Annexure C Terms & Conditions Supply and Installation of 11 kV Medium

Voltage System_R1

PRICE & QUANTITIES

Our price & the quantities are firm for the scope of supply as per the bill of quantity (Annexure A -
Price schedule). All line items in the BOQ shall be subjected to VAT, SSCL and other taxes at the
time of invoicing (VAT %, SSCL and the taxes decided by the Government rules and regulations at
the time of invoicing).

Considered this is as a duty Paid project. The all-other expenses such as Duty, PAL, SSCL, CESS,
Clearing, Delivery and etc. are considered.

VALIDITY
Prices are valid till 4th September 2023, beyond which the same shall be subjected to our further
confirmation.

TERMS OF PAYMENT

100% value of the foreign supply items (MV switchgear, Transformers, MV cable, Battery Bank)
shall be paid through a TT / irrevocable LC at sight depends on the value of the order directly to
foreign suppliers

40 % of total project value (After deducting the values of the imports) shall be paid as an advance
payment along with the order confirmation. The advance amount shall be claimed by the customer
on pro rata basis on each progress bill payment.

The balance amount shall be paid as progress payment weekly/monthly depends on the order
execution duration.

Final payment shall be released on soft copies of the final testing & commissioning report. The hard
copied of the testing & commissioning reports with engineer’s signature shall be handed over with
3 working days from the date of receipt of the final payment.

The payment shall be arranged by the customer within 2 weeks from the date of receipt of the
invoice.

The customer/main contractor shall retain max. 5% from each bill as retention money. And then
50% of the retained amount shall be released just after energization of the system and the balance
shall be released on a bank guaranty valid till end of the project.

EXCHANGE RATES
The considered exchange rates are 1USD = 370 LKR, 1SGD = 228.09 LKR, 1INR = 3.63 LKR. If the
above-mentioned exchange rates change beyond +/- 1 %, both parties can reimburse from each
other.

Voltas Engineering (Pvt.) Ltd. Page 1 of 3

 Annexure C Terms & Conditions Supply and Installation of 11 kV Medium
Voltage System_R1

DELIVERY, MOBILIZATION AND COMPLETION

MV Cable – 16 – 18 weeks from date of the PO, Approval of the data sheets/Drum schedule and
advance payment whichever take placed at last.

Transformer – 18-20 weeks from date of the PO, Approval of the technical specifications and
drawings schedule and advance payment whichever take placed at last.

Termination Kits - 12 - 14 weeks from the date of PO, Approval of the data sheets and advance
payment whichever take placed at last.

MV Switchgear- 20 - 23 weeks from Drawing approval & Manufacturing clearance

Battery Bank - 18 - 20 weeks from the date of receiving PO and approved drawings

Mobilization will be after 1-2 weeks from the delivery of major materials and completion will be
done within 4-5 weeks from the mobilization. This completion period can be negotiated according
to the main project schedule.

ALTERATION/ AMENDMENTS
Any addition/ deduction in our scope of supply (any consequent price variation in the order), shall
be settled by mutual consent. Necessary order amendment shall be released by you immediately
such amendments would result in changes in delivery schedule as well as prices, which would be
confirmed in writing by us.

WARRANTEES/ GUARANTEE
Equipment shall be under warranty against defective design, materials and the poor workmanship
for 18 months from the date of delivery or 12 months from the date of commissioning whichever
comes earlier.

Installation is under warranty against the poor workmanship for 12 months from date of
commissioning.

The guarantee does not cover any damage caused through negligence and/or misuse of equipment
and/or any unauthorized alteration to the system by the servants/agents of the client or force
major.

ORDER CANCELLATION CHARGES

In case of order cancellation, minimum of 35% of order value (For Supply Value Only) will be
charged. Further to that actual will be charge if the factory demurrage is more than 35% of the
order value.

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 Annexure C Terms & Conditions Supply and Installation of 11 kV Medium
Voltage System_R1

PACKING
The prices are inclusive of packing charges for importing items. Packing shall be done as per our
standard practice for palletizing suitable for container / truck transport.

EXTRA/ADDITIONAL WORK
Extra/Additional work will only be carried out upon receipt of written approval by the Main
Contractor/ Client for the estimates produced by Voltas Engineering (Pvt) Ltd.

SERVICES REQIRED FROM MAIN CONTRACTOR /CLIENT

Civil Work, Electricity for erection & commissioning, Other Utilities, Security for equipment &
Material, Space for Office/Storage shall be provided by the Customer free of charge.
TOOLS & TACKLES
All necessary tools & tackles required for completing the project will be supplied by us.

CIVIL WORKS
Any civil work is not included in our scope. E.g.: Transformer base, Cable trenches, making breaking
walls or roads and re-constructions, making access roads, etc.

FORCE MAJEURE
The contractor will not be responsible for delay or non-performance of his contractual obligations
to complete / hand over and the client will not be responsible for delay or non-performance of its
contractual obligations to take over and accept all or any part of the contracted works so delayed
or not performed by war, civil commotion, riots, act of God, fire, floods, earth quakes, pandemics
and other conditions which are beyond our control.

CONSEQUENTIAL DAMAGES
The contractor will not be responsible for all consequential losses suffered by the client due to non-
performance of his contractual obligations.

SPECIAL NOTES

1. This value engineering offer consist of GIS Switchgear panel instead of AIS Switchgear panel
2. Will not be able to accept back-to-back payment terms due to lesser profit margins
considering the prevailing economic condition in the country.
3. Required security for the equipment/tools shall be arranged by the Customer free of charge.
4. Required site clearance for crane operation for the MV switchgear & Transformer placing
shall be arrange by the customer or Main contractor.
5. Electricity and water (Not for Drinking) during the construction period shall be provided by
the Customer free of charge.

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