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Subletting of Contract

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0% found this document useful (0 votes)
348 views3 pages

Subletting of Contract

Uploaded by

b.sairitesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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GCC September 2019

thereof. The Contractor shall be bound to give all notices required by statute, regulations or
bye-laws as aforesaid and to pay all fees and taxes payable to any authority in respect thereof.

4. Communications to be in Writing: All notices, communications, reference and


complaints made by the Railway or the Engineer or the Engineer's Representative or the
Contractor inter-se concerning the works shall be in writing or e-mail on registered e-mail IDs
and no notice, communication, reference or complaint not in writing or through e-mail, shall
be recognized.

5. Service of Notices on Contractors: The Contractor shall furnish to the Engineer the
name, designation and address of his authorized agent and all complaints, notices,
communications and references shall be deemed to have been duly given to the Contractor, if
delivered to the Contractor or his authorized agent or left at or posted to the address so given
and shall be deemed to have been so given in the case of posting on day on which they would
have reached such address in the ordinary course of post or on the day on which they were so
delivered or left. In the case of contract by partners, any change in the constitution of the firm
shall be forthwith notified by the Contractor to the Engineer.

6. Occupation and Use of Land: No land belonging to or in the possession of the


Railway shall be occupied by the Contractor without the permission of the Railway. The
Contractor shall not use, or allow to be used the site for any purposes other than that of
executing the works. Whenever non-railway bodies/persons are permitted to use railway
premises with competent authority’s approval, conservancy charges as applicable from time to
time may be levied.

7. Assignment or Subletting of Contract: The Contractor shall not assign or sublet the
contract or any part thereof or allow any person to become interested therein in any manner
whatsoever without the special permission in writing of the Chief Engineer, save as provided
below. Any breach of this condition shall entitle the Railway to rescind the contract under
Clause 62 of these Conditions and also render the Contractor liable for payment to the Railway
in respect of any loss or damage arising or ensuing from such cancellation; provided always
that execution of the details of the work by petty Contractor under the direct and personal
supervision of the Contractor or his agent shall not be deemed to be sub-letting under this
clause.

In case Contractor intends to subcontract part of work, he shall submit a proposal in writing
seeking permission of Chief Engineer for the same. While submitting the proposal to railway,
Contractor shall ensure the following:

(a) (i) Total value of work to be assigned to sub-contractor(s) shall not be more than 50%
of total contract value.

(ii)The subcontractor shall have successfully completed at least one work similar to
work proposed for subcontract, costing not less than 35% value of work to be

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GCC September 2019

subletted, in last 5 years through a works contract directly given to him by a Govt.
Department; or by a Public listed company having average annual turnover of
Rs 500 crore and above in last 3 financial years excluding the current financial year,
listed on National Stock Exchange or Bombay Stock Exchange, registered at least
5 years back from the date of submission of proposal by Contractor to Railway and
work experience certificate issued by a person authorised by the Public Listed
Company to issue such certificates.

In case contractor submits subcontractor’s work experience certificate issued by public


listed company, the contractor shall also submit along with work experience
certificate, the relevant copy of work order, bill of quantities, bill wise details of
payment received duly certified by Chartered Accountant, TDS certificates for all
payments received and copy of final/last bill paid by company in support of above
work experience certificate.

(iii)There is no banning of business with the sub-contractor in force over IR.

(b) The Contractor shall provide to the Engineer a copy of the agreement to be entered
into by Contractor with subcontractor. No subcontractor shall be permitted without a
formal agreement between Contractor and subcontractor. This agreement shall clearly
define the scope of work to be carried out by subcontractor and the terms of payment
in clear & unambiguous manner.

(c) On receipt of approval from Chief Engineer, Contractor shall enter into a formal
agreement legally enforceable in Court of Law with subcontractor and submit a copy
of the same to the Engineer.

(d) The Contractor shall intimate to the Engineer not less than 7 days in advance, the
intended date of commencement of subcontractor’s work.

(e) Once having entered into above arrangement, Contractor shall discontinue such
arrangement, if he intends to do so at his own or on the instructions of Railway, with
prior intimation to Chief Engineer.

(f) The Contractor shall indemnify railway against any claim of subcontractor.

(g) The Contractor shall endeavour to resolve all matters and payments amicably and
speedily with the subcontractor.

(h) In addition to issuance of work experience certificate to Contractor, the Engineer,


when, based on documents, is satisfied that subcontracted work has been carried out
by subcontractor, shall issue work experience certificate to the subcontractor also for
the portion of work subcontracted and successfully completed by the sub-contractor.

(i) The responsibility of successful completion of work by subcontractor shall lie with
Contractor. Subcontracting will in no way relieve the Contractor to execute the work
as per terms of the Contract.

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GCC September 2019

(j) Further, in case Engineer is of the view that subcontractor’s performance is not
satisfactory, he may instruct the Contractor to remove the subcontractor from the work
and Contractor has to comply with the above instructions with due promptness.
Contractor shall intimate the actual date of discontinuation of subcontract to Engineer.
No claim of Contractor whatsoever on this account shall be entertained by the Railway
and this shall be deemed as ‘excepted matter’ (matter not arbitrable).

(k) The permitted subcontracting of work by the Contractor shall not establish any
contractual relationship between the sub-contractor and the Railway and shall not
relieve the Contractor of any responsibility under the Contract.

8. Assistance by Railway for the Stores to be obtained by the Contractor: Owing to


difficulty in obtaining certain materials (including Tools & Plant) in the market, the Railway
may have agreed without any liability therefore to endeavour to obtain or assist the Contractor
in obtaining the required quantities of such materials as may be specified in the Tender. In the
event of delay or failure in obtaining the required quantities of the aforesaid material, the
Contractor shall not be deemed absolved of his own responsibility and shall keep in touch with
the day to day position regarding their availability and accordingly adjust progress of works
including employment of labour and the Railway shall not in any way be liable for the supply
of materials or for the non-supply thereof for any reasons whatsoever nor for any loss or
damage arising in consequence of such delay or non-supply.

9. Railway Passes: No free railway passes shall be issued by the Railway to the
Contractor or any of his employee/worker.

10. Carriage of Materials: No forwarding orders shall be issued by the Railway for the
conveyance of Contractor's materials, tools and plant by train which may be required for use in
the works and the Contractor shall pay full freight charges at public tariff rates therefor.

11. Use of Ballast Trains: The Railway may agree to allow the Contractor use of the
ballast or material trains under such conditions as shall be specially prescribed, provided that
the Contractor shall pay for the use thereof charges calculated at public tariff rates on the
marked carrying capacity of each vehicle subject to specified minimum charge per day or part
of day and provided further that the Contractor shall indemnify the Railway against any claims
or damages arising out of the use or misuse thereof and against any liabilities under the
Workmen's Compensation Act, 1923 or any statutory amendments thereto.

12. Representation on Works: The Contractor shall, when he is not personally present
on the site of the works place, keep a responsible agent at the works during working hours who
shall on receiving reasonable notice, present himself to the Engineer and orders given by the
Engineer or the Engineer's representative to the agent shall be deemed to have the same force
as if they had been given to the Contractor. Before absenting himself, the Contractor shall
furnish the name and address of his agent for the purpose of this clause and failure on the part
39

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