GAIL (India) LIMITED

HAZIRA

TENDER FOR Hydro Testing of Insurance Line Pipes for HVJ and DUPL
at
GAIL (INDIA) LIMITED, HAZIRA

_________________________________________________________________

GAIL (India) Limited

Compressor Station Hazira, PO ONGCL,
Ichhapore – Magdhalla Road,
District Surat (Gujarat) Pin 394 518

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 GAIL (India) LIMITED
HAZIRA

Special condition of Contract

Sub: Hydro Testing of Line Pipes for HVJ and DUPL
1.0 INTRODUCTION

M/s GAIL (India) Limited is one of the major natural gas cross country pipeline operator in
India & is operating more than 8000 Kms of natural gas pipelines in India. These pipelines
are feeding Natural Gas to various Petrochemical, Fertilizer, LPG & Power Plants located
along the pipeline route. The pipeline is designed as per ASME B 31.8 & is having designed
pressure 92 Kg/Cm2 & pipe is operating as per designed condition. To cater the emergency
requirement GAIL (India) Ltd. intends:

• To carry the hydro testing of line pipes

• To take suitable remedial measures to prevent the line pipes from corrosion.
The details of line pipes are given in technical detail section.

2.0 OBJECTIVE
The main objective of this project is carrying out the hydro testing of line pipes to meet
emergency requirement. Please note that this is a Zero deviation tender.

3.0 TECHNICAL DETAIL OF PIPELINE

Technical detail of line pipes are given below

36" dia, Hazira -Vijaipur pipes API 5L GR X-60 22.23 mm thk

30" dia,”DUPL pipes API 5L GR X-70 19.1 mm thk

4.0 DETAILED SCOPE OF WORK

Hydro testing activities of line pipes shall be consisting but not limited to followings;

• Hydro testing of the line pipes, as per the details mentioned under the head standard
procedures.
• The line pipes for hydro testing are PE coated and all possible care must be taken to avoid
coating damage during the work. While handing over the pipeline to contractor for hydro
testing, a joint inspection by GAIL’s representative & contractor shall be done to check the
condition of coating.
In case of damage of coating occurred during transportation, handling, stacking etc by the
contractor then same shall be repaired as per direction of EIC without any extra cost to GAIL
including supply of all materials.

• Hydro test header shall be fabricated by contractor & pipes for header shall be supplied by
GAIL as free issue material & other material shall be arranged by contractor. However, after
hydro testing header shall be handed over to GAIL and no payment shall be made for this,
thus rate quoted shall be inclusive of all these factors.
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• All the welding works including edge preparation etc. required for hydro testing of pipes
shall be done by contractor & all the resources / consumables including welding machine,
generator, hydro testing pumps, water, manpower etc. shall be arranged by the contractor.
• Hydro testing may be done either by welding of hydro test header in each pipe or series of
pipes may be welded together for hydro testing. However, due to space constrain it will not
be possible to carry out hydro testing of more than hundred (100) meter of length in a single
section. Hydro testing shall be done near pipe yard only & space available shall be used for
hydro testing. While utilizing the space for hydro testing care must be taken for approach to
pipe yard & free movement ofvehicles.
• Any edge /surface preparation for welding, bevelling etc. and cleaning of pipeline
required for doing the hydro testing shall be done by the contractor.
• Hydro testing shall be done around at 138 Kg/cm2 pressure & hold time shall be minimum
six (06) hours. Pressure recording from electronic data recorder shall be done & graph
plotted from data recorder shall be submitted along with hydro testing report.
• Cleaning, grading of area, where hydro testing is to be done shall be done by the
contractor.
• After hydro testing each pipe shall be cut & bevelled. Ultrasonic testing of heat affected
zone shall be done to check lamination. The bevelling shall be done as per instruction of EIC.
• Ends of the pipes shall be covered by suitable end seal and no extra payment will be made
for this.
• Writing of all necessary information on hydro tested pipes by paints as per direction of EIC.
Two nos of board to be painted of the size 2’ x 3’ and details as given by EIC to be painted
on it and to be installed near the pipes.
• The work shall be treated as complete after completing the work in all respects as per
specifications, conditions and as directed by EIC. It is contractor’s responsibility to clean and
restore the site to the original conditions to the specification of EIC or his authorized
representative.
• Rate quoted should be inclusive of all the above factors as well as other factors required
for completing the job in all respect & same is not mentioned in the tender document. No
separate payment shall be made on this regards.
• The line pipes for hydro testing are PE coated and all possible care must be taken to avoid
coating damage during the work. While handing over the pipeline to contractor for
execution of work, a joint inspection by GAIL’s representative & contractor shall be done
to check the condition of coating. In case of damage of coating occurred during
transportation, handling, stacking etc. by the contractor then same shall be repaired as
per direction of EIC without any extra cost to GAIL including supply of all materials.
· End cap for the line pipes shall be fabricated / supplied and installed by the
contractor.

5.0 WORK PROCEDURE/ HYDROSTATIC TEST PROCEDURE

5.1 Before commencement of work, contractor shall submit a hydro test procedure in
detail for the above mentioned line pipe for the approval of EIC. However, a general
guideline of hydro testing is given below:
Hydro testing shall be done as per guide line given in API-1110.
The line pipe shall be hydrostatically tested at pressure 138 Kg/Cm2; however, the
maximum hydrostatic pressure shall not exceed the pressure required to produce a
hoop stress equal to 95 % of SMYS of the pipe material based on minimum wall
thickness in the test section.
The test duration shall be a minimum 06 (six) hours.

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Pressure variations during testing shall be acceptable, if caused by factors other than
leakage, like temperature variations.
Welding shall be done as per API 1104. Only qualified welder shall be deputed on the
site. Welder qualified by EIL/BV/Tractabel/Mecon/JP Kenny for welding of similar
line pipes shall be acceptable & welder should not be idle for more than six months.
Before starting welding, contractor shall submit the welding procedure as per API
1104 for approval of EIC. Contractor shall also submit the detail of electrode (Advani
orlikon,ESAB, D & H and Lincoln make only) to be used along with their batch test
certificate.
5.2 Hydro testing procedure to be submitted by bidder shall also have following information
in addition to information given in 5.1.
A schematic diagram indicating all fillings, vents, valves, temporary connections and other
provision of test header. The diagram shall also indicate injection locations, intake and
discharge lines.
Estimated amount of test water, water sources.
Water filling and disposal procedures.
Pressure testing procedure including a complete description of all proposed equipment and
Instruments (Including spares), their location and set-up and proposed system for
observation and recording of data during the pressure test.
Procedure for deflection and location of leaks.
5.3 The entire work shall be carried out in the presence of GAIL’s authorized representative
deputed by the EIC
5.4 Before stacking, holiday testing of line pipes shall be done & if defect found shall be
repaired. However, material required for repairing the same shall be supplied by GAIL as
free issue material.
Marking of tested pipes with paints for identification and be stacked it separately
thickness/Grade wise OR as directed by the EIC at the designated area without any extra
cost.
5.5 Necessary clearance from competent authority shall be obtained by the contractor to
carry out the job.

5.6 Entire area shall be barricaded by means of barricading tapes.

5.7 Contractor shall also submit the detail of equipments to be deployed on the site.
Minimum recourses to be deployed shall be following but not limited;
Crane/hydra/ side boom of appropriate/suitable capacity for lifting of pipes.
Welding machines along with power sources & related tools, tackles, equipment:
Minimum two numbers of variable speed positive displacement pumps.
Portable tanks of sufficient size to provide a continuous supply of water to the pump during
pressurizing.
Pressure gauges of suitable pressure range and accuracy.
Dead weight testers with an accuracy of 0.01 bar measuring in increments of 0.05 bars
provide with a calibration certificates not older than one month.
Pressure recording charts.
Temperature recorders.

5.8 Identity cards should be issued to all the persons deployed by the contractor for carrying
out the job. A list of all the persons deployed shall be given to EIC prior to commencement
of work.

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5.9 GAIL and its representative will have absolute authority to inspect the online system to
cross check the reported results at any time with or without notice to the contractor

6.0 WATER AND POWER SUPPLY

Water will be supplied by GAIL but the power will be arranged by the contractor.

7.0 TERMS OF PAYMENT

7.1 GAIL shall pay for the services rendered as per stipulation in the tender through e-
banking only. Contractor is requested to submit the bank details in the prescribed format as
given.All bank charges of Contractor's bankers shall be to the Contractor's account.
7.2 Contractor will invoice GAIL according to the terms and conditions provided in the
tender.
7.3 Contractor shall submit his invoices in triplicate to the Owner’s representative monthly
in the manner as instructed by Owner. Each invoice will be supported by documentation
acceptable to Owner and certified by the Owner’s representative. Payments made by owner
to the contractor for any part of the work shall not deem that the Owner has accepted the
work. The progress payment shall be considered only as an advance against the work done.
However these payments shall be finally adjusted against full and final contract value to be
made to the contractor.
7.4 Payment will be made against the invoice to be submitted by Contractor after
completion of the job in all respect. Contractor shall furnish along with final bill, the
challan/receipt for the payment made to the RPFC for the preceding months.

8.0 EQUIPMENT, TOOLS & TACKLES

Contractor shall be solely responsible for making available for executing the work, all
requisite Construction Equipments, Special Aids, Cranes, Tools, Tackles and testing
equipments and appliances.Such construction equipments etc. shall be subject to
examination by owner and approval for the same being in first class operating condition. Any
discrepancies pointed out by owner shall be immediately got rectified, repaired or the
equipment replaced altogether, by contractor. Owner shall not in any way be
responsible for providing any such equipment, machinery, tools and tackles, etc. The owner
reserves the right to rearrange such deployment depending upon the progress and priority of
work in various sections.
9.0 MATERIALS
All materials to be brought by the contractor must be of good quality.
The "Schedule of Rates [SOR]" shall be read in conjunction with "SCC", "GCC", Specifications
& Scope of Work" and any other document forming a part of this Contract. The quantities
indicated in the "SOR" for the various items are only approximate / indicative, and are
subject to wide variations on both ways. GAIL reserves the right to interpolate or
extrapolate the rates for any new item of work not covered in "SOR" from the similar items
already available in "SOR". All the works, item-wise, shall be measured upon completion and
paid for at the contracted rates. In case, any activity, though specifically not covered in the
"SOR" description, but the same is covered under "Specifications & Scope of Work" or
required for completion of work in all respect, etc., no extra claim on this account shall be
entertained. If the quantities of any item(s) change to any extent due to any reason
whatsoever, the contractor shall be bound to execute them at the rates quoted by him. The
tender inviting authority also reserves the right to split the work in full or in part without
assigning any reason thereof. The decision of Engineer- In-Charge shall be final and binding
on the contractor in this regard.
10.0 SAFETY NORMS
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All safety rules and regulations /acts shall be strictly adhered as per Factory Act, 1948 and
existing safety rules as applicable in plant/Township. Contractor shall ensure that all safety
precautions required shall be observed at all times during the execution of the job.
Health, Safety and Environment (HSE) management requirement to be complied with by the
contractors during execution of work.
11 RESPONSIBILITY OF CONTRACTOR
All expenses towards mobilization at site and demobilization including bringing in
equipment, work force, materials, dismantling the equipment, clearing the site etc., shall
be deemed to be included in the price quoted and no separate payments on account
expenses shall be entertained. Contractor shall be solely responsible for executing the work
in all respect. Material, machine & manpower required for the completion of job shall be
solely in the scope of contractor. GAIL shall not in any way be responsible for providing any
such equipment, machinery, tools and tackles etc. GAIL is not responsible for any
accident/damage caused to the men, machine & materials of the contractor during the
course of attending the job. GAIL, at its own discretion, can split the total work amongst
more than one contractor, in case the same is found suitable / advantageous to GAIL. No
escalation /revision in rates, terms & condition will be entertained on this account.
Providing all qualified/skilled personnel to carry out the entire job as per specification
given in tender documents and all survey, other equipments, tools, tackles including
pipe/cable locator and all other necessary materials and facilities required to complete the
job to the entire satisfaction of the Company Representative in accordance with the
requirements of the tender document. Arranging, acquiring all data, access, permissions
and other activities/services required for and/or incidental to performing the work
tendered. Settling all compensation and disputes arising out of any damages caused by
Contractor or Contractor’s workmen during the execution of the work. Contractor shall
carryout all works in strict compliance with applicable documents enclosed with the
tender documents.
The scope of work shall also include any other item/work required to complete the work in
all respect as per specifications and instructions of Company Representative whether
specifically mentioned here in or not, but required to fulfill this work in all respect.
Wherever applicable, contractor shall obtain all necessary permission/clearance from
competent authority to carry out the job execution of the Contract. He shall also have
authority to reject all works, which do not conform to the

12. MATERIAL TO BE SUPPLIED BY CONTRACTOR

• All the materials, equipments, instruments, manpower (skilled, unskilled), consumables,
tools- tackles, end caps, all fittings including valves required to carry out the jobs are in
the scope of contractor. The contractor will furnish the details of the tools
tackles/equipments, instruments etc deployed at the site.
• All the material required (like nipple, weldolet/Sockolet/threadolet, valves etc) for
fabrication of test header shall be in the scope of contractor. However, line pipes
required for fabrication of test header shall be provided by GAIL as free issue material.
After test, the header to be handed over to GAIL.
• Any special tool-tackles, recorders, dead weight tester, pressure recorder/plotter, power
source etc., (duly calibrated along with valid calibration certificate) including any other
requisite materials for carrying out the work shall be arranged and brought to the site by
the contractor without any extra cost of GAIL.
The contractor shall arrange & deploy the requisite qualified manpower to carry out the
job mentioned in tender document.

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· Materials required for stacking & holding the pipes during welding & hydro testing. During
hydro testing, pipes shall be hold firmly to avoid any deflection/ movement and all the
arrangement shall be done by the contractor.
· Arrangements of Cranes, trailers, vehicles suitable for lifting and transportation of line
pipes to carry out the tendered works.
· Arrangement like hydro testing pumps, manpower, data recorder etc & other tools
required for hydro testing.
· Arrangement of electric power to carry out the awarded work.

13. INCOME TAX RECOVERY:

a. Income tax at the prevailing rates as applicable from time to time shall be
deducted from contractor bills as per Income Tax Act, and quoted rates shall be
deemed to include this.
b. Cost of any damage/loss of the Gail’s property by the contractor shall be
recovered; GAIL decision in this regard will be final, binding & conclusive.

14. LABOR LAW:

If the contractor is covered under the Contract Labor (Regulations & Abolition) Act, he
shall obtain a license from concerned office of the Labor Commissioner by payment of
necessary prescribed fee and deposit, if any, before starting the work under the
contract. Rates quoted by contractor shall be deemed to cover the costs for the same.

15. RATES:

a) The unit rates quoted should be kept firm and valid for two months from the
date of submission of tender offer and no escalation shall be permissible for
any reasons whatsoever after award of contract.
b) The quoted rates by contractor shall include all liabilities such as supervision,
wages, overtime, leave, bonus, increment, retrenchment compensation,
insurance and all other statutory payments, including providing of tools and
tackles, under contractor's scope of supply, overheads, profits etc. for which
no extra payment whatsoever will be made by GAIL.
c) The rates herein contained and agreed shall remain firm during whole of the
contract period and shall not be subjected to escalation or revision.
d) Contractor shall quote the rates in accordance to Schedule of Rates and shall
be inclusive of all taxes & duties.

16 SERVICE TAX:

The bid price should be inclusive of all taxes, duties as well as Service Tax and
Education Cess thereon. The bidder is required to mention the applicable rate of
Service Tax and cess there on as on the final due date of bid submission. Service Tax
and Cess thereon shall be paid as per the rate mentioned by the bidder in their offer
on submission of documentary evidence/invoice(s). In the event of statutory
variation on account of Service Tax and cess thereon within the contract period
(except variation on account of turnover), the same shall be to GAIL’s account against
documentary evidence. The bidder shall indicate in its bid the Service Tax
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Registration No. and in case the Service Tax registration no. is not available, the
bidder will give confirmation for obtaining registration with a copy of application for
registration.
The contractors liable to pay Service Tax for the work/services rendered to GAIL,
shall specifically mention the Service Tax registration No. in their Invoice(s). Further,
the amount and rate of Service Tax shall be separately and distinctly specified in the
Invoice(s).For payment of Service Tax, serially numbered invoice/bill shall be issued
by the service provider and should also specify following:
a) The name, address and registration number of the service provider
b) The name and address of the recipient of the taxable service.
c) Description, classification and value of taxable service provided and
d) The service tax payable on such services.
The above details are required to enable GAIL to avail Cenvat Credit for the Service
Tax payments.

It shall be the responsibility of the contractor to pass on the CENVAT Credit benefit to
GAIL, wherever applicable. In case GAIL loses any benefit / amount of CENVAT Credit,
due to any fault of the bidder (i.e. non submission of proper invoice timely), which
could otherwise have been availed by GAIL as per rules, the same shall be recoverable
from the contractor / not paid to the contractor
e. While quoting against the tender, bidder shall have the option to decide on the
method of valuation prescribed under the service tax rules, i.e. either on actual
service portion (where the value of service portion in the execution of a works
contracts shall be equivalent to the gross amount charged for the works contract less
the value of property in goods transferred in the execution of the said works
contracts) or deemed service portion (where the value has not been determined
under actual service portion).
f. Wherever service tax is to be paid on deemed service portion as per percentage
tabulated below, the bidder(s) shall indicate the value for service portion on which
the service tax is applicable.

works contracts service tax payable to

the person liable to
pay tax

original works forty percent

maintenance or repair or reconditioning or seventy percent

restoration or servicing of any goods,

other works contracts (including maintenance, sixty percent

repair, completion and finishing services such as
glazing, plastering, floor and wall tiling,
installation of electrical fittings of an immovable
property

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For the purpose of this rule, “original works” means:-

1) All new constructions;
2) All types of additions and alterations to abandoned or damaged structures on land
that are required to make them workable;
3) Erection, commissioning or installation of plant, machinery or equipment or
structures, whether pre-fabricated or otherwise
g. Wherever service tax is to be paid on deemed service portion as per percentage
prescribed above, the bidder(s) shall indicate the percentage (presently 40%, 60% or
70%) of the gross works contract value on which service tax is applicable.
h. Wherever the bidder opts for paying service tax on deemed service portion, the gross
works contract value for the purpose of payment of service tax shall mean the sum
total of the gross amount charged for the works contract and the fair market value
of all goods and services supplied in or in relation to the execution of the works
contract.
i. The fair market value of Free Issue Material (FIM) and services, wherever
applicable, are to be indicated upfront in the bidding documents. In the instant
case, it is Nil.
j. Bidders shall quote prices inclusive of all taxes and duties excluding service tax. In
other words, the amount of service tax shall not be included by the bidders in their
quoted price. However, bidder will indicate the details of applicable service tax as
mentioned above along with the breakup of the service tax payable by owner/GAIL
as service recipient, if applicable, as per the reverse charge rule of service tax.
k. In case a bidder does not provide any of the above requisite information, their bid
will be evaluated with highest applicable rate of service tax (presently 12.36%)
on total value of works contract.
l. i) Owner/GAIL will reimburse the service tax to the contractor at actuals against
submission of cenvatable invoices issued in accordance with service tax rules to
enable Owner/GAIL to claim cenvat credit of service tax paid. In case of any
variation in the executed quantities, the amount on which the service tax is
applicable shall be modified in same proportion.
Ii) The benefit of Cenvat credit of service tax quoted shall be considered for
evaluation of bids.

17 AHR ITEMS & EXTRA ITEMS:

AHR ITEMS: The items having rates more than 50% high from the estimate will be
treated as AHR items. The rate as such items will be restricted only for the BOQ
quantity. If the quantity of such items exceed above the BOQ quantity, the rate for
the exceeded quantity will be made at the lowest amongst the following rates:-
a) Rate as p[er SOR . quoted by the contractor.
b) Rate of the item, which shall be derived as follows;-
1.Based on the rates of machine and labour as available from the
contract(which includes contractors supervision , profit,overheads and
other expensis.)

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2.In case rates are not available in the contract, rates will be calculated
based on prevailing market rates plus 15 % to cover contractors profit.

EXTRA ITEMS: In case any item is not covered in the tender SOR, then the payment for
the same shall be made as per the following:
a) If the item is not covered in SOR but there is similar item in SOR then
rate will be derived from a similar item of SOR.
b) If the item is not covered in SOR and rate cannot be derived from similar
item of SOR then rate analysis will be made on the basis of prevailing
market rates plus 10% for contractor’s profit and overheads.

18 DEFECT LIABILITY PERIOD & SECURITY DEPOSIT:

Defects liability period shall be 3 months from the date of completion of contract works.
A sum of 7.5% (in the form of DD or Bank Guarantee) of the contract value shall be
deposited by the contractor as “Contract Performance Guarantee” with the OWNER
which will be refunded after the expiry of DEFECT LIABILITY PERIOD.

During defect liability period, if any deficiency/ defect noticed in the works, contractor
shall rectify and restore the same at his own risk and cost.

The security deposit shall remain at the entire disposal of the company as a security for
the satisfactory completion of defect liability period in accordance with the conditions of
contract.

No interest shall be payable by the company to the contractor for the amount of S.D.

Clause no.24 of GCC forms the part of this clause and shall be applicable.

19 CONTRACT PERIOD:

The duration of the contract for the contract shall be (02) months from the date of issue
of letter of intent/ work order. The jobs are to be carried out on the vicinity of the
running NG Pipeline, which will be intimated to the contractor in advance and accordingly
Contractor, shall mobilize to the site.

20 SUPERVISION OF WORK:

The contractor shall have one experienced supervisor. He should be able to manage site activities
while executing the job at site and guide his personnel to carry out the work as and when required
as per the instructions of the Engineer In charge. No extra payment will be made for providing
supervisor.

21 TRANSPORTATION/ CONVEYANCE:

The contractor shall make his own arrangement for the transportation of his men to the place of
work sites as mentioned in this document on all the days and time.

22 RIGHT TO GET SERVICES CARRIED OUT THROUGH OTHER AGENCIES:

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GAIL has right to accept similar services from other agencies at its discretion if the contractor, fails
to carryout the job as per scope of work mentioned in the tender document.

23 SUBLETTING OF CONTRACT:

No part of this contract nor any share or interest therein shall be in any manner or extent is
transferred or assigned or sublet, directly or indirectly to any person/firm or organization
whatsoever without due approval of Engineer – In- Charge.

24 GATEPASS/ IDENTITY CARD:

The contractor shall make/ renew at his own cost gate pass/ identity cards if so required by GAIL
for security or any other reasons. The GAIL may only endorse such passes on recommendation of
the contractor.

25 EMPLOYMENT LIABILITY:

a) The contractor shall be solely and exclusively responsible in engaging or employing persons
for the executions of the contract. All employees engaged by the contractor shall be on his
pay roll and be paid by him. GAIL will have no liability whatsoever concerning the
employees of the contractor. The contractor shall indemnify GAIL against all losses or
damages or liability arising out of or in the course of his employing persons or out of his
relations with the employees.
b) The contractor (which shall include the contracting firm/ company) shall be solely liable to
obtain and to abide by all necessary licenses/ permission from the concerned authorities as
provided under the various Labor Laws legislations including labor license from the
competent authority under the Contract Labor (Regulation & Abolition) Act, 1970.
c) The contractor shall indemnify the Company against all losses or damages caused to it on
account of acts of the personnel deployed by the contractor.
d) The contractor shall posses’ valid Provident Fund Code number.

26 WORKMEN'S COMPENSATION INSURANCE:

The contractor shall arrange to cover all his workmen under workmen's compensation insurance.

27 DOCUMENTS SUBMISSION WITH OFFER :

While submitting the offer, contractor should submit all the required documents as per the BEC
for the evaluation of the offer:

28 PRICE REDUCTION SCHEDULE:

If there is any delay in final completion of the work beyond the date of final completion of the
work as stipulated at clause no. 15 here-in above, the owner shall (without prejudice to any
other right to owner in this behalf) be entitled to a discount from the compensation / price
payable to the Contractor for the works calculated at the rate of half percent (1/2%) of the total
contract value for each week or part thereof that work remains incomplete beyond the date of
final completion for the work , or works as the case may be, at the site, subject to a maximum of
five percent (5%) of the total executed contract value.

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29 AGREEMENT:

Contractor shall execute an agreement on non-judicial stamp paper of requisite value after award
of work and acceptance of the same.

30 MOBILISATION ADVANCE

No advance shall be paid to the contractor.

.

i) Contractor shall ensure to arrange for the following facilities at the work site
a) Arrangement for First Aid.
b) Arrangement for Clean Drinking water.

ii) All injuries occurring on works whether minor or critical shall be reported in the
prescribed Work Accident Forms to the Engineer-in-charge and Site Engineer
immediately within half an hour of occurrence of the event, as per rules of the
corporation.
iii) All injuries occurring on works shall be initially treated at First Aid room and
ambulance service up to the nearest Govt. Hospital will be made available by
Contractor without any charge, if required.
iv) The Engineer-in-charge shall be kept informed by the Contractor on daily basis
regarding conditions, recovery / progress and date of joining in duty about the
persons who after being infected by critical injuries were firstly examined and
treated outside.

31. ENVIRONMENT MANAGEMENT:

GAIL Hazira is an ISO – 14001 certified unit. Environmental Management System of HVJ
requires that Contractors working on behalf of HVJ are able to demonstrate that their
employees have requisite training / awareness. Moreover, Contractors / Suppliers are required
to adhere to safe handling / transportation methods. Details in this regard are given below:
Awareness of Contractor’s Employee
i. The Contractor will impart Requisite awareness programme for their employees in
consultation with Engineer-in –Charge.
ii. The awareness programme would have emphasis on the environmental Policy,
objectives and targets of JLPL and significant environmental aspects of their work.
iii. If contractor fail to impart requisite training / awareness to their employees, the
Management will take necessary action as per the provisions of the contract.
Safe Handling/ Transportation Methods
i. The contractor's / suppliers will have to adhere to safe handling / transportation
methods. They will ensure compliance to the provisions of the Hazardous wastes
(management and Handling) rules, 1989, Manufacture, storage and import of
hazardous Chemical Rules, 1989 and other applicable legislative requirements.
ii. The contractors / suppliers will ensure that packaging, labeling and transportation of
materials is carried out in accordance with the provisions of Motor Vehicles Act 1988.
iii. The Contractors / suppliers will label the specified information on every container of
a hazardous chemical if any.
iv. The contractors / suppliers will provide relief in case of death or injury to any person
or damage to property from an accident occurring while handling / transporting the
materials on the principle of no fault.
v. If contractor /suppliers do not follow the instructions, the Management will take
necessary action as per the provisions of the contract.
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STATUTORY COMPLIANCE

1. The contractor shall obtain necessary insurance policy covering all risks such as
accidents, injuries, death likely to be caused to workers or to third person including
loss to the properties of Owner/GAIL or to some other agency and submit to Engineer-
In-Charge the insurance copy as and when asked by Engineer-In-Charge.
2. The contractor shall not employ or permit to be employed any person suffering from
any contagious, loathsome or infectious disease. The contractor shall get examine his
employees/Workers through a govt. doctor before deployment and thereafter arrange
periodic medical check up of his employees deployed under this contract. He should
submit a copy of doctor’s fitness certificate to the company for record purpose in
respect of his employees.
3. No worker of contractor (including contractor) be allowed to consume alcoholic drinks
or any narcotics within the plant premises. If found under the influence of above, the
contractor shall have to change/replace him failing which GAIL may terminate the
contract.
4. The contractor shall indemnify GAIL against all claims, demands, actions, cost and
charges etc brought by any Court, Competent Authority/ Statutory Authorities against
any act or acts of the contactor or his workers.
5. The contractor shall deploy the workers after verification of their character and
antecedents. In case any worker(s) is found having criminal record, he shall have to
be immediately replaced without assigning any reasons under intimation to Engineer-
In-Charge.
6. The Contractor shall be required to maintain all the relevant registers/documents and
also be responsible for required contributions in respect of his employees/ firm, as is
applicable under different labor Acts/ legislations.
7. The contractor shall be responsible for providing leave with wages/compensatory
holidays as per the applicable relevant Acts.
8. The contractor shall ensure payment of bonus to its employees under the Payment of
Bonus Act, 1965, which shall in no case, will be less than the minimum Bonus
prescribed under the Act from time to time.
9. The contractor shall require to obtain Labor License from Assistant Labor
Commissioner (Central), Vadodara to start with the work, if applicable.
10. The contractor shall pay the wages at the rates to his workers as per the Minimum
Wages Act as notified by the Regional Labor Commissioner (Central), Ahmedabad from
time to time. The Engineer in charge shall ensure that the contractor is making
payments of wages to its labors not less the wages notified by the appropriate
authorities from time to time.
11. i) The Contractor should produce necessary EPF Code before commencement of
work .
ii) The Contractor should produce necessary ESIC Code before commencement of
work or workmen who not covered under ESI Act, the Contractor should take
appropriate Workmen Compensation Insurance Policy and submit a copy of the same
to GAIL (India) Ltd.

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 GAIL (India) LIMITED
HAZIRA

12. The contractor shall require to deposit with PF authorities the PF deductions of its
workers well in time & submit a copy of challans to Owner/Engineer-In-Charge on
monthly/ Quarterly basis failing which owner will deduct from his bills the amount
equivalent to PF deductions with penalty under the Act.
13. The contractor shall obtain registration under Inter State Migration Labor Act if he
deploys and engages labors from outside Gujarat.
14. The contractor shall strictly comply with the various provision of Payment of Wages
Act, 1936, Workmen Compensation Act, 1923, Minimum Wages Act 1948, Contract
Labor (Regulation & Abolition) Act, 1970, Employees Provident Fund and
Miscellaneous Provisions Act, 1952, Employees State Insurance (ESI) Act, 1948, The
Inter State Migrant Workmen (Regulation of Employment & conditions of Service) Act,
1979, Building & other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996 etc., Payment of Bonus Act 1965, Maternity Benefit
Act,1961, Payment of Gratuity Act,1972, Equal Remuneration Act,1976, Factories Act
1948, Industrial Dispute Act,1947, Personal Injuries(Compensation Insurance)
Act,1963, Weekly Holidays Act,1942 etc. and various other Labour legislatures
including Gujarat State Acts & Rules, as in existence (at present in India) and as
amended & enforced from time to time.
15. The contractor shall comprehensively insure his employees working under him under
Workmen Compensation Act, 1923 during the period of contract and submit a copy of
it to EIC/GAIL.
16. The contractor shall ensure that he does not deploy any of his people below 18 years
of age for carrying out the contractual obligations.
17. In case GAIL incurs any liability towards payment of any dues, compensation cost
of any other liability of any kind whatsoever, due to non-fulfillment of statutory
provisions under any industrial/ Labor Laws by the bidder, the same shall be made
good by the bidder and GAIL shall have full right to recover and claim the same
from the bidder, from his outstanding bills or otherwise.
18. The bidder shall furnish all the requisite information from time to time to the
concerning authority and to GAIL, which may be required in connection with the
bidder‘s fulfillment of Legal/Statutory requirement under any Act and Rules in
force.
19. The bidder is liable to submit to GAIL a copy of inspection report received from
Statutory Authorities and comply with the given remarks and Compliance Report
Should be sent in specified time with a copy to GAIL.
20. A penalty shall be levied in case of repeated default by the Bidder for non
compliance of statutory obligations. In the event where GAIL being the Principal
Employer is liable to pay any dues arising out of non compliance of Statutory
obligations, then the same will be recovered from the Bidders together with
penalty as mentioned above and GAIL will have right to take suitable action
including termination of contract.
21. The persons to be engaged for the contract by the contractor/contracting firm
should be on the rolls of the contractors firm.
22. The contractor should issue photo identity card to all his employees deployed for
the said contract as per the prescribed format/ card.

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 GAIL (India) LIMITED
HAZIRA

23. The contractor shall adhere to safety norms/practice and avoid hazardous and
unsafe working conditions and shall comply with safety rules in force from time to
time at GAIL, Hazira. GAIL will not be held responsible for any loss or injury
caused for non compliance of safety rules by contractor or his employees.
24. The Bidder shall be solely responsible for payment of wages and other dues to the
personnel deployed by him latest by 7th of the subsequent month.
25. The Bidder shall indemnify the Company against all losses or damages, if any,
caused to it on account of acts of the personnel deployed by him.
26. The bidder shall ensure regular and effective supervision and controls of the
personnel deployed by him and give suitable direction for undertaking the
contractual obligations.
27. The contractor shall be solely responsible for the payment of wages and other dues
to the personnel, if any , deployed by him latest by 7th/10th day of the subsequent
month in the presence of Engineer in-Charge.
28. All personnel deployed by the contractor should be on the rolls of the contractor.
29. The contractor/Agency shall have its own staff for the contractual jobs
30. The contractor will employ male and female adult labor for the works as per the
JOB requirement.
31. The contractor shall ensure regular and effective supervision and control of the
personnel, if any, deployed by him and gives suitable direction for undertaking the
contractual obligations.
32. The personnel to be deputed by the contractor shall observe all security, fire and
safety rules of GAIL while at the site. His Work/Services will be supervised by the
supervisors of contractor. Contractor has to be strictly adhere to guidance,
instruction whenever required.
33. Contractor shall provide/issue proper identity cards for his employees to be
deputed by him for Work/Services, duly signed by the contractor or authorized
person on behalf of contractor . Also the contractor should obtain entry passes
from Security Dept. through ENGINEER-IN-CHARGE for his employees.
34. Contractor has to deploy the personnel with no past criminal records. Also the
contractor has to provide police verification for all the persons deployed by him.
35. All existing and amended safety / fire rules of GAIL are to be followed at the work
place.

36. Sub letting of work without prior written permission of GAIL:

No contractor shall sub let or assign any work in part or whole to any firm, individual,
partnership firm, Pvt. Ltd. Company, Proprietorship firm etc without the prior written
permission of Engineer-In-Charge nominated by GAIL. In case the contractor sublets or
assigns the contract in part or whole without the prior written permission of GAIL and
any claim preferred by any firm/ individual to GAIL that the main contactor has not
paid his or their dues/ payments, in that circumstances, GAIL shall without assigning
any reasons, withhold from the payments of contractor, the amount equivalent to the
claim amount of sub contractor/ individual/ vendor (s) etc. The same shall be
released to the contractor after contractor and Labor/ supplies/ sub contractor
jointly submits a joint written settlement to GAIL.
37. ARBITRATION:

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 GAIL (India) LIMITED
HAZIRA

37.1 All disputes or differences, whatsoever, arising between the parties hereto pertaining
to any part of the contract including its execution or concerning the works or
maintenance thereof of this Contract or to the rights or to liabilities of the parities or
arising out or in relation thereto whether during or after completion of the Contract
or whether before or after determination, foreclosure or breach of the Contract
(other than those in respect of which the decision of any person is by the Contract
expressed to be final and binding) shall after written notices by either party to the
Contract be referred for adjudication to a sole arbitrator to be appointed by GAIL as
herein after provided.
37.2 For the purpose of appointing the sole arbitrator referred to above the Appointing
Authority will send within thirty days of receipt of the notices, to the Contractor a
panel of three names, which are not connected with the work in question.
The contractor shall on receipt of the names as aforesaid, select any one of the
persons named to be appointed as a sole arbitrator and communicate his name to the
Appointing Authority within thirty days of receipt of names. The Appointing Authority
shall thereupon without any delay appoint the said person as the sole arbitrator. If
the contractor fails to communicate his choice for appointment of an Arbitrator, the
Appointing Authority shall do it on expiry of 30 days. The venue of arbitration shall be
New Delhi. The award of the Arbitrator shall be final and binding on both the parities.
Subject to aforesaid the previsions of the Indian Arbitration & Conciliation, Act, 1996
or any statutory modification or re-enactment thereof and the rules made there
under, and for the time being in force, shall apply to the arbitration proceeding under
this clause.
38 Submission of Indemnity bond:
The contractor will be required to submit an indemnity bond on a non-judicial stamp
paper duly notarized, indemnifying GAIL against all consequences which may arise out
of any case filed by any workers/Laborers/ vendors/ sub-contractor/ partner etc. who
may have been engaged by the Contractor directly or indirectly with or without
consent of GAIL for above works, which may be pending before any Court of law
including Quasi Judicial Authority, Competent Authority, Labour Court, Arbitrator,
Tribunal etc. at the time of completion of the said contract, on a Performa given by
GAIL.
39 JURISDICTION:
The contract shall be governed by and constructed according to the laws in force in
India. The contractor hereby submits to the jurisdiction of the Courts situated at
Surat (Gujarat) for the purpose of disputes, actions and proceedings arising out of the
Contract.
I have carefully read the special conditions of the contract serial from 1 to 39 above
and understood it. I will abide by the conditions set above. I also understand that this
is a part of the contract with GAIL.

SIGNATURE OF THE BIDDER WITH SEAL

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 GAIL (India) LIMITED
HAZIRA

INDEMNITY BOND

WHEREAS GAIL (India) LIMITED (hereinafter referred to as GAIL) which expression shall,
unless repugnant to the context include their legal representatives, successors and assigns,
having their Registered Office at 16, Bhikaiji Cama Place, R.K. Puram, New Delhi and its
Compressor plant under the name of GAIL (India) LIMITED, Hazira, District Surat (Gujarat)
has entered into a Contract with M/S……………………………………………. (Hereinafter referred to
as the (“Contractor”) which expression shall unless repugnant to the context include their
legal representatives, successors and assigns, having their Registered Office
at……………………………….and local office at ………………………for Rs.…………………for
………………………… in GAIL, Hazira and on the terms and conditions as set out, inter-alia in
the Work Order NO………………………………….Dated………………………… and various documents
forming part thereof hereinafter collectively referred to as the “Contract” which expression
shall include all amendments, modifications and /or variations thereto.

GAIL has also advised the Contractor to execute an Indemnity Bond in favor of GAIL
indemnifying it from all consequences which may arise out of any case filed by any workers/
Labors/ vendors/ sub-contractors/partner etc. who may have been engaged by the
Contractor directly or indirectly with or without consent of GAIL for above works, which may
be pending before any court of law including Quasi Judicial Authority, Competent Authority,
Labor Court, Arbitrator, Tribunal etc.

Now, therefore, in consideration of the promises a foresaid; the Contractor hereby

irrevocably and unconditionally undertakes to indemnify and keep indemnified GAIL from
any loss, which may arise out of any such contract/case. The Contractor undertake to
compensate to GAIL forthwith, on demand, without protest the loss suffered by GAIL
together direct/indirect expenses.
And the Contractor hereby agrees with GAIL that:

(i) This Indemnity Bond shall remain valid and irrevocable for all claims of GAIL arising
from any such contract/ case for which GAIL has been made partly until now or here-
in-after.
(ii) This Indemnity Bond shall not be discharged/ revoked by any change/ modification/
amendment/ deletion in the constitution of the firm/ contractor or any conditions
thereof including insolvency etc. of the Contractor but shall be in all respects and for
all purposes binding and operative until any claims for payment are settled by the
Contractor.

The under signed has full power to execute this Indemnity Bond on behalf of the Contractor
and the same stands valid.

SIGNED BY COMPETENT AUTHORITY

PLACE:
DATE:

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 GAIL (India) LIMITED
HAZIRA

INFORMATION ABOUT BIDDERS

(To be furnished with tenders)

1.0 IN CASE OF INDIVIDUAL

1.1 Name of Business :

1.2 Whether his business is registered :
1.3 Date of commencement of business :

2.0 IN CASE OF PARTNERSHIP

2.1 Name of Partners :

2.2 Whether the partnership is registered :
2.3 Date of establishment of firm :

3.0 Contact Details :

3.1 Land Line
3.2 Mobile
3.3 E Mail

Signature of Bidder

Name and Address of the Bidder

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 GAIL (India) LIMITED
HAZIRA

Annexure A
Real Time Gross Settlement (RTGS)/National Electronic funds transfer (NEFT) Mandate
Form
( To be issued on vendors letter head )
1. Vendor/customer Name:
2. Vendor/customer Code
3. Vendor /customerAddress:
4. Vendor/customer e-mail id
5. Particulars of bank account
a) Name of Bank
b) Name of branch
c) Branch code:
d) Address:
e) Telephone number:
0 Type of account (current/saving etc)
g) Account Number:
h) RTGS IFSC code of the bank branch
i) NEFT IFSC code of the bank branch
j) 9 digit MICR code

I/We hereby authorize GAIL(India) Limited to release any amount due to me/us in the bank
account as mentioned above. I/We hereby declare that the particulars given above are correct
and complete. If the transaction is delayed or lost because of incomplete or incorrect
information, we would not hold the GAIL(India) Limited responsible.

(Signature of vendor/customer)

BANK CERTIFICATE

We certify that -------- ----- has an Account no. --------- with us and we confirm that the details given
above are correct as per our records.

Bank stamp

Date (Signature of authorized officer of bank)

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