RFQ-Offshore Pipeline Piled Supports-SPM

HINDUSTAN PETROLEUM CORPORATION LTD
Single Point Mooring System Project for Visakh Refinery of HPCL

INSTALLATION OF PILED SUPPORTS FOR 48 OFFSHORE PIPELINE OF SINGLE POINT MOORING SYSTEM
INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
TENDER DOCUMENT
FOR
INSTALLATION OF PILED SUPPORTS FOR 48-INCH
OFFSHORE PIPELINE
OF
SINGLE POINT MOORING SYSTEM PROJECT
OF
VISAKH REFINERY
OF
HINDUSTAN PETROLEUM CORPORATION LIMITED
(HPCL)
RFQ NO: 21534102-501-ITB-021
Date: 18.12.2010
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INDEX
SECTION
NO:
TABLE OF CONTENTS
NOTICE INVITING TENDER (NIT)
PRE-QUALIFICATION CRITERIA IN DETAIL
INSTRUCTION TO BIDDERS
SPECIAL CONDITIONS OF CONTRACT (SCC)
SCOPE OF WORK
SCHEDULE OF PRICE
TABLE-1
BREAKDOWN OF PRICE FOR

INSTALLATION OF PILED SUPPORTS FOR
48-INCH OFFSHORE PIPELINE
FORMAT A
CIF VALUE OF IMPORTED ITEMS.
FORMAT B - EXCISE DUTY FOR INDIGENOUS SUPPLY.

7
CHECK LIST
ANNEXURES
Annexure -1
Acknowledgement
Annexure-2
Undertaking by bidder
Annexure -3
Format for Exemptions & Deviations
Annexure -4
Cut out slip
Annexure-5
Terms Of Payment
Annexure-6
Loading factors
PROJECT DOCUMENT AND DRAWINGS
Long term remedial work proposed for HPCL subsea

pipeline at the sand trap area
10
GENERAL CONDITIONS OF CONTRACT (GCC)
11
INTEGRITY PACT
12
HPCL FORMATS
*****************
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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
SECTION 1
NOTICE INVITING TENDER (NIT)
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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
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Notice Inviting Tender (NIT)

Sealed BIDs under Two bid system (PART I UNPRICED Bid and PART II PRICED
BID) are invited from Bidders meeting both the Technical & Financial Pre-qualification
criteria mentioned below for Installation of Piled Supports for 48-Inch offshore pipeline of
Single Point Mooring System Project of Visakh Refinery of Hindustan Petroleum
Corporation Limited (HPCL) .
The details of the BID are as follows:
1)
Request for Quotation (RFQ) Number 21534102-501-ITB-021
2)
RFQ Name
3)
4)
5)
6a)
Tender Fee
Tender issue date
Bid Due Date
Bid opening date and time
(PART I UNPRICED)
6b) Venue
7)
Site Visit & Pre-Bid meeting

Venue
8)
EMD Amount/ BID fee
Installation of Piled Supports for 48-Inch

offshore pipeline of Single Point Mooring
Project of Visakh Refinery of Hindustan
Petroleum Corporation Limited
Rs. 5,000/- (Five Thousand Rupees only)
18.12.2010
17.01.2011 1430 hours IST
Bid submission shall be only at HPCL office in
Mumbai at the address mentioned below:
Mr. Prakash. Wankhade
Senior Manager-Materials,
Central Engineering,
Petroleum House,
Hindustan Petroleum Corporation Ltd
17, Jamshedji Tata Road,
Churchgate, Mumbai-400 020.
Bid opening will at 1530 hours IST on
17.01.2011 in presence of attending bidders at
HPCL Office in Mumbai.
28.12.2010; 0930 Hours IST
Bidders to meet in the office of Mr. K. K. Singh
(DGM-Projects),
Hindustan
Petroleum
Corporation
Ltd,
Visakh
Refinery,
Visakhapatnam, India.
i) Indian Bidders - Rs.17,50,000/(Indian Rupees Seventeen Lakhs and fifty
thousand only).
ii) Bids without EMD are liable for rejection
at the sole discretion of HPCL/INTEC.
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INTEC Doc. No:21534102-501-ITB-021
9)
Date: 18.12.2010
Rev 0
Pre Qualification Criteria.

Bidders who intend to participate shall meet the following minimum requirements and
only such bidders shall be pre-qualified for this tender. Bidders are requested to submit
documentary proof of having met the technical & financial criteria.
A) TECHNICAL CRITERIA
I.
Bidder shall have marine construction experience in any of the fields such as
civil, fabrication and installation of structures, piling, offshore installation, pipeline
supports, platforms, rigs, jetty etc. in water depths ranging from 5m to 15m.
Bidder should have experience or back to back arrangements for diving experience
covering installation and inspection of pipeline, civil and steel structures in water
depths ranging from 5m to 15m.
Bidder preferably be the vessel owner and operator of marine spread with piling
equipment or have confirmed arrangement for hire of such vessels for the
proposed work. For which bidder shall submit documentary proof of such
arrangement along with their bid.
Bidder shall have experience of having successfully carried out and completed
similar work(which is also mentioned in clause 2.1-A-I) during the last 7 years
ending last day of the month previous to the one in which applications are invited,
which experience should be any one of the following:
II.
III.
IV.
a.
Three similar completed works, each costing not less than Rs. 4 Crores for Indian
Bidders
or
b. Two similar completed works, each costing not less than Rs. 5 Crores for Indian
Bidders .
or
c. One similar completed work costing not less than Rs. 8 Crores for Indian Bidders
Bidders fulfilling all above Technical criteria (i.e Section 2.1-A)-I to Section 2.1-A)IV .)will only be considered for further evaluation.
B) FINANCIAL CRITERIA
Average Annual Financial Turnover during the last 3 years, ending 31st
March, of the previous financial year, should be at least Rs. 3 Crores for Indian
Bidders
Bidders fulfilling both the above Technical and Financial criteria will only be
considered for further evaluation.
(Detailed Pre-qualification criteria along with other requirements is given in Section 2
of tender documents)
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10) Period of Completion
Date: 18.12.2010
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2 months from date of Fax of Acceptance (FOA) but no work

shall exceed beyond February 2011.
11) Submission of BIDs:

Bids complete in all respect shall be submitted as per Instruction to Bidders in the BID
document. Bids submitted not in the manner detailed are liable to be rejected at the sole
discretion of HPCL/INTEC.
12) BID Validity
Bids shall be kept valid for a minimum period of 4 (Four) months
from bid due date or extended bid due date.
13) HPCL/INTEC takes no responsibility for delay, loss or non-receipt of bidding
documents sent by post / courier. Telex/telegraphic/Tele-fax/E-mail bids shall not be
accepted. Bids not received by the bid due date/ closing date and time (both late and
delayed) shall be rejected and representative(s) of such bidders will not be allowed to
attend the Tender opening.
14) HPCL/INTEC will not be responsible for any costs or expenses incurred by the bidder in
connection with preparation or submission of bids, participating in discussions, etc.,
including costs and expenses related with visits to the site(s).
15) The Tender document is non-transferable.
16) No preference will be given to Indian Public Sector Enterprises (PSE).
17) HPCL/INTEC reserves the right to accept or reject any or all the bids or make any
change in the terms and conditions of the bid document, at their sole discretion without
assigning any reason whatsoever.
HPCL/INTEC also reserves the absolute right to reject any or all bids at any time solely
based on the past unsatisfactory performance by the bidder / bidders in HPCL, the
opinion / decision of HPCL/INTEC regarding the same being final and conclusive.
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18) Bidders are requested to acknowledge receipt of this bid document along with all
enclosures and send their acknowledgement as per Annexure 1.
Bidders may send their confirmation atleast 7 days prior to bid closing date regarding
their participation in the subject bid. The correspondence address is as follows:
Mr. Prakash Wankhade
Senior Manager-Materials,
Petroleum House,
Hindustan Petroleum Corporation Limited,
Mumbai- 400 020, India.
Telephone
: 0091 22 22863633
e-mail
: pwankhade@hpcl.co.in
Mr. M Mohan
Project Manger
M/S INTEC Asia Pacific Sdn Bhd
19th Floor, Sunway Tower 2,
86, Jalang Ampang,
50450 Kuala Lumpur, Malaysia
Tel: + 603 2032 2488
Email: 21534102.visakh@intecsea.com
19) Bidder to note that Grievance Redressal Mechanism is available for all such
bidders participating in the tender. The details of the Grievance Redressal
Mechanism are available on HPCL website
www.hindustanpetroleum.com.
All communications in this regard to be sent to Head-Materials, Central Engg.
Co-ordinator, Grievance Redressal Cell, Central Engineering, Hindustan
Petroleum Corpn. Ltd., Petroleum House, 6th Floor, 17 J R D Tata Road,
Mumbai 400 020.
The names of the Independent External Monitors appointed for our HPCL are
given below :
1. Mrs Ranjana Kumar
2. Shri D Chatterjee
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Date: 18.12.2010
SECTION 2
PRE-QUALIFICATION CRITERIA IN DETAIL
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GENERAL
Bidders are requested to submit documentary proof in support of meeting the prequalification criteria mentioned below, along with PART-I UNPRICED part of the
bid.
2.1
PRE-QUALIFICATION CRITERIA
A)
TECHNICAL CRITERIA
I. Bidder shall have marine construction experience in any of the fields such as
civil, fabrication and installation of structures, piling, offshore installation, pipeline
supports, platforms, rigs, jetty etc. in water depths ranging from 5m to 15m.
II. Bidder should have experience or back to back arrangements for diving
experience covering installation and inspection of pipeline, civil and steel structures
in water depths ranging from 5m to 15m.
III Bidder preferably be the vessel owner and operator of marine spread with piling
equipment or have confirmed arrangement for hire of such vessels for the proposed
work. For which bidder shall submit documentary proof of such arrangement along
with their bid.
IV. Bidder shall have experience of having successfully carried out and completed
similar work(which is also mentioned in clause 2.1-A-I) during the last 7 years
ending last day of the month previous to the one in which applications are invited,
which experience should be any one of the following:
a Three similar completed works, each costing not less than Rs. 4 Crores for Indian
Bidders
or
b. Two similar completed works, each costing not less than Rs. 5 Crores for Indian
Bidders .
or
c. One similar completed work costing not less than Rs. 8 Crores for Indian Bidders
Bidders fulfilling all above Technical criteria (i.e Section 2.1-A)-I to Section 2.1-A)IV .)will only be considered for further evaluation..
B)
FINANCIAL CRITERIA
Average Annual Financial Turnover during the last 3 years, ending 31st
March, of the previous financial year, should be at least Rs. 3 Crores for Indian
Bidders and
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Bidders fulfilling both the above Technical and financial criteria will only be
considered for further evaluation.
2.2
OTHER REQUIREMENTS
2.2.1 Technical : The following other requirements shall be applied for the prequalification of Bidders:
a) Bidder must indicate in the bid the detailed execution methodology for the proposed
work. The proposed methodology shall be subject to review and approval by Owner/
PMC.
b) Bidders must necessarily furnish documentary evidence to substantiate experience,
claimed by them with specific reference to responsibility in Installation, Value of job
completed by copies of the purchase orders and Certificate of Completion for similar
projects of this nature from respective Owner / Client etc.
c) BIDDER submitting their PQ details shall not be under liquidation, court receivership or
similar proceedings.
d) BIDDER must ensure that the following activities are performed by them directly and
not sub-contracted:
i)
Project Management.
ii)
Planning, Scheduling and Monitoring.
iii)
Construction Management.
e) The BIDDER must provide details of their barges/vessels/dredgers they proposes to

engage for this job ie whether OWNER / hired / leased. If not OWNED, bidder to
provide commitment letter / agreement from the OWNER for the same for the period of
construction. The decision of OWNER / PMC regarding the suitability of
barges/vessels/dredgers shall be final and binding.
f) BIDDER shall also ensure the following for the residual engineering work:
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Residual engineering shall be performed by the Installation CONTRACTOR or

specified / approved Engineering sub-CONTRACTOR. No further sub-contracting shall
be permitted.
However, no part of the work nor any share or interest therein shall in any manner or
degree be transferred, assigned or sub-let by the Bidder directly or indirectly to Owners
Project Management Consultant (PMC) and or any Subsidiary / Associate / Affiliate /
Joint venture of the PMC.
g) All sub-contractors proposed to be deployed shall be subject to approval by OWNER /
PMC.
BIDDERS who either do not meet the above mentioned pre-qualification criteria or who
take any deviation to the terms and conditions mentioned therein shall not be prequalified at the sole discretion of HPCL/INTEC. Bids of only those bidders meeting the
pre-qualification criteria will be considered for further techno-commercial evaluation.
The decision of OWNER/PMC in this regard will be final and binding on the bidders.
OWNER/ PMC shall hold a Pre-Bid conference / Site Visit with BIDDERS at
28.12.2010; 0930 Hours IST
2.2.2
ASSOCIATE
If the bidder proposes to take up the package jointly with an Associate (whether Indian
or Foreign) or they relies upon the experience of such an Associate, with whom the
bidder has entered into a tie-up/teaming agreement/MOU, the bidder shall submit the
following details/documents:
i)
ii)
iii)
iv)
Details of the experience of the Associate

Attested copies of documents evidencing the joint arrangement between the
bidder and the Associate like joint venture agreement, tie-up or teaming
agreement, MOU etc.
Valid undertaking or guarantees from the Associate making it liable for the due
execution and completion of the work/job and
Consent letter from the Associate for entering into a tripartite agreement (on
HPCLs format) amongst the Associate, Bidder and HPCL after the work is
awarded.
Parties who are affiliates of one another can decide which Affiliate will make a bid.
Only one affiliate may submit a bid. Two or more affiliates are not permitted to make
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separate bids directly or indirectly. If 2 or more affiliates submit a bid, then any one or
all of them are liable for disqualification. However upto 3 affiliates may make a joint bid
as a consortium, and in which case the conditions applicable to a consortium shall apply
to them.
Affiliate of a Party shall mean any company or legal entity which:
(a) controls either directly or indirectly a Party, or
(b) which is controlled directly or indirectly by a Party; or
(c) is directly or indirectly controlled by a company, legal entity or partnership which
directly or indirectly controls a Party.
Control means actual control or ownership of at least a 50% voting or other
controlling interest that gives the power to direct, or cause the direction of, the
management and material business decisions of the controlled entity.
4. Bids may be submitted by:
a) a single person/ entity (called sole bidder);
b) a newly formed incorporated joint venture (JV) which has not completed 3
financial years from the date of commencement of business;
c) a consortium (including an unincorporated JV) having a maximum of 3 (three)
members;
d) an Indian arm of a foreign company.
5. Fulfilment of Eligibility criteria and certain additional conditions in respect of each of
the above 4 types of bidders is stated below, respectively:
a) The sole bidder (including an incorporated JV which has completed 3 financial
years after date of commencement of business) shall fulfil each eligibility criteria.
b) In case the bidder is a newly formed and incorporated joint venture and which has
not completed three financial years from the date of commencement of business,
then either the said JV shall fulfil each eligibility criteria or any one constituent
member/ promoter of such a JV shall fulfil each eligibility criteria. If the bid is
received with the proposal that one constituent member/ promoter fulfils each
eligibility criteria, then this member/promoter shall be clearly identified and he/it
shall assume all obligations under the contract and provide such comfort
letter/guarantees as may be required by Owner. The guarantees shall cover inter alia
the commitment of the member/ promoter to complete the entire work in all
respects and in a timely fashion, being bound by all the obligations under the
contract, an undertaking to provide all necessary technical and financial support to
the JV to ensure completion of the contract when awarded, an undertaking not to
withdraw from the JV till completion of the work, etc.
c) In case the bidder(s) is/are a consortium (including an unincorporated JV), then
the following conditions shall apply:
1) Each member in a consortium may only be a legal entity and not an individual
person;
2) the Bid shall specifically identify and describe each member of the consortium;
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3) the consortium member descriptions shall indicate what type of legal entity the
member is and its jurisdiction of incorporation (or of establishment as a legal\
entity other than as a corporation) and provide evidence by a copy of the articles
of incorporation (or equivalent documents);
4) One participant member of the consortium shall be identified as the Prime
member and contracting entity for the consortium;
5) this prime member shall be solely responsible for all aspects of the Bid/Proposal
including the execution of all tasks and performance of all consortium
obligations;
6) the prime member shall fulfil each eligibility criteria;
7) a commitment shall be given from each of the consortium members in the form
of a letter signed by a duly authorized officer clearly identifying the role of the
member in the Bid and the members commitment to perform all relevant tasks
and obligations in support of the Prime/lead member of the Consortium and a
commitment not to withdraw from the consortium;
8) No change shall be permitted in the number, nature or share holding pattern of
the Consortium members after pre-qualification, without the prior written
permission of the Owner.
9) No change in project plans, timetables or pricing will be permitted as a
consequence of any withdrawal or failure to perform by a consortium member;
10) No consortium member shall hold less than 25% stake in a consortium;
11) Entities which are affiliates of one another are allowed to bid either as a sole
bidder or as a consortium only;
12) Any person or entity can bid either singly or as a member of only one
consortium.
d) In case the bidder is an Indian arm (subsidiary, authorized agent, branch office or
affiliate) of a foreign bidder, then the foreign bidder shall have to fulfill each
eligibility criteria. If such foreign company desires that the contract be entered into
with the Indian arm, then a proper back to back continuing (parent company)
guarantee shall be provided by the foreign company clearly stating that in case of any
failure of any supply or performance of the equipment, machinery, material or plant
or completion of the work in all respects and as per the warranties/ guarantees that
may have been given, then the foreign company shall assume all obligations under
the contract. Towards this purpose, it shall provide such comfort letter/guarantees as
may be required by Owner. The guarantees shall cover inter alia the commitment of
the foreign company to complete the entire work in all respects and in a timely
fashion, being bound by all the obligations under the contract, an undertaking to
provide all necessary technical and financial support to the Indian arm or to render
the same themselves so as to ensure completion of the contract when awarded, an
undertaking not to withdraw from the contract till completion of the work, etc.
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In the absence of above information in the PQ bidding document, the bid is liable
to be rejected.
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SECTION 3
INSTRUCTION TO BIDDERS
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TABLE OF CONTENTS
3.0
3.1
DEFINITI0NS
3.1.1
COST OF BIDDING
3.1.2
BID FEE
3.1.3
CONTENTS OF BIDDING DOCUMENT
3.1.4
CLARIFICATION ON BIDDING DOCUMENT
3.1.5
ADDENDUM / CORRIGENDUM TO BIDDING DOCUMENT
3.1.6
LANGUAGE OF BIDS
3.1.7
CORRECTIONS IN BID
3.1.8
CONFIDENTIALITY OF BID DOCUMENT
3.1.9
PROCESS TO BE CONFIDENTIAL
3.1.10
WRONG INFORMATION
3.1.11
CLARIFICATION OF BIDS
3.1.12
COMPANY DOCUMENTS
3.1.13
SITE VISIT
3.1.14
PRE-BID MEETING
3.1.15
CORRECTION OF ERRORS IN PRICE BIDS
3.1.16
OWNERS RIGHT TO ACCEPT /REJECT ANY OR ALL BIDS
3.1.17
FIRM OFFER
3.1.18
FORM OF BID / ADDITIONAL REQUIREMENT
3.1.19
INDIAN LAWS
3.1.20
TRANSFER OF BID DOCUMENTS
3.2
TECHNICAL REQUIREMENTS
3.2.1
PROJECT EXECUTION PROCEDURE
3.2.2
PROJECT EXECUTION PLAN
3.2.3
TECHNICAL SUBMISSION
3.3
3.3.1
PROCEDURE FOR BID SUBMISSION AND AWARD

SUBMISSION OF BIDS
GENERAL
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3.3.2
SIGNING OF BIDS
3.3.3
DELAYED/LATE /INCOMPLETE BIDS
3.3.4
BID CURRENCIES AND PAYMENT
3.3.5
BID VALIDITY
3.3.6
BID OPENING
3.3.7
DEVIATION TO BID REQUIREMENT
3.3.8
BID EVALUATION CRITERIA
3.3.9
CONDITIONS FOR FORFEITURE OF BID SECURITY
3.3.10
MODIFICATION AND WITHDRAWL OF BID
3.3.11
NOTIFICATION OF AWARD
3.3.12
SIGNING OF CONTRACT AGREEMENT
3.3.13
SECURITY DEPOSIT
3.3.14
PROJECT MANAGEMENT CONSULTANT
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DEFINITION AND INTERPRETATION

The following words and expressions shall have the meanings hereby assigned to
them except where the context otherwise requires provided that if any interpretation
is required under any circumstance, the decision of the OWNER/COMPANY with
regard to the same shall be final and binding on the parties. The following shall be
read in conjunction with Definitions mentioned in Cl. 2 of GCC.
a.
The COMPANY / OWNER shall mean Hindustan Petroleum Corporation

Limited, Petroleum House, 17, Jamshedji Tata Road, Mumbai-400 020, India
b.
The CONTRACTOR/INSTALLATION CONTRACTOR shall mean the

person or persons, firm or company whose Tender has been accepted by OWNER
and includes the Contractor/Installation Contractors Legal Representatives, his
Successors and permitted Assigns.
c.
CONSULTANT/PMC shall mean the Consulting Engineers to the OWNER for

this project.
d.
The Tender/ Bid shall mean the tender / bid submitted by the CONTRACTOR
for acceptance by OWNER.
e.
The COMPANY REPRESENTATIVE/OWNERS REPRESENTATIVE

shall mean the person designated as such by the COMPANY/OWNER and shall
include his Authorised Nominee or Agent, provided however that the COMPANY/
OWNERs Representative to be so designated by COMPANY/OWNER may be one
person for certain aspects of this Agreement and another person for other aspects of
WORK covered by this CONTRACT.
f.
The PROJECT MANAGER shall mean Manager-in-Charge at this Project

designated by CONSULTANT/PMC or his Successor or his Authorised Nominee.
g.
The ENGINEER-IN-CHARGE shall mean the person nominated from time to

time by the CONSULTANT/PMC/OWNER and shall include those who are
expressly authorized by CONSULTANT/PMC/OWNER to act for and on its behalf
for operation of this CONTRACT.
h.
ENGINEER-IN-CHARGES REPRESENTATIVE shall mean any Resident

Engineer or Assistant to the Engineer-in-Charge appointed from to time by the
Engineer-in-Charge to perform the duties set forth in the Tender Document whose
authority shall be notified in writing to the CONTRACTOR by
COMPANY/PMC/Engineer-in-Charge.
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i. The SUB-CONTRACTOR shall mean any person or firm or company (other than
the CONTRACTOR) to whom any part of work has been entrusted by the
CONTRACTOR, with the written consent of the Engineer-in-Charge, and the Legal
Representatives, Successors and permitted Assigns of such person, firm or
Company.
j. The WORK shall mean and include all things, matters and facilities to be
surveyed, designated, engineered, procured, fabricated, loaded out, tied down, sea
fastened, towed out, transported, installed, tested, commissioned made good and
guaranteed by contractor in accordance with the CONTRACT and shall include all
extras, additional, altered, or substituted works as required for the purpose of the
CONTRACT.
k. The CONTRACT shall mean the agreement between OWNER and
CONTRACTOR for the execution of the WORK including therein all documents
such as the Notice Inviting Tender (NIT), Instructions to Bidders, General
Conditions of Contract, Special Conditions of Contract, Specifications, Drawings,
General Requirements, Time Schedule, Schedule of Prices, Letter of Acceptance of
Tender, Agreed Variations, if any etc.
l. The CONTRACT DOCUMENT shall mean collectively the Tender/Bid
Documents, Drawings, Specifications, General Conditions of Contract, Special
Conditions of Contract, Schedule of Rates/Prices, Instruction to Bidders, Letter of
Acceptance of Tender, Agreed Variation, if any and other documents constituting the
Tender and acceptance thereof.
m. CONSTRUCTIONAL PLANT/EQUIPMENT shall mean means all Plants,
Barges, Vessels/Floating crafts, equipments, tools, appliances, things, facilities,
machinery, apparatus of whatever nature needed, in or about the work or temporary
works (as hereinafter defined) or execution of works covered under the contract but
does not includes materials or other things intended to form or forming part of the
works.
n. TEMPORARY WORK shall mean all temporary works of every kind required in
or about the execution, completion or maintenance of the WORK.
o. SPECIFICATIONS shall mean all directions, various technical specifications,
provisions and requirements attached to the CONTRACT, which pertain to the
method and manner of performing the WORK to the quantities and qualities of the
WORK and the materials to be furnished under the CONTRACT for the WORK as
may be amplified or modified by Owner/PMC. Drawings for the performance of the
CONTRACT in order to provide the unforeseen conditions or in the best interests of
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the WORK. It shall also include the latest edition including all addenda/corrigenda
of relevant Specifications and Codes.
p. DRAWINGS shall include maps, plans, sketches and tracings or prints thereof
with any modifications approved by writing by the owner/PMC/Engineer-in-Charge
and such other Drawings as may from time to time be furnished or approved in
writing by the Owner/PMC/Engineer-in-Charge.
q. SITE shall mean the land and water and other places on, under in or through
which the work is to be carried out and any other lands, water or places provided by
Owner for the purpose of the CONTRACT together with any place designated in the
CONTRACT as forming part of the SITE.
r. Notice in Writing or Written Notice, shall mean a notice written, typed or
printed form sent (unless delivered personally) or otherwise proved to have been
received by registered post / courier / fax to the last known private or business
address or registered office of the CONTRACTOR and shall be deemed to have been
received in the ordinary course of post as if it would have been delivered.
s. The COMPLETION CERTIFICATE / PROVISIONAL ACCEPTANCE shall
mean certificate to be issued by the PMC/Engineer-in-Charge when the WORK has
been completed as per the CONTRACT.
t. The FINAL CERTIFICATE in relation to the WORK shall mean the certificate
regarding the satisfactory compliance of the various provisions of the CONTRACT
by the CONTRACTOR issued by the PMC/Engineer-in-Charge after the period of
liability is over.
u. Approved shall mean approved in writing including subsequent written
confirmation of previous verbal approval and Approval means approval in writing
including as aforesaid.
v. The Period of Liability in relation to a WORK means the specified period from
the date of completion of WORK as indicated in completion certificate up to the date
of issue of final certificate during which the CONTRACTOR stands responsible for
rectifying all defects that may appear in the WORK.
w. The Alteration/Variation Order means an order given in writing by the
PMC/Engineer-in-Charge to effect additions to or deletions from and alterations in
the WORK.
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x. Fax of Acceptance shall mean the first intimation by FAX by OWNER to the
successful bidder whose tender has been accepted. The date of issue of the Fax of
acceptance shall be reckoned as the commencement date of the contract.
y. Letter of Acceptance shall mean an intimation by a Letter to Tenderer that the
Tender has been accepted in accordance with the provisions contained therein.
z.
Construction Schedule means that sequence and plan of construction activity as

affecting or being included in the work which may be represented in drawings
indicating the construction activity and completion as planned and which will not be
altered except with written consent of the COMPANY/PMC which consent shall not
be unreasonably withheld.
aa. Construction Season means that portion of the year between 1st December of one
year and last day of February of the next year both days inclusive when weather is
generally good for offshore construction activities because the occurrence of violent
storms and/or monsoons is least likely.
bb. Construction Superintendent(s) means those person(s) designated in writing by
the contractor to the COMPANY/PMC as being in full charge of each spread
performing works at the site.
cc. Day means a Calendar day of twenty four (24) consecutive hours beginning at
0000 hrs (midnight) and ending at 2400 hrs (midnight) as referred to local time at the
site.
dd. Demobilisation of any Spread means removal of all that spread from the site and
clean up and restoration as stipulated in the contract, as applying to that part of the
site in which that spread was employed.
ee. Demobilisation of the Contractor means removal of all things forming part of
the Mobilisation of the contractor including all temporary facilities, return of
personnel and equipment and the clean up and restoration of the site as required in
this contract.
ff. Guarantee means the period and
warranty/guarantee in respect of the works.
other
conditions
governing
the
gg. Inspector(s) means the person or persons of independent agency designated by the
COMPANY in writing to the contractor to observe test, record and report to the
COMPANY/PMC quality surveillance of the contractors work.
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hh. Kick-off Meeting means a meeting convened by the COMPANY to discuss and
finalise the work execution plan and procedures with the contractor.
ii. Mechanical Completion All equipments, pipelines etc have been installed and
tested by the CONTRACTOR in accordance with PROJECT specifications /
drawings, etc and is ready for pre-commissioning.
jj. Pre-Commissioning includes checking and testing of the equipment, machinery
etc. following MECHANICAL COMPLETION necessary to enable the PROJECT
to be ready for COMMISSIONING including full system leak test, SPM
installation and allignment check etc that are made by the CONTRACTOR as
required by the contract and making them ready for use.
kk.
Commissioning means completion of unloading of first crude oil tanker as

required by the contract documents.
ll.
Mobilisation of any Spread means performance by the contractor of all those

things necessary for the spread to be fully ready to execute work at the site
satisfying all work pre-requisites stipulated in the contract as certified by Third
Party Inspection and Certification Agency..
mm. Mobilisation of the Contractor means performance by the contractor of all

those thing necessary to be fully ready to execute work at site satisfying all work
pre-requisites stipulated in the contract. Mobilisation of the contractor shall
include but shall not be limited to providing of all transport from points of origin to
site, all equipment and materials of construction, all personnel, satisfaction of
Government requirements, all logistical support to the construction operations and
setting up at site in a condition of full readiness to execute work.
nn.
Monsoon Season means that portion of the year between 16th June through 15th
September (both days inclusive) when monsoon, storms and high seas are of such
frequency and intensity at offshore site location that construction work cannot be
scheduled with any assurance.
oo.
Punch list means those minor items/jobs relating to works outstanding at the
time of pre-commissioning which do not affect the normal operations of the
COMPANY and which have been mutually agreed by the COMPANY/PMC and
the Contractor to be carried out/further completed (within a fixed time frame) by
the contractor to the satisfaction of the COMPANY/PMC in accordance with the
contract.
pp. Scheduled Completion Date means a date when the completion of entire works is
scheduled to be achieved in accordance with the construction schedule. The
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scheduled completion date for entire works of this project shall be as per section
4.7.5 of Special Conditions of Contract.
qq. Spread shall mean that combination of construction equipment including all
necessary work barges, material barges, supporting tugs etc. and whatever is
required to execute the works and personnel as defined in the contract and Schedule
of Rates and Prices capable of performing specific portion of the work e.g. Derrick
barge spread, hook-up barge spread etc.
rr. Third Party means any group, agency, person or persons who may be engaged in
activity associated with the work specified but who shall remain at arms length from
the work and who shall not have a direct responsibility or authority under the terms
of this contract, or any contractual relationship to the COMPANY, the contractor or
the contractors sub-contractor for the works.
ss. Vendor when used in connection with materials/plants/equipments/spare parts
procurement, means the equipment/materials manufacturer, supplier (authorized and
approved by the equipment(s) manufacturer) of materials/plants/equipments/ spare
parts to the contractor.
tt. Free issue materials are the Material which the COMPANY has agreed to supply
free of cost to the CONTRACTOR.
uu.
Surplus Material All materials and supplies, but specifically excluding

COMPANY approved Commissioning spares, which are surplus upon PRECOMMISSIONING Of PROJECT and which shall, after PRE-COMMISSIONING
return to the COMPANY
vv.
Warranty Surveyor Any marine surveyor appointed by COMPANY for

insurance warranty or other purposes.
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3.1
Date: 18.12.2010
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GENERAL
The Instructions to Bidders have been detailed out in order to facilitate the Bidders
to submit their Bids considering various aspects spelt out in the subsequent
paragraphs. Instructions are in addition to the General Instructions to Bidders
regarding submission of tender given in Cl .3 of General Conditions of Contract
(GCC) and the instructions mentioned below will take precedence over the
instructions contained in Cl 3 of General Conditions of Contract to the extent of
contradiction.
3.1.1 Cost of Bidding

The Bidder shall bear all costs associated with the preparation and submission of
Bid, attending bid meetings and visiting site or any other location in connection with
bidding and HPCL hereinafter referred to as the OWNER will in no case be
responsible or liable for these costs regardless of the conduct or outcome of the
bidding process. Each Bidder accept and agrees, as a condition of submitting its Bid
that it waives any and all claims against OWNER/PMC, its Co-ventures and their
affiliates, for remuneration or restitution relating to its costs and expenses in.
3.1.2 BID FEE
Bids without the BID fee prescribed in NIT shall be considered as incomplete, and
are liable for rejection at the sole discretion of HPCL/INTEC. BID fee shall be in the
form of crossed Demand Draft drawn in favour of Hindustan Petroleum Corporation
Ltd payable at Mumbai or in the form of a Bank Guarantee in the prescribed
proforma. The Demand Draft/Bank Guarantee shall be from any of the
Nationalised/Scheduled Banks of India for Indian Bidders and for non-Indian bidders
the same shall be from an Indian branch of a foreign bank or any nationalized /
scheduled commercial bank in India.The BGs shall be valid for a period of 8 months
from the date of submission of the bid. The BG shall be in non-judicial stamp paper
of appropriate value, as per HPCL format.
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3.1.3 Contents Of Bidding Document

The Bidder is expected to examine carefully all instructions, conditions, forms and
terms given in the Bidding Documents. Failure to furnish all information required
by the Bidding Document or not responsive to the requirements of the Bidding
Document will be at the Bidders risk, and may result in rejection of the bid.
3.1.4 Clarification On Bidding Document
All questions and results for interpretations or clarifications relating to bid Document
shall be addressed in writing by fax / e-mail at the address mentioned below:
M/s. INTEC Asia Pacific SDN BHD
19th Floor, Sunway Tower 2,
86, Jalang Ampang,
50450 Kuala Lumpur, Malaysia
Tel: + 603 2032 2488
Email: 21534102.visakh@intec.com
Attn: Mr. M. Mohan, Project Manager
and a copy to
The Senior Manager-Materials,
Attn: Mr. Prakash Wankhade,
Central Engineering
Petroleum House,
Hindustan Petroleum Corporation Limited,
17, Jamshedji Tata Road, Mumbai- 400 020,India
Telephone
: 0091 22 22863633
e-mail : pwankhade@hpcl.co.in
The OWNER/PMC will respond in writing or by fax / e-mail to any such request for
clarification which they receive earlier than 7 days prior to the deadline for the
submission of bid. Any such inquiries and all replies there to will be circulated to all
bidders (without identifying the source of enquiry), unless a bidder request that such
enquiry is to be treated as confidential.
If confidentiality is requested,
OWNER/PMC shall decide, in its sole opinion and without giving reasons, whether
such inquiry should be treated as confidential. If the decision is not to treat the
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inquiry as confidential, Bidder will be given the option to withdrawing the inquiry or
confirming that the inquiry as well as the reply may be circulated to all Bidders. If
deemed appropriate by OWNER/PMC, a reply may be furnished or subsequently
repeated in the form of a written addendum to the bid document.
3.1.5 Addendum /Corrigendum To Bidding Documents
At any time prior to the deadline for opening of Bids, the Owner/PMC may, for
any reason whether at their own initiation or in response to a clarification requested
by a prospective Bidder(s), modify the Bidding Documents by the issuance of an
Addendum(s) / Corrigendum(s). Addendum(s) / Corrigendum(s) will be sent in
writing or by Fax/email to all Bidders and will be binding upon them. Bidder shall
promptly acknowledge receipt of these by Fax/email to the Owner/PMC and shall
enclose one copy of such Addendum(s) / Corrigendum(s) along with the Bid. All
such Addendum(s) / Corrigendum(s) issued shall form part of Bidding Documents.
All addenda/corrigenda issued during the time of bidding will be deemed to have
been taken into account in the Bid and such addenda/corrigenda will be incorporated
into the Purchase Order.
3.1.6 Language of Bids
The bid prepared by the Bidder and all correspondence and documents relating to the
bid, exchanged by the Bidder and the OWNER/PMC, shall be written in the English
language. All information in the Bid shall be in English language. Information in
any other language shall be accompanied with its translation in English. Failure to
comply with this condition may disqualify a BID. In the event of any
contradictions between meanings as derived from various languages of the BID,
the meaning as derived from English language copy of the BID shall govern.
3.1.7 Corrections in Bid
All changes / alterations / corrections in the BID shall be signed in full by the person
or persons signing the Bid, with date. No erasure, use of correction fluid and / or
overwriting is permitted. All blank spaces shall be filled in by typewriter or in ink
and inter-lineation, alterations or erasures, if any occur, shall be formally explained
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over the signature of authorized representative. Noncompliance/ violation of this

requirement may be cause for the rejection of the Bid.
3.1.8 Confidentiality of Bid Document
The bidder shall not disclose any information contained in the bid document or
otherwise supplied in connection with this bid to any third party, except for the
purpose of preparing its BID and shall require any such third party to treat such
information as confidential.
3.1.9 Process to Be Confidential
After the opening of bids, information relating to the examination, clarification,
evaluation and comparison of bids and recommendations concerning to award of
contract shall not be disclosed to Bidders.
Canvassing in any form by the Bidder or by any other Agency on behalf of the
Bidder after submission of the Bid may disqualify the said Bid. Any effort by a
Bidder to influence the OWNER/PMC in the process of examination, clarification,
evaluation and comparison of Bids, and in decisions concerning award of contract,
may also result in the rejection of the said Bid.
3.1.10 Wrong Information
If the Bidder deliberately gives wrong information in their Bid to create
circumstances for the acceptance of their Bid, OWNER/PMC reserves the right to
reject such Bids without any reference to the Bidder.
3.1.11 Clarifications of Bids
In the event of finding any discrepancies in or omissions from the Bid Documents, or
should the Bidder be in doubt as to the meaning of such documents, Bidder shall
immediately notify HPCL/INTEC, either by facsimile or letter, at the address shown
in point no. 3.1.4 above, who will thereupon, if required, send necessary written
instructions to all Bidders. Any such request shall reach HPCL/INTEC not later than
seven (7) days prior to the closing date / bid due date.
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As part of examination, evaluation and comparison of Bids, OWNER/PMC may at

their discretion, ask Bidders individually for clarification or call them for discussion
at HPCL/INTEC office of theirs Bids. While seeking technical clarifications, bidders
shall be advised to indicate any financial implications arising out of such
clarifications in a separate cover super scribed with PRICE IMPLICATION
DUE TO TECHNICAL AND/OR COMMERCIAL CLARIFICATIONS. The
same along with the initial price bid will be opened. The priced quotations of the
bidders whose offers are technically unacceptable will not be opened and their bids
shall not be considered further.
For Techno-Commercial clarifications, bidders shall normally be given a cut off date
for furnishing clarifications. Clarifications received after the specified cut off date
are liable not to be considered for evaluation. Technical Query (TQ)/Commercial
Query (CQ) will be issued to bidders through E-Mail. Reply of TQ/CQ shall also be
received through E-Mail, as far as possible. However price implication, if any shall
be received in sealed envelope only.
Wherever revised offers have been called for based on change in technical
specification / scope of supply etc, the revised offers will only be considered.
3.1.12 COMPANY Documents
The Documents and any other information provided by COMPANY/PMC are for
information purposes only. BIDDER shall verify this information through their own
sources prior to using it for preparation of Bidders PROPOSAL. COMPANY/PMC
shall not be held responsible for any errors or omissions in this information provided
to BIDDER. Errors and / or contradictions in the documents / specifications should
be brought to the notice of the OWNER/PMC before the opening of price bids.
Errors / omissions / contradictions brought to notice after opening of price bids, shall
not be reason for change / variation order.
3.1.13 Site Visit
The COMPANY/PMC will arrange on 28.12.2010; 0930 Hours IST, for the
BIDDER to visit the WORK SITE. COMPANY/PMC will delegate a representative
to accompany the Bidders personnel to inspect the WORK SITE which shall be
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entirely at the Bidders risk and cost. BIDDER shall not take a team of more than 3
(Three) persons on such a visit.
BIDDER shall be responsible for obtaining and maintaining the necessary VISA /
permits and documentation with respect to entry, stay, work in INDIA, from the
relevant authorities. Even any exit / departure permits to leave India shall be
obtained by BIDDER.
All communication pertaining to the visit to the WORK SITE shall be to the address
indicated in this Section.
Note: Bidder has to make necessary arrangement for offshore visit, if required at
their own cost.
3.1.14 Pre-Bid Meeting
COMPANY/PMC will arrange a pre-bid meeting on 28.12.2010; 0930 Hours IST, a
pre-bid meeting concerning the RFQ, which shall be held at COMPANY/PMCs
sole discretion.
At least seven (7) working days prior to any meeting to be held upon Bidders
request, BIDDER shall submit to COMPANY/PMC an agenda of all subjects to be
discussed including a brief summary of each subject. BIDDER shall be permitted to
represent at this meeting by a maximum no of 3 (three) personnel, whose names and
designation shall be sent along with Bidders request for such a meeting.
COMPANY/PMC shall not permit any such clarification meeting to be used as a
means of negotiation with respect to the proposed CONTRACT and / or any of its
terms and conditions and the Price.
All expenses incurred by BIDDER for the clarification meeting(s) shall be at
Bidders own account.
3.1.15 Correction of errors in price bids
Owner/PMC will check Price Bids for any arithmetic errors in computation and
summation. Owner/PMC will correct errors as follows:
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Where there is a discrepancy between amounts in figures and words, the amount in
words will govern.
Where there is a discrepancy between the lump sum prices and price break up, in
that event lump sum prices will be considered final and break up of prices adjusted
accordingly.
3.1.16 Owner/PMCs Rights To Accept / Reject Any Or All Bids
Notwithstanding what is stated above, Owner/PMC reserves the right to accept or
reject any or all Bids at any time prior to the award of contract without assigning any
reason whatsoever and without thereby incurring any liability to the affected Bidder
for Owner/PMCs action.
3.1.17 Firm Offer
The prices quoted by bidders shall remain firm, fixed and valid until completion of
the Contract performance to the satisfaction of the Owner/PMC and will not be
subject to escalation / variation on any account. It may be noted that no deviation on
this account will be acceptable and offer not containing firm price will not be
considered for evaluation.
3.1.18 Form Of Bid / Additional Requirement
The forms given in the Bid Document are the minimum requirements to be furnished
by the bidder. Additional information, if required, can also be attached with the
form.
3.1.19 Indian Laws
Bidder is reminded that they will be subject to Indian laws, Government of India
rules and regulations/ guidelines, practices and conditions as applicable from time to
time. All matters shall be subject to jurisdiction of Indian courts only.
3.1.20 Local Conditions
It will be imperative for each bidder to fully inform themselves of all local
conditions and factors which may have any effect on the execution of the contract as
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described in the Bidding Documents.
Rev 0
In their own interest, the bidders are
particularly requested to familiarize themselves with the Income Tax & Withholding
Tax, Insurances, the Companies Act, the Customs & Excise duties, Service Tax,
Works Contract Tax and other related acts and laws prevalent in India.
3.1.20 Transfer of bidding documents

Transfer of Bidding documents Purchased by / issued to one Bidder to another
Bidder is not permissible. Similarly, transfer of Bid submitted by one Bidder to
another is also not permissible.
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TECHNICAL REQUIREMENTS
BIDDER is requested to submit a Technical Proposal containing the information and
in the format as set out in the following attachments.
Attachment-A Project Execution Procedures
BIDDER shall provide description of its procedures for performing construction and
installation procedures and systems for Project management, Construction
management, Control, Testing, Commissioning etc.
Attachment-B Project Execution Plan
The Project Execution Plan shall be a discrete document which provides an outline
and explanation of the Bidders proposal approach towards organisation, planning,
management, and execution of the Installation of the Piles.
Attachment-C Technical Submission
BIDDER is required to submit a Technical Submission containing the minimum
information required by the COMPANY/PMC to allow it to analyse and evaluate the
technical basis of the Bidders Technical Proposal.
In preparing its Technical Proposal, BIDDER is required to review the BID
DOCUMENT and the Project Specifications in particular and bring to
COMPANY/PMCs attention any omissions, conflicts, or discrepancies.
3.2.1 Attachment-A Project Execution Procedures

BIDDER is to provide common procedures and systems to be used by each office
where WORK is to be performed.
a)
The BIDDER shall submit copies of all the procedures it proposes to be used
in the performance of WORK. Preferentially, BIDDER should propose its
standard procedures with which its work force is already fully familiar, but
modified as necessary to meet the requirements if this RFQ. In developing the
procedures BIDDER should take full notice of COMPANY/PMCs requirements
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per the PROJECT SPECIFICATION, BIDDER shall as a minimum, provide the

following Project Execution Procedures.
i) A description of Bidders engineering and technical organization and provide
an explanation of procedures for engineering and in-house review of
engineering.
ii) A description of Bidders proposed material control organization, techniques
and procedures including:
Organization for material control through engineering, procurement, shipping
and construction including definition of related responsibilities.
-
Procedures for take-off of bulk materials, including allowances for

losses during fabrication and construction.
Details of systems used for material control
Sample report forms

A description of Bidders proposed inspection organization, techniques
and procedures including:
iii)
Organization of subcontracting function including the organizational

responsibility of subcontracting.
Details of subcontracting procedures
Sample agreement forms
iv)
Details of the physical progress measurement system which BIDDER

proposes to use for monitoring actual progress of the WORK in both
home office and SITE. The system shall reflect the scheduling level
breakdown structure as submitted by BIDDER in the TECHNICAL
PROPOSAL.
v)
A description of Bidders proposed cost estimation procedures including

clear statement of the methods which are used to establish quantities and
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how much information will be presented in order that the

COMPANY/PMC can establish the validity of prices included in any
requests for CHANGES IN THE WORK.
A description of Bidders proposed construction safety and health
organization and safety procedures including:
vi)
Construction safety and health policy organization.
Field safety and health organization including a description of how

BIDDER normally implements construction safety at work
site and
the roles/responsibilities of its management. BIDDER shall state the
staff it employs as construction safety advisors. If a full-time field safety
engineer is not assigned to the project, explain who performs safety
engineers responsibilities and identify what qualifications said person
would have for this position.
Detail of field safety and health program including training programs,

safety meetings and publicity, safety motivation and incentive plans,
safety inspection, medical facilities, site security, and sanitation, with a
complete discussion of the measures the BIDDER follows to tailor its
procedure to the requirement of a project.
Methods BIDDER uses to obtain compliance by Subcontractors with

field safety and health requirements. BIDDER shall also supply a typical
subcontract form that demonstrates that required awareness and
commitment to safety and health is an integral part of all subcontract to
be awarded.
Bidders normal procedures for recording site safety statistics including

those of its Subcontractors, and actual accident statistics from recent jobs
constructed in the same country with similar conditions.
Copy of a typical site safety and health manual intended for use by the
labour force. It should be one that was used for a project constructed in
India or in a country with similar conditions.
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A manual of Bidders proposed Quality Assurance System, which shall

include Quality Assurance objectives, policies, and procedures to
demonstrate completeness of coverage.
vii)
The essential subjects to be covered in this manual are:
Organization of the quality Assurance Personnel

Control of engineering and Design
Document and Design Change Control
Qualifications of Vendors
Control of Procurement
Audit of Vendors Quality Assurance systems and Procedures
Inspection of Materials, Supplied and Spare Parts
Positive Material Identification
Qualification of Subcontractors
SUBCONTRACTOR Quality Assurance Arrangement
Field Inspection
Quality Audits
Handling of Non-Conformance
It is the intent that Bidders standard quality assurance system should be used
on the PROJECT, modified as may be necessary to meet COMPANY/PMCs
requirements.
BIDDER shall provide evidence of the nationally or internationally
recognized standards upon which its system is based and for how long the
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system has been in operation. Evidence of any external verification of the

system by independent parties/clients shall also be supplied.
viii)
3.2.2
Complete index (not copies) of Bidders specification, manuals,

procedures, computer programs, and similar items.
Attachment-B Project Execution Plan
3.2.2.1 General
This section describes the content and general format of the Bidders Project
Execution Plan. BIDDER shall include sufficient information to clearly describe its
plan with the understanding that this plan shall be expanded and supplemented if the
BIDDER is awarded this PROJECT.
3.2.2.2 Introduction
Defines purpose and Scope of the Plan and Project.
3.2.2.3 Project Organization
Organization chart showing the Bidders proposed project organization, both in its
home and branch engineering and procurement offices and at SITE, showing lines of
authority/responsibility and communication. Separate chart shall be provided for the
overall organization and for each engineering and procurement office and for field
construction including any office in India or at the WORK SITE. (If Applicable)
Define all major interfaces including those with Subcontractors and explain the
principles of interface management that will be applied. An interface is considered
major if a performance failure across the interface could have a serious disruptive
effect on PROJECT continuity, efficiency, or completion, or substantially increase
the risk of such disruption occurring.
Key project position shall be identified by title and brief job description.
Relationship and communications channels shall be defined, between Contractor,
Subcontractor (s), authorities etc.
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3.2.2.4 Key Project Personnel

The name and resume of the individuals that the BIDDER proposes for all key
position including the key positions defined by the BIDDER in Section 3.0 above.
Alternative candidates may be proposed for each position. Key positions include
those listed below. BIDDER shall add other key positions as appropriate.
Project Manager
Construction Manager
Project Engineering Manager
Project Quality Assurance Manager
Project Safety Manager
Project Engineers
Construction Superintendents
For each nomination, BIDDER shall provide a resume showing the candidates
position or grade within the company, ability with the English language (oral and
written), age, experience with Bidders company and the experience of relevance to
this PROJECT, and the date of availability for this work.
BIDDER shall also provide a tabulation and chart showing the anticipated length of
assignment of all key personnel both in the engineering office and the field and shall
confirm that such personnel are available to work on the basis, and that key staff will
not be removed without COMPANY/PMCs approval in accordance with the
CONTRACT.
Same information as outlined above shall be supplied for each Subcontractor.
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3.2.2.5 Man-hour Estimates

Bidders estimate of the total construction man-hours of management, staff and
labour and the number of personnel required for the PROJECT with breakdown of
estimated man-hours and personnel in each discipline shall be provided.
3.2.2.6 Execution Plan
A description of how BIDDER plans to execute the various functions, e.g.
engineering, construction, etc. the offices where the various portions of the WORK
will be executed and a detailed description of how all the WORK will be coordinated
and managed and how standardization between offices shall be achieved. The
description shall contain sufficient detail to provide a comprehensive understanding
of the proposed procedures and relationships between the various disciplines,
including the application of a suitable Quality Assurance system.
BIDDER should note that COMPANY/PMC will pay special attention to the logic of
any split of work and the adequacy of project coordination and control.
BIDDER shall also provide a description of how it proposes to ensure that the full
scope of WORK is properly coordinated, and that the interfaces are properly
controlled.
BIDDER shall also provide a description of the extent and manner in which
computer systems will be used for the PROJECT.
BIDDER shall provide a work breakdown structure tailored to this PROJECT,
identifying all elements of the WORK that logically defines and displays all the
WORK to be performed. This is required to demonstrate that BIDDER has a full
appreciation of the Scope of the WORK.
3.2.2.7 Subcontracting Plan
BIDDER shall outline a definitive program for subcontracting all key aspects of the
work that will not be carried out directly by BIDDER. It shall provide
COMPANY/PMC with a clear understanding of the Bidders intended
subcontracting strategy and subcontract management plan.
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BIDDER shall indicate whether any of the following tasks will be subcontracted, and
if yes, BIDDER shall provide the subcontractors/vendors name, address, contact
name and scope of services and equipment:
Safety
Quality Assurance / Quality Control
Offshore Installation and Construction
Onshore Pipeline Installation including drilling of micro tunneling involved
Others (BIDDER TO SPECIFY)
3.2.2.8 Engineering
A description of how the BIDDER proposes to engineer and design the WORK
including the following aspects:
a)
Review and verification of all PROJECT SPECIFICATIONS, drawings and

other information provided by COMPANY/PMC.
b)
The preparation of drawings for the Pile installation.
c)
The preparation of detailed step-by-step work procedures for the WORK.
d)
The preparations of the various submissions for COMPANY/PMC approval

required by the PROJECT SPECIFICATIONS.
e)
Copies of each standard form, schedule, chart, or list which BIDDER

proposes to use in the WORK, with a description of its function and its
relationship in the procedure.
f)
Details of any engineering or design, which BIDDER intends to let to

Subcontractors.
g)
Details of engineering or design to be performed.
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h)
Date: 18.12.2010
Arrangements for any mandatory checking/approval/certification

engineering or design work by certified engineers.
Rev 0
of
3.2.2.9 Construction
I) A description of how and step by step procedures of the BIDDER plans to install
the Piles including the following aspects:
a) Details of all items of construction spreads and equipment, onshore and
offshore, and including all subcontractors equipment. Major equipment
details such as piling and backfilling shall be provided to the level of detail
commensurate with the technical and performance requirements stated or
implied in the COMPANY/PMCs Project Specifications.
b) Detailed explanation of the system proposed to ensure that all construction
equipment are adequate for the purpose and have been duly tested and
certified as required before use on WORK SITE.
c) The preparation and distribution of documents and systems to control the
WORK SITE organization, i.e. an outline WORK SITE coordination
procedure.
d) Plans for construction staffing in terms of direct labour and Subcontracts.
e) A detailed subcontracting plan including the numbers and sizes of
subcontracts, the type of subcontracts and the basis for soliciting bids.
f) A list of potential subcontractors.
g) Bidders procedure for evaluating the capability of potential subcontractors.
h) Basic subcontracting documents for soliciting bids including forms of bids,
agreement, bonds, and guarantees including intended terms and conditions.
i) Details of the security system BIDDER proposes to organize for all security
matters both inside and outside the WORK SITE including selection of
competent and effective security officers and personnel.
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j) Planned working hours for all construction activities.

k) Details including layout drawings of all temporary facilities proposed.
l) Explanation of the system proposed for the electrical power required for all
site purposes. No electrical power will be available from COMPANYs
facilities.
m) Details on how BIDDER proposes to supply and store at WORK SITE utility
and potable water. No water will be available from COMPANYs facilities.
n) Details of how BIDDER proposes to manage and coordinate its
Subcontractors to ensure:
Safe Working
Quality Control
Planned progress Achievement
Total WORK Completion prior to handover to COMPANY.
o) Details of how BIDDER proposes to manage field engineering queries and

VENDOR equipment non-conformance.
p) Details of Bidder's proposals for the installation and maintenance of adequate
temporary toilet facilities.
q) Details of the procedure proposed for the control, handling and transportation
of all MATERIALS, SUPPLIES and SPARES.
r) Details of how BIDDER proposes to coordinate and interface with
HINDUSTAN
PETROLEUM
CORPORATION
LIMITED
and
Visakapatanam Port Authorities to ensure safe working and compliance to
both partys requirements.
s) Environmental protection and pollution control measures adopted during
construction.
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t) Emergency procedures.
3.2.2.10 Construction Support Facilities
BIDDER shall define all infrastructure and temporary construction facilities needed
to support the efficient completion of the PROJECT.
This section should address as applicable: construction camp, temporary buildings,
temporary utilities, communications, transportation, logistics, life support, roads,
dock, storage areas, etc.
3.2.2.11 Procurement Plans
BIDDER shall define how they intend to procure and supply the materials required
for permanent installation in the works.
3.2.2.12 Schedules and Milestone
Contains Bidders proposed project schedule, which is commensurate with the
project definition contained in the BID DOCUMENT. The project schedule must
demonstrate the Bidders understanding and interpretation of the requirements
contained in the PROJECT SPECIFICATION. Schedule shall be developed using
the work breakdown structure. Schedule should show key milestone dates and be
supported by Bidders preliminary assessment of technical and construction
manpower levels, peaks, and profiles.
Schedules shall be in network diagram form and sufficiently detailed to cover all
activities under this CONTRACT.
These schedules and the work breakdown structure shall become part of the
CONTRACT as Level I Schedules once accepted by COMPANY/PMC. These
Schedules shall reflect the commencement date occurring within the validity period
and show the logic and timing of execution of all WORK. The network schedule
form should also be summarized in bar chart form.
BIDDER shall propose milestone activities and dates covering all interfaces of the
WORK within the Bidders responsibility. These key milestone activities shall
cover the period of installation and construction and MECHANICAL
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COMPLETION. As far as possible, milestone shall be scheduled at regular

intervals. Each milestone must be a clearly identifiable event, which is capable of
physical verification (for example, issue of completed drawings or requisitions) etc.
BIDDER shall submit for COMPANY/PMCs information a set of Physical Progress
S-curves (separately for Engineering and Construction).
3.2.2.13 Monitoring and Control
Fully describes Bidders approach for schedule, cost, and quality control of the
PROJECT.
3.2.2.14 Requirements for Submission of Documents
The submission schedule, list and numbers of copies of documents and drawings to
be submitted to the Third Party Inspection and Certification Agency shall be in
accordance with the COMPANY appointed Third party Inspection and Certification
Agency.
The CONTRACTOR shall submit documents as per COMPANY/PMC requirements
for this CONTRACT to COMPANY/PMC as well.
3.2.2.15 Communications and Reporting
Covers the principles and procedures (and hardware) for project related
communications including reporting and document control.
3.2.2.16 Computer Systems
Covers the Bidders computer hardware and software that will be used on this
PROJECT. BIDDER shall provide a description of each system proposed and how
information will be transferred to the COMPANY/PMCs applications. BIDDER
shall maximize the use of electronic methods of handling data.
3.2.2.17 Appendix
Includes reference, checklists, etc. and any supplementary documents to be included
in the plan.
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3.2.3
Date: 18.12.2010
Rev 0
Attachment-C Technical Submission
3.2.3.1 Pile Installation

BIDDER shall provide the name of the proposed pile installation vessel(s) and a
current brochure for this vessel. BIDDER shall also provide plans of the
vessel(s)/barge(s) and include details and outline procedures of the following as a
minimum:
Barge/Vessel Principal Dimensions (including Minimum Operating Draft)
Mooring System
Vessel Operating Limits (Dynamic & Static)
Lifting/Handling System
Diving Support System
Positioning Systems, and Navigational Aids
Accommodation/Offices
Welding System (including repair welding)
Piling Facilities
Pile Installation Method
Backfilling
BIDDER shall describe the vessel(s) present and future planning utilisation for any
other project.
3.2.3.2 Back Filling
BIDDER shall identify the backfilling subcontractor (if any), along with the
following details:
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Number of Dredgers available
Estimated numbers of dredgers required
Dredger Type(s)
Mooring Systems
Operating Limitations
Support Vessels
Back Filling Operation
Rev 0
3.2.3.3 Span Correction

BIDDER shall provide the proposed subcontractors (if any) for SPAN Correction
along with the following data:
SPAN Correction Methods
SPAN Correction Outline Procedures
3.2.3.4 Material Handling and Transportation

Bidder shall identify the procedures for material handling and transportation and
provide the following data for offshore Scope of Work.
Material Handling and Transportation
3.2.3.5 Support Facilities

BIDDER shall describe proposed major components of the onshore and offshore
construction spreads as follows:
a) Anchor Handling
Proposed Subcontractor (if any)
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Proposed Number and Horsepower of Tugs

Minimum Operating Draft
b) Offshore Material transport and Installation Spread
Proposed Subcontractor (if any)
Proposed Size and number of Barges/Tugs
c) Diving Systems
Diving Subcontractor (if any).
Diving System Description
3.2.3.6 Surveys
BIDDER shall identify the proposed survey contractors, along with the following
data for offshore Scope of Work:
Pre-Installation Survey
Survey Activity during Installation
Post Installation Survey
3.2.3.7 As-Built and Mechanical Completion

BIDDER shall provide for Offshore Scope of Work:
Outlines of Plans and Procedures for As Built Drawings and Mechanical

Completion of the Work
3.2.3.8 Inspection and Testing Activities

BIDDER shall provide details of the inspection subcontractor (if any), along with the
following data for offshore Scope of Work:
Inspection Activity
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Testing
Equipment
Date: 18.12.2010
Rev 0
3.2.3.9 Certification
BIDDER shall provide details for certification activities required for the completion
of the WORK for offshore.
3.2.3.10 Permits
BIDDER shall provide details of the permits required for offshore activities:
Local Authority Permits
Offshore Construction permits
Marine Permits
Others
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3.3
Date: 18.12.2010
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PROCEDURE FOR BID SUBMISSION & AWARD
3.3.1 SUBMISSION OF BIDS

All bids shall be prepared by typing or printing with indelible black ink and shall be
submitted.
All Addendum(s) / Corrigendum(s) to Bidding Document issued by OWNER/PMC
subsequently, if any, must be signed and submitted along with the Bid. The Bid
submitted by the Bidder shall take into account all such Addendum(s) /
Corrigendum(s).
Bidder shall at the time of submission of un-priced Bid, include as part of their bid,
the original copy of the bidding document duly filled, signed and stamped on each
page in token of Bidders acceptance. However, Bidder is required to go through
these documents and give an undertaking that these documents have been fully read
and understood by the Bidder and their Bid has been prepared accordingly. Bidder
shall further undertake that in the event of their bid being considered for award of
work, the Bidder shall sign and stamp each page of these documents as part of the
contract. The undertaking shall be in the format enclosed as Annexure-2
Bids complete in all respects, shall be submitted in TWO parts (PART I & PART II)
in the following manner:
A)
PART I
The PART I termed as Un-priced Bid shall contain the following:
Bid documents duly signed and stamped on all pages.
Letter of submission of Tender
Format as per Cl 1 of GCC duly filled/signed by the Bidder.
Information about bidder
Previous experience of the bidder
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All techno commercial information excluding the price.
Technical requirements specified in clause 3.2
Addendum(s) /Corrigendum(s), Bid clarifications etc if any.
Rev 0
All documentary evidence in support of the bidder having satisfied the prequalification criteria mentioned in SECTION 2.
Power of attorney in the name of person who has signed the bidding
documents.
Partnership deed in case of Partnership Firm or Memorandum and articles of

Association in case of Limited company.
Details of proposed equipments, tools and tackles.
Deviations (if any) - Bidders are requested to submit their bid strictly based on
the terms, conditions and specifications contained in the Bid document.
However, in case of any unavoidable deviations the same has to be specified in
separate sheet as per format attached as Annexure 3. HPCL/INTEC reserves
the right to evaluate the offer containing deviations having financial
implications after adding cost of such deviations as determined by
HPCL/INTEC. OWNER/PMC also reserves the right either for acceptance or
rejection of deviations if any, stipulated by the Bidders.
Details of concurrent commitments of the bidder.
Proposed schedule for the work indicating important milestones.
Bid Fee in the form of Demand Draft.
Earnest Money Deposit (EMD)/BID FEE

Earnest Money Deposit (EMD) or Bid Fee as specified in NIT has to be
submitted by way of crossed Demand Draft (DD) drawn in favour of Hindustan
Petroleum Corporation Ltd payable at Mumbai or by way of Bank guarantee
(BG). The format for Bank Guarantee shall be as per HPCL Format. The
format has to be strictly adhered to. The Bank guarantee shall be executed on
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non-judicial Indian stamp paper of value Rs 100/-. Validity period of EMD

shall be 8 months from bid due date or extended bid due date.
EMD document shall be from any of the Nationalised / Scheduled Bank in
India.
Bid received without EMD is liable to be rejected at the sole discretion of
HPCL/INTEC.
Quality assurance programme (QAP) / Inspection Test Plan (ITP).

Latest Solvency certificate from a bank indicating amount to which the
bidder is solvent to prove the financial stability to carry out the work.
Acknowledgement as per Annexure 1
Integrity Pact (In section 11) filled up and signed attached
Checklist as per section 7
One copy of Schedule of Price as per SECTION 6, prepared for this contract
with price blanked out.
Note: Price data should not be given at any part of this un-priced bid. Un-priced bid
containing price data is liable for rejection at the sole discretion of
HPCL/INTEC.
All these documents are to be put in a sealed envelope and super scribed as
Installation of Piled Supports for Offshore Pipeline of Single Point Mooring System
of Hindustan Petroleum Corporation Ltd RFQ No: 21534102-501-ITB-021
(CONFIDENTIAL) due on 17.01.2011 Technical/Un-priced Bid PART-I.
BID DOCUMENT (ORIGINAL) PLUS THREE COPIES OF ALL
ATTACHMENTS SHALL BE SUBMITTED IN SEALED COVERS AS
MENTIONED ABOVE.
All pages of the bidding document shall be duly signed by an authorized
representative of the bidder and further the company seal shall also be affixed on all
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pages as token of acceptance failing which HPCL/INTEC has the right to reject the
offer.
B) PART -II
The PART-II termed as Priced Bid shall contain SCHEDULE of PRICES as per
Section 6. This should be put in a sealed envelope and super scribed as Installation
of Piled Supports for Offshore pipeline of Single Point Mooring System of
Hindustan Petroleum Corporation Ltd RFQ No: 21534102-501-ITB-021
(CONFIDENTIAL) Priced Bid- PART -II.
Priced bid shall contain two sets of the PRICE SCHEDULE marked ORIGINAL &
DUPLICATE, duly signed and stamped on all pages. This shall not stipulate any
conditions. Price bid containing any stipulations is liable to be rejected at the
sole discretion of HPCL/INTEC.
The two sealed envelopes (Envelope 1 containing PART-1 (UNPRICED BID) and
Envelope 2 containing PART-II (PRICED BID) should be submitted together in
another sealed envelope. The single envelope shall be pasted with CUT OUT SLIP
as per Annexure-4.
Note:
i)
Price bids containing overwriting / cuttings / erasures in the quoted price and
in case these are not attested by the signatory of the bid, such prices are liable
to be rejected at the sole discretion of OWNER/PMC, without giving any
further notice.
The bid shall be sent by courier to Mr. P. Wankhade, Senior Manager (Materials)
Central Engineering, Petroleum House, Hindustan Petroleum Corporation Limited, 17,
Jamshedji Tata Road, Mumbai- 400 020, India
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E)
Date: 18.12.2010
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The bid documents has to reach above mentioned HPCL office at Mumbai on or
before the due date and time specified in the Notice Inviting Tender. The time and
date hereafter referred to as the bid closing date/bid due date.
3.3.2 Signing Of Bid

a) The Bid must contain the name, designation, residence and place of business of
the person or persons submitting the Bid, and must be signed and sealed by the
Bidder with his usual signature. The names of all persons signing should also be
typed or printed below their signature.
b) Bid by a partnership firm must furnish full names of all partners and be signed in
the Partnership name, followed by signatures, and designations of authorised
partners or other authorised representatives. The Partnership Deed / Agreement
should also be furnished.
c) Bids by Corporation / Company must be signed in the legal name of the
Corporation / Company, by the President / Managing Director or by the
Secretary or other person or persons authorised to bid on behalf of such
Corporation / Company, with the seal of the Company / Corporation.
d) A bid by person, who affixes to his signature the word President, Managing
Director Secretary, Agent, or other designation without disclosing his
Principal, will be rejected at the discretion of OWNER/PMC.
e) Satisfactory evidence of authority of the person signing on behalf of the Bidder
shall be furnished with the Bid.
f) The Bidders name stated in the Bid shall be the EXACT LEGAL NAME OF
FIRM / COMPANY / CORPORATION, etc. as registered or incorporated.
3.3.3 Delayed / Late / Incomplete Bids
Delayed / Late bids received by the Owner/PMC after the deadline for submission of
bids prescribed in NIT (due to any reason whatsoever) are liable to be rejected at the
sole discretion of OWNER/PMC. Also incomplete bids may not be considered for
evaluation at the sole discretion of OWNER/PMC.
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3.3.4 Bid Currencies And Payment,

The prices shall be quoted in Indian Rupees only and all payments shall be made in
Indian Rupees only.
3.3.5 Bid Validity

4 (Four) months from bid due date / extended bid due date.
Bidders shall not be entitled during the said period to revoke or cancel the Bid or to
vary the same or any term thereof without the consent in writing of OWNER/PMC.
For varying any term in regard thereof, the Bidders Earnest Money Deposit / Bid
Bond may be forfeited, at the sole discretion of OWNER/PMC.
OWNER/PMC may require the bidder to extend the validity beyond the period
mentioned above. In such cases, any increase/decrease in price due to validity
extension will be considered for evaluation, provided such increase/ decrease is
submitted before the price bid opening.
3.3.6 Bid Opening
Only the Un-priced Part, i.e., Part I of the Bid shall be opened on the bid due date
in the presence of authorized attending representatives of Bidders as mentioned in
Notice Inviting Tender. The Bidders representatives who are present shall sign a
Bid Opening Statement evidencing their attendance.
Not more than two
representative of each Bidder shall be permitted to attend the Bid opening.
During opening of un-priced part (Part I), only the name of Agencies, who have
quoted and details of EMD furnished by them shall be read out and no other
information, whatsoever, shall be given.
The price bid ie Part II will be kept unopened until necessary technical and
commercial clarifications, by way of technical/commercial memorandum and/or
discussions are completed. Price part i.e. Part II, of only such bidders, who are pre-
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qualified and are technically and commercially acceptable, shall be opened at a later
date to be intimated by the Owner/PMC.
3.3.7 Deviation To Bid Requirement
Bidder must submit the offer in line with the bid stipulations without taking any
deviation. The Bidder is cautioned that any exceptions taken to the following Terms
and Conditions included in this Bid document may result in rejection of the Bidders
proposal.
i)
Time Schedule.
ii)
Schedule Of Prices.
iii)
Termination and Suspension clause.
iv)
Security Deposit.
v)
Defect Liability Period.
vi)
Scope of work / supply .
vii)
Arbitration
viii)
Mobilization advance in excess of 10%
Exceptions, clarifications, queries and deviations, to terms and conditions other than
those mentioned above, if unavoidable, bidders may stipulate the same as per format
given in Annexure-3. This shall form part of unpriced bid (Part-I).
Bidder shall note that clarifications / queries / deviations mentioned elsewhere
in the offer shall not be given any cognizance.
Bidder shall, however, note that OWNER/PMC reserves their right not to seek any
clarification on deviations sought by the bidder and to evaluate their offers on as
received basis.
3.3.8 Bid Evaluation Criteria
The bids received from the bidders shall be evaluated on the basis of the Bid
Evaluation Criteria (BEC) as mentioned hereunder. OWNER/PMC reserves the right
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to change any criteria of Bid evaluation at their discretion. However, any such
change will be intimated to all the bidders.
3.3.8.1 Bids without Earnest Money deposit (EMD) / Bid Bond will be considered as nonresponsive and such bids are liable for rejection at the sole discretion of
OWNER/INTEC.
In case the bidder, in their covering letter to the bid, stipulates that EMD has been
forwarded separately and in case the EMD is not received before the un-priced bid
opening, their offer will be rejected at the sole discretion of OWNER/PMC.
3.3.8.2 If any price is indicated in the Part 1 (Unpriced Bid) of the Bid, such tenders shall
be rejected straight away without further notice.
3.3.8.3 If a bidder fails to respond to clarifications/required information within the cut-off
period, their bid will be rejected or will be evaluated on the basis of available data, at
OWNER/PMCs sole discretion.
3.3.8.4 Determination of Responsiveness
(i)
For the purpose of this clause, a substantially responsive bid is one which
comprises all information / documents (i.e project management , planning
and scheduling, HO and field setup, procurement, inspection and expediting ,
coordination with Owner/PMC, QA/QC programme, consent letters of the
sub-contractor/ backup consultant / licensor etc) and which conforms to the
terms and conditions and specifications of the Bidding Document without
material deviation or reservation. A deviation or reservation is one which
affects in any substantial way the scope, quality or performance of the works
or which limits in any substantial way or is inconsistent with the Bidding
document, the owners right or contractors obligation, and which would
affect unfairly the competitive position of Bidders presenting substantially
responsive bids.
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(ii)
Date: 18.12.2010
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Only those bids, which are complete in all respects and are in accordance
with the terms and conditions and technical specifications of the Bidding
document, shall be considered for evaluation. Such bids shall be deemed to
be under consideration immediately after opening of Bids.
(iii)
Bidder will not be permitted to change the substance of the Bids after
opening of Bids.
(iv)
If a Bid is not substantially responsive to the requirements of the Bidding

documents, it may be rejected at the sole discretion of OWNER/PMC.
3.3.8.5 After opening of priced bids, all the prices will be checked for arithmetic errors, if
any. Item rates which have not been quoted for in the first instance, irrespective of
whether these are incidental to the categories of works for which rates have already
been quoted or belong to separate categories, will not be called for from the bidders.
The prices of such bidders will be evaluated based on loading by the highest quoted
item rate by any bidder for such item. Item for which rates are not quoted by the
bidders will be evaluated as deemed fit by OWNER/PMC. However, in case a bidder
has not quoted rates for any items, which amount to 10% of OWNER/PMCs
estimate or more, such bids shall be considered incomplete and shall be rejected.
3.3.8.6 The prices quoted by the bidders who have retained deviations to the terms and
conditions for which loading basis has been specified in the Bid documents or such
deviations which are otherwise considered acceptable and can be quantified, shall be
loaded accordingly. The prices quoted by all the tenderers shall be loaded for the
deviations to the terms and conditions and/or technical specifications as per the
loading factors given in Annexure 6.
If any loading factor other than those specified in the Annexure 6 are required, they
will be intimated to the bidder before opening of priced bids.
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3.3.8.7 Criteria for Loading & Evaluation

(i)
Base Price
The total price for the complete work as quoted in the Schedule of
Lumpsum Prices shall be taken as base price for evaluation.
(ii)
The Bids received and accepted will be evaluated by Owner/PMC to

ascertain the respective position of the best evaluated Bid in the interest of
Owner for the complete work covered in Bidding document.
3.3.8.8 FOREIGN EXCHANGE COMPONENT
For the purpose of evaluation of Bids, Foreign Exchange (TT selling rate) as
intimated by Scheduled Bank / published in Economic Times, on the day prior to
opening of Price Bid will be considered.
3.3.9 Conditions for Forfeiture of EMD / Bid Security

The following conditions would lead to the forfeiture of Bid Security:
a) If the bid is withdrawn during the validity period or any extension thereof.
b) If the bid is varied or modified in a manner not acceptable to the

COMPANY/PMC during the validity or agreed extension validity period duly
agreed by the bidder or after issue of FOA/LOA by COMPANY and prior to
signing of the Contract.
c) If the successful bidder is seeking modifications to the agreed terms and
conditions after issue of FOA/LOA.
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d) If the successful bidder fail to furnish performance guarantee within 2 weeks of

signing of the Contract.
e) Any effort by the bidder to influence the COMPANY/PMC on bid evaluation,
bid comparison or Contract award decision.
3.3.10 Modification and withdrawal of Bids
(i)
In case any clarifications are sought by the COMPANY/PMC after opening

of tenders, then the replies of the bidder should be restricted to the
clarification sought.
Any bidder who modifies their bid (including a
modification which has the effect of altering the value of their offer) after
opening of Techno-contractual bids without specific reference by the
COMPANY/PMC shall render the bid liable to be rejected without notice and
without further reference to the Bidder.
(ii)
No bid may be withdrawn in the interval between the deadline for the
submission of bids and the expiration of the period of the bid validity
specified by the bidder on the bid form.
Withdrawal or unsolicited
modification of a bid during this interval shall result in the bidders forfeiture
of its bid security.
3.3.11 Notification Of Award
Prior to the expiring of the period of Bid validity prescribed by the OWNER/PMC,
the OWNER will notify the successful Bidder by Fax of Acceptance (FOA) that their
Bid has been accepted. This notification of award shall contain the sum, which the
OWNER will pay to the successful bidder in consideration of the execution and
completion of the work as per Contract. OWNER will be the sole judge in the
matter of award of Contract and the decision of OWNER will be final and binding.
3.3.12 Signing of contract agreement
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Detailed letter of acceptance (LOA) along with all its enclosures shall be issued to
the successful bidder after issue of Fax of Acceptance by the OWNER. The
successful bidder shall sign Agreement with the OWNER within 10 days from the
date of issue of detailed letter of acceptance on a non-judicial stamp paper. The cost
of non-judicial stamp paper shall be borne by the BIDDER.
Upon execution of agreement by the successful Bidder, OWNER will return the
EMD of unsuccessful Bidders.
3.3.13 Security Deposit
The successful bidder is required to make security deposit to the OWNER as
specifed in clause 4 b) of HPCLs General Conditions of Contract.
3.3.14 Project Management Consultant (PMC)
M/s.INTEC Asia Pacific SDN BHD, Kuala Lumpur, Malaysia is the Project
Management Consultant (PMC) of the OWNER and will be performing various
actions in relation to the biding process and in the evaluation of the bids for and on
behalf of the OWNER.
******************
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SECTION - 4
SPECIAL CONDITIONS OF CONTRACT (SCC)
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INDEX
S. NO:
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
4.33
TABLE OF CONTENTS
GENERAL
INTERPRETATION
LAWS/ARBITRATION
NOTICES
LIABILITY OF GOVERNMENT OF INDIA
WORK SITE / SCOPE OF WORK
COMMENCEMENT/COMPLETION DATES
GENERAL OBLIGATIONS OF CONTRACTOR
PAYMENT
SECURITY DEPOSIT / PERFORMANCE GUARANTEE
DUTIES & TAXES
INTELLECTUAL PROPERTY
WORK EXECUTION
MISCELLANEOUS
SURVEYS
REVIEW OF CONTRACTORS DOCUMENTS
SUPPORT DIVING
WORKMEN
MATERIALS AND WORKMANSHIP
CERTIFICATE OF COMPLETION AND ACCEPTANCE
OF THE WORK
CONSTRUCTIONAL PLANT AND EQUIPMENT,
TEMPORARY WORKS AND MATERIALS
OFFSHORE POLLUTION RESPONSIBILITY
PROCEDURE FOR MEASUREMENT OF WORKS
COMPLETION CERTIFICATE
MARKING, PACKING, LOADING AND SECURING
SUPPLY OF CONSUMABLES
DIVERSION OF MARINE SPREAD
INFORMATION FOR DATA STORAGE
COMPLIANCE WITH LOCAL LAW & REGULATIONS
THIRD PARTY INSPECTION & CERTIFICATION
AGENCIES AND MARINE WARRANTY SURVEYOR
GUARANTEES, LIABILITIES AND LIQIDATED
DAMAGES
INSURANCE
FORCE MAJEURE
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4.1 GENERAL
Special Conditions of Contract shall be read in conjunction with the Schedule of
Prices, General Conditions of Contract, Project Specifications and Drawings, Scope
of Work and any other document forming part of this contract wherever the context
so requires.
Wherever it is stated anywhere in this bidding document that such and such supply is
to be effected or such and such work is to be carried out, it shall be understood that
the same shall be effected/carried out by the Contractor at their own cost, unless a
different intention is specifically and expressly stated herein or otherwise explicit
from the context.
The materials, design and workmanship shall satisfy the relevant Standards, the job
specifications contained in the BID documents and codes referred to. Where the job
specifications stipulate requirements in addition to specifications, these additional
requirements
shall
also
be
satisfied.
In
the
absence
of
any
Standard/Specifications/Codes of practice for detailed specifications covering any

part of the work covered in this bidding document, the instructions/directions of
PMC will be binding on the contractor. It is understood that bidder has considered
the relevant Standards, the job specifications and codes as applicable at the time of
submission of the bid. Modifications on them, if any, after bid submission will have
to be reviewed for implications.
In case of conflict between various sections of this bid document, the following shall
prevail in order of precedence.
i)
Fax of Acceptance (FOA)
ii)
Letter of Acceptance (LOA) / Purchase Order (PO) along with statement of

agreed variations and its enclosures.
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iii)
Schedule of lumpsum prices as part of LOA/ PO.
iv)
Special conditions of contract
v)
Scope of Work
vi)
Instruction to Bidders
vii)
General Conditions of Contract
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viii) Technical/Material Specifications

ix)
4.2
Drawings
Interpretation
4.2.1 Words imparting the singular meaning only also include the plural and vice versa
except where the context otherwise requires.
4.2.2 The headings and sub-titles in these conditions of contract are included solely for
convenience and shall not be deemed to be part thereof and shall not affect the
meaning or operation of the contract.
4.2.3 Reference to Section, Clause and Article and Provision shall have the same
meaning.
4.2.4 Governing Language
The governing language for the contract shall be English. All contract documents
and all correspondence and communication to be given and all other documentation
to be prepared and supplied under the contract shall be written in English and the
contract shall be construed and interpreted in accordance with English language.
4.2.5 Amendments to the Contract
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No Amendment or other variation of the contract shall be effective unless it is in

writing, is date, expressly refers to the contract and is signed by a duly authorized
representative of each party hereto.
4.2.6 Independent Contractor
The contractor shall act as an independent contractor performing the contract. The
contract does not create any agency, partnership, joint ventures or joint relationship
between the parties.
Subject to the compliance with the contract, the contractor shall be solely responsible
for the manner in which works are performed. All employees representative or subcontractors engaged by the contractor in performing the contract shall be under the
complete control of the contractor and shall not be deemed to be employees of the
COMPANY and nothing contained in the contract or in any sub-contract awarded by
the contractor shall be construed to create any contractual relationship between any
such employees or representative or sub-contractor and the COMPANY. Contractor
shall be responsible for the acts, defaults or negligence of the contractor, their
agencies, servant or workmen.
4.2.7
Severability
If any provision or the condition of the contract is prohibited or rendered invalid or
unenforceable then such prohibition or invalidity or unenforceability shall not affect
the other provisions or conditions of the contract.
4.2.8 Unit of Measurement

All the drawings and specifications prepared by the contractors shall be in Metric
System.
4.3
Laws/Arbitration
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4.3.1 Applicable Laws

All questions, disputes or differences arising under, out of or in connection with this
contract shall be settled in accordance with laws of India (both procedural and
substantive) from time to time in force and to the exclusive jurisdiction of the Courts
in India.
4.3.2 Arbitration
All arbitration proceedings shall be as per Cl. 14 of GCC.
4.4
Notices
Any notice to be given under the contract shall be given by sending the same by
personal delivery, post, telegram, telex or telefax to the address of the relevant party
set forth below:
To the COMPANY
The Senior Manager (Materials),
Hindustan Petroleum Corporation Limited
Mumbai
To the Contractor
(Name of successful bidder will be incorporated)
Any notice sent by telefax / telegraph/ telex shall be confirmed within 2 days after
dispatch of notice sent by post.
Any notice delivered personally or sent by telegraph, telex, telefax shall be deemed
to have been delivered on the date of its dispatch.
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Either party may, by notice to the other party in writing, change its postal, cable or
telex/telefax address for receipt of such notice.
In this connection, notices shall include any instructions, orders and certificates to
given under the contract.
4.5
Liability of Government of India

It is expressly understood and agreed by and between the contractor and COMPANY
that COMPANY is entering into this Agreement solely on its own behalf and not on
behalf of any other person or entity. In particular, it is expressly understood and
agreed that the Government of India is not a party to this Agreement and has no
liabilities, obligations or rights hereunder. It is expressly understood and agreed that
COMPANY is an independent legal entity with power and authority to enter into
contract solely in its own behalf under the applicable laws of India and general
principles of contract law.
The contractor expressly agrees, acknowledges and
understands that COMPANY is not an agent, representative or delegate of

Government of India. It is further understood and agreed that the Government of
India is not and shall not be liable for any note, omissions, commissions, breaches or
other wrongs arising out of the contract. Accordingly, contractor hereby expressly
waives, releases and foregoes any and all action or claims, including cross claims,
impleader claims counterclaims against the Government of India arising out of this
contract and covenants not to sue the Government of India as to any manner, claims,
cause of actions or things whatsoever arising of or under this agreement.
4.6
WORK SITE / SCOPE OF WORK
4.6.1 Scope of work

Scope of Work shall be as set out in Section 5 (scope of Work), Special Conditions
of Contract, Project Specifications and Drawings and other documents forming part
of the Bidding documents.
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4.6.2 Existing facilities

There are existing facilities near the vicinity of the Offshore site. Contractor to visit
the site and carry out their own study to reconfirm the same.
4.6.3 Work Site
The SITE of the Offshore work is situated in Bay of Bengal off the coast of
Visakhapatnam in the state of Andhra Pradesh in India. 48 pipeline route already
installed is shown in the attached drawing in BID documents.
4.7
COMMENCEMENT/COMPLETION DATES
4.7.1 Date of commencement

The effective date of this contract coming into force and the commencement of
works is the date on which the COMPANY issues the notification of award for the
works by Fax of Acceptance (FOA).
4.7.2 Access to installation site
4.7.2.1 The COMPANYs representative upon receipt of request from the contractor
intimating commencement of installation/construction work at offshore site shall
give to the contractor access to as much of the site as may be necessary to enable the
contractor to commence and proceed with the construction/installation of the works
in accordance with the programme of work in terms of clause 4.8.4. Any reasonable
proposal
of
the
contractor
for
access
to
site
to
proceed
with
the
construction/installation of work in accordance with the programme of work in terms

of clause 4.8.4 will be considered for approval and shall not be unreasonably
withheld by the COMPANY. Such requests must be made to the COMPANYs
representative in writing at least 7 days prior to start of the work.
4.7.2.2 If the COMPANY fails to give access to site in accordance with the terms of this
section, resulting in delay or expenses for the contractor, the contractor shall subject
to provision of clause 4.27 (Diversion of Marine spread) be entitled to appropriate
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extension of time for completion of the works and compensation for the spread
actually deployed at offshore site in accordance with applicable schedule of rates, or
if no such rates are available then at the rates as may be mutually agreed.
4.7.3 Start of fabrication/installation
Prior to taking to fabrication/installation of any major component of work, the
contractor shall submit to COMPANY/PMC their proposed construction sequence
and procedures and obtain COMPANY/PMCs approval in writing. If no response is
provided by the COMPANY/PMC to the contractor within 14 working days after
receipt by the COMPANY/PMC, then the proposed construction sequence and
procedure shall be deemed to be approved by the COMPANY/PMC.
4.7.4 Rate of progress
4.7.4.1 Contractor shall monitor progress of all the activities specified in the programme of
works pursuant to clause 4.8.4 and submit free of cost monthly progress report about
various aspects of the works to the COMPANY/PMC as per proforma to be agreed
upon during kick off meeting. The periodicity of such reports may be changed by the
COMPANY/PMC on mutual agreement between both parties
Extracts of the progress report to be termed as Executive Summary shall be
submitted in 6 copies along with 6 copies of monthly progress report.
All the materials, plant and labour to be provided by the contractor and the manner
and speed of execution and maintenance of the works are to be conducted in a
manner to the satisfaction of COMPANY/PMCs representative in accordance with
the contract. Should the rate of progress of the works or any part of them at any time
falls behind or is found to be too slow to ensure completion of the works by the
stipulated time or extended time for completion, the COMPANY/PMCs
representative shall so notify the contractor in writing. The contractor shall reply to
the written notice giving details of the measures they prescribe to compensate for the
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time lost. The contractor shall not be entitled to any additional payment for taking
such steps. If at any time it should appear to the COMPANY/PMCs representative
that the actual progress of works does not conform to the approved programme the
contractor shall produce at the request of the COMPANY/PMCs representative a
revised programme showing the modification to the approved programme necessary
to ensure completion of the works within the time for completion as defined in
clause 4.7.5 hereunder.
The submission to and approval by the COMPANY/PMCs representative of such
programme as the furnishing of such particulars shall not relieve the contractor of
any of their duties or responsibilities under the contract.
4.7.4.2 In case during execution of works the progress falls behind schedule, contractor shall
deploy extra manpower, constructional plant and equipment, resources to make up
the progress. Programme for deployment of extra manpower/constructional plant and
equipment resources will be submitted to the COMPANY/PMC for their review and
approval which approval shall not be unreasonably withheld. All time and cost
effect in this respect shall be borne by the contractor unless otherwise expressly
provided in the contract.
4.7.5 Date of completion / Period
The completion period for the works described in the contract will be 2 (Two)
months from date of issue of Fax of Acceptance (FOA) by OWNER and no work
shall exceed beyond February 2011.
4.8
General obligations of contractor
4.8.1 Knowledge of site conditions

4.8.1.1 The contractors undertaking of this contract to carry out the works shall be deemed
to be based on and made in the light of (a) all data of hydrological, sub-surface both
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Offshore and Onshore (data contained in the bidding documents), climatic and
physical conditions, and (b) all criteria of design contained in the bidding
documents.
4.8.1.2 Subject to clause 4.8.1.1 and 4.15, the contractor shall, nevertheless, be deemed to
have knowledge of the site and its surroundings and information available in
connection therewith and to have satisfied themselves the form and nature thereof
including, the sub-surface Offshore (data contained in the bidding documents), the
hydro-logical and climatic conditions, the quantities and nature of the work and
materials necessary for the completion of the works, the means of access, and in
general to have obtained himself all necessary information of all risks, contingencies
and circumstances affecting their obligations and responsibilities therewith under the
contract and their ability to perform it. However, if during pre-construction survey
contractor detects physical conditions and/or obstructions affecting the work, the
contractor shall take all measures to overcome above.
4.8.1.3 Contractor shall be deemed to have satisfied themselves as to the correctness and
sufficiency of the contract price for the works. The consideration provided in the
contract for the contractor undertaking the works shall cover all the contractors
obligations and all matters and things necessary for proper execution and
maintenance of the works in accordance with the contract and for complying with
any instructions which the COMPANY/PMC may issue in accordance with in
connection therewith and of any proper and reasonable measures which the
contractor takes in the absence of specific instructions from the COMPANY/PMC.
Contractor is advised that it is fully responsible for conducting any additional
WORK SITE and subsurface investigation both Offshore and Onshore that
Contractor deems necessary to perform the WORK.
Contractor shall be deemed to have inspected and examined the WORK SITE and to
have full and complete knowledge of the surface and subsurface conditions Offshore
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existing at the WORK SITE and its surroundings, and to have satisfied themselves
before submitting their PROPOSAL as to the nature of the ground and the subsoil,
and to have taken into account by information in connection therewith which may
have been provided by or on behalf of COMPANY. Contractor shall have satisfied
themselves as to the form and nature of the WORK SITE, the extent and nature of
the WORK and MATERIALS necessary, the means of communication with access
to the work site, the availability of port facilities and marine conditions at the ports,
details of the road and highway network, the accommodation they may require and
in general to have obtained all necessary information as to the risk, contingencies
and all other circumstances influencing or affecting their PROPOSAL. Failure to
visit the site or failure to study the Bidding Documents will in no way relieve the
successful bidder from furnishing any material or performing any work in
accordance with the Bidding Documents.
COMPANY/PMC shall not be liable for any claims from Contractor by reason of
any error, insufficiency or omission due to the information provided by the
COMPANY/PMC.
4.8.2 Weather Conditions
a)
The contractor shall bear all cost and delays due to adverse weather
conditions/weather down time experienced during Offshore works including load
out and tie down under the contract.
b)
The contractor shall subject to paragraph (d) below bear all the cost and delays
due to adverse weather conditions/weather down time experienced during the
transportation of works.
c)
The contractor shall bear all the costs and delays due to adverse weather
conditions/weather down time of the constructional plant and equipment/marine
spread, etc. experienced during the execution of the works at offshore site,
including any extended period except the cost and delays due to adverse weather
conditions/weather down time experienced during any extended period falling in
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monsoon season arising from reasons attributable to the COMPANY or its other
contracts.
d)
If the works entered into monsoon season then the COMPANY shall bear cost
and delays/slippage attributable to the COMPANY or its other contractors
(delay/slippages not attributable to the COMPANY or its other contractors
excluded) added to the schedule completion date reaches/enters monsoon season.
In such an event and provided that the COMPANY requires the contractor to
continue to work during monsoon seasons the COMPANY shall bear cost and
delays due to adverse weather conditions/weather down time experienced only
during the period which falls within the monsoon season required to execute the
works that are in delay and shall extend the completion schedule accordingly.
However, the COMPANY may request the contractor to demobilize during
monsoon season instead of requesting the contractor to continue the work during
monsoon season. The cost of such additional de-mobilization/re-mobilization
shall be borne by the COMPANY which shall be mutually agreed, if not
available in schedule of price. All costs and delays due to adverse weather
conditions/weather down time under situations other than those specified
hereinabove shall be to contractors account.
4.8.3 Contract Administration

4.8.3.1 The contractor is bound to carry out, complete and maintain the works only
according to the contract provisions & specifications.
4.8.3.2 In their execution of the works, the contractor shall comply with the project
instructions given from time to time by the COMPANY OR COMPANYs
representative comprising of PMC/Engineer-in-charge /3rd Party Inspection and
Certification Agency.
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4.8.3.3 The
contractor
shall
Date: 18.12.2010
accept
instructions
and
directions
only from
Rev 0
the
COMPANY/PMC/ Engineer-in-charge / 3rd Party Inspection and Certification

Agency.
4.8.3.4 The COMPANY/PMC/ Engineer-in-charge / 3rd Party Inspection and Certification
Agency may give the contractor directions and instructions about the execution of
the works and may take decisions and issue directions about the acceptability of
materials and quality of workmanship to be used in the works and the contractor
shall adhere to and comply with those directions, instructions and decisions of the
above mentioned COMPANYs representative in accordance with the contract.
Provided, however, such directions/instructions/decision of the COMPANYs
representative shall not absolve the contractor of their responsibility of execution of
the works in accordance with the contract.
4.8.3.5 If the contractor disputes any directions, instructions or decisions of the
COMPANYs representative that direction, instruction or decision shall (without
prejudice to the contractors duty to adhere to and comply with it in carrying out the
works) have only provisional effect with regard to the final rights and duties of the
parties and contractor shall continue to carry out the work, and shall have to
represent against such directions, instructions or decisions of the COMPANYs
representative to the Company with intimation to COMPANYs representative in
writing. Any delay in implementing the said direction, instruction or decision shall
be to contractors account. The COMPANY and the contractor shall meet as soon as
practicable to reach an amicable settlement prior to invoking the provisions of
settlement.
If the said direction, instruction or decision is found to be not in
accordance with the contract, the time and cost effect shall be for COMPANYs
account.
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4.8.4 Programme of work

The contractor shall submit to the COMPANY/PMC, as per clause 3.2.2.11
(Instruction to bidders) a detailed programme showing the sequence, procedure and
method in which they proposes to carry out the works as stipulated in the contract
and shall, whenever reasonably required by the COMPANYs representative or the
engineers representative furnish in writing the arrangements and methods proposed
to be made for carrying out the works.
The programme so submitted by the
contractor shall conform to the duties and period specified in the contract. The
COMPANY/PMC and the contactor shall discuss and agree upon the works
procedures to be followed for effective execution of the works. The constructional
plant and equipment and temporary works which the contractor intends to deploy
shall be clearly specified.
Approval by the COMPANYs representative of a
programme shall not relieve the contractor of any of his duties or responsibilities
under the contract.
4.8.5 Contractors Organization
4.8.5.1 The contractor shall supply to the COMPANY/PMC along with their BID, an
organization chart showing the proposed organization to be established by the
contractor for execution of the work including the identities and curriculam vitae of
the key personnel to be deployed.
The contractor shall promptly inform the
COMPANY/PMC in writing of any revision or alteration of such organization

charts.
The contractor shall provide necessary supervision during the execution of the works
and as long thereafter as the COMPANY/PMC may consider necessary for the
proper fulfillment of the contractors obligations under the contract. The contractor
or their competent and authorized representative(s) shall be constantly present at the
work site whole time for supervision. The contractor shall authorize the supervisor
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or their representative to receive directions and instructions from the COMPANYs

representative or the engineers representative.
The contractor shall
be responsible for
the deployment, transportation,
accommodation and catering of all labour local or expatriates required for the
execution of the works and for all costs/charges in connection thereof.
The contractor shall be responsible for obtaining all necessary permits or visas from
the concerned authorities for the entry of all labour and personnel to be deployed
into India.
The contractor shall at their own expense be responsible for the repatriation to the
country from which they were mobilized for all their and their sub-contractors
personnel deployed upon the works at site and shall be responsible for the suitable
maintenance of all such personnel from the cessation of their deployment on the
work to their departure from India.
4.8.5.2 The contractor shall provide and deploy on the site for carrying out the works only
those technicians/assistants who are skilled and experienced in their respective trades
and those foremen and leading respective trades and those foremen and leading
hands who are competent to give proper supervision to the work they are required to
supervise.
Further, only those skilled, semi-skilled and unskilled workmen who are necessary
for the proper and timely execution of the works shall be deployed at site.
4.8.5.3 The COMPANYs representative may at any time object to and require the
contractor to remove forthwith from the site a supervisor or any other authorized
representative or employee of the contractors sub-contractor(s) or any person(s)
deployed by contractor or their sub-contractor(s), if in the opinion of the
COMPANYs representative the person in question has mis-conducted himself or his
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deployment is otherwise considered undesirable by the COMPANYs representative,

the contractor shall forthwith remove and shall not again deploy the person in
question of the work site without the written consent of the COMPANYs
representative.
4.8.5.4 The COMPANYs representative may at any time request the contractor to remove
from the work site contractors supervisor or any other authorized representative
including any employee of the contractor or their sub-contractor(s) or any person(s)
deployed by contractor or their sub-contractor(s) for professional incompetence or
negligence or for being deployed for work for which he is not suited. The contractor
shall consider the COMPANYs representatives request and may accede to or disregard it. The COMPANYs representative, having made a request as aforesaid in
the case of any person, which the contractor has dis-regarded, may in the case of the
same person at any time but on a different occasion and for a different instance of
one of the reasons referred to above in this clause object to and require the contractor
to remove that person from deployment on the works which the contractor shall then
forthwith do and shall not again deploy any person so objected to on the works or on
the sort of work in question (as the case may be) without the written consent of the
COMPANYs representative.
4.8.5.5 The COMPANYs representative shall state to the contractor in writing his reasons
for any request or requirement pursuant to this clause.
4.8.5.6 The contractor shall promptly replace every person removed, pursuant to this
section, with a competent substitute.
4.8.6 Location/positioning of works
The contractor shall be responsible for the true and proper setting out of the works in
relation to points, levels of reference coordinates, orientation, alignment, marks and
water depths given in the bidding documents or given by the COMPANYs
representative in writing and for correctness of the positions, levels, depths,
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dimensions, orientation and alignment of all parts of the works, and for the provision
of all necessary instruments appliance and labour in connection therewith. If at any
time during the progress of the works, any error appears or arises in the position,
orientation, alignment, levels, depths or dimensions of any part of the works, the
contractor shall rectify the error at their own cost to the satisfaction of COMPANYs
representative/engineers representative. The checking of any setting out of any line,
level, depths, coordinate, orientation or alignment or position of a marker by the
COMPANYs representative or the Engineers representative shall not in any way
relieve the contractor of their responsibility for the correctness thereof. Contractor
shall carefully protect and preserve all bench marks, sight rails, pegs and other things
used in setting out the works. In case any data/instruction supplied by COMPANY
or its representative after pre-construction survey leads to changes/additions in scope
of work, the same shall be dealt with as per the provisions of clause 4.33.
4.8.7 Safety procedures and restrictions
4.8.7.1 The
contractor
shall
not
do
any
exploratory
excavations,
including
drilling/boreholes, without the previous written permission of the COMPANYs

representative.
4.8.7.2 Watching and lighting
The contractor shall in connection with the works provide and maintain at their own
cost all lights, guards, fencing, buoys, navigation lights, markers and watching when
and where necessary or required by the COMPANYs representative or the
engineers representative or by any duly constituted authority for the protection of
the works or for the safety and convenience of the public or others.
4.8.7.3 Health, Safety & Environment (HSE) compliance
a)
The contractor shall comply with the HSE requirements . The contractor shall also
be responsible to comply with code requirements of international maritime
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Organization (IMO), International Convention of Safety of Life at Sea (SOLAS),

Occupational Safety & Health Administration (OSHA), ISO-14000 series, American
Petroleum Institute (API) RP-14A, 14B, 14C, 14D, 14E, 14G, 14H, 14J and other
international practices. In case of conflict between the requirements of the various
specifications and/or the requirements specified in the bid document, the more
stringent requirement shall be followed.
b)
During installation, pre-commissioning, and commissioning activities, contractor

shall ensure compliance of various activities related to Safety, Health &
Environment as per applicable codes and submit the compliance report.
c)
Contractor shall conduct a safety studies methodology which shall be completed and
submitted to COMPANY/PMC within 30 days of contract award. Further, the
contractor shall implement the findings of the safety studies without impact on
schedule or contract price.
4.8.8 Time span for responsibility of works

From the time of commencement of the works to the issue of completion certificate
of the works pursuant to clause 4.20 contractor shall be fully responsible for the care
of works and of all temporary works. In case any damage or loss happens to the
works or to any owner issued free materials or to any part of them or to any
temporary works from any cause whatsoever other than those war risks including
damage caused by the contractor themselves during the execution of the contract, the
contractor shall repair and make good the same at their own cost. The completion
certificate will be issued by the COMPANY only if the works are in good order and
conditions and conform in every respect with the requirements of the contract and
the COMPANYs representatives instructions in accordance with the contract.
4.9
PAYMENT
4.9.1 Contract Price
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The COMPANY shall pay to the contractor in consideration of satisfactory

completion of all the works covered by the scope of work under the contract the
contract price as per the accepted Schedule of Price. The contract price is a firm
price and the contractor shall be bound to keep the same firm and without escalation
on any ground whatsoever until completion of entire works against this contract.
Unless otherwise specified in the contract, cost of execution of works and tests etc.
as specified in contract and all expenses, duties, taxes, fees, charges in relation to or
in connection therewith including insurance risk of weather, constructional plant and
equipment breakdown and site conditions etc. as per provisions of the contract, shall
be deemed to be included in the contract price. Payment shall be made in the
currency or currencies given in the schedule of prices for the work executed as per
the procedure set forth in clause 4.9.2. Adjustment to contract price, if any, shall be
made in accordance with provisions of contract.
4.9.2 Payment Procedure
4.9.2.1 Pending completion of the whole works, provisional progressive payments for the
part of the works executed by the contractor shall be made by COMPANY on the
basis of said work completed and certified by the COMPANYs representative as per
the Payment Terms at Annexure 5. In case Contractor wishes to avail Mobilization
Advance from OWNER against this work, the details of the same shall be as
mentioned in Annexure 5.
Certification of the work completed shall be made by the COMPANYs
representative within 15 days of receipt of Contractors application for certification
in case of Running Account Bill (R.A Bill) and 30 days in case of Final Bill. No
payments shall become due and payable to the contractor until contract is signed by
the two parties and contractor furnishes to the COMPANY Security deposit (as per
Clause 4.b) of GCC).
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Recoveries like Security Deposit, Mobilisation Advance with interest, Additional

Security deposit towards ESI / PF and Secured Advances etc on a pro-rata basis as
per the respective provision given in GCC shall be made from the above payment
and other items dues from the contractor.
4.9.2.2 The contractor shall submit its invoice(s) once in each month along with five
copies for the work completed and certified by COMPANYs representative as per
agreed payment terms, with all required supporting documents and details of the
said work to the COMPANYs representative for certification of the said invoice,
for approval of the amount payable and any payment thereafter. Contractor shall
submit separately in accordance with the clause 4.9.2.5 hereof a monthly invoice
for extra work approved by the COMPANY.
4.9.2.3 The COMPANY shall arrange payment of the invoice within 21 (Twenty one)
working days of receipt thereof by the COMPANY in case of R.A Bills and 90
days in case of Final Bill . In the event of the COMPANY objecting to any portion
of work covered by the said invoice, such objection shall be communicated to the
contractor within 10 (ten) working days from the date of receipt of invoice by the
COMPANY at its office. The contractor shall have the right to claim the payment
of such amounts objected by the COMPANY in subsequent invoice after removal
of cause of such objection.
4.9.2.4 The payment against clear (undisputed bills/invoices) submitted by the contractors
will be made by COMPANY within 21 (Twenty one) working days from the date
of submission of bill/invoices complete in all respects in case of R.A. Bills and 90
days in case of Final bill.
Payment for amount objected to by COMPANY as referred to in Clause 4.9.2.3
shall be made in accordance with provision under this clause when the objection
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due to which the amount withheld by the COMPANY has been removed/settled
and the contractor submits fresh invoice for the same.
4.9.2.5
Invoice for Extra work: No invoice for extra work/change order on account of
change order will be submitted by the contractor unless the said extra work/change
order has been authorized/approved by the COMPANY in writing in accordance
with Clause 4.33.1.
Payment against all these change orders/extra work shall be made within 90 days of
receipt of invoice by COMPANY after the mutually agreed settlement or the
completion of change order whichever is later.
After due vetting of the documents for change in duties/taxes under change in law by
COMPANY, invoice on account of change in duties/taxes under change in law shall
be submitted by the contractor along with the necessary supporting documents in a
single invoice after payment of all duties/taxes.
4.9.2.6 All the payments by the COMPANY shall be remitted by Telegraphic/Telex transfer
to the contractors bank account to be specified by the contractor in writing to the
COMPANY before submission of the first invoice. The payment shall be made in
currencies stated in the contract. The COMPANY shall be deemed to have arranged
payment to the contractor on the date of transmission of the cable instruction by the
COMPANYs bankers to the contractors bank in the country where the money is
required to be paid to the Contractor.
Bank charges of bank(s) in India shall be borne by COMPANY whereas bank
charges of bank(s) in contractors designated locations, if any, shall be borne by
contractor.
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The contractor have to bear fund transfer as well as bankers cheque charges. HPCL
will not take any responsibility for delay in transmission of funds by Telex /
Telegraphic due to whatsoever reasons.
4.9.1.7 In the event of COMPANY noticing at any time that any amount has been disbursed
wrongly to the contractor or any other amount is due from the contractor to the
COMPANY, the COMPANY may without prejudice to its rights recover such
amounts by other means after notifying the contractor or deduct such amount from
any payment failing due to the contractor. The details of such recovery, if any, will
be intimated to the contractor.
The contractor shall receive the payment of
undisputed amount under subsequent invoice for any amount that has been omitted
in previous invoice by mistake on the part of the COMPANY or the contractor.
4.9.1.8 The COMPANY shall not be responsible/ obligated for making any payments or any
other
related
obligations
under
this
contract
to
the
contractors
sub-
contractors/vendors. The contractor shall be fully liable and responsible for meeting
all such obligations and all payments to be made to its sub-contractors/vendors and
any other third party engaged by the contractor in any way connected with the
discharge of the contractors obligation under the contract and in any manner
whatsoever.
4.10 Security Deposit / Performance Guarantee
4.10.1 The contractor shall furnish to the COMPANY towards Security Deposit as specified
in Clause 4 b) of General Conditions of Contract for due performance of the
contract. The security deposit can be in the form of a irrevocable bank guarantee as
per prescribed HPCL format. This irrevocable bank guarantee shall be drawn in
favour of the COMPANY and shall be valid upto a period of Scheduled Completion
Date for the works of the contract and warranty period plus sixty (60) days. Bank
guarantee shall be from a scheduled / nationalized bank in India for Indian Bidders
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and for non-Indian bidders the bank guarantee shall be from Indian Branch of a
foreign bank or scheduled /nationalized bank in India.
4.10.2 In the event completion of works is delayed beyond the scheduled completion date
for any reasons whatsoever, the contractor shall get the validity of the guarantee
suitably extended so as to make it valid for 12 months plus 90 days from the actual
date of completion of works.
4.10.3 The COMPANY shall have the right under this guarantee to invoke the bankers
guarantee and claim the amount thereunder in the event of the contractor failing to
honour any of the commitments entered into under this contract. In case contractor
fails to furnish the requisite bank guarantee as stipulated above, then the COMPANY
shall have the option to terminate the contract and forfeit the bid security amount and
no compensation for the works performed shall be payable upon such termination.
Upon completion of works the above said guarantee shall be considered to constitute
the contractors guarantee / warranty for the work done by them or for the works
supplied and their performance as per the specifications and any other conditions
against this contract. The guarantee / warranty shall be in force for 12 months plus a
claim period of 3 months from the completion date as specified in clause 4.7.5
4.10.4 The bank guarantees shall be from a scheduled / nationalised bank in India for Indian
bidders. For non-Indian bidders the bank guarantees shall be from Indian branch of a
foreign bank or a scheduled /nationalised bank in India.
4.10.5 The contractor shall also arrange for the Performance guarantee to remain valid until
the expiration of the guarantee period for entire works.
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4.10.6 The COMPANY shall return the performance guarantee to the contractor upon the
expiration of the performance guarantee unless any extension is required in
accordance with the contract.
4.11 Duties & Taxes
It will be imperative for each bidder to fully inform themselves of all taxes, duties,
levies, royalties etc which may affect the execution of the contract as described in
the bidding documents. In their own interest, the bidders are particularly requested to
familiarise themselves with the rules and regulations regarding but not limited to
Income Tax / Withholding Tax, Insurance , Companies Act, Customs Duty,
Countervailing Duty (CVD), various Cesses, Service Tax, Works Contracts Tax,
Excise Duty, Local Taxes etc. It is the responsibility of the bidder that such factors
have been properly been investigated and considered while submitting the BID. No
claim whatsoever including those for financial adjustments to the contract awarded
under the bidding documents will be entertained by the COMPANY and neither any
change in time schedule of the contract nor any financial adjustments arising thereof
shall be permitted by the COMPANY on account of failure of the bidder to appraise
themselves of Indian & Local laws.
Contractors quoted price shall be inclusive of all taxes and duties, including Works
Contract Tax (WCT), Income Tax / Withholding Tax, Customs Duty / Excise Duty
ans all other charges, but excluding Service Tax, with respect to work rendered
hereunder whether or not in effect on the date of this CONTRACT but that are
imposed, directly or indirectly, prospectively or retrospectively by the Government
of India or any other Government.
Contractor before submission of First invoice for running payment shall register
themselves and the CONTRACTOR at their own cost with the Reserve Bank of
India, Income Tax, Sales Tax, Excise /Customs Departments and such other Central
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or State Governments and all statutory bodies as may be required under the rules and
regulations governing in India in connection with performance of the Work.
In case of applicability of concessional rates of duties and taxes on supply items
under this contract, HPCL will furnish necessary certification/forms to Contractor
after placement of order subject to the confirmation from HPCL to enable the
Contractor to avail concessional rates of duties & taxes.
4.11.1 Customs Duty

4.11.1 Customs duty for imported materials shall be paid and borne by the contractor. It
shall be the responsibility of the contractor to provide the requisite particulars and
documents to the customs and other Government authorities and get the materials
cleared and transported in time. Contractor shall be fully responsible for Port and
Customs clearance including stevedoring, handling, unloading, loading, storage,
inland transportation, if any of materials, equipments and plant to storage godown(s),
yard(s), site(s) etc. Contractor shall be fully responsible for any delays, penalties,
charges and losses, if any, in this regard.
Should the contractor fail to provide the required descriptive catalogue, literature,
drawings, box-wise packing list, invoices and any other relevant documents to the
Customs authority and should the Customs duty be assessed and levied incorrectly
due to such failure, the same shall be solely to the contractors account.
In case the contractor, through oversight, negligence or for any other reason
whatsoever, has raised the proforma invoice for the total CIF price of the imports
mentioned at Format A of Schedule of prices but some consignments are left out and
have to be imported assigning nil value in the relevant documents, the Customs duty
and penalties/charges, if any, levied by the concerned authorities shall be solely to
the contractors account.
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4.11.1.2
a)
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Customs duty applicable on constructional plant and equipment

Customs duty, if any, of constructional plant and equipment which are floating
craft/floating equipment (vessel, barges etc.) imported temporarily by the contractor
for execution of works, is to be included in lump sum price of schedule of prices and
shall be paid by the contractor directly to the custom authorities. Contractor shall
provide requisite particulars and documents to the customs and other government
authorities and get the clearance of constructional plant and equipment in time.
The contractor/subcontractor shall re-export such constructional plant and equipment
expeditiously after completion of works.
The timely completion of all import
formalities pertaining to clearance of customs, re-export formalities and other related

activities shall be complied with solely by the contractor at their own cost.
The contractors constructional plant & equipment, tools etc. may proceed directly to
offshore site without entering Indian Port subject to contractors taking necessary
approval/authorization of Govt. of India without any liability to the COMPANY. In
the event of change of legislation, relevant contract provisions shall be applicable.
b)
Customs duty leviable on constructional plant and equipments other than those
covered under clause (a), tools and tackles, consumables, components and spares
required for completion of works (which partly/wholly get consumed in process of
fabrication, installation, pre-commissioning and commissioning) and imported
temporarily by contractor to be re-exported wholly/partly after use, is to be included
in lump sum price of schedule of prices and shall be paid directly by the contractor
to the customs authorities. Timely completion of all import formalities pertaining to
clearance of customs, payment of customs duty, if any, actual re-export formalities
and other related activities shall be complied with solely by the contractor at their
own cost. The COMPANY shall in no way be responsible for any delays and losses
encountered by contractor in this regard. Save allowing the arrival of materials and
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equipment and goods, loaded on the marine spread/barges and constructional plant
and equipment at site without touching Indian Port in which case the customs
authority agrees to depute their officer(s) for examination of goods and
constructional plant and equipment at site as and when request is made the custom
clearance will have to be carried out by the contractor as per Indian Customs Law
irrespective of whether customs duty is applicable or not applicable. However, IGM
and bill of entry shall be filed with the custom authority by the contractor well in
advance.
4.11.1.3
Customs duty applicable on as-built documents

Customs duty on as-built documents/drawings and other project documentation
required to be submitted in accordance with the contract, if any, shall be fully
borne and paid by the contractor. The same shall be deemed to have been included
in their lumpsum price.
4.11.2 INCOME TAX AND WITHHOLDING TAX

4.11.2.1 Contractor quote shall be inclusive of all Income tax and Withholding tax levied
against their under Indian Income Tax Act 1961 or any amendment thereof and
any other rules of the Republic of India upto the date of submission of bid on
account of payments received by them from the COMPANY for work done under
the contract.
The contractor shall also be responsible for having their sub-
contractor(s) bear all such taxes as levied or imposed on the sub-contractor(s)

under their sub-contract(s) on account of payment received by the subcontractor(s) from the contractor for works done under the sub-contract(s) for
which COMPANY will in no case bear any responsibility.
It shall be the
responsibility of the contractor to submit to the concerned Indian authorities the

returns and all other connected documents required for this purpose.
The
contractor shall also provide the COMPANY such information as it may be

required in regard to the contractors details of payment made by the COMPANY
under the contract for proper assessment of taxes and duties. The contractor and
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their sub-contractor(s) or their personnel shall bear all taxes, if any, levied on the
contractors, sub-contractors and vendors personnel. The amount of tax withheld
by the COMPANY shall at all times be in accordance with India Tax Law and the
COMPANY shall furnish to the contractor a consolidated statement for the tax
deducted at source and paid to the Tax authorities.
Should the contractor fail to submit returns/pay taxes in time as stipulated
under the Indian Income Tax Act or other rules of Republic of India and
consequently any interest or penalty is imposed by the Indian Income Tax
authority, the said interest/penalty shall be paid by the contractor only.
The COMPANY shall, if so required by applicable laws in force, at the time of
payment, deduct income tax payable by the contractor at the rates in force from the
amount due to the contractor and pay to the concerned tax authority directly.
The contractor shall agree that they and their sub-contractor(s) shall pay Indian
Income Tax as may be imposed/levied on them by the Indian Income Tax authorities
for the payments received by them for the works under the contract.
The contractor, their sub-contractor(s), vendor(s) and the personnel deployed by
them shall comply with the Indian Income Tax Act in force from time to time.
The contractor shall indemnify COMPANY against any and all liabilities or claims
arising out of this contract for such taxes including interest and penalty which any
such tax authority may assess or levy against the COMPANY/contractor.
4.11.3 SERVICE TAX
Bidders quoted Lumpsum price shall be exclusive of Service Tax the rate of which
will be at prevalent rate. However any increase in service tax if any after CDD, the
deferential tax amount for such increase wiil be on contractors account.
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4.11.4 WORKS CONTRACT TAX (WCT)

This job will be considered as an indivisible works contract and as such WCT will be
applicable. Bidders quoted amount shall be inclusive of WCT.
4.12
4.12.1
INTELLECTUAL PROPERTY
Secrecy
Neither the COMPANY nor the contractor nor their personnel, agents nor any subcontractor shall divulge to any one (other than persons designated by the party
disclosing the information) any information designated in writing as confidential
and obtained from the disclosing party during the course of the execution of works
so long as and to the extent that the information has not become part of the public
domain. This obligation does not apply to information furnished or made known
to the recipient of the information without restriction as to its use by third parties
or the recipient of the information without restriction as to its use by third parties
or which was in recipients possession at the time of disclosure by the disclosing
party. Upon completion of the works or in the event of termination pursuant to the
provisions of the contract, contractor shall immediately return to the COMPANY
all drawings, plans, specifications and other documents supplied to the contractor
by or on behalf of the COMPANY or prepared by the contractor solely for the
purpose of the performance of the works, including all copies made thereof by the
contractor.
4.12.2 Records of contract documents

4.12.2.1 The contractor shall at all times make and keep sufficient copies of the drawings,
specifications and contract documents for them to fulfill their duties under the
contract.
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4.12.2.2 The contractor shall keep on each site at least three copies of each and every
drawing, specification and contract document in excess of their own requirement
and those copies shall be available at all times for use by the COMPANYs
representative and the Engineer/Engineers representative and by any other person
authorized by the COMPANYs representative, who shall be provided an
adequately sized site office or offices, for the safe-keeping and use of such
documents, by the contractor throughout the duration of the contract. Where one
or more of contractors yards/offices/offshore spreads are deployed in the works,
all requirements of the contract and contractors obligation under the contract shall
apply equally at each yard/office/offshore spread so deployed.
4.13
WORK EXECUTION
4.13.1 Representation
4.13.1.1 General
There may be more than one COMPANYs representative, Engineer, Engineers
representative at the same time. The COMPANY shall appoint and notify the
contractor in writing of the name(s) of the COMPANYs representative.
The
COMPANY from time to time may appoint some other person(s) as COMPANYs
representative in place of the person(s) previously appointed.
4.13.1.2 COMPANYs Representative
The duties of the COMPANYs representative are to act on behalf of the
COMPANY for overall coordination and Project Management at site.
The
COMPANYs representative shall have the authority and powers to the extent so
authorized and notified by the COMPANY to the contractor in writing from time to
time. The COMPANYs representative shall liaise with the contractor and monitor
the progress for the timely completion of the works.
He will communicate
COMPANYs approval to the contractor, issue drawings, specifications etc. and

similar documents pertaining to the works.
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He shall also monitor that the works are carried out in accordance with the
specifications, drawings and other terms and conditions of the contract as inspected
by Engineer/Engineers representative. The COMPANYs representative shall have
the right to inspect any part of the works at all reasonable time and order necessary
tests to be carried out under supervision of Engineer/Engineers representative and
reject such works which are not in accordance with the contract.
He has the right to scrutinize the contractors records for the work being done In
general, he shall have the authority to oversee the execution of the works by the
contractor and to monitor compliance by the contractor of provisions of the
contractor.
Approval by the COMPANYs representative of any or all documents shall in no
way relieve the contractor of the responsibilities of execution of the work in
accordance with the terms and conditions of the contract.
All notices, instructions, orders, certificates, approval and all other communications
shall be given by the COMPANYs representative, save as otherwise provided in the
contract. The COMPANYs representative shall carry out such duties in issuing
decisions, certificates and orders as specified in the contract.
All notices,
information and other communications to be given by the contractor to the

COMPANY under this contract shall be given to the COMPANYs representative
except as otherwise provided.
COMPANY may appoint its representative at major work centers, fabrication yard(s)
and offshore site etc. or advise contractor to submit documents/drawings etc.
requiring
COMPANYs
perusal/approval
at
the
base
office
at
Mumbai/Visakhapatnam or PMCs office at Kuala Lumpur in Malaysia. Should

COMPANY/PMC feel the requirement of discussion between its Engineers for any
clarification etc., contractor shall arrange the same at its Mumbai/Visakhapatnam
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office or PMCs office at Kuala Lumpur in Malaysia. Cost of such arrangements

shall be included in the lump sum prices.
4.13.1.3 Engineer/Engineers Representative
The duties of the Engineer/Engineers representative are to inspect, supervise and
monitor the works and to test and examine any materials to be used or workmanship
employed in connection with the works. He shall have no authority to relieve the
contractor of any of his duties, obligations under the contract, except as expressly
provided in this clause or elsewhere in the contract. He shall not also have any
authority to order any work involving delay or any extra payment by the
COMPANY or to make any alteration of or in the works.
The COMPANYs representative may from time to time in writing delegate to any
or all of the Engineer/Engineers representative any or all of the powers and
authority vested in the COMPANYs representative and shall notify the contractor in
writing of all said delegations of his powers and authorities.
Any instruction or approval given by an Engineer/Engineers representative to the
contractor within the terms of any delegation so notified (but not otherwise) shall
bind the contractor and the COMPANY as though it had been given by the
COMPANYs representative subject to the following provision:
Failure of any Engineer/Engineers representative to disapprove any work or
materials shall not prejudice the power of the COMPANYs representative thereafter
to reject that work or materials and to order, subject to clause 4.19, pulling down,
removal or breaking up of them subsequently to ensure that whether or not such
works or materials are in accordance with the requirement of the contract.
4.13.1.4 Contractors Representative
The contractors representative shall have all the power requisite for the performance
of works.
The contractors representative shall liaise with the COMPANYs
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representative / Engineer/Engineers representative for the proper coordination and

timely completion of the works and on any other matters pertaining to the works.
Such contractors representative shall be available to the COMPANYs
representative in the vicinity of each site during the execution of works.
4.13.2 Assignment/sub-contracting and procurement
4.13.2.1 Assignment
The contractor shall not, except with the explicit prior approval in writing of the
COMPANY, transfer, sub-contract or assign their obligations or any benefit or
interests in the contract or any part thereof in any manner whatsoever. Any such
assignment shall not absolve the contractor from their obligations and
responsibilities under this contract.
4.13.2.2 Conditions of sub-contracting
The following conditions shall apply as regards sub-contracting of any portion of
the
work
pertaining
to
design,
engineering,
procurement,
fabrication,
transportation, installation and testing of works entrusted to the contractor.

i) The contractor may sub-contract any portion of work entrusted to them, except for
activities specified in clause 2.2 d) of Instruction to Bidders, only with prior written
consent of the COMPANY/PMC which shall not be unreasonably withheld. The
extent to which the contractor may sub-contract part of the works shall be as stated
in their bid document and as accepted/approved by the COMPANY/PMC which
acceptance/approval shall not be unreasonably withheld.
All sub-contracting
arrangements shall be finalized and sub-contractors to be deployed shall be firmed

up by the contractor within one month from the date of placement of notification of
award by the COMPANY. A signed copy of the detailed agreement with prices
blanked out or some similar document (indicating the scope of work of subcontractor) entered into between contractor and sub-contractor(s) to perform the
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work sub-contracted, shall be submitted to the COMPANY/PMC within one month

from the date of signing of the contract between COMPANY and contractor.
ii) Any change in the sub-contractor(s) after the arrangement is firmed up as mentioned
in 4.13.2.2 (i) above, will be made by contractor only with the prior written approval
of the COMPANY/PMC which approval shall not be unreasonably withheld and
only from amongst those sub-contractor(s) as proposed by the contractor in their bid
document and as are found technically acceptable.
COMPANY/PMCs decision shall be notified to the contractor within 14 (fourteen)
working days of receipt of request for such change along with all necessary
documents in support of the requested change provided, however, that request for
change is received at least 1 (one) month prior to the schedule start of the relevant
activity.
iii) Sub-contracting as mentioned herein shall not relieve the contractor of their
obligations and responsibilities under this contract.
iv) Provided however that the sub-contractors listed in contractors bid document, unless
rejected by COMPANY/PMC before fourteen days prior to the date of submission of
price bids or revised/adjusted price bid, if any, shall for all purposes of the contract
be deemed approved by COMPANY/PMC, contractor shall then be free to subcontract with any of the already approved sub-contractors subject to para (ii).
4.13.2.3 Conditions for procurement/selection of Makes and Vendors
i)
In case of materials and other allied requirements to be procured for the works
covered under the contract, the contractor shall subject to the limitation with regard
to selection of vendor(s), make(s) of equipment/material as contained in
4.13.2.3(ii), procure the required equipment/material from amongst the make(s)
and vendor(s) of the respective plant/equipment/material which have been found to
be acceptable and approved by the COMPANY/PMC. The contractor shall not
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procure equipment/material of make(s) and from vendor(s) other than those agreed
and approved by the COMPANY/PMC. COMPANY/PMCs approval/comments
for list of proposed vendors for critical equipment(s) will be given within 14
working days after submission of such list by contractor.
ii)
For all equipments/materials, for purpose of selection of the make(s) and

vendor(s), the contractor shall submit during detailed engineering the intended
make(s) and vendor(s) and furnish to the COMPANY/PMC their past experience
and performance track record for the purpose of proving to the satisfaction of the
COMPANY/PMC that they have met the specification/requirements similar to or
stringent than those given in the contract specifications. Acceptance of vendors or
comments shall be issued by COMPANY/PMC within 14 working days of receipt
by COMPANY/PMC of the documentation from the selected vendor.
The
COMPANY/PMC shall have right to hold detailed technical discussion with the
vendor(s) and visit vendors premises. The COMPANY/PMC shall examine the
details submitted by the contractor and ascertain the suitability of the proposed
make(s) and/or vendor(s) capabilities to execute the work. The COMPANY/PMC
shall have authority to disapprove or reject the proposed make(s) and/or vendor(s)
which do not meet the requirement of the contract.
The decision of the
COMPANY/PMC in this regard shall be final and binding on the contractor. The
purchase order will be issued by the contractor only after written approval of the
COMPANY/PMC from amongst make(s) and vendor(s) which have been
approved by the COMPANY/PMC which approval shall not be unreasonably
withheld.
iii)
Procurement
of
equipments/materials
from
vendor(s)
as
approved
by
COMPANY/PMC from the suggested vendor list shall not relieve the contractor of
their obligations and responsibilities under this contract.
4.13.2.4
Approval
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4.13.2.4.1 The approval for finalizing sub-contracting arrangement and procurement of

equipments/materials shall be given by the COMPANY/PMC only if the
contractor ensures the following:
i)
The proposed sub-contractor(s) possess (es) adequate experience and capabilities

to execute the work and the Marine Spread and other facilities proposed to be
deployed are adequate and are of equivalent or of higher capability than those
proposed in the contractors bid document and are acceptable to the
COMPANY/PMC.
ii)
The make(s) and type(s) of the equipments/materials being offered by the

vendor(s) are equivalent or superior to those specified in the contract and the
vendor(s) possess(es) the requisite experience and capabilities to executed the
order and their product has a proven track record of meeting the
requirements/specifications similar to or stringent than those given in the contract
specifications.
iii)
The contract price as contained in the contract shall remain firm and unchanged
except as otherwise provided in the contract. Cost benefits however accruing to
the contractor shall be passed on to the COMPANY.
4.13.2.4.2 The contractor shall not be entitled for any time and cost compensation on
account of observance of requirements given in sub-clause 4.13.2.1 through
4.13.2.4.1 above.
4.14
4.14.1
Miscellaneous
The COMPANYs representative on behalf of the COMPANY shall have full
power and authority to supply to the contractor or to instruct the contractor to
prepare further specifications, drawings or job instruction necessary for the proper
and adequate execution of the works in accordance with the contract price. The
contractor shall carry out these instructions and be bound by them.
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4.14.2 Unless otherwise specified, the contractor shall pay all tonnage and other royalties,
rent and other payments or compensation, if any, for getting stone, sand, gravel, clay
or other materials required for the works or temporary works.
4.14.3 All operation necessary for the execution of the works and for the construction of
any temporary works shall, so far as compliance with the requirements of the
contract permits, be carried out so as not to interfere unnecessarily or improperly
with public convenience or the access to use and occupation of navigable and other
water, waterways, channels, roads, harbors or harbor area, fisheries, natural harbors
and anchorage and other places of shelter by sea or lands, public or private roads and
footpaths or properties, whether in the possession of the COMPANY or of any other
person and the contractor shall indemnify the COMPANY against all claims,
demands, proceedings, damages costs, charges and expensive whatever arising in
relation to any said matters in so far as the contractor is responsible therefore.
4.14.4 The Contractor shall use every reasonable means to prevent any of the highway,
waterways or bridges, locks, docks, sea walls, harbor works or navigation marks,
communicating with or on the routes to the site from being damaged or obstructed
by any traffic of the contractor or any of its sub-contractors. The contractor shall
select routes, choose and use vehicles and vessels and restrict and distribute loads
and cargo such that any extra ordinary traffic and material from and to the site will
be limited as much as is reasonably possible and so that no unnecessary damage or
injury may be occasioned to highways and the other facilities and areas aforesaid.
4.14.5 The contractor shall in accordance with the requirements of the COMPANYs
representative, afford all reasonable opportunities and access to the works/site to the
COMPANY or to any other contractors employed by the COMPANY and their
workmen and to the workmen of the COMPANY and of any other duly constituted
authorities who may be employed in the execution on or near the site of any work
not included in the contract or of any contract which the COMPANY may enter into
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in connection with or ancillary to the works for carrying out their work. When
instructed by the COMPANY or its representative, the contractor shall also liaise and
coordinate with COMPANYs other contractors for proper execution of the works.
Subject to clause 4.27 of the contract, in complying with the requirements of this
section at written instruction of COMPANY/COMPANYs representative should
contractor be delayed in the construction schedule, or should contractor incur
additional costs, COMPANY will compensate the contractor only for the standby
charges of the spread so affected (as certified by the COMPANYs representative) at
the rate as set out in the contract and contractor will receive an appropriate extension
of time if it affects critical path of the construction schedule and provided the
contractor had notified immediately to the COMPANY about occurrence of such
hindrance to their works provided further and to the extent the delay or any part of it
is attributable to the COMPANY, its agents and other contractors or any other duly
constituted authorities who may be employed in the execution on or near the site of
any work not included in the contract or of any contract which the COMPANY may
enter into in connection with or ancillary to the works.
Should any aforesaid
compensation become payable, such cost shall be backed up by detailed

documentation, to the satisfaction of COMPANY.
4.14.6 Unless otherwise specified, the contractor shall at their own expense supply and
provide all the constructional plant and equipment, temporary works, materials, both
for temporary and for permanent works, labour (including the supervision of it)
transport to and from the site and in and about the works, and other things of every
kind required for design and engineering, procurement, fabrication, construction,
load-out, tie-down, transportation, installation and making good of the works,
including during the period of guarantee for works required to be performed by
contractor at their own cost in accordance with the provisions of the contract.
4.14.7 Deployment of Additional Spread
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If the marine spreads proposed by the contractor under this contract are found to be
inadequate to complete the works covered under this contract, then the contractor
shall deploy additional spreads as required to complete the works under this contract
within the contract price and without any time effect to the COMPANY.
4.14.8 Contractor shall keep informed the COMPANY/PMC, of delays or likely delays for
entry into/exit from ports, of supply boats and/or cargo ships carrying on board
materials/equipments for the work. Any delay to work pursuant to delays in entry
into/exit from ports as aforesaid shall be to contractors account. The COMPANY
will also not accept any liability on account of aforesaid delays and the cost incurred
by the contractor, if any, in this regard shall be to contractors account. All the
vessels / barges etc are subject to security check by COMPANY / Visakapatanam
Port / Customs / Navy/Coast Guard etc. It shall be contractors responsibility to
provide to and fro transport between docks/jetties and anchorage area for the
purpose, without extra cost to COMPANY.
4.14.9 On the completion of the works, the contractor shall clear away and remove from
site all temporary works, construction plant and equipment, surplus materials, which
they had provided, including any wreckage, debris and rubbish of every kind caused
by contractor or their sub-contractor and leave the whole of the site and works clean
and in a workman like and safe condition. If the contractor fails to remove all such
materials, debris and rubbish, the COMPANY shall have the right to get them
removed and any cost incurred by the COMPANY in doing so shall be recovered
from the contractor.
4.14.10
The contractor shall not dump any material in the sea especially in the vicinity of
the facilities which are being installed under the contract.
4.14.11
It shall be the responsibility of the contractor to fully comply with the following
security provisions:
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Entry/access to any Indian offshore facility is governed by rules & regulations

formulated from time to time by the Government of India / Visakhapatnam Port
authorities and/or its concerned departments/agencies, which are binding on the
COMPANY and its contractors etc. All such rules and obligations (including
amendments if any) are to be complied without any time and cost impact to the
COMPANY. The present requirements in this regard are as follows:
For all the personnel (Indian/Foreigners) and vessel (Indian registered as well as
Foreign registered) of contractor and/or their sub-contractors, the procedure for
security clearance as listed below will have to be strictly followed/complied with
before entering the work site. Any subsequent changes/modifications as may be
issued from time to time in this regard shall also have to be duly complied without
any time and cost impact to the COMPANY.
Visakhapatnam Port authorities /COMPANY personnel has the right to deny
permission to any person/vessel to go to the site in case either the required
procedures are not complied with or any person/vessel comes without stipulated
advance notice, and in that case the COMPANY will not be liable for any cost and
time impact.
Passes for all the personnel are to be obtained well in advance from the
Visakhapatnam Port authorities after providing the prescribed declaration forms
along with 2 stamp size photographs in respect of each person.
a) Indian
Nationals
(excluding
vessel
crew):
Before
mobilizing/deputing
contractors persons (Indian nationals) at site and/or its sub-contractor/vendor

representative etc. contractor will submit minimum 2 weeks in advance a
complete list of the persons along with necessary police verification to enable
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Port authorities to issue necessary passes without which no person of

contractor/sub-contractor or vendor is allowed to proceed to site.
b) For Foreign nationals : At least 4 weeks in advance the contractor will submit in
the prescribed form for obtaining necessary clearance from Ministry of Home
Affairs (MOHA) etc. a list of all foreign nationals required to be mobilized to
site. Following information shall be provided:
1) Full Name
2) Passport No. date and place of issue
3) Nationality
4) Date of Birth
5) Present Address
6) Permanent Address
7) Validity of the passport
8) Details of the visa
9) Date visited India last
10) Purpose
11) Duration of the last visit
12) Occupation
(Any additional information requested shall also be provided without any time /
cost implication to OWNER).
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Contractor is to ensure that only such expatriates who are having valid passports and
valid business visas are deployed for work under the contract. Expatriates having
tourists visas are not permitted to work.
Contractors personnel (crew/workers) proceeding to offshore should not be in
possession of any personal camera/photography materials, arms/ammunition, liquor,
prohibited drugs etc.
All passes issued for the construction activities should be surrendered after
construction activities are over in a particular working season.
Contractor is to ensure that all the personnel engaged by them abide by the Security
& Discipline rules prescribed from time to time by OWNER and Visakapatanam
Port authorities.
Contractor and their sub-contractor(s)/agents are to comply with any directive as
may be prescribed/given by the COMPANY/ Port authorities/Navy/Coast Guard etc
from time to time in respect of Security matters.
ii) For all vessels (Indian/Foreign flag) before they are allowed to enter site, minimum 4
months in advance the contractor must submit the details of the vessels along with
the crew list (Indian/Foreign) and necessary valid certificates to COMPANY for
obtaining Ministry of Defence (MOD) clearance, etc.
Upon receipt of MOD
clearance, the vessels shall be inspected by Indian Navy or any other authorized
agency (as authorized from time to time to inspect the vessel) before they can be
allowed to proceed to site. The location of inspection and other procedures can be
discussed with COMPANY before inspection.
Contractor is advised to give preference to Indian flag vessels for undertaking
various operations off the Indian cost. The Foreign vessels may be employed only
when suitable Indian vessels are not available.
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Liquor/arms and ammunition on board any vessel/barge is strictly prohibited at

offshore.
Before any vessels leave site, COMPANYs representative will have to be informed
and the security procedure will have to be repeated once the vessel visits any area
other than the identified site(s).
On daily basis, movement of the vessel shall be reported to the relevant authorities
and COMPANYs representative etc.
iii) Naval Security Clearance : Physical inspection of the barges/vessels by Indian
Naval authorities for naval clearance Eastern Naval Command, Visakapatanam shall
be carried out at offshore site for those barges/vessels which are going directly to
offshore site.
However, the contractor shall provide information of the
barges/vessels (such as number of sailings) going directly to the offshore site at least
four (4) weeks prior to the start of the construction season.
Procedure for Naval Security Clearance of vessels/barges proposed to be deployed at
offshore
1) Any vessel/barge, before being deployed at offshore, shall be offered by the
contractor for clearance by the Indian Navy and foreign flag vessel shall have
clearance from Ministry of Surface Transport (MOST).
2) The contractor shall apply to the concerned personnel
of HPCL for Naval
Security Clearance giving details such as technical specifications of the vessel

along with various documents/certificates of the vessel, vessel photographs and
its crew list. The documents shall also include a certificate of General Trading
Licence issued by DG Shipping.
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3) The concerned personnel of HPCL will send all the details giving reference of
the contract to the office of the Chief of Security section giving the tentative
date/dates of arrival of the vessel/barge concerned.
4) The COMPANY will forward all the relevant vessel documents received from
the contractor with a recommendatory letter to Ministry of Petroleum & Natural
Gas (MOPNG) for onward endorsement to MOD for clearance of the
vessel/spread. However, the responsibility of obtaining MOD clearance will be
that of the contractor.
5) The COMPANY will also submit one additional copy of all the relevant
documents to Naval Headquarters at the following mailing address
The Chief of Naval Staff
(For Director of Intelligence)
Naval Headquarters
C/o Defence HQ Post Office
New Delhi 110 011
6) The contractor shall inform the Naval authorities of the arrival date of the
spread/vessel at least a week in advance of its actual arrival. The Contractor will
then arrange for fixing up the date and place for clearance of such vessel and
transportation of the inspection team and any other naval requirement at the time
of clearance. The inspection would be carried out at a point outside the field at
any of the locations as per the convenience of all the parties involved. All
laisoning work shall be carried out by Contractor.
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7) After inspection, Naval Security Clearance number will be given on the spot,
which should be retained by the vessel/barge concerned throughout its stay at
offshore.
Subsequently, clearance certificate will be issued by the Naval
authorities, which will be sent to the concerned personnel of HPCL.

8) Any vessel leaving the Indian waters would lose its Naval Clearance and would
be re-inspected for fresh clearance on its re-arrival.
9) Clearance for expatriates should be applied at least three (3) weeks in advance as
set out in the procedure for clearance of foreign as mentioned above.
iv)
The schedule(s) prescribed in the foregoing paras for advance submission of

details regarding vessel/personnel clearance is/are indicative only as the clearances
are to be accorded by the concerned departments of the Government of India.
Hence, COMPANY will not be liable for any time & cost impact due to any delays
on this account or due to change of procedures etc. in this regard.
4.15
Surveys
4.15.1 i)
Pre-construction / pre-installation survey
The contractor shall, at their own cost, independently carry out preconstruction/pre-installation survey of the sites with their survey equipment before
start of offshore pile construction/installation. It shall be the sole responsibility of
the contractor to suitably mark all the pile locations, submarine pipeline route etc.
to enable them to proceed with the work. The contractor will use side scan sonar
and sub-bottom profiler or any other equipment approved by the COMPANYs
representative to locate and mark the same before dropping anchors etc. and will
also constantly check and monitor the position of such anchors due to possible drift
or anchor dragging. The contractor shall be fully responsible for any damage
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caused by the contractor or their sub-contractors to the existing facilities in

accordance with the provisions of the contract.
iii)
All time and cost affect due to obstructions and physical conditions including
debris, if any, making impossible or adversely affecting performance of the works,
which were not reported during or immediately after the pre-construction survey
and are encountered and reported during installation shall be to the contractors
account.
The contractor shall report presence of any debris at the site(s) during preconstruction survey.
Notwithstanding anything contained in the foregoing
paragraph, the COMPANY shall not be liable for any time and cost effect in respect
of debris found during installation, unless the contractor proves with evidence to the
satisfaction of the COMPANY/PMC that such debris occurred for reasons not
attributable to the contractor and their sub-contractor(s) and that the same was not
existing upto the time pre-construction survey was carried out and the same is found
to be there at the time of installation.
The contractor shall show video cassettes to establish the presence and quantity of
debris noticed during pre-construction survey and installation, duly witnessed by the
COMPANYs representative.
However, if the debris or unwarranted material is proved by the contractor to be
attributable to the COMPANY or its other contractors, the COMPANY shall
compensate removal of these in accordance with the contract.
4.15.3 Post-Installation Survey
The contractor shall carry out as installed, surveys for the installation. If any
debris or unwanted material which was not found and reported by contractor to the
COMPANY/PMC during pre-construction survey is observed during post
installation survey, the same shall be removed by the contractor without any time
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and cost effect to the COMPANY. However, if debris or unwanted material is

proved by the contractor to be attributable to COMPANY, the COMPANY shall
compensate the contractor for removal of those in accordance with the contract.
4.16 Review of CONTRACTORS documents
The COMPANY will post COMPANYs representative(s) at each work site. The
contractor shall arrange to send the design documents/drawings of contractor to the
COMPANYs designated office at Mumbai/Visakapatanam and PMC office at Kuala
Lumpur, Malaysia for their review. The documents drawings shall be reviewed by
the COMPANY/PMC. The cost incurred in dispatching the documents by fast
courier
service
to
and
fro
between
contractors
design
center(s)
and
COMPANY/PMCs office(s) shall be borne by the contractor and the time taken in
transit shall also be to contractors account.
4.17
Support Diving
The contractor shall at their own cost provide all equipment facilities and personnel
needed to perform diving operation required for performance of the works or for the
inspection of the works carried out. All diving and other special diving equipment
shall be provided by the contractor at their own cost to take care of any sub-sea work
during execution of works including provisions of facilities for Video Monitoring
and Underwater Ultrasonic testing of welds if required to carry out scope of work
covered under the contract.
Contractor shall mobilize an ROV, if specified
elsewhere or diver held Video Equipment and show the necessary video tape to
COMPANYs representative when required by him to satisfy about underwater
works carried out by contractor.
4.18
Workmen
4.18.1 Facilities for Workmen
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4.18.1.1 The contractor shall make their own arrangements for the engagement of all
workmen, local or otherwise, and for their transport, housing, feeding and
payment.
4.18.1.2 The contractor shall provide at site adequate supply of drinking water and other
water for use by their personnel at site. Contractor to note that water supply &
power supply for any purpose will NOT be provided by OWNER.
4.18.1.3 In any illness of an epidemic nature breaks out, the contractor shall comply with
and carry out whatever regulations, orders and requirements are imposed by the
Government or the local medical or sanitary authorities for the purpose of
promptly dealing with and overcoming it.
4.18.1.4 The contactor shall at all times take all reasonable precautions to prevent any
unlawful riotous or disorderly conduct by or amongst the persons deployed for the
works at site and for the preservation of peace and the protection of persons and
property in the neighbourhood of the work.
4.18.1.5 The contractor shall ensure that the provisions of this clause 4.18 are complied
with by their sub-contractors also.
4.19
Materials and Workmanship
4.19.1 General
All materials and workmanship shall be as specified in the contract and in
accordance with the requirements of the contract.
In the event of any revision(s) in the Codes and Standards which become effective
after the date two weeks prior to the date of submission of price bids, the cost effect
will be borne by the COMPANY subject to such change(s) being effected with prior
approval of the COMPANY.
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All materials and workmanship shall be subjected from time to time to tests,
inspections which the COMPANYs representative may direct as per the contract
either at the place/agency of manufacture or fabrication or at the site or at such other
place(s) or agency(ies) as may be required for erection of the works as per contract
without any time and cost effect to COMPANY.
The contractor shall provide assistance, instruments machines, labour and materials
which are normally required for examining, measuring and testing any work and the
quality, weight or quantity of any material used and shall supply samples of
materials before incorporation in the works for testing, as may be selected and
required
by
the
COMPANYs/Engineers
representative.
The
COMPANYs/Engineers representative or duly authorized inspector shall be

entitled to attend the said tests and/or inspection. COMPANY shall bear all costs
and expenses incurred in connection with traveling and boarding & lodging expenses
except as otherwise provided in the contract. In case the tests/inspections are not
performed during the period or at the time mutually agreed for reasons other than
those directly attributable to COMPANY/its agents/its other contractors then
COMPANYs representative shall have the right to get the tests, inspections attended
or performed through an independent agency (ies) or any other authorized
Inspector(s) and all costs incurred by the COMPANYs representative in doing so
shall be recovered from the contractor. Before any material is incorporated used in
the works, contractor must obtain necessary approval from the COMPANYs
representative.
If the COMPANYs Inspector fails to attend the test and or
inspection at the time mutually agreed or if it is agreed between the parties that the
COMPANYs inspector shall not do so, then the contractor may proceed with the
test and/or inspection in the absence of the COMPANYs inspector and provide the
COMPANY with a certified report of the results thereof.
Tests of materials, equipment, systems and workmanship shall include but are not
limited to the tests referred to in and required by the contract specifications.
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The testing of all welders/other workman as required by the contract specifications

shall be to the sole account of the contractor, including but not limited to the time
spent by workmen engaged upon such tests or re-tests and the provisions of all
materials, equipment and supervision required for the performance of such tests or
re-tests to the satisfaction of the COMPANYs representative in accordance with the
contract. The contractor agrees that neither the execution of a test and/or inspection
of Materials or any part of the works nor attendance by the COMPANYs
representative/authorized inspector nor the issue of any test certificate pursuant to
Cl. 4.19.6 hereof shall absolve the contractor from their responsibility of execution
of the works in accordance with the contract.
4.19.2 Samples
All samples shall be supplied by the contractor at no extra cost to COMPANY if
their supply is provided for by the contract specifications.
4.19.3 Cost of Tests
The cost of conducting any and all tests provided for in the contract specifications
and to meet the requirements of contract shall be borne by the contractor.
4.19.3.1 The contractor will establish and maintain continuous radiography service facilities
and personnel skilled in their use for the testing and inspection of welds or base
metal in contractors and sub-contractors work sites and also ultrasonic, magnetic
particle and dye penetrant tests/inspection services, as and when required by the
COMPANYs representative in accordance with the contract.
4.19.3.2 The contractor will also make available, as and when required by the
COMPANYs representative the necessary special equipment and skilled
personnel for the operation of radiography. Service facilities for the testing and
inspection of the works as stated in the contract specifications whether for
hydraulic, electrical or other inspection or testing without limitation.
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4.19.3.3 The costs of all radiography, ultrasonic, magnetic particle or other inspection of
weld or base metal, as provided for in sub-clause 4.19.3.1 and the costs of all other
testing and inspection as provided for in the sub-clause 4.19.3.2 upto the limits
prescribed in the contract specifications shall be to contractors account.
4.19.3.4 Unless otherwise specified cost of all works/tests etc. as specified in contract are
deemed to be included in the lump sum price of the contract.
4.19.4 Additional Tests
If any additional test is ordered by the COMPANYs representative which either:
a) is not provided for in contract specifications
b) though provided for in the contract specifications, is ordered by the
COMPANYs representative to be carried out by an independent person/agency
at any place/agency other than the site or at the place/agency of manufacture or
fabrication of the materials; the cost and time effect of the test shall be borne by
the contractor if the test shows that workmanship or materials are not in
accordance with the provisions of the contract.
If the tests show that
workmanship or material are in accordance with the requirement of the contract

then all reasonable cost related to tests shall be borne by the COMPANY and
appropriate time extension will be granted to the contractor in the event that
project critical path is affected. Should project critical path not be affected only
cost impact will apply.
4.19.5 Access for Inspection/Tests
The COMPANYs representative/Engineer or any person authorized by him shall at
all times have access to the works and to the site and to all workshops and places or
where the works are being executed or machinery are being obtained for the works
to inspect the progress and the manner of manufacture or construction.
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Whenever the contractor is ready to carry out any such test or inspection, the
contractor shall give reasonable advance notice of such test and or inspection and of
the place and time thereof. The contractor shall obtain from any relevant third party
or manufacturer necessary permission or consent to enable the COMPANYs
representative/authorized inspector to attend the test and/or inspection.
The
contractor shall provide every facility for and necessary assistance in obtaining the
right of access including (without limitation thereto) the provision of local transport
to and from the site for the COMPANYs personnel including COMPANYs
representative and Engineer/Engineers representative. All accesses to works in at
site provided by the contractor shall in all respects be protected and safe.
The contractor shall provide the COMPANYs representative with a certified report
of the results of any such test and/or inspection.
4.19.6 Opportunity for Inspection of Works
4.19.6.1 Any part of the works shall not be covered up or put out of view without the
approval of the COMPANYs representative or the Engineer/Engineers
representative and the contractor shall give reasonable notice and provide full
opportunity to the COMPANYs representative or the Engineer/Engineers
representative to examine and measure any work by providing the facilities for
examinations and measurement including the equipment required for them which
is about to be covered up or put out of view or installed below the surface of the
sea and to examine any part of the work before other part of the work is placed.
The contractor shall give reasonable notice to the COMPANYs representative or
Engineer/Engineers representative whenever any work is ready or about to be
ready for examination and the COMPANYs representative or Engineer/Engineers
representative shall without unreasonable delay, unless he considers it unnecessary
and advises the contractor accordingly, examine/measure/inspect the works.
Contractor
shall
mobilize
vendor
representative
commissioning/commissioning as per contract requirements.
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4.19.6.2 The contractor shall uncover any part of the works or make openings in or through
it as the COMPANYs representative from time to time directs and shall reinstate
and make good such part or parts to the satisfaction of the COMPANYs
representative in accordance with contract.
4.19.6.3 If any part uncovered or opened pursuant to Clause 4.19.6.2 has been covered up
or put out of view after compliance with the requirements of Clause 4.19.6.1 an
after inspection is found to be executed in accordance with the contract the
expenses for uncovering making openings in or through, reinstating and making
the same good shall be borne by the COMPANY and appropriate time extension
shall be granted to the contractor in the event that project critical path is affected.
Should project critical path not be affected only cost impact will apply. But in any
other case all the expenses shall be borne by the contractor and time affect, if any,
shall be to contractors account.
4.19.7 Removal/replacement of improper work and materials
4.19.7.1 During the progress of the works the COMPANYs representative shall have the
power to order:
i) the removal from site of any materials which are not in accordance with the contract
and which are supplied by the contractor. The material shall be removed by the
contractor at their own expense.
ii) the substitution of proper and suitable materials according to contract specifications.
iii) the removal and rectifications of any work (notwithstanding any previous test thereof
or interim payment therefore) which in respect of material or workmanship is not in
accordance with contract.
Such orders shall be issued by the COMPANYs representative in writing.
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4.19.7.2 In case of default on the part of the contractor in carrying out an order pursuant to
clause 4.19.7.1 the COMPANY shall be entitled to deploy other person/agency to
carry out such works and all expenses directly related thereto shall be recoverable
from the contractor by the COMPANY. COMPANY will notify the contractor of
the amount, with details, so incurred by it. If the contractor fails to pay the amount
to the COMPANY within 30 days from the receipt of the invoice with the required
back-up documents the amount may be deducted by the COMPANY from any
money which is due or which may become due to the contractor.
4.19.7.3 In the event contractor proposes substitution of any materials/equipment, it shall be
the contractors responsibility to prove to the COMPANYs representative that the
materials/equipment offered by them are equivalent or better in specifications than
those specified in the contract.
Cost savings, if any, arising out of any substitution of materials/equipment shall be
passed on to the COMPANY. Cost increase if any due to substitution shall be
borne by the contractor. No extension of time on this account shall be granted to
the contractor.
The contractor shall obtain prior written approval from the
COMPANYs representative for resorting to substitutions of materials/equipment

etc.
It will be contractors responsibility to submit all relevant documents
including vendor quotation/invoice to establish reasonability of cost savings with

details proposed to be passed on to the COMPANY.
4.20
Certificate of Completion and Acceptance of the Work

Completion Certificate and Acceptance of the works shall be issued by the
COMPANY subject to the provisions of following clause 4.20.1 through 4.20.4.
4.20.1 When the whole of the works have been completed in accordance with the contract
and have satisfactorily passed tests prescribed in the contract, the contractor shall
notify the COMPANY/PMC in writing enclosing all the required documents and
reports for review and acceptance by the COMPANYs representative.
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contractor will also notify the COMPANYs representative in writing within 7 days
in advance regarding the likely completion date of the works.
As the work progresses, the contractor shall continue to provide the required details
and data for review by the COMPANYs representative to assist in the expeditious
inspection of the works when completed. The COMPANYs representative will
review promptly and revert within 14 days after receipt of such notice. If the works
are found to be complete in all respect and carried out in accordance with the
contract then the COMPANY shall issue a completion certificate as provided for in
clause 4.20.2. If some defects and/or deficiencies are noticed in the works, the same
shall be notified to the contractors in writing within 14 days after receipt of
contractors notice. Such defects and/or deficiencies attributable to the contractors
work and workmanship shall be rectified promptly by the contractor at their own
expenses for which no extension will be granted. The contractor shall thereafter
repeat the procedure for giving notice as stated above.
4.20.2 If the COMPANY/PMC is satisfied that the entire works have been completed as
specified in the contract and have successfully passed all tests provided in the
contract then the COMPANY will issue a Completion Certificate.
4.20.3 The contractor shall not use or occupy any part of the works unless its use or
occupation has been agreed to by the COMPANY/PMC in writing.
4.20.4 COMPANYs acceptance of the works shall not operate as a waiver of the
COMPANYs rights under guarantees in the contract herein contained as to any
defects and deficiencies under clause 4.31.1.
4.21
Constructional Plant and Equipment, Temporary Works and Materials
4.21.1 Constructional Plant and Equipment brought to site

All Constructional Plant and Equipment, temporary works and materials provided by
the contractor shall, when brought on the site, be deemed to be exclusively intended
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for the construction and completion of the works and the contractor shall not remove
them or any part of them (save for the purpose of moving them form one part of the
site to another) without the written consent of the COMPANYs representative,
which will not be unreasonably withheld or delayed, subject, however, to the
provisions contained in the contract. Unless otherwise specified in the contract,
upon completion of the work the contractor shall remove from the site all
constructional plant and equipment brought by the contractor on to the site and any
surplus materials.
4.21.2 Constructional Plant and Equipment Breakdown

a) It is expressly understood that breakdowns of contractors constructional plant and
equipment on land or at offshore location during the execution of works shall not be
regarded as physical conditions which could not have reasonably been foreseen by
contractor and as such, the costs of such breakdowns and any resultant delays and
costs thereof will be to contractors account, unless such breakdown are caused by
an event of force majeure. In this case, the provision stated on clause 4.32.5.2 shall
be applied.
b) The contractor shall ensure that the constructional plant and equipment brought by
them to the site are in good working condition. The COMPANY/PMC would need a
certificate from the contractor that this constructional plant and equipment before
mobilization at site are adequate and in good working order to carry out the works.
The COMPANY/PMC reserves the right to inspect such constructional plant an
equipment upon its mobilization to the site and the contractor shall intimate to
COMPANY/PMC well in advance of mobilization of such constructional plant and
equipment to site to enable COMPANY/PMC to arrange inspection. However, such
an inspection by COMPANY/PMC will not relieve the contractor of their
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responsibilities about the adequacy and fitness of constructional plant and

equipment.
c) The contractor shall schedule repair and maintenance of their constructional plant
and equipment in such a way that constructional plant and equipment breakdown
will not delay completion of works beyond the scheduled completion date. If the
contractors constructional plant and equipment experience breakdown of such
frequency and type that delay in completion of the works beyond the scheduled
complete date is probable, the contractor shall take immediate action, and replace
such constructional plant and equipment and/or mobilize suitable additional
constructional plant and equipment in a timely manner at no additional cost to
COMPANY so as to prevent delay in completion beyond the scheduled completion
date.
d) If due to the occurrence of breakdown to contractors constructional plant and
equipment, the execution of the works is suspended or adversely affected and
contractor has not taken an appropriate action to remedy the condition to the
satisfaction of the COMPANY/PMC, the COMPANY/PMC shall enforce provisions
of clause 4.31.3.2.
e) If during the course of execution of works, it is considered by COMPANYs
representative that the constructional plant and equipment/marine spread etc. are
found not adequate/sufficient, contractor at their own cost shall mobilize additional
constructional plant and equipment/marine spread etc. to complete the works in time.
f) The contractor will not demobilize any equipment, marine spread etc. deployed for
the works without prior written approval of the COMPANY/PMC which approval
shall not be unreasonably withheld.
4.21.3 Customs/Excise Clearance Assistance
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4.21.3.1 The contractor shall acquaint themselves with all the formalities and procedures of
Indian Governmental Agencies such as Customs, Excise, licensing authorities etc.
It shall be sole responsibility of the contractor to get the materials, equipment,
constructional plant and equipment and other things required of the works cleared
from all Governmental Agencies including but not limited to, Customs/Excise and
pay all duties/taxes/charges/fees/expenses including fines/penalties imposed, if
any, except where otherwise expressly provided in the contract to be paid by the
COMPANY. The contractor shall be responsible for import of said constructional
plant and equipment, material, equipment or other things etc. Customs clearance
will have to be obtained by the contractor as per Customs law irrespective of
whether Customs Duty is applicable or not applicable. As regards examination of
goods at site the same shall be carried out by Customs Officer on receipt of
information. However, IGM and bill of entry shall be filed by the contractor with
the Customs Authority well in advance of arrival of heavy equipment mentioned
above at offshore site. The contractor shall also be responsible for re-export of
said constructional plant and equipment and any unused materials within 15 days
after completion of the works. The contractor shall obtain any and all necessary
Governmental Clearance required for such import/re-export.
4.21.3.2 The contractor shall schedule all activities in advance, taking into account any
possible delays in complying with the aforesaid requirements. No extension of
time shall be granted to the contractor on this account.
4.21.3.3 The contractor shall defend and indemnify the COMPANY against all claims,
charges and expenses whatsoever which arises on account of not obtaining
requisite import/re-export permit clearance and/or on account of not re-exporting
their belongings including but not limited to constructional plant and equipment,
unused materials, consumables, components etc. expeditiously after completion of
works, in accordance with the contract.
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4.21.3.4 In the event of any part of the works being damaged/ lost subsequent to payment of
Customs Duty due to reasons not attributable to the COMPANY, it shall be the
contractors responsibility to make good the same through fresh import and to pay
and bear the Customs Duty applicable.
4.21.4
The operation of clause 4.21.3 shall not be deemed to imply any approval by the
COMPANYs representative of the material of equipment of other matters referred
to therein nor shall it prevent the rejection of any materials or equipment at any
time by the COMPANYs representative.
4.21.5 Liability for contractors Constructional Plant and Equipment

The COMPANY shall not at any time be liable for the loss of or injury to any of the
constructional plant and equipment, temporary works or materials, except as
otherwise expressly provided for in the contract.
4.22
Offshore Pollution Responsibility

In the performance of any and all services and the works hereunder by the contractor
or their sub-contractors, the contractor shall accept full responsibility for compliance
with all applicable laws and Governmental orders, rules and regulations as amended
from time to time relating to pollution and any extra cost resulting there from will be
allocated between the parties in accordance. Contractor and their sub-contractor(s)
shall also comply with any additional provisions as may be notified to the contractor
by the COMPANY/PMC.
Without in any way limiting the generally of the
preceding sentences, it is specifically agreed that the contractor shall comply with
the following:
i) Solid waste, such as tins, bottles or any form of trash must be transported to shore in
appropriate containers.
ii) Solid combustible waste may be burned and the ashes may be disposed of into the
sea.
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iii) Edible garbage which may be consumed by aquatic life without harm may be
disposed of into the sea.
iv) All waste oil and greases shall be placed in containers and taken ashore for disposal.
The contractor shall either curb all areas subject to contamination and connect these
to a collecting tank or sump or provide drip pans under any equipment or area where
pollutants might logically originate and connect these pans to a sump.
v) Care will be taken to secure all deck cargo in such a manner as to ensure that the
cargo, its covers (plastic or tarpaulins) or its fastenings will not be lost into the sea.
The Contractor shall inform themselves and their supervisors of such laws, orders
and regulations and to make all their employees and the sub-contractors fully
cognizant of their responsibilities thereafter.
The COMPANYs representative may discuss interpretations and applications of the
laws, orders and regulations referred above with the contractors representative or
construction superintendent, but such discussion shall not in any way relieve the
contractor of their responsibility hereunder. In addition and without in any way
limiting, restricting or prejudicing any of the COMPANYs other rights and
remedies, whether arising under any other provisions of this contract or under any
rule of law, the contractor shall :
i) Clean up and remove any pollution resulting from its non-compliance with the
provisions of this section, at their cost and expenses; and
ii) If the contractor fails to do so, the COMPANY may clean up and remove the
pollution in which case the contractor shall reimburse the COMPANY upon receipt
of bill therefore from the COMPANY the cost of such clean up and removal.
Such costs and expenses set forth in (i) and (ii) above shall be subject to the
limitations set forth in the following paragraph :
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Notwithstanding anything herein to the contrary, contractor and their sub-contractors

shall have a maximum liability for claims against contractor for any pollution or
contamination of US$ 500,000/- (United States Dollars Five hundred thousand only)
per incident with a maximum aggregate liability of US$ 1,000,000/- (United States
Dollars One million only) irrespective of whether such pollution or contamination
arises out of breach of this contract or the sole negligence of contractor or their subcontractors or the unseaworthiness of any vessel owned or operated by contractor or
their sub-contractors. COMPANY hereby agrees to protect, defend, indemnify and
hold contractor, and sub-contractors free and harmless from and against all claims
against contractor or its sub-contractor exceeding US$ 500,000/- (United States
Dollars Five hundred thousand only) per incident or US$ 1,000,000/- (United States
Dollars One million only) in the aggregate, which arises out of pollution or
contamination caused by the discharge or escape of oil or other pollutants or
contaminants in any way sustained or alleged to have been sustained in connection
with or by reason of the performance of work by contractor or its sub-contractor,
howsoever caused including, without limitation, whether caused in whole or in part
by the breach by contractor of its contractual obligations hereunder or by any
negligent act or omission in whole or in part of contractors, its sub-contractors, or
their respective agents or persons deployed by them or due to the unseaworthiness of
any vessel owned or operated by contractor or their sub-contractors or the defect or
deficiency of any equipment owned or operated by contractor or their sub-contractor.
However, the contractor shall be solely liable for hydrocarbon pollutants emanating
directly from contractors offshore constructional plant and equipment.
The contractor shall keep the COMPANY informed as to any such pollution or
contamination claims, demands, or suits made against the contractor involving such
claims or demands.
4.23
Procedure for Measurement of works
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4.23.1 Payment of works or part thereof whose price is subject to adjustment shall be based
on measurement of quantum of work executed and measured as stipulated herein.
The measurement of works shall be based on the as installed drawings which shall
be prepared based on the latest revision of approved AFC and shop drawings and
shall specifically, include all the changes incorporated during the execution of the
entire works with their reasons for changes duly approved by COMPANY/PMC.
These drawings are required to be submitted along with weight/length calculation
sheets within 45 days of completion of installation of respective items.
4.23.2 The COMPANYs representative shall ascertain and determine by a measurement
the value in accordance with the contract of work done pursuant to the contract.
The COMPANYs representative will give notice to the contractors authorized
representative when he wants any parts of the works to be measured. The contractor
shall forthwith attend or send a qualified person to assist the COMPANYs
representative or the Engineer/Engineers representative in that measurement and
shall furnish all particulars measurement by either of them. Should the contractor
not attend or neglect or omit to send representative then the measurement made by
the COMPANYs representative or approved by him shall be taken to be correct.
4.23.3 Works shall be measured on as installed basis net of all loss and wastage of
materials for the purpose of payments under the contract notwithstanding any
general or local custom, unless otherwise specifically prescribed in the contract.
4.23.4 The mode of measurement shall be in Metric System. Length will be measured in
meters and rounded off to 2nd decimal place.
4.23.5
Payments to the contractor shall be based on above measurements from the

approved bill of materials and in accordance with the agreed milestone payment
formula and contract price schedule of this contract.
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Completion Certificate
No certificate other than the Completion Certificate shall be deemed to constitute
approval of any work or other matter in respect of which it is issued or shall be taken
as an admission of the due performance of the contract or any part of it or of the
accuracy of any claim or demand made by the contractor or of extra work/change
order having been ordered by the COMPANY/PMC nor shall any other certificate
conclude or prejudice any of the rights of the COMPANY.
4.24.1 The contract shall not be considered as completed until a Completion certificate has
been signed by the COMPANYs representative on behalf of the COMPANY and
delivered to the contractor stating that the works have been completed to the
satisfaction of the COMPANYs representative in accordance with the contract.
4.25
Marking, Packing, Loading and Securing
4.25.1 General
The contractor shall comply with the specifications and instructions for handling and
storage, marking and loading, etc. as detailed in the contract specifications and any
other instructions which may be issued by the COMPANY/PMC.
4.25.2 The contractor shall load and stack the material in seaworthy condition conforming
to the prescribed standards in force to withstand land/ocean journey and insuring the
safety of cargo en-route and also arrival of material at ultimate destination in good
condition. Each package shall have on its outer side the following marking in
English in indelible paints.
i)
Port of loading
ii)
Name of contractor
iii)
Port of destination
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Consignee particulars in brief
4.25.3 In addition to the marking stated above, each package approved by the
COMPANYs representative shall carry a serial number or other appropriate
indelible marking/identification indicating the COMPANYs representatives
certificate of quality and/or the contractors certificate of quality and/or the
contractors certification of inspection and other documents as may be issued with
reference thereto.
The
COMPANY/PMC may also
require that such
marking/identification shall be applied or affixed by the contractor in the presence of

the COMPANYs representative.
4.25.4
The contractor shall ensure that no packages are shipped unless marked to comply
with all the instructions of the COMPANY/PMC.
4.25.5 Markings shall be correlated in invoices, packing list and on bill of lading, express
receipt of mailing certificates exactly as they appear on the equipment/materials.
4.26
Supply of Consumables
The contractor shall be responsible for furnishing all consumables required for
fabrication, installation, testing, trial runs, flushing, pre-commissioning and
commissioning as per scope of contract.
4.27
Diversion of Marine Spread

Notwithstanding anything contained elsewhere in the contract, the availability of the
work front shall be finalized by the contractor in consultation with the
COMPANY/PMC.
Planning of offshore activities shall accordingly be made
without affecting the overall schedule of completion. It is likely that the other
contractors/agencies may be carrying out their activities in nearby vicinity during the
same working season. It is imperative that the contractor shall coordinate with other
contractors/agencies, if required and necessary, as and when instructed by the
COMPANY/PMC in writing.
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Accordingly, if required by the COMPANY/PMC, contractor shall divert its

barges/vessels and develop offshore work schedules covering the entire scope
entrusted to him. These schedules shall be discussed with other contractors/agencies
along with COMPANYs representative and should it become necessary to further
modify the schedules, to avoid/minimize interference, needful shall be done without
jeopardizing the overall completion schedule.
The contractor shall be entitled for time and cost compensation in accordance with
provisions of clause 4.14.5 only if their barges/vessels remain on standby for want of
an available work front despite the contractors having made of such re-scheduling
of works and diversions of barges/vessels.
The contractor shall make such diversions of barges/vessels as per COMPANYs
representatives instructions in accordance with clause 4.14.5.
In case the COMPANY fails to make work front available, the COMPANY shall
also compensate for any additional movements till it comes back at the standby rate
of marine spread specified in the contract price schedule.
4.28
Information for Data Storage

The
contractor
shall
furnish
all
the
information
as
sought
by
the
COMPANY/COMPANYs representatives in formats in CD ROMS and hard copies

for its data storage and retrieval system. The formats will be communicated to the
contractor during details engineering.
4.29
Compliance with Local Law & Regulations
4.29.1 The contractor shall comply with all the laws, rules and regulations including but not
limited to those related to security matters (clause 4.14.11), Contract Labour Act,
Minimum Wages Act, ESI/PF Act etc. and shall keep the COMPANY harmless and
indemnified for any action brought against it for any violation/non-compliance of
any of the acts etc.
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4.29.2 The contractor shall give all notices and pay/bear all duties, taxes, charges, fees and
expenses except where otherwise expressly provided in the contract required to be
given or paid by any national or state statue, ordinance or other law or any regulation
or by-law of any international, local or other duly constituted authority in relation to
the performance of the works or of any temporary works and by the rules and
regulations of all public bodies and companies whose property or rights are affected
or may be affected in any way by the works or any temporary works. The contractor
shall acquire all permits, approval and or licenses form all local, state or central
government authorities or public sector undertakings in India, which such authorities
require the contractor to obtain in their name and which are necessary for the
performance of the contract including import licenses for materials and
visas/clearance from security angle etc. for the contractors and sub-contractors
personnel and entry permits for all imported constructional plant and equipment and
shall acquire all other permits, approvals and/or licenses which are not the
responsibility of the COMPANY and which are necessary for the performance of the
contract.
However, COMPANY shall assist contractor and/or sub-contractor upon receiving
written request from contractor to acquire the necessary permit, approvals and/or
licenses including work permit, visas and import licenses from all local, state or
central Government authorities or public sectors to the extent of issuing
recommendatory letters and documents mandatorily required to be submitted by
COMPANY to the concerned authorities without assuming any liability whatsoever.
4.29.3 The contractor shall comply with and confirm in all respects and shall ensure that all
their sub-contractors also comply with and confirm in all respects with the
provisions of any statute, ordinance or law as aforesaid and the regulations or byelaws of any international, local or other duly constituted authority which may be
applicable to the works or to any temporary works and with such rules and
regulations of public bodies and companies as aforesaid and shall be responsible for
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all costs arising from compliance and/or violation of the same and shall keep the
COMPANY indemnified against all penalties and liabilities of every kind for breach
of any statute, ordinance or law, regulations or bye-law
4.29.4 Without limitation of the generality of clause 4.29.3 the contractor shall observe and
comply with and shall ensure that all their sub-contractors also observe and comply
with the laws, regulations or requirements of any states which are littoral states with
respect to any sea areas comprised at the site and of any international authority or
international convention or other rule of international law or custom applicable
thereto for establishing or regulating freedom of navigation on the high seas,
conservation and protection of fisheries, policing and jurisdiction in territorial water
and exercise of sovereign rights over the sea-bed.
4.29.5 The contractor shall keep informed the COMPANY and appropriate Indian
authorities reasonably in advance, of all obstructions in the waters of the Bay of
Bengal and any other area of the continental shelf within Indian jurisdiction and
adjacent waters and the approaches to them which the works will involve. The
contractor shall have regard to all warnings and information issued by the statutory
authorities.
4.29.6 Subject to provisions of the contract, the contractor shall defend, indemnify and hold
the COMPANY harmless from and against all penalties, liabilities, damages, claims,
fines and expenses of whatever nature arising out of or resulting form the violation
of such laws or rules or regulation having the force of law within the scope of clause
no. 4.29.3, 4.29.4 and 4.29.5 by the contractor or their sub-contractors including
their personnel.
4.29.7 All fossils, coins, articles of value of antiquity and structure and other remains or
things of geological or archeological interest discovered at the site or during the
works shall be the absolute property of the COMPANY. The contractor shall take
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reasonable precautions to prevent their workmen or any other persons from

removing or damaging any said article or thing and shall immediately on discovery
thereof and before removal acquaint the COMPANYs representative of the
discovery and carryout at COMPANYs cost the disposal of it at the COMPANYs
representatives orders at rates to be mutually agreed where such rates are not
available in the contract.
4.30
i)
Third Party Inspection & Certification Agency and Marine Warranty

Surveyor
The COMPANY have appointed, at their cost, a Third Party Inspection and
Certification Agency to fulfill the Third Party Inspection and Certification for the
work provided by the CONTRACTOR.
ii)
The Certification shall be in accordance with the rules, standards and regulations
stipulated in the CONTRACT and as required by the Certification Agency.
iii)
The certification agency will inspect and certify the work barge, at
COMPANYS discretion, at the barge setup yard prior to its travel to
Visakhapatnam. CONTRACTOR to obtain certification of the barge from
certification agency before commencement of travel to Visakhapatnam Port.
However, certification from certification agency shall not relieve any obligations
of the contractor under the contract.
iv)
The Certification Agency will review and approve all drawings, documents and
procedures related to design, engineering, procurement, fabrication, installation
and testing and CONTRACTOR shall submit the same during design &
engineering stage.
v)
The Certification Agency will review and approve the drawings and documents
related to sea fastening and load out and those shall be submitted by the
CONTRACTOR atleast 60 days prior to the activity.
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The Certification Agency will attend to the tests and inspections that shall be
carried out by The CONTRACTOR at their shop for witness and approval during
fabrication, if any. CONTRACTOR to give atleast 14 days prior notice for shop
inspections, if any. However, for all site/ barge related inspection activities,
inspector will be available at spot.
vii)
The Certification Agency will station their inspectors at installation site and work
barge to fulfill the activities of tests and inspection as required for the
Certification.
viii)
The Certification Agency will issue the Certificates upon completion and
satisfaction for the activities of Certification.
j) The contractor shall meet the requirements of the certification agencies and shall
also be responsible to co-ordinate with the certification agencies in supplying to
them in a timely manner, specifications, drawings, plans, calculations and all
such other information relating to the work as may be required by the
certification agencies from time to time including assistance at the appropriate
sites to carry out their work.
The contractor shall ensure at their own cost quick supply of required copies of
documents/drawings to the certification agency by fastest courier service
available.
Should the requirements of certification agencies exceed those of contract
specifications, the same shall be dealt in accordance with section 4.33.1.
k) In addition OWNER will appoint a MARINE WARRANTY SURVEYOR for
their insurance purpose at their own cost. CONTRACTOR shall provide all
necessary facilities and also comply with requirements of the Marine Warranty
Surveyor at no extra cost to OWNER.
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GUARANTEES, LIABILITIES AND LIQUIDATED DAMAGES
4.31.1 Guarantee and Warranty Conditions

4.31.1.1 The contractor shall ensure that all materials used in execution of the works under
this contract, shall be new and unused and of recent manufacture. The contractor
shall warrant that every work executed under this contract shall be free from all
defects and faults in design and engineering, materials, workmanship and handling
etc. and shall be consistent with established and accepted standards for materials
and workmanship of the type ordered and in full conformity with the design,
drawings, specification, or sample, if any, and shall if operable, operate as per
design, drawings, specifications and samples if any, and other stipulated conditions
in accordance with the contract. This guaranty / warranty shall be valid for a
period of 12 months from the date of issue certificate of completion and
acceptance.
4.31.1.2 If during the aforesaid period, the said work be discovered not to conform to the
description and quality aforesaid or have deteriorated otherwise than by fair wear
and tear, the contractor shall promptly and at its cost repair/replace or otherwise
made good such defects as well as any damage to the works caused by such defect.
If the contractor fails to replace/repair such defective work within a reasonable
time depending upon exigency of the situation, then the COMPANY will be
entitled to deploy other agencies to carryout the same and if such work which was
the liability of the contractor to do at their own expense under the contract, then all
actual repairing/replacement cost and also physical damage sustained on account
of such defective material by any other associated or allied work and structures and
other facilities forming part of the works shall be recoverable from the contractor.
The contractor shall make payment against such claim within 30 days of receipt
thereof. If the contractor fails to pay the amount to the COMPANY within 30 days
from the receipt of the invoice then the amount may be deducted by the
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COMPANY from any money which is due or may become due to the contractor
including COMPANYs right to encash the performance guarantee furnished by
the contractor in accordance with provision of clause 4.10.
4.31.1.3 The period of guarantee for any part of the works shall be as specified in clause
4.31.1.1. If the works or any part thereof cannot be used by reason of such
defect/damage and/or making good of such defect, and/or damage the warranty
period of the works or such part thereof as the case may be shall be extended by a
period equal to the period during which the works or such part thereof cannot be
used by the COMPANY due to any of the aforesaid reasons. The contractor shall
arrange for the performance guarantee to remain valid until the expiration of the
extended warranty period with respect to such part of the works.
4.31.1.4 To the intent that during the period of guarantee the works shall remain in as good
condition (fair wear and tear excepted) as they were at the beginning of the period
of guarantee and that all things shall continue to perform or operate (fair wear and
tear excepted) during the period of guarantee in accordance with all relevant
contract specifications or contract conditions. The contractor shall do all repair,
amendment,
reconstruction,
rectification
and
making
good
of
defects,
imperfections, shrinkages and settlements, including where necessary the repair or,
if repair proves impossible, the replacement of any plant machinery, equipment
thing or process, which the COMPANY requires of the contractor in writing
during the guarantee period or within fourteen days after the expiration of the
period of guarantee as a result of any inspection make during the period of the
guarantee.
4.31.1.5 The contractor shall be and remain responsible during the period of guarantee for
making good with all possible speed any defects arising from contractors
defective design and engineering (other than a design made, furnished or specified
by the COMPANY and for which the contractor has disclaimed responsibility in
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writing within 15 days time after receipt of the COMPANYs instruction) of the
aforesaid structure, which may develop under the conditions provided for in the
contract and under proper use in the works or any portion thereof.
4.31.1.7 The contractor shall carry out all the works and supply and install all replacement
materials pursuant to this section at no additional cost to the COMPANY including
the cost of timely transport of materials and equipments to site if the need for the
work is due to poor workmanship or faulty materials supplied by the contractor or
due to the use of materials not in accordance with the contract or specifications or
due to neglect or failure of the contractor to comply with any obligations.
4.31.1.8 During the guarantee period if the contractor is required by the COMPANY to visit
the offshore site for checking and carrying out remedial work of facilities all
expenses towards personnel, traveling to and from the site, living and
accommodation etc. while in India for remedial works shall be borne by the
contractor unless such defects are caused by the COMPANY or COMPANYs
agents/other contractors.
4.31.2 Completion and Liquidated damages
4.31.2.1 Completion
The scheduled completion date(s) for the works covered under the contract shall be
as per clause 4.7.5 above.
However, the COMPANY reserves in itself the right, if the exigencies of the project
under consideration so required, to phase out the completion of any part of the works
by mutual agreement.
4.31.2.2 Liquidated Damages
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Time is the essence of the CONTRACT. In case the CONTRACTOR fails to

complete the whole work within the stipulated period, they shall be liable to pay
liquidated damages as per Cl no. 10 of GCC. The parties agree that this is a genuine
pre-estimate of the loss/damage which will be suffered on account of delay on the
part of the Contractor and the said amount will be payable on demand without there
being any proof of the actual loss of damages caused by such delay.
The maximum liquidated damages that can be levied shall be limited as mentioned in
the above mentioned clause of GCC.
The COMPANY may without prejudice to its right to effect recovery by any other
method, deduct the amount of liquidated damages from any money belonging to the
contractor in their hands or which may become due to the contractor. Any such
recovery of liquidated damages shall not in any way relieve the contractor from any
of its obligations to complete the works or from any other obligations and liabilities
under the contract
In case Bidder is proposing a deviation in the bid to the clauses regarding liquidated
damages mentioned in GCC, the same shall be mentioned in their bid. In that case,
the deviation will be loaded as per the loading factor mentioned in Annexure 6.
4.32.0 INSURANCE
4.32.1 Insurance and Liability
4.32.1.1
Before commencing the execution of WORK, the CONTRACTOR without
limiting or reducing in any manner any other provisions of the CONTRACT, and in
particular any such provision pertaining to their obligation, liability or responsibility
shall procure and maintain at their own cost and expenses the various insurance
policies specified herein or the benefit of and in the joint names of the COMPANY
and the contractor against all risks upto the contract value thereof or such additional
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sum as may be specified in the CONTRACT in such a manner that the COMPANY
and the CONTRACTOR are covered
i)
from the commencement of the WORK until the date of issue of certificate of
completion and acceptance for loss or damage arising from a cause, occurring
prior to the date of issue of certificate of completion and acceptance and for
any loss or damage occasioned by the contractor in the course of any
operations carried out by them.
ii)
during the guarantee period against any loss or damage arising from either the
contractor complying with their obligations under the contract or for
completing any outstanding work.
OR
for loss or damage in respect of the works completed by the contractor prior to
the commencement of the guarantee period.
4.32.1.2
Policies to be taken out by CONTRACTOR

The CONTRACTOR and the COMPANY shall be covered by insurances to be
taken out and maintained by the CONTRACTOR as set forth below:
i)
Workmans Compensation and/or Social Security Insurance and/or

Employers Liability insurance and/or any other Insurance with statutory
limits as required by the laws of India to provide for payment to their
employees employed on or in connection with the WORK covered by this
CONTRACT and /or their dependents.
ii)
Insurance to cover all risks (a) In respect of their employees, personnel and
representatives deputed to work under the CONTRACT (b) covering all
vessels, marine spreads, barges, ships and marine crafts (whether navigable
or not) and ERECTION EQUIPMENT including but not limited to hull and
machinery owned, leased, chartered or hired by the CONTRACTOR or any
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SUBCONTRACTOR in the amount of the full value thereof by

CONTRACTOR and/or SUBCONTRACTORS and providing indemnity
against losses or damages by such perils and risk equivalent to those set forth
in Institute Time clause Hulls 1/10/83. (c) In respect of their own as well as
hired equipment (to the extent of their insurance interest) tools, materials and
operational facilities used during the entire period of their engagement in
connection with the CONTRACT to the insurable value of such
constructional plant, equipment and other things. COMPANY shall have no
liability whatsoever in this regard.
iii)
Hull & Machinery Insurance covering all ERECTION EQUIPMENT

provided by CONTRACTOR.
iv)
Automobile and Transportation Liability Insurance covering use of all

automobiles and transport such as cars, trucks, excavators, side booms,
cranes, aircraft, launches, tugs, etc. used by the CONTRACTOR or their
SUBCONTRACTORS (whether or not owned by them) in connection with
the execution of the WORK.
v)
Cargo Transit Insurance covering loss or damage of (a) materials etc.

forming part of the WORK, occurring whilst in transit from the
CONTRACTORs, SUBCONTRACTORS, vendors/manufacturers works
and/or warehouse until arrival at the site for the materials and (b)
constructional plant & equipment to be provided by the CONTRACTOR or
its SUBCONTRACTOR(S). The CONTRACTOR shall comply with all
warranties stipulated by their insurers in the marine transit policy including
but not limited to the approval of tug(s) and tow(s), towage arrangement,
stowage, sea-fastening, packaging, marking, lifting, shifting, loading,
unloading, skidding and launching at their own risk and cost. All free issue of
Materials (FIM) from COMPANY is to be excluded.
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Protection and Indemnity Insurance and/or Marine Liability Insurance for

owned, non-owned or hired waterborne craft covering CONTRACTORs
liability including but not limited to crew, pollution, contractual and wreck
arising from the use and/or operation of the said craft to an amount of US $
5,000,000 (US Dollar Five Millions only)
vii)
All Risks Physical Damage Insurance for the full replacement value and
covering loss of or damage to ERECTION EQUIPMENT supplied and all
other property belonging to or hired or used by CONTRACTOR or
SUBCONTRACTORS at WORK SITE.
viii)
Comprehensive General Liability Insurance in the amount upto US $

1,000,000 (US Dollar One Million only) for any one claim or series of claims
arising out of an accident or occurrence in connection with the WORK
resulting in bodily injury and/or personal injury including death and property
damage or destruction to any person or property (including the property of
COMPANY)
which
shall
arise
out
of
or
in
consequence
of
CONTRACTORs performance of the WORK. Such policy shall include

Contractual Liability.
4.32.1.3
Policies to be taken out by COMPANY
COMPANY shall at all times until Commissioning at their own expense provide
and maintain the following insurance:
a) Third party liability covering bodily injury or loss of human life
(engineers
and
workmen
not
belonging
to
CONTRACTOR
or
SUBCONTRACTORS) and also covering the risks of damage of any others

material, equipment and property during the execution of this CONTRACT.
However, the value of third party liability for compensation for bodily injury
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/ loss of human life and damage of equipment/ property shall not exceed US
$ 5,000,000 (US Dollars Five Millions only)
b) CAR (Construction All Risks) Insurance or any such equivalent cover in
conjunction with Hull & Machinery policy, against all risks of physical loss
or damage to WORK for full replacement value which includes all
CONSUMABLES and MATERIALS including FIM supplied to or provided
by COMPANY and/or CONTRACTOR and/or their SUBCONTRACTORS
and which are to be incorporated into the WORK (except ERECTION
EQUIPMENT and other property belonging to or rented by CONTRACTOR
or SUBCONTRACTOR) while at WORK SITE from the start of the WORK
until Commissioning. This policy shall also include loss or damage due to
pollution from the start of WORK until Commissioning.
4.32.1.4
CONTRACTOR shall obtain insurance from internationally recognized rated
Insurance / reinsurance firm or from company incorporated and registered in India or

jointly with a company of international repute and an insurance company
incorporated and registered in India. The details indicating all terms and conditions,
insurance coverage shall be furnished to COMPANY for its prior written approval.
Without such approval of the COMPANY, CONTRACTOR shall not proceed for
finalization of insurance policies.
Approval by the COMPANY of any insurer or terms of insurance proposed by the
contractor shall not relieve the contractor of any of its obligations or liability under
or arising from this CONTRACT or generally at law.
4.32.1.5 CONTRACTOR shall name COMPANY as additional insured and shall include a
cross liability provision on the policy specified in clauses 4.32.1.2 except for the
workmens compensation and Employers Liability Insurances. All other insurances
where COMPANY has not been named as additional insured with CONTRACTOR,
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the CONTRACTOR shall ensure that COMPANY obtains the benefit of such
insurance policies.
4.32.1.6 COMPANY will name CONTRACTOR and their SUBCONTRACTORS as
additional insured and shall include a cross liability provision on the policy specified
in Clause 4.32.1.3.
All other insurances where CONTRACTOR and their
SUBCONTRACTORS has not been named as additional insured with COMPANY,

the COMPANY will ensure that CONTRACTOR and their SUBCONTRACTORS
obtain the benefit of such insurance policies.
4.32.1.7 The insurance cover taken by the CONTRACTOR shall apply even when the loss
or damage might have occurred due to the negligence of the COMPANY, its
authorized representative or its workmen or any consultancy inspection or
certification agency working for the COMPANY. The CONTRACTOR shall in all
respects comply with any conditions and fulfill the necessary requirements /
obligations stipulated in the insurance policies including provisions relating to
adequate fire fighting facilities, watch and ward, Approval of Warranty Surveyors,
etc. so that any claim is not rejected.
4.32.1.8 The terms of insurance shall include a provision whereby in the event of any claim
being brought or made against the COMPANY in respect of which the
CONTRACTOR would be entitled to receive indemnity under the policy, the insurer
will indemnify the COMPANY against such claims and any costs charges and
expenses in respect thereof.
4.32.1.9 All insurance policies of the CONTRACTOR shall embody the following clause
The insurers hereby waive their rights of subrogation against HINDUSTAN
PETROLEUM CORPORATION LIMITED or any of their employees or their
subsidiaries, affiliates or assigns
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4.32.1.10 Without limitations of the contractors obligations and responsibilities, if the

CONTRACTOR sub-contracts any part of the work, the responsibility and insurance
provisions of each sub-contract shall be consistent with the CONTRACT. The
CONTRACTOR shall be responsible and shall take out and maintain as its cost
similar insurances as specified herein for SUBCONTRACTORS or any other third
party connected with the performance of the WORK. This, however, shall not relieve
CONTRACTOR from their responsibilities under this CONTRACT. Further any
deficiencies in the coverage or policy limits of SUBCONTRACTORS insurances
shall be the sole responsibility of CONTRACTOR.
4.32.1.11
In the event there is any misrepresentation, non-disclosure, breach of
express/implied warranties, unlawful activity, breach/non-fulfillment of any terms

and conditions of the policy or any willful misconduct on the part of the
CONTRACTOR which may result in automatic termination, expiry, or penalty under
the policy, the CONTRACTOR shall be solely responsible for the same, and bear all
such consequences. Any breach of conditions and/or warranties of the insurance
policies by CONTRACTOR and/or their SUBCONTRACTORS shall also be for the
account of the CONTRACTOR. Further in the event of the CONTRACTOR having
failed to insure (for whatever reason), or has inadequately insured, they alone shall
bear the consequences of not being insured or protected.
4.32.1.12
COMPANY will defend, indemnify and hold CONTRACTOR harmless from
and against any losses, damages, cost or claims relating to COMPANYs property
except in case of gross negligence or willful misconduct of the CONTRACTOR,
their SUBCONTRACTOR(S) their agents or employees, in which case the
CONTRACTOR shall be liable to bear any loss or damage occurring to the property
of the COMPANY as a result of its gross negligence or willful misconduct, provided
however, that such liability shall be limited to 100% of the contract price.
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Gross Negligence means: any act or failure to act (whether sole, joint or
concurrent) by a person or entity which was intended to cause, or which was in
reckless disregard of or wanton indifference to avoidable and harmful
consequences such person or entity knew, or should have known, would result
from such act or failure to act. Notwithstanding the foregoing, gross negligence
shall not include any action taken in good faith for the safeguard of life or
property.
willful misconduct means : International disregard of good and prudent
standards of performance or proper conduct under the contract with knowledge
that it is likely to result in any injury to any person or persons or loss or damage of
property.
4.32.1.13
The contractor shall prior to commencing any relevant part of the WORK
furnish to the COMPANY, copies of the cover notes / insurance policies /

certificates of insurance from CONTRACTORs insurance underwriters evidencing
the Insurance coverage required by clause 4.32.1.2. Policies and/or extension and/or
renewal certificates or documents shall be furnished to COMPANY as and when
applicable. CONTRACTOR shall cause the insurer to endorse such policies of
insurances to provide COMPANY with not less than 30 (thirty) calendar days notice
of any cancellation or material amendment thereof. If such insurance is cancelled,
CONTRACTOR shall obtain other insurance immediately in accordance with clause
4.32.1.2
4.32.1.14
Necessary premiums for the Insurance Policies to be taken by the
CONTRACTOR and as required under the terms of such policies shall be paid by
the CONTRACTOR. The CONTRACTOR shall produce a certificate from
CONTRACTORs insurance underwriters to the effect that all premia under the
policy have been paid and indicating validity of the policy. It shall be the
responsibility of the contractor to pay the premium in time and to keep the policies
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of insurance, as required by the contract, valid throughout the period of execution of

WORK.
4.32.1.15
Should CONTRACTOR at any time neglect or refuse to provide or renew
any insurance required herein, or should any insurance be cancelled, COMPANY

shall have the right to procure such insurance and, in such event, any sum so paid by
COMPANY shall immediately become due and payable to COMPANY by
CONTRACTOR.
COMPANY shall be entitled to deduct such sums from any
moneys due or which may become due to CONTRACTOR in addition to any other
remedies COMPANY may have under this CONTRACT.
However, if the policy lapses due to any reason, then the loss, damages and all
liabilities on account of the policy having lapsed shall be to the account of the
contractor, nothing in this clause shall be construed by the CONTRACTOR as a
waiver of their obligations to insure as required under the CONTRACT. Further
nothing in this clause shall impose upon the COMPANY any obligation to insure on
behalf of the CONTRACTOR. The COMPANY may exercise its option to do so as
stated herein but failure to exercise such option shall not entitle the
CONTRACTOR to seek damages from the COMPANY or eschew responsibilities
under the CONTRACT including their duties to insure and keep valid insurance
policies.
4.32.1.16
Notice of any occurrence which may give rise to any claim for loss or
damage covered under the foregoing insurances shall be given by CONTRACTOR

to
COMPANY
giving full
details
of
such occurrence,
without
delay.
CONTRACTOR, SUBCONTRACTOR, and COMPANY (including agents and

designated representative) shall co-operate fully with Insurance carriers furnishing
the insurance policies specified in Clause 4.32.1.2 in the event of claims.
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The CONTRACTOR shall lodge, whenever required, the necessary claim
with the insurance company and shall settle any and all claims with the insurance
company thereafter, keeping the COMPANY informed of all such action taken by
the CONTRACTOR. However, the CONTRACTOR shall proceed with the repair
and/or replacement of component/personnel and execution of the WORK and carry
out the CONTRACT without waiting for the settlement of the claim.
CONTRACTOR shall prepare and follow-up any claims made under the policies
effected as required under the CONTRACTOR at the CONTRACTORs risk and
cost. The CONTRACTOR shall not give any release or make any compromise with
the insurer without the prior written consent of the COMPANY, in respect of the
insurance claims in which COMPANYs interest is involved, which consent shall
not be unreasonably withheld.
4.32.2 War Risks
4.32.2.1
In the event the CONTRACTOR is given written notice by the insurance
underwriters, that, because of impending hostilities or war like operations, piracy,

civil war, revolution, rebellion, insurrection or civil strike in the Indian Territorial
Waters, Indian Exclusive Economic Zone, the said insurance underwriters intend to
cancel the contractors war risk, confiscation insurance and detention cover in
respect of the contractors offshore Constructional Plant & Equipment deployed at
the site, the COMPANY agrees to indemnify (reimburse) and hold the
CONTRACTOR harmless for any loss arising from the said risks beginning on the
effective date as per the insurers notice provided that the CONTRACTOR gives the
COMPANY immediate notice of such action proposed by the insurance underwriters
(with photocopy of the insurers notice) of the said cancellation. Alternately, the
COMPANY shall have the option to suspend the contract and direct the
CONTRACTOR to demobilize his offshore Constructional Plant & Equipment, in
which case the CONTRACTOR shall discontinue the work in accordance with
COMPANYs instructions and demobilize and the foregoing indemnify shall
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terminate upon CONTRACTORs offshore Constructional Plant & Equipment

leaving Indian Exclusive Economic Zone. Upon the CONTRACTORs underwriters
electing to increase the insurance premium for the said additional insurance risks, the
COMPANY, may instead of terminating the contract, direct the CONTRACTOR to
demobilize their offshore Constructional Plant & Equipment to a safe location, or
agree to compensate the contractor for their additional insurance premium on
production of proof of actual payment thereof.
4.32.2.2
Should the CONTRACTOR be prevented from performing the WORK under
the CONTRACT on account of above said demobilization, the Force Majeure clause
in the CONTRACT shall come into force. The foregoing provisions of this clause
shall not be construed to prevent the CONTRACTOR/COMPANY from invoking
the provisions of Force Majeure clause when the conditions stated in clause 4.32.5
occur. Any demobilization and remobilization ordered by the COMPANY under the
provisions of this clause 4.32.2 shall be to COMPANYs account, provided that the
details of such demobilization and remobilization including the place, duration and
cost of such demobilization shall be mutually discussed and agreed between the
parties.
Any additional cost incurred by the CONTRACTOR in protecting and preserving the
WORK prior to the CONTRACTOR leaving the SITE under this clause 4.32.2 and
time lost as a result of any suspension under this clause 4.32.2 shall be to the sole
account of the COMPANY.
4.32.3 WARRANTY SURVEYOR
Warranty Surveyor any marine surveyor appointed by COMPANY for insurance
warranty or other purposes.
COMPANY will appoint a Warranty Surveyor as required by the Insurance Policy at
its cost. CONTRACTOR shall provide all facilities as required and obtain all
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necessary approvals and also comply with recommendations of the Warranty

Surveyor at no extra cost to COMPANY.
4.33
Force Majeure
The following provisions for Force Majeure shall be read in conjunction with Cl 13 of GCC.
4.33.1
The term Force Majeure as employed herein shall mean act of God, revolt, riot,
fire, flood, war, typhoon and Acts and Regulations of respective Governments of
the two parties, namely the COMPANY and the Contractor.
4.33.2
In the event of either party being rendered unable by Force Majeure to perform any
obligation required to be performed by them under the contract, other than the
obligation to make payments due and payable under this contract except when the
COMPANY is physically prevented by a force majeure event from making
payment, in which case the obligation shall be suspended the relative obligation of
the party affected by such force majeure shall upon notification to the other party
be suspended for the period of delay which is caused by such force majeure event.
4.33.3
Upon the occurrence of such cause upon its termination, the party alleging that it
has been rendered unable as aforesaid thereby shall notify the other party in
writing within seventy-two (72) hours of the alleged beginning and ending thereof
giving full particulars and satisfactory evidence in support of its claim.
4.33.4
Time for performance of the relative obligation suspended by the force majeure
shall then stand extended by the period of delay which is directly caused by force
majeure event. The party who has given such notice shall be excused from the
performance or timely performance of its obligations under the contract, for so
long as the relevant event of force majeure continues and to the extent that such
partys performance is prevented, hindered or delayed, provided the party or
parties affected by the event of force majeure shall use reasonable efforts to
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mitigate the effect thereof upon its performance of the contract to fulfill its
obligation under the contract.
4.33.5
Delay of non-performance by a party hereto caused by the occurrence of any event

of force majeure shall not:
a)
Constitute a default or breach of the contract,
b)
Give rise to any claim for damages or additional cost or expense occasioned
thereby, if such delay or non-performance is caused by the occurrence of an
event of force majeure. Force majeure conditions are not payable under any
circumstances.
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SECTION 5
SCOPE OF WORK
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5.0 INTRODUCTION
The objective for the work described herein is for CONTRACTOR to perform the
remedial work of providing firm support to 48 Offshore crude pipeline located in the
vicinity of sand trap area in Visakhapatnam Port using piled supports and supporting
clamps as per details provided herein. The proposed pile supports are for 260m section
of the installed offshore pipeline route i.e. from Ch150 to Ch410 m wherein the seabed
and pipeline profile was noticed to have been changed from the as-built status due to
sand trap dredging activity undertaken by Visakhapatnam Port Trust (VPT) in the
vicinity of the 48 offshore pipeline route of Single Point Mooring System of HPCL
located at Visakhapatnam, India.
5.1 SCOPE OF WORK
The base scope of work shall include but not limited to the following:
Lift up the Pipeline to original design levels before it is permanently supported to

relieve the additional stress developed due to sagging.
Provide permanent steel clamp supports for the 48 Offshore pipeline at regular
intervals along the pipeline section in the proximity of sand trap area. These steel
pipeline clamp supports are bolted and supported by a plate connected to a beam
which is further held by two piles driven into the seabed on either side of the
pipeline. This arrangement will always hold the pipeline in its vertical as well as
horizontal alignment even if the sand below the pipeline slips due to dredging
activities undertaken by VPT in the vicinity of the pipeline. This arrangement will
also have minimum restrictions to sand movement towards the sand trap. The piled
support for the pipeline provides an effective solution to protection for the entire
pipeline design life. The piled support consists of a 12.7mm thick 300mm wide
plate supporting the pipeline. This plate shall be connected to a horizontal beam with
stiffener plates which will be on top of the pipeline with an acceptable clearance.
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The beam will be held by means of bolted connections to two piles driven into the
seabed adjacent to the pipeline on both the sides of pipeline i.e. sand trap side and
Dolphin Hill side. The piles to be driven shall be 24 19.1mm thick structural
steel. This remedial work shall be undertaken as EPCI (Engineering, Procurement,
Construction and Installation) package which is planned to be executed before the
next dredging season of Feb 2011.
Preparation of detail fabrication and installation drawings for review and approval of
HPCL/INTEC. CONTRACTOR shall be responsible for all engineering pertaining
to preparation of site, temporary structures, and all installation engineering.
CONTRACTOR shall provide calculations to show the adequacy of selected
hammer/s to drive the piles. A dynamic wave equation analysis is required. All
lifting arrangement, riggings and lift appurtenances shall be calculated to comply
with project and industry standards. Lift charts shall be prepared for all major lifts to
ensure lift loads and radius are within the crane capacity. All temporary works shall
be engineered to ensure compliance to safety, health and environment requirements.
All engineering to be performed by CONTRACTOR shall be reviewed and approved
by HPCL/INTEC prior to implementation.
Provide standard 3 coat epoxy paint (suitable for marine application) system (total
minimum 400 DFT) for the piles/pipe support structures. The extent of the painting
shall be as indicated in drawing no. 21534102-401-DRW-026 (Sht 2).
CONTRACTOR shall use the paint manufactured by a reputed paint manufacturer
approved by HPCL/INTEC. The painting system proposed and painting procedure
shall be submitted to HPCL/INTEC for their review and approval.
Design and install anodes for the piles/structures. The design of the anode shall be as
per DNV-RP-B401 and shall be for a design life of thirty years. CONTRACTOR
shall procure the anodes from reputed anode manufacturer approved by
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HPCL/INTEC. Anode system design, installation drawings etc. shall be submitted to

HPCL/INTEC for their review and approval.
Preparation and submission of Work Procedures and Inspection Test Plans (ITP) for
various activities of the work for review and approval of HPCL/INTEC. The work
shall be executed as per approved Procedures and ITPs.
Providing diving support for the execution of work. CONTRACTOR shall provide
under-water inspection of the installation work by carrying out diver survey of the
work. All under-water inspection videos shall be recorded on digital media to be
submitted together with the final as-built documentation.
CONTRACTOR shall perform a pre-installation survey and a post-installation

survey of the pipeline along the distance of this work scope. The survey shall cover
a width of at least 5m along the pipeline section. The survey shall include the initial
and final bathymetry along the affected pipeline and a video recording of the
completed installation below water.
CONTRACTOR shall perform a geotechnical soil investigation along the 260m

section of the pipeline. A minimum of four (4) boreholes, to 30m below seabed,
equidistant along the 260m section shall be made. The tests shall include as a
minimum, sieve analysis, wet and dry densities, shear strengths, angle of internal
friction, and cohesion values as appropriate. Laboratory tests shall also include
triaxial tests. The report shall be produced by a competent geotechnical consultant,
reporting the recommended geotechnical design parameters for pile design.
Where the initial bathymetry survey showed the water depth to be excessive and the
designed pile installation cannot be performed, CONTRACTOR shall seek the next
course of action from HPCL/INTEC. If back-filling is required, CONTRACTOR
shall perform the back-filling operations as directed by HPCL/INTEC. Any
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excavation/dredging carried out by CONTRACTOR shall be backfilled with the

adjust sand.
CONTRACTOR shall excavate around the pipeline locally where the supports are to
be installed, where necessary. CONTRACTOR shall ensure that any such
excavation shall not introduce excessive free spans on the pipeline prior to
completion of the support installation. If necessary, CONTRACTOR shall provide
adjacent support by air-bags or sand bags as necessary.
All materials required for the work including 24 piles, beams, clamps, anodes,
paints etc shall be in the scope of supply of Contractor. Bidder to note that HPCL
will not issue any materials required for the work and the complete materials
required for the work shall be entirely in the scope of CONTRACTOR.
CONTRACTOR shall fabricate all permanent structures including the piles, beams,
support plates, anodes and all necessary components in accordance to design
drawings and specifications. The piles and structures shall be painted in accordance
to project specification mentioned above. All materials and fabrication procedures
shall be procured in accordance to the design drawings and to be approved by
HPCL/INTEC prior to fabrication. CONTRACTOR shall submit the list of the
vendors from whom they intend to procure the materials and get them approved by
HPCL/INTEC.
Liaise and seek approval/permit from local authorities and Government departments
and certification by necessary government authorities.
Provide all EQUIPMENT including construction barges, vessels, survey boats,

dredging/excavation equipment, construction equipments & tools, consumables,
fabrication and welding equipment, skilled/semi-skilled manpower for execution of
work, divers, diving support equipments etc required for the timely completion of
the work.
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Provide experienced supervision and managerial site staff to manage and execute the
work as per the best industrial practices.
Provide inspection staff for regular inspection of fabrication and installation

activities as per approved ITP.
Provide insurance for CONTRACTOR/Subcontractors manpower, equipment,

material and third party liabilities.
Materials belonging to CONTRACTOR required for the work shall be stored at

location to be identified by CONTRACTOR at their own cost.
Site office of CONTRACTOR shall be located at convenient location to be identified

by CONTRACTOR at their own cost.
5.2 ENVIRONMENTAL IMPACT

CONTRACTOR is responsible for complying with the requirements for mitigating
environmental impact during the construction phase of the PROJECT.
5.3 PIPELINE CHARACTERISTICS
The outside diameter of the offshore pipeline is 48-inch (1219 mm) with a wall
thickness of 20.6 mm Submerge Arc WeldedSingle seam and material grade is API 5L
X65. The pipeline has been coated with 3 Layer Poly Ethylene anti-corrosion coating 3
mm thick and concrete weight coating of 125 mm thick in this stretch where the work is
to be carried out. The pipeline is filled up with either water or crude oil.
5.4 WORK SCHEDULE
All the works envisaged as per this RFQ shall be completed in two months from date of
award by FOA and no work shall exceed beyond Feb 2011. CONTRACTOR shall
submit their proposed schedule with detailed activities and duration of each activity,
proposed resource mobilization suiting the above completion period.
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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
SECTION 6
SCHEDULE OF PRICE
- 152 of 237 -
Rev 0

INSTALLATION OF PILED SUPPORTS FOR 48 OFFSHORE PIPELINE OF SINGLE POINT MOORING
SYSTEM
INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
Rev 0
6.1
Contents of this Format are to be reproduced on Bidders Letter-Head while quoting.
6.2
Contents which are in the form of instructions / queries, are to be redrafted as affirmative replies and are to be reintroduced at
the same designated Serial Nos.
6.3
Quoted amount is Lump sum charges for all items.
6.4
Bidder shall quote the prices strictly as per the Schedule of Price Format.
6.5
Complete typed matter/contents of the price schedule / price attachments are to be made available in the un-priced offer, with
prices blanked-out.
6.6
BIDDERs Schedule of Price shall not include any provision or condition for price escalation.
6.7
The Price quoted shall include all CONSTRUCTION EQUIPMENT and manpower required to execute the WORK to enable
OWNER to have a completed and workable PROJECT, which is operable in accordance with the PROJECT
SPECIFICATIONS and guarantees set forth in the CONTRACT.
6.8
The Schedule of Price shall include all taxes & duties as specified in Special Conditions of Contract.
6.9
For all items, on Lumpsum basis, payment will be made on actual quantity based on unit rates derived from the Lumpsum
amount
Breakdown of Price for Installation of Piled Supports for 48-inch Offshore Pipeline
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Sr.
No
Description
Quantity
Preparation of detail fabrication and installation drawings for review

and approval of HPCL/INTEC. CONTRACTOR shall be responsible
for all engineering pertaining to preparation of site, temporary
structures, and all installation engineering. CONTRACTOR shall
provide calculations to show the adequacy of selected hammer/s to
drive the piles. A dynamic wave equation analysis is required. All
lifting arrangement, riggings and lift appurtenances shall be
calculated to comply with project and industry standards. Lift charts
shall be prepared for all major lifts to ensure lift loads and radius are
within the crane capacity. All temporary works shall be engineered
to ensure compliance to safety, health and environment requirements.
All engineering to be performed by CONTRACTOR shall be
reviewed and approved by HPCL/INTEC prior to implementation.
Performing pre-installation survey and a post-installation survey of

the pipeline along the distance of this work scope. The survey shall
cover a width of at least 5m along the pipeline section. The survey
shall include the initial and final bathymetry along the affected
pipeline and a video recording of the completed installation below
water.
In case the initial bathymetry survey shows the water depth to be

excessive and the designed pile installation cannot be performed,
CONTRACTOR shall perform the back-filling operations as directed
by HPCL/INTEC. The source of material for the backfill shall be
dredged sand from nearby sand trap area
INDIAN RUPEES (INR)

Rate
Lumpsum
Lumpsum
Lumpsum
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Amount

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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
Rev 0
Sr.
No
Quantity
Description
INDIAN RUPEES (INR)

Rate
Perform a geotechnical soil investigation along the 260m section of

the pipeline. A minimum of four (4) boreholes, to 30m below
seabed, equidistant along the 260m section shall be made. The tests
shall include as a minimum, sieve analysis, wet and dry densities,
shear strengths, angle of internal friction, and cohesion values as
appropriate. Laboratory tests shall also include triaxial tests. The
report shall be produced by a competent geotechnical consultant,
reporting the recommended geotechnical design parameters for pile
design.
Lifting up the Pipeline to original design levels before it is

permanently supported to relieve the additional stress developed due to
sagging, providing 24 supports for 48 Offshore pipeline as per
INTEC drawing no. 21534102-401-DRW-026 (Two sheets) by piling
including supply of all materials, fabrication/welding of the piles,
connecting beam, supply of work barges/vessels/equipments/ labour/
inspection/ supervision etc, driving of the piles to the required depth,
excavation around the pipeline locally where the supports are to be
installed, installation of connecting beam between the driven piles,
providing clamp support, providing anodes, painting of the
piles/structures etc complete in all respect as per INTEC drawing no.
21534102-401-DRW-026 (Two sheets). The quoted price shall include
the cost of all materials including 24 piles required for the work.
Bidder to note that HPCL will not issue any materials required for the
work and the complete materials required for the work shall be entirely
in the scope of CONTRACTOR. The work shall be executed as per
approved Work Procedures and Inspection Test Plans
Lumpsum
14 Rows
(one row
consisting
of 1 pair
of 24
piles,
connectin
g beam,
clamp,
anode etc)
- 155 of 237 -
Amount

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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
Rev 0
Sr.
No
Description
Quantity
Providing diving support during the execution of work.

CONTRACTOR shall provide under-water inspection of the
installation work by carrying out diver survey of the work. All underwater inspection videos shall be recorded on digital media to be
submitted together with the final as-built documentation.
Service Tax to be charged on above@ %
INDIAN RUPEES (INR)

Rate
Amount
Lumpsum
Total
Notes:
Signature of Bidder
Name & designation
With seal & Date
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Date: 18.12.2010
Rev 0
FORMAT A
(Total Cenvatable Excise Duty and cenvatable CVD amount included in the lumpsum price)
FORMAT B
(CIF Price for Imported Items)
Format A
Input Tax Credit available against Taxes & Duties included in the Lumpsum price and Input tax credit on service tax which
will be charged separately
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Sl.no
Description
Total Cenvatable excise duty in INR
Total Input Tax credit (VAT) in INR
Total Input Tax credit (WCT) in INR
Total Cenvatable CVD in INR, if any
Total Cenvatable Service tax in INR
In Figures
In Words
1.
Cenvatable duty mentioned above shall be furnished for supplies only.
2.
Above Cenvatable duty shall be deducted from the lumpsum price for the purpose of evaluation.
3.
Cenvatable amounts as mentioned above shall be considered as mandatory discount since the same has been taken into consideration for
evaluation and shall be deducted from the RA bills (of supplies) on pro-rata basis. The amount of cenvatable excise duty and cenvatable
CVD shall be reimbursed to contractor on production of all related documents in accordance with the provision of bidding document
subject to ceiling amount mentioned above.
4.
Bidder to consider marine insurance @ 0.1% to arrive at the cenvatable CVD.

Signature:
With seal and date:
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Date: 18.12.2010
Rev 0
Format B
CIF Price for Imported Items
Sl.no
Description
CIF value of Imported materials in

foreign currency
Procurement & other changes in foreign

currency
C&F Value (1)
Insurance (2)
CIF Value (1+2)
1.
Bidder to consider marine insurance @ 0.1% to arrive at the CIF Value.
2.
CIF Value mentioned above shall be used for the purpose of calculation on account of variation in custom duty.
3.
CIF value mentioned in this form shall not include raw materials required by vendor.
4.
C&F value mentioned above shall not be more than total of foreign currency component quoted above.
Signature:
With seal and date:
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INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
SECTION7
CHECKLIST
(To be submitted along with UNPRICED bid (Part-1) of BID document
- 160 of 237 -
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INTEC Doc. No:21534102-501-ITB-021
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Sl No.
Description
Documentary Proof (Owners certificate) specifying the

scope, value & barge/vessel capabilities etc in support of
meeting the Pre-qualification criteria specified in Section 2.
a. 1 Details of Work barge that will be deployed for this
work
2 Whether owned or hired/leased
3 If not owned, whether lease agreement with the owner
of the barge is submitted.
b. 1 Details of Dredgers that will be deployed
for this work
2 Whether owned or hired/leased
3 If not owned, whether lease agreement with the owner
of the barge is submitted.
Bidders bank details
EMD amount/BID fee as specified in BID document
Details of EMD/Bid Fee BG submitted
i)
Value
ii)
Name of Bank
Bid document marked Original along with Addendum(s) /
Corrigendum(s), if any, duly signed and stamped on each
page as token of your acceptance
Letter of submission of Tender
Power of Attorney / Authorisation with the seal of the
company in favor person(s) signing the Bidding
Document/Bid
Exceptions and deviations, as per Annexure 3 of Bid
document
All technical requirements as per Section 3 of BID
documents
Master Schedule with Milestone completion
Project organisation / Management chart at home office /
head office / branch offices with Bio-data indicating
qualifications and experience of key personnels of all
involved disciplines.
Project management methodology adopted for completed
projects
List of various communication ways to be adopted for quick
interaction and implementation
3
4
5
7
8
9
10
11
12
13
14
- 161 of 237 -
Bidders
confirmation
(Yes/No)
Rev 0

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Date: 18.12.2010
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Sl No.
Description
15
Copies of Audited Balance Sheets and Profit & Loss

Account Statements for last three years, showing Annual
Turnover and Financial Status of the Bidder and complete
information about Bidder, duly certified by a Chartered
Accountant in practice for the last five years
Latest and valid Solvency Certificate / Line of Credit from
Bankers
Information about bidder
List of concurrent commitments
List of sub CONTRACTOR(s) and their consent letter(s)
along with their capability documentation including
experience and annual turnover and clearly defining the
involvement / responsibility in this work
Information regarding any current litigation in which the
bidder is involved
Partnership Deed in case of Partnership Firm or
Memorandum and Articles of Association in case of Limited
Company
Tripartite agreement as per, if bidder is quoting along with
an ASSOCIATE
Blank copies of Schedule of Prices as per Forms (Bidder to
note that prices are not to be indicated in the blank
copies of Schedule of Prices or any of the submissions in
Part 1 of the bid.)
Bidders confirmation they have considered all taxes and
duties but not limited to Income Tax, withholding tax,
Service Tax, Customs Duty with Countervaling duty , all
cesses, Excise Duty, Works Contract Tax etc
Bidder agrees to submit Security Deposit as per
CONTRACT within 10 days from date of Fax of Acceptance
Name of the bank and branch from which the BG will be
submitted.
Whether the Bidder is having a place of business in India. If
yes, please provide details.
Bidders registered name and address
Confirm that your offer shall be valid up to 4 months from
the bid due date/extended due date
Whether any of the Directors of Vendor is a relative of any
16
17
18
19
20
21
22
23
24
25
26
27
28
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Bidders
confirmation
(Yes/No)

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Date: 18.12.2010
Rev 0
Sl No.
29
30
31
32
33
34
35
Description
Bidders
confirmation
(Yes/No)
Director of OWNER or the vendor is a firm in which any

Director of OWNER/Consultant or his relative is a Partner or
the vendor is a private company in which any director of
OWNER/Consultant is a member or Director.
Please confirm you have not been banned or delisted by any
Government or Quasi government agencies or PSUs. If you
have been banned or delisted by any Government or Quasi
government agencies or PSUs, then this fact must be clearly
stated. If this declaration is not furnished your bid shall be
treated as non-responsive and liable for rejection.
Confirm acceptance to the attached termination and
arbitration clause
Confirm acceptance of the attached cancellation/Risk
purchase clause
Bidder to comply with Integrity pact and the formats to be
duly executed and submitted. Annexure-X A to be submitted
along with Acknowledgement letter and Annexure-X B to be
submitted along with tender submission. Bidder to note that
this is a mandatory requirement.
Bidder to note that the Grievance redressal mechanism is
available in HPCL website www.hindustanpetroleum.com
Wherever possible, payment shall be tendered to the
contractor in electronic mode (e-payment) through any of the
designated banks. The contractor will comply by furnishing
full particulars of Bank account (mandate) to which the
payments will be routed. Owner reserves the right to make
payment in any alternate mode also.
Whether Integrity Pact (In section 11) filled up and signed
attached
Signature of Bidder
Name & designation
With seal
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Date: 18.12.2010
Rev 0
SECTION 8
ANNEXURES
- 164 of 237 -

SYSTEM
INTEC Doc. No:21534102-501-ITB-021
Date: 18.12.2010
Rev 0
Annexure-1
ACKNOWLEDGEMENT
Dated:
Petroleum House,
Mumbai- 400 020
INDIA
Attention: Mr. P. Wankhade Senior Manager (Materials)
Copy to : Mr. M. Mohan, Project Manager, INTEC Asia Pacific SDN BHD,
Kuala Lumpur, Malaysia
Sub: Request for Quotation for _____________________________
RFQ No.:
Item
Due Date
Dear Sirs,
We are in receipt of above-mentioned BID document along with all enclosures.
a) We confirm that we shall submit our offer to reach you latest by final due date.
b) We regret to offer item against above-mentioned BID document because
_____________ . BID documents are being returned to you shortly.
Thanking you,
Very truly yours,

Name:
Designation:
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Date: 18.12.2010
Rev 0
With seal & stamp

Annexure-2
Undertaking by the Bidder:

We _____________________________________ (Name of the bidder) hereby represent
that we have read and understood the bidding document and that our bid has been prepared
accordingly in compliance with the requirement stipulated in the said document.
We are submitting bidding document Part-1 Techno-Commercial as part of our bid duly
signed and stamped on each page in token of our acceptance. We also undertake that in the
event of our bid being considered for award of work, we shall sign and stamp on each page of
these documents as part of the contract.
SIGNED FOR AND ON BEHALF OF
(NAME OF BIDDER)
Place:___________________
Date:____________________
NOTE: The Bidders representative who is signing the bid should sign this undertaking.
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Date: 18.12.2010
Rev 0
Annexure-3
NAME OF WORK:
NAME OF BIDDER:
FORMAT FOR EXCEMPTIONS AND DEVIATIONS
Bidder is required to comply with the requirements of the Bid Document, and not to stipulate
any exceptions or deviation. In case it is unavoidable, Bidder may stipulate exceptions and
deviations to bid requirements only as per the format below and enclose this with Part I of
bid.
SL.
NO.
BID DOCUMENT PREFERENCE

PAGE
SUBJECT
DEVIATION
CLAUSE
Note: All exceptions/deviations taken by Bidder to the stipulations of the Bid Document
shall be brought out in the techno-commercial bid (and not in the Bid Document or price bid)
as per this format. Any exceptions/deviations brought out elsewhere in the bid shall not be
construed as valid.
Signature of Bidder
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Date: 18.12.2010
Rev 0
Annexure-4
CUT-OUT-SLIP
DO NOT OPEN THIS IS A QUOTATION
Client
: HINDUSTAN PETROLEUM CORPORATION LTD;
Project : SINGLE POINT MOORING SYSTEM PROJECT FOR

VISAKH REFINERY
RFQ No. :
Item
Due Date :
To
Petroleum House,
Mumbai- 400 020
INDIA
Attention: Mr. P. Wankhade, Senior Manager (Materials)
From
(Full Name and address of the Bidder with contact person)
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Date: 18.12.2010
Rev 0
Annexure-5
TERMS OF PAYMENT
Terms of Payment shall be as follows:
A)
i)
15 % of Contract value upon completion of mobilisation at Visakhapatnam

site of all constructional equipments & machinery like survey spread, dredging
spread, work barge, excavators, cranes, equipments etc on a pro-rata basis
mutually agreed between Contractor and HPCL/INTEC and as certified by
INTEC and / or Third party Inspection and Certification Agency appointed by
OWNER and submission of Composite Performance Bank Guarantee (CPBG)
for 10% of PO value towards Performance Bank Guarantee inclusive of
Security Deposit shall be accepted (in lieu of deduction of retention money);
such CPBG shall be valid upto a period of 3 months beyond the expiry of
defect liability period.
ii)
70 % against upon MECHANICAL COMPLETION on a pro-rata basis. The

price breakup as given shall form the basis of payment of progressive bills on
the pro-rata basis to the contractor.
iii)
15 % against Completion of work in all respect and as agreed by

HPCL/INTEC/Third party Inspection and Certification Agency appointed by
OWNER.
Note:
a)
All the payments to the contractor for this job will be made in the
respective currency of the bid.
b)
For the purpose of payment of RA bills, proportionate payment of items at

various stages of execution shall be discussed after award of work and
mutually agreed between Contractor and HPCL/INTEC.
c)
Recoveries like Security Deposit, Mobilisation Advance and Secured

Advance on pro-rata basis as per the respective provision given in GCC
shall be made from the above payment and other items dues from the
contractor.
d)
Any payment received by the contractor from HPCL shall be utilized for
expeditious execution of THIS CONTRACT only.
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B)
Mobilization Advance:
A provision for payment of interest bearing mobilization advance up to 10% (ten
percent) of contract value at an interest rate State Bank of India (SBI) PLR + 0.5%
per annum, either on submission of a separate Bank Guarantee covering
mobilization advance alone or Composite Bank Guarantee covering mobilization
advance and Security Deposit, subject to the condition that the work will be
completed within the contractual completion period. If not, interest at penal rate of
2% above the rate charged by financial institutions/banks shall be charged for the
entire duration of the contract from the date of availing advance.
Such advance shall be paid to the contractor in two installments as under.
-
5% (five percent) of contract value within 15 days of submission of Bank

Guarantee of equivalent amount to cover mobilization advance to be kept
valid up to end of completion period after signing the contract and furnishing
of security deposit for performance of contract.
Balance 5% (five percent) of contract value after completion of barge safety

audit as certified by Third Party Inspection and Certification Agency/PMC,
prior to sail of pipe lay barge from dock yard and on submission of Bank
Guarantee for equivalent amount.
Recovery of mobilization advance paid (along with interest accrued) to the contractor
shall be made from each running account bill (gross value) on a prorata basis.
Balance amount, if any, remaining unrecovered will be deducted in full from the final
bill.
Bank Guarantee towards mobilization advance shall stand reduced
proportionally on monthly basis to the unrecovered amount only.
The MA paid to the contractor shall be used by them only for execution of the subject
work and they shall satisfy HPCL/INTEC in this regard, if required.
All BGs (Towards Bid fee, Mobilization advance, Security deposit etc) shall be from
a scheduled / nationalised commercial bank in India and for non-Indian bidders the
same shall be from an Indian branch of a foreign bank or any nationalized / scheduled
commercial bank in India).
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Annexure-6
LOADING FACTORS
Sl No
1
a)
b)
c)
d)
TERMS OFFERED BY THE

VENDORS
PAYMENT TERMS
90%+10%
More than 90% but upto 95% against BG
More that 95% but upto 100% against BG
Advance payment with balance 10% to be
recovered after receipt of material at site
PRICE LOADING
No Loading
1%
2%
Bank interest at 1.0% per month
for the quoted delivery period
subject to minimum of 1.5% of the
quoted price
e) Advance payment with balance against Calculate as per (1.d) above and
despatch documents
add further 1%
2
PERFORMANCE BANK GUARANTEE
a) 10%
No Loading
b) Other than 10% (indemnity bond not to be To be loaded by percentage by
considered as PBG)
which PBG is short of 10%
3
PRICE REDUCTION DUE TO DELAY
The loading factor shall be calculated as
per the formula
LF = Lx 1 - L1XL2
2
LN X LX
WhereLx Max LD % as per GPC/GCC
LN - Min LD% (LD per week) as
per
GPC/GCC
L1 - Min LD% (LD per week)
agreed by the vendor
L2 - Max LD% agreed by the
vendor
4
PRICE VARIATION
a) Firm price
No Loading
b) In case of increase in price on PVC with Load by percentage offered
ceiling specified
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c) No formula specified
1.5 times the maximum increase in

price specified by others vendors.
In case all other vendors quoted
firm price, then @ 1.0% for every
month of quoted delivery period to
be taken as loading for price
increase.
d) No formula and no ceiling on price Offer to be rejected provided other
increase specified by the vendor
technically acceptable offers are
available.
(SIGNATURE OF THE BIDDER)
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SECTION 9
TECHNICAL DOCUMENT
(Attachment)
LONG TERM REMEDIAL WORK PROPOSED
FOR HPCL SUBSEA PIPELINE AT THE SAND TRAP
AREA
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Rev 0
SECTION 10
GENERAL CONDITIONS OF CONTRACT (GCC)
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Date: 18.12.2010
Rev 0
(SPECIMEN)
GENERAL TERMS & CONDITIONS OF WORKS CONTRACT
1 PRELIMINARY
1.1 This is a Contract for execution of __________________ work
at_______________________. (please fill up the blanks)
1.2 The tenderer for the abovementioned item of work is____________________________.
(please give the name and address of the tenderer)
1.3 The terms and conditions mentioned hereunder are the terms and conditions of the
Contract for the execution of the work mentioned under item 1.1 above.
1.4 It is the clear understanding between Hindustan Petroleum Corporation Limited and the
tenderer ______________________________________ that (name and address of the
tenderer)
in
case
the
tender
of
______________________________________________________________ is
(name and address of the tenderer) accepted by Hindustan
Petroleum Corporation Limited and an intimation to that effect is so issued and
also
a
Purchase
Order
is
placed
with________________________________________________________
(name and address of the tenderer) this document will be termed as a Contract between the
parties and terms and conditions hereunder would govern the parties interest.
1.5 Interpretation of Contract Documents: All documents forming part of the Contract are to
be taken mutually explanatory. Should there be any discrepancy, inconsistency, error or
omission in the contract, the decision of the Owner/Engineer-in-Charge/Site-in-Charge shall
be the final and the contractor shall abide by the decision. The decision shall not be
arbitrable. Works shown upon the drawings but not mentioned in the specification or
described in the specifications without being shown on the drawings shall nevertheless be
deemed to be included in the same manner as if they are shown in the drawings and described
in the specifications.
1.6 Special conditions of Contract : The special conditions of contract, if any provided and
whenever and wherever referred to shall be read in conjunction with General Terms and
Conditions of contract, specifications, drawings, and any other documents forming part of
this contract wherever the context so requires. Notwithstanding the subdivision of the
documents into separate sections, parts volumes, every section, part or volume shall be
deemed to be supplementary or complementary to each other and shall be read in whole. In
case of any misunderstanding arising the same shall be referred to decision of the Owner/
Engineer-in-Charge/Site-in-Charge and their decision shall be final and binding and the
decision shall not be arbitrable. It is the clear understanding that wherever it is mentioned that
the Contractor shall do/perform a work and/or provide facilities for the performance of the
work, the doing or the performance or the providing of the facilities is at the cost and
expenses of the work not liable to be paid or reimbursed by the Owner.
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2. DEFINITIONS
In this contract unless otherwise specifically provided or defined and unless a contrary
intention appears from the contract the following words and expressions are used in the
following meanings;
2.1 The term "Agreement" wherever appearing in this document shall be read as "Contract".
2.2 The "Authority" for the purpose of this Contract shall be the Chairman and Managing
Director or any other person so appointed or authorised.
2.3 The "Chairman and Managing Director" shall mean the Chairman and Managing
Director of HINDUSTAN PETROLEUM CORPORATION LIMITED or any person so
appointed, nominated or designated and holding the office of Chairman & Managing
Director.
2.4 The "Change Order" means an order given in writing by the Engineer-in-Charge or by
Owner to effect additions to or deletion from or alterations into the Work.
2.5 The "Construction Equipment" means all appliances and equipment of whatsoever
nature for the use in or for the execution, completion, operation or maintenance of the work
except those intended to form part of the Permanent Work.
2.6 The "Contract" between the Owner and the Contractor shall mean and include all
documents like enquiry, tender submitted by the contractor and the purchase order issued by
the owner and other documents connected with the issue of the purchase order and orders,
instruction, drawings, change orders, directions issued by the Owner/Engineer-inCharge/Site-in-Charge for the execution, completion and commissioning of the works and the
period of contract mentioned in the Contract including such periods of time extensions as
may be granted by the owner at the request of the contractor and such period of time for
which the work is continued by the contractor for purposes of completion of the work.
2.7 "The Contractor" means the person or the persons, firm or Company whose tender has
been accepted by the Owner and includes the Contractor's legal heirs, representative,
successor(s) and permitted assignees.
2.8 The "Drawings" shall include maps, plans and tracings or prints thereof with any
modifications approved in writing by the Engineer-in-Charge and such other drawings as
may, from time to time, be furnished or approved in writing by the Engineer-in-Charge.
2.9 The "Engineer-in-Charge or Site-in-Charge" shall mean the person appointed or
designated as such by the Owner and shall include those who are expressly authorized by the
owner to act for and on its behalf.
2.10 "The Owner" means the HINDUSTAN PETROLEUM CORPORATION LIMITED
incorporated in India having its Registered office at PETROLEUM HOUSE, 17,
JAMSHEDJI TATA ROAD, BOMBAY - 400020 and Marketing office at
____________________________________________ or their successors or assignees.
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2.11 The "Permanent Work" means and includes works which form a part of the work to be
handed over to the Owner by the Contractor on completion of the contract.
2.12 The "Project Manager" shall mean the Project Manager of HINDUSTAN
PETROLEUM CORPORATION LIMITED, or any person so appointed, nominated or
designated.
2.13 The "Site" means the land on which the work is to be executed or carried out and such
other place(s) for purpose of performing the Contract.
2.14 The "Specifications" shall mean the various technical and other specifications attached
and referred to in the tender documents. It shall also include the latest editions, including all
addenda/corrigenda or relevant Indian Standard Specifications and Bureau Of Indian
Standards.
2.15 The "Sub-Contractor" means any person or firm or Company (other than the Contractor)
to whom any part of the work has been entrusted by the Contractor with the prior written
consent of the Owner/Engineer-in-Charge/Site-in- Charge and their legal heirs,
representatives, successors and permitted assignees of such person, firm or Company.
2.16 The "Temporary Work" means and includes all such works which are a part of the
contract for execution of the permanent work but does not form part of the permanent work
confirming to practices, procedures applicable rules and regulations relevant in that behalf.
2.17 The "Tender" means the document submitted by a person or authority for carrying out
the work and the Tenderer means a person or authority who submits the tender offering to
carry out the work as per the terms and conditions.
2.18 The "Work" shall mean the works to be executed in accordance with the Contract or part
thereof as the case may be and shall include extra, additional, altered or substituted works as
maybe required for the purposes of completion of the work contemplated under the Contract.
3. SUBMISSION OF TENDER
3.1 Before submitting the Tender, the Tenderer shall at their own cost and expenses visit the
site, examine and satisfy as to the nature of the existing roads, means of communications, the
character of the soil, state of land and of the excavations, the correct dimensions of the work
facilities for procuring various construction and other material and their availability, and shall
obtain information on all matters and conditions as they may feel necessary for the execution
of the works as intended by the Owners and shall also satisfy of the availability of suitable
water for construction of civil works and for drinking purpose and power required for
fabrication work etc. Tenderer, whose tender may be accepted and with whom the Contract is
entered into shall not be eligible and be able to make any claim on any of the said counts in
what so ever manner for what so ever reasons at any point of time and such a claim shall not
be raised as a dispute and shall not be arbitrable.
A pre-bid meeting may be held as per the schedule mentioned in the tender.
3.2 The Tenderer shall be deemed to have satisfied fully before tendering as to the
correctness and sufficiency of his tender for the works and of the rates and prices quoted in
the schedule of quantities which rates and prices shall except as otherwise provided cover all
his obligations under the contract.
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3.3 It must be clearly understood that the whole of the conditions and specifications are
intended to be strictly enforced and that no work will be considered as extra work and
allowed and paid for unless they are clearly outside the scope, spirit, meaning of the Contract
and intent of the Owner and have been so ordered in writing by Owner and/or Engineer-inCharge/Site-in-Charge, whose decision shall be final and binding.
3.4 Before filling the Tender the Contractor will check and satisfy all drawings and materials
to be procured and the schedule of quantities by obtaining clarification from the Owner on all
the items as may be desired by the Tenderer. No claim for any alleged loss or compensation
will be entertained on this account, after submission of Tender by the Tenderer/Contractor
and such a claim shall not be arbitrable.
3.5 Unless specifically provided for in the tender documents or any Special Conditions,
no escalation in the Tender rates or prices quoted will be permitted throughout the
period of contract or the period of actual completion of the job whichever is later on
account of any variation in prices of materials or cost of labour or due to any other
reasons. Claims on account of escalation shall not be arbitrable.
3.6 The quantities indicated in the Tender are approximate. The approved schedule of rates of
the contract will be applicable for variations upto plus or minus 25% of the contract value.
No revision of schedule of rates will be permitted for such variations in the contract value,
including variations of individual quantities, addition of new items, alterations,
additions/deletions or substitutions of items, as mentioned above.
Quantities etc. mentioned and accepted in the joint measurement sheets shall alone
be final and binding on the parties.
3.7 Owner reserve their right to award the contract to any tenderer and their decision in this
regard shall be final. They also reserve their right to reject any or all tenders received. No
disputes could be raised by any tenderer(s) whose tender has been rejected.
3.8 The Rates quoted by the Tenderer shall include Costs and expenses on all counts viz. cost
of materials, transportation of machine(s), tools, equipments, labour, power, Administration
charges, price escalations, profits, etc. etc. except to the extent of the cost of material(s), if
any, agreed to be supplied by Owner and mentioned specifically in that regard in condition of
Contract, in which case, the cost of such material if taken for preparation of the Contractor's
Bill(s) shall be deducted before making payment of the Bill(s) of the Contractor. The
description given in the schedule of quantities shall unless otherwise stated be held to include
wastage on materials, carriage and cartage, carrying in and return of empties, hoisting,
setting, fitting and fixing in position and all other expenses necessary in and for the full and
complete execution and completion of works and in accordance with good practice and
recognised principles in that regard.
3.9 Employees of the State and Central Govt. and employees of the Public Sector
Undertakings, including retired employees are covered under their respective service
conditions /rules in regard to their submitting the tender. All such persons should ensure
compliance to the respective/applicable conditions, rules etc. etc. Any person not complying
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with those rules etc. but submitting the tender in violation of such rules, after being so noticed
shall be liable for the forfeiture of the Earnest
Money Deposit made with the tender, termination of Contract and sufferance on account of
forfeiture of Security Deposit and sufferance of damages arising as a result of termination of
Contract.
3.10 In consideration for having a chance to be considered for entering into a contract
with the Owner, the Tenderer agrees that the Tender submitted by him shall remain
valid for the period prescribed in the tender conditions, from the date of opening of the
tender. The Tenderer shall not be entitled during the said validity period, to revoke or
cancel the tender without the consent in writing from the Owner.
In case the tenderer revokes or cancels the tender or varies any of terms of the tender without
the Consent of the Owner, in writing, the Tenderer forfeits the right to the refund of the
Earnest Money paid along with the tender.
3.11 The prices quoted by the Tenderer shall be firm during the validity period of the
bid and Tenderer agrees to keep the bid alive and valid during the said period. The
Tenderers shall particularly take note of this factor before submitting their
tender (s).
3.12 The works shall be carried out strictly as per approved specifications. Deviations, if any,
shall have to be authorised by the Engineer-in-Charge/Site-in-Charge in writing prior to
implementing deviations. The price benefit, if any, arising out of the accepted deviation shall
be passed on to the Owner. The decision of Engineer-in-Charge shall be final in this matter.
3.13 The contractor shall make all arrangements at his own cost to transport the required
materials outside and inside the working places and leaving the premises in a neat and tidy
condition after completion of the job to the satisfaction of Owner. All materials except those
agreed to be supplied by the Owner shall be supplied by the contractor at his own cost and the
rates quoted by the Contractor should be inclusive of all royalties, rents, taxes, duties, octroi,
statutory levies, if any, etc. etc.
3.14 The Contractor shall not carry on any work other than the work under this Contract
within the Owners premises without prior permission in writing from the
Engineer-in-Charge/ Site-in-charge.
3.15 The Contractor shall be bound to follow and ensure compliance to all the safety and
security regulations and other statutory rules applicable to the area. In the event of any
damage or loss or sufference caused due to non-observance of such rules and
regulations, the contractor shall be solely responsible for the same and shall keep the
Owner indemnified against all such losses and claims arising from the same.
3.16 At any time after acceptance of tender, the Owner reserves the right to add, amend or
delete any work item, the bill of quantities at a later date or reduce the scope of work in the
overall interest of the work by prior discussion and intimation to the Contractor. The decision
of Owner, with reasons recorded therefor, shall be final and binding on both the Owner and
the Contractor. The Contractor shall not have right to claim compensation or damage etc. in
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that regard. The Owner reserves the right to split the work under this contract between two or
more contractors without assigning any reasons.
3.17 Contractor shall not be entitled to sublet, sub contract or assign, the work under this
Contract without the prior consent of the Owner obtained in writing.
3.18 All signatures in tender document shall be dated as well as all the pages of all sections of
the tender documents shall be initialled at the lower position and signed,
wherever required in the tender papers by the Tenderer or by a person holding Power of
Attorney authorising him to sign on behalf of the tenderer before submission of tender.
3.19 The tender should be quoted in English, both in figures as well as in words. The rates
and amounts tendered by the Tenderer in the Schedule of rates for each item and in such a
way that insertion is not possible. The total tendered amount should also be indicated both in
figures and words with the signature of tenderer.
If some discrepancies are found between the rates given in words and figures of the
amount shown in the tender, the following procedure shall be applied :
(a) When there is a difference between the rates in figures and words, the rate which
corresponds to the amount worked out by the tenderer shall be taken as correct.
(b) When the rate quoted by the tenderer in figures and words tallies but the amount is
incorrect, the rate quoted by the tenderer shall be taken as correct.
(c) When it is not possible to ascertain the correct rate in the manner prescribed above
the rate as quoted in words shall be adopted.
3.20 All corrections and alterations in the entries of tender paper will be signed in full by the
tenderer with date. No erasures or over writings are permissible.
3.21 Transfer of tender document by one intending tenderer to the another one is not
permissible. The tenderer on whose name the tender has been sent only can quote.
3.22 The Tender submitted by a tenderer if found to be incomplete in any or all manner is
liable to be rejected. The decision of the Owner in this regard is final and binding. In case of
any error/discrepancy in the amount written in words and figures, the lower amount between
the two shall prevail.
4. DEPOSITS
a) EARNEST MONEY DEPOSIT (EMD)
The tenderer will be required to pay a sum as specified in the covering letter, as earnest
money deposit alongwith the tender either thru a crossed demand draft or a non-revokable
Bank Guarantee in favour of Hindustan Petroleum Corporation Limited, from any Scheduled
Bank (other than a Co-Operative Bank) payable at Mumbai in favour of Hindustan Petroleum
Corporation Limited, Mumbai in the proforma enclosed. The earnest money deposit will be
refunded after finalisation of the contract.
Note: Public sector enterprises and small scale units registered with National
Small Scale Industries are exempted from payment of Earnest Money Deposit. Small scale
units registered with National Small Scale Industries should enclose a photocopy of their
registration certificate with their quotation to make their quotation eligible for consideration.
The Registration Certificate should remain valid during the period of the contract that may be
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entered into with such successful bidder. Such tenderers should ensure validity of the
Registration Certificate for the purpose.
b) SECURITY DEPOSIT:
The tenderer, with whom the contract is decided to be entered into and intimation is so given
will have to make a security deposit of one percent (1%) of the total contract value in the
form of account payee crossed demand draft drawn in favour of the Owner, within 15 days
from the date of intimation of acceptance of their tender, failing which the Owner reserves
the right to cancel the Contract and forfeit the EMD.
1% of PO/Contract value as Security deposit will be acceptable in the form of Demand
draft upto Rs. 50,000/- and in the form of Demand draft / Bank guarantee beyond Rs.
50,000/-.
Composite Performance Bank Guarantee (CPBG) for 10% of PO value towards
Performance Bank Guarantee inclusive of Security Deposit shall be accepted (in lieu of
deduction of retention money); such CPBG shall be valid upto a period of 3 months
beyond the expiry of defect liability period. Demand Draft should be drawn on
Scheduled Banks, other than co-operative bank.
5. EXECUTION OF WORK
All the works shall be executed in strict conformity with the provisions of the contract
documents and with such explanatory details, drawings, specifications and instructions as
may be furnished from time to time to the Contractor by the Engineer-in-Charge/ Site-inCharge, whether mentioned in the Contract or not. The Contractor shall be responsible for
ensuring that works throughout are executed in the most proper and workman- like manner
with the quality of material and workmanship in strict accordance with the specifications and
to the entire satisfaction of the Engineer-in- Charge/Site-in-Charge.
The completion of work may entail working in monsoon also. The contractor must maintain
the necessary work force as may be required during monsoon and plan to execute the job in
such a way the entire project is completed within the contracted time schedule. No extra
charges shall be payable for such work during monsoon. It shall be the responsibility of the
contractor to keep the construction work site free from water during and off the monsoon
period at his own cost and expenses.
For working on Sundays/Holidays, the contractor shall obtain the necessary permission from
Engineer Incharge/Site Incharge in advance. The contractor shall be permitted to work
beyond the normal hours with prior approval of Engineer-In-Charge/Site-In-Charge and the
contractors quoted rate is inclusive of all such extended hours of working and no extra
amount shall be payable by the owner on this account.
5.a. SETTING OUT OF WORKS AND SITE INSTRUCTIONS
5.a.1. The Engineer-in-Charge/Site-in-Charge shall furnish the Contractor with only the four
corners of the work site and a level bench mark and the Contractor shall set out the works and
shall provide an efficient staff for the purpose and shall be solely responsible for the accuracy
of such setting out.
5.a.2. The Contractor shall provide, fix and be responsible for the maintenance of all
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necessary stakes, templates, level marks, profiles and other similar things and shall take all
necessary precautions to prevent their removal or disturbance and shall be responsible for
consequences of such removal or disturbance should the same take place and for their
efficient and timely reinstatement. The Contractor shall also be responsible for the
maintenance of all existing survey marks, either existing or supplied and fixed by the
Contractor. The work shall be set out to the satisfaction of the Engineer-in-Charge/Site-inCharge. The approval thereof or joining in setting out the work shall not relieve the
Contractor of his responsibility.
5.a.3. Before beginning the works, the Contractor shall, at his own cost, provide all necessary
reference and level posts, pegs, bamboos, flags ranging rods, strings and other materials for
proper layout of the work in accordance with the scheme, for bearing marks acceptable to the
Engineer-in-Charge/Site-in-Charge. The Centre longitudinal or face lines and cross lines shall
be marked by means of small masonary pillars. Each pillar shall have distinct marks at the
centre to enable theodolite to be set over it. No work shall be started until all these points are
checked and approved by the Engineer-in-Charge/Site-in-Charge in writing. But such
approval shall not relieve the contractor of any of his responsibilities. The Contractor shall
also provide all labour, materials and other facilities, as necessary, for the proper checking of
layout and inspection of the points during construction.
5.a.4. Pillars bearing geodetic marks located at the sites of units of works under construction
should be protected and fenced by the Contractor.
5.a.5. On completion of works, the contractor shall submit the geodetic documents according
to which the work was carried out.
5.a.6. The Engineer-in-Charge/Site-in-Charge shall communicate or confirm his instructions
to the contractor in respect of the executions of work in a "work site order book" maintained
in the office having duplicate sheet and the authorised representative of the contractor shall
confirm receipt of such instructions by signing the relevant entries in the book.
5.a.7. All instructions issued by the Engineer-in-Charge/Site-in-Charge shall be in writing.
The Contractor shall be liable to carry out the instructions without fail.
5.a.8. If the Contractor after receipt of written instruction from the Engineer-in-Charge/
Site-in-Charge requiring compliance within seven days fails to comply with such drawings or
'instructions' or both as the Engineer-in-Charge/Site-in-Charge may issue, owner may employ
and pay other persons to execute any such work whatsoever that may be necessary to give
effect to such drawings or `instructions' and all cost and expenses incurred in connection
therewith as certified by the Engineer-in-Charge/
Site-in-Charge shall be borne by the contractor or may be deducted from amounts due or that
may become due to the contractor under the contract or may be recovered as a debt.
5.a.9. The Contractor shall be entirely and exclusively responsible for the horizontal and
vertical alignment, the levels and correctness of every part of the work and shall rectify
effectually any errors or imperfections therein. Such rectifications shall be carried out by the
Contractor, at his own cost.
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5.a.10. In case any doubts arise in the mind of the Contractor in regard to any expressions,
interpretations, statements, calculations of quantities, supply of material rates, etc. etc., the
contractor shall refer the same to the Site-in-Charge/ Engineer-in-Charge for his clarification,
instructions, guidance or clearing of doubts. The decision of the Engineer-in-Charge/Site-inCharge shall be final and the contractor shall be bound by such a decision.
5.a.11. "The Contractor shall take adequate precautions, to ensure that his operations do not
create nuisance or misuse of the work space that shall cause unnecessary disturbance or
inconvenience to others at the work site".
5.a.12. "All fossils, coins articles of value of antiquity and structure or other remains of
geological or archaeological discovered on the site of works shall be declared to be the
property of the Owner and Contractor shall take reasonable precautions to prevent his
workmen or any other persons from removing or damaging any such articles or thing and
shall immediately inform the Owner/ Engineer-in-Charge/Site-in-Charge."
5.a.13. "Contractor will be entirely and exclusively responsible to provide and maintain at his
expenses all lights, guards, fencing, etc. when and where even necessary or/as required by the
Engineer-in-Charge/Site-in-Charge for the protection of works or safety and convenience to
all the members employed at the site or general public."
5.b. COMMENCEMENT OF WORK
The contractor shall after paying the requisite security deposit, commence work within 15
days from the date of receipt of the intimation of intent from the Owner informing that the
contract is being awarded. The date of intimation shall be the date/day for counting the
starting day/date and the ending day/date will be accordingly calculated. Penalty, if any, for
the delay in execution shall be calculated accordingly. Contractor should prepare detailed
fortnightly construction programme for approval by the Engineer-in-Charge within one
month of receipt of Letter Of Intent. The work shall be executed strictly as per such time
schedule. The period of Contract includes the time required for testing, rectifications, if any,
re-testing and completion of work in all respects to the entire satisfaction of the Engineer-inCharge.
A Letter of Intent is an acceptance of offer by the Owner and it need not be accepted by the
contractor. But the contractor should acknowledge a receipt of the purchase order within 15
days of mailing of Purchase Order and any delay in acknowledging the receipt will be a
breach of contract and compensation for the loss caused by such breach will be recovered by
the Owner by forfeiting earnest money deposit/bid bond.
5.c. SUBLETTING OF WORK
5.c.1. No part of the contract nor any share or interest thereof shall in any manner or
degree be transferred, assigned or sublet, by the Contractor, directly or indirectly to any firm
or corporation whatsoever, without the prior consent in writing of the Owner.
5.c.2. At the commencement of every month the Contractor shall furnish to the
Engineer-in-charge/Site-in-Charge list of all sub-contractors or other persons or firms
engaged by the Contractor.
5.c.3 The contract agreement will specify major items of supply or services for which the
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Contractor proposes to engage sub-Contractor/sub-Vendor. The contractor may from time to

time propose any addition or deletion from any such list and will submit the
proposals in this regard to the Engineer-in-charge/Designated officer-in-charge for
approval well in advance so as not to impede the progress of work. Such approval of the
Engineer-in-charge/Designated officer-in-charge will not relieve the contractor from any of
his obligations, duties and responsibilities under the contract.
5.c.4. Notwithstanding any sub-letting with such approval as resaid and notwithstanding
that the Engineer-in-Charge shall have received copies of any sub-contract, the
Contractor shall be and shall remain solely to be responsible for the quality and proper and
expeditious execution of the works and the performance of all the conditions of the contract
in all respects as if such subletting or sub-contracting had not taken place and as if such work
had been done directly by the Contractor.
5.c.5 Prior approval in writing of the Owner shall be obtained before any change is made in
the constitution of the contractor/Contracting agency otherwise contract shall be deemed to
have been allotted in contravention of clause entitled sub-letting of works and the same
action may be taken and the same consequence shall ensue as provided in the clause of subletting of works.
5.d EXTENSION OF TIME
1) If the Contractor anticipates that he will not be able to complete the work within the
contractual delivery/ completion date (CDD), then the Contractor shall make a request
for grant of time extension clearly specifying the reasons for which he seeks extension of
time and demonstrating as to how these reasons were beyond the control of the
contractor or attributable to the Owner. This request should be made well before the
expiry of the Contractual Delivery/ Completion Date (CDD).
2) If such a request for extension is received with a Bank Guarantee for the full
Liquidated Damages amount calculated on the Total Contract Value, the concerned
General Manager of the Owner shall grant a Provisional extension of time, pending a
decision on the request.
3) The concerned General Manager of the Owner shall expeditiously decide upon the
request for time extension and decide the levy of liquidated damages within a maximum
period of 6 months fom the CDD or date of receipt of the request, whichever is later.
4) Grant of any extension of time shall be by means of issuance of a Change Order.
5) In order to avoid any cash crunch to the Contractor, a Bank Guarantee could be
accepted against LD, as stated above. Once a decision is taken, the LD shall be
recovered from any pending bills or by encashment of the BG. Any balance sum of
Contractor or the BG (if LD is fully recovered from the bills) shall be promptly
refunded/returned to the Contractor.
5.e. SUSPENSION OF WORKS
5.e.1. Subject to the provisions of this contract, the contractor shall if ordered in writing by
the Engineer- in-Charge/Site-in-Charge for reasons recorded suspend the works or any part
thereof for such period and such time so ordered and shall not, after receiving such, proceed
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with the work therein ordered to uspended until he shall have received a written order to restart. The Contractor shall be entitled to claim extension of time for that period of time the
work was ordered to be suspended. Neither the Owner nor the Contractor shall be entitled to
claim compensation or damages on account of such an extension of time.
5.e.2. In case of suspension of entire work, ordered in writing by
Engineer-in-Charge/Site-in-Charge, for a period of 30 days, the Owner shall have the option
to terminate the Contract as provided under the clause for termination.
The Contractor shall not be at liberty to remove from the site of the works any plant or
materials belonging to him and the Employer shall have lien upon all such plant and
materials.
5.e.3. The contract shall, in case of suspension have the right to raise a dispute and have the
same arbitrated but however, shall not have the right to have the work stopped from further
progress and completion either by the owner or through other contractor appointed by the
owner.
5.f. OWNER MAY DO PART OF WORK
Not withstanding anything contained elsewhere in this contract, the owner upon failure of the
Contractor to comply with any instructions given in accordance with the provisions of this
contract, may instead of Contract and undertaking charge of entire work, place additional
labour force, tools, equipment and materials on such parts of the work, as the Owner may
decide or engage another Contractor to carryout the balance of work. In such cases, the
Owner shall have the right to deduct from the amounts payable to the Contractor the
difference in cost of such work and materials with ten percent overhead added to cover all
departmental charges. Should the total amount thereof exceed the amount due to the
contractor, the Contractor shall pay the difference to the Owner within 15 days of making
demand for payment failing which the Contractor shall be liable to pay interest at 24% p.a. on
such amounts till the date of payment.
5.g. INSPECTION OF WORKS
5.g.1. The Engineer-in-Charge/Site-in-Charge and Officers from Central or State
Government will have full power and authority to inspect the works at any time wherever in
progress, either on the site or at the Contractor's premises/workshops of any person, firm or
corporation where work in connection with the contract may be in hand or where the
materials are being or are to be supplied, and the Contractor shall afford or procure for the
Engineer-in-Charge/Site-in-Charge every facility and assistance to carryout such inspection.
The Contractor shall, at all times during the usual working hours and at all other times at
which reasonable notice of the intention of the Engineer-in-Charge/Site-in-Charge or his
representative to visit the works shall have been given to the Contractor, either himself be
present to receive orders and instructions, or have a responsible agent, duly accredited in
writing, present for the purpose. Orders given to the Contractor's agent shall be considered to
have the same force as if they had been given to the Contractor himself. The Contractor shall
give not less than seven days notice in writing to the Engineer-in-Charge/Site-in-Charge
before covering up or otherwise placing beyond reach of inspection and measurement any
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work in order that the same may be inspected and measured. In the event of breach of above,
the same shall be uncovered at Contractor's expense for carrying out such measurement
and/or
inspection.
5.g.2. No material shall be removed and despatched by the Contractor from the site without
the prior approval in writing of the Engineer-in-charge. The contractor is to provide at all
times during the progress of the work and the maintenance period proper means of access
with ladders, gangways, etc. and the necessary attendance to move and adapt as directed for
inspection or measurements of the works by the Engineer-in-Charge/Site-in-Charge.
5.h. SAMPLES
5.h.1. The contractor shall furnish to the Engineer-in-charge/Site-in-Charge for approval
when requested or required adequate samples of all materials and finishes to be used in the
work.
5.h.2. Samples shall be furnished by the Contractor sufficiently in advance and before
commencement of the work so as the Owner can carry out tests and examinations thereof and
approve or reject the samples for use in the works. All material samples furnished and finally
used/applied in actual work shall fully be of the same quality of the approved samples.
5.i. TESTS FOR QUALITY OF WORK
5.i.1. All workmanship shall be of the respective kinds described in the contract documents
and in accordance with the instructions of the Engineer-in-Charge /
Site-in- Charge and shall be subjected from time to time to such tests at Contractor's cost as
the Engineer-in-Charge/Site-in-Charge may direct at the place of manufacture or fabrication
or on the site or at all or any such places. The Contractor shall provide assistance,
instruments, labour and materials as are normally required for examining, measuring and
testing any workmanship as may be selected and required by the Engineer-in-Charge/Site-inCharge.
5.i.2. All the tests that will be necessary in connection with the execution of the work as
decided by the Engineer-incharge/Site-in-Charge shall be carried out at the contractors cost
and expenses.
5.i.3. If any tests are required to be carried out in connection with the work or materials or
workmanship to be supplied by the owner, such tests shall be carried out by the Contractor as
per instructions of Engineer-in-Charge/Site-in-Charge and expenses for such tests, if any,
incurred by the contractor shall be reimbursed by the Owner. The contractor should file his
claim with the owner within 15 (fifteen) days of inspection/test and any claim made beyond
that period shall lapse and be not payable.
5.j. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS, DESIGNS
AND WORKS
5.j.1. The Engineer-in-Charge/Site-in-Charge shall have powers to make any alterations,
additions and/or substitutions to the schedule of quantities, the original specifications,
drawings, designs and instructions that may become necessary or advisable or during the
progress of the work and the Contractor shall be bound to carryout such altered/extra/new
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items of work in accordance with instructions which may be given to him in writing signed
by the Engineer-in-Charge/Site- in-Charge. Such alterations, omissions, additions or
substitutions shall not invalidate the contract. The altered, additional or substituted work
which the Contractor may be directed to carryon in the
manner as part of the work shall be carried out by the Contractor on the same conditions in all
respects on which he has agreed to do the work. The time for completion of such altered
added and/or substituted work may be extended for that part of the particular job. The rates
for such additional altered or substituted work under this Clause shall, be worked out in
accordance with the following provisions:
5.j.2. If the rates for the additional, altered or substituted work are specified in the contract for
similar class of work, the Contractor is bound to carryout the additional,
altered or substituted work at the same rates as are specified in the contract.
5.j.3. If the rates for the additional, altered or substituted work are not specifically provided in
the contract for the work, the rates will be derived from the rates for similar class of work as
are specified in the contract for the work. In the opinion of the Engineer-in- Charge/Site-inCharge as to whether or not the rates can be reasonably so derived from the items in this
contract, will be final and binding on the Contractor.
5.j.4. If the rates for the altered, additional or substituted work cannot be determined in the
manner specified above, then the Contractor shall, within seven days of the date of
receipt of order to carry out the work, inform the Engineer-in-Charge/ Site-in-Charge of the
rate at which he intends to charge for such class of work, supported by analysis of the rate or
rates claimed and the Engineer-In-Charge/ Site-in-Charge shall determine the rates on the
basis of the prevailing market rates for both material and labour plus 10% to cover overhead
and profit of labour rates and pay the Contractor accordingly. The opinion of the Engineer-inCharge/Site-in-Charge as to current market rates of materials and the quantum of labour
involved per unit of measurement will be final and binding on the contractor.
5.j.5. The quantities indicated in the Tender are approximate. The approved schedule of
rates of the contract will be applicable for variations of upto +25% of the estimated contract
value. No revision of schedule of rates will be permitted for such variations in the contract
value, even for variations of individual quantities, addition of new items, alterations,
additions/deletions or substitutions of items, as mentioned above.
(Already covered under Clause No. 3.6)

5.j.6. In case of any item of work for which there is no specification supplied by the
Owner and is mentioned in the tender documents, such work shall be carried out in
accordance with Indian Standard Specifications and if the Indian Standard
Specifications do not cover the same, the work should be carried out as per standard
Engineering Practice subject to the approval of the Engineer-in-Charge/ Site-in-Charge.
5.k. PROVISIONAL ACCEPTANCE
Acceptance of sections of the works for purposes of equipment erection, piping, electrical
work and similar usages by the Owner and payment for such work or parts of work shall not
constitute a waiver of any portion of this contract and shall not be construed so as to prevent
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the Engineer from requiring replacement of defective work that may become apparent after
the said acceptance and also shall not absolve the Contractor of the obligations under this
contract. It is made clear that such an acceptance does not indicate or denote or establish to
the fact of execution of that work or the Contract until the work is completed in full in
accordance with the provisions of this Contract.
5.l. COMPLETION OF WORK AND COMPLETION CERTIFICATE
As soon as the work is completed in all respects, the contractor shall give notice of such
completion to the site in charge or the Owner and within thirty days of receipt of such notice
the site in charge shall inspect the work and shall furnish the contractor with a certificate of
completion indicating:
a) defects, if any, to be rectified by the contractor
b) items, if any, for which payment shall be made in reduced rates
c) the date of completion.
5.m. USE OF MATERIALS AND RETURN OF SURPLUS MATERIALS
5.m.1. Notwithstanding anything contained to the contrary in any or all of the clauses of this
contract, where any materials for the execution of the contract are procured with the
assistance of Government either by issue from Government stocks or purchase made under
orders or permits or licences issued by Government, the contractor shall use the said
materials economically and solely for the purpose of the contract and shall not dispose them
of without the permission of the Owner.
5.m.2. All surplus(serviceable) or unserviceable materials that may be left over after the
completion of the contract or at its termination for any reason whatsoever, the
Contractor shall deliver the said product to the Owner without any demur. The price to be
paid to the Contractor, if not already paid either in full or in part, however, shall not exceed
the amount mentioned in the Schedule of Rates for such material and in cases where such
rates are not so mentioned, shall not exceed the CPWD scheduled rates. In the event of
breach of the aforesaid condition the contractor shall become liable for contravention of the
terms of the Contract.
5.m.3. The surplus (serviceable) and unserviceable products shall be determined by joint
measurement. In case where joint measurement has failed to take place, the Owner may
measure the same and determine the quantity.
5.m.4. It is made clear that the Owner shall not be liable to take stock and keep possession
and pay for the surplus and unserviceable stocks and the Owner may direct the Contractor to
take back such material brought by the Contractor and becoming surplus and which the
Owner may decide to keep and not to pay for the same.
5.n. DEFECT LIABILITY PERIOD
The contractor shall guarantee the work executed for a period of 12 months from the date of
completion of the job. Any damage or defect that may arise or lie undiscovered at the time of
completion of the job shall be rectified or replaced by the contractor at his own cost. The
decision of the Engineer In-charge/Site-Incharge/Owner shall be the final in deciding whether
the defect has to be rectified or replaced. Equipment or spare parts replaced under
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warranty/guarantees shall have further warranty for a mutually agreed period from the date of
acceptance. The owner shall intimate the defects noticed in writing by a Registered A.D.
letter or otherwise and the contractor within 15 days of receipt of the intimation shall start the
rectification work and complete within the time specified by the owner failing which the
owner will get the defects rectified by themselves or by any other contractor and the expenses
incurred in getting the same done shall be paid by the Contractor under the provision of the
Contract. Thus, defect liability is applicable only in case of job/works contract (civil,
mechanical, electrical, maintenance etc. ) where any damage of defect may arise in future (i.e.
within 12 months from the date of completion of job) or lie undiscovered at the time of
completion of job. In other words, in case of service contracts (like car hire etc.) where there
is no
question of damage or defect arising in future, the defect liability clause is not applicable.
5.o. DAMAGE TO PROPERTY
5.o.1. Contractor shall be responsible for making good to the satisfaction of the Owner any
loss of and any damage to all structures and properties belonging to the Owner or being
executed or procured by the Owner or of other agencies within the premises of the
work of the Owner, if such loss or damage is due to fault and/or the negligence or willful acts
or omission of the Contractor, his employees, agents, representatives or sub-contractors.
5.o.2. The Contractors shall indemnify and keep the Owner harmless of all claims for damage
to Owner's property arising under or by reason of this contract.
6. DUTIES AND RESPONSIBILITIES OF CONTRACTOR
6.a. EMPLOYMENT LIABILITY TOWARDS WORKERS EMPLOYED BY THE
CONTRACTOR
6.a.1 The Contractor shall be solely and exclusively responsible for engaging or employing
persons for the execution of work. All persons engaged by the contractor shall be on
Contractor's payroll and paid by Contractor. All disputes or differences between the
Contractor and his/their employees shall be settled by Contractor.
6.a.2. Owner has absolutely no liability whatsoever concerning the employees of the
Contractor. The Contractor shall indemnify Owner against any loss or damage or liability
arising out of or in the course of his/their employing persons or relation with his/their
employees. The Contractor shall make regular and full payment of wages and on any
complaint by any employee of the Contractor or his sub contractor regarding non-payment of
wages, salaries or other dues, Owner reserves the right to make payments directly to such
employees or sub- contractor of the Contractor and recover the amount in full from the bills
of the Contractor and the contractor shall not claim any compensation or reimbursement
thereof. The Contractor shall comply with the Minimum Wages Act applicable to the area of
work site with regard to payment of wages to his employees and also to employees of his sub
contractor.
6.a.3. The Contractor shall advise in writing or in such appropriate way to all of his
employees and employees of sub-contractors and any other person engaged by him that their
appointment/employment is not by the Owner but by the Contractor and that their present
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appointment is only in connection with the construction contract with Owner and that
therefore, such an employment/appointment would not enable or make them eligible for any
employment/appointment with the Owner either temporarily or/and permanent basis.
6.b. NOTICE TO LOCAL BODIES
The contractor shall comply with and give all notices required under any Government
authority, instruction, rule or order made under any act of parliament, state laws or any
regulations or by-laws of any local authority relating to the works.
6.c. FIRST AID AND INDUSTRIAL INJURIES
6.c.1 Contractor shall maintain first aid facility for his employees and those of his subcontractors.
6.c.2. Contractor shall make arrangements for ambulance service and for the treatment of all
types of injuries. Names and telephone numbers of those providing such services shall be
furnished to Owner prior to start of construction and their name board shall be prominently
displayed in Contractor's field office.
6.c.3. All industrial injuries shall be reported promptly to owner and a copy of contractor's
report covering each personal injury requiring the attention of a physician shall be furnished
to the Owner.
6.d. SAFETY CODE
6.d.1. The Contractor shall at his own expenses arrange for the Safety provisions as may
be necessary for the execution of the work or as required by the Engineer-in-Charge in
respect of all labours directly or indirectly employed for performance of the works and shall
provide all facilities in connections therewith. In case the contractor fails to make
arrangements and provide necessary facilities as aforesaid, the Owner shall be entitled to do
so and recover the cost thereof from the Contractor.
6.d.2. From the commencement to the completion of the works, the contractor shall take full
responsibility for the care thereof and of all the temporary works (defined as meaning all
temporary works of every kind required in or for the execution, completion or maintenance of
the works). In case damage, loss or injury shall happen to the works or to any part thereof or
to temporary works or to any cause whatsoever repair at his (Contractor's) own cost and make
good the same so that at the time of completion, the works shall be in good order and
condition and in conformity in every respect with the requirement of the contract and
Engineer-in-Charge's instructions.
6.d.3. In respect of all labour, directly or indirectly employed in the work for the performance
of the Contractor's part of this agreement, the contractor shall at his own expense arrange for
all the safety provisions as per relevant Safety Codes of C.P.W.D Bureau of Indian Standards,
the Electricity Act/I.E. Rules. The Mines Act and such other Acts as applicable.
6.d.4. The Contractor shall observe and abide by all fire and safety regulations of the
Owner. Before starting construction work, the Contractor shall consult with Owner's Safety
Engineer or Engineer-in-Charge/Site-in-Charge and must make good to the satisfaction of the
Owner any loss or damage due to fire to any portion of the work done or to be done under
this agreement or to any of the Owner's existing property.
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6.d.5. The Contractor will be fully responsible for complying with all relevant provisions of
the Contract Labour Act and shall pay rates of Wages and observe hours of
work/ conditions of employment according to the rules in force from time to time.
6.d.6. The Contractor will be fully responsible for complying with the provision including
documentation and submission of reports on the above to the concerned
authorities and shall indemnify the Corporation from any such lapse for which the
Government will be taking action against them.
6.d.7. Owner shall on a report having been made by an inspecting Office as defined in the
Contract Labour Regulations have the power to deduct from the money due to the Contractor
any sum required or estimated to be required for making good the loss suffered by a
worker(s) by reasons of non-fulfillment of conditions of contract for the benefit of workers
no-payment of wages or of deductions made from his or their wages which are not justified
by the terms of contract or non observance of the said contractor's labour Regulation.
6.e. INSURANCE AND LABOUR
Contractor shall at his own expense obtain and maintain an insurance policy with a
Nationalised Insurance Company to the satisfaction of the Owner as provided hereunder.
6.e.1. EMPLOYEES STATE INSURANCE ACT
i. The Contractor agrees to and does hereby accept full and exclusive liability for the
compliance with all obligations imposed by Employees State Insurance Act, 1948, and the
Contractor further agrees to defend indemnify and hold Owner harmless from any liability or
penalty which may be imposed by the Central, State or local authority by reason of any
asserted violation by Contractor, or sub-contractor of the Employees' State Insurance Act,
1948 and also from all claims, suits or proceedings that may be brought against the Owner
arising under, growing out of or by reason of the work provided for by this contract whether
brought by employees of the Contractor, by third parties or by Central or State Government
authority or any political sub-division thereof.
ii. The Contractor agrees to file with the Employees State Insurance Corporation, the
Declaration forms and all forms which may be required in respect of the Contractor's or subcontractor's employee whose aggregate emuneration is within the specified limit and who are
employed in the work provided or those covered by ESI Act under any amendment to the Act
from time to time. The Contractor shall deduct and secure the agreement of the subcontractor to deduct the employee's contribution as per the first schedule of the Employee's
State Insurance Act from wages and affix the employee's contribution cards at wages
payment intervals. The Contractor shall remit and secure the agreement of the sub contractor
to remit to the State Bank of India, Employee's State
Insurance Corporation Account, the Employee's contribution as required by the Act.
iii. The Contractor agrees to maintain all records as required under the Act in respect of
employees and payments and the Contractor shall secure the agreement of the sub contractor
to maintain such records. Any expenses incurred for the contributions, making contribution or
maintaining records shall be to the Contractor's or sub-contractor's account.
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iv. The Owner shall retain such sum as may be necessary from the total contract value until
the Contractor shall furnish satisfactory proof that all contributions as required by the
Employees State Insurance Act, 1948, have been paid.
v. WORKMAN'S COMPENSATION AND EMPLOYEE'S LIABILITY
INSURANCE
Provide Insurance for all the Contractor's employees engaged in the performance of this
contract. If any of the work is sublet, the Contractor shall ensure that the sub contractor
provides workmen's compensation and Employer's Liability Insurance for the latter's
employees who are not covered under the Contractor's insurance.
vi. AUTOMOBILE LIABILITY INSURANCE
Contractor shall take out an Insurance to cover all risks to Owner for each of his vehicles
plying on works of this contract and these insurances shall be valid for the total contract
period. No extra payment will be made for this insurance. Owner shall not be liable for any
damage or loss not made good by the Insurance Company, should such damage or loss result
from unauthorised use of the vehicle. The provisions of the Motor Vehicle Act would apply.
vii. FIRE INSURANCE
Contractor shall within two weeks after award of contract insure the Works, Plant and
Equipment and keep them insured until the final completion of the Contract against loss or
damage by accident, fire or any other cause with an insurance company to be approved by the
Employer/Consultant in the joint names of the Employer and the Contractor (name of the
former being placed first in the Policy). Such Policy shall cover the property of the Employer
only.
6.e.2. ANY OTHER INSURANCE REQUIRED UNDER LAW OR REGULATION OR
BY OWNER
i. Contractor shall also provide and maintain any and all other insurance which may be
required under any law or regulations from time to time. He shall also carry and maintain any
other insurance which may be required by the Owner.
ii. The aforesaid insurance policy/policies shall provide that they shall not be cancelled till
the Engineer-in-Charge has agreed to their cancellation.
iii. The Contractor shall satisfy to the Engineer-in-Charge/Site-in-Charge from time to time
that he has taken out all insurance policies referred to above and has paid the necessary
premium for keeping the policies alive till the expiry of the defects liability period.
iv. The contractor shall ensure that similar insurance policies are taken out by his subcontractor (if any) and shall be responsible for any claims or losses to the Owner resulting
from their failure to obtain adequate insurance protections in connection thereof. The
contractor shall produce or cause to be proceed by his sub-contractor (if any) as the case may
be, the relevant policy or policies and premium receipts as and when required by the
Engineer-in-Charge/Site-in-Charge.
6.e.3. LABOUR AND LABOUR LAWS
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i. The contractor shall at his own cost employ persons during the period of contract and the
persons so appointed shall not be construed under any circumstances to be in the employment
of the Owner.
ii. All payments shall be made by the contractor to the labour employed by him in accordance
with the various rules and regulations stated above. The contractor shall keep the Owner
indemnified from any claims whatsoever inclusive of damages/costs or otherwise arising
from injuries or alleged injuries to or death of a person employed by the contractor or
damages or alleged damages to the property.
iii. No labour below the age of eighteen years shall be employed on the work. The Contractor
shall not pay less than what is provided under the provisions of the contract labour
(Regulations and Abolition) Act, 1970 and the rules made thereunder and as may be amended
from time to time. He shall pay the required deposit under the Act appropriate to the number
of workman to be employed by him or through sub contractor and get himself registered
under the Act. He shall produce the required Certificates to the Owner before commencement
of the work. The Owner recognises only the Contractor and not his sub contractor under the
provisions of the Act. The Contractor will have to submit daily a list of his workforce. He
will also keep the wage register at the work site or/and produce the same to the Owner,
whenever desired. A deposit may be taken by the Owner from the Contractor to be refunded
only after the Owner is satisfied that all workmen employed by the Contractor have been
fully paid for the period of work in Owner's premises at rates equal to or better than wages
provided for under the Minimum Wages Act. The contractor shall be responsible and liable
for any complaints that may arise in this regard and the consequences thereto.
iv. The Contractor will comply with the provisions of the Employee's Provident Fund Act and
the Family Pension Act as may be applicable and as amended from time to time.
v. The Contractor will comply with the provisions of the payment of Gratuity Act, 1972, as
may be applicable and as amended from time to time.
vi. IMPLEMENTATION OF APPRENTICES ACT, 1961
The Contractor shall comply with the provisions of the Apprentices Act, 1961 and the Rules
and Orders issued thereunder from time to time. If he fails to do so, his failure will be a
breach of the contract and the Engineer-in-Charge may, at his discretion, cancel the contract.
The Contractor shall also be liable for any pecuniary liability arising on account of any
violation by him of the provision of the Act.
vii. MODEL RULES FOR LABOUR WELFARE
The Contractor shall at his own expenses comply with or cause be complied with Model rules
for Labour Welfare as appended to those conditions or rules framed by the Government from
time to time for the protection of health and for making sanitary arrangements for worker
employed directly or indirectly on the works. In case the contractor fails to make
arrangements as aforesaid the Engineer-in-Charge/Site-in-Charge shall be entitled to do so
and recover the cost thereof from the contractor.
6.f. DOCUMENTS CONCERNING WORKS
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6.f.1. All documents including drawings, blue prints, tracings, reproducible models, plans,
specifications and copies, thereof furnished by the Owner as well as all drawings, tracings,
reproducibles, plans, specifications design calculations etc. prepared by the contractor for the
purpose of execution of works covered in or connected with this contract shall be the
property of the Owner and shall not be used by the contractor for any other work but are to be
delivered to the Owner at the completion or otherwise of the contract.
6.f.2. The Contractor shall keep and maintain secrecy of the documents, drawings etc. issued
to him for the execution of this contract and restrict access to such documents, drawings etc.
and further the Contractor shall execute a SECRECY agreement from each or any person
employed by the Contractor having access to such documents, drawings etc. The Contractor
shall not issue drawings and documents to any other agency or individual without the written
approval by the Engineer-in-Charge/Site-in- Charge.
6.f.3. Contractor will not give any information or document etc. concerning details of the
work to the press or a news disseminating agency without prior written approval from
Engineer-in-charge/Site-in-Charge. Contractor shall not take any pictures on site without
written approval of Engineer-in-Charge/Site-in-Charge.
7. PAYMENT OF CONTRACTOR'S BILLS
7.1. Payments will be made against Running Accounts bills certified by the Owner's
Engineer-in-Charge/Site-in-Charge within 15 days from the date of receipt of the
bill..
7.2. Running Account Bills and the final bill shall be submitted by the Contractor together
with the duly signed measurements sheet(s) to the Engineer-in-Charge/ Site-in-Charge of the
Owner in quadruplicate for certification. The Bills shall also be accompanied by quantity
calculations in support of the quantities contained in the bill along with cement consumption
statement, actual/theoretical, wherever applicable duly certified by the Engineer-in-Charge/
Site-in-Charge of the Owner.
7.3. All running account payments shall be regarded as on account payment(s) to be finally
adjusted against the final bill payment. Payment of Running Account Bill(s) shall not
determine or affect in any way the rights of the Owner under this Contract to make the final
adjustments of the quantities of material, measurements of work and adjustments of amounts
etc.etc. in the final bill.
7.4. The final bill shall be submitted by the Contractor within one month of the date of
completion of the work fully and completely in all respects. If the Contractor fails to submit
the final bill accordingly Engineer-in-Charge/Site-in-Charge may make the
measurement and determine the total amount payable for the work carried out by the
Contractor and such a certification shall be final and binding on the Contractor.
The Owner/Engineer- in-Charge/Site-in-Charge may take the assistance of an outside party
for taking the measurement, the expenses of which shall be payable
by the Contractor.
7.5. Payment of final bill shall be made within 30 days from the date of receipt of the
certified bill by the Disbursement Section of the owner.
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7.6 Wherever possible, payment shall be tendered to the contractor in electronic mode
(e-payment) through any of the designated banks. The contractor will comply by
furnishing full particulars of Bank acount (mandate) to which the payments will
be routed. Owner reserves the right to make payment in any alternate mode also.
7.a. MEASUREMENT OF WORKS
7.a.1. All measurements shall be in metric system. All the works will be jointly measured by
the representative of the Engineer-in-Charge/Site-in-Charge and the Contractor or their
authorised agent progressively. Such measurement will be recorded in the Measurement
Book/Measurement Sheet by the Contractor or his authorized representative and signed in
token of acceptance by the Owner or their authorised representative.
7.a.2. For the purpose of taking joint measurement, the Contractor/representative shall be
bound to be present whenever required by the Engineer-in-Charge/Site-in-Charge. If,
however, they are absent for any reasons whatsoever, the measurement will be taken by the
Engineer-in-Charge/Site-in-Charge or his representative and the same would be deemed to be
correct and binding on the Contractor.
7.a.3. In case of any dispute as to the mode of measurement for any item of work, the latest
Indian Standard Specifications shall be followed. In case of any further dispute on the same
the same shall be as per the certification of an outside qualified Engineer/ Consultant. Such a
measurement shall be final and binding on the Owner and the Contractor.
7.b. BILLING OF WORKS EXECUTED
The Contractor will submit a bill in approved proforma in quadruplicate to the Engineer-inCharge/Site-in-Charge of the work giving abstract and detailed measurement for the various
items executed during a month, before the expiry of the first week of the succeeding month.
The Engineer-in-Charge/Site-in-Charge shall take or cause to be taken the requisite
measurements for the purpose of having the bill verified and/or checked before forwarding
the same to the disbursement office of the Owner for further action in terms of the Contract
and payment thereafter. The Engineer-in-Charge/Site-in-Charge shall verify the bills within 7
days of submission of the Bill by the Contractor.
7.c. RETENTION MONEY
10% of the total value of the Running Account and Final Bill will be deducted and retained
by the Owner as retention money on account of any damage/defect liability that may arise for
the period covered under the defect liability period clause of the Contract free of interest. Any
damage or defect that may arise or lie undiscovered at the time of issue of completion
certificate connected in any way with the equipment or materials supplied by contractor or in
workmanship shall be rectified or replaced by the contractor at his own expense failing which
the Owner shall be entitled to rectify the said damage/defect from the retention money. Any
excess of expenditure incurred by the Owner on account of damage or defect shall be payable
by the Contractor. The decision of the Owner in this behalf shall not be liable to be
questioned but shall be final and binding on the Contractor. Thus, deduction towards
retention money is applicable only in case of job/works contracts (civil, mechanical,
electrical, maintenance etc.) where any damage or defect may arise in future (i.e. within 12
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months from the date of completion of job) or lie undiscovered at the time of issue of
completion certificate.
7.d. STATUTORY LEVIES
7.d.1 The Contractor accepts full and exclusive liability for the payment of any and all taxes,
duties, octroi, rates, cess, levies and statutory payments payable under all or any of the
statutes etc.
Variations of taxes and duties arising out of the amendments to the Central / State
enactments, in respect of sale of goods / services covered under this bid shall be to
HPCLs account, so long as :
They relate to the period after the opening of the price bid, but before the contracted
completion period ( excluding permitted extensions due to delay on account of the
contractors, if any) or the actual completion period, whichever is earlier; and
The vendor furnishes documentary evidence of incurrence of such variations, in addition to
the invoices/documents for claiming Cenvat /Input Tax credit, wherever applicable.
All contributions and taxes for unemployment compensation, insurance and old age
pensions or annuities now or hereafter imposed by Central or State Governmental
authorities which are imposed with respect to or covered by the wages, salaries or other
compensations paid to the persons employed by the Contractor and the Contractor shall be
responsible for the compliance with all obligations and restrictions imposed by the Labour
Law or any other law affecting employer-employee relationship and the Contractor further
agrees to comply and to secure the compliance of all sub-contractors with all applicable
Central, State, Municipal and local laws, and regulations and requirements of any Central,
State or Local Government agency or authority.
Contractor further agrees to defend, indemnify and hold harmless from any liability or
penalty which may be imposed by the Central, State or Local authorities by reason of any
violation by Contractor or sub-contractor of such laws, regulations or requirements and also
from all claims, suits or proceedings that may be brought against the Owner arising under,
growing out of, or by reasons of the work provided for by this contract by third parties, or by
Central or State Government authority or any administrative sub-division thereof. The
Contractor further agrees that in case any such demand is raised against the Owner, and
Owner has no way but to pay and pays/makes payment of the same, the Owner shall have the
right to deduct the same from the amounts due and payable to the Contractor. The Contractor
shall not raise any demand or dispute in respect of the same but may have recourse to
recover/receive from the concerned authorities on the basis of the Certificate of the Owner
issued in that behalf.
7.d.2. The rates quoted should be inclusive of all rates, cess, taxes and sales tax on works
contracts wherever applicable. However, wherever the sales tax on works contract is
applicable and is to be deducted at source, the same will be deducted from the bills of the
Contractor and paid to the concerned authorities. The proof of such payments of sales tax on
works contract will be furnished to the contractor.
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7.d.3. Income tax will be deducted at source as per rules at prevailing rates, unless certificate,
if any, for deduction at lesser rate or nil deduction is submitted by the Contractor from
appropriate authority.
7.d.4 The contractor shall provide accurate particulars of PAN number as required, to
enable issuance of TDS (Tax Deduction at Source) certificate.
7.e. MATERIALS TO BE SUPPLIED BY CONTRACTOR
7.e.1. The Contractor shall procure and provide the whole of the materials required for
construction including tools, tackles, construction plant and equipment for the completion
and maintenance of the works except the materials viz. steel and cement which may be
agreed to be supplied as provided elsewhere in the contract. The contractor shall make
arrangement for procuring such materials and for the transport thereof at their own cost and
expenses.
7.e.2. The Owner may give necessary recommendation to the respective authority if so
desired by the Contractor but assumes no responsibility of any nature. The Contractor shall
procure materials of ISI stamp/certification and supplied by reputed suppliers borne on
DGS&D list.
7.e.3. All materials procured should meet the specifications given in the tender document.
The Engineer-in-charge may, at his discretion, ask for samples and test certificates for any
batch of any materials procured. Before procuring, the Contractor should get the approval of
Engineer-in-Charge/Site-in-Charge for any materials to be used for the works.
7.e.4. Manufacturer's certificate shall be submitted for all materials supplied by the
Contractor. If, however, in the opinion of the Engineer-in-Charge/Site-in-Charge any tests are
required to be conducted on the material supplied by the Contractor, these will be arranged by
the Contractor promptly at his own cost.
7.f. MATERIALS TO BE SUPPLIED BY THE OWNER
7.f.1. Steel and Cement maybe supplied by the Owner to the contractor against payment by
Contractor from either godown or from the site or within work premises itself and
the contractor shall arrange for all transport to actual work site at no extra cost.
7.f.2. The contractor shall bear all the costs including loading and unloading, carting from
issue points to work spot storage, unloading, custody and handling and stacking the same and
return the surplus steel and cement to the Owner's storage point after completion of job.
7.f.3. The contractor will be fully accountable for the steel and cement received from the
Owner and contractor will give acknowledgement/receipt for quantity of steel and cement
received by him each time he uplifts cement from Owner's custody.
7.f.4. For all computation purposes, the theoretical cement consumption shall be considered
as per CPWD standards.
7.f.5. Steel and Cement as received from the manufacturer/stockists will be issued to the
contractor. Theoretical weight of cement in a bag will be considered as 50 Kg. Bags weighing
upto 4% less shall be accepted by the contractor and considered as 50 Kg. per bag. Any
shortage in the weight of any cement bag by more than 4% will be to the Owner's account
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only when pointed out by the Contractor and verified by Engineer-in-Charge/Site in Charge
at the time of Contract or taking delivery.
7.f.6. The contractor will be required to maintain a stock register for receipt, issuance and
consumption of steel and cement at site. Cement will be stored in a warehouse at site.
Requirement of cement on any day will be taken out of the warehouse. Cement issued shall
be regulated on the basis of FIRST RECEIPT to go as FIRST ISSUE.
7.f.7. Empty cement bag shall be the property of the Contractor. Contractor shall be
penalised for any excess/under consumption of cement. The penal rate will be twice the rate
of issue of cement for this work.
7.f.8. All the running bills as well as the final bills will be accompanied by cement
consumption statements giving the detailed working of the cement used, cement received and
stock-on-hand.
7.f.9. The Contractor will be fully responsible for safe custody of cement once it is
received by him and during transport. Owner will not entertain any claims of the contractor
for theft, loss or damage to cement while in their custody.
7.f.10. The contractor shall not remove from the site any cement bags at any time.
7.f.11. The Contractor shall advise Engineer-in-charge/Site-in-charge in writing atleast 21
days before exhausting the Cement stocks already held by Contractor to ensure that
such delays do not lead to interruptions in the progress of work.
7.f.12. Cement shall not be supplied by the Owner for manufacturing of mosaic tiles,
precast cement jali and any other bought out items which consume cement and for
temporary works.
7.f.13. Cement in bags and in good usable condition left over after the completion of work
shall be returned by the contractor to the Owner. The Owner shall make payment to the
Contractor at the supply rate for such stocks of cement they accept and receive.
Any refused stock of cement shall be removed by the Contractor from the site at his cost and
expenses within 15 days of completion of the work.
8. PAYMENT OF CLAIMS AND DAMAGES
8.1. Should the Owner have to pay money in respect of claims or demands as aforesaid the
amount so paid and the costs incurred by the Owner shall be charged to and paid by the
Contractor and the Contractor shall not be entitled to dispute or question the right of the
Owner to make such payments notwithstanding the same may have been without his consent
or authority or in law or otherwise to the contrary.
8.2. In every case in which by virtue of the provisions of Workmen's Compensation Act,
1923, or other Acts, the Owner is obliged to pay Compensation to a
Workman employed by the Contractor in execution of the works, the Owner will recover
from the Contractor the amount of compensation so paid and without prejudice to the rights
of Owner under the said Act. Owner shall be at liberty to recover such amount or any part
thereof by deducting it from the security deposit or from any sum due to the Contractor
whether under this contract or otherwise. The Owner shall not be bound to contest any claim
made under Section 12 sub section (1) of the said Act, except on the written request of the
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Contractor and upon his giving to the Owner full security for all costs for which the owner
might become liable in consequence of contesting such claim.
8.a. ACTION AND COMPENSATION IN CASE OF BAD WORK
If it shall appear to the Engineer-in-Charge/Site-in-Charge that any work has been
executed with bad, imperfect or unskilled workmanship, or with materials, or that any
materials or articles provided by the Contractor for execution of the work are not of standards
specified/inferior quality to that contracted for, or otherwise not in accordance with the
contract, the CONTRACTOR shall on demand in writing from the Engineer-in-Charge/Sitein-Charge or his authorised representative specifying the work, materials or articles
complained of, notwithstanding that the same may have been inadvertently passed, certified
and paid for, forthwith rectify or remove and reconstruct the work so specified and at his own
charge and cost and expenses and in the event of failure to do so within a period of 15 days of
such intimation/ information/knowledge, the Contractor shall be liable to pay compensation
equivalent to the cost of reconstruction by the Owner. On expiry of 15 days period mentioned
above, the Owner may by themselves or otherwise rectify or remove and re-execute the work
or remove and replace with others, the materials or articles complained of as the case may be
at the risk and expenses in all respects of the Contractor. The decision of the Engineer-inCharge/ Site-in-Charge as to any question arising under this clause shall be final and
conclusive and shall not be raised as a dispute or shall be arbitrable.
8.b. INSPECTION AND AUDIT OF CONTRACT AND WORKS
This project is subject to inspection by various Government agencies of Government of India.
The contractor shall extend full cooperation to all the Government and other agencies in the
inspection of the works, audit of the Contract and the documents of Contract Bills,
measurements sheets etc. etc. and examination of the records of works and make enquiries
interrogation as they may deem fit, proper and necessary. Upon inspection etc. by such
agencies if it is pointed out that the contract work has not been carried out according to the
prescribed terms and conditions as laid down in the tender documents and if any recoveries
are recommended, the same shall be recovered from the contractors running bills/final
bill/from ordered/suggested Security Deposit/retention money. The Contractor shall not rise
any dispute on any such account and the same shall not be arbitrable.
9. CONTRACTOR TO INDEMNIFY THE OWNER
The Contractor shall indemnify the Owner and every member, officer and employee of the
Owner, also the Engineer-in-Charge/Site-in-Charge and his staff against all the actions,
proceedings, claims, demands, costs, expenses, whatsoever arising out of or in connection
with the works and all actions, proceedings, claims, demands, costs, expenses which may be
made against the Owner for or in respect of or arising out of any failure by the Contractor in
the performance of his obligations under the contract. The Contractor shall be liable for or in
respect of or in consequence of any accident or injury to any workmen or other person in the
employment of the Contractor or his sub contractor and Contractor shall indemnify and keep
indemnified the Owner against all such damages, proceedings, costs, charges and expenses
whatsoever in respect thereof or in relation thereto.
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10. LIQUIDATED DAMAGES

i) In case of any delay in completion of the work beyond the CDD, the Owner shall be
entitled to be paid Liquidated Damages by the Contractor. The liquidated damages
shall be initially at the rate of 0.5% (half percent) of the total contract value for every
week of the delay subject to a maximum of 5% of the total contract value. The
liquidated damages shall be recovered by the Owner out of the amounts payable to the
Contractor or from any Bank Guarantees or Deposits furnished by the Contractor or
the Retention Money retained from the Bills of the Contractor, either under this
contract or any other contract.
ii) The Contractor shall be entitled to give an acceptable unconditional Bank
Guarantee in lieu of such a deduction if Contractor desires any decision on a request for
time extension.
iii) Once a final decision is taken on the request of the Contractor or otherwise, the LD
shall be applicable only on the basic cost of the contract and on each full completed
week(s) of delay (and for part of the week, a pro-rata LD amount shall be applicable).
iv) This final calculation of LD shall be only on the value of the unexecuted
portion/quantity of work as on the CDD.
v) Contractor agrees with the Owner, that the above represents a genuine pre-estimate
of the damages which the Owner will suffer on account of delay in the performance of
the work by Contractor. The Contractor further agrees that the LD amount is over and
above any right which owner has to risk purchase under Clause 12.4 and any right to
get the defects in the work rectified at the cost of the contractor.
11. DEFECTS AFTER TAKING OVER OR TERMINATION OF WORK
CONTRACT BY OWNER
The Contractor shall remain responsible and liable to make good all losses or damages
that may occur/appear to the work carried out under this Contract within a period of
12 months from date of issue of the Completion Certificate and/or the date of
Owner taking over the work, which ever is earlier. The Contractor shall issue a Bank
Guarantee to the Owner in the sum of 10% of the work entrusted in the Contract, from
any nationalised Bank acceptable to the Owner and if however, the Contractor fails to furnish
such a Bank Guarantee the Owner shall have right to retain the Security Deposit and
Retention Money to cover the 10% of the Guarantee amount under this clause and to
return/refund the same after the expiry of the period of 12 months without any interest
thereon.
12. TERMINATION OF CONTRACT
12.1 The owner may terminate the contract at any stage of the construction for reasons to be
recorded in the letter of termination.
12.2 The Owner inter alia may terminate the Contract for any or all of the following reasons
that the contractor
a) has abandoned the work/Contract.
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b) has failed to commence the works, or has without any lawful excuse under these
conditions suspended the work for 15 consecutive days.
c) has failed to remove materials from the site or to pull down and replace the work within 15
days after receiving from the Engineer written notice that the said materials or work were
condemned and/or rejected by the Engineer under specified conditions.
d) has neglected or failed to observe and perform all or any of the terms acts, matters or
things under this Contract to be observed and performed by the Contractor.
e) has to the detriment of good workmanship or in defiance of the Engineer's instructions to
the contrary sub-let any part of the Contract.
f) has acted in any manner to the detrimental interest, reputation, dignity, name or prestige of
the Owner.
g) has stopped attending to work without any prior notice and prior permission for a period of
15 days.
h) has become untraceable.
i) has without authority acted in violation of the terms and conditions of this contract and has
committed breach of terms of the contract in best judgement of the owner.
j) has been declared insolvent/bankrupt.
k) in the event of sudden death of the Contractor.
12.3 The owner on termination of such contract shall have the right to appropriate the
Security Deposit, Retention Money and invoke the Bank Guarantee furnished by the
contractor and to appropriate the same towards the amounts due and payable by the
contractor as per the conditions of Contract and return to the contractor excess money, if any,
left over.
12.4 In case of Termination of the contract, Owner shall have the right to carry out the
unexecuted portion of the work either by themselves or through any other
contractor (s) at the risk and cost of the Contractor. In view of paucity of time,
Owner shall have the right to place such unexecuted portion of the work on any
nominated contractor(s). However, the overall liability of the Contractor shall be
restricted to 100 % of the total contract value.
12.5 The contractor within or at the time fixed by the Owner shall depute his authorised
representative for taking joint final measurements of the works executed thus far and
submit the final bill for the work as per joint final measurement within 15 days of the
date of joint final measurement. If the contractor fails to depute their representative for joint
measurement, the owner shall take the measurement with their Engineer-in-Charge/Site-inCharge or any other outside representatives. Such a measurement shall not be questioned by
the Contractor and no dispute can be raised by the Contractor for purpose of Arbitration.
12.6 The Owner may enter upon and take possession of the works and all plant, tools,
scaffoldings, sheds, machinery, power operated tools and steel, cement and other
materials of the Contract at the site or around the site and use or employ the same for
completion of the work or employ any other contractor or other person or persons to
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complete the works. The Contractor shall not in any way object or interrupt or do any act,
matter or thing to prevent or hinder such actions, other Contractor or other persons employed
for completing and finishing or using the materials and plant for the works. When the works
shall be completed or as soon thereafter the Engineer shall give a notice in writing to the
Contractor to remove surplus materials and plant, if any, and belonging to the Contractor
except as provided elsewhere in the Contract and should the Contractor fail to do so within a
period of 15 days after receipt thereof the Owner may sell the same by public auction and
shall give credit to the contractor for the amount realised. The Owner shall thereafter
ascertain and certify in writing under his hand what (if anything) shall be due or payable to or
by the Owner for the value of the plant and materials so taken possession and the expense or
loss which the Owner shall have been put to in
procuring the works, to be so completed, and the amount if any, owing to the
Contractor and the amount which shall be so certified shall thereupon be paid by the
Owner to the Contractor or by the Contractor to the Owner, as the case may, and the
Certificate of the Owner shall be final and conclusive between the parties.
12.7 When the contract is terminated by the Owner for all or any of the reasons mentioned
above the Contractor shall not have any right to claim compensation on account of such
termination.
13. FORCE MAJEURE
13.1. Any delay in or failure of the performance of either part hereto shall not constitute
default hereunder or give rise to any claims for damage, if any, to the extent such delays or
failure of performance is caused by occurrences such as Acts of God or an enemy,
expropriation or confiscation of facilities by Government authorities, acts of war, rebellion,
sabotage or fires, floods, explosions, riots, or strikes. The Contractor shall keep records of the
circumstances referred to above and bring these to the notice of the Engineer-in-Charge/Sitein-Charge in writing immediately on such occurrences. The amount of time, if any, lost on
any of these counts shall not be counted for the Contract period. Once decision of the Owner
arrived at after consultation with the Contractor, shall be final and binding. Such a
determined period of time be extended by the Owner to enable the Contractor to complete the
job within such extended period of time.
13.2. If Contractor is prevented or delayed from the performing any of its obligations
under this Agreement by Force Majeure, then Contractor shall notify Owner the
circumstances constituting the Force Majeure and the obligations performance of which is
thereby delayed or prevented, within seven days of the occurrence of the events.
14. ARBITRATION
14.1 All disputes and differences of whatsoever nature, whether existing or which shall at any
time arise between the parties hereto touching or concerning the agreement, meaning,
operation or effect thereof or to the rights and liabilities of the parties or arising out of or in
relation thereto whether during or after completion of the contract or whether before after
determination, foreclosure, termination or breach of the agreement (other than those in
respect of which the decision of any person is, by the contract, expressed to be final and
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binding) shall, after written notice by either party to the agreement to the other of them and to
the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole
Arbitrator to be appointed as hereinafter provided.
14.2 The appointing authority shall either himself act as the Sole Arbitrator or nominate
some officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as
owner or HPCL) or a retired officer of any other Government Company in the Oil Sector of
the rank of Ch. Manager & above or any retired officer of the Central Government not
below the rank of a Director, to act as the Sole Arbitrator to adjudicate the disputes and
differences between the parties. The contractor/vendor shall not be entitled to raise any
objection to the appointment of such person as the Sole Arbitrator on the ground that the
said person is/was an officer and/or shareholder of the owner, another Govt. Company or
the Central Government or that he/she has to deal or had dealt with the matter to which the
contract relates or that in the course of his/her duties, he/she has/had expressed views on all
or any of the matters in dispute or difference.
14.3 In the event of the Arbitrator to whom the matter is referred to, does not accept the
appointment, or is unable or unwilling to act or resigns or vacates his office for any
reasons whatsoever, the Appointing Authority aforesaid, shall nominate another person as
aforesaid, to act as the Sole Arbitrator.
14.4 Such another person nominated as the Sole Arbitrator shall be entitled to proceed with
the arbitration from the stage at which it was left by his predecessor. It is expressly agreed
between the parties that no person other than the Appointing Authority or a person
nominated by the Appointing Authority as aforesaid, shall act as an Arbitrator. The failure
on the part of the Appointing Authority to make an appointment on time shall only give rise
to a right to a Contractor to get such an appointment made and not to have any other
person appointed as the Sole Arbitrator.
14.5 The Award of the Sole Arbitrator shall be final and binding on the parties to the
Agreement.
14.6 The work under the Contract shall, however, continue during the Arbitration
proceedings and no payment due or payable to the concerned party shall be withheld (except
to the extent disputed) on account of initiation, commencement or pendency of such
proceedings.
14.7 The Arbitrator may give a composite or separate Award(s) in respect of each dispute or
difference referred to him and may also make interim award(s) if necessary.
14.8 The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by
the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The
lumpsum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation
contracts and Rs. 60,000/- for engineering contracts and if the sole Arbitrator
completes the arbitration including his award within 5 months of accepting his
appointment, he shall be paid Rs. 10,000/- additionally as bonus. Reasonable actual
expenses for stenographer, etc. will be reimbursed. Fees shall be paid stagewise i.e. 25%
on acceptance, 25% on completion of pleadings/documentation, 25% on completion of
arguments and balance on receipt of award by the parties
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14.9 Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or
any statutory modification or re-enactment thereof and the rules made thereunder, shall apply
to the Arbitration proceedings under this Clause.
14.10 The Contract shall be governed by and constructed according to the laws in force in
India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at
_______ (say Mumbai*) for all purposes. The Arbitration shall be held at ________ (say
Mumbai*) and conducted in English language.
14.11 The Appointing Authority is the Functional Director of Hindustan Petroleum
Corporation Limited.
(Note:- * = While printing the GTCs, each Purchasing Authorities at various location,
may mention the correct place before printing the GTC and not leave Clause 14.10 blank
or as stated above. Bracketed portion is to be removed.
15. GENERAL
15.1. Materials required for the works whether brought by the or supplied by the Owner shall be
stored by the contractor only at places approved by
Engineer-in-Charge/Site-in-Charge. Storage and safe custody of the material shall be the
responsibility of the Contractor.
15.2. Owner and/or Engineer-in-Charge/Site-in-Charge connected with the contract, shall be
entitled at any time to inspect and examine any materials intended to be used in or on the works,
either on the site or at factory or workshop or at other place(s) manufactured or at any places
where these are laying or from which these are being obtained and the contractor shall give
facilities as may be required for such inspection and examination.
15.3. In case of any class of work for which there is no such specification supplied by the owner
as is mentioned in the tender documents, such work shall be carried out in accordance
with Indian Standard Specifications and if the Indian Standard Specifications do not cover the
same the work should be carried out as per standard Engineering practice subject to the approval
of the Engineer-in-Charge/Site-in-Charge.
15.4. Should the work be suspended by reason of rain, strike, lockouts or other cause the
contractor shall take all precautions necessary for the protection of the work and at his own
expense shall make good any damages arising from any of these causes.
15.5 The contractor shall cover up and protect from injury from any cause all new work also
for supplying all temporary doors, protection to windows and any other requisite protection for
the whole of the works executed whether by himself or special tradesmen or subcontractors and
any damage caused must be made good by the contractors at his own expense.
15.6 If the contractor has quoted the items under the deemed exports, then it will be the
responsibility of the contractor to get all the benefits under deemed exports from the
Government. The Owners responsibility shall only be limited to the issuance of required
certificates. The quotation will be unconditional and phrases like subject to
availability of deemed exports benefit etc. will not find place in it.
16. Integrity Pact : Effective 1st September, 2007, all tenders and contracts shall comply
with the requirements of the Integrity Pact (IP) if the value of such tenders or contracts
exceed Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid.
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# 17. Grievances of parties participating or intend to participate in the tender shall be

addressed in writing to the officer designate of the Grievance Redressal Cell
where the tenders have to be submitted within the stipulated period. Detailed
mechanism of Grievance Redressal is available on the HPCL website.
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GENERAL TERMS & CONDITIONS PERTAINING TO HEALTH,

SAFETY & ENVIRONMENT
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1.
COMPLIANCE WITH STATUTORY REQUIREMENT

Consultants, contractors or other third parties in the refinery shall abide by
2.
3.
4.
a.
The safety regulation of the refinery as mentioned in the Fire & safety
Regulations (Latest revision).
b.
All requirements under The Factories Act 1948 and the rules framed there under
in the Factory Rules 1963 including all amendments thereto.
c.
All requirements of Worker Compensation Act & ESIS Act including all
amendments thereto.
d.
Applicable Environment Regulation in force and also the systems and

procedures in the refinery related to environment.
QUALIFICATION
DEPLOYED
AND
EXPERIENCE
OF
MANPOWER
TO
BE
a.
Contractor shall deploy only experienced and qualified supervisors and

workman.
b.
Contractor skilled workmen like riggers, scaffolds, welders, fitters, crane

operators, their specialized equipment operators like welding machine, power
generators etc must have sufficient past experience and skill on the relevant
jobs. The electricians to be deployed must have valid Wireman Licence.
c.
All workmen must be capable of following instructions and training.
HEALTH ASSURANCE/AGE
a.
Contractors to ensure that all their workmen are medically fit for the job they are
deployed, especially for the workmen who are deployed in high risk jobs like
working in confined space, working in height, working under water etc.
b.
Age: No one below 18 years or more than 58 years will be employed in the
refinery.
NORMAL TIMINGS FOR WORK

a.
The duty timings for contractor employees shall be in from 8.30AM to 4.30 PM.
However, extension to the working hours may be granted by HPCL upon
contractors written request and subject to the strict compliance of prevailing
refinery safety and security rules.
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5.
TRAINING
a.
Training in Fire and safety is mandatory for all contractors supervisors.
b.
Training of Contractor supervisor
c.
6.
7.
i.
The supervisor in-charge of the contractor who has ultimate responsibility

for their work in the refinery must undergo a one day comprehensive
safety familiarisation program.
ii.
This program will be conducted by Fire & safety Dept. at the Fire Station
Training Hall and the schedule shall be notified well in advance.
iii.
On completion of the program, a certificate of attendance will be issued to

each participant which will be required for supervision of the Hot work.
iv.
The Passing certificate issued to the supervisor will remain valid for one
year.
Workers' Training
i.
It is obligatory that contractor supervisor who is trained by Safety dept

should conduct spot training for his workers.
ii.
Additionally Contract workmen will have to undergo training on "Safety

in Refinery" on the spot.
OBLIGATION TO FOLLOW WORK PERMIT SYSTEM

a.
Do not carryout any work without valid work permit issued by authorized
person in the refinery as per Work permit System.
b.
Comply with all the Fire/Safety/Excavation/Radiography permit conditions

specified in the permit and the clearance.
c.
Display permit at site for checking by refinery officials whenever required.
REQUIREMENTS OF SUPERVISION
a.
Contractor will not carryout any work without having supervisor at site. If it is
required to work simultaneously in more than one location under the same
contract, one supervisor must be put in each of the locations. If a supervisor has
to leave his site for any reason, he must stop his activities for that period of time.
b.
For hot work permit, the supervisor must have valid Training Certificate from
Refinery safety dept.
c.
Contractor must provide at least one full time Safety Supervisor when the
contractor has engaged manpower in excess of 100 in contract activities in the
refinery. If the manpower is less than 100, the on-site safety coordination
responsibilities shall be assumed by any one of the contractor's other supervisory
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staff. In both the cases, the contractor must specify in writing the name of such
person to the Engineer-incharge and Manager - Safety.
d.
8.
USE OF PERSONAL PROTECTIVE EQUIPMENT

a.
Contractors all supervisors and workmen must wear the following Personal
Protective Equipments (PPE's) without which the permission to work will be
denied. Basic PPE's should be provided by the contractor.
b.
Basic requirements for all jobs.
c.
d.
9.
The contractors whose safety records are not satisfactory will be viewed
seriously and necessary action (viz. cancellation of registration/contracts) shall
be taken against him.
i.
Hard hat (Safety helmet)
ii.
Safety Shoes / Gum Boots (civil work)
iii.
Hand Gloves.
Specific Requirements as per Job requirements

i.
SI approved Safety Belt above height of 2 m
ii.
Eye Protection Goggles
iii.
Face & Body protection
The PPE's shall be of standard quality and BIS approved.
FIRE EXTINGUISHER & FIRE HOSE

a.
Contractor shall provide Fire Hoses with Nozzle & Fire Extinguishers of his
own. If he is executing jobs in refinery, for which following specifications
should be adhered to.
b.
Fire Hose : The fire hose should be 63mm/38mm diameter and minimum 15
mtr long, seamless canvass/synthetic fibre woven jacketed, rubberized fabric
reinforced rubber lined hose bearing IS:636-1988 Type A. The fire hose should
have Gun-metal instantaneous type 2 " Male & 2 " Female couplings
bearing IS:903 mark. The couplings should be riveted & doubly wounded with
heavy-duty copper wire to the hose at both ends.
c.
Nozzle : The nozzle to be used with fire hose should be of "Branch Pipe,
Universal" type as per IS:2871-1983. it should be provided with 2 " Female
Instantaneous couplings as per IS:903 (as nozzle with male coupling will
necessitate use of double female coupling)
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d.
10
11.
12.
Fire Extinguisher: The fire extinguisher should be of "10 Kg Capacity DCP

Extinguisher" bearing IS Mark. It should upright operated and should be
cartridge type.
HAZARD COMMUNICATION
a.
n the event, any contractor employee spot a fire or any serious hazards in
refinery premises, he shall dial Ext 6666, identify himself and report location of
fire when fire station operator is on line. He shall wait until the fire message is
repeated by the fire operator and location confirmed.
b.
Pill box communication can also be used by contractor workmen.
c.
The contractor must ensure that each one of his employees clearly understand
this Fire Communication requirement, i.e. in case of fire siren is sounded they
should assemble at designated location near FR Yard Office and south of FR
Boiler House. This may be ensured by contractor while providing on the job
training.
INJURY NOTIFICATION & INVESTIGATION

a.
Report to HPCL supervisor on the job, any injury sustained by any of his
employees or any near-miss or any hazardous/dangerous incident at his worksite
within the refinery premises. Hiding any accident or near miss would be viewed
as serious misconduct.
b.
Arrange to provide First-Aid immediately to injured employee.
c.
Keep and maintain proper records of all such incidents in respect of his
personal/work site.
d.
Submit to Engineer-in-charge a first Information Report within 4 Hours of

incident.
e.
Arrange to immediately investigate the incident and furnish within 24 Hours a

written investigation report to refinery safety dept.
REQUIREMENT OF HOUSEKEEPING
Contractor must ensure highest standard of housekeeping in his areas of work on a
day to day basis. All unsatisfactory housekeeping will earn negative rating, which will
attract penal action like cancellation of registration/contract.
13.
DISPLAY BOARDS AT SITE

Contractor must provide and maintain in his work site, appropriate display board
displaying information as per HPCL "Work Site Display Board" specification.
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14.
PARTICIPATION IN SAFETY ACTIVITIES

Contractor must attend all scheduled safety meetings as would be intimated to him by
the Engineer-in-charge. Contractor also must ensure that all his employees participate
in safety promotional activities organized by the refinery.
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15.
POLICE VERIFICATION
Contractor who engages labourer for his jobs in the refinery must submit Police
Verification of antecedents of labourers engaged by him.
Note
a.
Every person other than HPCL employee or a casual visitor entering in the refinery
would be governed by above conditions.
b.
The term supervisor would mean any person who oversees the works of a group of
workmen. All other persons will be considered as workmen.
c.
Adherence to terms of contract will also be checked by Fire & Safety Dept personnel.
Violation of any of the above conditions of safety would attract penal actions including
termination of contract/registration.
16.
SAFETY WHILE WORKING ON SCAFFOLDINGS

The work of erecting and dismantling scaffold as well as working on the scaffolding
platform involves serious injury hazards. In order to provide fall protection to the
workers involved in these activities, following must be ensured in addition to the
existing work permit procedure.
a)
The scaffold should be double box type
b)
The workers engaged in scaffolding work must wear safety belt with double
lifetime. This is intended to ensure that lifeline is secured all the time, even
while the person is moving.
c)
Safety nets must be deployed first at 10 feet elevation and at every 20 feet
elevation. These nets should be inside scaffold box as well as extend outwards.
d)
It should be ensured that only trained and experienced workers are engaged in
scaffolding work
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PENALTIES FOR NON-COMPLIANCE OF SAFETY SYSTEMS &

PROCEDURES
In order to ensure 100% compliance of Safety related rules & regulations, following Penalties
will be imposed on the Person(s) found to be not adhering to Work Permit conditions inside
the Refinery Premises:
a.
Non-usage of Safety Helmet / Safety Shoes / Safety Goggles:Rs.100/-
b.
Non-usage of Safety Belts: Rs.200/-
c.
Non-provision of basic Safety requirements Rs.300/- (such as ELCB, usage of more

than 24 Volts Power in confined space, uncertified/non-standard Lifting Tools, etc.)
d.
Non-provision of Fire fighting Equipment : Rs.200/- (as per Work Permit conditions)
e.
Non-barricading of area while Rigging, Digging, etc. Rs.100/- and usage of defective
Fire fighting Equipment:
f.
Working without valid Work Permit : Rs.300/-
g.
Unauthorized Road closure / blockage: Rs.200/Please note that in case of any non-compliance/deviations to Work Permit conditions and/or
Safety rules is found, applicable Penalty Clause would be exercised, as listed out above. This
will result in stoppage of the job and Work Permit & Gate Pass will be taken from
Contractor's Supervisor. HPCL will prepare a non-compliance Report on the same and Work
Permit/Gate Pass will be returned back (for re-starting the job) only after ensuring complete
compliance of the above Safety requirements.
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SECTION 11
INTEGRITY PACT
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INTEGRITY PACT
All tenders and contracts whose value exceed Rs.1 crore shall comply with the
requirements of the Integrity Pact (IP).Failure to sign the Integrity Pact shall lead to
outright rejection of bid. ( Annexure-I & Annexure-II)
Effective 1st September, 2007, all tenders and contracts shall comply with the
requirements of the Integrity Pact (IP) if the value of such tenders or contracts exceed
Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid.
A suitable Clause to form part of the tender document as mentioned below (H.3)
# H.1 Agreement to be handed over pre-signed by HPCL representative at the time of
sale of tender documents to the vendors as per Annexure - I. Where the tenders are
downloaded from the Net, this Agreement shall be a precondition to the downloading
of the tender documents.
# H.2. Integrity Pact (IP) form (Annexure - II) to be received from the bidder duly
signed along with the technical bid. This document should also be pre-signed by
authorised representative before handing over to bidder.
H.3 IP Clause to be included in the Tender / Bid Documents Integrity Pact (applicable
for cases above Rs.1 Crore)
The Integrity Pact duly signed by the authorized official of HPCL and the Contractor,
will form part of this contract / supply order. Proforma of Integrity Pact (which is
issued along with the bidding document - Annexure- II) shall be returned by the
bidder along with technical bid, duly signed by the same signatory who signs the bid
i.e. who is duly authorized to sign the bid. All the pages of the Integrity Pact shall be
duly signed by the same signatory. Bidders failure to return the Integrity Pact along
with the bid, duly signed, shall lead to outright rejection of such bid. If the Bidder has
been disqualified from the tender process prior to the award of contract according to
the provisions under Integrity Pact, HPCL shall be entitled to demand and recover
from bidder Liquidated damages amount by forfeiting the EMD/Bid security (Bid
Bond) as per provisions of Integrity Pact.
If the contract has been terminated according to provisions of the Integrity Pact, or if
HPCL is entitled to terminate the contract according to provisions of Integrity Pact,
HPCL shall be entitled to demand and recover from the Contractor liquidated
damages amount by forfeiting the Performance Bank Guarantee / Security Deposit as
per Integrity Pact
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Annexure - I
AGREEMENT
(Under Integrity Pact)
No.
Dated
To,
Sub : Purchase of Bidding Documents
Ref. Tender No.
HPCL and the Bidder agree that the Notice Inviting Tender (NIT) is an offer made on the
condition that the bidder will sign the Integrity Pact and the Bid would be kept open in its
original form without variation or modification for a period of (state the number of days from
the last date for the receipt of tenders stated in the NIT) . days and the making of the
bid shall be regarded as an unconditional and absolute acceptance of this condition of the
NIT. We confirm acceptance and compliance with the Integrity Pact in letter and spirit. We
further agree that the contract consisting of the above conditions of NIT as the offer and the
submission of Bid as the Acceptance shall be separate and distinct from the contract which
will come into existence when bid is finally accepted by HPCL. The consideration for this
separate initial contract preceding the main contract is that HPCL is not agreeable to sell the
NIT to the Bidder and to consider the bid to be made except on the condition that the bid
shall be kept open for days after the last date fixed for the receipt of the bids and the
Bidder desires to make a bid on this condition and after entering into this separate initial
contract with HPCL.
HPCL promises to consider the bid on this condition and the Bidder agrees to keep the bid
open for the required period. These reciprocal promises form the consideration for this
separate initial contract between the parties. If Bidder fails to honour the above terms and
conditions , HPCL shall have unqualified , absolute and unfettered right to encash / forfeit the
bid security submitted in this behalf.
Yours faithfully,
(BIDDER) (PURCHASER)
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(INTEGRITY PACT)
Annexure - II
Between
Hindustan Petroleum Corporation Limited (HPCL) hereinafter referred to as The Principal,
and
. hereinafter referred to as The Bidder/
Contractor
Preamble
The Principal intends to award, under laid down organization procedures, contract/s
for The Principle values full compliance with all
relevant laws and regulations, and the principles of economic use of resources, and of fairness
and transparency in its relations with its Bidders/s and Contractor/s.
In order to achieve these goals, the Principal cooperates with the renowned international NonGovernmental Organisation Transparency International (TI). Following TIs national and
international experience, the Principal will appoint an external independent Monitor who will
monitor the tender process and the execution of the contract for compliance with the
principles mentioned above.
Section 1 Commitments of the Principal
(1) The Principal commits itself to take all measures necessary to prevent corruption and to
observe the following principles:
1. No employee of the Principal, personally or through family members, will in
connection with the tender for, or the execution of a contract, demand, take a promise
for or accept, for him/herself or third person, any material or immaterial benefit which
he/she is not legally entitled to.
2. The principal will, during the tender process treat all Bidders with equity and reason.
The Principal will in particular, before and during the tender process, provide to all
Bidders the same information and will not provide to any Bidder confidential /
additional information through which the Bidder could obtain an advantage in relation
to the tender process or the contract execution.
3. The principal will exclude from the process all known prejudiced persons. the Bidder
/ Contractor shall compensate the Principal only to the extent of the damage in the
amount proved.
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Section 2 Commitments of the Bidder / Contractor

(1)
The Bidder / Contractor commits itself to take all measures necessary to prevent
corruption. He commits himself to observe the following principles during his
participation in the tender process and during the contract execution.
1. The Bidder / Contractor will not, directly or through any other person or firm,
offer, promise or give to any of the Principals employees involved in the
tender process or the execution of the contract or to any third person any
material or immaterial benefit which he/she is not legally entitled to, in order
to obtain in exchange any advantage of any kind whatsoever during the tender
process or during the execution of the contract.
2. The Bidder / Contractor will not enter with other Bidders into any undisclosed
agreement or understanding, whether formal or informal. This applies in
particular to prices, specifications, certifications, subsidiary contracts,
submission or non-submission of bids or any other actions to restrict
competitiveness or to introduce cartelisation in the bidding process.
3. The Bidder / Contractor will not commit any offence under the relevant Anticorruption Laws of India; further the Bidder / Contractor will not use
improperly, for purposes of competition or personal gain, or pass on to others,
any information or document provided by the Principal as part of the business
relationship, regarding plans, technical proposals and business details,
including information contained or transmitted electronically.
4. The Bidder / Contractor will, when presenting his bid, disclose any and all
payment he has made, is committed to or intends to make to agents, brokers or
any other intermediaries in connection with the award of the contract.
(2)
The Bidder / Contractor will not instigate third persons to commit offences outlined
above or be an accessory to such offences.
Section 3-Disqualification from tender process and exclusion from future contracts
If the Bidder, before contract award has committed a transgression through a violation of
Section 2 or in any other form such as to put his reliability or credibility as Bidder into
question, the Principal is entitled to disqualify the Bidder from the tender process or to
terminate the contract, if already signed, for such reason.
(1)
If the Bidder/Contractor has committed a transgression through a violation of Section

2 such as to put his reliability or credibility into question, the Principal is entitled also
to exclude the Bidder / Contractor from future contract award processes. The
imposition and duration of the exclusion will be determined by the severity of the
transgression. The severity will be determined by the circumstances of the case, in
particular the number of transgressions, the position of the transgressors within the
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company hierarchy of the Bidder and the amount of the damage. The exclusion will be
imposed for a minimum of 6 months and maximum of 3 years.
(2)
A transgression is considered to have occurred if the Principal after due consideration

of the available evidence, concludes that no reasonables doubt is possible.
(3)
The Bidder accepts and undertakes to respect and uphold the Principals absolute right
to resort to and impose such exclusion and further accepts and undertakes not to
challenge or question such exclusion on any ground, including the lack of any hearing
before the decision to resort to such exclusion is taken. This undertaking is given
freely and after obtaining independent legal advice.
(4)
If the Bidder / Contractor can prove that he has restored / recouped the damage caused
by him and has installed a suitable corruption prevention system, the Principal may
revoke the exclusion prematurely.
Section 4 Compensation for Damages

(1)
If the Principal has disqualified the Bidder from the tender process prior to the award
according to Section 3, the Principal is entitled to demand and recover from the
Bidder liquidated damages equivalent to Earnest Money Deposit/Bid Security.
(2)
If the Principal has terminated the contract according to Section 3, or if the Principle is
entitled to terminate the contract according to Section 3, the Principal shall be entitled
to demand and recover from the Contractor liquidated damages equivalent to Security
Deposit / Performance Bank Guarantee.
(3)
The bidder agrees and undertakes to pay the said amounts without protest or demur
subject only to condition that if the Bidder / Contractor can prove and establish that
the exclusion of the Bidder from the tender process or the termination of the contract
after the contract award has caused no damage or less damage than the amount of the
liquidated damages, the Bidder / Contractor shall compensate the Principal only to the
extent of the damage in the amount proved.
Section 5 Previous Transgression

(1)
The Bidder declares that no previous transgression occurred in the last 3 years with
any other Company in any country conforming to the TI approach or with any other
Public Sector Enterprise in India that could justify his exclusion from the tender
process.
(2)
If the Bidder makes incorrect statement on this subject, he can be disqualified from
the tender process or the contract, if already awarded, can be terminated for such
reason.
Section 6 Equal treatment of all Bidders / Contractors / Subcontractors
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(1)
The Bidder / Contractor undertakes to demand from all subcontractors a commitment

in conformity with this Integrity Pact, and to submit it to the Principal before contract
signing.
(2)
The Principal will enter into agreements with identical conditions as this one with all
Bidders, Contractors and Subcontractors.
(3)
The Principal will disqualify from the tender process all bidders who do not sign this
Pact or violate its provisions.
Section 7 Criminal charges against violating idders/Contractors/Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of
an employee or a representative or an associate of a Bidder, Contractor or Subcontractor
which constitutes corruption, or if the Principal has substantive suspicion in this regard, the
Principal will inform the Vigilance Office.
Section 8 External Independent Monitor / Monitors (to be decided by the
Chairperson of the Principal)
(1)
The Principal appoints competent and credible External Independent Monitor for
this
Pact.
#
The
Principal
has
nominated
Shri
/Smt.
______________________________________as
External
Independent
Monitor(s) for the purpose of administration of this Pact. The task of the
Monitor is to review independently and objectively, whether and to what extent the
parties comply with the obligations under this agreement.
(2)
The Monitor is not subject to instructions by the representatives of the parties and
performs his functions neutrally and independently. He reports to the Chairperson of
the Board of the Principal.
Section 9 Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor 12
months after the last payment under the respective contract, and for all other Bidders 6
months after the contract has been awarded.
If any claim is made / lodged during this time, the same shall be binding and continue to be
valid despite the lapse of this pact as specified above, unless it is discharged / determined by
Chairperson of the Principal.
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Section 10 Other provisions

(1)
This agreement is subject to Indian Law. Place of performance and jurisdiction is the
Registered Office of the Principal, i.e. Mumbai. The Arbitration clause provided in
the main tender document / contract shall not be applicable for any issue / dispute
arising under Integrity Pact.
(2)
Changes and supplements as well as termination notices need to be made in writing.

Side agreements have not been made.
(3)
If the Contractor is a partnership or a consortium, this agreement must be signed by

all partners or consortium members.
(4)
Should one or several provisions of this agreement turn out to be invalid, the
remainder of this agreement remains valid. In this case, the parties will strive to come
to an agreement to their original intentions.
-----------------------------
-----------------------------
For the Principal
For the Bidder/Contractor
Place
Witness1:
Date
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SECTION 12
HPCL FORMATS
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BANK GUARANTEE FOR ADVANCES

(on non-judicial stamp paper of appropriate value)
To,
Hindustan Petroleum Corporation Ltd.,
(Address as applicable)
In CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION
LIMITED, a Government of India Company registered under the Companies Act 1956,
having its registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called
"the Corporation" which expression shall include its successors in business and assigns)
having placed an order on Messrs ___________________ a partnership firm/sole proprietor
business/ a company registered under the Companies Act, 1956 having its office at
_______________________ (hereinafter called "the Supplier" which expression shall include
its successors and assigns) vide Order No. ____________ dated _________
(hereinafter called "the Order" which expression shall include any mendments/alterations
thereto as issued by "the Corporation") for the supply of goods/to the execution of Service for
"the Corporation" and having agreed to pay the supplier as and by way of advance upto a sum
of Rs. _________ (Rupees ____________________________________ only ) being _____
% of the value of the order in terms of "the Order" on production of an acceptable Bank
Guarantee
for
an
amount
of
Rs.
____________
(Rupees
__________________________________ only)
1. We, ____________________ Bank having office at _________________(hereafter

referred to as "the Bank") do at the request and on behalf of "the Supplier's" hereby agree to
pay "the Corporation" without any demur on first demand an amount not exceeding Rs.
_________ (Rs. ______________________ only) against any loss or damage, costs, charges
and expenses caused to or suffered or would be caused to or suffered by "the Corporation" by
reason of any breach on the part of "the Supplier" of any of the terms and conditions of the
said order.
2. We, _______________ Bank further agree that "the Corporation" shall be sole judge
whether the said "Supplier" has committed breach of any of the terms and conditions of "the
Order" and the extent of loss, damage, cost charges and expenses suffered or incurred or
would be suffered or incurred by "the Corporation" on account thereof and we waive in
favour of "the Corporation" all the rights and defences to which we as guarantors and/or "the
Supplier" may be entitled to.
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3. We, ___________________ Bank further agree that the amount demanded by "the
Corporation" as such shall be final and binding on "the Bank" as to "the Bank's" liability
to pay and amount demanded and "the Bank" undertake to pay "the Corporation" the amount
so demanded on first demand and without any demur notwithstanding any dispute raised by
"the Supplier" or any suit or other legal proceedings including arbitration pending before any
court tribunal or arbitrator relating thereto, our liability under this guarantee being absolute
and unconditional. (We __________________
Bank further agree that the guarantee herein contained shall remain in full force and
continue to have full effect so long as the said amount remains unadjusted, provided,
however, the value of the guarantee shall progressively reduce upon any adjustments being
made by "the Corporation" against the said advance and "the Corporation" rights shall extend
only to the value of the unadjusted amount.
4. We, __________________ Bank further agree with "the Corporation" that "the
Corporation" shall have the fullest liberty without our consent and without affecting in
any manner our obligations hereunder to vary any of the terms and conditions of the said
"order"/or to extend time of performance by "the Supplier" from time to time or to postpone
for any time or from time to time any of the powers exercisable by "the Corporation" against
"the Supplier" and to forbear to enforce any of the terms and
conditions relating to "the Order" and we shall not be relieved from our liability by reason of
any such variation or extension being granted to "the Supplier" or for any forbearance, act or
omission on "the Supplier" or by any such matter or things whatsoever which under the law
relating to suretics would be for this provisions have the
effect of relieving us.
5. Not withstanding anything contained herein above :
i) Our liability under this guarantee shall not exceed Rs..........
ii) This Bank Guarantee shall be valid upto and including .......; and
iii) We are liable to pay the guarantee amount or any part thereof under this Bank
Guarantee only and only if you serve upon us a written claim or demand on or #
before the expiry of 30 days from the date of expiry of this guarantee
6. We, ________________ Bank further undertake not to revoke this guarantee during its
currency except with the previous consent of "the Corporation" in writing.
7. We, ____________________ Bank lastly agree that "the Bank" liability under this
guarantee shall not be affected by any change in the constitution of "the Supplier".
8. We, _________________ Bank has power to issue this guarantee in favour of "the
Corporation" in terms of the documents and/or the agreement/contract or MOU entered into
between"the supplier" and "the Bank" in this regard.
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IN WITNESS WHEREOF the Bank has executed this document on this

_______________day of ___________________
____________________________
(FOR _________ BANK)
(by its constituted attorney)
(signature of a person authorized
to sign on behalf of "the bank")
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(SPECIMEN)
BANK GUARANTEE IN LIEU OF EARNEST MONEY
(On Non-Judicial stamp paper of appropriate value)
TO : Hindustan Petroleum Corporation Limited

IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION

LIMITED a Government of India Company registered under the Companies Act, 1956,
having its registered office at 17, Jamshedji Tata Road, Bombay-20 (hereinafter called
"The Corporation" which expression shall include its successor in business and assigns)
issued a tender on Messrs. ................................................ a partnership firm/sole
proprietor business/a company registered under the Companies Act, 1956 having its
office at (hereinafter called "the Tenderer" which expression shall include its executors,
administrators and assigns) against Tender no............ dated .................... (hereinafter
called "the tender" which expression shall include any amendments/ alterations to "the
tender" issued by "the Corporation") for the supply of goods to/execution of services for
"the Corporation" and "the Corporation" having agreed not to insist upon immediate
payment of Earnest Money for the fulfilment of the said tender in
terms thereof on production of an acceptable Bank Guarantee for
an amount of Rs....... (Rupees ................................. only).
1. We, ................................... Bank having office at .....................................................
Bombay (hereinafter referred to as "the Bank" which expression shall include its
successors and assigns) at the request and on behalf of "the Tenderer" hereby agree to
pay to the Corporation without any demur on first demand an amount not exceeding
Rs........... (Rupees ...................................... only) against any loss or damage, costs,
charges and expenses caused to or suffered by "the Corporation" by reason of non
performance and fulfillment or for any breach on the part of "the Tenderer" of any of
the terms and conditions of the said "tender".
2. We, ........................................ Bank further agree that "the Corporation" shall be sole
Judge whether the said "Tenderer" has failed to perform or fulfill the said "tender" in
terms thereof or committed breach of any of the terms and conditions of "the order"
and the extent of loss, damage, cost, charges and expenses suffered or incurred or
would be suffered or incurred by "the Corporation" on account thereof and we waive
in favour of "the Corporation" all the rights and defences to which we as guarantors
and/or "the Tenderer" may be entitled to.
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3. We, ................................. Bank further agree that the amount demanded by "the
Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's
liability to pay and the amount demanded and "the Bank" to undertake to pay "the
Corporation" the amount so demanded on first demand and without any demur
notwithstanding any dispute raised by "the Tenderer" or any suit or other legal
proceedings including arbitration pending before any court, tribunal or arbitrator
relating thereto, our liability under this guarantee being absolute and unconditional.
4. We, ....................................... Bank further agree with "the Corporation" that "the
Corporation" shall have the fullest liberty without our consent and without affecting
in any manner our obligations hereunder to vary any of the terms and conditions of
the said "tender"/or to extend time of performance by "the Tenderer" from time to
time or to postpone for any time to time any of the powers exercisable by "the
Corporation" against "the Tenderer" and to forbear to enforce any of the terms and
conditions relating to "the tender" and we shall not be relieved from our liability by
reason of any such variation or extension being granted to "the Tenderer" or for any
forbearance, act or ommission on the part of "the Corporation" or any indulgence by
"the Corporation" to "the tenderer" or by any such matter or things whatsoever which
under the law relating to sureties would but for this provision have the effect of
relieving us.
5. NOTWITHSTANDING anything hereinbefore contained, our liability under this
Guarantee is restricted to Rs. ......... (Rupees....................................... only). Our
liability under this guarantee shall remain in force until expiration of six months
from the due date of opening of the said "tender". Unless a demand or claim under
this guarantee is made on us in writing within said period, that is, on or before
.................................... all rights of "the Corporation" under the said guarantee shall
be forfeited and we shall be relieved and discharged from all liabilities thereunder.
6. We, ........................................ Bank further undertake not to revoke this guarantee
during its
currency except with the previous consent of "the Corporation" in
Writing.
7. We, ......................................... Bank lastly agree that "the Bank" 's liability under this
guarantee shall not be affected by any change in the constitution of "the Tenderer".
8. "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms
of the documents and/or the Agreement/Contract or MOU entered into between "the
Tenderer" and "the Bank" in this regard.
- 227 of 237 -

SYSTEM
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Date: 18.12.2010
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IN WITNESS WHEREOF the Bank has executed this document on this ..........................
day of ........................
For ........................
Bank
(by its constituted
attorney)
(Signature of a person
authorised
to sign on behalf of "the
Bank")
- 228 of 237 -

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Date: 18.12.2010
Rev 0
BANK GUARANTEE FOR PERFORMANCE OF THE OBLIGATIONS OF

SUPPLIER /CONTRACTOR
(on non-judicial stamp paper of appropriate value)
To,
Hindustan Petroleum Corporation Ltd.,
IN CONSIDERATION OF THE HINDUSTAN PETROLEUM CORPORATION LTD.

a Government of India Company registered under the Companies Act,1956, having its
registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called "the
Corporation" which expression shall include its successors and assigns) having awarded
to M/s ___________________________________________________ a partnership
firm/sole proprietor business/a company registered under the Companies Act, 1956
having its office at ______________________________ (hereinafter referred to as "the
Supplier" which expression shall wherever the subject or context so permits includes its
successors and assigns) a supply contract in terms inter alia, of "the Corporation's" Order
No.____________ dated __________________ and the General purchase
conditions of "the Corporation" and upon the condition of "supplier's" furnishing
security for the performance of "the Supplier's" obligations and/or discharge of "the
supplier's" liability under and/or in connection with the said supply contract upto a sum
of Rs. ______________(Rupees_____________________) amounting to 10% (ten
percent) of the total contract value.
We, ______________________ (hereinafter called "the Bank" which expression shall
include its successors and assigns) hereby jointly and severally undertake and guarantee
to pay to "the Corporation" in rupees forthwith on demand in writing and without protest
or demur of any and all moneys anywise payable by "the Supplier" to "the Corporation"
under, in respect of or in connection with the said supply contract inclusive of all the
Corporation's losses and damage and costs, (inclusive between attorney and client)
charges, and expenses and other moneys anywise payable in respect of the above as
specified in any notice of demand made by "the Corporation" to the Bank with reference
to this Guarantee upto and aggregate limit of Rs.___________ (Rupees
__________________________ ) and "the Bank" hereby agrees with "the Corporation"
that:
1. This Guarantee/Undertaking shall be a continuing Guarantee /Undertaking and shall
remain valid and irrecoverable for all claims of "the Corporation" and liabilities of "the
Supplier" arising upto and until midnight of _______________
- 229 of 237 -

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2. This Guarantee/Undertaking shall be in addition to any other guarantee or security

whatsoever that "the Corporation" may now or any time anywise have in relation to "the
Supplier's obligation/liabilities under and/or connection with the said supply contract,
and "the Corporation" shall have full authority to take recourse to or enforce this
security in preference to the other security(ies) at its sole discretion and no failure on the
part of "the Corporation" to enforcing or requiring enforcement to any other security
shall have the effect of
releasing "the Bank" from its full liability hereunder.
3. "The Corporation" shall be at liberty without reference to "the Bank" and without
affecting the full liability of "the Bank" hereunder to take any other security in respect of
"the Supplier's" obligation and/or liabilities under or in connection with the said supply
contract and to vary the term vis-a-vis "the supplier" of the said supply contract or to
grant time and/or indulgence to "the Supplier" or to
reduce or to increase or otherwise vary the prices of the total contract value or to release
or to forebear from enforcement of all or any of the obligations of "the supplier" under
the said supply contract and/or the remedies of "the Corporation" under any other
security(ies) now or hereafter held by "the Corporation" and no such dealing(s),
variation(s) or other indulgence(s) or agreement(s) with "the supplier" or release of
forbearance whatsoever shall have the effect of releasing "the Bank" from its full
liability to "the Corporation" hereunder or of prejudicing rights of "the Corporation"
against "the Bank".
4. This Guarantee/Undertaking shall not be determined or affected by the liquidation or
winding up, dissolution or change of constitution or insolvency of "the supplier" but
shall in all respects and for all purposes be binding and operative until payment of all
moneys payable to "the Corporation" in terms hereof.
5. "The Bank" hereby waives all rights at any time inconsistent with the terms of this
Guarantee/Undertaking and the obligations of "the Bank" in terms hereof shall not be
anywise affected or suspended by reason of any dispute having been raised by "the
suppliers" (whether or not pending before any arbitrator, officer, tribunal or court) or
any denial of liability by "the supplier" or any other order of communication whatsoever
by "the supplier" stopping or preventing or purporting to stop or prevent any payment by
"the Bank" to "the Corporation" in terms hereof.
6. The amount stated in any notice of demand addressed by "the Corporation" to "the
Bank" as liable to be paid to "the Corporation" by "the supplier" or as suffered or
incurred by "the Corporation" on account of any losses or damages or costs,
charges/and/or expenses shall be as between "the Bank" and "the Corporation" be
- 230 of 237 -

SYSTEM
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Date: 18.12.2010
Rev 0
conclusive of the amount so liable to be paid to "the Corporation" or suffered or incurred

by "the Corporation", as the case may be, and payable by "the Bank" to "the
Corporation", in terms hereof.
i) Our liability under this guarantee shall not exceed Rs..........
ii) This Bank Guarantee shall be valid upto and including .......; and
iii) We are liable to pay the guarantee amount or any part thereof under this Bank
Guarantee only and only if you serve upon us a written claim or demand on or # before
the expiry of 30 days from the date of expiry of this guarantee.
of the documents and/or the agreement/contract or MOU entered into between "the
supplier" and "the Bank" in this regard.
IN WITNESS Where of __________________ Bank, has executed this document at

________________ on _______________ 200
____________________________ Bank
(by its constituted
attorney) (signature of a
person authorized to sign
on behalf of "the Bank")
- 231 of 237 -

SYSTEM
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Date: 18.12.2010
Rev 0
COMPOSITE BANK GUARANTEE FOR MOBILISATION ADVANCE,

SECURITY DEPOSIT/RETENTION MONEY/PERFORMANCE GUARANTEE
(On Non-Judicial stamp paper of appropriate value)
TO : Hindustan Petroleum Corporation Limited
IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION

LIMITED, a Government of India Company registered under the Companies Act, 1956,
having its registered office at 17, Jamshedji Tata Road, Bombay-20 (hereinafter called
"The Corporation" (which expression shall include its successor in business and assigns)
having placed an order on Messers ............................ a partnership firm/sole proprietor
business/a company registered under the Companies Act, 1956 having its office at
.............. (hereinafter called "the supplier" (which expression shall include executors,
administrators and assigns) vide order No....................... dated.............. (hereinafter
called "the order" which expression shall include any amendments/alterations to "the
order" issued by "the Corporation") for the supply of goods
to/execution of services for "the Corporation" and "the Corporation" having agreed :
a) not to insist upon immediate payment of Security deposit for
the fulfilment and performance of the said order
b) to pay "the supplier" as and by way of advance upto a sum of Rupees__________
(Rupees _____________________________ only) being ____% of the value of "the
order";
c) that "the supplier" shall furnish a security for the performance of "the supplier's"
obligations and/or discharge of "the supplier's" liability in connection with the said
"order"; and "the Corporation" having agreed with "the supplier" to accept a composite
Bank Guarantee for the mobilisation advance, security deposit, retention money and
performance guarantee.
We, .................................................... Bank having office at ............................................
(hereinafter referred to as "the Bank" which expression shall includes its successors and
assigns) at the request and on behalf of "the supplier" hereby agree to pay to "the
Corporation" without any demur on first demand an amount not exceeding Rs...........
(Rupees.............................only) against any loss or damage, costs, charges and expenses
caused to or suffered by "the Corporation" by reason of non performance and fulfilment
or for any breach on the part of "the supplier" of any of the terms and conditions of the
said "order".
- 232 of 237 -

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2. We, ............................. Bank further agree that "the Corporation" shall be sole judge
whether the said "Supplier" has failed to perform or fulfill the said "order" in terms
thereof or committed breach of any terms and conditions of "the order" and the extent of
loss, damage, cost, charges and expenses suffered or incurred or would be suffered or
incurred by "the Corporation" on account thereof and we waive in the favour of "the
Corporation" all the rights and defences to which we as guarantors and/or "the Supplier"
may be entitled to.
3. We, ................................. Bank further agree that the amount demanded by "the
Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's
liability to pay and the amount demanded and "the Bank" undertake to pay "the
Corporation" the amount so demanded on first demand and without any demur
notwithstanding any
dispute raised by "the Supplier" or any suit or other legal proceedings including
arbitration pending before any court,tribunal or arbitrator relating thereto, our liability
under this guarantee being absolute and unconditional.
4. We, .................................. Bank further agree
with
"the Corporation" that "the Corporation" shall have the fullest liberty without our
consent and without affecting in any manner our obligations hereunder to vary any of
the terms and conditions of the said "order"/or to extend time of performance by "the
Supplier" from time to time or to postpone for any time to time any of the powers
exercisable
by "the Corporation" against "the Supplier" and to forbear to enforce any of the terms
and conditions relating to "the order" and we shall not be relieved from our liability by
reason of any such variation or extension being granted to "the Supplier" or for any
forbearance, act or ommission on the part of "the Corporation" or any indulgence by
"the
Corporation" to "the Supplier" or by any such matter or things whatsoever which under
the law relating to sureties would but for this provision have the effect of relieving us.
5. However, it has been agreed between "the Supplier" and "the Corporation" that there
shall be only one Composite Bank Guarantee for both the advance and security deposit
performance guarantee/Retention Money @ of ____% valid till the end of the defects
liability period as per the terms of the P.O. No. _______________ dated
______________ and that in proportion with the recovery of advance @ ______% per
bill the same amount/value automatically stands credited to the defects liability
account/security deposit or retention money as the case may be and will continue to be
credited/treated till the entire advance of Rs._______________________ is fully
recovered from the running bills and from the date of full recovery of the advance of
- 233 of 237 -

SYSTEM
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Rs.__________________ this guarantee automatically, shall stand valid towards the

____% retention money/defects liability, fully valid in all
respects unto a further period of 3 (three) months, as per the Purchase Order of "the
Corporation".

i)
Our liability under this guarantee shall not exceed Rs..........
ii) This Bank Guarantee shall be valid upto and including .......;
and
iii) We are liable to pay the guarantee amount or any part thereof
under this Bank
Guarantee only and only if you serve upon us a
written claim or demand on or
before the expiry of 30 days from
the date of expiry of this guarantee.
7. We, ........................................ Bank further
undertake not to revoke this guarantee during its currency except with the previous
consent of "the Corporation" in writing.
8. We, ......................................... Bank lastly agree that "the Bank"'s liability under this
guarantee shall not be affected by any change in the constitution of "the Supplier".
of the documents and/or the Agreement/Contract or MOU entered into between "the
Supplier" and "the Bank" in this regard.
IN WITNESS WHEREOF the Bank has executed this document on this

............................. day of ...........................
For ........................ Bank

(by its constituted attorney)
(Signature of a person authorised
to sign on behalf of "the Bank")*
- 234 of 237 -

SYSTEM
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Date: 18.12.2010
Rev 0
INDEMNITY BOND
(TO BE NOTORISED AND ON STAMP PAPER OF APPROPRIATE VALUE)
TO,
HINDUSTAN PETROLEUM CORPN. LTD.
Dear Sirs,
WHEREAS Hindustan Petroleum Corporation Limited, a Government of India
Company, registered under the Companies Act, 1956, having its Registered Office at 17,
Jamshedji Tata Road, Bombay 400020 (hereinafter called "the Indemnified" which
expression shall include its successors and assigns) has awarded to M/s.
.......................................... a Partnership Firm/Sole Proprietor Business/a company
having its Registered Office at ....................................................... (hereinafter called
"the Indemnifier", which expression shall include its successors and assigns) a contract
for conditions set out, inter-alia, in "the Indemnified" 's Purchase Order No.
............................. dated .................. (hereinafter referred to as "The Said Contract") to
"the Indemnifier".
AND WHEREAS "the Indemnified" has agreed to supply to "the Indemnifier" raw
material/components to the value of Rs.........(Rupees .............................................. only)
for incorporation in fabrication by "the Indemnifier" in terms of "the said contract", the
components/raw material to be supplied by "the Indemnified" to "the Indemnifier" for
the said fabrication, (hereinafter, for the sake of brevity, referred to as "the said
material") and pending fabrication and delivery at job-site of the completed fabricated
work(s) incorporating "the said material" and accounting for "the said material" shall be
under the sole custody and charge of "the Indemnifier" and shall be kept, stored, altered,
worked upon and/or fabricated at the sole risk and expenses of "the Indemnifier" ;
As a Pre-condition to the supply of "the said material" by "the Indemnified" to "the
Indemnifier", the Indemnified" has required "the Indemnifier" to furnish to "the
Indemnified" security in the manner and upon terms and conditions hereinafter indicated
NOW THEREFORE, in consideration of the premises aforesaid "the Indemnifier" Shri
..................................., Shri ............................ all directors/partners/sole proprietor of
"the Indemnifier" in consideration of aforesaid "contract" hereby irrevocably and
unconditionally and jointly and severally undertake to idemnify and always keep "the
Indemnified" from and against all loss, damage and destruction (inclusive but not
limited to any or all loss or damage or destruction to or of "the said material" or any item
or part thereof) by theft, fire, flood, storm, tempest, lightning, explosion, storage,
chemical or physical action or reaction, bending, wrapping, exposure,rusting, faulty
- 235 of 237 -

SYSTEM
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Date: 18.12.2010
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workmanship, faulty fabrication or faulty method of technique of fabrication, riot, civil

commotion or other act
of omission or commission whatsoever within or beyond the control of "the
Indemnifier", misuse and misappropriation by "the Indemnifier's" servants and/or agents
whatsoever to, of or in "the said material" or any part or item thereof between the date
that the same or relative part or item thereof was supplied to "the Indemnifier" upto and
until the return to "the Indemnified" on due dates of "the said material" or relative part or
item thereof or completed fabricated work(s) incorporating the said material AND
jointly and severally undertake to pay to "the Indemnified" forthwith on first demand in
writing without protest or demur the value of "the said material" or item part thereof
lost, damaged, destroyed, misused and/or misappropriated, as the case may be, inclusive
of "the Indemnified" 's cost and expenses (inclusive but not limited to handling,
transportation, cartage, insurance, freight, packing and inspection costs and/or expenses)
as specified in the said demand.
AND "the Indemnifier" hereby agree with "the Indemnified" that :
1. This Indemnity shall remain valid and irrevocable until the settlement of all claims of
"the Indemnified" arising hereunder :
2. This Indemnity shall be in addition to any other Indemnity,Guarantee or Security
whatsoever that "the Indemnified" may now or any time anywise have in relation to "the
Indemnifier" 's bligations/liabilities under and/or in connection with the said contract
inclusive of "the said material" and "the Indemnified" shall have full authority to
take recourse to or enforce this security in preference to the other security (ies) at its sole
discretion, and no failure on the part of "the Indemnified" in enforcing or requiring
enforcement of any other security shall have the effect of releasing "the Indemnifier"
from its full liability hereunder :
3. "The Indemnified" shall be at liberty without reference to "the Indemnifier" and
without affecting the full liability of "the Indemnifier" hereunder to take any other such
security in respect of "the Indemnifier" 's obligations and/or liabilities under or in
connection with the "said contract" inclusive of "the said material" and to vary the terms
vis-avis "the Indemnifier" of "the said contract" or to grant time and/or indulgence to
"the Indemnifier" or to reduce or to increase or otherwise vary the prices or the total
contract value or the quantity, quality, description or value of the said material or to
release or to forbear from endorsement of all or any of the obligations of "the
Indemnifier" under the said contract (inclusive of anything in respect of "the said
material") and/or the remedies of "the Indemnified" under any other security(ies) now or
hereinafter held by "the Indemnified" and no such dealing(s), variations(s), reduction(s),
increase(s) or other indulgence(s) or arrangement(s) with "the Indemnifier" or release or
forbearance whatsoever shall have the effect of releasing "the Indemnifier" from their
full liability to "the Indemnified" hereunder or of anywise prejudicing rights of "the
- 236 of 237 -

SYSTEM
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Date: 18.12.2010
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Indemnified" against "the Indemnifier" and "the Indemnifier" hereby waive all rights, if
any,at any time, inconsistent with the terms of this Indemnity.
4. This Indemnity shall not be determined or affected by the liquidation or winding up,
dissolution, or change of constitution or insolvency of "the Indemnifier" and the
obligations of "the Indemnifier" in terms hereof shall not be anywise affected or
suspended by reason of any dispute or disputes having been raised by "the Indemnifier"
(whether now pending before any Arbitrator, Officer, Tribunal or Court) or any denial of
liability by "the Indemnifier" or any other order or communication whatsoever by "the
Indemnifier" stopping or preventing or purporting to stop or prevent any payment by
"the Indemnifier" to "the Indemnified" in terms hereof :
5. The mere statement made by or on behalf of "the Indemnified" in any notice or
demand or other writing addressed to "the Indemnifier" as to any of "the said material"
or item or part thereof supplied to "the Indemnifier" having been lost,damaged,
destroyed, misused or misappropriated while in the custody of "the Indemnifier" before
or after completion of the completed fabricated work(s) incorporating "the said material"
and delivery at job site thereof shall as between "the Indemnifier" and "the Indemnified"
be conclusive of the factum of "the said material" or item or part thereof having been
supplied to "the Indemnifier" and/or the loss, damage,destruction, misuse or
misappropriation thereof, as the case may be, while in the custody of "the Indemnifier"
and/or prior to the completion of the completed fabricated work(s)and delivery to job
site thereof without necessity on the part of "the Indemnified" to produce any
documentary proof or other evidence whatsoever in support of this;
6. The amount stated in any notice of demand addressed by "the Indemnified" to "the
Indemnifier" as the value of any of "the said material", lost, damaged, destroyed or
misused or misappropriated, inclusive relative to the cost and expenses incurred by "the
Indemnified" in connection therewith shall as between "the Indemnifier" and "the
Indemnified" be conclusive of the value of such "said material" and the said costs and
expenses as also of the amount liable to be paid by "the Indemnifer" to "the
Indemnified" in terms and for the purpose of, without necessity for "the Indemnfied" to
produce any voucher, bill or other documentation or evidence whatsoever in support
thereof.
In witness whereof "the Indemnifier" have hereunto set and subscribed his hand this day
and year first hereinabove written in the presence of witnesses.
Yours faithfully,
1)
2)
3)
WITNESSES
1.
2
- 237 of 237 -

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HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

NOTICE INVITING TENDER (NIT)

PRE-QUALIFICATION CRITERIA IN DETAIL

SPECIAL CONDITIONS OF CONTRACT (SCC)

BREAKDOWN OF PRICE FOR

CIF VALUE OF IMPORTED ITEMS.

FORMAT B - EXCISE DUTY FOR INDIGENOUS SUPPLY.

Format for Exemptions & Deviations

Cut out slip

PROJECT DOCUMENT AND DRAWINGS

Long term remedial work proposed for HPCL subsea

GENERAL CONDITIONS OF CONTRACT (GCC)

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

Notice Inviting Tender (NIT)

Request for Quotation (RFQ) Number 21534102-501-ITB-021

Site Visit & Pre-Bid meeting

EMD Amount/ BID fee

Installation of Piled Supports for 48-Inch

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

Pre Qualification Criteria.

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

10) Period of Completion

2 months from date of Fax of Acceptance (FOA) but no work

11) Submission of BIDs:

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

PRE-QUALIFICATION CRITERIA IN DETAIL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

Planning, Scheduling and Monitoring.

e) The BIDDER must provide details of their barges/vessels/dredgers they proposes to

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

Residual engineering shall be performed by the Installation CONTRACTOR or

Details of the experience of the Associate

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

HINDUSTAN PETROLEUM CORPORATION LTD

Single Point Mooring System Project for Visakh Refinery of HPCL

CONTENTS OF BIDDING DOCUMENT

CLARIFICATION ON BIDDING DOCUMENT

ADDENDUM / CORRIGENDUM TO BIDDING DOCUMENT

CONFIDENTIALITY OF BID DOCUMENT

CORRECTION OF ERRORS IN PRICE BIDS

OWNERS RIGHT TO ACCEPT /REJECT ANY OR ALL BIDS

FORM OF BID / ADDITIONAL REQUIREMENT