DOCUMENT NO: PESD: SOLAR: GCC, REV 00, 30TH JAN.

2016
MarchMDRAFT

VOLUME – I C
General Conditions of
Contract (GCC)

BHARAT HEAVY E LECT RICALS LIMITED

General Conditions of Contract 05th Jan. 2016
(Document No. PESD:SOLAR:GCC, Rev 00)

TABLE OF CONTENTS

Chapter-1 : General Instructions to Tenderers

1.1. Dispatch Instructions
1.2. Submission of Tenders
1.3. Language
1.4. Price Discrepancy
1.5. Qualification of Tenderers
1.6. Evaluation of Bids
1.7. Data to be enclosed
1.8. Authorization and Attestation
1.9. Earnest Money Deposit
1.10. Security Deposit
1.11. Return of Security Deposit
1.12. Bank Guarantee
1.13. Validity of offer
1.14. Execution of Contract Agreement
1.15. Rejection of Tender and other Conditions

2. Chapter-2
2.1. Definitions
2.2. Law Governing Contract and Court
Jurisdiction
2.3. Issue of Notice
2.4. Use of land
2.5. Commencement of Work
2.6. Measurement of Work and Mode of
Payment
2.7. Rights of BHEL
2.8. Responsibilities of Contractor in respect
of Local Laws, Employment of Workers
etc
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2.9. Progress Monitoring, Monthly Review

and Performance Evaluation
2.10. Time of Completion
2.11. Extension of Time for Completion
2.12. Over Run Compensation
2.13. Interest Bearing Recoverable Advances
2.14. Quantity Variation
2.15. Extra Works
2.16. Supplementary Items
2.17. Price Variation Clause
2.18. Insurance
2.19. Strikes & Lockout
2.20. Force Majeure
2.21. Arbitration and Reconciliation
2.22. Retention Amount
2.23. Payments
2.24. Performance Guarantee for
Workmanship
2.25. Closing of Contracts
2.26. Reverse Auction
2.27. Suspension of Business Dealings
2.28. Other Issues

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CHAPTER -1
1. GENERAL INSTRUCTION TO TENDERERS
1.1. DESPATCH INSTRUCTION

i) The General Conditions of Contract form part of the Tender specifications. All pages of the tender
documents shall be duly signed, stamped and submitted along with the offer in token of
complete acceptance thereof. The information furnished shall be complete by itself. The tenderer
is required to furnish all the details and other documents as required in the following pages

ii) Tenderers are advised to study all the tender documents carefully. Any submission of tender by the
tenderer shall be deemed to have been done after careful study and examination of the tender
documents and with the full understanding of the implications thereof. Should the tenderers have
any doubt about the meaning of any portion of the Tender Specification or find discrepancies or
omissions in the drawings or the tender documents issued are incomplete or shall require
clarification on any of the technical aspect, the scope of work etc., he shall at once, contact the
authority inviting the tender well in time (so as not to affect last date of submission) for clarification
before the submission of the tender. Tenderer’s request for clarifications shall be with reference to
Sections and Clause numbers given in the tender documents. The specifications and terms and
conditions shall be deemed to have been accepted by the tenderer in his offer. Non compliance
with any of the requirements and instructions of the tender enquiry may result in the rejection of the
tender.

iii) Integrity pact (IP) shall be applicable for all tenders / contracts if indicated in NIT. This integrity
pact shall be issued as part of the Tender documents and shall be returned by the bidder along
with Techno-commercial bid duly filled, signed and stamped by the authorized signatory who signs
the bid. Only those vendors / bidders who have entered into such an IP with BHEL shall be
considered qualified to participate in the bidding. Entering into this pact shall be a preliminary
qualification.

1.2. SUBMISSION OF TENDERS

1.2.1 The tenderers must submit their tenders to Officer inviting tender as per instructions in the NIT

1.2.2 Tenders submitted by post shall be sent by ‘REGISTERED POST ACKNOWLEDGEMENT DUE /
by COURIER’ and shall be posted with due allowance for any postal/courier delays. BHEL takes no
responsibility for delay, loss or non-receipt of tenders sent by post/courier. The tenders received
after the specified time of their submission are treated as ‘Late Tenders’ and shall not be
considered under any circumstances. Offers received by Fax/Email/Internet shall be considered
as per terms of NIT.

1.2.3 Tenders shall be opened by authorised Officer of BHEL at his office at the time and date as
specified in the NIT, in the presence of such of those tenderers or their authorised representatives
who may be present

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1.2.4 Tenderers whose bids are found techno commercially qualified shall be informed the date and time
of opening of the Price Bids and such Tenderers may depute their representatives to witness the
opening of the price bids. BHEL’s decision in this regard shall be final and binding.

1.2.5 Before submission of Offer, the tenderers are advised to inspect the site of work and the
environments and be well acquainted with the actual working and other prevalent conditions,
facilities available, position of material and labor, means of transport and access to Site,
accommodation, etc. No claim will be entertained later on the grounds of lack of knowledge of any
of these conditions.

1.3. LANGUAGE
1.3.1 The tenderer shall quote the rates in English language and international numerals. These rates
shall be entered in figures as well as in words. For the purpose of the tenders, the metric system
of units shall be used.
1.3.2 All entries in the tender shall either be typed or written legibly in ink. Erasing and over-writing is not
permitted and may render such tenders liable for rejection. All cancellations and insertions shall be
duly attested by the tenderer.

1.4 PRICE DISCREPANCY:

1.4.1 Conventional (Manual) Price Bid opening : In the case of price bid opening without resorting to
Reverse Auction, if there are differences between the rates given by the tenderer in words and
figures or in amount worked out by him, the following procedure for evaluation and award shall be
followed:
i) When there is a difference between the rates in figures and in words, the rates which corresponds
to the amounts worked out by the contractor, shall be taken as correct
ii) When the amount of an item is not worked out by the contractor or it does not correspond with the
rate written either in figure or in words, then the rate quoted by the contractor in words shall be
taken as correct
iii) When the rate quoted by the contractor in figures and words tallies but the amount is not worked
out correctly, the rate quoted by the contractor shall be taken as correct and not the amount.
iv) In case of lumpsum price, if there is any difference between the amount in figures and in words, the
amount quoted by the bidder in words shall be taken as correct.
v) In case of omission in quoting any rate for one or more items, the evaluation shall be done
considering the highest quoted rate obtained against the respective items by other tenderers for
the subject tender. If the tenderer becomes L-1, the notional rates for the omission items shall be
the lowest rates quoted for the respective items by the other tenderers against the respective
omission items for the subject job and the ‘Total quoted price (loaded for omissions)’ shall be
arrived at. However the overall price remaining the same as quoted originally, the rates for all the
items in the ‘Total quoted price (loaded for omissions)’ shall be reduced item wise in proportion to
the ratio of ‘Original’ total price and the ‘Total quoted price (loaded for omissions)’’.
vi) The ‘Final total amount shall be arrived at after considering the amounts worked out inline with ‘I’ to
‘v’ above.

1.4.2 Reverse Auction: In case of Reverse Auction, the successful bidder shall undertake to execute
the work as per overall price offered by him during the Reverse Auction process. In case of
omission of rates, the procedure shall be as per ‘Guidelines for Reverse Auction’ enclosed.

1.5. QUALIFICATION OF TENDERERS

i) Only tenderers who have previous experience in the work of the nature and description detailed in
the Notice Inviting Tender and/or tender specification are expected to quote for this work duly

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detailing their experience along with offer.

ii) Offers from tenderers who do not have proven and established experience in the field shall not be
considered.
iii) Offers from tenderers who are under suspension (banned) by any Unit/Region/Division of BHEL
shall not be considered.
iv) Offers from tenderers who do not comply with the latest guidelines of Ministry/Commissions of Govt
of India shall not be considered.

1.6. EVALUATION OF BIDS

i) Technical Bids submitted by the tenderer will be opened first and evaluated for fulfilling the Pre
Qualification criteria and other conditions in NIT/Tender documents, based on documentary
evidences submitted along with the offer
ii) In case the same qualifying experience is claimed by more than one agency, then the agency who
has executed the work as per documentary evidence submitted shall only be qualified. Scope of
qualifying work should be totally with the agency who has executed and in case it is only labor+
consumables without T&P, then the responsibility of execution is assigned to the first agency and
not to the agency who has executed only as labor supply contractor. Further, BHEL reserves the
right to ask for further proofs including submission of TDS certificates for the said job
iii) In case the qualifying experience is claimed by private organizations based on Work Order and
completion certificates from another private organization, BHEL reserves the right to ask for
further proofs including submission of TDS certificates for the said job.
iv) Assessing Bidder Capacity for executing the current tender shall be as per Notice Inviting Tender
v) Price Bids of shortlisted bidders shall only be opened either through the conventional price bid
opening or through electronic Reverse Auction, at the discretion of BHEL
vi) Price Bids of unqualified bidders shall not be opened. Reasons for rejection shall be intimated in
due course after issue of LOI/LOA to successful bidder and receipt of unqualified acceptance from
the successful bidder
vii) Bidders are advised to also refer to clause no 2.9.4 regarding evaluation of their performance in
ongoing projects for the current tender.

1.7. DATA TO BE ENCLOSED

Full information shall be given by the tenderer in respect of the following. Non-submission of this
information may lead to rejection of the offer.

i) INCOME TAX PERMANENT ACCOUNT NUMBER

Certified copies of Permanent Account Numbers as allotted by Income Tax Department for the
Company/Firm/Individual Partners, etc. shall be furnished along with tender.

ii) ORGANIZATION CHART

The organization chart of the tenderer’s organization, including the names, addresses and contact
information of the Directors/Partners shall be furnished along with the offer.

iii) An attested copy of the Power of Attorney, in case the tender is signed by an individual
other than the sole proprietor

iv) IN CASE OF INDIVIDUAL TENDERER:

His / her full name, address and place & nature of business.

v) IN CASE OF PARTNERSHIP FIRM

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The names of all the partners and their addresses, A copy of the partnership deed/instrument of
partnership dully certified by the Notary Public shall be enclosed.

vi) IN CASE OF COMPANIES:

a. Date and place of registration including date of commencement certificate in case of Public
Companies (certified copies of Memorandum and articles of Association are also to be furnished).
b. Nature of business carried on by the Company and the provisions of the Memorandum relating
thereof.

1.8 AUTHORISATION AND ATTESTATION

Tenders shall be signed by a person duly authorized/empowered to do so. An attested copy of the
Power of Attorney, in case the tender is signed by an individual other than the sole proprietor shall
be submitted along with the tenders

1.9 EARNEST MONEY DEPOSIT

1.9.1 Every tender must be accompanied by the prescribed amount of Earnest Money Deposit (EMD) in
the manner described herein.

i) EMD shall be furnished along with the offer in full as per the amount indicated in the Special
Conditions of Contract / NIT
ii) EMD is to be paid in cash (as permissible under Income Tax Act), Pay order or Demand Draft in
favour of ‘Bharat Heavy Electricals Limited’ and payable at Hyderabad(PESD HQ) issuing the
tender.
iii) No other form of EMD remittance shall be acceptable to BHEL
iv) Bidder may opt to deposit “One Time EMD” of Rs. 2.0 lakhs (Rupees Two lakhs only) with BHEL
Hyderabad(PESD HQ) issuing the tender, which will enable them to participate in all the future
tender enquiries in respect of Erection and Commissioning services issued from the respective
office. Interested bidders may clearly send their consent for converting the present EMD into a
“One Time EMD” in their offer.
 Note: The ‘One Time EMD’ cannot be withdrawn by the tenderers within 3 years from the
date of deposit, under any circumstances. The Tenderer who wishes to withdraw after three
years will not be allowed to submit ‘One Time EMD’ again.
v) Bidders who have already deposited such “One Time EMD” of Rs. 2.00 lakh are exempted from
submission of EMD for this tender. However a copy of ‘One Time EMD’ certificate issued by BHEL
PESD HQ issuing the tender shall be enclosed along with the offer.

1.9.2 EMD by the bidder will be forfeited as per Tender Documents if

i) After opening the tender, the bidder revokes his tender within the validity period or increases his
earlier quoted rates.
ii) The bidder does not commence the work within the period as per LOI/Contract. In case the LOI /
contract is silent in this regard then within 15 days after award of contract.

1.9.3 EMD shall not carry any interest.

1.9.4 In the case of unsuccessful bidders, the Earnest Money will be refunded to them within a reasonable
time after acceptance of award by successful tenderer.

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1.10 SECURITY DEPOSIT

1.10.1 Upon acceptance of Tender, the successful Tenderer should deposit the required amount of Security
Deposit for satisfactory completion of work, as per the rates given below:

SN Contract Value Security Deposit Amount

1 Up to Rs. 10 lakhs 10% of Contract Value

2 Above Rs. 10 lakhs 1 lakh + 7.5% of the Contract Value
up to Rs.50 lakhs exceeding Rs. 10 lakhs.
3 Above Rs. 50 lakhs Rs 4 lakhs + 5% of the Contract Value
exceeding Rs. 50 lakhs.

1.10.2 The security Deposit should be furnished before start of the work by the contractor.
1.10.3 Security Deposit may be furnished in any one of the following forms
i) Cash (as permissible under the Income Tax Act)
ii) Pay Order / Demand Draft in favour of BHEL.
iii) Local cheques of scheduled banks, subject to realization.
iv) Securities available from Post Offices such as National Savings Certificates, Kisan Vikas Patras etc.
(Certificates should be held in the name of Contractor furnishing the security and duly pledged in
favour of BHEL and discharged on the back).
v) Bank Guarantee from Scheduled Banks / Public Financial Institutions as defined in the Companies
Act. The Bank Guarantee format for Security Deposit shall be in the prescribed formats
vi) Fixed Deposit Receipt issued by Scheduled Banks / Public Financial Institutions as defined in the
Companies Act. The FDR should be in the name of the contractor, A/C BHEL, duly discharged on
the back.
vii) Security deposit can also be recovered at the rate of 10% from the running bills. However in such
cases at least 50% of the Security Deposit should be deposited in any form as prescribed before
start of the work and the balance 50% may be recovered from the running bills.
viii) EMD of the successful bidder can be converted and adjusted against the cash portion of Security
Deposit excepting for such bidders who have remitted One Time EMD.

NOTE: Acceptance of Security Deposit against Sl. No. (iv) and (vi) above will be subject to
hypothecation or endorsement on the documents in favour of BHEL. However, BHEL will not be
liable or responsible in any manner for the collection of interest or renewal of the documents or in
any other matter connected therewith.

1.10.4 The Security Deposit shall not carry any interest.

1.10.5 In case the value of work exceeds / reduces from the awarded / accepted value, the Security
Deposit shall be correspondingly enhanced / reduced as given below:
i) The enhanced part of the Security Deposit shall be immediately deposited by the Contractor or
adjusted against payments due to the Contractor.
ii) There will be no reduction in Security Deposit value in case of variation in contract value upto the
lower limit specified in Quantity variation clause. In case of reduction of contract value beyond the
lower limit specified in Quantity Variation clause, then the Security Deposit shall be re adjusted in
proportion.
iii) In case of reduction, the reduced Contract value shall be certified by BHEL Construction Manager
after ascertaining / freezing of BOQ / Drawings from the Design / Engineering Centre. The reduced

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Security Deposit value can only be considered after taking into account the adequacy of the
securities held by BHEL to meet the liabilities of the contractor for the contract, and the
performance of the contract in general. In such cases, the revised value of Security Deposit
shall be worked out only after execution of not less than the lower limit of the revised scope
of work/contract value as per quantity variation clause, and as certified by Construction
Manager. This reduction in value of Security Deposit shall not entitle the contractor to any
amendment of Contract and shall be operated at the discretion of BHEL

iv) Contract value for the purpose of operating the reduced/increased value of Security Deposit due to
Quantity Variation, shall be exclusive of Price Variation Clause, Over Run Compensation and Extra
works done on manday rates.

1.10.6 The validity of Bank Guarantees towards Security Deposit shall be initially upto the completion
period as stipulated in the Letter of Intent/Award + 3 months, and the same shall be kept valid by
proper renewal till the acceptance of Final Bills of the Contractor, by BHEL

1.10.7 BHEL reserves the right of forfeiture of Security Deposit in addition to other claims and penalties in
the event of the Contractor’s failure to fulfill any of the contractual obligations or in the event of
termination of contract as per terms and conditions of contract. BHEL reserves the right to set off
the Security Deposit against any claims of other contracts with BHEL.

1.11 RETURN OF SECURITY DEPOSIT

Security Deposit shall be refunded/Bank Guarantee(s) released to the Contractor along with the
‘Final Bill’ after deducting all expenses / other amounts due to BHEL under the contract / other
contracts entered into with them by BHEL.

1.12 BANK GUARANTEES

Where ever Bank Guarantees are to be furnished/submitted by the contractor, the following shall be
complied with
i) Bank Guarantees shall be from Scheduled Banks / Public Financial Institutions as defined in the
Companies Act.
ii) The Bank Guarantees shall be as per prescribed formats.
iii) It is the responsibility of the bidder to get the Bank Guarantees revalidated/extended for the required
period (subject to a minimum period of six months), as per the advice of BHEL Site Engineer /
Construction Manager. BHEL shall not be liable for issue of any reminders regarding expiry of the
Bank Guarantees.
iv) In case extension/further extensions of any Bank Guarantees are not required, the bidders shall
ensure that the same is explicitly endorsed by the Construction Manager and submitted to PESD
HQ.
v) In case the Bank Guarantees are not extended before the expiry date, BHEL reserves the right to
invoke the same by informing the concerned Bank in writing, without any advance
notice/communication to the concerned bidder.
vi) Bidders to note that any corrections to Bank Guarantees shall be done by the issuing Bank, only
through an amendment in an appropriate non judicial stamp paper.
vii) The Original Bank Guarantee shall be sent directly by the Bank to BHEL under Registered Post
(Acknowledgement Due), addressed to the Subcontracting Department of the PESD.

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1.13 VALIDITY OF OFFER

The rates in the Tender shall be kept open for acceptance for a minimum period of SIX
MONTHS from latest due date of offer submission (including extension, if any). In case BHEL (Bharat
Heavy Electricals Ltd) calls for negotiations, such negotiations shall not amount to cancellation or
withdrawal of the original offer which shall be binding on the tenderers.

1.14 EXECUTION OF CONTRACT AGREEMENT

The successful tenderer’s responsibility under this contract commences from the date of issue of
the Letter of Intent by Bharat Heavy Electricals Limited. The Tenderer shall submit an unqualified
acceptance to the Letter of Intent/Award within the period stipulated therein.

The successful tenderer shall be required to execute an agreement in the prescribed form, with
BHEL, within a reasonable time after the acceptance of the Letter of Intent/Award, and in any
case before releasing the first running bill. The contract agreement shall be signed by a person
duly authorized/empowered by the tenderer.

1.15 REJECTION OF TENDER AND OTHER CONDITIONS

1.15.1 The acceptance of tender will rest with BHEL which does not bind itself to accept the lowest
tender or any tender and reserves to itself full rights for the following without assigning any
reasons whatsoever:-

a. To reject any or all of the tenders.

b. To split up the work amongst two or more tenderers as per NIT

c. To award the work in part if specified in NIT

d. In case of either of the contingencies stated in (b) and (c) above, the time for completion as
stipulated in the tender shall be applicable.

1.15.2 Conditional tenders, unsolicited tenders, tenders which are incomplete or not in the form
specified or defective or have been materially altered or not in accordance with the tender
conditions, specifications etc., are liable to be rejected.
1.15.3 Tenders are liable to be rejected in case of unsatisfactory performance of the tenderer with
BHEL, or tenderer under suspension (hold/banning /delisted ) by any unit / region / division of
BHEL or tenderers who do not comply with the latest guidelines of Ministry/Commissions of
Govt of India. BHEL reserves the right to reject a bidder in case it is observed that they are
overloaded and may not be in a position to execute this job as per the required schedule in line
with clause no. 9.0 of the ‘NIT’. The decision of BHEL will be final in this regard.

1.15.4 If a tenderer who is a proprietor expires after the submission of his tender or after the
acceptance of his tender, BHEL may at their discretion, cancel such tender. If a partner of a firm
expires after the submission of tender or after the acceptance of the tender, BHEL may then
cancel such tender at their discretion, unless the firm retains its character.

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1.15.5 BHEL will not be bound by any Power of Attorney granted by changes in the composition of the
firm made subsequent to the execution of the contract. They may, however, recognise such
power of Attorney and changes after obtaining proper legal advice, the cost of which will be
chargeable to the contractor concerned.

1.15.6 If the tenderer deliberately gives wrong information in his tender, BHEL reserves the right to
reject such tender at any stage or to cancel the contract if awarded and forfeit the Earnest
Money/Security Deposit/any other money due.

1.15.7 Canvassing in any form in connection with the tenders submitted by the Tenderer shall make his
offer liable to rejection.

1.15.8 In case the Proprietor, Partner or Director of the Company/Firm submitting the Tender, has any
relative or relation employed in BHEL, the authority inviting the Tender shall be informed of the
fact as per specified format, along with the Offer. Failing to do so, BHEL may, at its sole
discretion, reject the tender or cancel the contract and forfeit the Earnest Money/Security
Deposit.

1.15.9 The successful tenderer should not sub-contract part or complete work detailed in the tender
specification undertaken by him without written permission of BHEL’s Construction Manager/Site
Incharge. The tenderer is solely responsible to BHEL for the work awarded to him.
1.15.10 The Tender submitted by a techno commercially qualified tenderer shall become the property of
BHEL who shall be under no obligation to return the same to the bidder. However unopened
price bids and late tenders shall be returned to the bidders.
1.15.11 Unsolicited discount received after the due date and time of Bid Submission shall not be
considered for evaluation. However, if the party who has submitted the unsolicited
discount/rebate becomes the L-I party, then the awarded price i.e contract value shall be worked
out after considering the discount so offered.
1.15.12 BHEL shall not be liable for any expenses incurred by the bidder in the preparation of the tender
irrespective of whether the tender is accepted or not.
1.15.13 Additional security deposit (SD) has to be submitted by the successful bidder with value as
follows :
If the Final Price of the successful bidder is lesser by ‘more than 20% of BHEL’s estimates then
only, Additional Security Deposit ‘ will be required to be submitted by the successful bidder with
value as follows:

Additional Security Deposit = 30% of (A-B) will be calculated as below:

A = 80% of BHEL estimate

B = The final offered price of successful bidder through RA (In case of RA)
OR
Sealed paper price bid of successful bidder (In case of paper bid)

This additional “Security Deposit” shall have the same validity as that of the “Security Deposit”
and shall be revalidated /released in the manner as spelt out for the “Security Deposit” as per
relevant clause of GCC.
The BHEL’s estimated value shall be disclosed to the successful bidder (on their request) at
appropriate juncture in case “Additional Security Deposit” is applicable.

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CHAPTER-2
2.1 DEFINITION: The following terms shall have the meaning hereby assigned to them except where the
context otherwise requires

i) BHEL shall mean Bharat Heavy Electricals Limited (of the respective Power Sector Region/ PESD
inviting the Tender), a company registered under Indian Companies Act 1956, with its Registered
Office at BHEL HOUSE, SIRI FORT, NEW DELHI – 110 049, or its Power Sector Regional
Offices/PESD HQ or its Authorised Officers or its Site Engineers or other employees authorised to
deal with any matters with which these persons are concerned on its behalf.
ii) “EXECUTIVE DIRECTOR” or ‘GROUP GENERAL MANAGER’ or “GENERAL MANAGER
(Incharge)” or “GENERAL MANAGER” shall mean the Officer in Administrative charge of the
respective Power Sector Region.

iii) “COMPETENT AUTHORITY” shall mean Executive Director or Group General Manager or General
Manager (Incharge) or General Manager or BHEL Officers who are empowered to act on behalf of
the Executive Director or General Manager (Incharge) or General Manager of BHEL.
iv) “ENGINEER” or “ENGINEER IN CHARGE” shall mean an Officer of BHEL as may be duly
appointed and authorized by BHEL to act as “Engineer” on his behalf for the purpose of the
Contract, to perform the duty set forth in this General Conditions of Contract and other Contract
documents. The term also includes ‘CONSTRUCTION MANAGER’ or ‘SITE INCHARGE’ as well
as Officers at Site or at the Headquarters of the PESD.

v) “SITE” shall mean the places or place at which the plants/equipments are to be erected and
services are to be performed as per the specification of this Tender.

vi) “CLIENT OF BHEL” or “CUSTOMER” shall mean the project authorities with whom BHEL has
entered into a contract for supply of equipments or provision of services.

vii) “CONTRACTOR” shall mean the successful Bidder/Tenderer who is awarded the Contract and
shall include the Contractor’s successors, heirs, executors, administrators and permitted assigns.

viii) “CONTRACT” or “CONTRACT DOCUMENT” shall mean and include the Agreement of Work
Order, the accepted appendices of Rates, Schedules, Quantities if any, General Conditions of
Contract, Special Conditions of Contract, Instructions to the Tenderers, Drawings, Technical
Specifications, the Special Specifications if any, the Tender documents, subsequent amendments
mutually agreed upon and the Letter of Intent/Acceptance issued by BHEL. Any conditions or
terms stipulated by the contractor in the tender documents or subsequent letters shall not form
part of the contract unless, specifically accepted in writing by BHEL in the Letter of Intent/Award
and incorporated in the agreement.

ix) “GENERAL CONDITIONS OF CONTRACT” shall mean the ‘Instructions to Tenderers’ and
‘General Conditions of Contract’ pertaining to the work for which above tenders have been called
for.

x) “TENDER SPECIFICATION” or “TENDER” or “TENDER DOCUMENTS” shall mean General

Conditions, Common Conditions, Special Conditions, Price Bid, Rate Schedule, Technical
Specifications, Appendices, Annexures, Corrigendum, Amendments, Forms, procedures, Site

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information, etc and drawings/documents pertaining to the work for which the tenderers are
required to submit their offers. Individual specification number will be assigned to each Tender
Specification.

xi) “LETTER OF INTENT” shall mean the intimation by a Letter/Fax/email to the tenderer that the
tender has been accepted in accordance with provisions contained in the letter. The responsibility
of the contractor commences from the date of issue of this letter and all terms and conditions of
the contract are applicable from this date.

xii) “COMPLETION TIME” shall mean the period by ‘date/month’ specified in the ‘Letter of
Intent/Award’ or date mutually agreed upon for handing over of the intended scope of work, the
erected equipment/plant which are found acceptable by the Engineer, being of required standard
and conforming to the specifications of the Contract.

xiii) “PLANT” shall mean and connote the entire assembly of the plant and equipments covered by the
contract.

xiv) “EQUIPMENT” shall mean equipment, machineries, materials, structural, electricals and other
components of the plant covered by the contract.

xv) “TESTS” shall mean and include such test or tests to be carried out on the part of the contractor as
are prescribed in the contract or considered necessary by BHEL, in order to ascertain the quality,
workmanship, performance and efficiency of the contractor or part thereof.

xvi) “APPROVED”, “DIRECTED” or “INSTRUCTED” shall mean approved, directed or instructed by

BHEL.

xvii) “WORK or CONTRACT WORK” shall mean and include supply of all categories of labour, specified
consumables, tools and tackles and Plants required for complete and satisfactory site
transportation, handling, stacking, storing, erecting, testing and commissioning of the equipments
to the entire satisfaction of BHEL.

xviii) “SINGULAR AND PLURALS ETC” words carrying singular number shall also include plural and
vice versa, where the context so requires. Words imparting the masculine Gender shall be taken
to include the feminine Gender and words imparting persons shall include any Company or
Associations or Body of Individuals, whether incorporated or not.

xix) “HEADING” – The heading in these General Conditions are solely for the purpose of facilitating
reference and shall not be deemed to be part thereof or be taken as instructions thereof or of the
contract.

xx) “MONTH” shall mean calendar month unless otherwise specified in the Tender.

xxi) Day’ or ‘Days’ unless herein otherwise expressly defined shall mean calendar day or days of
twenty four (24) hours each. A week shall mean continuous period of seven (7) days.

xxii) “COMMISSIONING” shall mean the synchronization testing and achieving functional
operation of the Equipment with associated system after all initial adjustments, trials, cleaning, re-
assembly required at site if any, have been completed and Equipment with associated system is
ready for taking into service.

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xxiii) “WRITING” shall include any manuscript type written or hand written or printed statement or
electronically transmitted messages, under the signature or seal or transmittal of BHEL.

xxiv) “TEMPORARY WORK” shall mean all temporary works for every kind required in or for the
execution, completion, maintenance of the work.
xxv) ‘CONTRACT PRICE’ or ‘CONTRACT VALUE’ shall mean the sum mentioned in the
LOI/LOA/Contract Agreement subject to such additions thereto or deductions there from as may
be made under provisions hereinafter contained
xxvi) “COMMENCEMENT DATE” or “START DATE” shall mean the commencement/start of work at Site
as per terms defined in the Tender
xxvii) “SHORT CLOSING” or “FORE CLOSING” of Contract shall mean the premature closing of
Contract, for reasons not attributable to the contractor and mutually agreed between BHEL and
the contractor
xxviii) “TERMINATION” of Contract shall mean the pre mature closing of contract due to reasons as
mentioned in the contract
xxix) “DE MOBILISATION” shall mean the temporary winding up of Site establishment by Contractor
leading to suspension of works temporarily for reasons not attributable to the contractor
xxx) “RE MOBILISATION” shall mean the resumption of work with all resources required for the work
after demobilization.
2.2 LAW GOVERNING THE CONTRACT AND COURT JURISDICTION

The contract shall be governed by the Law for the time being in force in the Republic of India.
Subject to Clause 2.21.1 or 2.21.2 of this contract, the Civil Court having original Civil Jurisdiction
at Hyderabad for PESD, Delhi for PSNR, at Kolkata for PSER, at Nagpur for PSWR and at
Chennai for PSSR, shall alone have exclusive jurisdiction in regard to all claims in respect of the
Contract.
2.3 ISSUE OF NOTICE

2.3.1 Service of notice on contractor

Any notice to be given to the Contractor under the terms of the contract shall be served by sending
the same by Registered Post / Speed Post to or leaving the same at the Contractor’s last known
address of the principal place of business (or in the event of the contractor being a company, to or
at its Registered Office). In case of change of address, the notice shall be served at changed
address as notified in writing by the Contractor to BHEL. Such posting or leaving of the notice shall
be deemed to be good service of such notice and the time mentioned to the condition for doing any
act after notice shall be reckoned from the date so mentioned in such notice.

2.3.2 Service of notice on BHEL

Any notice to be given to BHEL in-charge/Region under the terms of the Contract shall be served
by sending the same by post to or leaving the same at BHEL address or changed address as
notified in writing by BHEL to the Contractor.
2.4 USE OF LAND
No land belonging to BHEL or their Customer under temporary possession of BHEL shall be
occupied by the contractor without written permission of BHEL.
2.5 COMMENCEMENT OF WORK
2.5.1 The contractor shall commence the work as per the time indicated in the Letter of Intent from BHEL
and shall proceed with the same with due expedition without delay.

2.5.2 If the contractor fails to start the work within stipulated time as per LOI or as intimated by BHEL,

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then BHEL at its sole discretion will have the right to cancel the contract. The Earnest Money
and/or Security Deposit with BHEL will stand forfeited without any further reference to him without
prejudice to any and all of BHEL’s other rights and remedies in this regard.

2.5.3 All the work shall be carried out under the direction and to the satisfaction of BHEL.

2.6 MEASUREMENT OF WORK AND MODE OF PAYMENT:

2.6.1 All payments due to the contractors shall be made by e mode only, unless otherwise found
operationally difficult for reasons to be recorded in writing.
.
2.6.2 For progress running bill payments: - The Contractor shall present detailed measurement sheets in
triplicate, duly indicating all relevant details based on technical documents and connected drawings
for work done during the month/period under various categories in line with terms of payment as
per contract. The basis of arriving at the quantities, weights shall be relevant documents and
drawings released by BHEL. These measurement sheets shall be prepared jointly with BHEL
Engineers and signed by both the parties.

2.6.3 These measurement sheets will be checked by BHEL Engineer and quantities and percentage
eligible for payment under various groups shall be decided by BHEL Engineer. The abstract of
quantities and percentage so arrived at based on the terms of payment shall be entered in
Measurement Book and signed by both the parties.

2.6.4 Based on the above quantities, contractor shall prepare the bills in prescribed format and work out
the financial value. These will be entered in Measurement Book and signed by both the parties.
Payment shall be made by BHEL after effecting the recoveries due from the contractor.

2.6.5 All recoveries due from the contractor for the month/period shall be effected in full from the
corresponding running bills unless specific approval from the competent authorities is obtained to
the contrary.

2.6.6 Measurement shall be restricted to that portion of work for which it is required to ascertain the
financial liability of BHEL under this contract.

2.6.7 The measurement shall be taken jointly by persons duly authorized on the part of BHEL and by the
Contractor.

2.6.8 The Contractor shall bear the expenditure involved if any, in making the measurements and testing
of materials to be used/used in the work. The contractor shall, without extra charges, provide all
the assistance with appliances and other things necessary for measurement.

2.6.9 If at any time due to any reason whatsoever, it becomes necessary to re-measure the work done in
full or in part, the expenses towards such re measurements shall be borne by the contractor unless
such re measurements are warranted solely for reasons not attributable to contractor.

2.6.10 Passing of bills covered by such measurements does not amount to acceptance of the completion
of the work measured. Any left out work has to be completed, if pointed out at a later date by
BHEL.

2.6.11 Final measurement bill shall be prepared in the final bill format prescribed for the purpose based on

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the certificate issued by BHEL Engineer that entire works as stipulated in tender specification has
been completed in all respects to the entire satisfaction of BHEL. Contractor shall give unqualified
“No Claim” Certificate. All the tools and tackles loaned to him should be returned in satisfactory
condition to BHEL. The abstract of final quantities and financial values shall also be entered in the
Measurement Books and signed by both parties to the contract. The Final Bill shall be prepared
and paid within a reasonable time after completion of work.
2.7 RIGHTS OF BHEL
BHEL reserves the following rights in respect of this contract during the original contract period or
its extensions if any, as per the provisions of the contract, without entitling the contractor for any
compensation.

2.7.1 To withdraw any portion of work and/or to restrict/alter quantum of work as indicated in the contract
during the progress of work and get it done through other agencies to suit BHEL’s commitment to
its customer or in case BHEL decides to advance the date of completion due to other emergent
reasons/ BHEL’s obligation to its customer.

2.7.2 To terminate the contract or get any part of the work done through other agency or deploy BHEL’s
own/hired/otherwise arranged resources , at the risk and cost of the contractor after due notice of a
period of two weeks by BHEL, in the event of:-

i) Contractor’s continued poor progress

ii) Withdrawal from or abandonment of the work before completion of the work
iii) Contractor’s inability to progress the work for completion as stipulated in the contract
iv) Poor quality of work
v) Corrupt act of Contractor
vi) Insolvency of the Contractor
vii) Persistent disregard to the instructions of BHEL
viii) Assignment, transfer, sub-letting of contract without BHEL’s written permission
ix) Non fulfillment of any contractual obligations
x) In the opinion of BHEL, the contractor is overloaded and is not in a position to execute the
job as per required schedule

2.7.3 To meet the expenses including BHEL overheads on the differential cost at 5%, over and above
the liquidated damages/penalties arising out of “Risk & Cost” as explained above under Sl.No.
2.7.2. BHEL shall recover the amount from any money due from Contractor, from any money due
to the Contractor including Security Deposit or by forfeiting any T&P or material of the contractor
under this contract or any other contract of BHEL or by any other means or any combination
thereof.

2.7.4 To terminate the contract or to restrict the quantum of work and pay for the portion of work
executed in case BHEL’s contract with their customer are terminated for any reason, as per mutual
agreement.

2.7.5 To effect recovery from any amounts due to the contractor under this or any other contract or in
any other form, the moneys BHEL is statutorily forced to pay to anybody, due to contractor’s failure
to fulfill any of his obligations. BHEL shall levy overheads of 5% on all such payments along with
the interest as defined elsewhere in the GCC.

2.7.6 While every endeavor will be made by BHEL to this end, they cannot guarantee uninterrupted work
due to conditions beyond their control. The Contractor will not be normally entitled for any

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compensation/extra payment on this account unless otherwise specified elsewhere in the contract.

2.7.7 In case the execution of works comes to a complete halt or reaches a stage wherein worthwhile
works cannot be executed and there is no possibility of commencement of work for a period of not
less than two months, due to reasons not attributable to the contractor and other than Force
Majeure conditions, BHEL may consider permitting the contractor to de mobilize forthwith and re
mobilize at an agreed future date. Cost of such demobilization/remobilization shall be mutually
agreed. ORC in such cases shall not be applicable for the period between the period of
demobilization and re mobilization. The duration of contract/time extension shall accordingly get
modified suitably. In case of any conflict, BHEL decision in this regard shall be final and binding on
the contractor.

2.7.8 In the unforeseen event of inordinate delay in receipt of materials, drawings, fronts, etc, due to
which inordinate discontinuity of work is anticipated, BHEL at its discretion may consider
contractor’s request to short close the contract in the following cases

a) The balance works (including but not limited to Trial Operation, PG Test, etc) are minor vis a vis
the scope of work envisaged as per the contract.
b) There has been no significant work in past 6 months OR no significant work is expected in next
6 months (example in Hydro projects or in projects where work has stopped due to reasons beyond
the control of BHEL)
c) The balance works cannot be done within a reasonable period of time as they are dependent on
unit shutdown or on other facilities of customer or any other reasons not attributable to the
contractor
d) Work does not start within six months of LOI/LOA date.

At the point of requesting for short closure, contractor shall establish that he has completed all
works possible of completion and he is not able to proceed with the balance works due to
constraints beyond his control. In such a case, the estimated value of the unexecuted portion of
work( or estimated value of services to be provided for carrying out milestone/stage payments like
Trial Operation/PG Test, etc) as mutually agreed, shall however be reduced from the final contract
value.

2.7.9 LIQUIDATED DAMAGES/PENALTY

If the contractor fails to maintain the required progress of work which results in delay in the
completion of the work as per the contractual completion period, BHEL shall have the right to
impose Liquidated Damage/Penalty at the rate of 0. 5% of the total contract value, per week of
delay or part thereof subject to a maximum of 10% of the total contract value. For this purpose, the
period of delay shall be the delay attributable to the Contractor for the completion of work as per
contract. Contract Value for this purpose, shall be the final executed value exclusive of ORC, Extra
Works executed on Man day rate basis, Supplementary/Additional Items and PVC.
2.8 RESPONSIBILITIES OF THE CONTRACTOR IN RESPECT OF LOCAL LAWS, EMPLOYMENT
OF WORKERS ETC.

The following are the responsibilities of the contractor in respect of observance of local laws,
employment of personnel, payment of taxes etc. The subcontractor shall fully indemnify BHEL
against any claims of whatsoever nature arising due to the failure of the contractor in discharging
any of his responsibilities hereunder:

2.8.1 As far as possible, Unskilled Workers shall be engaged from the local areas in which the work is

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being executed.

2.8.2 The contractor at all times during the continuance of this contract shall, in all his dealings with local
labor for the time being employed on or in connection with the work, have due regard to all local
festivals and religious and other customs.

2.8.3 The contractor shall comply with all applicable State and Central Laws, Statutory Rules,
Regulations etc. such as Payment of Wages Act, Minimum Wages Act, Workmen Compensation
Act, Employer’s Liability Act, Industrial Disputes Act, Employers Provident Act, Employees State
Insurance Scheme, Contract Labor (Regulation and Abolition) Act 1970, Payment of Bonus &
Gratuity Act, Building and other Construction Workers (Regulation of Employment and Conditions
of service) Act, 1996, The Building and Other Construction Workers Welfare Cess Act, 1996 and
other Acts, Rules and Regulations for labor/workers as applicable and as may be enacted by the
State and Central Government during the tenure of the Contract and having force or jurisdiction at
Site. The Contractor shall also give to the local Governing Body, Police and other relevant
Authorities all such notices as may be required by the Law.

2.8.4 The contractor shall obtain independent License under the Contract Labor (Regulations and
Abolition) Act, 1970 for engaging contract labour as required from the concerned Authorities based
on the certificate (Form-V) issued by the Principal Employer/Customer.

2.8.5 The contractor shall pay and bear all taxes, fees, license charges, Cess, duties, deposits, tolls,
royalties, commission or other charges which may be levied on account of his operations in
executing the contract.

2.8.6 While BHEL would pay the inspection fees and Registration fees of Boiler/Electrical Inspectorate,
all other arrangements for site visits periodically by the Inspectorate to site, Inspection certificate
etc. will have to be made by contractor. However, BHEL will not make any payment to the
Inspectorate in connection with contractor’s Welders/Electricians qualification tests etc.

2.8.7 Contractor shall be responsible for provision of Health and Sanitary arrangements (more
particularly described in Contract Labor Regulation & Abolition Act), Safety precautions etc. as may
be required for safe and satisfactory execution of contract.

2.8.8 The contractor shall be responsible for proper accommodation including adequate medical facilities
for personnel employed by him.

2.8.9 The contractor shall be responsible for the proper behavior and observance of all regulations by the
staff employed by him.

2.8.10 The contractor shall ensure that no damage is caused to any person/property of other parties
working at site. If any such damage is caused, it is responsibility of the contractor to make good
the losses or compensate for the same.

2.8.11 All the properties/equipments/components of BHEL/their Client loaned with or without deposit to
the contractor in connection with the contract shall remain properties of BHEL/their Client.

2.8.12 The contractor shall use such properties for the purpose of execution of this contract. All such
properties/equipments/components shall be deemed to be in good condition when received by the
contractor unless he notifies within 48 hours to the contrary. The contractor shall return them in

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good condition as and when required by BHEL/their Client. In case of non-return, loss, damage,
repairs etc, the cost thereof as may be fixed by BHEL Engineer will be recovered from the
contractor.

2.8.13 In case the contractor is required to undertake any work outside the scope of this contract, the
rates payable shall be those mutually agreed upon if the item rates are not mentioned in existing
contract.

2.8.14 Any delay in completion of works/or non achievement of periodical targets due to the reasons
attributable to the contractor, the same may have to be compensated by the contractor either by
increasing manpower and resources or by working extra hours and/or by working more than one
shift. All these are to be carried out by the contractor at no extra cost.

2.8.15 The contractor shall arrange, coordinate his work in such a manner as to cause no hindrance to
other agencies working in the same premises.

2.8.16 All safety rules and codes applied by the Client/BHEL at site shall be observed by the contractor
without exception. The contractor shall be responsible for the safety of the equipment/material and
works to be performed by him and shall maintain all light, fencing guards, slings etc. or other
protection necessary for the purpose. Contractor shall also take such additional precautions as
may be indicated from time to time by the Engineer with a view to prevent pilferage, accidents, fire
hazards. Due precautions shall be taken against fire hazards and atmospheric conditions. Suitable
number of Clerical staff, watch and ward, store keepers to take care of equipment/materials and
construction tools and tackles shall be posted at site by the contractor till the completion of work
under this contract.

The contractor shall arrange for such safety devices as are necessary for such type of work and
carry out the requisite site tests of handling equipment, lifting tools, tackles etc. as per prescribed
standards and practices.

Contractor has to ensure the implementation of Health, Safety and Environment (HSE)
requirements as per directions given by BHEL/Customer. The contractor has to assist in HSE audit
by BHEL/Customer and submit compliance Report. The contractor has to generate and submit
record/reports as per HSE plan/activities as per instruction of BHEL/Customer.

2.8.17 The contractor will be directly responsible for payment of wages to his workmen. A pay roll sheet
giving all the payments given to the workers and duly signed by the contractor’s representative
should be furnished to BHEL site for record purpose, if so called for.

2.8.18 In case of any class of work for which there is no such specification as laid down in the contract,
such work shall be carried out in accordance with the instructions and requirements of the
Engineer.

2.8.19 Also, no idle charges will be admissible in the event of any stoppage caused in the work resulting in
contractor’s labor and Tools & Plants being rendered idle due to any reason at any time.

2.8.20 The contractor shall take all reasonable care to protect the materials and work till such time the
plant/equipment has been taken over by BHEL or their Client whichever is earlier.

2.8.21 The contractor shall not stop the work or abandon the site for whatsoever reason of dispute,

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excepting force majeure conditions. All such problems/disputes shall be separately discussed and
settled without affecting the progress of work. Such stoppage or abandonment shall be treated as
breach of contract and dealt with accordingly.

2.8.22 The contractor shall keep the area of work clean and shall remove the debris etc. While executing
day-to-day work. Upon completion of work, the contractor shall remove from the vicinity of work,
all scrap, packing materials, rubbish, unused and other materials and deposit them in
places specified by the Engineer. The contractor will also demolish all the hutments, sheds,
offices, etc. constructed and used by him and shall clean the debris. In the event of his failure to
do so, the same will be arranged to be done by the Engineer and the expenses recovered from
the contractor.

2.8.23 The contractor shall execute the work in the most substantial and workman like manner in the
stipulated time. Accuracy of work and timely execution shall be the essence of this contract. The
contractor shall be responsible to ensure that the quality, assembly and workmanship conform to
the dimensions and clearance given in the drawings and/ or as per the instructions of the
Engineer.

2.8.24 The Contractor to note that equipment taken on loan basis from BHEL/ their client may not be
insured. The Contractor will take necessary precautions and due care to protect the same while in
his custody from any damage/ loss till the same is handed over back to BHEL. In case the
damage / loss is due to carelessness/ negligence on the part of the contractor, the Contractor is
liable to get them repair/ replaced immediately and in case of his failure to do so within a
reasonable time, BHEL will reserve the right to recover the loss from the contractor.

2.9 PROGRESS MONITORING, MONTHLY REVIEW AND PERFORMANCE EVALUATION

2.9.1 A detailed plan/program for completion of the contractual scope of work as per the time schedule
given in the contract shall be jointly agreed between BHEL and Contractor, before commencement
of work. The above program shall be supported by month wise deployment of resources viz
Manpower, T&P, Consumables, etc. Progress will be reviewed periodically (Daily/Weekly/Monthly)
vis a vis this jointly agreed program. The Contractor shall submit periodical progress reports
(Daily/Weekly/Monthly) and other reports/information including manpower, consumables, T&P
mobilization etc as desired by BHEL.
2.9.2 Monthly progress review between BHEL and Contractor shall be based on the agreed program as
above, availability of inputs/fronts etc, and constraints if any, as per prescribed formats. Manpower,
T&P and consumable reports as per prescribed formats shall be submitted by contractor every
month. Release of RA Bills shall be contingent upon certification by BHEL Site Engineer of the
availability of the above prescribed formats duly filled in and signed.
2.9.3 The burden of proof that the causes leading to any shortfall is not due to any reasons attributable
to the contractor is on the contractor himself. The monthly progress review shall record shortfalls
attributable to (i) Contractor, (ii) Force Majeure Conditions and (iii) BHEL
2.9.4 Performance of the contractor shall be assessed as per prescribed formats and shall form the basis
for ‘Annual/Overall Performance Evaluation’ of the Contractor. BHEL reserves the right to revise
the evaluation formats during the course of execution of the works.

2.10 TIME OF COMPLETION

2.10.1 The time schedule shall be as prescribed in the Contract. The time for completion shall be
reckoned from the date of commencement of work at Site as certified by BHEL Engineers
2.10.2 The entire work shall be completed by the contractor within the time schedule or within such
extended periods of time as may be allowed by BHEL under clause 2.11.

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2.11 EXTENSION OF TIME FOR COMPLETION

2.11.1 If the completion of work as detailed in the scope of work gets delayed beyond the contract period,
the contractor shall request for an extension of the contract and BHEL at its discretion may extend
the Contract.
2.11.2 Based on the monthly reviews jointly signed, the works balance at the end of original contract
period less the backlog attributable to the contractor shall be quantified, and the number of months
of ‘Time extension’ required for completion of the same shall be jointly worked out. Within this
period of ‘Time extension’, the contractor is bound to complete the portion of backlog attributable to
the contractor. Any further ‘Time extension’ or ‘Time extensions’ at the end of the previous
extension shall be worked out similarly.
2.11.3 However if any ‘Time extension’ is granted to the contractor to facilitate continuation of work and
completion of contract, due to backlog attributable to the contractor alone, then it shall be without
prejudice to the rights of BHEL to impose penalty/LD for the delays attributable to the contractor, in
addition to any other actions BHEL may wish to take at the risk and cost of contractor.

2.11.4 A joint program shall be drawn for the balance amount of work to be completed during the period of
‘Time Extension’, along with matching resources (with weightages) to be deployed by the
contractor as per specified format. Review of the program and record of shortfall shall be done
every month of the ‘Time extension’ period in the same manner as is done for the regular contract
period.

2.11.5 During the period of ‘Time extension’, contractor shall maintain their resources as per mutually
agreed program.

2.11.6 At the end of total work completion as certified by BHEL Engineer, and upon analysis of the total
delay, the portion of time extensions attributable to (i) Contractor, (ii) Force majeure conditions, and
(iii) BHEL, shall be worked out and shall be considered to be exhausted in the same order. The
total period of time extensions shall be the sum of (i), (ii) and (iii) above and shall be equal to period
between the scheduled date of completion and the actual date of completion of contract. LD shall
be imposed/ levied for the portion of time extensions attributable to contractor and recoverable from
the dues payable to the contractor.

2.12 OVERRUN COMPENSATION

2.12.1 Over Run Compensation (ORC) is payable by way of rate revisions for periods beyond original
contract period subject to the following terms and conditions.
2.12.2 Rates shall be increased by 5% for the first twelve months of one or more extensions beyond
original contract period. For the next twelve months of further extensions if any, rates shall be
increased as above by 5% over the previous twelve months, and similarly for each subsequent
twelve months extension.
2.12.3 The amount of increase payable per month due to rate revisions is subject to a minimum of Rs
1, 00,000/- per month and a maximum of Rs 5, 00,000/- per month.
2.12.4 Should there be any ‘Time extension’ for reasons attributable only to the contractor, then the work
shall be executed by the contractor at the rates applicable for the period the work was planned
2.12.5 Payment of ORC shall be regulated as follows:
i) Contractor is entitled to Over Run Compensation (ORC) only for the portion of backlog
attributable to BHEL.
ii) 50% of the compensation as per clause 2.12.3 is allocated for deployment of resources
agreed as per the joint program drawn vide 2.11.4. Payment shall however be based on
the actual deployment of resources for the month as certified by BHEL, as per weightages
assigned therein.

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iii) 50% of the compensation as per clause 2.12.3 is allocated for achieving of planned
progress agreed as per the joint program drawn vide 2.11.4. Payment shall be on pro rata
basis for actual achieved quantities
iv) Total Over Run Compensation shall be limited to 10% of the executed contract value as
certified in Final Bill. For this purpose executed contract value excludes PVC, ORC,
Supplementary/Additional Items and Extra Works done on man day rate basis
2.12.6 Contractor shall not be entitled for any Over Run Compensation (ORC) for the portion of backlog
attributable to the contractor. Such works shall be executed at the rates applicable for the period
the work was planned.

2.13 INTEREST BEARING RECOVERABLE ADVANCES

2.13.1 Normally no advance is payable to the contractor. However, advance payment in exceptional
circumstances shall be interest bearing and secured through an equivalent Bank Guarantee and
shall be limited to a maximum of 5% of contract value. This ‘Interest Bearing Recoverable Advance’
shall be payable in not less than two installments with any of the installment not exceeding 60% of
the total eligible advance.

2.13.2 In exceptional circumstances, with due justification, Competent Authority of BHEL is empowered to
approve proposals for payment of additional interim interest bearing advance against matching
Bank Guarantee, for resource augmentation towards expediting work for project implementation.

2.13.3 Bank Guarantee towards ‘Interest Bearing Recoverable Advance’ shall be at least 110% of the
advance so as to enable recovery of not only principle amount but also the interest portion, if so
required.
2.13.4 Contractor shall establish the utilization of advance drawn before the release of next installment.

2.13.5 Payment and recovery of Interest Bearing Recoverable advance shall be at the sole discretion of
BHEL and shall not be a subject matter of arbitration.

2.13.6 The rate of interest applicable for the above advances shall be the prime lending rate of State Bank
of India prevailing at the time of disbursement of the advance + 2%, and such rate will remain fixed
till the total advance amount is recovered.

2.13.7 Unadjusted amount of advances paid shall not exceed 5% of the total contract value at any point of
time. Recovery of advances shall be made progressively from each Running Bill such that the
advance amounts paid along with the interest is fully recovered by the time the contractor’s billing
reaches 80% of contract value.

2.13.8 Recovery rate per month shall be the sum of:

a. 10% of Running Bill amount
b. Simple interest up to the date of RA Bill on the outstanding Principle amount/amounts

2.13.9 Contractor to submit Bank Guarantee as per prescribed formats for each of the advance and shall
be valid for at least one year or the recovery duration or the balance contract period which ever is
later. In case the recovery of dues does not get completed within the aforesaid BG period, the
contractor shall renew the BG or submit fresh BG for the outstanding amount and the remaining
recovery period.

2.13.10 BHEL is entitled to make recovery of the entire outstanding amount in case the contractor fails to
comply with the BG requirement.

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2.14 QUANTITY VARIATION

2.14.1 The quantities given in the contract are tentative and may change to any extent (both in plus side
and minus side).The quoted rates shall remain firm irrespective of any variations in the individual
quantities. No compensation becomes payable in case the variation of the final executed contract
value is within the limits Minus (-) 15% of awarded contract value.
2.14.2 Compensation due to variation of final executed value in excess of the limits defined in clause
above, shall be as follows:
i) In case the finally executed contract value reduces below the lower limit of Contract Value due
to quantity variation specified above, the contractor will be eligible for compensation @ 15% of
the difference between the lower limit of the contract value and the actual executed value.
ii) In case the finally executed contract value increases above the awarded Contract Value due to
quantity variation, there will be no upward revision in the rates for the individual items and also
contractor is not eligible for any compensation.

2.15 EXTRA WORKS

2.15.1 All rectifications/modifications, revamping, and reworks required for any reasons not due to the
fault of the contractor, or needed due to any change in deviation from drawings and design of
equipments, operation/maintenance requirements, mismatching, or due to damages in transit,
storage and erection/commissioning, and other allied works which are not very specifically
indicated in the drawings, but are found essential for satisfactory completion of the work, will be
considered as extra works.

2.15.2 Extra works arising on account of the contractor's fault, irrespective of time consumed in rectification
of the damage/loss, will have to be carried out by the contractor free of cost. Under such
circumstances, any material and consumable required for this purpose will also have to be arranged
by the contractor at his cost.

2.15.3 All the extra work should be carried out by a separately identifiable gang, without affecting routine
activities. Daily log sheets in the pro-forma prescribed by BHEL should be maintained and shall be
signed by the contractor's representative and BHEL engineer. No claim for extra work will be
considered/ entertained in the absence of the said supporting documents i.e. daily log sheets.
Signing of log sheets by BHEL Engineer does not necessarily mean the acceptance of such works
as extra works.

2.15.4 BHEL retains the right to award or not to award any of the major repair/
rework/modification/rectification/fabrication works to the contractor, at their discretion without
assigning any reason for the same.

2.15.5 After eligibility of extra works is established and finally accepted by BHEL engineer/designer,
payment will be released on competent authority's approval at the following rate.

MAN-HOUR RATE FOR ELIGIBLE EXTRA WORKS: Single composite average labor man-hour
rate, including overtime if any, supervision, use of tools and tackles and other site expenses and
incidentals, consumables for carrying out any major rework/ repairs/ rectification/ modification/
fabrication as certified by site as may arise during the course of erection, testing, commissioning or
extra works arising out of transit, storage and erection damages, payment, if found due will be at Rs
60/- per man hour.

2.15.6 The above composite labor man hour rate towards extra works shall remain firm and not subject to

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any variation during execution of the work. PVC will not be applicable for extra works. Rate revision,
Over Run Charges/compensation etc will not be applicable due to extra works.

2.15.7 Extra Works for Civil Packages shall be regulated as follows

i) Rates for Extra Works arising due to (1) non availability of BOQ (Rate Schedule), OR (2) change in
Specifications of materials/works (3) rectification/modification/dismantling & re erecting etc due to no
fault of Contractor, shall be in the order of the following:
a) Item rates are to be derived from similar nature of items in the BOQ (Rate Schedule) with
applicable escalation derived from All India Consumer Price Index for Whole Sale Commodities.
b) As per CPWD-DSR-2007 (or latest edition) with applicable escalation derived from All India
Consumer price Index for Whole Sale Commodities, OR, Notification issued by the office of
CPWD for ‘Cost Index’ in that Region where the project is being executed, whichever is less
c) Item rates are to be worked out on the basis of prevailing market rates mutually agreed between
BHEL and Contractor, plus 15% towards Contractor’s overheads and profit.
ii) PVC and ORC will not be applicable for (i) above.
2.16 SUPPLEMENTARY ITEMS

2.16.1 For Non Civil Works

Supplementary items are items/works required for completion of entire work but not specified in the
scope of work. Subject to certification of such items/works as supplementary items by BHEL
Engineer, rates shall be derived on the basis of any one of the following on mutual agreement:
i) Based on percentage breakup/rates indicated for similar/nearby items.
ii) In case (i) above does not exist, then BHEL/site may derive the percentage breakup/rates to suit the
type of work
2.16.2 For Civil Works
i) Rates for Supplementary Works/Additional Works arising out due to additions/alterations in the
original scope of works as per contract subject to certification of BHEL Engineer shall be worked out
as under:
a) Item rates which are available in existing BOQ (Rate Schedule) shall be operated with applicable
escalation derived from All India Consumer Price Index for Whole Sale Commodities
b) Items of works which are not available in existing BOQ shall be operated as an ‘Extra Works’
and rate shall be derived as per clause no 2.15.7
ii) Execution of Supplementary Works/Additional Works through the Contractor shall be at the sole
discretion of BHEL, and shall be considered as part of executed contract value for the purpose of
Quantity Variation as per clause 2.14
iii) BHEL Engineer’s decision regarding fixing the rate as above is final and binding on the contractor.
iv) PVC and ORC will not be applicable for (i) above.

2.17 PRICE VARIATION COMPENSATION

2.17.1 In order to take care of variation in cost of execution of work on either side, due to variation in the
index of LABOUR, HIGH SPEED DIESEL OIL, ELECTRODE, CEMENT, STEEL, MATERIALS,
Price Variation Formula as described herein shall be applicable
2.17.2 The basis for calculation of price variation in each category, their component, Base Index, shall be
as under:

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SL CATEGORY BASE INDEX COMPONENT (‘K’)

NO.
CIVIL PACKAGES MECHANICAL LABOUR
(See Note A/B/C) PACKAGES ORIENTED
PACKAGES
A B** C (See Note D )
i) LABOUR ‘MONTHLY ALL-INDIA AVERAGE 40 25 30 65 80
CONSUMER PRICE INDEX NUMBERS
(ALL CATEGORIES)
FOR INDUSTRIAL WORKERS’ published
by Labour Bureau, Ministry of Labour and
Employment, Government of India.
(Website: labourbureau.nic.in)
Name of Commodity : HSD OIL.
ii) HIGH SPEED 5 3 5 5 5
Type : INDIVIDUAL COMMODITY
DIESEL OIL
(See Note F)
Name of Commodity : ELECTRODES
iii) ELECTRODE 15
Type: INDIVIDUAL COMMODITY
(See Note F)
Name of Commodity : CEMENT
iv) CEMENT 20 30
Type: INDIVIDUAL COMMODITY
(See Note F)
Name of Commodity : a1. IRON & STEEL
v) STRUCTURAL 25
Type: GROUP ITEM
AND
(See Note F)
REINFORCEMENT
STEEL
Name of Commodity: ALL COMMODITIES
vi) MATERIALS 40 12 20
Type: GROUP ITEM
(Other than (See Note F)
Cement & Steel)
Note: A) Cement & Steel : Free Issue (BHEL Scope)
B) Cement & Steel : In Contractor Scope {**: unless otherwise specified in Special Conditions of Contract (SCC) }
C) Cement in Contractor Scope, and Steel is Free Issue (BHEL Scope)
D) Predominantly ‘Labour Oriented’ packages include Material Handling & Management, Insulation, Painting, Electrical and CI or
a combination thereof, which are separately tendered and awarded
E) For Composite packages (i.e. Civil+Mechanical+Electrical/CI or Civil+Mechanical or Mechanical+Electrical/CI), the components
for various categories shall be as per respective packages
F) As per the ‘MONTHLY WHOLE SALE PRICE INDEX’ for the respective Commodity and Type, published by Office of Economic
Adviser, Ministry of Commerce and Industry, Government of India. (Website : www.eaindustry.nic.in). Revisions in the index or
commodity will be re-adjusted accordingly.

2.17.3 In case ‘Category’ is not covered in table under the clause 2.17.2 then, 85% component of
Contract Value shall be permitted to be adjusted for variation in various relevant indices during
execution of work. The remaining 15% shall be treated as fixed component.

2.17.4 Payment/recovery due to variation in index shall be determined on the basis of the following
notional formula without any initial absorption, in respect of the identified components viz
LABOUR, HIGH SPEED DIESEL, ELECTRODE, CEMENT, STEEL, MATERIALS
P = K x R x (XN - Xo)
Xo
Where
P = Amount to be paid/recovered due to variation in the Index for Labor, Electrode, High Speed
Diesel Oil, Cement, Steel and Materials
K = Percentage component applicable for Labor, Electrode, High Speed Diesel Oil, Cement,
Steel and Materials
R = Value of work done for the billing month (Excluding Taxes and Duties if payable extra)

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XN = Revised Index No for Labor, Electrode, High Speed Diesel Oil, Cement, Steel and Materials
for the billing month under consideration
Xo = Index no for Labor, Electrode, High Speed Diesel Oil, Cement, Steel and Materials as on
the Base date.

2.17.5 Base date shall be calendar month of the latest date of submission of Tender.
2.17.6 PVC shall not be payable for the ORC amount, Supplementary/Additional Items, Extra works.
2.17.7 The contractor shall furnish necessary monthly bulletins for the necessary indices from the relevant
websites along with his Bills.

2.17.8 The contractor will be required to raise the bills for price variation payments on a monthly basis
along with the running bills irrespective of the fact whether any increase/decrease in the index for
relevant categories has taken place or not. In case there is delay in publication of bulletins (final
figure), the provisional values as published can be considered for payments and arrears shall be
paid/ recovered on getting the final values.

2.17.9 PVC shall be applicable for the entire original contract period plus the extended period. However
the Total Quantum of Price Variation amount payable/recoverable shall be regulated as follows:
i) For the portion of backlog attributable to the contractor, the PVC will be based on the
average of the indices for the period of the original contract period.
ii) For the period of Force Majeure, the PVC will be limited to the indices applicable at the
beginning of the force majeure period.
iii) For the portion of backlog attributable to BHEL, the PVC will be as per the indices
applicable for the respective months
iv) The total amount of PVC shall be limited to 20% of executed contract value. Executed
contract value for this purpose is exclusive of PVC, ORC, Supplementary/Additional
Items, Extra works.
2.18 INSURANCE

2.18.1 BHEL/their customer shall arrange for insuring the materials/properties of BHEL/customer covering
the risks during transit, storage, erection and commissioning.
2.18.2 It is the sole responsibility of the contractor to insure his materials, equipments, workmen, etc.
against accidents and injury while at work and to pay compensation, if any, to workmen as per
Workmen’s compensation Act. The work will be carried out in a protected area and all the rules
and regulations of the client /BHEL in the area of project which are in force from time to time will
have to be followed by the contractor.

2.18.3 If due to negligence and or non-observation of safety and other precautions by the contractors, any
accident/injury occurs to the property / manpower belong to third party, the contractor shall have to
pay necessary compensation and other expense, if so decided by the appropriate authorities.

2.18.4 The contractor will take necessary precautions and due care to protect the material, while in his
custody from any damage/ loss due to theft or otherwise till the same is taken over by BHEL or
customer. For lodging / processing of insurance claim the contractor will submit necessary
documents. BHEL will recover the loss including the deductible franchise from the contractor, in
case the damage / loss is due to carelessness / negligence on the part of the contractor. In case of
any theft of material under contractor's custody, matter shall be reported to police by the contractor
immediately and copy of FIR and subsequently police investigation report shall be submitted to
BHEL for taking up with insurance. However this will not relieve the contractor of his contractual
obligation for the material in his custody.

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2.19 STRIKES & LOCKOUT

2.19.1 The contractor will be fully responsible for all disputes and other issues connected with his labor.
In the event of the contractor’s labor resorting to strike or the Contractor resorting to lockout and if
the strike or lockout declared is not settled within a period of one month, BHEL shall have the right
to get the work executed through any other agencies and the cost so incurred by BHEL shall be
deducted from the Contractor’s bills.

2.19.2 For all purposes whatsoever, the employees of the contractor shall not be deemed to be in the
employment of BHEL

2.20 FORCE MAJEURE

The following shall amount to Force Majeure:-

2.20.1 “Force Majeure” shall mean any event beyond the reasonable control of the parties including but
not limited to fire, flood, earthquake or other acts of God, war, riots, civil war and restraints of
Governing States, as the case may be, and which is unavoidable not withstanding the reasonable
care of the party effected. The following events are explicitly excluded from Force Majeure and are
solely the responsibilities of the non-performing party : a) any strike, work to rule action, go-slow or
similar labour difficulty (b) late delivery of equipment or material (unless caused by Force Majeure
event) (c) economic hardship.

2.20.2 If either party is prevented, hindered or delayed from or in performing any of its obligations under
the contract by an event of Force Majeure, then it shall notify the other in writing of the occurrence
of such event and the circumstances thereof within 15 days (fifteen) days after the occurrence of
such event.

2.20.3 The party who has given such notice shall be excused from the performance or punctual
performance of its obligations under the contract for so long as the relevant event of Force Majeure
continues and to the extent that such parties performance is prevented, hindered or delayed. The
time for completion shall be extended by a period of time equal to period of delay caused due to
such Force Majeure event.

2.20.4 Delay or Non-performance by either party hereto caused by the occurrence of any event of Force
Majeure shall not

 Constitute a default or breach of the Contract.

 Give rise to any claim for damages or additional cost or expense occasioned thereby, if
and to the extent that such delay or non-performance is caused by the occurrence of an
event of Force Majeure.

2.21 ARBITRATION
2.21.1 If any dispute or differences of any kind whatsoever shall arise between BHEL and the Contractor,
arising out of the contract for the performance of the work whether during the progress of
termination, abandonment or breach of contract, it shall in the first place be referred to and settled
by the designated engineer(nominated by BHEL for settlement of the disputes arising out of this
contract) who within a reasonable period after being requested shall give written notice of his
decision to the contractor. Save as hereinafter provided, such decision in respect of every matter

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so referred shall forthwith be given effect to by the contractor who shall proceed with the work with
all due diligence, whether he or BHEL required arbitration as herein after provided or not.

2.21.2 If after the designated engineer has given written notice of this decision to the party, no claim to
arbitration has been communicated to him by the party within 30 days from the receipt of such
notice, the said decision shall become final & binding on the parties. In the event the contractor
being dissatisfied with any such decision or if amicable settlement cannot be reached then all such
disputed issues shall be referred to the sole arbitration of the person appointed by BHEL.

2.21.3 Except as provided elsewhere in this contract, incase amicable settlement is not reached between
the parties, in respect of any dispute or difference; arising out of the formation, breach, termination,
validity or execution of the contract; or, the respective rights and liabilities of the parties; or, in
relation to interpretation of any provision of the contract; or, in any manner touching upon the
contract, then, either party may, by a notice in writing to the other party refer such dispute or
difference to the sole arbitration of an arbitrator appointed by Head of the BHEL PE&SD issuing the
contract. It shall not be open to the contractor to object to such arbitrator only on the ground that
such arbitrator is an employee/ex-employee of BHEL are has dealt with or has expressed any
opinion on any issue touching upon the contract.

The arbitrator shall pass a reasoned award and the award of the arbitrator shall be final and
binding upon the parties.

Subject as aforesaid, the provisions of arbitration and Conciliation Act 1996 (India) or Statutory
modifications or re-enactments thereof and the rules made thereunder and for the time being in
force shall apply to the arbitration proceedings under this clause. The seat of arbitration shall be
Hyderabad (the place from where the contract is issued).

2.21.4 In case of contract with Public sector Enterprise (PSE) or a Government Department, the following
shall be applicable:

In the event of any dispute or difference relating to the interpretation and application of the provisions of
the contract, such dispute or difference shall be refereed by either party for arbitration to the sole
arbitrator in the department of public enterprises to be nominated by the secretary to the Govt. of India
in-charge of the Department of Public Enterprises. The arbitration and Conciliation Act, 1996 shall not
be applicable to arbitration under this clause. The award of the arbitrator shall be binding upon the
parties to the dispute, provided, however, any party aggrieved by such award may make further
reference for setting aside or revision of the award to the Law Secretary, Department of Legal Affairs,
Ministry of Law & Justice, Govt. of India. Upon such reference the dispute shall be decided by the Law
Secretary or the Special Secretary or additional Secretary when so authorized by the Law Secretary,
whose decision shall bind the parties hereto finally and conclusively.

2.21.5 The cost of arbitration shall be borne equally by the Parties.

2.21.6 Notwithstanding existence or any dispute or differences and/or reference for the arbitration, the
contractor shall proceed with and continue without hindrance the performance of its obligations under
this contract with due diligence and expedition in a professional manner.
2.22 RETENTION AMOUNT

2.22.1 Retention Amount shall be 5% of executed contract value and shall be recovered at the rate of 5%
from each Running Bill admitted, including PVC Bills.

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2.22.2 Refund of Retention Amount shall be as follows.

i) 50% of retention amount along with ‘Final Bill’
ii) Balance 50% of retention amount shall be retained towards ‘Performance Guarantee for
Workmanship’ and shall become refundable after expiry of Guarantee period, provided all the
defects noticed during the guarantee period have been rectified to the satisfaction of BHEL
Site Engineer/BHEL Construction Manager, and after deducting all expenses/other amounts
due to BHEL under the contract/other contracts entered into by BHEL with them. This portion
of the retention amount can be released on commencement of the Guarantee Period on
submission of equivalent Bank Guarantee.
2.23 PAYMENTS
Payments to Contractors are made in any one of the following forms

2.23.1 Running Account Bills (RA Bills)

i) These are for interim payments when the contracts are in progress. The bills for such interim
payments are to be prepared by Contractor in prescribed formats (RA Bill forms).
ii) Payments shall be made according to the extent of work done as per measurements taken
up to the end of the calendar month and in line with the terms of payments described in the
Tender documents.
iii) Recoveries on account of electricity, water, statutory deductions, etc are made as per terms
of contract.
iv) Full rates for the work done shall be allowed only if the quantum of work has been done as
per the specifications stipulated in the contract. If the work is not executed as per the
stipulated specifications, BHEL may ask the contractor to re do the work according to the
required specifications, without any extra cost. However, where this is not considered
necessary ‘OR’ where the part work is done due to factors like non-availability of material to
be supplied by BHEL ‘OR’ non availability of fronts ‘OR’ non availability of drawings,
fraction payment against full rate, as is considered reasonable, may be allowed with due
regard for the work remaining to be done. BHEL decision in this regard will be final and
binding on the contractor.
v) In order to facilitate part payment, BHEL Site Engineer at his discretion may further split the
contracted rates/percentages to suit site conditions, cash flow requirements according to the
progress of work.

2.23.2 Final Bill

Final Bill’ is used for final payment on closing of Running Account for works or for single payment
after completion of works. ‘Final Bill’ shall be submitted as per prescribed format after completion
of works as per scope and upon material reconciliation, along with the following.
i) ‘No Claim Certificate’ by contractor
ii) Clearance certificates where ever applicable viz Clearance Certificates from Customer, various
Statutory Authorities like Labor department, PF Authorities, Commercial Tax Department, etc
iii) Indemnity bond as per prescribed format

BHEL shall settle the final bills after deducting all liabilities of Contractor to BHEL
2.24 PERFORMANCE GUARANTEE FOR WORKMANSHIP
2.24.1 Even though the work will be carried out under the supervision of BHEL Engineers the Contractor
will be responsible for the quality of the workmanship and shall guarantee the work done for a
period of twelve months from the date of commencement of guarantee period as defined in
Technical Conditions of Contract, for good workmanship and shall rectify free of cost all defects
due to faulty erection detected during the guarantee period. In the event of the Contractor failing to

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repair the defective works within the time specified by the Engineer, BHEL may proceed to
undertake the repairs of such defective works at the Contractor’s risk and cost, without prejudice to
any other rights and recover the same from the Guarantee money.

2.24.2 BHEL shall release the guarantee money subject to the following
i) Contractor has submitted ‘Final Bill’
ii) Guarantee period as per contract has expired
iii) Contractor has furnished ‘No Claim Certificate’ in specified format
iv) BHEL Site Engineer/Construction Manager has furnished the ‘No Demand Certificate’ in
specified format
v) Contractor has carried out the works required to be carried out by him during the period of
Guarantee and all expenses incurred by BHEL on carrying out such works is included for
adjustment from the Guarantee money refundable.
2.25 CLOSING OF CONTRACTS
The Contract shall be considered completed and closed upon completion of all contractual
obligations and settlement of Final Bill or completion of Guarantee period whichever is later. Upon
closing of Contract, BHEL shall issue a completion certificate as per standard format, based on
specific request of Contractor.
2.26 REVERSE AUCTION:
BHEL reserves the right to go for Reverse Auction for Price Bid Opening by BHEL appointed
service provider, instead of opening the submitted sealed price bid in the conventional way. The
Business Rules for Reverse Auction shall be as per BHEL guidelines issued from time to time.
2.27 SUSPENSION OF BUSINESS DEALINGS
BHEL reserves the right to take action against Contractors who either fail to perform or
Tenderers/Contractor who indulge in malpractices, by suspending business dealings with them in
line with BHEL guidelines issued from time to time.
2.28 OTHER ISSUES
2.28.1 Value of Non judicial Stamp Paper for Bank Guarantees and for Contract Agreement shall be not
less than Rs 200/- unless otherwise required under relevant statutes.
2.28.2 In case of any conflict between the General Conditions of Contract and Special Conditions of
Contract, provisions contained in the Special Conditions of Contract shall prevail.
2.28.3 Unless otherwise specified in NIT, offers from consortium /JVs shall not be considered.
2.28.4 BHEL may not insist for signing of Contract Agreements in respect of low value and short time
period contracts like providing services for Hot water flushing, Chemical Cleaning, Transportation,
etc
2.29 FRAUD POLICY
The bidder along with its associate/ collaborators/ sub-contractors/ sub-vendors/ consultants/
service providers shall strictly adhere to BHEL fraud prevention policy displayed on BHEL website
http://www.bhel.com and shall immediately bring to the notice of BHEL management about any
fraud or suspected fraud as soon as it comes to their notice.
2.30 LOADING CRITERIA
Deviated Penalty: Any loading on penalty clause shall be 10% or to the extent to which it is not
agreed to by the vendor.
Deviated Payment Terms: Deviations on Commercial terms from NIT are generally not
acceptable. In case of deviations from NIT w.r.t. Payment terms, the price will be loaded at Base
rate of SBI (as applicable on the date of bid opening / Techno-commercial bid in case of 2 part
bids) + 6% for the period of relaxation.

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