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    Term Sheet Hospet Bellar NH-63

    Uploaded by

    smith
    The document outlines the terms for a subcontract agreement between Gammon and a subcontractor. Key points include: 1) The subcontractor will be responsible for completing balance works valued at approximately Rs. 559 Crore for the four laning of a highway project in Karnataka. 2) Gammon's margin on the subcontracted work will be 6% plus applicable taxes deducted by NHAI. 3) The subcontractor must obtain performance security of 10 crore rupees to be provided upon signing related documents and to be returned upon completion. 4) The subcontracted works must be completed within 18 months from issuance of notice to proceed.

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    © All Rights Reserved
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    Term Sheet Hospet Bellar NH-63

    Uploaded by

    smith
    85 views3 pages
    The document outlines the terms for a subcontract agreement between Gammon and a subcontractor. Key points include: 1) The subcontractor will be responsible for completing balance works valued at approximately Rs. 559 Crore for the four laning of a highway project in Karnataka. 2) Gammon's margin on the subcontracted work will be 6% plus applicable taxes deducted by NHAI. 3) The subcontractor must obtain performance security of 10 crore rupees to be provided upon signing related documents and to be returned upon completion. 4) The subcontracted works must be completed within 18 months from issuance of notice to proceed.

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    TERM SHEET HOSPET BELLAR NH-63

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    The document outlines the terms for a subcontract agreement between Gammon and a subcontractor. Key points include: 1) The subcontractor will be responsible for completing balance works valued at approximately Rs. 559 Crore for the four laning of a highway project in Karnataka. 2) Gammon's margin on the subcontracted work will be 6% plus applicable taxes deducted by NHAI. 3) The subcontractor must obtain performance security of 10 crore rupees to be provided upon signing related documents and to be returned upon completion. 4) The subcontracted works must be completed within 18 months from issuance of notice to proceed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    85 views3 pages

    Term Sheet Hospet Bellar NH-63

    Uploaded by

    smith
    The document outlines the terms for a subcontract agreement between Gammon and a subcontractor. Key points include: 1) The subcontractor will be responsible for completing balance works valued at approximately Rs. 559 Crore for the four laning of a highway project in Karnataka. 2) Gammon's margin on the subcontracted work will be 6% plus applicable taxes deducted by NHAI. 3) The subcontractor must obtain performance security of 10 crore rupees to be provided upon signing related documents and to be returned upon completion. 4) The subcontracted works must be completed within 18 months from issuance of notice to proceed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Term sheet for Subcontract

    Project: Four Laning of Hospet-Bellary-Karnataka/AP Border from Km. 280.080 (Design Ch.) to
    Km. 375.450 (Design Ch.), design length 95.370, NH-63 in the State of Karnataka under NHDP
    Phase- IVB on EPC mode.
    1. Subcontractor will be responsible for Satisfactory completion of balance works, performance
    and fulfillment of all obligations of Gammon pertaining to the Subcontract Works including DLP
    Period of one year under The Main Contract:
    a. Approximate Total value of the works proposed to be subcontracted @ Rs. 559 Crore
    (including all Taxes & Duties) + Applicable Escalation + value adjustment for GST complied
    contract (as approved by the Employer).

    b. Gammon’s margin on the total Subcontracted work value @6 % plus 2% TDS on IT which is
    deducted by NHAI (Subcontracted work value includes Applicable Escalation and value
    adjustment for GST complied contract as approved by the Employer).
    c. TDS on IT for the sub contract portion shall be borne by sub-contractor.
    d. TDS on GST shall be borne by the Subcontractor. However, on availing input by Gammon, the
    same shall be reimbursed to the subcontractor.
    e. Total labour Cess (as per Main contract for the subcontract value of work including Price
    variation + GST) shall be borne by Subcontractor.
    f. Monthly Recovery of Advance (including interest) from RA Bills shall be taken care of by the
    subcontractor. However, this recovery shall be adjusted against the Gammon’s margin, Leasing
    charges of Plant and Equipment, cost of site installations and establishments as per Clause 11
    etc.,
    g. Payment will be made to the Subcontractor as per Schedule – H and after release of the
    corresponding payment from client.
    h. Amount pertaining to Works executed but not yet claimed by GECPL due to non-qualification
    ofSchedule-H length shall belong to GECPL and the same when received from NHAI shall be
    paid to GECPL. However the Cost of Work done to qualify the Works executed but not yet
    claimed by GECPL as per Schedule H length shall be payable to Sub contractor at market rate
    or latest applicable SOR at mutually agreed rates and terms.
    i. The Subcontract Value as mentioned above is based on the pre GST Main Contract price. The
    applicable VAT, Labour Cess& Income Tax are inbuilt in the subcontract Price. On amendment
    of the Main Contract by Employer as GST Contract; the agreed discount/ margin/ rebate will be
    applicable on GST complied Main Contract price and subcontract price will be laid accordingly.
    2. Approval of Employer: Subcontract approval as and when required shall be obtained from
    the concerned authority.
    3. Performance Security: The Subcontractor will mobilize the funds in the form of Performance
    Security at site @ 10 crs to liquidate the current liabilities at site and to start the work
    successfully which will be returned to the subcontractor immediately after the completion of
    the contract. For smooth transition of operation of project to Sub contractor the schedule of
    the payment of 10 crs is proposed as below.

    a) Upon signing of term sheet : 5 crs


    b) Upon singing of sub contract agreement : 5 crs
    4. Retention Money: Retention Money shall be released subject to the completion of DLP of
    one year.

    5. Time for Completion: The total subcontracted works to be completed in 18 months from 30
    days from the date of issuance of letter to proceed whichever is later. The EOT approved by the
    NHAI will be passed on to the subcontractor and it will be binding on him.
    6. Defect Liability Period (DLP): Defect Liability Period shall be 12 (twelve) months from the date
    of completion of total works under main contract as certified by the employer.
    7. Price Adjustment: Price Adjustment as applicable to the Main Contract shall be applicable for
    Subcontract Works. The corresponding payment shall be passed on to Subcontractor after
    deducting GECPL’s Margin of 8%. Base date / Base indices for the subcontract will be the date of
    signing of this Term Sheet ie April 21.

    8. Design & drawing: shall be in the scope of Gammon. The design and drawing cost to be
    incurred after signing of this contract to be borne by Subcontractor.
    9. Insurance CAR policy will be obtained and maintained by Gammon. The proportionate cost
    for renewal of the same (proportionate to the subcontracted works) to be borne by
    Subcontractor. All other insurances as applicable to this subcontract works shall be obtained
    and maintained by the subcontractor.
    10. a) Amount equivalent to hire charges of Plant and Equipment available at Site and used by
    Sub contractor shall be adjusted in recovery of mobilization advance in each RA bill submitted
    by Sub contractor and approved by Client and the same Plant and Equipment shall be handed
    over to Sub contractor immediately for operation and maintenance for the execution and
    completion of project. The leasing charges of P&M for the use by Sub contractor will be
    charged at mutually agreed rates by GECPL. How ever all the recurring expanses such as cost of
    operation & maintenance, Spares, Consumables, Insurance, RTO expanses, maintenance
    contracts and others related to the Plant & Equipments from the date of signing sub contract
    agreement till completion of project to be borne by Sub contractor.
    b). Value of Construction Materials available at Site, Store Materials available at Site, P&M
    Spares available at Site used by sub contractor shall be billed by GECPL to sub contractor. This
    will be paid by Sub contractor on monthly basis.

    11. Cost of site installations and establishments shall be calculated proportionate to


    percentage of work executed and adjusted against monthly recovery of Mobilization advance
    at mutually agreed/Actual rates and terms.
    12. Any manpower or other services, if provided to Subcontractor shall be charged at mutually
    agreed/Actual rates and terms. This will be paid by Sub contractor on monthly basis.
    13. Recurring cost towards land rentals, electricity bills, water charges, etc. to be borne by the
    subcontractor from the date of signing of the Subcontract Agreement.
    14. Various deposit amount, already paid by Gammon to various Govt. / private Authorities;
    shall be collected by GECPL on completion of works. Sub-contractor to assist GECPL for
    collecting the same.
    15. Gammon will facilitate to the subcontractor for or all permissions to enter the premises of
    JSW for GSB material. The contractor has to follow and comply with all JSW regulations while
    working in their premises.

    16. In case any Contractual claims (corresponding to the Subcontract Works) under the Main
    Contract got approved by Employer, shall be shared between Gammon &Subcontractor at a
    ratio of 25:75. All cost in this context shall be borne by the Subcontractor.
    17. In case of any variation in scope under the main contract got approved by employer, the
    corresponding payment shall be passed on to subcontractor after deducting “GAMMON”
    Royalty as specified in Clause 1b of this term sheet.
    18. Sub contractor shall be responsible for any liquidated damages, recoveries, penalties, etc.,
    along with applicable taxes if any levied by the employer only on account of subcontractor’s
    default after signing of the Subcontract Agreement.
    Once the term sheet is signed then sub contract agreement will be signed&Letter to Proceed
    will be issued and this term sheet shall be part of Subcontract Agreement.

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