONS

In countries where the relevant labour laws recognise workers’ rights to form
and to join workers’ organisations of their choosing without interference and to
bargain collectively, the Contractor shall comply with such laws. Where the
relevant labour laws substantially restrict workers’ organisations, the
Contractor shall enable alternative means for the Contractor’s Personnel to
express their grievances and protect their rights regarding working conditions
and terms of employment. In either case described above, and where the
relevant labour laws are silent, the Contractor shall not discourage the
Contractor’s Personnel from forming or joining workers’ organisations of their
choosing or from bargaining collectively, and shall not discriminate or retaliate
against the Contractor’s Personnel who participate, or seek to participate, in
such organisations and bargain collectively. The Contractor shall engage with
such workers’ representatives. Workers’ organisations are expected to fairly
represent the workers in the workforce. (Not Applicable)
6.24 NON-DISCRIMINATION AND EQUAL OPPORTUNITY

The Contractor shall not make employment decisions on the basis of personal
characteristics unrelated to inherent job requirements. The Contractor shall
base the employment relationship on the principle of equal opportunity and fair
treatment, and shall not discriminate with respect to aspects of the employment
relationship, including recruitment and hiring, compensation (including wages
and benefits), working conditions and terms of employment, access to training,
promotion, termination of employment or retirement, and discipline. In
countries where the relevant labor laws provide for non-discrimination in
employment, the Contractor shall comply with such laws. When the relevant
labor laws are silent on non-discrimination in employment, the Contractor shall
meet this Sub-Clause’s requirements. Special measures of protection or
assistance to remedy past discrimination or selection for a particular job based
on the inherent requirements of the job shall not be deemed discrimination.
7 PLANT, MATERIALS AND WORKMANSHIP

7.1 MANNER OF EXECUTION
The Contractor shall submit for approval of the Engineer, his detailed method
statement for the execution of such items of work as may be desired by the
Engineer. Approval of such method statement shall neither relieve the
Contractor of his responsibilities under the Contract nor form any basis for
claiming additional costs. As such, the Contractor shall sequence and schedule
33
work such that critical work elements are completed without major
interruptions in the progress of the Project.
7.7 OWNERSHIP OF PLANT AND MATERIALS:
Replace Sub-paragraph (a) and (b) with the followings:
(i) When it is incorporated in the Works;

(ii) When the Contractor is paid the corresponding value of the Plant and
Materials under Sub-Clause 8.10 [Payment for Plant and Materials in
Event of Suspension].
7.8 ROYALTIES
The Contractor shall be liable for all payments of compensation, if any, levied
in relation to the dumping and/or disposal of any materials, in accordance with
any and all local authorities according to the local self-governance Act (2055
B.S.), local self-governance Regulations (2056 B.S.) or other such laws of
Nepal as are applicable.
8 COMMENCEMENT, DELAYS AND SUSPENSION

8.1 COMMENCEMENT OF WORK
Add the following after the first paragraph of this Sub-Clause:
The Employer or the Engineer shall give the Contractor not less than 7 days'
notice of the Commencement Date. The Commencement Date shall be the date
at which the following precedent conditions have all been fulfilled to the
satisfaction of the Engineer and the Employer or the Engineer’s notification
recording the agreement of both Parties on such fulfilment and instructing to
commence the Work is received by the Contractor:
(i) The Contract Agreement has been duly signed by the Parties
concerned;
(ii) The Contractor has submitted to the Employer the Performance
Security in accordance with Sub-Clause 4.2
(iii) The detailed programme of work in accordance with Sub-Clause 8.3
has been submitted by the Contractor to the Engineer for approval;
(iv) In case the Contractor is a Joint Venture of more than one Partner, the
final Joint Venture Agreement has been submitted by the Contractor
and approved by the Employer.
(v) Advance Payment has been released by the Employer to the contractor
and receipt of the same is acknowledged by the contractor
34
The Employer shall not be liable for any delay or Cost which may be incurred
by the Contractor due to a delay in the Commencement Date resulting from the
failure of these conditions precedent to be fulfilled by the notified date and the
Contractor is not entitled to terminate the Contract under Sub-Clause 16.2
[Termination by Contractor] as above.
The Contractor shall commence the design and execution of the Works as soon
as is reasonably practicable but in any case not exceeding 21 days after the
Commencement Date, and shall then proceed with the works with due
expedition and without delay.
8.3: PROGRAMME
Replace the first paragraph and sub-paragraph (a), (b), (c) and (d) with the
followings:
The Contractor shall submit a detailed time programme to the Engineer prior to
the Commencement Date to be notified under Sub-Clause 8.1 [Commencement
of Works]. The Contractor shall also submit a revised programme whenever
the previous programme is inconsistent with actual progress or with the
Contractor's obligations and in any event the programme shall be revised every
three months to reflect the actual progress on site.
The detailed time programme shall show all activities and sequences of
operations for the orderly design, manufacture, delivery and installation of the
Plant and the completion of the Works and shall be drawn to a monthly time
scale commencing with the Commencement Date. It shall show in detail
intermediate milestone dates for all engineering, procurement, and construction
activities. Activity descriptions shall be discrete so that the actual and
scheduled work progress can be determined. The Contractor will identify the
critical paths both on activity listing and graphic display showing in detail the
followings:
1) Work Programme:
a) within 21 days of the Engineer’s written notice to commence, the
Contractor shall submit to the Engineer a detailed construction
schedule,
b) The schedule shall be in precedence (activity on node) format, prepared
under Critical Path Method (CPM) format, utilizing the computer
software MS Project 2007 or similar, showing the proposed date of
commencement and completion of each activity required under the
contract. (Not Applicable)
c) The schedule shall conform to the working times and times of
completion stipulated in the Contract, (Not Applicable)
d) The activity network shall be drawn to a time scale shown with
weekends and holidays,
e) A tabular list shall be provided listing all activities showing activity
description, start and finish dates, duration assigned,
35
f) The number, descriptions, and days shown shall be identical with those
shown on the associated precedence diagram.
2) Site mobilization schedule:
a) The Contractor shall submit the mobilization schedule showing the plan
for construction of camps and other temporary facilities and the
Contractor’s plan for start of work.
3) Material delivery schedule
a) The Contractor shall submit the materials procurement plan and
delivery schedule to meet the targeted progress in the work schedule.
b) The procurement of materials and equipment should ensure a stock of
all materials and equipment required for execution of Work onsite
ready for use and in an amount sufficient to avoid any delay due to
delivery time or interruption of supply. This reserve shall be sufficient
for at least one month. The materials are to be properly stored and
handled to avoid any damage.
4) Construction drawings/shop drawings Schedule:
a) The Contractor at his own cost shall prepare the construction
drawings/shop drawings and submit to the Engineer for approval.
b) The construction drawings/shop drawings should be submitted at least
28 days prior to the Contractor’s plan for start of construction or
fabrication of each unit of work
5) A supporting report which includes
a) A general description of the methods which the Contractor intends to
adopt, and of the major stages, in the execution of the Works, and
b) Details showing the Contractor’s reasonable estimate of the number of
each class of Contractor’s Personnel and of each type of Contractor’s
Equipment, required on the Site.
If the Contractor, during the execution of the Works, shall see it necessary to
make any modification to the detailed time programme, he shall immediately
submit said modifications to the Engineer for review. The Contractor's
submittal to the Engineer shall include his recommendations and means to
resolve the impact of these modifications on other contractors’ work. The
Contractor's submittal of these recommendations, and the review of the
Engineer thereto, shall not relieve the Contractor of his responsibilities and
duties under the Contract.
In addition to the detailed time programme, the Contractor shall provide the
following documents and information:
A. 30-day Work Programme
Within 28 days after the Commencement Date the Contractor shall submit to
the Engineer a 90-day Engineering Programme in bar chart format. This 90-
day Engineering Programme shall include submittal dates for drawings,
36
calculations, reports and documentation related to design, as well as all those
items required for review and/or interface with any equipment/design work to
be provided by others. Submittals indicated shall also include all documents
submitted by the Contractor to the Engineer and information to be received by
the Contractor from the Engineer.
The 90-day Engineering Programme shall be prepared showing in detail all
activities, their descriptions, durations and dependencies on a daily time scale
for the first 30 day period, and on a weekly time scale for the balance of the 90
day period. In preparing the 90-day Engineering Programme the Contractor
shall utilise the same subdivision of work activities developed in the detailed
time programme. The 90-day Engineering Programme shall be updated and
resubmitted by the Contractor monthly, displaying actual progress for the
previous 30-day period as well as the forecast progress for the next 90-day
period.
B. 90-day Installation Programme
Not less than 28 days prior to the start of work on Site the Contractor shall
submit to the Engineer a 90-day Installation Programme in bar chart format.
For lump sum price items of the Contract the activity subdivisions shall
correspond to the elements comprising each payment stage of the lump sum
price item. The 90-day Installation Programme shall be prepared so as to show
in detail all activities, their descriptions, durations and dependencies on a daily
time scale for the first 30-day period, and on a weekly time scale for the
balance of the 90-day period. In preparing the 90-day Installation Programme
the Contractor shall utilise the same subdivision of work activities developed
in the detailed time programme. The 90-day Installation Programme shall be
resubmitted by the Contractor every month, displaying actual progress for the
previous 30-day period as well as the forecast progress for the next 90-day
period.
(Not Applicable)
8.4 Extension of Time for Completion
At the end of the last paragraph of this Sub-Clause, add the followings:
Extensions of the Time for Completion shall not be granted for delays caused
by an inadequate work force, faulty workmanship, or delay in design,
manufacture and delivery of the Plant and equipment and Completion of the
Works, providing or importing plant, equipment, construction materials, non-
availability due to break-down or importation delays of construction plant,
equipment and transportation arrangements or the failure of the Contractor to
place orders for plant, equipment or materials in sufficient time in advance to
ensure delivery when needed or due to inadequate planning, inefficiency or
negligence, etc., by the Contractor, or its subcontractors.
In the event the Contractor’s performance of this Contract is delayed or
interfered with by acts of the Employer or other contractors, the Contractor
may request an extension of the Time for Completion, however and shall be
liable for delay damages and increase in contract price for the idle payment
charges., he shall not be entitled to any increase in the Contract Price or to
damages or additional compensation and or prolongation cost as a consequence
37
of such delays.(Contractor to be entitled for delay damages and
compensation or increase in contract price)
The Contractor shall maintain a record of all strikes which directly affect the
operations of the Contractor at the Site. Except in such cases where the strikes
renders work impossible for a whole day or more in the Engineer’s opinion, the
Contractor shall not be entitled to an extension of the Time for Completion. An
extension granted because of the strikes shall be an extension of time only and
no claim for extra payment shall accrue because of such extension being
granted. (Contractor liable to receive payment and compensation for any
charges or losses incurred due to idle labor charges.)
8.7 DELAY DAMAGES
Delete the following words from the first paragraph of this Sub-Clause:
These delay damages shall be the sum stated in the Appendix to Tender, which
shall be paid for every week week which shall elapse between the relevant
Time for Completion and the date stated in the Taking-Over Certificate.
These delay damages shall, for the whole of the Works or for any Section, be
the sum stated in the Appendix to Tender, which shall be paid for every day
which shall elapse between the relevant Time for Completion and the date
stated in the Taking Over Certificate for the whole of the Works or for the
Section, as the case may be.
Add the following new paragraphs at the end of the first paragraph of this
Sub-Clause:
In the event that:

a) the Contractor has failed to comply with Sub-Clause 8.2 with respect to
a Milestone in regard to a defined part of the Permanent Works which,
in the opinion of the Engineer, would not necessarily result in a failure
to comply with Sub-Clause 8.2 with respect to the whole of the Works;
b) the Contractor has paid delay damages to the Employer in accordance
with this Sub-Clause for the default described in (a); and
c) following the completion of the part of the Permanent Works (covered
by the Milestone) in delay the Contractor thereafter recovers this delay
and thereby achieves the next Milestone as defined in the Contract
without any remaining delay;
then the delay damages paid in accordance with (b) will be returned to the
Contractor except for a deduction in the value, as determined by the Engineer,
of any costs or material loss incurred by the Employer as a result of the default
described in (a).
In case the Contractor recovers only part of the delay as described in (c) by the
time of the next Milestone, then a portion of the delay damages paid in
accordance with (b) will be due to be returned to the Contractor. In this case
38
the portion will be calculated pro-rata on the portion of the original delay
described in (a) which has been recovered by the next Milestone, subject
nevertheless to the full deduction of the value determined by the Engineer of
all costs or material loss incurred by the Employer as a result of the default
described in (a).
Replace the whole text of the last paragraph of this Sub-Clause with the
followings:
These delay damages and the penalties in Sub-Clause 4.1 [Contractor’s

General Obligations] and Sub-Clause 12.4 [Failure to pass Tests after
Completion] shall be the only damages due from the Contractor for such
default, other than in the event of termination under Sub-Clause 15.2
[Termination by Employer] prior to completion of the Works. These damages
shall not relieve the Contractor from his obligation to complete the Works, or
from any other duties, obligations or responsibilities which he may have under
the Contract.
8.8 SUSPENSION OF WORK
Causes for such suspension which shall be deemed to be the responsibility of

the Contractor for the purposes of this Sub-Clause, and for which therefore
Sub-Clauses 8.9, 8.10 and 8.11 shall not apply, shall include, but not be limited
to, the following:
(a) Some default under the Contract or breach of the Contract by the
Contractor,
(b) Foreseeable climatic conditions on the Site or conditions arising out of
foreseeable climatic conditions, or
(c) Necessary for the proper execution of the Works or for the safety of the
Works or any part thereof (2saves to the extent that such necessity arises from
any act or default by the Engineer or the Employer or from any of the risks
defined in Sub-Clause 17.3 [Employer's Risks]).
8.12 RESUMPTION OF WORK
The Contractor shall not be entitled to payment for costs incurred in making
good any deterioration, defect or loss caused by the Contractor’s failure to
fulfil its obligations under the Contract, including failure to take the measures
specified in Sub-Clause 8.8.
10 EMPLOYER'S TAKING OVER
39
10.1 TAKING OVER OF THE WORKS AND SECTIONS
The issue of the Taking-Over Certificate for whole of the Works marks the
beginning of the Defect Notification Period.
10.2 TAKING OVER OF PARTS OF THE WORKS
Although any part of the Works, at the sole discretion of the Employer, may be
taken over by the Employer either through the issue of a Taking-Over
Certificate for this part or by the use or occupation of this part by the
Employer, nevertheless it is the Employer's intention that this will not take
place and that only one Taking-Over Certificate is to be issued for the whole of
the Works.
The issue of any Taking-over Certificate for a section or a part of the Works
shall in no way be considered as the Taking-Over Certificate for the whole of
the Works and thus does not mark the beginning of the Defects Notification
Period.
The Project will include other contracts, in particular Lot 03 Construction of
Civil Structures, Lot 05 Electromechanical Works, Lot 06 Transmission Line
and Interconnection Works, for the execution of the various other works on the
Project which will be performed concurrently with the Works under this
Contract.
For the purpose of the execution of the overall Project, portions of the Works
under this Contract must be constructed to specific stages either to enable work
by the Employer’s other contractors to proceed or continue or to facilitate the
commissioning of the Project.
The Employer’s other contractors as well as the personnel of the Employer and
Engineer and other affected authorities and organizations will also require joint
use of facilities such as roads, site installation areas and other general site
services in connection with such other Works, and the Contractor will make
every reasonable effort to facilitate these activities within the performance of
the Works.
These activities by the Employer's other contractors, the related supervision
activities by the Employer's and the Engineer's personnel and the Project-
related activities of other affected authorities and organizations shall under no
circumstances be considered to constitute the use or occupation of any part of
the Works pursuant to this Sub-Clause and shall not be grounds for the issue of
any Taking-Over Certificates.
11. DEFECTS LIABILITY
40
11.3 EXTENSION OF DEFECTS NOTIFICATION PERIOD
Amend this Sub-Clause by inserting the following at the end of the first
sentence of the first paragraph:
‘attributable to the Contractor.’
Delete the last sentence of the first paragraph:
Interruptions of more than a total of 15 days during the Defects Notification

Period shall be added to the Defects Notification Period.
For any part, component, equipment, etc., remedied, repaired, replaced,
modified, etc., during the Defects Notification Period, an extended Defects
Notification Period shall start from the date of the re-trial test, so that the end
of the Defects Notification Period is at least 365 days after the completion of
the repair or replacement. The Engineer may decide that such an extended
Maintenance Period be applicable also to parts, components, equipment, etc.,
not having undergone repairs, replacement, etc., provided a mutual influence
between the repaired and renewed and existing parts exists and the existing
parts could be affected by the repair, modification, etc. However, the Defects
Notification Period shall not be extended by more than a total period of 400
days.
Other responsibilities and obligations of the Contractor shall not be influenced
by the above requirement.
13 VARIATIONS AND ADJUSTMENTS

13.3 VARIATION PROCEDURE
Replace the entire text of second paragraph of this Sub-Clause by the

followings:
The Contractor shall not delay any work whilst awaiting a response but shall
proceed with the varied work immediately upon receipt of an instruction to that
effect from the Engineer on the basis of the description of the programme for
the work included with the instruction.
The contractor however can choose to delay any work if the response to his
variation claim has not been settled within 3014 days of filing of claim.
13.7 ADJUSTMENTS FOR CHANGES IN LEGISLATION

Amend this Sub-Clause by adding following at the end:
Notwithstanding the foregoing, the Contract price shall not be adjusted to take
account of any increase or decrease in cost resulting from changes in the laws
or such interpretations made after the Base date to the extent that the same
shall already have been taken into account in the indexing of any inputs to the
41
table of adjustment data in accordance with the provisions of Sub-Clause 13.8
[Adjustments for Changes in Cost].
13.8 ADJUSTMENTS FOR CHANGES IN COST

Replace the whole text of this Sub-Clause by the followings:
This Sub-Clause shall not apply. The unit prices under the Contract are fixed
and are not subject to price adjustment for the duration of the Contract.
Contract Prices may be adjusted or changed due to variation in quantities.
14 CONTRACT PRICE AND PAYMENT

14.1 THE CONTRACT PRICE
DELETE THE SUB CLAUSE 14.1 (A)
The Contractor shall familiarize himself with the rules and regulations with
regard to income tax, customs, duties, other taxes, clearing of goods (Not
applicable) and equipment, immigration, transportation and the like, as are
applicable under the laws of Government of Nepal, and it will be necessary for
him to follow the required procedures regardless of any assistance
whichassistance, which may be provided by the Employer.
The Contractor shall pay all duties, taxes, fees and contributions levied in
Nepal in Nepalese Rupees as directed by the relevant governmental department
or office or any other authorized local statutory agency or body in accordance
with the relevant rules and regulations.
The Final Payment Certificate pursuant to Sub-Clause 14.13 shall be issued
only after submission by the Contractor to the Employer of an Income Tax
Clearance Certificate from the Government of Nepal for himself and any
foreign Subcontractors or Nominated Subcontractors employed on the Works.
(Not Applicable)
14.2 Advance Payment
Amend this Sub-Clause by replacing the fifth paragraph with the following:
The Employer shall make an interest-free advance payment to the Contractor

exclusively for the costs of mobilization and design in respect of the Works in
an amount equivalent to the percentage given in the Appendix to Tender
applied to both the foreign currency portions and the local currency portion of
the Accepted Contract Amount less the total value of Provisional Sums and
applicable VAT amount.
Payment of such advance amount will be due under separate certification by
the Engineer after:
i. execution of the Form of Agreement by the parties hereto;
ii. provision by the Contractor of the Performance Security in accordance with
Sub-Clause 4.2; and
42
iii. provision by the Contractor of a bank guarantee at his own cost in the
amounts and currencies equal to the advance payment from either a
Nepalese Bank or from a Foreign Bank counter-guaranteed by a Nepalese
Bank, acceptable to the Employer, in accordance with the specimen Form
included as Volume 1 Part 4 (Bid Forms) of the issued Bid Documents.
Such bank guarantee shall remain valid until the advance payment has been
fully repaid as specified below, but the amount thereof shall be
progressively reduced by the amount repaid by the Contractor as indicated
in Interim Payment Certificates issued in accordance with this Clause.
If the terms of the Advance Payment Security described in sub-paragraph (iii)
above specify its expiry date, and the advance payment has not been repaid by
the date 28 days prior to the expiry date, the Contractor shall extend the
validity of the guarantee until the advance payment has been repaid.
The advance payment paid in accordance with this Sub-Clause shall not be
subject to the deduction of retention in accordance with Sub-Clause 14.3.
Unless stated otherwise in the Appendix to Tender, the advance payment shall
be repaid through percentage deductions from the interim payments certified
by the Engineer in accordance with Sub-Clause 14.6 [Issue of Interim Payment
Certificates], as follows:
i. Deductions shall commence in the next Interim Payment Certificate
following that in which the total of all interim payments (excluding the
advance payment and deductions and repayments of retention) certified to
the Contractor has reached the percentage of the Accepted Contract Amount
stipulated in the Appendix to Tender less Provisional Sums; and
ii. Deductions shall be made at the amortization rate stated in the Appendix to
Tender of the amount of each Interim Payment Certificate (excluding the
advance payment and deductions for its repayments as well as deductions
for retention money) in the currencies and proportions of the advance
payment until such time as the advance payment has been repaid; always
provided that the advance payment shall be completely repaid prior to the
time when the percentage of the Accepted Contract Amount less Provisional
Sums stipulated in the Appendix to Tender has been certified for payment.
If the advance payment has not been repaid prior to the issue of the Taking-
Over Certificate for the Works or prior to termination under Clause 15
[Termination by Employer], Clause 16 [Suspension and Termination by
Contractor] or Clause 19 [Force Majeure] (as the case may be), the whole of
the balance then outstanding shall immediately become due and payable by the
Contractor to the Employer (after necessary compensation and losses beared by
the contractor)"
14.3 APPLICATION FOR INTERIM PAYMENT CERTIFICATE

Add the following new paragraph at the end of this Sub-Clause 14.3:
43
In the event that errors found in the certificate before and after the date of its
payment, the amount of error shall be adjusted in subsequent certificate in the
amount following that in which the error was found
14.4 SCHEDULE OF PAYMENT-(TO BE FINALIZED MUTUALLY AND PROPOSED

ACCEPTED SEPARATEY IN ATTACHED SHEET)
Delete the Sub-Clause 14.4 and substitute with following:
The Employer shall pay the Contractor in the following manner and at the
following times, on the basis of the Price Breakdown given in the Schedule of
Price. Payments will be made in the currencies quoted by the Bidder unless
otherwise agreed between the Parties.
14.6 ISSUE OF INTERIM PAYMENT CERTIFICATES
The Engineer may by any Interim Payment Certificate make any correction or
modification in any previous Interim Payment Certificate which has been
issued by the Engineer, and shall have authority, if any work is not being
carried out to his satisfaction, to omit or reduce the value of such work in any
Interim Payment Certificate.
14.7 PAYMENT
Delete the following words from sub-paragraph (b) of this Sub-Clause:
within 56 days
within 30 days
Delete the following words from sub-paragraph (c) of this Sub-Clause:
within 56 days
within 30 days.
Within 42 days following the date of receipt of the Contractor's Statement and
the required supporting documents with respect to each Interim Payment, the
Engineer shall return to the Contractor a copy of the Interim Payment
Certificate issued in accordance with Sub-Clause 14.6 relating to that
Statement.
44
With respect to the Final Payment Certificate, the Engineer shall return to the
Contractor a copy of the Payment Certificate for the Final Payment within 56
days following the date of receipt of the Contractor's Final Statement and the
required supporting documents in accordance with Sub-Clause 14.11.
Payment of the amount due in foreign currency under each Payment Certificate
shall be made by means of an irrevocable confirmed international Letter of
Credit payable in the Contractor’s home Country in favor of the Contractor for
the balance of the foreign currency portion of the Contract Price. The Letter of
Credit shall be in place after signing of the Contract Agreement. However, the
payment of the amount due in local currency portion shall be paid by issuing
Bank Cheques payable to the Contractor’s account in any commercial bank in
Nepal. (Not applicable, all payments to be made through Irrevocable
Letter of Credit Only)
The charges related to opening of the Letter of Credit shall be borne by the
Employer, whereas any charges related to the Contractor’s nominated bank
shall be borne by the Contractor.
14.8 DELAYED PAYMENT
Add the following wording at the end of the first paragraph in this Sub-
Clause 14.8:
In the event that any item for payment within a Statement is in dispute and the
respective Statement submitted by the Contractor does not include satisfactory
justification or substantiation with respect to that item, the period of delay for
the payment of that item shall be deemed to commence on the date, subsequent
to the date of the Statement, on which the Contractor submits the justification
or substantiation to the satisfaction of the Engineer.
Delete the second paragraph of this Sub-Clause 14.8 and substitute by the
following:
These financing charges shall be calculated at the annual rates indicated in the
Appendix to Tender and shall be paid in the currencies indicated in the
Appendix to Tender.
14.9 PAYMENT OF RETENTION MONEY
Delete the whole text of this Sub-Clause and Substitutes the following:
"When the Taking-Over Certificate has been issued for the whole of the Works
and the Works have passed all specified tests (including the Tests after
Completion, if any), the first half of the Retention Money shall be certified by
the Engineer for payment to the Contractor against bank guarantee issued by a
reputable bank or financial institution. The bank guarantee shall allow payment
on first demand. The bank guarantee will be released after completion of
Defects Notification Period. The Contractor shall ensure that the guarantee is
45
in the amounts and currencies of the first half of the Retention Money and is
valid and enforceable until the expiry of Defects Notification Period and
remedied any defects, as specified for the Performance Security in Sub-Clause
4.2. No payment of Retention Money shall be certified or paid when a Taking-
Over Certificate is issued for a Section or part of the Works.
After the latest of the expiry dates of the Defects Notification Periods, the
outstanding balance of the Retention Money shall be certified by the Engineer
for payment to the Contractor. Then, the Employer shall return the outstanding
balance of the retention money to the Contractor within 28 days after receiving
a copy of the Performance Certificate including following documents:
(a) Documentary evidence from the concerned Inland Revenue Office as
proof of submission of income statement and payment of all applicable
corporate income tax on any profits realized from this Contract and of all
personal income tax of the Contractor’s personnel, both local and
expatriate.
(b) Documentary evidence from the concerned Customs Office of Nepal as
proof of having removed all duty-exempt contractor’s Equipment and
Plant from Nepal or for Contractor’s equipment and Plant which have
been sold in Nepal that Duty thereon has been duly paid by the purchaser.
(In the case of materials and plant incorporated into the Works, no such
certificate or payment of Duty is required.)
However, if any work remains to be executed under Clause 11, the Engineer
shall be entitled to withhold certification of the estimated cost of such work
until it has been executed.
When calculating these proportions, no account shall be taken of any
adjustments under Sub-Clause 13.7 [Adjustments for Changes in Legislation]
and Sub-Clause 13.8 [Adjustments for Changes in Cost]."
(Not Applicable)
14.10 Statement at Completion
Add the following new paragraph after sub-paragraph (c.) of this Sub-
Clause:
The Contractor shall submit with his Statement at Completion the Income Tax
Clearance Certificate(s) from the tax authorities evidencing the payment of
Income Taxes due under the laws of Nepal with respect to the corporate tax,
tax withholding from personnel of the Contractor and his Subcontractors.
The Statement at Completion shall thus be the Contractor’s total statement for
all sums he considers to be his entitlement under the Contract except the
Retention Money (Not applicable) and other Works that may arise or as may
be instructed during the Defects Notification Period.
46
14.11 APPLICATION FOR FINAL PAYMENT CERTIFICATE
At the end of sub-paragraph (b) of this Sub-Clause add the following words:
including the outstanding balance of the Retention Money in accordance with

Sub-Clause 14.9.
15 TERMINATION BY EMPLOYER
15.2 TERMINATION BY EMPLOYER
RENUMBER SUB-PARAGRAPHS (E) AND (F) OF THIS SUB-CLAUSE

AS (F) AND (G) RESPECTIVELY, AND ADD THE FOLLOWING
NEW SUB-PARAGRAPH (E):
(E) HAS BECOME LIABLE IN ACCORDANCE WITH SUB-CLAUSE

8.7 FOR THE MAXIMUM AMOUNT OF DELAY DAMAGES
STATED IN THE APPENDIX TO TENDER.
DELETE THE FOLLOWING WORDS FROM SUB-PARAGRAPH (G)

OF THIS SUB-CLAUSE:
AS IS DESCRIBED IN THIS SUB-PARAGRAPH (F)
AND SUBSTITUTE THE FOLLOWING:
AS IS DESCRIBED IN THIS SUB-PARAGRAPH (G).
DELETE THE FOLLOWING PARAGRAPH OF THIS SUB-CLAUSE IN

ITS ENTIRETY:
IN ANY OF THESE EVENTS OR CIRCUMSTANCES, THE

EMPLOYER MAY, UPON GIVING 14 DAYS' NOTICE TO THE
CONTRACTOR, TERMINATE THE CONTRACT AND EXPEL
THE CONTRACTOR FROM THE SITE. HOWEVER, IN THE
CASE OF SUB-PARAGRAPH (E) OR (F), THE EMPLOYER MAY
BY NOTICE TERMINATE THE CONTRACT IMMEDIATELY.
AND SUBSTITUTE BY THE FOLLOWING:
IN ANY OF THESE EVENTS OR CIRCUMSTANCES, THE

EMPLOYER MAY, UPON GIVING 14 DAYS' NOTICE TO THE
47
CONTRACTOR, TERMINATE THE CONTRACT, EXPEL THE
CONTRACTOR FROM SITE AND ENTER INTO THE SITE
WITHOUT THEREBY VOIDING THE CONTRACT, OR
RELEASING THE CONTRACTOR FROM ANY OF HIS
OBLIGATIONS OR LIABILITIES UNDER THE CONTRACT, OR
AFFECTING THE RIGHTS AND POWERS CONFERRED ON THE
EMPLOYER OR THE ENGINEER BY THE CONTRACT..
HOWEVER, IN THE CASE OF SUB-PARAGRAPH (E) OR (F) OR
(G), THE EMPLOYER MAY BY NOTICE TERMINATE THE
CONTRACT IMMEDIATELY.
DELETE THE SECOND LAST PARAGRAPH OF THIS SUB-CLAUSE

IN ITS ENTIRETY AND SUBSTITUTE BY THE FOLLOWING:
AFTER TERMINATION, THE EMPLOYER MAY COMPLETE THE

WORKS AND/OR ARRANGE FOR ANY OTHER ENTITIES TO DO
SO. THE EMPLOYER AND THESE ENTITIES MAY THEN USE
ANY GOODS, CONTRACTOR'S DOCUMENTS AND OTHER
DESIGN DOCUMENTS MADE BY OR ON BEHALF OF THE
CONTRACTOR. THE EMPLOYER OR SUCH OTHER ENTITIES
MAY USE FOR SUCH COMPLETION SO MUCH OF THE
CONTRACTOR'S EQUIPMENT, TEMPORARY WORKS AND
MATERIALS, WHICH HAVE BEEN DEEMED TO BE RESERVED
EXCLUSIVELY FOR THE EXECUTION OF THE WORKS, UNDER
THE PROVISIONS OF THE CONTRACT, AS HE OR THEY MAY
THINK PROPER.
DELETE THE FOLLOWING WORDS FROM LAST PARAGRAPH OF

THIS SUB-CLAUSE:
THE EMPLOYER SHALL THEN GIVE NOTICE THAT THE

CONTRACTOR'S EQUIPMENT AND TEMPORARY WORKS
WILL BE RELEASED TO THE CONTRACTOR AT OR NEAR THE
SITE. THE CONTRACTOR SHALL PROMPTLY ARRANGE
THEIR REMOVAL, AT THE RISK AND COST OF THE
CONTRACTOR.
AND SUBSTITUTE THE FOLLOWING:
THE EMPLOYER SHALL THEN GIVE NOTICE THAT THE

WHICH IS NOT TO BE USED BY THE EMPLOYER OR OTHER
ENTITIES FOR COMPLETION OF THE WORKS WILL BE
RELEASED TO THE CONTRACTOR AT OR NEAR THE SITE.
48
FOLLOWING COMPLETION OF THE WORKS THE EMPLOYER
SHALL THEN GIVE FURTHER NOTICE THAT THE
WHICH WERE USED BY THE EMPLOYER OR OTHER
ENTITIES FOR COMPLETION OF THE WORKS WILL BE
RELEASED TO THE CONTRACTOR AT OR NEAR THE SITE.
FOLLOWING THE RECEIPT OF EACH OF THESE NOTICES THE

CONTRACTOR SHALL PROMPTLY ARRANGE THE REMOVAL
OF THE RESPECTIVE ITEMS OF CONTRACTOR'S EQUIPMENT
AND TEMPORARY WORKS BEING RELEASED BY THE
EMPLOYER, AT THE RISK AND COST OF THE CONTRACTOR.
(NOT APPLICABLE)
ADD THE FOLLOWING NEW SUB-CLAUSE 15.6:

15.6 CORRUPT OR FRAUDULENT PRACTICES
If the Employer determines, based on the reasonable evidence, that the
Contractor has engaged in corrupt, fraudulent, collusive or coercive practices,
in competing for or in executing the Contract, then the Employer may, after
giving 14 days’ notice to the Contractor, terminate the Contractor’s
employment under the Contract and expel him from the Site, and the
provisions of Clause 15 shall apply as if such expulsion had been made under
Sub- Clause 15.2 [Termination by Employer].
Should any employee of the Contractor be determined to have engaged in
corrupt, fraudulent or coercive practice during the execution of the work then
that employee shall be removed in accordance with Sub-Clause 6.9
[Contractor’s Personnel].
For the purposes of this Sub-Clause:
(i) “corrupt practice” means the offering, giving, receiving, or soliciting,
directly or indirectly, anything of value to influence improperly the actions
of another party in the procurement process or in the contract execution;
(ii) “fraudulent practice” means any act or omission, including a
misrepresentation of facts in order to influence a procurement process or
the execution of the contract to the detriment of the Employer;
(iii) “coercive practice” means impairing or harming, or threatening to impair
or harm, directly or indirectly, any party or the property of the party to
influence improperly the actions of a party;
(iv) “collusive practice” means an arrangement among Bidders (prior to or
after bid submission) designed to establish bid prices at artificial non-
competitive levels and deprive the Employer of the benefits of free and
open competition.
(v) “obstructive practice” means:
49
(i) deliberately destroying, falsifying, altering or concealing of evidence
material to the investigation or making false statements to
investigators in order to materially impede a GoN or Employer
investigation into allegations of a corrupt, fraudulent, coercive or
collusive practice; and/or threatening, harassing or intimidating any
party to prevent it from disclosing its knowledge of matters relevant to
the investigation or from pursuing the investigation; or
(ii) acts intended to materially impede the exercise of the GoN, Employer
or Financier’s inspection and audit rights.
The Contractor’s staff and labor will be liable to pay personal income taxes in
the Employer’s country in respect of such of their salaries and wages as are
chargeable under the laws and regulations for the time being in force, and the
Contractor shall perform such duties in regard to such deductions thereof as
may be imposed on him by such laws and regulations.
16 SUSPENSION AND TERMINATION BY CONTRACTOR

16.1 CONTRACTOR’S ENTITLEMENT TO SUSPEND WORK
Delete the paragraphs of this Sub-Clause from the words
If the Contractor suffers delays ..............or determine these matters.

(To stay and be a part of the agreement)
to the end of the Sub-clause.
16.2 TERMINATION BY CONTRACTOR
Delete the following words from the first line of sub-paragraph (a) of this
Sub-Clause:
within 42 days after
within 30 days after
Provided that any of the events referred to under (a) and (b) above occurs, the
Contractor shall prior to giving a Termination Notice serve notice (hereinafter
called a “Preliminary Notice”) on the Employer by registered letter stating that
the amount due under the relevant certificate has not been paid and requiring
payment or issue (as the case may be) of the relevant certificate in accordance
with the Contract within 14 days of the date of receipt of the Preliminary
Notice by the Employer. Only if payment or issue of the relevant certificate has
not been effected within such a 14-day period shall the Contractor be entitled
to issue a Termination Notice.
50
16.4 PAYMENT ON TERMINATION
Delete the entire contents of sub-paragraph(c) of this Sub-Clause.
(To stay and be part of the agreement)
17. RISK AND RESPONSIBILITY
17.3 EMPLOYER’S RISK
AMEND SUB-CLAUSE 17.3 BY REPLACING THE FIRST LINE WITH THE FOLLOWING:
THE EMPLOYER’S RISKS, INSOFAR AS THEY DIRECTLY AFFECT THE DESIGN AND
EXECUTION OF THE WORKS IN THE COUNTRY WHERE THE PERMANENT WORKS
ARE TO BE EXECUTED, ARE:
Delete the sub-paragraph (g) and substitute it by the following:

(g) design of any part of the Works by the Employer’s personnel or by others
for whom the Employer is responsible, except where the responsibility for such
design is assigned to the Contractor under the terms of the Contract, and
(Not Applicable)
Delete the sub paragraph (h) and substitute by the following:
(h) any operation of the forces of nature (insofar as it occurs on the Site) which
an experienced Contractor:
(i) could not have foreseen, or
(ii) could reasonably have foreseen but against which it could not
reasonably have predicted loss or damage to physical property from
occurring by taking appropriate measures, or insured against.
(Not Applicable)
117.6 LIMITATION OF LIABILITY
Amend Sub-Clause 17.6 by replacing the first paragraph with the following:
51
“Neither Party shall be liable to the other Party for loss of use of any Works,
loss of profit, loss of any contract or for any indirect or consequential loss or
damage which may be suffered by the other Party in connection with the
Contract, other than as specifically provided in Sub-Clause 8.7 [Delay
Damages]; Sub-Clause 11.2 [Cost of Remedying Defects]; Sub-Clause 15.4
[Payment after Termination]; Sub-Clause 16.4 [Payment on Termination];
Sub-Clause 17.1 [Indemnities]; Sub-Clause 17.4 (b) [Consequences of
Employer’s Risks] and Sub-Clause 17.5 [Intellectual and Industrial Property
Rights].”
Add the following new Sub-Clause 17.7 Security:
17.7 SECURITY
The Contract makes provision under Clause 17 [Risks and Responsibility] and
19 [Force Majeure] for the allocation of risks. The Contractor shall note that
the extent of the Employer’s liability under Clause 17 is limited only to
rectifying the loss or damage which has occurred to the Works, Goods or
Contractor’s Documents; it does not cover other costs that may have been
incurred by the Contractor.
The Contractor shall note that the definitions of Employer’s Risks under Sub-
Clause 17.3 (a), (b) and (c) shall not include acts of disruption by individuals
or groups acting for financial gain or attempting to disrupt the activities of the
Contractor, ordinary criminality, thefts, (Not Applicable and Employer shall be
liable for such losses incurred by the contractor due to local issues) or labor
conflicts or any other inconveniences that may occur during peace time
working conditions and no claim under Clause 17 will be accepted for such
acts.
18 INSURANCE
18.1 GENERAL REQUIREMENTS FOR INSURANCE
Delete the following text from the first paragraph of this Sub-Clause:
In this Clause, "insuring Party”, means, for each type of insurance, the Party
responsible for effecting and maintaining the insurance specified in the
relevant Sub-Clause.
In this Clause, "insuring Party”, means the Contractor for each type of
insurance, at his own expense, responsible for effecting and maintaining the
insurance specified in the relevant Sub-Clause.
Delete the following paragraph of this Sub-Clause:
52
Each Party shall comply with the conditions stipulated in each of the insurance
policies. The insuring Party shall keep the insurers informed of any relevant
changes to the execution of the Works and ensure that insurance is maintained
in accordance with this Clause.
and substitute by the following text:
The Contractor shall comply with the following:

(i) whenever required by the Employer, produce the policies or certificates of
any insurances which he is required to effect under the Contract together
with the receipts for the premiums;
(ii) effect all insurances for which he is responsible with an insurer and in
terms approved by the Employer;
(iii) make no material alterations to the terms of any insurance without the
Employer’s approval. If an insurer makes material alterations to the terms,
the Contractor shall forthwith notify the Employer; and
(iv) In all respects comply with any conditions stipulated in the insurance
policies which are in place.
Delete the following words of this Sub-Clause:
Nothing in this Clause limits the obligations, liabilities or responsibilities of the

Contractor or the Employer, under the other terms of the Contract or otherwise,
any amounts not insured or not recovered from the insurers shall be borne by
the Contractor and / or the Employer in accordance with these obligations,
liabilities or responsibilities.
and substitute by the following text:
The Contractor’s risks are risks other than those defined under Employer’s
Risks. Any amounts not insured or not recovered from the insurers shall be
borne by the Contractor.
18.2 INSURANCE OF WORKS AND CONTRACTOR’S EQUIPMENT
In the third line of the first paragraph of this Sub-Clause after the words:
... removal of debris and professional fees and profit.
add the following new sentence:
In the case of Plant the coverage by insurance shall be not less than the full
replacement value including delivery charges to Site.
Delete the following words from the fourth paragraph of this Sub-Clause:
53
Unless otherwise stated in the Particular Conditions, insurances under this Sub-
Clause:
Insurances under this Sub-Clause:
18.3 INSURANCE AGAINST INJURY TO PERSONS AND DAMAGE TO PROPERTY
Add the following sentence at the end of the first paragraph of this Sub-
Clause:
The scope of cover of this insurance shall cover activities connected with this
Contract at any location within Nepal, in addition to activities at the Site.
Delete the following words from the third paragraph of this Sub-Clause:
Unless otherwise stated in the Particular Conditions, the insurances specified in

this Sub-Clause:
The insurances specified in this Sub-Clause:
Add the following new sub-paragraphs (e), (f) and (g) after sub-paragraph
(d):
(e) The Contractor shall conduct his operations in such a manner as to

avoid injury or damage to adjacent property, improvements, or
facilities.
The Contractor shall be responsible for all damage to streets, roads,
highway, direct, embankments, bridges, culverts or other public or
private property, which may be caused by transporting equipment,
materials, or men to or from the Works. The Contractor shall make
satisfactory and acceptable arrangements with the property of owner
over the damaged property concerning its repair or replacement.
(f) The Contractor shall be held responsible for all damages which he may
cause to land or property outside his necessary working space.
Compensation for damage to such land or property will be assessed by
the Engineer for settlement by the Contractor through the Employer.
The Employer will be entitled to withhold from any payments due to
the Contractor’s sufficient sums as may appear to him to be necessary
to cover the Contractor’s liabilities until evidence is produced by the
Contractor to the Engineer to show the Contractor’s liabilities in this
respect have been finally settled and discharged.
(g) Any claim received by the Employer or Engineer in respect of matters
in which the Contractor is required under the Contract to indemnify
54
the Employer will be passed to the Contractor who shall likewise
inform the Employer and the Engineer of any such claim which is
submitted directly to him by a claimant. The Contractor shall do
everything necessary including notifying the insurers of claim
received, to ensure that claims are settled properly and expeditiously
and shall keep the Employer and the Engineer informed as to the
progress made towards settlement, failure to which the Employer shall
be entitled to make direct payment to claimants of all outstanding
amounts due to them in the Employer’s opinion and without prejudice
to any other method of recovery to deduct by way set-off the amounts
so paid from any sums or which become due from the Employer to the
Contractor.
18.4 INSURANCE OF CONTRACTOR’S PERSONNEL
Add the following wording at the end of the first paragraph of this Sub-
Clause:
The insurance and provision of benefits required in terms of this Sub-Clause

shall comply with the provisions of the worker’s compensation and employer
liability legislation in force in the country of residence of the employees. The
benefits payable under the Contractor’s insurance policy shall recognize local
cultural and economic conditions, and in addition to death and other benefits
will make specific provisions for repatriation of deceased employees, funeral
and burial costs. The terms of this policy shall be made known to the
Contractor’s staff and labor or to their recognized representatives.
Add the following sentence at the end of this Sub-Clause
The minimum cover for personal injury or death insurance for each
Contractor’s Personnel shall be NRs. 1.0 million with no limit on the number
of occurrences.
Add the following new Sub-Clauses 18.5 to 18.7:
18.5 OFF SITE INSURANCE

Where the Contract involves manufacturing and/or fabrication of the Works or
parts thereof at premises other than at the Site, the Contractor shall satisfy the
Employer that all the Materials and Plant for incorporation in the Works are
adequately insured during manufacture and/or fabrication and shipment to the
Site and that any cost associated with the provision of such insurance is
included in the Accepted Contract Amount.
18.6 MOTOR VEHICLE LIABILITY INSURANCE

The Contractor shall without limiting its obligations and responsibilities insure
against motor vehicle liabilities under an insurance providing (as a minimum) a
Balance of Third Party Risks and Passenger Liability Indemnity with a limit of
indemnify of not less than NRs. 2,1,000,000 per incident. This insurance shall
55
be additional to any mandatory insurance required in terms of the legislation of
Nepal.
18.7 PROTECTION AGAINST CANCELLATIONS

In all insurance policies, the cancellation of which, prior to the termination of
the period during which they are to be in effect in accordance with the
Contract, could result in any risk to the Employer or the Engineer, specific
clauses shall be incorporated enjoying the insured, the insurer, and any
reinsurer from cancelling such policy without prior written notice by registered
mail to the Employer, such notice to be received not less than 28 days previous
to cancellation.
In addition, any and all sums or reimbursements made or due from insurance
policies, and other security and guarantees as may be established by this
Contract, shall be made to the account of the Employer.
19. FORCE MAJEURE

19.1 DEFINITION OF FORCE MAJEURE
For the avoidance of doubt Force Majeure shall not include any unavailability
of Contractor’s Equipment, labor or Goods except as may be covered by
subparagraphs (i) to (v) above. The Contractor shall note that the definitions of
Force Majeure under Sub-Clause 19.1 shall not include normal acts of
disruption by individuals or groups acting for financial gain or attempting to
disrupt the activities of the Contractor, ordinary criminality, thefts, strikes or
labor conflicts or any other inconveniences that may occur during peace time
working conditions and no claim under Clause 19 will be accepted for such
acts. (Not Applicable)
20 CLAIMS, DISPUTES AND ARBITRATION

20.1 CONTRACTOR’S CLAIM
Delete the following texts from the fifth paragraph of this Sub-Clause:
‘or within such other period as may be proposed by the Contractor and
approved by the Engineer’
Add the following sentence after the sub-para (c) of fifth paragraph of this
Sub-Clause:
If the Contractor fails to send a fully detailed claim with full supporting
particulars within such period of 6042 days, the claim shall not be entertained.
(Not applicable)
56
Delete the following words from the seventh paragraph of this Sub-Clause:
Each Payment Certificate shall include such amounts for any claim as have
been reasonably substantiated as due under the relevant provision of the
Contract. Unless and until the particulars supplied are sufficient to substantiate
the whole of the claim, the Contractor shall only be entitled to payment for
such part of the claim as he has been able to substantiate.
and substitute with the following paragraph:
Notwithstanding any other provision of the Contract, if the Contractor intends

to claim any additional payment under any Clause of these Conditions or
otherwise in connection with the Contract, the Contractor shall give notice to
the Engineer, with sufficient details to substantiate the whole of the claim and
the Engineer shall forward such claim separately with his determination to the
Employer for approval. For the purpose of this paragraph the Employer shall
notify his agreement/disagreement to substantiated amounts to be paid against
claims which have been determined by the Engineer as soon as possible but in
any case within not more than 182 days after the notification by the Engineer
of such determination.
20.2 APPOINTMENT OF THE DISPUTE ADJUDICATION BOARD
Delete the following text from the third line of the first paragraph of this
Sub-Clause:
by the date 28 days
and substitute with the following:
by the date as stated in Appendix to Tender
Replace the whole text of the second paragraph of this Sub-Clause by the
following paragraph:
The DAB shall comprise, as stated in the Appendix to Tender, either one or
three suitably qualified persons (“the members”), each of whom shall be fluent
in the language for communication defined in the Contract and shall be a
professional experienced in the type of construction involved in the Works and
with the interpretation of contractual documents. If the number is not so stated
and the Parties do not agree otherwise, the DAB shall comprise three persons.
If the DAB is to comprise three persons, each Party shall nominate one
member for the approval of the other Party. The first two members shall
recommend and the Parties shall agree upon the third member, who shall act as
chairman. The members of the DAB shall be Nepalese Citizen. (Not
applicable)
Delete the following paragraph of this Sub-Clause:
57
The terms of the remuneration of either the sole member or each of the three
members, including the remuneration of any expert whom the DAB consults,
shall be mutually agreed upon by the Parties when agreeing the terms of
appointment. Each Party shall be responsible for paying one-half of this
remuneration.
And substitute by the followings:
The terms of the remuneration of either the sole member or each of the three
members, including the remuneration of any expert whom the DAB consults,
shall be mutually agreed upon by the Parties when agreeing the terms of
appointment. Each Party shall be responsible for payment of the remuneration
agreed for their respective nominated members and also paying one-half of this
remuneration of the chairman.
The form of payment will be negotiated with the DAB members in accordance
with the FIDIC guidelines. For the shared payment for the chairman it is
expected that payment will be based on a monthly retainer plus fees and
expenses for actual input when needed, and not on a permanent basis.
(Not Applicable)
Add the following new paragraph to the end of this Sub-Clause:
The Dispute Adjudication Agreement for each member of the three-person
DAB shall be in accordance with the specimen included in Volume 1 Part 3 of
the Bidding Documents.
20.3 Failure to Agree Dispute Adjudication Board
Replace the whole text of the sub-paragraph (b) of this Sub-Clause with the
followings:
(b) either Party fails to nominate a member (for approval by the other Party), or
fails to approve a member nominated by the other Party, of a DAB of three
persons by such date,
20.4 Obtaining Dispute Adjudication Board’s Decision
Add the following at the end of the first paragraph:
If the Contractor fails to refer a dispute to the DAB within such 28 days after
the receipt of the Engineer’s decision, the claim shall no longer be considered
as a valid claim. (Not applicable)
20.6 ARBITRATION
Delete the whole text of this Sub-Clause and substitute by the following
paragraphs:
58
Any dispute not settled amicably and in respect of which the DAB’s decision
(if any) has not become final and binding shall be finally settled by arbitration.
The dispute shall be finally settled in accordance with the Rules of Arbitration
of the United Nation Commission on International Trade Law (UNCITRAL).
The number of Arbitrator will be 3 (Three). The arbitration tribunal shall be
formed as follows:
The Employer and the Contractor shall appoint one arbitrator each to the
tribunal and the two arbitrators such appointed shall agree upon a third
arbitrator who will act as the Chairman. In case of failure of the two
Arbitrators appointed by the parties to reach upon a consensus within 30 days
from the appointment of the Arbitrator appointed in the last, the Presiding
Arbitrator (Chairman) shall be appointed by the Appointing Authority defined
in the Appendix to Tender. The Chairman of the three arbitrators shall be of a
nationality which is neither Nepalese nor that of the Contractor or, in case the
Contractor is a Joint Venture, of any of the Partners of the Joint Venture.
The venue of such Arbitration shall be Kathmandu, Nepal
The arbitration shall be conducted in the language for communications defined
in Sub-Clause 1.4 [Law and Language]
The arbitrators shall have full power to open up, review and revise any
certificate, determination, instruction, opinion or valuation of the Engineer, and
any decision of the DAB, relevant to the dispute. Nothing shall disqualify
representatives of the Parties and the Engineer from being called as a witness
and giving evidence before the arbitrators on any matter whatsoever relevant to
the dispute.
Neither Party shall be limited in the proceedings before the arbitrators to the
evidence or arguments previously put before the DAB to obtain its decision, or
to the reasons for dissatisfaction given in its notice of dissatisfaction. Any
decision of the DAB shall be admissible in evidence in the arbitration.
Arbitration may be commenced prior to or after completion of the Works. The
obligations of the Parties, the Engineer and the DAB shall not be altered by
reason of any arbitration being conducted during the progress of the Works.
Add the following new Clauses and Sub-Clauses 21 to 22
21 TAXATION, INCOME TAXES, IMPORT LICENSE, DUTIES ON

EQUIPMENT, PLANT AND MATERIALS
21.1 FOREIGN TAXATION
The priced bid by the Contractor shall include all taxes, duties and other
charges imposed outside the Employer’s country on the production,
59
manufacture, sale and transport of the Contractor’s Equipment, Plant, Materials
and supplies to be used on or furnished under the Contract, and on the services
performed under the Contract.
21.2 Local Taxation
UNLESS OTHERWISE SPECIFIED IN THE CONTRACT DOCUMENTS, THE PRICES BID BY THE
CONTRACTOR AND ITS SUPPLIERS AND SUBCONTRACTORS SHALL INCLUDE ALL
DUTIES, IMPORT DUTIES, BUSINESS TAXES, INCOME AND OTHER TAXES THAT MAY BE
LEVIED IN ACCORDANCE WITH THE LAWS AND REGULATIONS IN FORCE OR IN
EFFECT IN NEPAL AS OF THE DATE 28 DAYS PRIOR TO THE CLOSING DATE FOR
SUBMISSION OF BIDS IN THE EMPLOYER'S COUNTRY ON THE EQUIPMENT, PLANT,
MATERIALS AND SUPPLIES (PERMANENT, TEMPORARY AND CONSUMABLE)
ACQUIRED FOR THE PURPOSE OF THE CONTRACT AND ON THE SERVICES
PERFORMED UNDER THE CONTRACT. NOTHING IN THE CONTRACT SHALL RELIEVE
THE CONTRACTOR FROM HIS RESPONSIBILITY TO PAY ANY TAX THAT MAY BE
LEVIED IN THE EMPLOYER’S COUNTRY ON PROFITS MADE BY HIM IN RESPECT OF
THE CONTRACT.
(NOT APPLICABLE)
21.3 INCOME TAXES ON STAFF

The Contractor’s staff, personnel and labor, and those of its subcontractors,
will be liable to pay personal income taxes in the Employer’s country,
irrespective of whether they be local or foreign nationals, on income earned
including their salaries and wages as are chargeable under the laws and
regulations for the time being in force, and the Contractor shall perform such
duties in regard to such deductions thereof as may be imposed on him by such
laws and regulations.
However, expatriate (foreign) personnel shall not be liable for income tax
levied in the Employer’s country on earnings paid in any foreign currency, or
for income tax levied on subsistence, rentals and similar services directly
furnished by the Contractor to Contractor’s Personnel, or for allowances in
lieu. If any Contractor’s Personnel have part of their earnings paid in the
Employer’s country in a foreign currency, they may export (after conclusion of
their term of service on the Works) any balance remaining of their earnings
paid in foreign currencies. The Employer shall seek exemption for the purposes
of this Sub-Clause.
(Not applicable)
21.4 IMPORT LICENSE

The Contractor shall inform the Employer and the Engineer in writing of the
details of the equipment and materials to be imported into Nepal for use on the
Works at least 56 days prior to arrival of shipment at disembarkation port, and
shall submit a formal written request for assistance from the Employer for
importation processing. The Employer will assist the Contractor to obtain
necessary permits for import into Nepal. Import license fees or any other
charges shall be at the cost of the Contractor. The Contractor shall be
60
responsible for transport from the Port of Disembarkation to the Site or
location of the Works.
The Contractor shall determine and be fully responsible for payment of all
import licenses, fees or other such charges as may be imposed by the local or
any en-route customs authorities.
The Contractor shall determine these rates and their amounts at the time of
tender and takes full responsibility for including such costs within its tender.
(Not applicable)
21.5 Duties on Equipment, Plants and Materials
The Contractor shall familiarize himself with the rules and regulations with
regard to income tax, customs, duties, other taxes, clearing of goods and
equipment, immigration, transportation and the like, as are applicable under the
laws of Government of Nepal, and it will be necessary for him to follow the
required procedures regardless of any assistance which may be provided by the
Employer.
The Contractor shall pay all duties, taxes, fees and contributions levied in
Nepal in Nepalese Rupees as directed by the relevant governmental department
or office or any other authorized local statutory agency or body in accordance
with the relevant rules and regulations. Exchange rates between Nepalese
Rupees and foreign currency for taxation purposes shall be the prevailing
exchange rates at the time of the payment.
The following special conditions shall apply to Registration for Tax under this
Contract:
The Contractor and any foreign Subcontractors or Nominated Subcontractors
employed on the Works, if not already registered in Nepal, shall be required to
be registered with the concerned Inland Revenue Office for the purpose of the
Contract. The Contractor shall complete this registration no later than 28 days
after the date of signing the Contract Agreement. Certified copies of the
Income Tax Registration Certificate(s) shall be submitted to the Employer
within 14 days after registration.
The following special tax conditions shall apply to 'advance income tax' under
this Contract:
Advance Income Tax assessed in accordance with the prevailing Income Tax
Act of Nepal. A TDS (Tax Deductions at Source) at the rate of 1.5% of the
amount due before the addition of VAT shall be deducted from each payment
certificate under the Contract prior to payment to the Contractor. Each of such
‘Advance Income Tax’ deductions shall be deposited to the concerned tax
authorities and copies of the deposit slip will be provided to the Contractor.
The following special tax conditions shall apply to Import Duty and Value
Added Tax (VAT) for the Hydromechanical equipment imported for this
Project under this Contract:
Value Added Tax (VAT) shall be imposed according to prevailing laws and
regulations of Government of Nepal, on all equipment and plants purchased for
use in the contract Works. The Contractor shall submit request with VAT bills
61
to the Inland Revenue Office of GoN for reimbursement of the paid VAT
within the prescribed time, if applicable.
VAT is not applicable on import of the metal parts of Hydromechanical
equipment required for the project under this contract.
A special customs duty rate of 1% of the CIF to port of entry value shall be
paid on Hydromechanical equipment imported by the Contractor for executing
the Project under this Contract.
The Contractor shall state separately in his Statements (payment invoices) the
amounts paid at this special customs duty rate of 1% and these amounts shall
be reimbursed by the Employer to the Contractor.
The following special tax conditions shall apply to Customs Duty (import tax)
for Contractor’s construction equipment and machinery under this Contract:
Notwithstanding the provisions of this document, Contractor's Plant and
Equipment, including essential tools thereof, imported by the Contractor for
the sole purpose of executing the Contract, and taken out of Nepal (except the
spare parts) upon completion of the Works shall be exempt from payment of
customs duties and taxes levied in Nepal.
In order to be eligible for this exemption the Contractor shall be required to
deposit the amount or provide a bank guarantee to the Government of Nepal
Customs Department, with a copy to the Employer, equal to the amount of
applicable customs duties assessed in accordance with the prevailing laws,
rules and regulations of Nepal for those imported items at the time of import.
The amounts of the deposits so provided will be refunded, or the bank
guarantees cancelled by the Nepal Customs Department, after the submission
to the Nepal Customs Department of the re-export certificates with respect to
these items issued by the Customs Department.
If the Contractor disposes of any of these imported items (except the spare
parts) in Nepal, he shall pay all customs duties and taxes applicable on such
items under the laws and regulations of Nepal in force at that time.
In the event that the value of the imported spare parts for each item of the
construction equipment and machinery exceeds 10% of the CIF to port of entry
value of the respective item of imported construction equipment and
machinery, the Contractor shall be liable to pay all applicable taxes and duties
on the import of these imported spare parts.
Contractor shall re-export all the equipment, plant and materials
within 90 (Ninety) days after the issue of the Taking Over Certificate for whole
of the Works except that, if agreed by the Employer, any specifically identified
items of Equipment etc. which are required by the Contractor for the sole
purpose of executing activities under the Contract during the Defects
Notification Period may remain in Nepal but shall be re-exported within 90
days after Defects Notification Period.
Within ninety (90) days after the issue of Taking Over Certificate for whole of
the Works, any Plant or materials imported under this special rate and
exemption which have not been incorporated in the Works or consumed in
performance of the Works shall be taken out of Nepal or, if disposed of in
62
Nepal, the Contractor shall pay all additional duties and taxes applicable under
the laws and regulations of Nepal in force at the time.
The Contractor shall maintain records satisfactory to the Employer
documenting incorporation into the Works or consumption in performance of
the Works of all Plant and materials imported into Nepal. If any of such Plant
and/or materials imported into Nepal or otherwise supplied to the Project at a
special or preferential rate of Customs Duties or taxes, are found to be used,
appropriated or misused, or used for any other purposes other than this Project,
the Contractor will be held fully responsible, and liable to pay customs duties,
taxes and/or any penalties as may be imposed by any GoN authority, and in
accordance with the laws and regulations of Nepal.
In case, the Government of Nepal allows any concessions/ exemption in the
importation of plants, equipment and materials including any kind of lumpsum
exemptions in the local taxes especially for hydropower projects, the Contract
Price shall be adjusted accordingly to the benefit of the Employer.
Except only the exclusion of duties and taxes as provided above, the bid prices
shall include all other duties, taxes, fees and contributions that may be levied
according to the laws and regulations in effect in Nepal on the date 28 days
prior to the closing date for submission of bids on Contractor's Equipment,
Plant and materials (whether permanent, temporary or consumable) acquired
for the purpose of the Contract, on services performed under the Contract and
on revenue received under the Contract.
The Custom duties for Equipment, Plant and materials which will be
incorporated in to the Permanent Works, shall be paid by the Contractor at the
time of importation. The Employer shall reimburse such paid custom duties to
the Contractor upon submission of relevant documentary evidence.
The provisions of this Clause shall apply equally to foreign subcontractors or
nominated subcontractors of the Contractor employed on the Works.
Road cess shall be applied in accordance with the prevailing laws and
regulations of Nepal.
22 SUFFICIENT STOCK OF MATERIALS, SUPPLIES AND

EQUIPMENT INCLUDING SPARE PARTS
22.1 GENERAL REQUIREMENTS
Having regard to Nepal being the landlocked country and the remoteness of the
Project Site, the Contractor shall at all times arrange for sufficient stock of
general supplies, materials, fuel etc. including erection equipment and spare
parts at the Site. The stock of such materials and equipment at Site shall always
be sufficient for uninterrupted operation. There may be no vehicular access to
the Site during rainy seasons from June to October, due to regular landslides
along the Project Road to the Site including various section of the access road
from Bajhang to the Powerhouse site as well as from Khodpe to Bajhang.
Therefore, the Contractor shall prepare and maintain a stock of general
supplies and major construction materials at Site before the onset of the
monsoon that are sufficient for at least four months during that period. Failure
63
to maintain sufficient stock at Site or shortage of materials shall in no case be
the reasons for any claims including time extension.
(Not applicable)
64

3.0 Modified PCC by CBM and Than Corrected by Consultant

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PARTICULAR CONDITIONS OF CONTRACT (PCC)

Add the following new Sub-Clauses 1.1.2.11 to 1.1.2.14

1.1.2.11 ‘Government’ means the Government of Nepal.

Add the following new Sub-Clauses 1.1.6.10 to 1.1.6.13

1.1.6.10 ‘Project’ means the Suni Gad Hydropower Project.

Replace the text in sub-paragraph (d) by the following:

(d) ‘written’ or ‘in writing’ means hand-written, type-written or printed,

Add the following new paragraph at the end of the Sub-Clause:

(e) In these Conditions, provisions including the expression ‘Cost plus

Add the following sentences at the end of the last paragraph:

Add the following new paragraph at the end of this Sub-Clause:

The Engineer may require the Contractor to attend a management meeting in

1.4 LAW AND LANGUAGE

Replace the text of this Sub-clause by the following:

1.5 PRIORITY OF CONTRACT DOCUMENT

(a) The Contract Agreement,

Add the following at the end of this Sub-Clause:

Add the following at the end of this Sub-Clause:

Any modifications in the constitution of the Contractor or in joint venture to its

1.8 CARE AND SUPPLY OF DOCUMENTS

Add the following new paragraph at the end of this Sub-Clause:

1.9 ERRORS IN THE EMPLOYER’S REQUIREMENT

1.12 CONFIDENTIAL DETAILS

Add the following at the end of this Sub-Clause:

1.13 COMPLIANCE WITH LAWS

Add the following new paragraph at the end of this Sub-Clause:

Add the following new Sub-Clause 1.15:

1.15 INSPECTIONS BY THE FINANCIER

Add the following new paragraph at the end of this Sub-Clause:

Delete the following sentence from the third paragraph:

and substitute by the following:

Add following sub-paragraph (d) after sub-paragraph (c):

(d) any act by the Engineer in response to a Contractor’s request, except as

Add the following new paragraphs at the end of this Sub-Clause:

3.4 REPLACEMENT OF THE ENGINEER

Delete the following words of this Sub-Clause:

not less than 42 days

and substitute by the following:

not less than 14 days

Add the following new Sub-Clause 3.6 to 3.7:

3.6 MANAGEMENT MEETINGS

3.7 EMERGENCY WORK

Add the following at the end of this Sub-Clause:

4.2 PERFORMANCE SECURITY

Replace the third paragraph with the following:

The Performance Security shall be valid until a date minimum of 30 days

4.3 CONTRACTOR’S REPRESENTATIVE

Replace the last paragraph of this sub-Clause with the following:

The Contractor’s authorized representative shall be competent in speaking,

At the end of this Sub-Clause add following paragraphs:

(ii) The nature and scope of the Works to be subcontracted;

(iii) Information on the Subcontractor’s experience of carrying out similar

(iv) The approximate value of the Works to be subcontracted based on the

(v) The percentage of (iv) above as a proportion of the Accepted Contract

At the end of this Sub-Clause add the following paragraphs:

The Project involves other contracts including in particular Lot 03-

And substitute by the following:

‘Nevertheless the Contractor shall be responsible for the verification of the

4.8 SAFETY PROCEDURES

At the end of this Sub-Clause add the following paragraph:

4.10 SITE DATA

At the end of this Sub-Clause add the following paragraph: