Section 4.

Particular Conditions of Contract

Of
Construction of 2 (Two) No. Multi-purpose Self Propelled Inland
Container Vessels

Instructions for completing the Particular Conditions of Contract are provided in italics in parenthesis for
the relevant GCC Clauses.

Amendments of, and Supplements to, Clauses in the General Conditions of

GCC Clause
Contract

GCC 1.1(j) The Contractor / Builder is

Khulna Shipyard Limited, Khulna
[Name, address, and name of authorized representative]

GCC 1.1(ff) The Procuring Entity is

Bangladesh Inland Water Transport Corporation ( BIWTC)
BIWTC Bhaban , 5 Dilkusha Commercial Area, Dhaka-1000, Bangladesh
[Name, address, and name of authorized representative]

GCC 1.1(gg) The Project Manager/Director is

Engr. Abdul Gafur Sarker, Executive Engineer (Mechanical).

Address: BIWTC, 5 Dilkusha C/A, Dhaka-1000.

[Name, address, and name of authorized representative]

GCC 1.1 (bb) The original Contract price is

Taka 37.87 crore only per Container vessel (Thirty seven crore eighty seven
lac). For 2 (two) No. container vessels contract price is Taka 75.74 crore only
(Seventy five crore seventy four lac including VAT & TAX.
[insert the amount in the NOA]

GCC 1.1(y) The Intended Completion Date for the 2 (Two) No. Multi-purpose Self
Propelled Inland Container Vessels shall be
18 (Eighteen) months upto the delivery date of the two vessels at Pangaon
Terminal, Dhaka.
[to be calculated from the Commencement Date]

GCC 1.1(kk) The Site is located at at the Yard of Khulna Shipyard Limited, Khulna

GCC 1.1(nn) The Start Date shall be

The primary start date shall be the date of singing of contract. The effective
start date shall be counted from the date of GA and Mid ship section drawing
 approval by the Class and BIWTC whichever occurs later.

[it is the last date when the Contractor shall commence execution of the Works under the Contract
reasonably immediately after the Commencement Date; refer to GCC Clause 40]

GCC 1.1(rr) The Works consist of

Model testing
Prepared Design & drawing
Keel laying
Procurement of engines, machineries, Life Savings Appliances (LSA)
& Fire Fighting Appliances (FFA), steel materials etc
Lofting work
Fabrication & erection of hull blocks,
Fabrication of superstructure work,
Installation of Engines, Machineries, electrical equipments,
LSA & FFA & commissioning
Carpentry works of accommodation & other areas,
Outfitting work & Painting work
Preliminary test trial & any other works that will needed for ---- and
commission of the vessel
Make the vessel classed by CLASS NK/GL with notation appropriated
for the plying route Dhaka-Chittagong-Dhaka and obtain the notation
.
Get the design and drawings approved by the team of the consultant,
BRTC, BUET
Construction of the vessel supervised by the team of the Consultants, BRTC,
BUET.

[state brief summary, including relationship to other Contracts under the Project]

GCC 2.5 The Sectional Completion Dates are:

The Sectional/total Completion of works 18 (Eighteen) months for two
vessels.
The works consists of five sectional phases which are as follows:
The 1st phase includes the approval of GA and mid ship section
drawing, keel laying of the vessel and the procurement of steel plates.

The 2nd phase includes L.C of the Main Engines, Propulsion systems
and Generating sets, and the bottom construction works of two vessels
upto double bottom.
 The 3rd phase includes the completion of ship hulll / hull blocks of
two vessels upto deck level but without deck.

The 4th phase includes installation of main engines, propulsion system

and generator sets on board and the launching of the vessels.

The 5th phase includes the completion of all accommodation works,

all pumps, anchors, windlass, steering gear, pipe line works, electrical
works, superstructure construction works, panelling works, air
conditioning works, hatch cover construction works, navigational
items fitting works, painting works, supply of loose items
satisfactorily, provisional & final test and trial, acceptance/delivery of
the vessels.

[state part of the works and the corresponding dates, if applicable]

GCC 3.1 The Procuring Entitys address for the purpose of communications under this contract is :
Contact person: Engr. Abdul Gafur Sarker
Executive Engineer & Project Director
Address: BIWTC Bhaban
5, Dilkusha, C/A, Dhaka-1000
Tel: 02-9563508
Fax: 880-2-9563653
E-mail address: [email protected].

The Contractors address for the purpose of communications under this contract is :
Contact person: Mr. -------,
Managing Director.

Address: Khulna Shipyard Limited, Khulna

Tel: 031-2501110/017
Fax: 031-2501123
E-mail address:

GCC 6.1 (j) Other documents forming part of the Contract are;
1. Work plan (BAR Chart) as forming the part of the Contract (Annexure-
1).

2. Technical specification and brochures of machinery/plant to be

incorporated in the works (Annexure-2).

3. Approved GA and Midship section drawing as forming the part of the

Contract.
4. Main engines, Auxiliary engines and steering gear system of submitted
BOQ and Maker list as forming the part of the Contract. Main engines
BHP may be needed more to develop required service speed at the loaded
condition.

5. The cost of inspection of the main engine in the Manufacturer plant in

the form of visit of at least four (04) team members of which two should
be from the consultant teams for each bidder should be included in the
offer of the price of the main engine to be submitted by Khulna Ship
Yard Limited (KSL) (Annexure -2, RDPP page no. 37-41)

6. Schedule of requirement (Annexure -3, RDPP 45-51) as forming the part

of the contract.

7. Based on the principal particulars offered by the bidder, an approval

must be taken from the consultant , BRTC, BUET regarding the
consistency among the final design, drawings, dimensions of the vessels,
operational draft, stability, speed, power etc ( Annexure 4, RDPP 67-73)

8. In order to ensure required engine power for the proposed hull form
model testing must be carried out in any ITTC approved model testing
lab after signing the agreement. After the model testing it is found that
higher engine power required attaining the required speed Bidder will
have to supply higher power engine. (Annexure -5, RDPP pp77-78)

9. Details of shipping and documents to be furnished by the Supplier

shall be:
Upon shipment, the builder shall notify the Purchaser and the Insurance
Company by e-mail or Fax the full details of the shipment, including contract
number. description of Goods, quantity, name of vessel, the bill of lading
number and date, port of loading, date of shipment, port of discharge, etc.
The Builder shall mail the following documents to the Purchaser, with a copy
to the Insurance Company:

(a) copies of Suppliers invoice showing the description of goods, quantity,

unit price, total amount (Including freight and insurance) -1 (one) copy

(b) 1 (one) copy of the negotiable, clean, on-board bill of lading marked
"freight prepaid" and 1 (one) copy of nonnegotiable bill of lading;
manufacturers/ suppliers warranty certificate (if any);

(c) copy of packing list identifying contents of each package -1 (one) copy

(d) insurance certificate -1 copy

(e) Manufactures /Suppliers warranty certificate - 1 copy

(f) Inspection report of the international reputed classification society - 1

copy
 (g) Certificate of origin. 1 copy

(h) Operation, Maintenance Manual & Parts Catalogue, Drawings of

container Vessel and installed engines & equipments (1+1) copy

(i) Declaration of warranty by the Builder/ Shipyard that the vessel is

delivered to the Purchaser free and clear of any liens, charges, claims,
mortgages or other encumbrances upon the Purchasers title thereto, and
in particular, that the vessel is absolutely free of all burdens in the nature
of import taxes or charges imposed by the Government of Bangladesh as
well as all liabilities of the Supplier and /or the Shipyard to its sub-
contractors.
The above documents shall be received by the Purchaser (Owner) during
arrival/partly before arrival of Container vessels at Pangaon, Dhaka, if not
handover, the Supplier will be responsible for any consequent expenses.

[list other documents viz. Schedule of other contractors, Schedule of Key Personnel, Site Investigation
Reports, relevant correspondences prior to signing of the Contract agreement etc.]

GCC 9.1 A Contractor or a Subcontractor that is a national of, or registered in, the following
countries are not eligible: ISRAEL

[state countries, if applicable]

GCC 9.2 Materials, Equipments Plants and supplies shall not have their origin in the following
countries: ISRAEL

[state countries, if applicable]

GCC 13.1 Possession of the Site or part(s) of the Site, to the Contractor shall be given on the
following date(s); Not Applicable (N/A)

[state date or dates of possession of site]

GCC 19.1 Following Key Personnel to carry out the functions stated in the Schedule shall be
employed by the Contractor;
1. Mr. Shahidul Islam, Deputy General Mnager (D & P)
2. Mr. Amal Krishna Roy, Additional Chief Engineer & Project Director
of container vessels, KSL, Khulna
3. Mr. Golam Nobee, Executive Engineer (Project Officer of container
vessels)
4. Mr. Shafiquzzaman, Executive Engineer ( Out Door section)

[insert name(s)]

GCC 21.1 Nominated Subcontractor(s) named below;

(To be informed by the Builder if employed):
 a) Subcontracting is of maximum twenty percent (20%) of the whole work

b) The container vessel shall be constructed within the premises of Khulna

Shipyard Ltd.

c) Sub-contractor must have experience for construction of IACS class

approved vessel

GCC 23.1 The Contractual matters between the Procuring Entity and the Contractor shall be
decided by Builder and BIWTC management

[state only if other than the Project Manager]

GCC 37.1 The minimum insurance cover shall be:

(a) The maximum deductible for insurance of the Works and of Plant and Materials is
Tk [state amount]
All risk insurance, including war risk, riots, and /or strikes shall be
acquired for 110% of the delivered cost of the goods on Warehouse to
warehouse basis.
Insurance of the container vessel shall be covered by the shipyard
insurance policy. All risk before delivery of the container vessels shall
be borne by the respective shipyards.
[the Contractor shall provide this amount at the time of Contract signing].

(b) The minimum cover for insurance of the Works and of Plant and Materials in
respect of the Contractors faulty design is Tk [state amount].
[the amount could be 110% of the value of the works, plant and materials that may be lost in a
worst case scenario].

(c) The maximum deductible for insurance of Equipment is Tk [state amount].

[the Contractor shall provide this amount at the time of Contract signing].

(d) The minimum cover for loss or damage to Equipment is Tk

110% of the replacement value of that equipment.
[the amount could be 110% of the replacement value of the equipment]

(e) The maximum deductible for insurance of other property is None.

[the Contractor shall state this amount at the time of Contract signing].

(f) The minimum cover for insurance of other property is Ten Percent (10%) of the
contact price.
[it is the responsibility of the Contractor to obtain adequate insurance cover for such risks
recommended value 10% of contract price].
 (g) The minimum cover for personal injury or death insurance:
(i) for the Contractors employees is as per the law and common practice in
Bangladesh.
(ii) and for third parties is as per the law and common practice in Bangladesh.
(iii) For the personnel (BIWTC) Tk.1.00 (one) Lac for injury & Tk.10.00
(Ten) Lac for death in the premises of KSY
Commencement Date of Works shall be as follows;
GCC 40.1

GA and Mid ship section Drawing approval date by the class and owner
which occurs later shall be considered as commencement date.

[insert different commencement dates for different parts of the Works, if deemed appropriate]

GCC 42.1 The Contractor/Builder shall submit a Programme / BAR CHART for the Works
within 07 (seven) days of signing the Contract.
[usually fifteen (15) days]

GCC 42.2 The period between Programme updates is : 30 days

[usually bi-monthly or quarterly depending on the nature of the Works]

GCC 42.3 The amount to be withheld for late submission of an updated Programme is BD
Tk.10,000/- (Ten thousand).

GCC 57.1 The Defects Liability Period is Twelve (12) Months ( 365 Days)
[usually Defect Liability Period is twelve (12) months to cover at least one complete monsoon season].

GCC 66.3 The particulars of the Bank Account nominated are as follows :

Title of the Account : Khulna shipyard Limited

Name of the Bank : [insert name with code, if any]
Name of the Branch : [insert branch name with code ,if any]
Account Number : [insert number]
Address : [insert location with district]
Tel :
Fax :
e-mail address :

[information furnished by the Contractor shall be substantiated by the concerned Bank and
authenticated by the Procuring Entity]

GCC 69.1(m) The following additional events shall also be the Compensation Events: NONE
[list events or state none ]
GCC 71.1 The Contract is not subject to price adjustment.

GCC 72.1 The proportion of payments to be retained is Five percent (5%)

(a) The proportion of payments retained is 5 [five] percent shall be deducted

from each bill payment as performance security and shall be released
after completion of defect liability period. This amount shall be paid after
completion of satisfactory warranty period 365 calendar days from the
date of delivery of the vessels upon submission of claim supported by the
completion certificate issued by the Owner. The cost of guarantee repairs
and docking/undocking cost (including fuel, hydraulic oil, Lub oil etc)
and also liquidity damages shall be paid by the builder as per terms &
condition of contract. Otherwise, the said cost and expenses shall be
adjusted from the retention money.

(b) It is mentioned here that the warranty of the container vessels shall not
cover mishandling of the equipments by the ships crews, grounding,
accident, wilful neglect of the ships crews, normal wear and tear, natural
calamities etc.
[state none if not applicable. If applicable then the proportion of Retention Money shall be equal to
the percentage-shortfall of ten (10) percent of Performance Security determined at the time of signing
the Contract. Again in case of unbalanced Tender or because of front loading, provision for Retention
Money shall not be applicable]

GCC 73.1 The amount of Liquidated Damages or in other words Delay Damages for the
uncompleted Works or any part thereof is 0.05 of ONE (1) percent of its Contract price
per day of delay.
a) The liquidated damages for the whole of the works are 0.05 of one (1)
percent per day of the final Contract price/ final bill ..
b) If the delivery time exceeds for any reason other than force majeure and
additional works the owner shall not pay slipway charge for those delay
days.
c) If the delay time is un-limited the owner reserves the right to cancel the
contract.

[usually the percent-rate of liquidated damages is set at between 0.05 and 0.10 of ONE (1) percent of its Contract
price per day of delay]
GCC 73.1 The maximum amount of Liquidated Damages for the uncompleted Works or any part
thereof is Ten percent (10%) of the final Contract price of the whole of the Works.
[ usually the total amount of liquidated damages shall not exceed ten (10) percent of the final Contract price for
the whole of the Works]

GCC 74.1 The Bonus for the whole of the Works is Zero percent (0%) of the final Contract price
per day.

The maximum amount of Bonus for the whole of the Works is Zero percent (0%) of the
final Contract price.

[if early completion would provide benefits to the Procuring Entity, this clause should remain,
otherwise state Not Applicable. The bonus is usually numerically equal to the Liquidated Damages]

GCC 75.1 The Advance Payment shall be Tk [insert amount] and shall be paid to the Contractor not
later than [insert date].
The advance payment is10% (ten percent) of the contract price shall be paid
upon submission of Bank Guarantee of equivalent amount from any schedule
Bank of Bangladesh within Fifteen (15) days from the date of signing of
contract.
[for 100 percent GoB funded procurement, advance payments are not recommended unless otherwise
specifically decided by the Government. An advance payment, if admissible, shall be made for
mobilisation, considering the nature of the works. The recommended maximum advance payment is ten
(10) percent of the original Contract price against an unconditional Bank Guarantee (Form PW3-10.)
On the contrary, advance payments may be applicable for procurements under aided projects]

The remainder 90% payment is to be paid in the instalment as mentioned

below. The reimbursement method of payment to be made to the supplier
under the contract shall be in Bangladeshi Taka in the following manner.

Contract Instal Percent- Conditions

Amount -ment age
1st 20% The 1st instalment amounting to 20%
(Twenty percent) of the Contract price shall
be paid against a certificate issued by the
BIWTC Consultant BRTC, BUET/Project
Director that the design of the vessel
alongwith GA, Midship, Lines Plan,
Stability calculation and speed power
calculation have been approved by the
concerned Classification Society and
BIWTC Consultant BRTC, BUET and keel
laying of the vessel have been completed
and all steel plates have been procured and
brought in the premises in the builder .
2nd 20% The 2nd instalment amounting to 20%
(Twenty percent) of the contract price shall
be paid against a certificate issued by the
concerned Classification Society and
BIWTC Consultant BRTC, BUET / Project
 Director that L.C of the Main Engines,
Propulsion systems and Generating sets have
been completed. And the bottom
construction works of two vessels (upto
double bottom) have been completed.
3rd 15% The 3rd instalment amounting to 15%
(Fifteen percent) of the contract price shall
be paid against a certificate issued by the
concerned Classification Society and
BIWTC Consultant BRTC, BUET / Project
Director that the ship hull / hull blocks of
two vessels have been completed upto deck
level but without deck.
4th 15% The 4th instalments amounting to 15%
(Fifteen percent) of the contract price shall
be paid against a certificate issued by the
concerned Classification Society and the
BIWTC Consultant BRTC, BUET/ Project
Director that inspection by the four
representatives of GOB, BIWTC including
at least two consultants from the consultant
team BRTC, BUET at the premises of the
engine manufacturer have made, main
engines, propulsion system and generating
sets are installed on board and the vessels
have been launched.

5th 20% The 5th instalment amounting to 20%

(Twenty percent) of contract price shall be
paid against a certificate issued by the
concerned Classification Society and the
BIWTC Consultant BRTC, BUET/ Project
Director that all items required to construct ,
installed and commission the vessels
including the accommodation works, all
pumps, anchors, windlass, steering gear,
pipe line works, electrical works,
superstructure construction works, panelling
works, air conditioning works, hatch cover
construction works, navigational items
fitting works, painting works, supply of
loose items has been completed
satisfactorily, provisional & final test and
trial has been completed,
acceptance/delivery of the vessels have been
completed and all drawings, manuals,
catalogues, documents and voice trail from
the Chittagong Dhaka- Chittagong at full
load condition with 15% sea margin and
 85% MCR have been completed and handed
over to the owner at the inland Terminal
Pangaon, Dhaka.
No interest shall be paid if payment is done on due time. Interest shall be paid
by the purchaser to the Builder for delay payment at the prevailing Bank
interest rate of Government and PPR- 2008.

GCC 77.2 The percentage for adjustment of Provisional Sums is 0% (Zero percent)
[state none, if not applicable. Usually covers the VAT, profit and overhead costs]

GCC 84.1 The date by which as-built drawings are required is [insert date]

The date by which operating and maintenance manuals are required is on the day of the
delivery of the vessel

GCC 84.2 The amount to be withheld for failing to produce as-built drawings and/or operating
and maintenance manuals by the date required is Tk 2.00 (Two) Lac

[usually a very nominal amount]

GCC 90.1 The percentage to apply to the contract value of the works not completed, representing
the Procuring Entitys additional cost for completing the uncompleted Works, is [state
percentage] percent.

[ usually between ten (10) to twenty (20) percent depending on the nature of the Works]

The item which is not done or completed by contractor, mentioned in

contracted BOQ and Specification, 1.5 (one and half) times the price
mentioned in the BOQ will be deducted by owner for the concerned item(s).

(a) Deadweight:
In the event that there is a deficiency in the guaranteed deadweight tonnage
determined by the class / designer, on completion of approval of final
drawings of the vessel, without any decrease in proposed container carrying
capacity at 16 M.T.(maximum) homogeneous loads per TEU, the contract
price shall not be decreased for a deficiency of the guaranteed dead weight
tonnage. However, for a decrease of container carrying capacity due to
deficiency of dead weight tonnage by any amount a sum of Tk 20.00
lac(Twenty lac) will be deducted per TEU for a maximum number of
decreases by 2 TEUs carrying capacity. The purchaser reserves the right to
rescind the contract if the carrying capacity is decreased beyond 2 TEU.

Speed :

a) Trial speed shall be minimum 11.00 knots at 40% loaded condition,

85% MCR and not beyond Bueafort 3 sea condition. No correction to
speed trial shall be allowed.)
 b) Service speed shall be minimum 10.00 knots at full loaded condition,
considering 15% sea margin; at 85% of maximum continuous (MCR)
output of main engine

The contract price of the vessel shall not be affected or changed if the deficiency in
actual speed is less than three tenths (3/10) of one knot below the required service
speed of the vessel as mentioned in the technical specification. Each for reductions
of 0.1 knots (maximum allowable 0.3 knots) there will be deducted of 0.5% of total
contact price. The purchaser reserved the right to rescind the contact if the the speed
is decreased beyond 0.30 knots.
If the deficiency in actual speed of the vessel is more than 1(one) knot below
the required service speed, then the Purchaser may reject the vessel(s) and
rescind the contract.

(b) Draught :
In case the actual loaded draught exceeds 3.8 meter, the Purchaser shall be
entitled to reject the vessel and rescind the contract .Shallow draft and higher
capacity vessel will be given preference.
(c) Route: The designer must consider the river conditions & others
relevant parameters of river route.
1. Dhaka to Chittagong
2. Chittagong to Dhaka
3. Dhaka to Mongla
4. Mongla to Dhaka
5. Mukterpur bridge/ Electrical tower clearance, Maximum- 18 m

(d) The designer must approve his design by the consultant BRTC,
BUET.
[ usually between ten (10) to twenty (20) percent depending on the nature of the Works]

GCC 94.2 (b) The Adjudicator jointly appointed by the parties is:
Name:
Address:
Tel No:
Fax No:
e-mail address:

GCC 94.2(b) In case of disagreement between the parties, the Appointing Authority for the
Adjudicator is the President of the Institution of Project Managers, Bangladesh.

GCC 94.3 (b) The arbitration shall be conducted in the place mentioned below;
[state name of place with location and district ]