Annexure II

K/W-2

GOVERNMENT OF KARNATAKA
Public Works Department
Special Division, Hunsur Karnataka-571 105
Telefax: 08222 - 251955email :[email protected]
Web :www.kpwd.gov.in

Tender for the Work of Construction of Compound wall at Silkworm factory in KR Nagar TALUK.

TENDER REFERENCE. : PWD/2024-25/BD/WORK_INDENT11102

PERIOD OF SALE OF TENDER DOCUMENT : Please refer kppp.karnataka.gov.in

LAST DATE FOR SALE OF TENDER DOCUMENT : Please refer kppp.karnataka.gov.in

LAST DATE AND TIME FOR

RECEIPT OF TENDERS : Please refer kppp.karnataka.gov.in
TIME AND DATE OF OPENING OF TENDERS1 : Please refer kppp.karnataka.gov.in
PLACE OF OPENING OF TENDERS : O/o the Executive Engineer, PWD, Spl. Division
Hunsur

ADDRESS FOR COMMUNICATION : Near PWD Inspection Bungalow, Mysore-Bantwal road

Hunsur

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Contents

Section No. Description Page

1 INVITATION FOR TENDERS (IFT) 3

2 INSTRUCTIONS TO TENDERERS (ITT) 4

3. FORM OF TENDER AND QUALIFICATION INFORMATION 12

4. CONDITIONS OF CONTRACT (CC) 18

5 CONTRACT DATA 28

6 SPECIFICATIONS 30

7 DRAWINGS 31

8. BILL OF QUANTITIES 32

9. FORMAT OF BANK GUARANTEE FOR SECURITY DEPOSIT 33

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SECTION 1: INVITATION FOR TENDERS (IFT)

INDENT No: PWD/2024-25/BD/WORK_INDENT11102

1.The Executive Engineer, Public Works, Ports Inland Water Transport Department, Special Division, Hunsur invites
tenders from eligible tenderers, for the work of Construction of Compound wall at Silkworm factory in KR Nagar
TALUK, detailed in the Table below. The tenderers may submit tenders for any or all of the works given in the
Table.
Tenderers are advised to note the minimum qualification criteria specified in Clause 3 of the Instructions to
Tenderers to qualify for award of the Contract

2. Tender documents may be downloaded from Government of Karnataka e-Procurement website

https://eproc.karnataka.gov.in/eportal/index.seam under login for Contractors:

After login to Contractors, Please scroll down to the right side bottom to see List of Tenders, Please click
there to find the details of NIT and download copy of the tender. The tender can be downloaded in the
portal as per prescribed date and time published in the portal. Only Interested Contractors who wish to
participate should remit online transaction fee for tender after registering in the portal. The transaction fee
is non-refundable if you wish to participate.

3. Tenders must be accompanied by earnest money deposit which will paid online through e-
Procurement portal Table below.

4. Tenders must be electronically submitted (on-line through internet) within the date and time published
in e-procurement portal. First Cover Tenders will be opened at prescribed time and date in the e-
procurement portal, in the presence of the Tenderers who wish to attend at the Office of the Executive
Engineer, Public Works, Ports & Inland Water Transport Department, Special Division, Hunsur.

5. Other details can be seen in the tender documents.

TABLE
Approximate Earnest
Cost of
Sl. value Money Period of
Name of work document
No. of work (Rs. Deposit completion
(Rs.)
lakhs) (Rs.)
1 2 3 4 5 6
Construction of Compound As per e- 2 Months.
1 wall at Silkworm factory in 30.00 60,000/- procurement (Including
KR Nagar TALUK portal rainy season)

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 Executive Engineer
Public Works, Ports & Inland Water
Transport Depart Department
Special Division, Hunsur

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SECTION 2: INSTRUCTIONS TO TENDERERS ( ITT )

Table of Clauses

A. General Page No.

1. Scope of Tender 5
2. Eligible Tenderers 5
3. Qualification of Tenderer 5

B. Tender Documents

4. Content of Tender documents 6

5. Amendment of Tender documents 6

C. Preparation of Tenders

6. Documents comprising the Tender 6

7. Tender prices 6
8. Tender validity 7
9. Earnest money deposit 7
10. Format and signing of Tender 7

D. Submission of Tenders

11 Sealing and marking of Tenders 8

12 Deadline for submission of Tenders 8
13 Late Tenders 8
14 Modification and Withdrawal of Tenders 8

E. Tender opening and evaluation

15. Tender opening 8

16. Process to be confidential 9
17. Clarification of Tenders 9
18. Examination of Tenders and determination of responsiveness 9
19. Correction of errors 10
20. Evaluation and comparison of Tenders 10

F. Award of contract

21. Award criteria 10

22 Employer’s right to accept any Tender and to reject any or all Tenders 10
23. Notification of award and signing of Agreement 10
24. Security deposit 11
25. Corrupt or Fraudulent practices 11

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A. General

1. Scope of Tender

1.1 The Executive Engineer, Public Works, Ports & Inland Water Transport Department, Special Division, Hunsur2
(Referred to as Employer in these documents) invites tenders from eligible tenderers, for the construction of
works (as defined in these documents and referred to as "the works") detailed in the Table given in the
Invitation for Tenders (IFT). The tenderers may submit tenders for any or all of the works detailed in the table
given in IFT.

2. Eligible Tenderers

2.1 Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices issued by
the Government of Karnataka
2.2 Tenders from Joint ventures are not acceptable.

3. Qualification of the Tenderer:

3.1 All tenderers shall provide the requested information accurately and in sufficient detail in Section 3:
Form of Tender and Qualification information.
3.2 To qualify for award of this contract, each tenderer in its name should have in the last five years i.e.
2019-20 to 2023-24)
(a) achieved in one financial year a minimum annual financial turnover of Rs. 30 lakhs.
(b) satisfactorily completed as prime contractor, at least one any construction work ofvalue not less than
Rs.15 lakhs

3.3 Tenderers who meet the above specified minimum qualifying criteria, will only be qualified, if their
available tender capacity is more than the total tender value. The available tender capacity
will be calculated as under:

Assessed available tender capacity = ( A*N*5.00- B )

where

A = Maximum value of civil engineering works executed in any one year during the last five years
(updated to 2023-24 price level) taking into account the completed as well as works in progress.

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N = Number of years prescribed for completion of the works for which Tenders are invited.
B = Value, at 2023-24 price level, of existing commitments and on-going works to be completed
during the next 60 DAYS(period of completion of the works for which Tenders are invited)

Note: The statements showing the value of existing commitments and on-going works as well as the
stipulated period of completion remaining for each of the works listed should be countersigned by
the Employer in charge, not below the rank of an Executive Engineer or equivalent.
(a) In the case of the death of the contractor after executing the agreement / commencement of the work,
his legal heir, if is an eligible registered contractor and is willing can execute and compete the work
at the accepted tender rates irrespective of the cost of the work.

3.2 Even though the tenderers meet the above criteria, they are subject to be disqualified if they have:

- made misleading or false representations in the forms, statements and attachments submitted in
proof of the qualification requirements; and/or
- record of poor performance such as abandoning the works, not properly completing the contract,
inordinate delays in completion, litigation history, or financial failures etc.; and/or
- participated in the previous Tender for the same work and had quoted unreasonably high tender
prices and could not furnish rational justification.

B. Tender documents

4. Content of Tender documents

4.1 The set of tender documents shall have all the Sections given in Page 2:
4.2 Both the sets should be completed and returned with the tender.

5. Amendment of Tender documents

5.1 Before the deadline for submission of tenders, the Employer may modify the tender documents by
issuing addenda.
5.2 Any addendum thus issued shall be part of the tender documents and shall be communicated in writing
or by cable to all the purchasers of the tender documents.
5.3 To give prospective tenderers reasonable time in which to take an addendum into account in preparing
their tenders, the Employer shall extend as necessary the deadline for submission of tenders, in
accordance with Sub-Clause 12.2 below.

C. Preparation of Tenders

6. Documents comprising the Tender

6.1 The tender submitted by the Tenderer shall comprise the following:
(a) The Tender (in the format indicated in Section 3).
(b) Earnest Money Deposit;
(c) Priced Bill of Quantities;
(d) Qualification Information Form and Documents;
and any other materials required to be completed and submitted by tenderers in accordance with these
instructions. The documents listed under Sections 3, 5 and 8 shall be filled in without exception.

7. Tender prices

7.1 The contract shall be for the whole works as described in Sub-Clause 1.1, based on the priced Bill of
Quantities submitted by the Tenderer.
7.2 The Tenderer shall fill in rates and prices and line item total (both in figures and words) for all items of
the Works described in the Bill of Quantities along with total tender price (both in figures and words).

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Items for which no rate or price is entered by the Tenderer will not be paid for by the Employer when
executed and shall be deemed covered by the other rates and prices in the Bill of Quantities.
Corrections, if any, shall be made by crossing out, initialing, dating and rewriting.
7.3 All duties, taxes, and other levies payable by the contractor under the contract, or for any other cause,
shall be included in the rates, prices and total Tender Price submitted by the Tenderer.
7.4 The rates and prices quoted by the Tenderer shall be fixed for the duration of the Contract and shall
not be subject to adjustment on any account.

8. Tender validity

8.1 Tenders shall remain valid for a period not less than ninety days after the deadline date for tender
submission specified in Clause 12. A tender valid for a shorter period shall be rejected by the
Employer as non-responsive.
8.2 In exceptional circumstances, prior to expiry of the original time limit, the Employer may request that
the tenderers may extend the period of validity for a specified additional period. The request and the
tenderers' responses shall be made in writing or by cable. A tenderer may refuse the request without
forfeiting his earnest money deposit. A tenderer agreeing to the request will not be required or
permitted to modify his tender, but will be required to extend the validity of his earnest money deposit for a
period of the extension, and in compliance with Clause 9 in all respects.

9. Earnest Money Deposit/ Bid security (as per eprocurement portal)

9.1 The tenderer shall furnish as part of his tender, Earnest Money Deposit (EMD) at the following rates.
( EMD) amount as % of the estimated cost of the work put to tender
For SC/ST Category ;
a) UptoRs. 20 lakh – 1.25 %
b) Rs. 20 lakhs and above uptoRs. 50 lakhs – 1.00 % subject to minimum of Rs. 25,000/-
For Other category (General);
a) UptoRs. 20 lakh – 2.5%
b) Rs. 20 lakhs and above uptoRs. 1 Crore – 2% subject to minimum of Rs. 50,000/-
c) Rs. 1 crore and abobeuptoRs. 10 Crore – 1.5% subject to a minimum of Rs. 2,00,000/-
d) Rs. 10 crore and above – 1% subject to minimum of Rs. 15, 00,000/-
The supplier/contractor can pay the Earnest Money Deposit (EMD) in the e-Procurement portal using any
of the following payment modes:
 Credit Card
 Direct Debit
 National Electronic Fund Transfer (NEFT)
 Over the Counter (OTC)

The supplier/contractor’s bid will be evaluated only on confirmation of receipt of the payment (EMD) in the
Government of Karnataka central pooling a/c held at Axis Bank
EMD amount will have to be submitted by the supplier/contractor taking into account the following
conditions:
a. EMD will be accepted only in the form of electronic cash (and not through Demand Draft or Bank
Guarantee) and will be maintained in the Govt.’s central pooling account at Axis Bank until the contract is
closed.
b. The entire EMD amount for a particular tender has to be paid in a single transaction. It is responsibility of
Contractors to ensure that payment through NEFT reaches Payment to Government of karnataka Bank
before Bid submission date and time , through online payment. In case of OTC Payment , the DD to be
drawn in favour of “ e-Procurement , Government of Karnataka “ and submit to Axis Bank before bid
submission time and up date the transaction reference in e-Procurement portal .

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 For details on e-Payment services refer to e-procurement portal for more details on the process.

9.2 Instruments having fixed validity issued as earnest money deposit for the tender shall be valid for 45 days
beyond the validity of the tender.
9.3 Any tender not accompanied by an acceptable earnest money deposit and not secured as indicated in Sub-
Clauses 13.1 and 13.2 above shall be rejected by the Employer as non-responsive.
9.4 The earnest money deposit of unsuccessful Tenderers will be returned within 30 days of the end of the
tender validity period specified in Sub-Clause 12.1.
9.5 The earnest money deposit of the successful Tenderer will be discharged when the Tenderer has signed the
Agreement and furnished the required Performance Security.
9.6 The earnest money deposit may be forfeited:
(a) if the Tenderer withdraws the Tender after tender opening during the period of tender validity;
(b) if the Tenderer does not accept the correction of the Tender Price, pursuant to Clause 24; or
(c) in the case of a successful Tenderer, if the Tenderer fails within the specified time limit to ;
(i) Sign the Agreement; or
(ii)Furnish the required Security deposit

10. Format and signing of Tender

10.1 Tenderer shall submit the Bid electronically before the submission date and time published in kppp portal.

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D. Submission of Tenders

11. Sealing and marking of tenders

11.1 Tenderer shall submit the Bid electronically before the submission date and time published

12. Deadline for submission of the Tenders

12.1 Tenders must be received by the Employer at the address specified above no later than12 16:00 hours on

as mentioned in kppp portal.

13. Late Tenders

13.1 In online kppp system, you shall not be able to submit the bid after the bid submission time and date as the
icon or the task in the kppp portal will not be available.
14. Modification and Withdrawal of Tenders

14.1 Tender has all the time to modify and correct or upload any relevant document in the portal till Bid
submission date and time, as published in the kppp portal.

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E. Tender opening and evaluation

15. Tender opening

15.1 The Employer will open the Tenders received (except those received late or withdrawn),
including modifications for in the presence of the Tenderers or their representatives who choose
to attend on the date, time and the place specified in the e-portal. In the event of the specified
date of Tender opening being declared a holiday for the Employer, the Tenders will be opened at
the appointed time and location on the next working day.
16. Process to be confidential

16.1 Information relating to the examination, clarification, evaluation, and comparison of Tenders and
recommendations for the award of a contract shall not be disclosed to Tenderers or any other persons not
officially concerned with such process until the award to the successful Tenderer has been
announced. Any effort by a Tenderer to influence the Employer's processing of Tenders or award decisions
may result in the rejection of his Tender.

17. Clarification of Tenders

17.1 To assist in the examination, evaluation, and comparison of Tenders, the Employer may, at his discretion, ask any
Tenderer for clarification of his Tender, including breakdowns of unit rates. The request for clarification and the
response shall be in writing or by cable, but no change in the price or substance of the Tender shall be sought,
offered, or permitted except as required to confirm the correction of arithmetic errors discovered by the Employer in
the evaluation of the Tenders in accordance with Clause 19.
17.2 Subject to sub-clause 22.1, no Tenderer shall contact the Employer on any matter relating to its Tender from the time
of the Tender opening to the time the contract is awarded. If the Tenderer wishes to bring additional information to
the notice of the Employer, it should do so in writing.

If they have any clarification related to kppp portal contact kppp portal
Help desk from 9 AM to 9 PM. Ph. No. : (080)25501216 or Chat through
kppp portal through query option on or before specified time.
17.3 Any effort by the Tenderer to influence the Employer in the Employer’s Tender evaluation, Tender
comparison or contract award decisions may result in the rejection of the Tenderers’ Tender.

18. Examination of Tenders and determination of responsiveness

18.1 Prior to the detailed evaluation of Tenders, the Employer will determine whether each Tender (a)
meets the eligibility criteria defined in Clause 2; (b) has been properly signed; (c) is accompanied by
the required earnest money deposit and; (d) is substantially responsive to the requirements of the
Tender documents.
18.2 A substantially responsive Tender is one which conforms to all the terms, conditions, and
specifications of the Tender documents, without material deviation or reservation. A material deviation
or reservation is one (a) which affects in any substantial way the scope, quality, or performance of the
Works; (b) which limits in any substantial way, inconsistent with the Tender documents, the

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18.3 Employer's rights or the Tenderer's obligations under the Contract; or (c) whose rectification would
affect unfairly the competitive position of other Tenderers presenting substantially responsive Tenders.
If a Tender is not substantially responsive, it will be rejected by the Employer, and may not
subsequently be made responsive by correction or withdrawal of the nonconforming deviation or
reservation.
19. Correction of errors
19.1 Tenders determined to be substantially responsive will be checked by the Employer for any arithmetic
errors. Errors will be corrected by the Employer as follows:
(a) where there is a discrepancy between the rates in figures and in words, the lower of the two will
govern; and
(b) where there is a discrepancy between the unit rate and the line item total resulting from
multiplying the unit rate by the quantity, the unit rate as quoted will govern.
19.2 The amount stated in the Tender will be adjusted by the Employer in accordance with the above
procedure for the correction of errors and, with the concurrence of the Tenderer, shall be considered as
binding upon the Tenderer. If the Tenderer does not accept the corrected amount the Tender will be
rejected, and the earnest money deposit may be forfeited in accordance with Sub-Clause 9.6 (b).
20. Evaluation and comparison of Tenders

20.1 The Employer will evaluate and compare only the Tenders determined to be substantially responsive in
accordance with Clause 18.
20.2 In evaluating the Tenders, the Employer will determine for each Tender the evaluated Tender Price by
adjusting the Tender Price as follows:
(a) making any correction for errors pursuant to Clause 19; and
(b) making appropriate adjustments to reflect discounts or other price modifications offered in
accordance with Sub Clause 14.5.
20.3 The Employer reserves the right to accept or reject any variation, deviation, or alternative offer.
Variations, deviations, and alternative offers and other factors which are in excess of the requirements of
the Tender documents or otherwise result in unsolicited benefits for the Employer shall not be taken into
account in Tender evaluation.
20.4 If the tender of the successful tenderer is seriously unbalanced in relation to the Employer’s estimate of
the cost of the work to be performed under the contract, the Employer may require the Tenderer to
produce detailed price analyses for any or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with the construction methods and schedule proposed. After evaluation of the
price analyses, the Employer may require that the amount of the performance security set forth in Clause
24.1 be increased at the expense of the successful Tenderer to a level sufficient to protect the Employer
against financial loss in the event of default of the successful under the contract.

F. Award of Contract
21. Award criteria
21.1 Subject to Clause 23, the Employer will award the Contract to the Tenderer whose Tender has been
determined to be substantially responsive to the Tender documents and who has offered the lowest
evaluated Tender Price, provided that such Tenderer has been determined to be (a) eligible in
accordance with the provisions of Clause 2, and (b) qualified in accordance with the provisions of
Clause 3.

22. Employer's right to accept any Tender and to reject any or all Tenders

22.1 Not withstanding Clause 21, the Employer reserves the right to accept or reject any Tender, and to
cancel the Tender process and reject all Tenders, at any time prior to the award of Contract, without
thereby incurring any liability to the affected Tenderer or Tenderers or any obligation to inform the
affected Tenderer or Tenderers of the grounds for the Employer's action.
23. Notification of award and signing of Agreement

23.1 The Tenderer whose Tender has been accepted will be notified of the award by the Employer prior to
expiration of the Tender validity period by cable, telex or facsimile confirmed by registered letter. This letter
(hereinafter and in the Conditions ofContract called the "Letter of Acceptance") will state the sum that the
Employer will pay the Contractor in consideration of the execution, completion, and
maintenance of the Works by the Contractor as prescribed by the Contract (hereinafter and in the
Contract called the "Contract Price").

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23.2 The notification of award will constitute the formation of the Contract, subject only to the furnishing of
a performance security in accordance with the provisions of Clause 24.
23.3 The Agreement will incorporate all agreements between the Employer and the successful Tenderer. It
will be kept ready for signature of the successful Tenderer in the office of Employer within 30 days
following the notification of award along with the Letter of Acceptance. Within 20 days of receipt, the
successful Tenderer will sign the Agreement and deliver it to the Employer.
23.4 Upon the furnishing by the successful Tenderer of the Security deposit, the Employer will promptly
notify the other Tenderers that their Tenders have been unsuccessful.

24. Security deposit

24.1 For Other Category (General) ;Within 20 days of receipt of the Letter of Acceptance, the successful Tenderer
shall deliver to theEmployer a Security deposit in any of the forms given below for an amount equivalent to 5%
of theContract price : plus additional security for unbalanced tenders.
- Cash or
- Banker’s cheque/Demand draft,/Pay Order in favour of the Executive Engineer, Public Works
Department, Special Division, Hunsur payable at Hunsur or Specified Small Savings
Instruments pledged to Executive Engineer, Public Works Department,
Special Division, Hunsur.
For SC/ST Category :Security deposit for an amount equivalent to 5 % of the Contract price shall be deducted
from every running bill. However, incase of first and final bill the entire security depsit will be deducted from
the final bill.
24.2 The security deposit if furnished in cash or demand draft can, if requested, be converted to interest
bearing securities at the cost of the contractor.
24.3 Failure of the successful Tenderer to comply with the requirements of Sub-Clause 24.1 shall constitute
sufficient grounds for cancellation of the award and forfeiture of the earnest money deposit.

25. Corrupt or Fraudulent practices

25.1 The GOK requires that the Tenderers/Suppliers/Contractors, observe the highest standard of ethics
during the procurement and execution of such contracts. In pursuance of this policy, GOK :
(a) will reject a proposal for award if it determines that the Tenderer recommended for award has
engaged in corrupt or fraudulent practices in competing for the contract in question;
(b) will declare a firm ineligible, either indefinitely or for a stated period of time, to be awarded a
GOK contract if it at any time determines that the firm has engaged in corrupt or fraudulent
practices in competing for, or in executing, a GOK contract.
25.2 Furthermore, Tenderers shall be aware of the provision stated in sub-clause 43.2 of the Conditions of
Contract.

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SECTION 3: FORMS OF TENDER, AND QUALIFICATION INFORMATION

TABLE OF FORMS:

- FORM OF TENDER

- QUALIFICATION INFORMATION

- LETTER OF ACCEPTANCE

- NOTICE TO PROCEED WITH THE WORK

- AGREEMENT FORM

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Form of Tender

Description of the Works : Construction of Compound wall at Silkworm factory in KR Nagar TALUK
To,

Address :
___________________________________________________________________________ 14

GENTLEMEN,

We offer to execute the Works described above in accordance with the Conditions of Contract accompanying this
Tender for the Contract Price of _________ [in figures]
(________________________________________________) [in letters].15

This Tender and your written acceptance of it shall constitute a binding contract between us. We understand that you
are not bound to accept the lowest or any Tender you receive.

We undertake that, in competing for (and, if the award is made to us, in executing) the above contract, we will
strictly observe the laws against fraud and corruption in force in India namely “Prevention of Corruption Act
1988”.

We hereby confirm that this Tender complies with the Tender validity and Earnest money deposit required by the
Tender documents.

We attach herewith our current income-tax clearance certificate.

Yours faithfully,

Authorized Signature:

Name & Title of Signatory: _________________________________________________________________

Name of Tenderer
Address:

13
To be filled in by the Employer before issue of the Tender document
14
To be filled in by the Employer before issue of the Tender document
15
To be filled in by the Tenderer, together with his particulars and date of submission at the bottom of the Form of
Tender

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Qualification Information

The information to be filled in by the Tenderer hereunder will be used for purposes of computing Tender
capacity as provided for in Clause 3 of the Instructions to Tenderers. This information will not be incorporated in
the Contract.

1.1 Constitution or legal status of Tenderer [Attach copy]

Place of Registration
(Attach Copy)
Principal place of business:

1.2 Total value of civil engineering construction

works executed and payments received in the last five years
(in Rs. Lakhs)17
2019-20 ______________
2020-21 ______________
2021-22
2022-23
2023-24

1.3 Work performed as Prime Contractor (in the same name) on works of similar nature over during the
five years specified in 1.2 above.

Project Name of Descrip- Contract Value of Date of Specified Actual date of Remarks explaining reasons
Name Employer -tion of Number contract issue of period of completion for delay in completion of work
Work Rs. Lakhs work completion
order
1 2 3 4 5 6 7 8 9

1.4 Information on works for which Tenders have been submitted and works which are yet to be
completed as on the date of this Tender.

(A) Existing commitments and on-going works:

Description Place Contract No. Name Value of Stipulated Value of works18 Anticipated
of && Date and Contract period of remaining to be date of
Work State Address (Rs. lakhs) completion completed completion
of Employer (Rs. lakhs)
(1) (2) (3) (4) (5) (6) (7) (8)

16
Change the years appropriately
17
Attach Certificate from Chartered Accountant
18
The contractors shall enclose/attach all the necessary certificates duly attested by the employer.

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(B) Works for which Tenders already submitted:

Description Place Name and Estimated Stipulated Date when Remarks

of & Address of value of works period of decision is if any
Work State Employer (Rs. lakhs) completion expected
(1) (2) (3) (4) (5) (6) (7)

1.5 Construction equipment owned by the tenderer and equipment proposed to be deployed on this
contract, if awarded;
1.6 Reports on the financial standing of the tenderer, such as profit and loss statements and auditor’s
reports for the last five years;
1.7 Qualification and experience of the key technical and management personnel in permanent
employment with the tenderer and those that are proposed to be deployed on this contract, if awarded.
1.8. Name, address, and telephone, telex, and fax numbers of the Tenderers' bankers who may provide
references if contacted by the Employer.
1.9 Deleted

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Letter of Acceptance
(letterhead paper of the Employer)

________________________[date]

To: _________________________________________________________________________[name and

address of the Contractor]

Dear Sirs,

This is to notify you that your Tender dated ____________ for execution of the

[name of the contract and identification number, as given in the Instructions to Tenderers] for the Contract Price of
Rupees ——___________________________________________________________ (_____________) [amount in
words and figures], as corrected and modified in accordance with the Instructions to Tenderers is hereby accepted by
our Agency.

You are hereby requested to furnish Security deposit, in the form detailed in Para 24.1 of ITT for an
amount of Rs.————— within 20 days of the receipt of this letter of acceptance valid up to 30 days from the
date of expiry of Defects Liability Period i.e. up to months and sign the contract, failing which
action as stated in Para 24.3 of ITT will be taken.

Yours faithfully,

Authorized Signature

Name and Title of Signatory

Name of Agency

Issue of Notice to proceed with the work

(letterhead of the Employer)
————— (date)
To

—————————————— (name and address of the Contractor)

Dear Sirs:

Pursuant to your furnishing the requisite security deposit as stipulated in ITT Clause 24.1 and signing of
the contract agreement for the construction of —————— 19a Tender Price of Rs.——————, you are
hereby instructed to proceed with the execution of the said works in accordance with the contract documents.

Yours faithfully,

(Signature, name and title of signatory authorized to sign on behalf of Employer)

19
Give the name of the Contract

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Agreement Form

Agreement

This agreement, made the ___________________day of ______________20_______,

between___________________________________________________________________________________
________________________________________[name and address of Employer]
(hereinafter called “the Employer”) of the one part and _____________________________________________

______________________________________________________[name and address of contractor]

(hereinafter called “the Contractor”) of the other part.

Whereas the Employer is desirous that the Contractor execute _____________________________

______________________________________________________________________________________[ name
and identification number of Contract] (hereinafter called “the Works”) and the Employer has accepted the Tender by
the Contractor for the execution and completion of such Works and the remedying of any defects therein at a contract
price of Rupees...

NOW THIS AGREEMENT WITNESSETH as follows:

1. In this Agreement, words and expression shall have the same meanings as are respectively assigned to
them in the Conditions of Contract hereinafter referred to, and they shall be deemed to form and be read and
construed as part of this Agreement.
2. In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned,
the Contractor hereby covenants with the Employer to execute and complete the Works and remedy any
defects therein in conformity in all aspects with the provisions of the Contract.
3. The Employer hereby covenants to pay the Contractor in consideration of the execution and completion of
the Works and the remedying the defects wherein the Contract Price or such other sum as may become
payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.
4. The following documents shall be deemed to form and be read and construed as part of this Agreement,
viz:
i) Letter of Acceptance;
ii) Notice to proceed with the works;
iii) Contractor’s Tender;
iv) Contract Data;
v) Conditions of contract (including Special Conditions of Contract);
vi) Specifications;
vii) Drawings;
viii) Bill of Quantities; and
ix) Any other document listed in the Contract Data as forming part of the contract.

In witness whereof the parties thereto have caused this Agreement to be executed the day and year first before
written.

The Common Seal of

was hereunto affixed in the presence of:
Signed, Sealed and Delivered by the said ___________________________________________________

in the presence of:

Binding Signature of Employer
Binding Signature of Contractor

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SECTION 4: CONDITIONS OF CONTRACT

Table of Contents

A. General Page No.

1. Definitions 19
2. Interpretation 19
3. Law governing contract 20
4. Employers decisions 20
5. Delegation 20
6. Communications 20
7. Subcontracting 20
8. Other Contractors 20
9. Personnel 20
10. Employer’s and Contractor’s risks 20
11. Employer’s risks 20
12 Contractor’s risks 21
13 Query about Contract Data 21
14 Contractor to construct the Works 21
15. The Works to be completed by Intended Completion Date 21
16. Safety 21
17. Discoveries 21
18. Possession of the Site 21
19. Access to the Site 21
20. Instructions 21

B. Time Control

21. Program 21
22. Extension of the Intended Completion Date 22
23. Delays ordered by the Employer 22
24. Management meetings 22

C. Quality Control

25. Identifying defects 22

26. Tests 22
27. Correction of defects 22
28 Uncorrected defects 22

D. Cost Control

29 Bill of Quantities (BOQ) 23

30 Variations 23
31. Payment for Variations 23
32. Submission of bills for payment 24
33 Payments 24
34. Compensation events 24
35. Tax 24
36. Liquidated damages 25
37. Cost of repairs 25

E Finishing of Contract

38. Completion 25
39. Taking Over 25
40. Final account 25
41. As built drawings 25
42. Termination 25
43 Payment upon termination 26
44. Property 26
45. Release from performance 26

F Special Conditions of Contract 27

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Conditions of Contract

A. General

1. Definitions

1.1 Terms which are defined in the Contract Data are not also defined in the Conditions of Contract but
keep their defined meanings. Bold letters are used to identify defined terms.

Bill of Quantities means the priced and completed Bill of Quantities forming part of the Tender.
Compensation events are those defined in Clause 34 hereunder.
The Completion Date is the date of completion of the Works as certified by the Employer in
accordance with Sub Clause38.1.
The Contract is the contract between the Employer and the Contractor to execute, complete and
maintain the Works. It consists of the documents listed in Clause 2.3 below.
The Contract Data defines the documents and other information which comprise the Contract.
The Contractor is a person or corporate body whose Tender to carry out the Works has been accepted by
the Employer.
The Contractor's Tender is the completed Tender document submitted by the Contractor to the
Employer.
The Contract price is the price stated in the Letter of Acceptance and thereafter as adjusted in
accordance with the provisions of the Contract.
Days are calendar days; months are calendar months.
A Defect is any part of the Works not completed in accordance with the Contract.
The Defects liability period is the period named in the Contract Data and calculated from the
Completion Date.
The Employer is the party who will employ the Contractor to carry out the Works.
Equipment is the Contractor's machinery and vehicles brought temporarily to the Site to construct the
Works.
The Initial Contract price is the Contract Price listed in the Employer's Letter of Acceptance.
The Intended Completion Date is the date on which it is intended that the Contractor shall complete the
Works. The Intended Completion Date is specified in the Contract Data. The Intended Completion Date
may be revised only by the Employer by issuing an extension of time.
Materials are all supplies, including consumables, used by the contractor for incorporation in the
Works.
Plant is any integral part of the Works which is to have a mechanical, electrical, electronic or chemical or
biological function.
The Site is the area defined as such in the Contract Data.
Specification means the Specification of the Works included in the Contract and any modification or
addition made or approved by the Employer.
The Start Date is given in the Contract Data. It is the date when the Contractor shall commence
execution of the works. It does not necessarily coincide with any of the Site Possession Dates.
A Variation is an instruction given by the Employer which varies the Works.
The Works are what the Contract requires the Contractor to construct, install, and turn over to the
Employer, as defined in the Contract Data.

2. Interpretation

2.1 In interpreting these Conditions of Contract, singular also means plural, male also means female or
neuter, and the other way around. Headings have no significance. Words have their normal meaning
under the language of the Contract unless specifically defined. The Employer will provide instructions
clarifying queries about the Conditions of Contract.
2.2 The documents forming the Contract shall be interpreted in the following order of priority:
(1) Agreement
(2) Letter of Acceptance, notice to proceed with the works

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(3) Contractor’s Tender

(4) Contract Data
(5) Conditions of Contract
(6) Specifications
(7) Drawings
(8) Bill of quantities and
(9) any other document listed in the Contract Data as forming part of the Contract.

3. Law governing contract

3.1 The law governing the Contract is the Laws of India supplanted by the Karnataka Local Acts.

4. Employer's decisions

4.1 Except where otherwise specifically stated, the Employer will decide contractual matters between the
Employer and the Contractor .

5. Delegation

5.1 The Employer may delegate any of his duties and responsibilities to other people after notifying the
Contractor and may cancel any delegation after notifying the Contractor.

6. Communications

6.1 Communications between parties which are referred to in the conditions are effective only when in
writing. A notice shall be effective only when it is delivered (in terms of Indian Contract Act).

7. Subcontracting

7.1 Deleted.

8. Other Contractors

8.1 The Contractor shall cooperate and share the Site with other contractors, public authorities, utilities,
and the Employer.

9. Personnel

9.1 The Contractor shall employ the technical personnel (of number and qualifications) as may be
stipulated by GOK from time to time during the execution of the work. The technical staff so
employed shall be available at site as may be stipulated by the Employer.
9.2 If the Employer asks the Contractor to remove a person who is a member of the Contractor’s staff or
his work force stating the reasons, the Contractor shall ensure that the person leaves the Site within
seven days and has no further connection with the work in the Contract.

10. Employer’s and Contractor's risks

10.1 The Employer carries the risks which this Contract states are Employer’s risks, and the Contractor
carries the risks which this Contract states are Contractor’s risks.

11. Employer's risks

11.1 The Employer is responsible for the excepted risks which are (a) in so far as rebellion, riot
commotion or disorder or (b) a cause due solely to the design of the Works, other than the
Contractor’s design.

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12. Contractor’s risks

12.1 All risks of loss of or damage to physical property and of personal injury and death which arise during
and in consequence of the performance of the Contract other than the excepted risks are the
responsibility of the Contractor.

13. Queries about the Contract Data

13.1 The Employer will clarify queries on the Contract Data.

14. Contractor to construct the Works

14.1 The Contractor shall construct the Works in accordance with the Specification and Drawings.

15. The Works to be completed by the Intended Completion Date

15.1 The Contractor may commence execution of the Works on the Start Date and complete them by the
Intended Completion Date.

16. Safety

16.1 The Contractor shall be responsible for the safety of all activities on the Site.

17. Discoveries

17.1 Anything of historical or other interest or of significant value unexpectedly discovered on the Site is
the property of the Employer. The Contractor is to notify the Employer of such discoveries and carry
out the Employer's instructions for dealing with them.

18. Possession of the Site

18.1 The Employer shall give possession of all parts of the Site to the Contractor. If possession of a part is
not given by the date stated in the Contract Data the Employer is deemed to have delayed the start of
the relevant activities and this will be Compensation Event.

19. Access to the Site

19.1 The Contractor shall allow the Employer and any person authorized by the Employer access to the
Site, to any place where work in connection with the Contract is being carried out or is intended to be
carried out and to any place where materials or plant are being manufactured / fabricated / assembled
for the works.

20. Instructions

20.1 The Contractor shall carry out all instructions of the Employer which comply with the applicable laws
where the Site is located.

B. Time Control

21. Program

21.1 Within the time stated in the Contract Data the Contractor shall submit to the Employer for approval a
Program showing the general methods, arrangements, order, and timing for all the activities in the
Works.

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21.2 The Employer's approval of the Program shall not alter the Contractor's obligations. The Contractor
may revise the Program and submit it to the Employer again at any time. A revised Program is to show
the effect of Variations and Compensation Events.

22. Extension of the Intended Completion Date

22.1 The Employer shall extend the Intended Completion Date if a Compensation Event occurs or a
Variation is issued which makes it impossible for Completion to be achieved by the Intended
Completion Date.
22.2 The Employer shall decide whether and by how much to extend the Intended Completion Date within
21 days of the Contractor asking the Employer for a decision upon the effect of a Compensation Event
or Variation and submitting full supporting information.

23. Delays ordered by the Employer

23.1 The Employer may instruct the Contractor to delay the start or progress of any activity within the
Works.

24. Management meetings

24.1 The Employer may require the Contractor to attend a management meeting. The business of a
management meeting shall be to review the progress achieved and the plans for remaining work.
24.2 The responsibility of the parties for actions to be taken is to be decided by the Employer either at the
management meeting or after the management meeting and stated in writing to be distributed to all
who attended the meeting.

C. Quality Control
25. Identifying defects

25.1 The Employer shall check the Contractor's work and notify the Contractor of any Defects that are
found. Such checking shall not affect the Contractor's responsibilities. The Employer may instruct the
Contractor to search for a Defect and to uncover and test any work that the Employer considers may
have a Defect

26. Tests

26.1 If the Employer instructs the Contractor to carry out a test not specified in the Specification to check
whether any work has a Defect and the test shows that it does, the Contractor shall pay for the test and
any samples. If there is no Defect the test shall be a Compensation Event.

27. Correction of defects

27.1 The Employer shall give notice to the Contractor of any Defects before the end of the Defects Liability
Period, which begins at Completion and is defined in the Contract Data. The Defects Liability Period
shall be extended for as long as Defects remain to be corrected.
27.2 Every time notice of a Defect is given, the Contractor shall correct the notified Defect within the length
of time specified by the Employer’s notice.

28. Uncorrected defects

28.1 If the Contractor has not corrected a Defect within the time specified in the Employer’s notice, the
Employer will assess the cost of having the Defect corrected, and the Contractor will pay this amount.

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D. Cost Control
29. Bill of Quantities (BOQ)

29.1 The BOQ shall contain items for the construction, installation, testing, and commissioning work to be
done by the Contractor.
29.2 The BOQ is used to calculate the Contract Price. The Contractor is paid for the quantity of the work
done at the rate in the BOQ for each item

30. Variations

30.1 The Employer shall have power to order the Contractor to do any or all of the following as considered
necessary or advisable during the progress of the work by him
(a) Increase or decrease of any item of work included in the Bill of Quantities (BOQ);
(b) Omit any item of work;
(c) Change the character or quality or kind of any item of work;
(d) Change the levels, lines, positions and dimensions of any part of the work;
(e) Execute additional items of work of any kind necessary for the completion of the works; and
(f) Change in any specified sequence, methods or timing of construction of any part of the work.
30.2 The Contractor shall be bound to carry out the work in accordance with any instructions in this
connection, which may be given to him in writing by the Employer and such alteration shall not vitiate or
invalidate the contract.
30.3 Variations shall not be made by the Contractor without an order in writing by the Employer, provided
that no order in writing shall be required for increase or decrease in the quantity of an item appearing in
the BOQ so long as the work executed conforms to the approved drawings.
30.4 The Contractor shall promptly request in writing the Employer to confirm verbal orders and the officer
issuing oral instruction shall confirm it in writing within 30 days, failing which the work shall be carried
out as though there is no variation. In case of variation is approved, it shall be accompanied by BOQ,
Failing which the contractor shall be responsible for deviation if any. Further approval of Government
has to be obtained for the variation exceeding 5%.

31. Payments for Variations

31.1 Payment for increase in the quantities of an item in the BOQ up to 25% of that provided in the Bill of
Quantities shall be made at the rates quoted by the Contractor.
31.2 For quantities in excess of 125% of the tendered quantity of an item as given in the BOQ, the
Contractor shall be paid at the rate entered in or derived from in the Schedule of Rates (applicable for
the area of the work and current at the time of award of contract) plus or minus the overall percentage
of the original tendered rates over the current Schedule of Rates prevalent at the time of award of
contract.
31.3 If there is no rate for the additional, substituted or altered item of the work in the BOQ, efforts would
be made to derive the rates from those given in the BOQ or the Schedule of Rates (applicable for the
area of the work and current at the time of award of contract) and if found feasible the payment would
be made at the derived rate for the item plus or minus the overall percentage of the original tendered
rates over the current Schedule of Rates prevalent at the time of award of contract
31.4 If the rates for additional, substituted or altered item of work cannot be determined either as at 31.1 or
31.2 or 31,3 above, the Contractor shall be requested to submit his quotation for the items supported by
analysis of the rate or rates claimed, within 7 days.
31.5 If the Contractor's quotation is determined unreasonable, the Employer may order the Variation and
make a change to the Contract Price which shall be based on Employer’s own forecast of the effects of the
Variation on the Contractor's costs.
31.6 If the Employer decides that the urgency of varying the work would prevent a quotation being given
and considered without delaying the work, no quotation shall be given and the Variation shall be
treated as a Compensation Event.
31.7 Under no circumstances the Contractor shall suspend the work on the plea of non-settlement of rates
for items falling under this Clause.

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32. Submission of bills for payment

32.1 The Contractor shall submit to the Employer monthly bills of the value of the work completed less the
cumulative amount paid previously.
32.2 The Employer shall check the Contractor's bill and determine the value of the work executed which
shall comprise of (i) value of the quantities of the items in the BOQ completed and (ii) valuation of
Variations and Compensation Events.
32.3 The Employer may exclude any item paid in a previous bill or reduce the proportion of any item
previously paid in the light of later information.

33. Payments

33.1 Payments shall be adjusted for deductions for Advance payment, other recoveries in terms of the contract and
taxes, at source, as applicable under the law. The Employer shall pay the Contractor the within 60
days of submission of bill. The contractor shall be liableto pay liquidated damages forshortfall in progress.
For progress beyond the agreedprogrampayment is subject toavailability of the grants.
33.2 Items of the Works for which no rate or price has been entered in will not be paid for by the Employer
and shall be deemed covered by other rates and prices in the Contract.

34. Compensation events

34.1 The following are Compensation events unless they are caused by the Contractor:
(a) The Employer does not give access to a part of the Site by the Site Possession Date stated
in the Contract Data.
(b) The Employer orders a delay or does not issue drawings, specifications or instructions
required for execution of works on time.
(c) The Employer instructs the Contractor to uncover or to carry out additional tests upon
work which is then found to have no Defects.
(d) The Employer gives an instruction for dealing with an unforeseen condition, caused by the
Employer, or additional work required for safety or other reasons.
(e) The effect on the Contractor of any of the Employer’s Risks.
(f) The Employer unreasonably delays issuing a Certificate of Completion.
(g) Other Compensation Events listed in the Contract Data or mentioned in the Contract.
34.2 If a Compensation Event would cause additional cost or would prevent the work being completed
before the Intended Completion Date, the Contract Price shall be increased and/or the Intended
Completion Date is extended. The Employer shall decide whether and by how much the Contract Price
shall be increased and whether and by how much the Intended Completion Date shall be extended.
34.3 As soon as information demonstrating the effect of each Compensation event upon the Contractor's
forecast cost has been provided by the Contractor, it is to be assessed by the Employer and the
Contract Price shall be adjusted accordingly. If the Contractor's forecast is deemed unreasonable, the
Employer shall adjust the Contract Price based on Employer’s own forecast. The Employer will
assume that the Contractor will react competently and promptly to the event.
34.4 The Contractor shall not be entitled to compensation to the extent that the Employer's interests are
adversely affected by the Contractor not having given early warning or not having cooperated with the
Employer.

35. Tax

35.1 The rates quoted by the Contractor shall be deemed to be inclusive of the sales and other taxes that the
Contractor will have to pay for the performance of this Contract. The Employer will perform such
duties in regard to the deduction of such taxes at source as per applicable law.

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36. Liquidated damages

36.1 The Contractor shall pay liquidated damages to the Employer at the rate per day stated in the Contract
Data for each day that the Completion Date is later than the Intended Completion Date. The total
amount of liquidated damages shall not exceed the amount defined in the Contract Data. The Employer
may deduct liquidated damages from payments due to the Contractor. Payment of liquidated damages does
not affect the Contractor's liabilities.
36.2 If the Intended Completion Date is extended after liquidated damages have been paid, the Employer
shall correct any overpayment of liquidated damages by the Contractor by adjusting the next payment
of bill.

37. Cost of repairs

37.1 Loss or damage to the Works or Materials to be incorporated in the Works between the Start Date and
the end of the Defects Correction periods shall be remedied by the Contractor at the Contractor's cost if
the loss or damage arises from the Contractor's acts or omissions.

E. Finishing the Contract

38. Completion

38.1 The Contractor shall request the Employer to issue a Certificate of Completion of the Works and the
Employer will do so upon deciding that the Work is completed.

39. Taking over

39.1 The Employer shall take over the Site and the Works within seven days of issuing a certificate of
Completion.

40. Final account

40.1 The Contractor shall supply to the Employer a detailed account of the total amount that the Contractor
considers payable under the Contract before the end of the Defects Liability Period. The Employer
shall issue a Defect Liability Certificate and certify any final payment that is due to the Contractor
within 90 days of receiving the Contractor's account if it is correct and complete. If it is not, the
Employer shall issue within 90 days a schedule that states the scope of the corrections or additions that are
necessary. If the Final Account is still unsatisfactory after it has been resubmitted, the Employer shall decide
on the amount payable to the Contractor and make payment within 60 days of receiving the Contractor’s
revised account.

41. As built drawings

41.1 If “as built” Drawings20 are required, the Contractor shall supply them by the dates stated in the
Contract Data.
41.2 If the Contractor does not supply the Drawings by the dates stated in the Contract Data, or they do not
receive the Employer’s approval, the Employer shall withhold the amount stated in the Contract Data
from payments due to the Contractor.

42. Termination

42.1 The Employer may terminate the Contract if the other party causes a fundamental
breach of the Contract.
42.2 Fundamental breaches of Contract include, but shall not be limited to the following:
(a) the Contractor stops work for 45 days when no stoppage of work is shown on the current
Program and the stoppage has not been authorized by the Employer;

20
Completion drawings

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(b) Deleted
(c) The Contractor becomes bankrupt or goes into liquidation other than for a reconstruction
or amalgamation;
(d) Deleted
(e) the Employer gives Notice that failure to correct a particular Defect is a fundamental
breach of Contract and the Contractor fails to correct it within a reasonable period of time
determined by the Employer;
(f) the Contractor does not maintain a security which is required;
(g) the Contractor has delayed the completion of works by the number of days for which the
maximum amount of liquidated damages can be paid as defined in the Contract data; and (h)
if the Contractor, in the judgment of the Employer has engaged in corrupt or fraudulent
practices in competing for or in the executing the Contract.
For the purpose of this paragraph : “corrupt practice” means the offering, giving, receiving
or soliciting of anything of value to influence the action of a public official in the
procurement process or in contract execution. “Fraudulent practice” means a
misrepresentation of facts in order to influence a procurement process or the execution of a
contract to the detriment of the Borrower, and includes collusive practice among Tenderers
(prior to or after Tender submission) designed to establish Tender prices at artificial non-
competitive levels and to deprive the Borrower of the benefits of free and open
competition.”
42.3 When either party to the Contract gives notice of a breach of contract to the Employer for a cause other
than those listed under Sub Clause 42.2 above, the Employer shall decide whether the breach is
fundamental or not.
42.4 Notwithstanding the above, the Employer may terminate the Contract for convenience.
42.5 If the Contract is terminated the Contractor shall stop work immediately, make the Site safe and secure
and leave the Site as soon as reasonably possible.

43. Payment upon Termination

43.1 If the Contract is terminated because of a fundamental breach of Contract by the Contractor, the
Employer shall prepare bill for the value of the work done less advance payments received up to the
date of the bill, less other recoveries due in terms of the contract, less taxes due to be deducted at
source as per applicable law and less the percentage to apply to the work not completed as indicated in
the Contract Data. Additional Liquidated Damages shall not apply. If the total amount due to the
Employer exceeds any payment due to the Contractor the difference shall be a debt payable to the
Employer.
43.2 If the Contract is terminated at the Employer's convenience or because of a fundamental breach of
Contract by the Employer, the Employer shall prepare bill for the value of the work done, the
reasonable cost of removal of Equipment, repatriation of the Contractor's personnel employed solely
on the Works, and the Contractor's costs of protecting and securing the Works and less advance
payments received up to the date of the certificate, less other recoveries due in terms of the contract,
and less taxes due to be deducted at source as per applicable law and make payment accordingly.

44. Property

44.1 All materials on the Site, Plant, Equipment, Temporary Works and Works are deemed to be the
property of the Employer, if the Contract is terminated because of a Contractor’s default.

45. Release from performance

45.1 If the Contract is frustrated by any event entirely outside the control of either the Employer or the
Contractor the Employer shall certify that the Contract has been frustrated. The Contractor shall make
the Site safe and stop work as quickly as possible after receiving this certificate and shall be paid for
all work carried out before receiving it and for any work carried out afterwards to which commitment
was made.

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F. Special Conditions of Contract

1. Labour :
The Contractor shall, unless otherwise provided in the Contract, make his own arrangements for
the engagement of all staff and labour, local or other, and for their payment, housing, feeding and
transport. The Contractor shall, if required by the Employer, deliver to the Employer a return in detail,
in such form and at such intervals as the Employer may prescribe, showing the staff and the numbers of
the several classes of labour from time to time employed by the Contractor on the Site and such other
information as the Employer may require.
2. Compliance with labour regulations :
During continuance of the contract, the Contractor and his sub contractors shall abide at all times by all
existing labour enactments and rules made there under, regulations, notifications and bye laws of the
State or Central Government or local authority and any other labour law (including rules), regulations,
bye laws that may be passed or notification that may be issued under any labour law in future either by
the State or the Central Government or the local authority. The Contractor shall keep the Employer
indemnified in case any action is taken against the Employer by the competent authority on account of
contravention of any of the provisions of any Act or rules made there under, regulations or
notifications including amendments. If the Employer is caused to pay or reimburse, such amounts as
may be necessary to cause or observe, or for non-observance of the provisions stipulated in the
notifications/bye laws/Acts/Rules/regulations including amendments, if any, on the part of the
Contractor, Employer shall have the right to deduct any money due to the Contractor including his
amount of security deposit. The Employer shall also have right to recover from the Contractor any
sum required or estimated to be required for making good the loss or damage suffered by the
Employer. The employees of the Contractor and the Sub-Contractor in no case shall be treated as the
employees of the Employer at any point of time.
3. Protection of Environment:
The contractor shall take all reasonable steps to protect the environment on and off the Site and to
avoid damage or nuisance to persons or to property of the public or others resulting from pollution,
noise or other causes arising as a consequence of his methods of operation. During continuance of the
contract, the contractor and his sub-contractors shall abide at all times by all existing enactments on
environmental protection and rules made there under, regulations, notifications and bye-laws of the
State or Central Government, or local authorities and any other law, bye-law, regulations that may be
passed or notification that may be issued in this respect in future by the State or Central Government or
the local authority.
4. In the case of the death of acontractor after executing theagreement/ commencement of thework, his
legal heir, if an eligibleregistered contractor and willing,can execute and complete the workat the
accepted tender ratesirrespective of the cost of the work.
5 Settlement of disputes Time Limit for Decision :
(a) If any dispute of difference of any kind whatsoever were to arise between the Executive
Engineer/Superintending Engineer and Contractor regarding the following matters namely;
i. The meaning of the specifications, designs, drawings and instructions hereinbefore
mentioned.
ii. The quality of workmanship or materials used on the work and;
iii. Any other question, claim, right, matter, thing whatsoever, in any way arising out of or relating
to the contract, design, drawings, specifications, estimates, instructions or orders or those
conditions or failure to execute the same whether arising during the progress of the work or after
the completion, termination or abandonment thereof, the dispute shall, in the first place be
referred to the Chief Engineer who has jurisdiction over the work specified in the contract the
Chief Engineer shall, within a period of ninety days from the date of being requested by the
Contractor to do so, give written notice of his decision to the Contractor.
Chief Engineer’s Decision Final;
(b) Subject to other form of settlement hereafter provided, the Chief Engineer’s decision in respect of
every dispute or difference so referred shall be final and binding upon the contractor. The said decision
shall forthwith be given effect to and contractor shall proceed with the execution of the work with all
due diligence.
6 Provision for price Adjustment is not applicable for this work as per GO no. FD 3 PCL 2008,
Bangalore, dated : 21-11-2008 & GO No:791 EXP-12/2015,Bangalore Dated:26.02.2016 .
In the circumstances explained in the preamble, in modificationof the Government Order dated: 26-11-
2004, it is directed that thefollowing price adjustment methods are applicable hereafter.

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a) For all works costing more than Rs.50 lakhs, if the period of execution is more than 12 months, the
price adjustment will be calculated as prescribed in Annexure to G.O. No: FD 59 PROCell/ 2004, dt:
26.11.2004.
b) If the period of execution is more than 6 months but less than or equal to 12 months for work costing
more than Rs.50 lakhs star rates in respect of specified materials (cement, steel and bitumen) only
shall be payable to the contractor based on the all India average wholesale price index for the said
materials.The star rates adjustment shall be as per the increase or decrease in the index as applied to
the said materials between the last date for receiving bids and the date of execution as per the
approved programme of works submitted by the contractor at the time of execution of agreement
which shall mandatorily be a part of the agreement.
c) If the period of execution is less than or equal to 6 months, for all works irrespective of the cost of
the works, price adjustment or star rates shall not be applicable.
d) In works contracts where price adjustment clause is provided, the price adjustment shall be
admissible from the date of opening of tenders (Original or extended).
e) Price adjustment clause shall not be included in Goods and Equipment tender documents. However,
in respect of tender documents for procurement of Electric Cables, Transformers, Generators, Motors
that have raw material component subject to price fluctuations, appropriate price adjustment clauses
may be incorporated by the Tender Inviting Authority in the tender documents, with the specific
approval of the concerned Head of the Department or Managing Director of the Public Sector
Undertaking/Board.
2. The above mentioned methods of price adjustment clause aresubject to the following conditions:
i) The price adjustment clause or the star rates shall notbe admissible if the contract period is extended
dueto lapse on the part of the contractor.
ii) For the cases (a) and (b) above, if the contract periodis extended due to no fault of the contractor,
themodifiedprogramme shall be approved by thecompetent authority and shall become a part
ofagreement for which price adjustment/star rates willbe applicable.
iii) For the purpose of working out price adjustment andstar rates, the price index issued from time to
time bythe Ministry of Commerce and Industry,Government of India should be adopted.
iv)The formulae for price adjustment shall be asprescribed in Annexure-1 to the G.O. No: FD
59PRO.Cell/2004 dated: 26.11.2004, which is appended.
3. The above instructions will only be applicable prospectively andshall not be applicable for contracts
concluded in the past or beingconcluded presently or for tenders already invited.
4. The above instructions shall apply to all Procurement Entities asdefined in Section 2(d) Chapter I of the
Karnataka Transparency inPublic Procurement Act, 1999.
5. The above instructions should be appropriately incorporated inthe Standard Tender Documents.

Contractor Executive Engineer

 29

SECTION 5: CONTRACT DATA

Items marked "N/A" do not apply in this Contract.

The following documents are also part of the Contract: Clause Reference

The Employer is :

Executive Engineer [1.1]

Public Works, Ports & Inland Water Transport Department
Special Division, Hunsur

Name of authorized Representative: __________________________

The name and identification number of the Contract is Construction of Compound wall at Silkworm factory in KR
Nagar TALUK
The Works consist of ---------------------------------------------------------------
[brief summary, including relationship to other contracts under the Project].

The start date shall be the date of issue of notice to proceed with the work. [1.1]

The Intended Completion Date for the whole of the Works is 2 months[15, 22]

The following documents also form part of the Contract: [2.2]

The Site Possession Date isone week after issue of work order [18]

The Site is located at KRNAGAR TALUK [1.1]

and is defined in drawings nos.

The Defects Liability Period is 1 year . [27]

The liquidated damages for the whole of the works are

At .0.10 % of contract amount per day. [36]

The maximum amount of liquidated damages for the whole of the works [36]
is ten percent of final contract price.

The date by which “as-built”25 drawings (in scale …26) in 2 sets are required is within 30 days of issue
of certificate of completion .. [41]

The amount to be withheld for failing to supply “as built”27 drawings by the date required is
Rs.15000/- [41]

The following events shall also be fundamental breach of the contract : [42.2]

1. The contractor has contravened Sub-clause 7.1 and Clause 9 of CC.

The percentage to apply to the value of the work not completed representing the Employer's [43.1]
additional cost for completing the Works shall be 3028 percent.

Contractor Executive Engineer

 30

SECTION 6 : SPECIFICATIONS
Please refer kppp.karnataka.gov.in

SECTION 7: DRAWINGS

Please refer kppp.karnataka.gov.in

31

Contractor Executive Engineer

 SECTION-8 BILL OF QUANTITIES

Rate (Rs)

Sl. No. Description of item Quantity Unit In figures In words Amount (Rs)
(with brief
specification and
reference to Book of
specification)

Please refer kppp.karnataka.gov.in .

Total Tender Price

(in figures)

(in
words)

Note:

(1) Item for which no rate or price has been entered in will not be paid for by the Employer when executed and shall be
deemed covered by the other rates and prices in the Bill of Quantities (refer: ITB Clause 11.2 and CC Clause 37.2).

(2) Unit rates and prices shall be quoted by the Tenderer in Indian Rupees.

(3) Where there is a discrepancy between the rate in figures and words, the lower of the two will govern.

[ITT Clause 24.1(a)]

(4) Where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by quantity,
the unit rate quoted shall govern [ITT Clause 24.1 (b)]

SECTION 9: FORMAT OF BANK GUARANTEE FOR SECURITY DEPOSIT

To: ______________________________________________ [name of Employer]

_________________________________________ [address of Employer]
Contractor Executive Engineer
 WHEREAS _________________________ [name and address of Contractor] (hereinafter called "the
Contractor") has undertaken, in pursuance of Contract No. _____ dated ________________ to execute
__________________________ [name of Contract and brief description of Works] (hereinafter called "the
Contract");

AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish
you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with
his obligations in accordance with the Contract;

AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee;

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of
the Contractor, up to a total of Rs.____________________ [amount of guarantee]
29
_Rupees__________________________ __________________________[in words], and we undertake to pay
you, upon your first written demand and without cavil or argument, any sum or sums within the limits of
____________________ [amount of guarantee]30 as aforesaid without your needing to prove or to show
grounds or reasons for your demand for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the Contractor before presenting
us with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract or of
the Works to be performed there under or of any of the Contract documents which may be made between you
and the Contractor shall in any way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

This guarantee shall be valid until 30 days from the date of expiry of the Defects Liability Period.

Signature and seal of the guarantor _____________________________

Name of Bank ____________________________________________
Address ____________________________________________
Date ____________________________________________

29
An amount shall be inserted by the Guarantor, representing the percentage of the Contract Price specified in
the Contract
30
An amount shall be inserted by the Guarantor, representing the percentage of the Contract Price specified in
the Contract

Contractor Executive Engineer