KARNATAKA NEERAVARI NIGAM LIMITED

(A Government of Karnataka Enterprise)

TENDER DOCUMENT

GAJ/ VEH/2022-23

Name of the Work:

Supply of Vehicle on Hire
basis to No.3 QC
division,Gajnur for the
year 2022-23

Name of the Division Executive Engineer,

KNNL, U.T.P.QC Division Shivamogga.
Telephone No : 08182 - 255484
Fax No : 08182 - 255484

Contractor Executive Engineer

1
 KARNATAKA NEERAVARI NIGAM LIMITED
(A Government of Karnataka Enterprise)
INDEX

Page
Sl.
Particulars
No. From
To
1. Face Sheet
2. Brief/ detailed Tender Notifications, Extension Notices etc.
3. Formal Tender Notice(Adapted version of KPWD Form
P.W.G.66)
4. Tender for Works
5. Declaration
6. Definition of terms used in the Contract Document
7. General Conditions of Contract
(adapted version of KPWD Form. P.W.G 65)
8. Schedule A
9. Schedule B
10. Schedule C
11. Additional Conditions of Contract
12. Detailed Technical Specifications
13. Circular
14. List of Drawings
15. List Of Land Owners
16. Drawings
17. Annexures :
A. Form of Bank Guarantee
B. Form of Agreement
C Schedule of Royalty Charges
D. Proceedings of Govt. of Karnataka vide G.O. No.
PWD/11/GMS/64 dated 10.03.1966 pertaining to deductions
towards shrinkage or settlement of embankments.
18 Enclosures
Note: Contractor shall give fill up the tender for works, the declaration and the Schedule
‘B’ and duly affix his signature. He shall also sign Schedule ‘A’ and Schedule ‘C ‘. Further,

Contractor Executive Engineer

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he shall sign at the end of all pages of tender documents and in all the drawings as
provided for therein.

Karnataka Neeravari Nigam Limited

(A Government of Karnataka Enterprise)

TENDER FACE SHEET

( TO BE FILLED AT THE TIME OF ISSUE OF TENDER DOCUMENT )

1 Name of Work : Supply of Vehicle on Hire basis to No.3 Q.C

Sub-Division, Gajanur for the year 2022-23

2 Tender schedule sold to :

3 Whether the contractor :

has registered in
KPWD / enrolled in
KNNL

4 Category of contractor : Vehicle Agency/Individual Vehicle Owner

5 Details and tender :

documents may be
downloaded

6 Last date for filled bids :

may be submitted
through e-portal

7 Date of opening of :
tender through e-portal

Accounts Superintendent Executive Engineer.

KNNL U.T.P. QC Division Shivamogga KNNL U.T.P. QC Division Shivamogga

Contractor Executive Engineer

3
 TO BE FILLED AT THE TIME OF OPENING THE TENDERS

1 Whether the contractor has : D.D./Banker’s Cheque/Bank

remitted the E.M.D. or not, and how Guarantee(Through E portal)
?

2 No. and date and amount of DD/ :

Banker’s Cheque/Bank Guarantee

3 Name of Bank :

4 Validity Period :

5 Whether the contractor fulfills all :

the conditions of EMD

6 Whether the tender fulfills all the :

conditions of Tender Notice and
conditions of contract etc.

7 Whether counter conditions if any :

are put by the contractor

8 Recommendations of the Executive :

Engineer for processing of the
tender

Opened by me on this day...........................................at.................................

Total No. of corrections in the tender:

Contractor Executive Engineer

4
Place : Executive Engineer.
Date : KNNL U.T.P. Divn. Shivamogga
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Contractor Executive Engineer

5
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Contractor Executive Engineer

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FORMAL TENDER NOTICE

Adapted version of KPWD Form PWG 66

Form - 1

Percentage Tenders in the prescribed forms are hereby invited by the

Executive Engineer KNNL Division .......................... on behalf of the Managing
Director of KNNL for the following work/works through e-procurement platform

1. NAME OF WORK :- Supply of Vehicle on Hire basis to No.3 Q.C Sub-Division, Gajanur
for the year 2022-23
2.
Estimated cost of the work put to tender:3,99,000
2.Blank tender Document which includes the complete set of drawings, the complete
specification of the work to be done, the schedule of quantities of various items of
work to be done, and the set of Conditions of Contract to be complied with the by the

Contractor Executive Engineer

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contractor whose tender may be accepted, can be applied for and obtained through
website www.eproc.karnataka.gov.in/eportal/index.seamlink

3.The contractors can request for e-tendering documents from __________ in the
web site http://eproc.karnataka.gov.in/eportal/index.seam link e–tender document on
payment (non-refundable) of Rs. _______ towards the transaction fee. While
applying the contractors can pay the transaction fee in the e-procurement portal
using payment modes, Credit card/Direct Debit/National electronic fund transfer
(NEFT)/ over the counter (OTC) up to _________ during office hours.
The contractor can have access to e–tender document from _______ to _______
up to _____ pm.
Submission of completed e-tendering document will be from _______ to
__________up to ______ pm.
4. Completed Tender document should be submitted through the e-procurement
portal on the website itself. In the event of tenders made by an individual, he should
sign documents with his full name. In the event of the tender being submitted by a
firm, it must be signed separately by each partner thereof or in the event of the
absence of a partner, it shall be signed on his behalf by a person holding a power of
attorney authorizing him to do so. Such power of attorney should be produced with
the tender and it must disclose that the firm is duly registered under the Indian
Partnership Act, if it is made by a Corporation it should be signed by a duly
authorized officer with satisfactory evidence of its authorization. Such Tendering
Corporations is required to furnish evidence of its corporate existence.

5. Authorized copies of the specifications, designs and drawings and the schedule of
rates and any relevant documents required in connection with the work shall be
open for inspection to the tenderers at the concerned office of the Executive
Engineer, KNNL UTP Division .................................... District during office hours.
The tenderers inspecting the documents should sign in the register kept for this
purpose in the office, in token of having seen those documents. The tenderers
should note that the quantities mentioned in the Schedule-B of contract form are
only approximate.

6. Each tenderer should give clearly in his tender, his residential address and postal
address. The delivery at the above named places of posting in the Post Box
regularly maintained by the Post Office or sending letter by Registered Post with
Acknowledgement due or by other communications by the Executive Engineer shall
be deemed sufficient service thereof.

7. The tender of the work shall not be witnessed by a contractor or contractors who
has/have tendered or who may tender for the same work. Failure to observe this
condition would render the tenders of the contractors tendering as well as witnessing
the tender liable for summary rejection.

8. The schedule of materials to be supplied by the Department and their rates will be
as indicated in Schedule-A of contract form. Tenderers shall quote their rates for
finished works accordingly. Not withstanding subsequent change in the market

Contractor Executive Engineer

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value for these materials, charges to the contractor will remain as originally entered
in the Schedule-A.

9. The percentage quoted by the contractor and the incidental tender amount on the
basis of percentage quoted must be inclusive of Sales Tax and any other duties,
taxes, etc. The contractor is also required to pay quarry Fees, Royalties, Octroi
Dues levied by the State Government or any Local Body or Authority and ground
rent if any, charged by the Executive Engineer for stacking materials. No extra
payment on this account will be made to the contractor.

10. The Person submitting the tender shall fill up the Schedule-B stating at what
percentage of work specified therein he is willing to undertake work.(Percentage
above or below amount mentioned in the Schedule-B shall be indicated both in
figures and words) Only one percentage shall be indicated in the schedule both in
figures and in words. The total cost of the whole work may also be shown therein.

i)In case of discrepancy between percentage quoted in words and figures, lower
of the two shall be considered. The contractor shall quote the percentage both in
words and figures. If he does not, the tender will be treated as incomplete and
shall be rejected.

ii) The amount stated in the Schedule-B of the contract form will be adjusted by the Executive
Engineer in accordance with the above procedure for the correction of errors, and the contractor shall
be bound by that, if the contractor does not accept the amount so corrected, the tender will be
rejected and earnest money will be forfeited.

11. Eligibility and qualification requirements:

The Tenderer should have been registered in KPWD class… /enrolled in KNNL
under category ___ and above in the selection list of contractors. (The copy of
certificate shall be scanned and attached to the e-tender document.

12 a-(i) Each tenderer must pay specified full Earnest Money of Rupees _______ in
the e-proc platform only through any of the payment modes such as Credit card/
Debit Card /NEFT/ OTC/ for the works for which the amount put to tender is below
Rs.50.00lakhs.

a-(ii) Each tenderer must pay an Earnest Money of Rupees upto 50,000-00 in the e-
proc platform through any of the payment modes such as Credit card/ Debit Card
/NEFT/ OTC/ ;and the remaining balance EMD of Rs.__________ through Bank
Guarantee issued by Nationalised/ Schedule Banks for the works for which the
amount put to tender is in between Rs.50.00lakhs up to Rs. 1.00Crore.

Contractor Executive Engineer

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 a-(iii) Each tenderer must pay an Earnest Money of Rupees upto 1,00,000-00 in the
e-proc platform through any of the payment modes such as Credit card/ Debit
Card /NEFT/ OTC/ ;and the remaining balance EMD of Rs.__________ through
Bank Guarantee issued by Nationalised/ Schedule Banks for the works for which the
amount put to tender is more than Rs. 1.00Crore.

Tenders without valid EMD shall be rejected.

b) The Bank Guarantee offered by the contractor will be subject to strict

observance of the rules on the Bank Guarantee Scheme laid down by
Government and of other instructions issued by Government/RBI/Banks/KNNL
from time to time. The form of Bank Guarantee is given in Annexure-A.

NOTE: The validity of Bank Guarantee etc., which is furnished as Earnest Money
along with the tender shall be for a period of one hundred eighty days from the date
specified for opening of tenders. In case of currency period of the tender were to be
extended by the tenderer at the instance of the Executive Engineer (vide para 17 (b)
below), the validity period of the Bank Guarantee etc., shall also simultaneously be
extended upto the date till which the tender is kept open. Successful tenderer
should extend the validity period of Bank Guarantee for a further period as indicated
in the bank guarantee formal given in Annexure-A.

13. The completed tender documents to be submitted from _________ to _______

up to 4-00PM in the website http://eproc.karnataka.gov.in/eportal/index.seamlink

14. Tenders will be opened by the Executive Engineer

(i) Technical Bid will be opened on _________ at______ AM / PM
(ii) Financial Bid . will be opened on _________ at______ AM / PM

15 a) The tenders for works remain open for acceptance for a period of one hundred
eighty days from the date of opening of tenders. If any tenderer withdraws his
tender before the said period or makes any modifications in the terms and conditions
of the tender which are not acceptable to accepting Authority then the whole amount
of Earnest Money Deposit specified in para 14 (a) shall forfeited to KNNL. The
Nigam is also at liberty to take any other penal action as it deems fit against such
contractor.

b) If delay in deciding the tender is considered to be inevitable the Executive

Engineer may seek in advance, the consent of the tenders agreeing to keep
open their offers for further period specified by the Executive Engineer.

16. If the percentage quoted by contractor for the work is below Ninety percent of the
estimated amount then the successful contractor shall furnish an additional
performance security in the form of Bank Guarantee for an amount equivalent to the
difference between the cost as per quoted percentage and 90% of the estimated
amount of all items. In case of contractor quoting percentage above 110% of the
estimated amount of all items, then over and above 110% of the estimated amount
will be withheld during the progress of work.

Contractor Executive Engineer

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 The additional performance security in the former case would be released if requested
for by the contractor only after satisfactory completion of maintenance period so certified
by the Executive Engineer. The withheld amount of the later case will be released only
after entire work contracted is fully completed and so certified by the Executive Engineer

17.The authority competent to accept the tenders shall have the right of rejecting all or any of tenders
without assigning any reasons and will not be bound to accept the lowest tender.

18. Earnest Money Deposit of the tenderers shall be refunded / returned, on

applications from them, after 7 days:

a) From the date of final decisions on the tenders received in the case of rejected
tenders,
b) From the date of expiry of the initial validity period of 180 days in the case of
tenders who do not extend the validity of their offer beyond that period.

No interest will be paid by the Karnataka Neeravari Nigam Limited on the

Earnest Money deposited.

19 The successful tenderer must produce the latest Income Tax clearance certificate
before the work is entrusted to him.

20. The contractor whose tender is accepted shall execute the agreement within 15
days from the written intimation of acceptance of tender. Additional 30 days time
may be allowed with a penalty of 0.5% of contract value.

21.The successful tenderer shall pay Security Deposit in value equivalent to 7.5% of
the cost of work (including earnest money) as laid down in clause 1 (a) of Contract
Form.

22. Failure on the part of the successful tenderer to pay the Security Deposit
amount, additional performance security, if any and to execute the contract
Agreement as provided in para 21 above would constitute a breach of the contract
and hence, he shall be liable for all the consequences resulting there from. Such
failure should entail forfeiture of Earnest Money Deposit. Such failure would also
entail removal of contractor’s name from the select list of contractors of KNNL. In
addition, the competent authority is entitled to have the work executed at the risk
and cost of the contractor. The contractor shall be responsible for making good, in
cash, this extra expenditure failing which the same shall also be recovered from his
dues from other works as contemplated in Clause 36 of the conditions of Contract.

23.The successful tenderer shall pay compensation to workmen working under him
for any injury caused during the execution of work as per Workmen’s Compensation
Act in force from time to time, failing which the amount will be deducted from his bills
and paid to the injured workmen.

Contractor Executive Engineer

11
24 If any part or whole of land required for the work is not yet acquired by the KNNL
it shall be the responsibility of the contractor to procure possession of such land by
consent of the land owner before commencement of work at no extra cost to KNNL
and no claim whatsoever relating to non-availability of land would be entertained.

25. The submission of tender by a contractor implies that, the contractor has read
the contents of the Tender Notice and Contract Form and all other papers included
in the tender document and made himself aware of the scope and the specifications
of the work to be done and the availability of the quantity of materials required.

26.The tender of any contractor who does not accept the conditions contained in the
Tender Documents is liable to be rejected.

27.Total cost of work on hand in KNNL with one contractor should not exceed Rs.
20.00 crores (Rs. twenty crores) excluding cost of any major works like dam
barrage, lift irrigation gates etc., The contractor should also enclose a statement of
works on hand in KNNL with their balance cost.

28. Bidders for the works who have already executed the works and / or executing
the works under Karnataka Neeravari Nigam Limited should enclose performance
certificates from the concerned executive Engineers for having satisfactorily
executed or executing the works under taken by them under Karnataka Neeravari
Nigam Limited. Such tenders received without performance certificates or
unsatisfactory performance are liable for rejection.

Contractor Executive Engineer

12
 TENDER FOR WORKS

Form -II
To
The Executive Engineer,
KNNL. QC Division. U.T.P,
SHIVAMOGGA
Sir,
Tender for Works: Supply of Vehicle on Hire basis to No.3 Q.C Sub-Division, Gajanur for the
year 2022-23
I/we hereby tender for the execution, for the Managing Director KNNL, Ltd. (herein
before and hereinafter referred to as Nigam of the work specified in the under mentioned
Memorandum within the time specified in the Memorandum of the rates quoted for each
item specified in Schedule ‘B’ (Memorandum showing items of works to be carried out) and
in accordance in all respects with specifications, designs, drawings, and instructions in
writing referred to in clause 12 of the annexed conditions of contract and agree that when
materials for the work are provided by the Nigam such material and the rates to be paid for
them shall be as provided in Schedule ‘A’ hereto.
a Name of work : Supply of Vehicle on Hire basis to No.3 Q.C Sub-
Division, Gajanur for the year 2020-21
b Estimated Cost Put to : 3,99,000
tender
c Earnest money @ 2.5% : 10000.00
d Security Deposit @ 5.0% : 20000.00
i Demand Draft/Bankers :
cheque/ Bank Guarantee
(not less than the amount
of earnest money vide (c)
above)
ii To be deducted from the :
current bills at the rate not
less than those mentioned
in column
iii In the table below clause : 10000+20000
1(i) of conditions contract
Total of (i) & (ii)
e Percentage, if any to :
deducted from each running
bill vide (d) (ii)
f Time allowed for the work : Upto March 2023
from the date of issue of

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13
 written order to commence

Should this tender be accepted, I/We hereby agree to abide by and fulfill all the
terms and provisions of the Conditions of Contract and the additional Conditions of Contract
annexed hereto and all the terms and provisions contained in Notice inviting Tenders so far
as applicable, and in default thereof to forfeit and pay to Nigam the sum of money
mentioned in the said conditions.

A sum of Rs ………….is hereby forwarded in the form of Demand Draft/Banker’s

Cheque in the approved form obtained from SBM....which is a Nationalized / Scheduled
Bank or Bank Guarantee from nationalized bank drawn in favour of KNNL payable at
Shivamogga.
I/We agree that should I/We fail to execute the agreement or to commence the
work specified in the above Memorandum an amount equal to the amount of the Earnest
Money shall be absolutely forfeited to the Nigam out of any other money due to me/us or
otherwise.
Any Notice required to be served on me/us shall be sufficiently served on me/us if
delivered to me/us personally or forwarded to me/us by post (registered or ordinary) or left
at my/our address given hereunder.

Dated.....................................this day of........................................

Dated the ..................day of..................

Witness Contractor Address

Address Occupation
________________ ________________
________________ ________________
________________ ________________
________________ ________________
Notes:
1) Amount to be specified in the Memorandum should be both in words and in figures.
2) The currency period of the tender shall be 180 days from the date of opening the
tender/tenders. If delay in deciding the tender is inevitable, the consent of the tenderer
agreeing to keep open his offer for a minimum further period should be obtained in
advance. The minimum further period for which the tenderer is required to keep his
offer open should invariably be specified before his consent is obtained.

Contractor Executive Engineer

14
 Wherever necessary, schedule showing dates by which the various items of work are to
be completed should be given at (f) above for items specified in schedule B.

KARNATAKA NEERAVARI NIGAM LIMITED

The following Declaration has to be given by the contractor at the time of

submission of the completed tender.

Name of Work : Supply of Vehicle on Hire basis to No.3 Q.C Sub-Division,

Gajanur for the year 2022-23

DECLARATION

I/We hereby declare that I/We have made myself/ourselves thoroughly conversant
with local conditions regarding all materials such as stones, murrum and sand etc., and the
labour on which I/We have based rates for this work, and that the specifications, plans,
designs, Conditions of Contract etc. on which rates are based, have been completely
studied by me/us before submitting the tender. I/We undertake to use only the best of
materials approved by the Executive Engineer construction/and by the Quality Control
Authority before starting the work and to abide by his decision.

Contractor Executive Engineer

15
 DEFINITION OF TERMS USED IN THE CONTRACT DOCUMENT
In constructing the conditions and specifications of contract, the following
expressions shall have the meanings herein assigned to them, unless there is something, in
the subject or the context inconsistent with such meanings.
“NIGAM” OR “KNNL” shall mean the Karnataka Neeravari Nigam Limited and its
successor if any.
“DEPARTMENT” shall mean the organizational setup of KNNL at the competent
level.
“CONTRACTOR” shall mean tenderer whether a firm, registered company,
partnership/Joint Venture or an individual, whose tender has been accepted by KNNL or by
an officer (duly authorised in this behalf) on behalf of Karnataka Neeravari Nigam and who
have entered into an agreement with Karnataka Neeravari Nigam for due fulfillment of the
contract and shall include the legal representatives, successors and permitted assignees.
“EMPLOYER” means Managing Director, Karnataka Neeravari Nigam Limited
“ENGINEER” shall mean, the Chief Engineer, in-charge of the Project or such other
officer as may be appointed to act as the Engineer for the purpose of the contract and shall
also mean and include the Superintending Engineer and the Executive Engineer or an
officer of equivalent rank directly in-charge of the work or any part thereof.
The “ENGINEER” where named as the final authority for decision shall only mean
the Chief Engineer in-charge of the work or his duly authorised assistants
“CHIEF ENGINEER” ,”SUPERINTENDING ENGINEER”, EXECUTIVE
ENGINEER” shall mean the Chief Engineer, Superintending Engineer, Executive Engineer
in charge of the work.
“PLANT” shall mean and include any or all plant, machinery, tools and other
implements of all description necessary for the execution of the work in safe and workman
like manner.
“WORK” or “WORKS” shall mean the work or works entrusted to be executed in
or in virtue of the contract whether temporary or permanent and whether original, altered,
substituted or additional.
“CONTRACT” and “CONTRACT DOCUMENTS” shall mean and include the
agreement, the conditions of contract, the additional conditions of contract, the detailed
technical specifications and all annexures and appendices thereto such as Schedule “A”,
Schedule “B”, Schedule “C” and Drawings and all other documents annexed.

Contractor Executive Engineer

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 “SPECIFICATION” shall mean the Detailed Technical specifications, which form
part tender and any additions or modifications thereof as may from time to time be
furnished or approved in writing by the Engineer.

“SITE” shall mean and include all the land in which the operations in respect of the
work are carried out. It shall also include the material stacking yard and the area where
permanent or temporary structures are put up for facilitating the execution of the work.

“TEST” shall mean such tests as are required to be carried out either by the
Contractor or by the Engineer, from time to time and on completion as detailed in the
specifications before the work is certified as being satisfactory and is taken over by
Engineer-in-Charge.

“MONTH” shall mean the months as reckoned by English Calendar.

“DAY” shall mean a day of 24 hours from midnight to midnight irrespective of

number of hours worked in that day.

“REGISTERING AUTHORITY” shall mean (1) the Chief Engineer, P.W.D.

Communications and Buildings, Bangalore/Dharwad or (2) The competent authority of
KNNL as the context demands.

Words used in singular shall also include the plural and vice-versa where the context
so demands.

Contractor Executive Engineer

17
 GENERAL CONDITIONS OF CONTRACT

CONTENTS
Clause – 1 Security Deposit

Clause – 2 Penalty for Delay

Clause – 3 Action when whole of Security Deposit is forfeited

Clause – 4 Contractor to remain liable to pay compensation if action is not taken under
Clause-3.

Clause – 5 Grant of Extension of time

Clause – 6 Issue of Final Certificate

Clause – 7 Contractor to submit bills monthly in printed form

Clause – 8 Payment proportionate to work approved and passed

Clause – 9 Stores supplied by KNNL

Clause – 10 Unused Materials

Clause – 11 No claim to compensation on account of loss due to delay in supply of

Materials by KNNL

Clause – 12 Definition of Work

Clause – 13 Alteration in quantity of work specification and designs, additional work,

deletion of work

Clause – 14 Time limit for unforeseen claims

Clause – 15 No claim to any payment or compensation for deletion of whole or part of

work

Clause – 16 Action and penalty in case of bad work

Clause – 17 Work to be open to inspection – contractor or responsible agent to be present

Clause – 18 Notice to be given before work is covered up

Clause – 19 Contractor liable for damage done, and for imperfections for twelve months
after certificate of completion

Clause – 20 Contractor to supply plant, ladders, scaffolding, etc., and is liable for damages
arising from non provision of lights, fencing etc.
Clause – 21 Issue of plant and Machinery on hire

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18
Clause – 22 Measures for prevention of fire

Clause – 23 Liability of contractor for any damages done in or outside work area

Clause – 24 Employment of female labour

Clause – 25 Work on notified holiday

Clause – 26 Work not to be sublet

Clause – 27 Sum payable by way of compensation to be considered as reasonable

compensation without reference to actual loss

Clause – 28 Approval of Executive Engineer necessary for changing the constitution of a

Firm or before entering into partnership agreement, consequences of not
obtaining prior approval

Clause – 29 Settlement of disputes and time limit for decision

Clause – 30 Contractor to pay compensation under workmen’s compensation act.

Clause – 31 Contractor to provide personnel safety equipment, first aid apparatus,

treatment etc.

Clause – 32 Minimum age of persons employed by contractor

Clause – 33 Employment of Scarcity Labour

Clause – 34 Contractor not entitled to any claim or compensation for delay in execution of
work, borrow pits

Clause – 35 Method of payment of bills

Clause – 36 Set off against any claim of KNNL/Government under other contracts.

Clause – 37 Rates inclusive of Sales Tax etc.

Clause – 38 Contractor to obtain labour etc. from nearest employment exchange

Clause – 39 Dues to be recovered as if they were arrears of land revenue

Clause – 40 Contractor to comply with provisions of Apprentice Act

Clause – 41 Contractor to subscribe to worker’s and contractor’s benevolent fund

Clause – 42 Deleted

Clause – 43 Contractor not to quote price exceeding controlled price fixed by Government.

Clause – 44 Change in cost, price adjustment

Contractor Executive Engineer

19
 GENERAL CONDITIONS OF CONTRACT

(Adapted version of KPWD form PWG65)

SECURITY DEPOSIT

Clause 1 (a) - The person/persons whose tender may be accepted(hereinafter called the
Contractor which expression shall unless the context otherwise requires, includes his heirs,
executors, administrators and assigns) shall pay security deposit in Demand Draft/Bank
Guarantee/Banker’s Cheque of any Nationalised Bank equivalent to the Earnest Money
Deposit indicated in Column (ii) of the table given below and shall permit KNNL

(a). To deduct at the percentage mentioned in Column (iii) of the table given below of all
moneys payable for work done under the Contract, at the time of making such payments to
him/them and

(b) to hold such deductions as Further Security Deposit.

Estimated cost of the work (*) E.M.D. (**) F.S.D.

% age %age
__________________________________________________________________________
____
(i) (ii) (iii)
Upto Rs. 5,00,000 2.5% 5.0%
Above Rs. 5,00,000 upto Rs. 10,00,000 2.0% 5.5%
Above Rs. 10,00,000 upto Rs. 20,00,000 1.5% 6.0%
Above Rs. 20,00,000 1.0% 6.5%
___________________________________________________________________
(*) E.M.D. = Earnest Money Deposit.
(**) F.S.D. = Further Security Deposit.
Addition or Reduction in Security Deposit:
(b) In cases where additions are made to the tendered work under the provisions of
clause-13 an additional amount of Security Deposit at the rates mentioned in Sub-clause
(a) above should be paid by the Contractor. If a portion of the work is withdrawn from the
Contractor under the provisions of Clause-15(a) a proportionate reduction in the amount of
Security Deposit may be allowed by the Executive Engineer.

Contractor Executive Engineer

20
Conversion to interest bearing securities:
(c) The Security Deposit paid in cash as also the F.S.D. deducted from the bills, may,
at the cost of the Depositor, be converted into interest bearing securities provided that the
depositor has expressly desired this in writing.
Release against Bank Guarantee:

(d)When the Further Security Deposit deducted from the bills exceeds Rs. One lakh,
the amount in excess of Rs. One lakh, at the request of the contractor, be released to him
against the production of Bank Guarantee for an equivalent amount in the prescribed form.
The Bank Guarantee should be kept valid till the completion of the period mentioned in
Sub-clause (f) below.

Dues to KNNL, to be set off against Security Deposit:

(e) All compensation or other sums of money payable by the Contractor to KNNL
under the terms of this contract may be realised or deducted from any amount payable to
him or Security Deposit payable to him or from the interest arising there from, or from any
sums which may be due or may become due by KNNL to the Contractor on any account
whatsoever and in the event of his security deposit being reduced by reason of any such
realisation or deduction as aforesaid, the Contractor shall, within ten days thereafter, make
good in cash any sum or sums which have been deducted from, or raised by sale of his
security deposit or any part thereof.

Refund of Security Deposit:

(f) The Security Deposit lodged/paid by a Contractor shall be refunded to him after
the final bills are paid or after twelve months, from the date of completion of the work,
during which period the work should be maintained by the Contractor in good order,
whichever is later.

PENALTY FOR DELAY

WRITTEN ORDER TO COMMENCE WORK

Clause 2 :
(a) After acceptance of the tender, the Executive Engineer shall issue a written order
to the successful tenderer to commence the work. The Contractor shall enter upon or
commence any portion of work only with the written authority and instructions of the
Executive Engineer. Without such instructions the Contractor shall have no claim to
demand for measurements of or payment for, work done by him.

Programme of work

(b) The time allowed for carrying out the work as entered in the tender shall be
strictly observed by the contractor. It shall be reckoned from the date of issue of written
orders to commence work. The work shall throughout the stipulated period of the contract
be proceeded with, with all due diligence (time being deemed to be the essence of the

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21
contract on the part of the Contractor). To ensure good progress during the execution of
the work, the contractor shall be bound (in all cases in which the time allowed for any work
exceeds one month) to comply with the time schedule according to the programme of
execution of the work as agreed upon and enclosed to the contract. In the absence of
specific agreed programme the contractor shall be bound to complete.
…… of the work in ….of the time
…… of the work in …..of the time
……. of the work in ….of the time
Full of the work in full time

Note: The quantity of the work to be done within a particular time to be specified above
when the programme chart is not annexed, shall be fixed and inserted in the blank space
kept for the purpose by the officer competent upto the level of Chief Engineer to accept the
contract after taking into consideration the circumstances of each case, and the contractor
shall abide by the programme of detailed progress laid down by that officer.

The following proportions usually be found suitable in 1/4, 1/2, 3/4 of the time:
(i) Reasonable progress of earthwork that could be achieved will be 1/6, 1/2, 3/4
the respectively of total value of the work to be done.
(ii) ii) Reasonable progress of masonry work and concerting that could be achieved
will be 1/10th, 4/10th, 8/10ths of the total value of the work to be done.

Review of progress and responsibility for delay etc.

(c.) The progress of all works costing Rs. 1 lakh and above shall be reviewed by the
Executive Engineer with the contractor during the first fortnight of every month. Such a
review shall take into account the programme fixed for the previous month, obligations on
the part of the Karnataka Neeravari KNNL Limited like the supply of materials, drawings,
and also the obligations on the part of the Contractor.

Appoionment of responsibility for delay between Contractor and KNNL

In case the progress achieved falls short by more than 25 percent of the cumulative
programme, the reasons for such shortfall shall be examined and a record made thereof
apportioning the responsibilities for the delay between the Contractor and the KNNL. This
record should be signed in full and dated both by the Executive Engineer and the
Contractor.

Contractor Executive Engineer

22
Shortfall in progress made up subsequently
To the extent the shortfall is assessed as due to the delay on the part of the
contractor, a notice shall be issued to him by the Executive Engineer to make up the
shortfall in the succeeding month. If the shortfall is not made up before the progress of
the work is reviewed during the second month succeeding the month in which the shortfall
was observed, the Contractor shall be liable to pay penalty as indicated in Clause 2 (d)
below.
Grant of extension of time:
If the delay is attributable to reasons beyond the control of the Contractor, requisite
extension of time shall be granted by the Executive Engineer in accordance with Clause 5
after obtaining the approval of his higher authorities, wherever necessary.
Review of progress by Superintending Engineer/Chief Engineer:
The Superintending Engineer shall review the progress once in every six months all
contracts of value more than Rs. 5 lakhs and up to Rs. 100 lakhs. In respect of contracts
of value Rs. 100 lakhs and above the review shall be done by the Chief Engineer once in six
months. These reviews are in addition to the monthly reviews required to be done by the
Executive Engineer. The results of the review by the higher authorities shall, wherever
necessary, be incorporated in the next review by the Executive Engineer.
Settlement of dispute regarding shortfall in progress:
In case of dispute between the Chief Engineer and the Contractor regarding the
responsibility for the shortfall in progress, the matter shall be referred to the Managing
Director, KNNL who shall thereupon give a decision within one month of the date of receipt
of reference. The decision of the Managing Director, shall be final and binding on the
Contractor and the Executive Engineer.
Penalty for delay:
(d) In respect of the shortfall in progress, assessed as due to the delay on the part
of Contractor as per Clause 2(b) and 2(c), the Contractor shall be liable to pay as penalty
an amount equal to one percent of the estimated cost of the balance work assessed
according to the programme, for every day that the due quantity of work remains
incomplete, provided always that the total amount of penalty to be paid under the
provisions of this clause shall not exceed 7.5 percent of the estimated cost of the entire
work as shown in the tender, provided further that in the event of the contractor making

Contractor Executive Engineer

23
up the shortfall in progress within the stipulated or extended time of completion, the
penalty so recovered may be refunded on an application in writing by the contractor.
Note: If the Executive Engineer considers it necessary he shall be entitled to take
action as indicated in clause 3(d) also.
Adjustment of excess/over payments:
(e) Excess/over payments as soon as they are discovered should be adjusted in the next
running account bill of the contractor and in case the final bill has already been paid, the
excess/over payment made shall be recovered from the Security Deposit of the contractor
together with interest at 12 percent or such other percentages as KNNL may decide from
time to time, from the date of such excess or over payment to the date of recovery.
ACTION WHEN WHOLE OF SECURITY DEPOSIT IS FORFEITED:
Clause 3:In any case in which under any clause or clauses of this contract if the
contractor shall have rendered himself liable to pay compensation and/or penalty
amounting to the whole of his security deposit including the amount deducted in
installment's from his bills as Further Security Deposit the Executive Engineer, on behalf of
the , KNNL, shall have power to adopt any of the following courses as he may deem best
suited in the interest of KNNL.

Forfeiture of Security Deposit

(a) Without prejudice to KNNL’s right to recover any loss from the Contractor under
sub-clauses (b) and (c) of Clause 3 of the Contract, to rescind the Contract (of which
rescission notice in writing to the Contractor, under the hand of the Executive Engineer
shall be conclusive evidence) and in that case, the security deposit of the contractor
including whole or part of the lumpsum deposited by him and also the amount deducted
from his bills as Further Security Deposit shall stand forfeited and be absolutely at the
disposal of the KNNL.

Debiting cost of labour and materials supplied

(b) To employ labour paid by the KNNL and to supply materials to carry out the
work or any part of the work debiting the contractor with the cost of the labour and the
price of the materials (as to the correctness of which cost and price the certificate of the
Executive Engineer shall be final and conclusive against the contractor) and crediting him
with the value of the work done, in all respects in the same manner and at the same rates
as if it had been carried out by the contractor under terms of his contract, and in that case
the certificate of the Executive Engineer as to the value of the work done shall be final and
conclusive against the contractor.

Recovery of extra cost on unexecuted work

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24
 (c) To measure up the work of the contractor and to take such part thereof as is
remaining unexecuted out of his hands, and to give it to another contractor to complete it
in which case any expenses which may be incurred in excess of the sum which would have
been paid to the original contractor, if the whole work had been executed by him (as to the
amount of which excess expenses the certificate in writing of the Executive Engineer shall
be final and conclusive) shall be borne and paid by the original contractor and shall be
deducted from any money due to him by the KNNL under the contract or otherwise or from
his security deposit or the proceeds of the sale thereof, or a sufficient part thereof.

Action against unsatisfactory progress

(d) If the contractor does not maintain the rate of progress as required under Clause
2 and if the progress of any particular portion of work is unsatisfactory even after taking
action under Clause 2(c) and 2(d) the Executive Engineer shall be entitled to take action
under Clause 3 (b) or 3(c) at his discretion in order to maintain the rate of progress after
giving the contractor 10 days notice in writing whereupon the contractor will have no claim
for any compensation for any loss sustained by him owing to such actions.

No Compensation for loss sustained on advance action:

(e) In the event of any of the above courses being adopted by the Executive
Engineer, the contractor shall have no claim to compensation for any loss sustained by him
by reason of his having purchased or procured any materials or entered into any
engagements or made any advances on account of or with a view to the execution of the
work or the performance of the contract. And in case the contract shall be rescinded under
the provision aforesaid the contractor shall not be entitled to recover or be paid any sum
for any work therefor actually performed by him under his contract unless and until the
Executive Engineer shall have certified in writing the performance of such work and the
amount payable in respect thereof and he shall only be entitled to be paid the amount so
certified.

CONTRACTOR TO REMAIN LIABLE TO PAY COMPENSATION IF ACTION IS

NOT TAKEN UNDER CLAUSE 3

Clause 4:In any case in which any of the powers conferred upon the Executive
Engineer by Clause 3 thereof shall have become exercisable and the same shall not have
been exercised, the non-exercise thereof shall not constitute a waiver of any of the
conditions hereof and such powers shall not withstanding be exercisable in the event of any
future case of default by the contractor for which under any Clause thereof he is declared
liable to pay compensation or penalty amounting to the whole of his security deposit and

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25
the liability of the contractor for past and future compensation or penalty shall remain
unaffected.

Power to take possession of or require removal of or sell contractor's

properties

In the event of the Executive Engineer taking action under sub-clause (a) or
(c) of Clause-3, he may, if he so desires, take possession of all or any tools, plant,
materials and stores in or upon works or the site thereof or belonging to the contractor, or
procured by him and intended to be used for the execution of the work or any part thereof,
paying or allowing for the same in account at the contract rates, or in the case of contract
rates not being applicable, at current market rates, to be certified by the Executive
Engineer whose certificate thereof shall be final. In the alternative, the Executive Engineer
may, after giving notice in writing to the contractor or his clerk of the works, foreman or
other authorised agent, require him to remove such tools, plant, materials or stores from
the premises within a time to be specified in such notice; and in the event of the contractor
failing to comply with any such requisitions, the Executive Engineer may remove them at
the contractor's expense or sell them by auction or private sale on account of the
contractor and at his risk in all respects, and the certificate of the Executive Engineer as to
the expense of any such removal, and the amount of the proceeds and expense of any
such sale shall be final and conclusive against the contractor.

GRANT OF EXTENSION OF TIME

Clause 5: (a) If the contractor shall desire an extension of the time for completion
of the work on the ground of his having been unavoidably hindered in its execution or on
any other ground, he shall apply in writing to the Executive Engineer before the expiration
of the period stipulated in the tender or before the expiration of 30 days from the date or
which he was hindered as aforesaid or on which the cause for asking extension occurred,
whichever is earlier and the Executive Engineer or other competent authority may, if in his
opinion there are reasonable grounds for granting an extension, grant such extension as he
thinks necessary or proper. The decision of such competent authority in this matter shall
be final.

(b) The time limit for completion of the work shall be extended commensurate with
its increase in cost occasioned by alterations or additions and the certificate of the
Executive Engineer or other competent authority as to such proportion shall be conclusive.

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26
 ISSUE OF FINAL CERTIFICATE - CONDITIONS REGARDING

Clause 6: On completion of the work the contractor shall report in writing to the
Executive Engineer the completion of the work. Then he shall be furnished with a certificate
by the Executive Engineer of such completion, but no such certificate shall be given nor
shall the work be considered to be complete until the contractor shall have removed from
the premises on which the work shall have been executed, all scaffolding, surplus materials
and rubbish and shall have cleaned thoroughly all wood work, doors, windows, walls, floor,
or other parts of any building, in or upon which the work has been executed, or of which
he may have had possession for the purpose of executing the work, nor until the works
shall have been measured by the Executive Engineer or other competent authority or
where the measurements have been taken by his subordinates until they have received the
approval of the Executive Engineer or other competent authority, the said measurements
being binding and conclusive against the contractor. If the contractor shall fail to comply
with the requirements of this clause as to the removal of scaffolding, surplus materials and
rubbish, and cleaning on or before the date fixed for the completion of the work, the
Executive Engineer or other competent authority may, at the expense of the contractor,
remove such scaffolding, surplus materials and rubbish, and dispose of the same as he
thinks fit and clean off such dirt etc., as aforesaid and contractor shall be liable to pay the
amount of all expenses so incurred, but shall have no claim in respect of any such
scaffolding or surplus materials as aforesaid except for any sum actually realised by the
sale thereof.

Closure of contract pending completion of minor items

Note-- In cases where it is not desirable to keep the building contract open for minor
items, such as flooring in the bath rooms, etc., which can be carried out only after
installation of sanitary work, the main contract may be finalised after getting a
supplementary agreement executed in the prescribed form by the same contractor for
doing the residual work.

CONTRACTOR TO SUBMIT BILLS MONTHLY IN PRINTED FORM

Clause 7: (a) A bill shall be submitted by the contractor on or before the 15th of
each month for all items of work executed in the previous month.
All bills shall be prepared in the prescribed printed or typed form in quadruplicate
and handed over to the subordinate in-charge of the work, Sub-Division or Division office
and acknowledgement obtained.

Contractor Executive Engineer

27
 The charges to be made in the bills shall always be entered at the rates specified in
the tender in full or in part as the case may be. In the case of any extra work ordered in
pursuance of these conditions and not mentioned or provided for in the tender, the charges
in the bills shall be entered at the rates hereinafter provided for such work.
Scrutiny of Bills and measurement of work
(b) The details furnished by the Contractor in the bill should be completely
scrutinised and the said work should be measured by the subordinate in the presence of
the Contractor or his duly authorised agent. The countersignature of the contractor or the
said agent in the measurement book shall be sufficient proof to the correctness of the
measurements which shall be binding on the contractor in all respects. If the contractor
does not submit the bills within the prescribed time the Executive Engineer may depute
within seven days of the prescribed date, a subordinate to measure up the said work. The
countersignature of the contractor shall be obtained in the Measurement Book concerned
with reference to which the bill may be prepared by the department.
Filing of objections to measurements, by contractor
(c) Before taking any measurement of any work as has been referred to in
Clause 7 (b) above the Executive Engineer or a sub-ordinate deputed by him shall give
reasonable notice to the contractor. If the Contractor fails to attend at the measurements
after such notice or fails to countersign or to record the difference, within a week from the
date of measurements in the manner required by the Executive Engineer, then in any such
event, the measurements taken by the Executive Engineer or by the subordinate deputed
by him as the case may be, shall be final and binding on the contractor and the contractor
shall have no right to dispute the same.
(d) One copy of the passed bill shall be given to the Contractor without any
charge.
PAYMENT PROPORTIONATE TO WORK APPROVED AND PASSED
Clause 8: The contractor shall, on submitting the bill and after due verification by
the subordinate as per Clause 7 (b) be entitled to necessary payment proportionate to the
part of the work then approved and passed by the Executive Engineer or other competent
authority whose certificate of such approval and passing of the sum so payable shall be
final and conclusive against the contractor.
Payment at reduced rates
The rates for several items of works agreed to within, shall be valid only when
the items concerned are accepted as having been completed fully in accordance with the
stipulated specifications. In case where the items of work are not accepted as so

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28
completed, the Executive Engineer or other competent authority may reject the items of
work or may make payment on account of such items at such reduced rates as he may
consider reasonable in the preparation of final or on account bills.
Payment on intermediate certificates be regarded as advances
All such intermediate payments shall be regarded as payments by way of
advance against the final payments only and not as payments for work actually done and
completed, and shall not preclude the Executive Engineer or other competent authority
from requiring any bad, unsound, imperfect or unskillful work to be removed or taken away
and reconstructed or re-erected nor shall any such payment be considered as an admission
of the due performance of the contract or any part thereof in any respect or the accruing of
any claim, nor shall it conclude, determine or affect in any other way the powers of the
Executive Engineer or other competent authority as to the final settlement and adjustment
of the accounts or otherwise or in any other way vary or affect the contract.
Submission of Final bill and its settlement
The final bill shall be submitted by the Contractor within one month of the
date of actual completion of the work in all respects. His claims shall be settled (except
those under dispute) within two months thereafter in respect of works costing up to Rs.2
lakhs and within five months thereafter in respect of works costing more than Rs.2 lakhs.
Disputed Items
The Contractor shall submit a list of the disputed items within 30 days from the
disallowance thereof and if he fails to do so this, his claim shall be deemed to have been
fully waived and absolutely extinguished.
Where royalty is sought to be recovered from materials brought in to the project
area from outside, the Executive Engineer shall certify that the material has been brought
from outside on production of transit permit of the Mines and Geology department.

STORES SUPPLIED BY GOVERNMENT(KNNL)

Clause 9: If the specification or estimate of the work provides for the use of any
special description of materials to be supplied from the store of the KNNL or if it is required
that the Contractor shall use certain stores to be provided by the Executive Engineer or
other competent authority (such material and stores, and the prices to be charged there for
as hereinafter mentioned being so far as practicable for the convenience of the contractor
but not so as in any way to control the meaning or effect of this contract specified in the
schedule or memorandum hereto annexed) the contractor shall be supplied with such
materials and stores as may be required from time to time to be used by him for the
purposes of the contract only and the value of the full quantity of the materials and stores
so supplied shall be set off or deducted from any sums then due, or thereafter to become
due to the contractor under the contract, or otherwise, or from the security deposit, or the
proceeds of sale thereof. IF the security deposit is held in KNNL securities the same of a
sufficient portion thereof shall in that case be sold for purpose

Contractor Executive Engineer

29
Materials shall remain the absolute property of KNNL and be open to inspection
All materials supplied to the contractor shall remain the absolute property of KNNL
and shall on no account be removed from the site of work, and shall at all times be open to
inspection by the Executive Engineer or other competent authority. Any such materials
unused and in perfectly good condition at the time of completion or determination of the
contract shall be returned to the KNNL stores, if the Executive Engineer or other competent
authority so requires by a notice in writing given under his hand; but the contractor shall
not be entitled to return any such materials except with the consent of the Executive
Engineer or other competent authority and he shall have no claim for compensation on
account of any such material supplied to him as aforesaid but remaining unused by him or
for any wastage in or damage to any such materials.
UNUSED MATERIALS
Clause 10(a): The contractor shall see that only the required quantities of
materials are indented. Any such materials remaining unused and in perfectly good
condition at the time of completion or determination of the contract, shall be returned to
the Executive Engineer at a place where directed by him, if by a notice in writing under his
hand, he shall require them. Credit for such materials will be given at the issue rate
actually charged for these materials excluding storage charges, or market rate, whichever
is lower. The contractor shall not be entitled to cartage and incidental charges for
returning the surplus materials from and to the stores wherefrom they were issued.
Recovery of cost of materials drawn in excess of actual requirements.
After the completion of the work the actual quantity of departmentally supplied
materials consumed in the various items or work shall be assessed on the basis of the
measurements recorded in the measurement books for purpose of payment. Over this
quantity a variation shall be reasonably allowed for wastage of materials during execution.
If the materials are drawn from KNNL Stores in excess of actual requirements of the works
as assessed above (including the reasonable variation towards wastage as stated above)
the cost of excess materials drawn from the KNNL stores, and not returned by the
contractor in good condition shall be recovered at twice the issue rate including storage
charges.
Recovery of cost of materials disposed off unauthorisedly or not stored at
site-Black listing of contractor.

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30
(b) In cases where it is noticed that materials and stores supplied to the contractor have
not been stored at the site of work or have been unauthorisedly disposed off, the cost of
such materials shall be recovered at twice the issue rate including storage charges or at
twice the market rate, whichever is higher, Action may also be initiated for the removal of
the name of the contractor from the approved list of contractors and also to black list the
contractor.

NO CLAIM TO COMPENSATION ON ACCOUNT OF LOSS DUE TO DELAY IN SUPPLY

OF MATERIALS BY KNNL.
Clause 11(a) The contractor is required to keep himself in touch with day-to-day
position regarding supply of materials specified in Schedule-A and make adjustments in the
programme of work to the extent possible and desirable.
(b) The contractor shall not be entitled to claim any compensation from KNNL for
the loss suffered by him on account of any delay by KNNL in the supply of materials
entered in Schedule. However, in the case of such delays in the supply of materials, the
KNNL shall grant such extension of time for the completion of the works as shall appear to
the Executive Engineer or other competent authority to be reasonable in accordance with
the circumstances of the case. The decision of the Executive Engineer or other competent
authority as to the extension of time shall be accepted as final by the Contractor.

Procurement of Schedule-A stores by contractor

(c.) In case of non-availability of materials specified in Schedule-A, the Executive
Engineer may permit the Contractor in writing to procure such materials from his own
source and use them on works provided that the materials are in accordance with the
standards and specification stipulated in the Tender, designs and drawings. The contractor
is not entitled to any claim on account of higher rates paid by him than those specified in
Schedule A for materials procured by him.
DEFINITION OF WORK
Clause 12 (a) The expression 'Work' in or 'Works' where used in these conditions,
shall unless there be something in the subject or context repugnant to such construction,
be constructed to mean the work or works contracted to be executed under or in virtue of
the contract, whether temporary or permanent and whether original, altered, substituted or
additional.
Work to be executed in accordance with specifications, drawings, orders
etc.

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31
 (b) The contractor shall execute the whole and every part of the work in the most
sound and substantial and workmanlike manner, and in strict accordance with the
specifications both as regards materials and workmanship. The work shall also conform
exactly, fully and faithfully to the designs, drawings and instructions in writing relating to
the work signed by the Executive Engineer or other competent authority and lodged in his
office and to which the contractor shall be entitled to have access at such office, or on the
site of the work for the purpose of inspection during office hours and the contractor shall, if
he so requires, be entitled at his own expense to obtain copies of the specifications and of
all such designs and drawings and instructions as aforesaid.

The detailed Technical Specifications

(c.) The detailed Technical Specifications, which forms a part of the contract,
accompanies the Tender Document. In carrying out the various items of work as described
in Schedule B of the Tender Document and the additional, substituted, altered items of
work these Detailed Technical Specifications shall be strictly adhered to, supplemented by
relevant provisions of the Indian Standard Specifications, the Code of Practice, etc. of
which a list is furnished therein. The Indian Standard Specifications and code of practice to
be followed shall be the latest versions of those listed in the Detailed Technical
Specifications. Any class of work, not covered by the Detailed Technical Specifications,
shall be executed in accordance with the instructions and requirements of the Engineer and
the relevant provisions of the Indian Standard Specifications.

ALTERATION IN QUANTITY OF WORK, SPECIFICATIONS AND DESIGNS,

ADDITIONAL WORK, DELETION OF WORK.
Clause 13:(a)-i) The Engineer shall have power to make any alterations in,
omissions from, additions to or substitutions for the original specifications, drawings,
designs and instructions that may appear to him to be necessary or advisable during the
progress of the work. For that purpose or if for any other reason it shall in his opinion be
desirable, he shall have power to order the Contractor to do and the contractor shall do any
or all of the following:-
a) Increase or decrease the quantity of any work included in the contract,
b) Omit any such work,
c) Change the character or quality or kind of any such work,
d) Change the levels, lines, positions and dimensions of any part of the work,
e) Execute additional work of any kind necessary for the completion of the works
and

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32
 f) Change in any specified sequence, methods or timing of construction of any part
of the work.
Contractor bound by Engineer's instructions
The Contractor shall be bound to carryout the work in accordance with any
instructions in this connection which may be given to him in writing signed by the Executive
Engineer or other competent authority and such alteration shall not in any way vitiate or
invalidate the contract.
Orders for variations to be in writing
(ii) No such variations shall be made by the Contractor without an order in writing of
the Executive Engineer, provided that no order in writing shall be required for increase or
decrease in the quantity of any work where such increase or decrease in the quantity of
any work where such increase or decrease is the result of the quantities exceeding or being
less than those stated in the 'Schedule B', provided also that if for any reason the Executive
Engineer shall consider it desirable to give any such order verbally, the Contractor shall
comply with such order and any confirmation in writing of such verbal order given by the
Executive Engineer, whether before or after the carrying out of the order, shall be deemed
to be an order in writing within the meaning of this clause, provided further that if the
contractor shall within seven days confirm in writing to the Executive Engineer and if such
confirmation is not contradicted in writing within fourteen days by the Executive Engineer,
it shall be deemed to be an order in writing by the Executive Engineer.
(iii) Any additional work which the contractor may be directed to do in the manner
above specified as part of the work shall be carried out by the Contractor on the same
conditions in all respects on which he agreed to do the main work and at the same rates as
are specified in the tender for the main work. However, change in the unit rates tendered
and accepted shall be considered in respect of items under which the actual quantity of
work performed exceeds tender quantity by more than 25% and this change in rate will be
restricted only to such excess quantity (i.e. beyond 125 percent of the tendered quantity).
Rate for excess quantity beyond 125 percent of tendered quantity
(b) The Additional quantity which exceeds 125 percent of the tendered
quantity shall be paid at the rate(s) entered in or derived from the Schedule of rates
prevalent at the time of occurrence of additions and alterations, plus or minus the overall
percentage of the original tendered rates over the current Schedule of Rates of the year, in
which the tender is accepted (as per the comparative statement prepared at the time of
acceptance of the tender).
or the rates entered in the agreement whichever is lower.
Rates for additional, substituted altered items of work
(c) If the additional, substituted or altered work includes any class of work for which
no rate is specified in the contract, then such work shall be carried out at the rates

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33
specified for or derived from similar item of work in the agreement. In the absence of
similar items in agreement, rate shall be as specified for or derived from similar items in the
schedule of rates of the Division prevalent at the time of occurrence of such additional,
substituted or altered items of work, plus or minus the overall percentage of original
tendered rates over the current schedule of rates of the year in which tender is accepted as
mentioned in sub-clause (b) above. The rates so derived holds good till completion of the
work. With regard to the question whether the additional, substituted or altered item/items
of work/works is/are similar or not, to that/those in the agreement/in the Schedule of Rates
of the Division, the decision of the Superintending Engineer shall be final and binding on
the contractor till completion of work.
Determinations of rates for items not found in Estimate or Schedule of Rates
(d) If the rates for additional, substituted or altered work cannot be determined in the
manner specified in sub clauses (b) and (c) above, then the contractor shall within 7 days
of the date of receipt by him of the order to carry out the work, inform the Executive
Engineer of the rates which it is his intention to charge for such class of work, supported by
analysis of the rate or rates claimed. Thereupon the Executive Engineer shall determine
the rate or rates on the basis of observed data and failing this on the basis of prevailing
market rates. Under no circumstances the contractor shall suspend the work on the plea of
non-settlement of rates for items falling, under this clause. In the event of any dispute
regarding the rates for such items the decision of the Chief Engineer shall be final.
TIME LIMITS FOR UNFORESEEN CLAIMS
Clause 14:Under no circumstances whatever shall the contractor be entitled to any
compensation from the KNNL on any account unless the contractor shall have submitted
claim in writing to the Executive Engineer or other competent authority within 30 days of
the cause of such claim occurring.

NO CLAIM TO ANY PAYMENT FOR COMPENSATION FOR DELETION OF WHOLE

OR PART OF WORK
Clause 15:(a) If at any time after the execution of the contract documents, the
Executive Engineer or other competent authority shall, for any reason whatsoever, require
the whole or any part of the work, as specified in the tender, to be stopped for any period
or require the whole or part of the work (i) not to be carried out at all or (ii) not to be
carried out by the tendered contractor, he shall give notice in writing of the fact to the
contractor who shall thereupon suspend or stop the work totally or partially as the case
may be. In any such case, except as provided hereunder, the contractor shall have no
claim to any payment of compensation whatsoever on account of any profit or advantage
which he might have derived from the execution of the work in full but which he did not so
derive in consequence of the full amount of the work not having been carried out, or on
account of any loss that he may be put on account of materials purchased or agreed to be

Contractor Executive Engineer

34
purchased, or for unemployment of labour recruited by him. He shall not also have any
claim for compensation by reason of any alterations having been made in the original
specifications, drawings, designs and instructions which may involve any curtailment of the
work as originally contemplated.
Payment for materials already purchased or ordered by contractor
(b) Where, however, materials have already been purchased or agreed to be
purchased by the contractor before receipt by him of the said notice the contractor shall be
paid for such materials, at the rates determined by the Executive Engineer or other
competent authority provided they are not in excess of requirements and are of approved
quality and/or shall be compensated for the loss, if any, that he may be put to, in respect
of materials agreed to be purchased by him, the amount of such compensation to be
determined by the Executive Engineer or other competent authority whose decision shall be
final.
Labour charges during stoppage of work
(c) If the contractor suffers any loss on account of his having to pay labour
charges during the period during which the stoppage of work has been ordered under this
clause, the contractor shall on application, be entitled to such compensation on account of
labour charges as the Executive Engineer or other competent authority, whose decision
shall be final, may consider reasonable. Provided that the contractor shall not be entitled
to any compensation on account of labour charges if in the opinion of the Executive
Engineer or other competent authority, the labour could have been employed in the same
locality by the contractor for the whole or part of the period during which the stoppage of
the work has been ordered as aforesaid.
Time limit for stoppage of work
(d) The period of stoppage ordered by the Executive Engineer or other
competent authority should not ordinarily exceed six months. Thereafter the portion of
works stopped may be treated as deleted from this agreement if a notice in writing to that
effect is given to the Executive Engineer or other competent authority by the contractor
within seven days after the expiry of the above period.
Execution of work deleted
The portion of work thus deleted may be got executed from the same contractor on
supplemental agreement on mutually agreed rates which shall not exceed current Schedule
of Rates plus or minus tender percentage.
ACTION AND PENALTY IN CASE OF BAD WORK
Clause 16:If at any time before the security deposit is refunded to the contractor, it
shall appear to the Executive Engineer or other competent authority or his subordinate in
charge of the works that any work has been executed with unsound, imperfect or unskillful

Contractor Executive Engineer

35
workmanship or with materials of inferior quality, or that any materials or articles provided
by him for the execution of the work are unsound, or of a quality inferior to that contracted
for, or are otherwise not in accordance with the contract, it shall be lawful for the Executive
Engineer or other competent authority to intimate this fact in writing to the contractor and
then notwithstanding the fact that the work, materials or articles complained of may have
been paid for, the contractor shall be bound forthwith to rectify, or remove and reconstruct
the work so specified in whole or in part, as the case may require, or if, so required shall
remove the materials or articles at his own cost, and in the event of his failing to do so
within a period to be specified by the Executive Engineer or other competent authority in
the written intimation aforesaid, the contractor shall be liable to pay a penalty not
exceeding one percent of the amount of the estimate for every day not exceeding ten days
during which the failure so continues and in the case of any such failure the Executive
Engineer or other competent authority may rectify or remove and re-execute the work or
remove and replace the materials or articles complained of as the case may be, at the risk
and expense in all respects of the contractor. Should the Executive Engineer or other
competent authority for any valid reasons consider that any such inferior work or materials
as described above is to be accepted or made use of, it shall be within his discretion to
accept the same at such reduced rates he may fix thereof.
WORK TO BE OPEN TO INSPECTION--CONTRACTOR OR RESPONSIBLE
AGENT TO BE PRESENT
Clause 17: (a) All works under or in course of execution or executed in pursuance
of the contract shall at all times be open to the inspection and supervision of the Executive
Engineer or other competent authority and his subordinates, and the contractor shall at all
times during the usual working hours, and at all other times at which reasonable notice of
the intention of the Executive Engineer or other competent authority or his subordinate to
visit the work shall have been given to the contractor, either himself be present to receive
orders and instructions or have a responsible agent duly accredited in writing present for
the purpose. Orders given to the contractor's duly authorised agent shall be considered to
have the same force and effect as if they had been given to the contractor himself.

Employment of technical staff :

(b) The Contractor shall employ the following technical staff during execution of this work:
i) One Graduate Engineer when the cost of the work to be executed is Rs. 25 lakhs or
more;
ii) One qualified Engineering Diploma Holder when the cost of the work to be
executed is more
than Rs. 10 lakhs but less than Rs. 25 lakhs.

Contractor Executive Engineer

36
 iii) In addition to (i) and (ii) above, the contractor shall employ different types of such
technical
personnel as may be directed by the Executive Engineer to ensure efficient
execution of work.
The technical staff so employed should be available at site whenever required by the
Engineer-in-charge to take instructions.

(c) If the contractor fails to employ technical staff as aforesaid, he shall be

liable to pay a sum of Rs. 10000 (Ten thousand only) for each month of default in the case
of Graduate Engineers and Rs. 5000 (Rupees five thousand only) for each month of default
in case of Diploma Holders.

(d) If the contractor himself possesses the required qualification and is

available at the site for receiving instructions from the Executive Engineer or other
competent authority 'vide' sub-clause (a) above it will not be necessary for the technical
staff to be available at site for receiving instructions.
NOTICE TO BE GIVEN BEFORE WORK IS COVERED UP
Clause 18:The contractor shall give not less than five days notice in writing to the
Executive Engineer or his subordinate in charge of the work before covering up or
otherwise placing beyond the reach of measurement any work in order that the same may
be measured, and correct dimensions thereof taken before the same is covered up or
placed beyond the reach of measurement, and shall not cover up or place beyond the
reach of measurement, any work without the consent in writing of the Executive Engineer
or other competent authority or his subordinate in charge of work; and if any work shall be
covered up or placed beyond the reach of measurement without such notice having been
given or consent obtained, the same shall be uncovered at the contractor's expense, and in
default thereof no payment or allowance shall be made for such work or for the materials
with which the same was executed.

CONTRACTOR LIABLE FOR DAMAGE DONE AND FOR IMPERFECTIONS FOR

TWELVE MONTHS AFTER CERTIFICATE OF COMPLETION
Clause 19: If the contractor or his workmen or servants shall break, deface, injure
or destroy any part of a building, structure, embankment or canal in which they may be
working, or any building, structure, embankment canal, road, fence, enclosure or grassland
or cultivated ground contiguous to the premises on which the work or any part thereof is
being executed, or if any damage shall be done to the work, while it is in progress from any
cause whatever or if any imperfections become apparent in it within Twelve months of the

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37
grant of a certificate of completion, final or otherwise, by the Executive Engineer or other
competent authority the contractor shall make good the same at his own expense, or in
default, the Executive Engineer or other competent authority may cause the same to be
made good by other workmen, and deduct the expenses (of which the certificate of the
Executive Engineer or other competent authority shall be final) from any sums that may be
due or may thereafter become due to the contractor, or from his Security Deposit or the
proceeds of sale thereof, or of a sufficient portion thereof.

CONTRACTOR TO SUPPLY PLANT, LADDERS, SCAFFOLDINGS, ETC., AND IS

LIABLE FOR DAMAGES ARISING FROM NON-PROVISION OF LIGHTS, FENCING,
ETC.
Clause 20:The contractor shall supply at his own cost all materials (except such
special materials, if any, as may, in accordance with the contract, be supplied from the
KNNL Stores) plant, tools, appliances, implements, ladders, cordage, tackle, scaffolding and
temporary works requisite or proper for the proper execution of the work, whether, in the
original, altered or substituted form and whether included in the specifications, or other
documents forming part of the contract or referred to in these conditions or not, and which
may be necessary for the purpose of satisfying or complying with the requirements of the
Executive Engineer or other competent authority as to any matter as to which under these
conditions he is entitled to be satisfied, or which he is entitled to require together with
carriage therefor, to and from the work. The contractor shall also supply without charge
the requisite number of persons with the means and materials necessary for the purpose of
setting out works, and counting, weighing and assisting in the measurement or
examination at any time and from time to time of the work or the materials. Failing this,
the same may be provided by the Executive Engineer or other competent authority at the
expense of the contractor and the expense may be deducted from any money due to the
contractor under the contract or from his Security Deposit or the proceeds of sale thereof,
or a sufficient portion thereof. The contractor shall provide all necessary fencing and lights
required to protect the public from accident, and shall also be bound to bear the expense
of defence of every suit, action or other legal proceedings, that may be brought by any
person for injury sustained owing to neglect of the above precautions, and to pay any
damages and costs which may be awarded in any suit, action or proceedings to any
person, or which may with the consent of the contractor be paid for compromising any
claim by any such person.
ISSUE OF PLANT AND MACHINERY ON HIRE
Clause 21: (a) Wherever plant and machinery required for the work is available
with the department, the plant and machinery so available may be issued to contractor on
hire subject to the conditions prescribed in Schedule 'C' of the Agreement Form. Hire

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38
charges payable shall be recovered from the running account bills of the contractor. The
issue of machinery, etc., will, however, be purely within the discretion of the KNNL.

Contractor's responsibilities regarding working condition, damages, loss of

parts, etc.

(b) Not withstanding the fact that the machinery is operated by the department
crew, the Contractor shall be responsible to return the plant and machinery in such working
condition in which it was issued to him subject to reasonable wear and tear. He shall also
be responsible for all damages caused to the said plant and machinery at site of work or
elsewhere when in operation or otherwise or during transit, including damage to or loss of
part/parts, as also for losses due to failure to return them soon after completion of the
work for which they were issued. The Executive Engineer shall determine the liability of the
Contractor on account of damage and/or losses, if any, and shall be entitled to assess such
damage and/or loss and recover the same from the bills of the contractor or from any other
sums due to him. In the event of any dispute as to the nature and extent of damage/loss,
the decision of the Executive Engineer shall be final and binding on the Contractor.

KNNL to bear repair charges for normal wear and tear as decided by
Superintending Engineer
(c) During the period of hire, KNNL shall bear the charges for repairs
necessitated by normal wear and tear of tools, plant and machinery hired. The cost of the
repairs necessitated by negligent use of tools, plant and machinery shall be borne by the
Contractor. As to what repairs shall under the category of repairs due to normal wear and
tear, the decision of the Superintending Engineer shall be final.

Contractor to pay compensation to KNNL crew as per Workmen's Compensation

Act
(d) The contractor shall be liable to pay all compensation to the departmental crew as
per Workmen's Compensation Act. 1923 (VIII of 1923 hereinafter called the said Act) for
injuries caused to the departmental crew on the job with the machine at site of work or
elsewhere when in operation or otherwise during transit, as though the crew was employed
by the contractor himself. If such compensation is paid by KNNL as principal under sub-
section (1) of the Section 12 of the said Act on behalf of the contractor, it should be
recoverable by KNNL from contractor under sub-section (2) of the said Section. Such
compensation shall be recovered from the contractor in the manner laid down for the
purpose in the contract.
MEASURES FOR PREVENTION OF FIRE

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 Clause 22:The contractor shall not set fire to any standing jungle, trees, brushwood
or grass without a written permit from the Executive Engineer.
When such permit is given, and also in all cases when destroying cut or dug up
trees, brushwood, grass, etc., by fire, the contractor shall take necessary measures to
prevent such fire spreading to or otherwise damaging surrounding property.

LIABILITY OF CONTRACTOR FOR ANY DAMAGES DONE IN OR OUTSIDE WORK

AREA

Clause 23: Compensation for all damages done by contractor or his men whether in
or beyond the limits of KNNL property including any damage caused by spreading of fire
mentioned in Clause 22 shall be estimated by the Executive Engineer, and the estimate of
the Executive Engineer, subject to the decision of the Superintending Engineer on appeal,
shall be final and the contractor shall be bound to pay the amount of the assessed
compensation on demand failing which the same will be recovered from the contractor as
damages in the manner prescribed in Clause 1 or deducted by the Executive Engineer or
other competent authority from any sums that may be due or become due from KNNL to
the contractor under this contract or otherwise.
The contractor shall bear the expenses of defending and action or other legal
proceedings that may be brought by any person for injury sustained by him owing to
neglect of precautions to prevent the spread of fire and shall pay any damages and cost
that may be awarded by the court in consequence.
EMPLOYMENT OF FEMALE LABOUR
Clause 24: The employment of female labourers on works in the neighbourhood of
soldier's barracks should be avoided as far as possible.
WORK ON NOTIFIED HOLIDAY
Clause 25: No work shall be done on any notified holiday without the sanction in
writing of the Executive Engineer or other competent authority.
CONSEQUENCES OF SUBLETTING WORK WITHOUT APPROVAL, THE
CONTRACTOR BECOMING INSOLVENT, BRIBING ETC, BY CONTRACTOR
AND ACTION AGAINST THE CONTRACTOR
Work not to be sublet
Clause 26: (a) The contract shall not be assigned or sublet by the Contractor.
However, any specific portion of the work which is of a specialised nature and normally not
executable by a general Contractor could be got done by the specialised agencies which are
executing such works, after obtaining the specific approval of the Executive Engineer in

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40
writing in each case. Such consent to sublet the work, if given, shall not relieve the
Contractor from any liability or obligation under the contract and he shall be responsible for
the acts, defaults and neglects of any sub-contractor or his agents, servants or workmen as
fully as if they were the acts, defaults or neglects of the contractor, his agents, servants or
workmen.

If the contractor shall assign or sublet his contract or any portion thereof
without the specific approval of the Executive Engineer or attempts to do so or become
insolvent or commence any proceedings to get himself adjudicated as insolvent or make
any composition with his creditors or attempts so to do or if any bribe, gratuity, gift, loan,
perquisite reward or advantage, pecuniary or otherwise, shall either directly or indirectly be
given, promised or offered by the Contractor or any of his servants or agents to any officer
or person in the employ of KNNL in any way relating to his office or employment or if any
such officer or person shall become in any way directly or indirectly interested in the
contract, the Executive Engineer or other competent authority may thereupon by notice in
writing rescind the contract and the security deposit of the contractor shall thereupon stand
forfeited and be absolutely at the disposal of KNNL, and the same consequences shall
ensure as if the contract had been rescinded under Clause 3 hereof and in addition, the
contractor shall not be entitled to recover or be paid for any work actually performed under
contract.

Recovery of excess payments based on excess measurements and action

against contractor
(b) Whenever it is noticed that excess payments have been made to the
contractor based on excess measurements recorded by the subordinate in the
measurement book and countersigned by the contractor or his duly authorised agent,
action shall be taken to recover the excess payments together with interest immediately.
Action may also be taken to remove the name of the contractor from the approved list of
contractors and also to black-list him.
Change in classification of excavations accepted not permitted
Once the measurements mentioning the classification of the excavations are
recorded in the measurement book and the same is signed by the contractor or his
authorised agent in token of acceptance, no request for reclassification by the contractor
shall be entertained.

Criminal proceeding against Departmental Officers and contractor for the

lapses

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41
 (c)KNNL also reserves the right to initiate criminal proceedings against the concerned
Departmental Officers who are directly responsible for the lapse and the contractors who
have colluded with the departmental officers in the lapse and fraudulently received
amounts not due to them legitimately.

SUM PAYABLE BY WAY OF COMPENSATION TO BE CONSIDERED AS

REASONABLE COMPENSATION WITHOUT REFERENCE TO ACTUAL LOSS

Clause 27: All sums payable by contractor by way of compensation under any of
these conditions shall be considered as reasonable compensation to be applied for the use
of KNNL without reference to the actual loss or damage sustained and whether any
damage has or has not been sustained.

APPROVAL OF EXECUTIVE ENGINEER NECESSARY FOR CHANGING THE

CONSTITUTION OF A FIRM OR BEFORE ENTERING INTO PARTNERSHIP
AGREEMENT-CONSEQUENCES OF NOT OBTAINING PRIOR APPROVAL

Clause 28:Where the contractor is a partnership firm, the previous approval in

writing of the Executive Engineer shall be obtained before any change is made in the
Constitution of the Firm. Where the Contractor is an individual or a Hindu undivided family
business/concern, such approval as aforesaid, shall likewise be obtained before the
contractor enters into any partnership agreement where under the partnership firm would
have the right to carry out the work hereby undertaken by the contractor. If previous
approval as aforesaid is not obtained, the contract shall be deemed to have been assigned
in contravention of Clause 26 hereof and the same action may be taken and the same
consequences shall ensure as provided in the said Clause 26.
SETTLEMENT OF DISPUTES- TIME LIMIT FOR DECISION
Clause 29: (a) If any dispute or difference of any kind whatsoever were to arise
between the Executive Engineer/Superintending Engineer and the contractor regarding the
following matters namely,
(i) The meaning of the specifications, designs, drawings and instructions herein
before 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, designs, 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 sixty days

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42
from the date of being requested by the Contractor to do so, give written notice of his
decision to the Contractor. If the Contractor is aggrieved by the decision of the Chief
Engineer, or if the Chief Engineer fails to give written notice of his decision within the
above said period of sixty days, the contractor may appeal to the Managing Director, KNNL,
within 60 days from the receipt of written notice of Chief Engineer's decision or from the
expiry of first named period of 60 days.
(b) Subject to the Managing Director's decision on appeal and 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.

Remedy when Managing Director's decision on appeal is not acceptable to

contractor
(c) In case the decision of the Managing Director is not acceptable to the contractor,
he may approach the Law Courts at Shimoga(*) for settlement of dispute after giving due
written notice in this regard to the Managing Director within a period of ninety days from
the date of receipt of the written notice of the decision of the Managing Director.

Time limit for notice to approach law court by contractor

(d) If the Managing Director has given written notice to the contractor of his
decision on his appeal and no written notice to approach the law court has been
communicated to him by the contractor within a period of ninety days from receipt of such
notice, the said decision shall be final and binding upon the contractor.
Time limit for notice to approach law court by contractor when decision is not
given by Managing Director.
(e) If the Managing Director fails to give notice of his decision within a period of
ninety days from the receipt of the contractor's appeal, the Contractor may within ninety
days after the expiry of the above named period of ninety days approach the Law Courts at
Shimoga (*) giving due notice to the Managing Director.
Note: (*) In sub clauses (c) and (e) specify the place where the Court under whose
jurisdiction the work is situated/is located.
(f) Whether the claim is referred to the Chief Engineer or Managing Director or to
the Law Courts, as the case may be, the contractor shall proceed to execute and complete
the works with all due diligence pending settlement of the said dispute of differences.

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Obligations of the Executive Engineer and contractor shall remain unaltered
during considerations of dispute
(g) The reference of any dispute or difference to the Chief Engineer or Managing
Director or the Law Court may proceed not withstanding that the works shall then be or be
alleged to be complete, provided always that the obligations of the Executive Engineer and
the contractor shall not be altered by reason of the said dispute or difference being
referred to the Chief Engineer or Managing Director or the Law Court during the progress
of the works.
Aggrevated Contractor to Approach Civil Court
(h) It is clearly understood and agreed upon by both the parties that no part of the
above clause shall be construed to be an arbitration clause. In the event of any dispute or
difference arising between the parties to this contract, upon exhausting the remedies
under clauses 29(a) to (g). The only remedy available shall be to approach the
jurisdictional Civil court by filing a suit in accordance with law.
CONTRACTOR TO PAY COMPENSATION UNDER WORKMEN'S COMPENSATION
ACT
Clause 30: (a) The contractor shall be responsible for and shall pay any
compensation to his own workmen payable under the Workmen's Compensation Act. 1923
(VIII of 1923) (hereinafter called the said Act) for injuries caused to the workmen. If such
compensation is paid by KNNL as principal under sub-section (1) of Section 12 of the said
Act on behalf of the contractor, it shall be recoverable by KNNL from the contractor under
sub-Section (2) of the said Section. Such compensation shall be recovered in the manner
laid down in Clause 1 above.
Contractor to pay expenses of providing medical aid to workmen
(b) The contractor shall be responsible for and shall pay the expenses of providing
medical aid to any workmen who may suffer a bodily injury as a result of an accident. If
such expenses are incurred by KNNL, the same shall be recoverable from the contractor
forthwith and be deducted without prejudice to any other remedy of KNNL from any
amount due or that may become due to the contractor.
CONTRACTOR TO PROVIDE PERSONAL SAFETY EQUIPMENT, FIRST AID
APPARATUS, TREATMENT ETC.
Clause 31: The contractor shall provide all necessary personal safety equipment
and first aid apparatus for the use of the persons employed on the site, and shall maintain
the same in good condition suitable for immediate use, at any time and shall comply with
the following regulations in connection therewith—
i) The workers shall be required to use the equipment so provided by the contractor
and the
contractor shall take adequate steps to ensure proper use of the equipment by those
concerned.
ii) When work is carried on in proximity to any place where there is a risk of drowning, all

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 necessary steps shall be taken for the prompt rescue of any person in danger.
iii) Adequate provision shall be made for prompt first-aid treatment of all injuries likely to
be sustained during the course of the work.

MINIMUM AGE OF PERSONS EMPLOYED BY CONTRACTOR

Clause 32- (a) No contractor shall employ
(i) any person who is under age of 15 years.or as prescribed in the prevailing
“Prevention of child labour act”
(ii) who does not produce a valid certificate of vaccination against small-pox in
respect of himself/herself as well as the members of his/her family.

Employment of donkeys and other animals

(b) No contractor shall employ donkeys or other animals with breaching of string or
thin rope. The breaching must be at least three inches wide and should be of tape.
(c) No animals suffering from sores, lameness or emaciation or which is immature
shall be employed on the work.
(d) The contractor shall provide pure potable drinking water facilities to the workers.
similar amenities shall be provided to the workers engaged on large works in urban area

Removal of person or animal not satisfying conditions (a) to (c)

(e) The Executive Engineer or other authority is authorised to direct the removal or to
remove through his own agency, from the work any person or animal referred to in sub-
clauses (a) to (c) above not satisfying these conditions and no responsibility shall be
accepted by the KNNL for any delay caused in the completion of the work by such
directions for removal.

Payment of fair and reasonable wages by contractor

(f) The contractor shall pay fair and reasonable wages which shall not be less than
the minimum wages fixed by Government from time to time to the workmen employed by
him in the contract undertaken by him. In the event of any dispute arising between the
contractor and his workmen on the ground that the wages paid are not fair and reasonable
the dispute shall be referred without delay to the Executive Engineer or other competent
authority, who shall decide the same. The decision shall not in any way affect the
conditions in the contract regarding the payment to be made by KNNL at the agreed tender
rates.

(g) The Contractor should keep his employees covered under the provision of the EPF
Act and the employers state insurance Act. The contractor shall keep the KNNL its
Employees/ Officers indemnified from any loss or damages suffered by KNNL/staff. Officers
for any violation of the provision of the said Act by the contractor Notwithstanding the
above the KNNL shall have the right/remedy available to it under section 8(a) of the
Employees PF and Miscellaneous Act and the relevant provisions of the Employees State
Insurance Act.

EMPLOYMENT OF SCARCITY LABOUR ETC.,

Clause 33: (a) If Government declares a state of scarcity or famine to exist in any
village situated within 15 kilometers (10 miles) of the work, the contractor shall employ
upon such parts of the work as are suitable for unskilled labour, any person certified to him

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45
by the Executive Engineer, or by any person to whom the Executive Engineer may have
delegated this duty in writing to be in need of relief and shall be bound to pay to such
persons wages not below the minimum which Government may have fixed in this behalf.
Any dispute which may arise in connection with the implementation of this clause shall be
decided by the Executive Engineer or other competent authority whose decision shall be
final and binding on the contractor.
(b) The contractor shall employ any famine, convict or other labour of a
particular kind or class, if ordered in writing to do so by the Executive Engineer or other
competent authority.
CONTRACTOR NOT ENTITLED TO ANY CLAIM OR COMPENSATION FOR DELAY IN
EXECUTION OF WORK DUE TO WATER IN BORROW PITS
Clause 34: The contractor shall not be entitled to claim compensation if there is
any delay in the execution of the work on account of water standing in borrow pits and
compartments. The rates of borrowing earth and of excavation hold good for all situations
such as hard or cracked soils, excavation in mud, subsoil water or water standing in
borrow pits and no claim for extra rate shall be entertained, unless otherwise expressly
specified.

METHOD OF PAYMENT OF BILLS

Clause 35: Payment to contractors shall be made by cheques.
SET OFF AGAINST ANY CLAIM OF KNNL/UNDER OTHER CONTRACTS.
Clause 36: Any sum of money due and payable to the contractor (including the
security deposit returnable to him) under this contract may be appropriated by the KNNL
and set off against any claim of KNNL/Government in respect of a payment of a sum of
money arising out of or under any other contract made by the contractor with the
KNNL/Government.
RATES INCLUSIVE OF SALES TAX, ETC.
Clause 37: (a) The rates to be quoted by the contractor must be inclusive of sales
tax, all other levies and taxes whatsoever in nature. No extra payment on this account will
be made to the contractor.
Contractor to pay quarry fees, royalty, etc.,
(b) All quarry fees, royalties, octroi dues levied by the State Government or
any local body or authority and ground rent, if any, charged by the Executive Engineer for
stacking materials, should be paid by the contractor.
CONTRACTOR TO OBTAIN LABOUR ETC., FROM NEAREST EMPLOYMENT
EXCHANGE

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46
 Clause 38: The contractor should as far as possible obtain his requirement of
labour, skilled and unskilled from the nearest Employment Exchange. The contractor
should give preference to the employment of released bonded labour on the work
entrusted to him.
DUES TO BE RECOVERED AS IF THEY WERE ARREARS OF LAND REVENUE

Clause 39: All money due from the contractor under this contract may be
recovered by Government without prejudice to the other remedies, as if they were arrears
of Land Revenue.
CONTRACTOR TO COMPLY WITH THE PROVISIONS OF APPRENTICE
ACT
Clause 40: The contractor shall comply with the provisions of the Apprentice Act
1961 and Rules and Orders issued there under from time to time. If he fails to do so, his
failure will be a breach of contract and the Superintending Engineer may at his discretion
cancel the contract. The contractor shall also be liable for any pecuniary liability arising on
account of any violation by him of the provisions of the Act.
CONTRACTOR TO SUBSCRIBE TO WORKER’S AND CONTRACTORS'
BENEVOLENT FUND
Clause 41: The contractor shall subscribe to the Workers' and Contractor's
Benevolent fund at the rate of 0.10% of the gross amount of each bill payable to him in
respect of the contract. The amount of subscription should be recovered out of the amount
payable to him in each bill.
LUMPSUMS IN ESTIMATE – PAYMENT TO CONTRACTOR
Clause 42: Deleted.
CONTRACTOR NOT TO QUOTE PRICE EXCEEDING CONTROLLED PRICE
FIXED BY GOVERNMENT
Clause 43: The price quoted by the contractors shall not in any case exceed the
controlled price if any, fixed by KNNL or reasonable price which it is permissible for him to
charge a private purchaser for the same class and description of goods under the
provisions of Hoarding or Profiteering Prevention Act 1943 as amended from time to time.
Compliance with the provision of Hoarding and Profiteering Prevention Act
If the price quoted exceeds controlled price or price permissible under
Hoarding and Profiteering Prevention Act, the contractor will specifically mention this fact in

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47
his tender along with the reasons for quoting such higher price. The purchaser at his
discretion will in such case exercise the right of revising the price at any stage so as to
conform to the controlled price or the price permissible under the Hoarding and Profiteering
Prevention Act. This discretion will be exercised without prejudice to any other action that
may be taken against the contractor.
CHANGE IN COSTS – PIRCE ADJUSTMENT
Clause 44 :- This clause is applicable only to contracts where :

(i) The stipulated period of completion of the work is more than two years
AND
(ii) The tendered cost of the work exceeds :

(a) Rs. 50 Lakhs (Rupees fifty lakhs) in case of a Communication and Buildings
works AND

(b) Rs. 100 Lakhs (Rupees 0ne hundred lakhs) in the case of an irrigation work.

(a)The amount payable to the contractor and valued at the rates specified in
Schedule “B” attached to the contract shall be increased or decreased in accordance with
the rise or fall in the indexed costs of labor; materials, fuel, lubricants, electricity and other
inputs to the works by an amount as determined by the formula as prescribed in this
clause. The price adjustment is, however, subject to the following conditions; -

(i) Price adjustment shall not be applicable on the value of work carried out during the
initial 12 months of the contract period.

ii) Price adjustment shall not be applicable to additional / altered or substituted items
of work/or extra quantities executed by the contractor in respect of which rates computed
on the basis of the schedule of rates or market rates etc. prevailing at the time of execution
of such items/quantities are payable in terms of clause-13 of conditions of contract.

iii) Price adjustment shall apply only for work carried out within the stipulated time
including time extension granted by the Executive Engineer and shall not apply to the work
carried out beyond the stipulated time for reasons attributable to the contractor.

iv) Price adjustment shall be applicable on the value of work done during each quarter
period of the year.

v) Cost of materials supplied by the KNNL at fixed rates as specified in schedule ‘A’ to
the contract shall be excluded from the scope of the price adjustment.

vi) To the extent that full compensation for any rise or fall in costs of the contractor is
not covered by the provisions of this or other clauses in the contract the unit rates and
prices included in the contract shall be deemed to include amounts to cover the
contingency of such other rise or fall in costs.

b) (i) in the formula prescribed in (ii) and (iv) below the letter ‘R’ represents the
following .

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48
Price adjustment formula:-

R = Total value of work done during the quarter MINUR value of items indicated in
sub-clause (a)(ii) of this clause MINUR cost of materials supplied by Karnataka Neeravari
KNNL Limited under Schedule-‘A” to the contract and consumed during the quarter.

Note :- In the case of materials brought to site for which any secured advance is
included in the bill the full value of such materials as assessed by the Executive Engineer
(and not the reduced amount for which secured advance has been paid) shall be included
in the cost of work done for operation of this Clause. Similarly when such materials are
incorporated in the work and the secured advance is deducted from the bill, the full
assessed value of the materials originally considered for operation of this clause should be
deducted from the cost of the work shown in the bill, running or final.

Local labor costs :-

(ii) Price adjustment for increase or decrease in local labour costs shall be
paid in accordance with the following formula.
VL = 0.75 X PL-100 X R (Li-Lo)/Lo
VL = Variation in Labor cost i.e…Increase ir decrease
PL = Labour component as specified in Sub-clause (c) of this clause.
Lo = Average consumer price index number for industrial workers applicable for
the nearest City to the work or project in the state of Karnataka specified in the
contract i.e……………City(*) in the twelfth month reckoned from the
commencement of contract period.
Li = The corresponding index number for the quarter under consideration.

Cost of Marterials :-

(iii) Price adjustment for increase or decrease in cost of material shall be paid
in accordance with the following formula :-
VM = 0.75 x PM / 100 x R(Mi-Mo)/Mo
VM = Variation in materials cost i.e. increase or decrease.
PM = Material component as specified in Sub-clause (c) of this clause.
Mo = Average wholesale price index number for all commodities in the twelfth
month reckoned from the commencement of contract period.
Mi = The corresponding index number for the quarter under consideration.
(‘) = The city nearest to the site of work to be specified here.

Cost of Fuel, 0il, Lubricants and Electricity :-

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 vi)Price adjustment for increase or decrease in the cost of fuel, 0il, lubricants
and electricity. Shall be paid in accordance woith the following formula.
VF = 0.75 x PF/100 x R (Fi-Fo)/Fo
VF = Variation in fuel, oil, lubricants and electricity cost i.e. Increase or decrease.
PF = Fuel,0il,lubricants and electricity component as specified in sub-clause in (c)
of this clause.
Fo = Retail price of diesel at the existing POL consumer’s retail outlets
at……………towns in the Twelfth month reckoned from the commencement of
contract period.
Fi = Corresponding retail price for the quarter under consideration.
(*) = The city nearest to the site of work to be specified here.

Contractor to indicate appropriate index / publication.

Note :- The tenderer shall, in his tender, indicate the appropriate index, the periodical
in which it is published and furnish copies of extracts from the preceding twelve months
publications. The source of this index shall be the publication by Reserve Bank of India.

(a) Price adjustment components expressed as percentages of total value of work

done for the purpose of Sub-clause (b) hereof are as under :

Group of Items. Labour Material Fuel etc……& Electricity.

(PL) (PM) (PF)

1 2 3 4

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 Note :- Price adjustment is permissible for items of works grouped as above only.

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51
 SCHEDULE – ‘A”

Schedule showing (Approximately) the materials to be supplied from the KNNL Stores for
work contracted to be executed and the rates at which they are to be charged for.
Rate at which the
Sl. Place of
Particulars Quantity Unit materials will be charged
No delivery
to the contractor
1 Materials including cement, steel for reinforcement, blasting materials will not
supplied by the Nigam contractor has to procure at his own cost.
2 Useful rubble from excavation as per the rate entered in the SR prevailing at the
time of accepting the tender. This contractor has to make his own arrangement
for procuring the rubble from the excavated spoil at his own cot including sorting.

RULES UNDER SCHEDULE – ‘A’

1 The person or firms submitting the tender should see that the rates in the above
Schedule are filled up by the Executive Engineer-in-charge on the issue of the
form prior to the submission of the tender.
2 (i) “The rates shown above will not be applicable for additional altered items of
works for which payment at rates other than tendered rates is to be made
according to clause-13 of the conditions of contract if the materials indicated
above are supplied by the KNNL for such additional substituted or altered items
of work the rates to be charges for the materials supplied by the KNNL shall be
reckoned for arriving at the rates payable for such items of work.
(ii) Stores to be supplied to contractor for a work free of cost should be
mentioned in Schedule – A in addition to Schedule – B and specifications
attached to the contract agreement form.
3 The apparent increase or decrease of weight of steel as issued on weight basis
and as billed for based on liner measurements, as per the standard method in
vogue shall be deemed to have taken into consideration by the contractor at the
time of quoting rates for such of the items as are involving use of steel and as
such, no claims whatsoever shall be entertained in this respect.
4 Certificate of quality as per relevant code of Bureau of Indian Standard (ISI) for
the materials viz. cement, steel etc. brought should be produced by the
contractor before such materials re-permitted for use.

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52
 5 If excess cement and steel is found issued over the actual requirements at the
time of final bill the same shall be returned to the Divisional stores in good
condition otherwise the excess quantity of cement and steel so issued shall be
recovered as mentioned in clause 10(a) of schedule of contract form PWG 65.
6 The contractor shall maintain an account of receipt and use of cement, steel and
other materials each day and submit the same weekly to the KNNL in the
prescribed form.
7 All transport charges from the division stores to work site shall be borne by the
contractor.
8 The materials mentioned in schedule – A will be supplied by the KNNL if for any
reasons the department is unable to supply or it there is any delay in supply, it is
open to the contractor to make his own arrangements and the contractor will not
be allowed any extra payments. In such an event the contractor should take the
specific approval in writing by the Executive Engineer in the taken case certificate
of quality for the materials brought would be produced by the contractor before
such materials are permitted for use.
9 The Contractor shall provide at site of work satisfactory storage for not less than
15 days requirements; the cement should be stored in good conditions, as
directed by the Engineer-in-charge.
10 The recovery rate of cement is inclusive of cost of jute or paper bags. The
contractor shall give preference to the empty bags collecting agents while
disposing of the empty bags. If no agents come forward with requisition, the
contractor may dispose off the bags in any manner he likes.
11 The rates mentioned above against cement shall be considered as the rate for
one metric tonne nominal weight in bags as received from the factories and
should not be interpreted as the net weight of cement allowing for any possible
looses/wastage in transit.
12 Materials issued whichever become surplus after completion of work shall be
returned to department in good conditions at the place of supply. Materials not
returned and malafied use of materials cost will be recovered from the contractor
at twice the issue rate, department reserves the right to accept or reject the
materials so returned.
13 The price of each materials shall remain as entered in Schedule “A” till completion

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 of works not withstanding any subsequent changes in market value of these
materials.
14 The contractor shall not be paid any thing extra for any operations or loss
involved while emptying the bags in the mixers.
15 No claims whatsoever shall be entertained for any loss or cement when once the
bag is weighed over to the contractor.
16 If any materials other than mentioned in schedule – A required for the work is
supplied by the department, the actual issue rates/market rate whichever is
higher prevailing at the time of issue of materials would be charged plus 10%
supervision charges and sales tax (extra).
17 Steel required for the work shall be issued by weight at the divisional stores
18 In case blasting materials included in schedule – A above, are not available with
the department materials of any other brand if supplied by the KNNL in the lieu of
the same will be charged at the rates shown in schedule – A.
19 The materials will be issued at the specified place of delivery noted in schedule –
A on all working days during working hours.
20 The contractor shall make their own arrangement for explosives; the KNNL may
however at its discretion may supply the explosive at the rates to be fixed as per
rule 16 above.
21 The contractor finished rates shall be based on the basic rates of supply of
materials by the department labor for cutting steel rods and bending to the
required shape including wire (wastage in cutting will have to be borne by the
contractor) overlapping, welding, fabrication etc., complete.
22 The actual cost of gross quantity of the above materials supplied by KNNL on
unstamped receipt will be recovered at rates specified above against each item
from contractor’s bill.
23 Steel will be supplied in length size and shape as received from the supplier, no
claims will be entertained in this regard.
24 After completion of work the unused steel in good condition measuring 2.50 M in
length and above as rule – 5 be returned to the division stores by the contractor
in case the contractor wishes to do so.

E-tendering.
SCHEDULE-B

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 (MEMORANDUM SHOWING THE ITEMS OF WORKS TO BE CARRIED OUT)

Name of work: Supply of Vehicle on Hire basis to No.3 Q.C Sub-Division, Gajanur for the year
2021-22

Item rate as Reference to

Quantities Description per detailed Total
Item Unit
estimated. of item sanctioned specification amount
estimate of the tender
Enclosed separately.

1. The percentage shall be entered in figures and words clearly and visibly. Any correction shall
be attested by the contractor.

2. The offer shall be for finished items of work, complete in all respects, inclusive of all
materials all tools and plants, all labour required for the work, all leads and lifts, all incidental
charges, dewatering and desilting if any, diversion of water, diversion of road for traffic, initial
and final clearance of site, providing labour amenities, all taxes and levies such as sales tax,
income tax royalty charges etc.,

3. For items of cement concrete and reinforced cement concrete of controlled grades, the
cement content mentioned in the detailed technical specification is for guidance only. The
unit rate quoted should take care of the variation of cement content if any during execution
to achieve the required specification and no extra payment will be made towards any
variation in cement content.

4. If any lands required for the work and for quarries and borrow areas are not acquired by the
KNNL, the contractor should get the lands by negotiations with the land owners without
causing any extra cost to the KNNL on that account.

5. The submission of the tender by a contractor implies that he had read the contents of the
tender notice and contract form, the contents of the conditions of the contract, additional
conditions of the contract, detailed technical specifications and all other contents of the
tender document and made himself thoroughly aware of the scope and specification of the
work to be done and the availability of the quantity of the materials required.

6. Incomplete tenders are liable for rejection.

7. The completed tender document should be submitted in to electronic tender box on the
Website itself.

RULES UNDER SCHEDULE-B

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55
 1. The percentage quoted by the contractor in this schedule shall hold good till the fulfillment of
the contract without reference to the fluctuation in the market rate or variation in labour
percentage or any other cause except as provided in clause 13 of agreement for such of the
items not covered in the schedule-B

2. The percentage quoted in the Schedule-B should be through rates for the finished items
inclusive of all royalties, sales tax, quarry fees wherever applicable and appropriate (as per the
statement of royalties enclosed)
3. There is no separate item as dewatering or desilting or river diversion work. All items are
inclusive of dewatering or desilting or pumping out water at all stages of work. The percentage
quoted should inclusive of dewatering and desilting charges. No extra payment on any account
shall be made for dewatering or desilting charges.

4. Water for construction shall be arranged by the contractor at his expenses.

5. It is the incumbent on the part of the contractor to make the full use of the useful

materials obtained from excavation as per directions of the KNNL

6. The levels and dimensions shown in the drawings are approximate and may vary during the
course of execution of the above items of work and the contractor will not be entitled for any
extra rate or compensation due to such variation including time extension.

7. Any damage caused during construction to any part of the work due to any reasons including
calamities and flood damages whatsoever shall be made good at the contractor’s expenses until
the work is handed over in the complete manner as per agreement. No claims will be entitled in
this regard including extension of time.
7. a) Percentage quoted include clearance of site prior to commencement of work and at its
completion in all respects and hold good for work under all weather conditions.
b) It shall be the responsibility of the contractor to establish their own quarries for the
materials required for the construction purpose.

9. All items shall be executed as per the approved design, drawing and pattern and shall comply
with the specifications and general conditions relating to the work enclosed with the tender
and orders conveyed by the competent authority in writing from time to time during the
course of execution.

10. Contractors will have to make their own arrangements to obtain electric power at their own cost
from Karnataka Power Transmission Corporation Limited or by their own power generator. In
case of failure of power supply the contractor will not entitled to any compensation or
extension of time.

11. All works shall be carried out as per the detailed specifications and for the items not covered in
the Schedule-B shall be carried out as directed by the Engineer in charge.
12. The offer shall include lighting wherever necessary and provided and maintaining
communication facilities. No extra payments for these will be made on any account.
13. Description of items given below shall be read along with the general conditions of the contract
tender,notifications,general specifications, test and acceptance criteria relating to the works
scheduled specifications and all other component parts of the tender document.
14. It is incumbent on the part of the contractor to use all the useful rubble available from canal
excavated spoil for breaking metal rubble required for UCR masonry rocktoe, pitching and
concrete items after sorting out the same from the stacks. The available rubble will be issued to
the contractor at the issue rates mentioned in the Schedule-A. The contractor shall bring rubble

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 from quarry only after the rubble available from the canal excavation is exhausted and after
obtaining written instructions from the Executive Engineer.

15. During execution of work the diversion work if any necessary for diverting and rediverting the
natural stream or drainage channels encountered on the alignment shall be done by the
contractor at his own cost till final completion of the work and the rates quoted shall be deemed
to include costs of all such diversion work. The contractor shall be held responsible for any
accidents occurring during execution.

16. The tenderer shall remove the silt wherever it is accumulated at his own cost.
17. The contractor will have to co-operate with the other agency working in the same or adjoining
area and shall not be entitled to any claims due to any inconvenience or delay handing over
any portion of working area. In case of any dispute with the adjacent contractor decision of the
Engineer in charge will be final.
18. Quantities indicated are approximate and may vary during execution due to alterations or
modifications in design. For any increase or reduction in quantities contractor shall are
governed by the provisions of clause 13 of general conditions of contract.
19. The rates for embankment with materials obtained from available spoil bank should not be
more than the rates for the embankment with materials obtained from borrow pits.
20. The useful dumped materials like rubble and soil coming within the toe line of the bank work
should be used for the embankment works after getting necessary quality control test, the
balance and the dumped materials should be disposed off from the site as per the instructions
of the Engineer in charge for which no extra payment will be made.
21. The contractor shall inspect the site and various quarries materials and ascertain the leads
involved in procuring the materials for the various items. The offer shall be inclusive of all leads
and lifts irrespective of what has been considered in the estimate. No extra claims over the
quoted rates on the aspect of lead and lift will be entertained.
The quality of materials used on the work should be got approved from the Engineer in charge
before it is used on the work. All quarry fees royalties octroi dues levied by the Government or
local body or authorities or private body and ground rent if any for stacking materials charged
by the concerned department or bodies shall be paid to the concerned department or bodies by
the contractor.
22. Quoted rates include all leads and lifts for completion of items in all respects and the cost of
removing the overburden in all quarries and no claims for compensation therefor be
entertained.
23. The Karnataka Neeravri Nigam Limited is not responsible for the source of materials.
24. The delay in payment of bills by the Karnataka Neeravri Nigam Limited due to shortage of
funds or any other reasons beyond the control of the Karnataka Neeravri Nigam Limited the
extension of time may be considered depending upon the merit of the case and no revised
rates will be admitted and entertained on any grounds.

25. The tenderer shall make the payment of royalty charges as per Government notification
No.CL-302 MRC 91 Dated 16.8.1995 Govt. order circular (copy under Annexure-C) with a
subsequent modifications / revisions if any as issued by the Government from time to time to
the concerned KNNL at his own cost. The tenderer should produce the necessary certificate to
the Engineer in charge of work for having paid the royalty charges to the concerned authorities
in respect of materials so quarried for the said work failing which no payment will be made to
the tenderer for the measured quantity executed by him through R.A. bills or any other bills.

If the tenderer fails to comply the requirements as stated above then the Engineer in charge of
the work is free to recover the royalty charges as per the Government notification in circulation
with its subsequent modifications/ revisions, if any, as issued by the Government from time to
time from the tenderer’s work bills and thereafter if the tenderer suffers any loss or damages on

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 account of this then the KNNL will not be responsible for any reasons whatsoever. The tenderer
himself will be responsible for all the losses and consequences.

26. If the contractor expires during the course of execution of work the decision of the KNNL for
closing / continuing the work shall be final.

27. The contractor is eligible to payment of excavation embankment masonry concrete items etc.,
as per drawings enclosed in the tender. If any extra work is done by him for his convenience no
separate payment will be paid and no claims will be entertained including extension of time.

28. Typing and printing of numerical mistakes and interpretation of rates will not be considered for
any claims of contractor. The decision of the competent authority is final.

29. In case of any obstructions from the land owners during the construction period of the work the
Nigam will not take any responsibility and the contractor has to make his own arrangements to
get the land disputes settled and bear extra cost if any.

30. In case there is any part or whole of land required for work is not yet acquired by the KNNL it
shall be responsibility of the contractor to procure possession of such land by consent of the
land owners before commencement of work at no extra cost to KNNL and no claim whatsoever
relating to non availability of lands would be entertained.

31. The contractor shall furnish a programme of work along with the bar chart to complete the
works within the time stipulated in tender soon after entering in to agreement.

32. The contractor’s attention is specially drawn to Sl.No.3 and 23 of rules under Schedule-B
regarding claims of dewatering etc., and claims for extra lead etc., No claims whatsoever in this
regard are entertained.

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 SCHEDULE - C

The following plant and machinery will be issued to contractor subject to the conditions,
mentioned in clause 21 and also fulfilment of the following rules :-

Particulars of plant and machinery to Rate of Hire charges Remarks if

Sl.No.
be issued to the contractor per day or hour. any.

Contractor should make his own arrangements for construction machineries, vehicles
or tools and plants. No machineries or vehicles of the KNNL will be hired to contractor.

However the KNNL may let out the machineries , vehicles or tools and plants of the
KNNL, if the same are available and idle, on hire charge basis, at charges prescribed by the
KNNL.

Note :- The rates will be calculated and inserted here with respect to the rules framed by
the KNNL from time to time as applicable on the date of finalisation of the tender.

RULES UNDER SCHEDULE – ‘C’

1. Plant and machinery will be issued to the contractor for a period not exceeding 2 years
at a time. They will not however be sold to the contractor even if they are required by
him for use on KNNL works.
2. In addition to the hire charges payable, the contractor should pay to KNNL (i) all
charges incidental to the delivery of the tools, plant and machineries at the stores , such
as handling and checking at the stores, (ii) charges if any , for re-erecting the plant and
machinery at the stores on return and (iii) the cost of replacing the missing or broken
part of plant and machinery hired out or on carrying out repairs necessitated by any
specific damage thereof.
Note :- 1. Plant and machinery should be handed over to the hirer only at the place where
they are stored by the KNNL and on completion of the work, they should be returned by
the contractor at his cost to the same place or any nearer place pointed out by the
Executive Engineer. In no case will KNNL undertake to convey the plant and machinery
from the KNNL stores to the place where the hirer wants them for his use.
Note :- 2. The following charges will , however be borne by the KNNL.

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 (i) When a Road roller is taken by the Divisional store to the Sub division store for
issue/for use.
(ii) When it is taken from one Sub-division to another if there is no consolidation
work en-route;
Note :- 3. The plant and machinery hired should be made available for inspection by the
Executive Engineer or any officer authorised by him.
Note :- 4. In all cases, the period of hire shall count from the date the plant and
machinery leave the store to the date they are returned thereto.
Note :- 5. In all cases, the security deposit equivalent to 25 percent of the market value
or appraised value as fixed by the Superintending Engineer should be taken from the
Contractor before the plant and machinery are entrusted to their sole custody on hire.
3. The hire charges should not be levied whenever machinery remain idle for no fault of
the contractor in the circumstances, detailed below. The discretion in this behalf should
rest with the Executive Engineer concerned.
a) All recognized holidays and weekly bazaar holiday.
b) On rainy days, when it is not possible fir the contractor to use the machinery.
c) For want of working space for which contractor is not responsible concerned
Executive Engineer should certify in this behalf.
d) When the machinery is idle due to repairs for which KNNL is responsible.
e) When the component part of the unit breaks down, on account of which the
remaining machines in the unit cannot be run economically Eg. If five scrapers and
a dozer form a unit and if the dozer breaks down , then the five scrapers cannot
be worked for want of pusher, dozer, hence the hire charges for the scrapers not
used should not be recovered during the period. The Executive Engineer concerned
is competent to decide this.
f) The hirer shall keep the said plant and machinery in good order and condition and
make good all damages (fair wear and tear excepted) whether by accident or fire
or otherwise irrespective of whether the crew was KNNL or otherwise and shall at
the period of determination of hiring pay to KNNL the cost of replacing or repairing
such of the said plant and machinery.

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 ANNEXURE-1

Terms and Conditions for Providing Vehicles on Rental Basis

1. The Vehicle should be a type of Hatch back or Sedan.

2. The Vehicle to be Provided should be in Perfect Conditions and should not be more
than 3 years old.
3. The Vehicles to be Provided Should have Comprehensive insurance at the cost of
the transport Contractor.
4. The Vehicle Should be provided for a total of 26 days in a month including all
holidays for all months except in the month of February during which the vehicle
shall be provided for a total no of days is 24.
5. The Vehicle shall be provided for a period of a total of 300 hours or 2500kms in a
month
And in case after exceeding 2500km the rates per kms is considered as per rates in
Schedule- B
6. The Vehicle is expected to be used for 96 kms per day and 2500 kms per month. In
case the usage is less than 96 kms on any day, such short usage will be carried
forward and adjusted against usage exceeding 96 kms on any other day i.e. the
monthly Contractual usage of 2500 kms will be reckoned by aggregating the number
of kms used for the 26 days irrespective of whether the vehicle has run less or more
than 96 kms per day.
7. The Contract will be for a Period from date of Agreement to March
2018.Management reserves the right to terminate the service before the expiry of
contract period without assigning any reason by giving notice of 15 days.
8. All the expenses including the cost of fuel, maintenance, bata and salary of the driver
Shall be borne by the the transport operators and KNNL is not liable to pay any
charges in this regard.
9. In the event of exigency of work, the vehicle will be Utilized for more than the
Contrcted hours of more than 26 days in a month.Such extra hours/extra days at the
accepted rates.
10. The agency should provide the required vehicles on each day. In case of failure to
do so the KNNL will be at Liberty to engage from any other agency and the
additional cost if any will be charged to the agency and recovered from their monthly
bills.

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 11. The Successful Bidder has to execute an agreement with the Executive Engineer
incorporating the terms and Conditions.
12. The Logging of Kms and reporting/Closing time will be Reckoned from the actual
time reporting and relieving.
13. The Transport Operator will not be entitled to Claim any extra charges due to
increase in fuel and Crew charges till expiry of Contract Period.

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 ANNEXURE – A

BANK GUARANTEE FOR E.M.D/SECURITY DEPOSIT

To

The Executive Engineer____________________________

Address _________________________________________
WHEREAS (Name and Address of Contractor)................................
**(thereinafter called “the Contractor”) has undertaken in pursuance of Tender
Notification/contract No.............................dated..................................to Tender/execute
(Name of contract and brief description of
works)............................... ............................................................................................
..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 Nationalised Schedule bank for the sum
specified therein as Earnest Money Deposit/Security Deposit 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, upon a total of (Amount of
Guarantee)..Rs...................................(in words) Rupees.................................................
and we undertake to pay you, upon your first written demand and without cavil or
argument any sum of sums within the limits of (Amount of Guarantee)...........................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 work to be performed hereunder or for 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 is valid until the date......................../60 days after the issuing of
the Defect Liability Certificate.
SIGNATURE AND SEAL OF THE GUARANTOR..
(Name and Designation)

Place : Name of Bank.................................................

Date: Address..........................................................
WITNESS 1 ......................................................

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 2.

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 ANNEXURE - B
FORM OF AGREEMENT
This agreement is made on the .............................day of ......................... Between
(Name f the
employer) ...................................................................................................................
of (Mailing
address).............................................................................................................herein
after called the Employer of the one part and (name of the
contractor ) ......................................
....................................................................................................................of (Mailing
address of
Contractor) ................................................................................................................he
rein after called the Contractor of the other part.
Whereas, the Employer is desirous that certain works should be executed, viz (brief
Description of
works ) ...............................................................................................................
............................................................and has by letter of acceptance
dated ........................ (Date of Letter of Acceptance) accepted a tender by the contractor
for the execution, completion and maintenance of such work. Now this agreement witness
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 herein after referred to
2. The following documents shall be deemed to form and be read and construed as part
of this agreement viz.
a) Tender Notification
b) Formal Tender Notice (adapted version of KPWD form 66)
c) This form of Agreement
d) The letter of acceptance
e) The said tender
f) The completed Schedule - B
g) The completed Schedule - A
h) The completed Schedule - C
i) The drawings
j) The detailed Technical Specifications
k) Additional Conditions of Contract
l) The Conditions of Contract
m) The correspondence between the tenderer and the Employer / Engineer made
after opening the bid and before signing the agreement.

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3. The aforesaid documents shall be taken as complementary and mutually explanatory
on one another but in the case of ambiguities or discrepancies shall take precedence
in the order set out above.

4. In consideration of the payment to be made by the Employer, to the contractor as

herein after mentioned, the contractor hereby covenants with the Employer to
execute, complete and maintain the works in conformity in all respects with the
provisions of the contract.
5. The Employer hereby covenants to pay the contractor in consideration of the
execution, completion and maintenance of the works, the contract price at the time
and in the manner specified.
In witness whereof the parties hereto have caused their respective Common
Seals to hereunto affixed (or have hereunto see their respective hands and seals) the
day and year first above written.

SIGNED, SEALED AND DELIVERED

By the, said By the said

............................................................... ............................................
........
Name .................................................... ...................................................
on behalf of the contractor on behalf of the employer
in the presence of :

Witness 1.
2.

Note : Tenderers are not required to complete this form at the time of tendering.

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Contractor Executive Engineer
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