Contract Practice - Assignment

Submitted by:

Financial conditions for EPC or

Turnkey projects
Clause

Advance payment

Payment of intermediate certificate

Price adjustment/ Escalation

Liquidated damages/ Delay

damages
Retention money / Security
Deposit clause

Extra items of work

Delayed payments

Performance Security
Comparison of clauses

Haarika Reddy K - CPM (Batch 04)

CPWD

Clause 10B
(ii) Mobilisation Advance:
Mobilization advance not exceeding 10% of the tendered value may be given, if requested by the contractor in w
to commence the work. Such advance shall be in two or more installments to be determined by the Engineerin- C
first installment of such advance shall be released by the Engineer-in-charge to the contractor on a request made
in-Charge in this behalf. The second and subsequent installments shall be released by the Engineer-in- Charge o
proof of the satisfactory utilization of the earlier installment to the entire satisfaction of the Engineer-in-Charge. B
released, the contractor shall execute a Bank Guarantee Bonds not more than 6 in number from Scheduled Ban
the amount of advance and valid for the period till recovery of advance.
(iv) The mobilization advance and plant and machinery advance in (ii) & (iii above bear simple interest at the rate
be calculated from the date of payment to the date of recovery, both days inclusive, on the outstanding amount o

Clause 7
Payment of intermediate certificate to be regarded as Advances
The running account bills shall be submitted by the contractor for the work executed on the basis of such record
on the format of the Department in triplicate on or before the date of every month fixed for the same by the Engin
not be entitled to be paid any such interim payment if the gross work done together with net payment/ adjustmen
if any, since the last such payment is less than the amount specified in Schedule ‘F’, in which case the interim bi
date of the month after the requisite progress is achieved. Engineer-in-Charge shall arrange to have the bill verif
contractor to submit the bills, no claims whatsoever due to delays on payment including that of interest shall be p
on account of amount admissible shall be made by the Engineer-in-Charge certifying the sum to which the contra
interim payment at such rates as decided by the Engineer-in-Charge.
Clause 10CA
Payment due to variation in prices of materials after receipt of tender:
If after submission of the tender, the price of materials specified in Schedule F increases/ decreases beyond the
Schedule F for the work, then the amount of the contract shall accordingly be varied and provided further that an
for stipulated period of Contract including the justified period extended under the provisions of Clause 5 of the Co
Clause 2.
However for work done/during the justified period extended as above, it will be limited to indices prevailing at the
completion considering the effect of extra work (extra time to be calculated on pro-rata basis only as cost of extra
cost).If updated stipulated date of completion as calculated on pro- rata basis does not cover full calendar month
restricted to previous month.

Clause 10CC
Payment due to Increase / Decrease in Prices/ages (excluding materials covered under clause 10 CA)after Rece
If the prices of materials (not being materials supplied or services rendered at fixed prices by the department in a
thereof) and/or wages of labour required for execution of the work increase, the contractor shall be compensated
detailed below and the amount of the contract shall accordingly be varied, subject to the condition that such com
and wages shall be available only for the work done during the stipulated period of the contract including the just
provisions of clause 5 of the contract without any action under clause 2. No such compensation shall be payable
period of completion is equal to or less than the time as specified in Schedule F. Such compensation for escalati
labour, when due, shall be worked out based on the given provisions

If the contractor fails to maintain the required progress to complete the work and clear the site on or before the c
completion, he shall,
without prejudice to any other right or remedy available under the law to the Government on
account of such breach, pay as agreed compensation the amount calculated at the rates stipulated
Compensationfor delay of work - @ 1.5 % per month of delay to be computed on per day basis. It
Tendered Value of work or of the Tendered Value
Clause 1A
Recovery of Security Deposit

The person/persons whose tender(s) may be accepted (hereinafter called the contractor) shall permit Governme
payment to him for work done under the contract to deduct a sum at the rate of 2.5% of the gross amount of eac
deducted will amount to security deposit of 2.5% of the tendered value of the work. Such deductions will be mad
Security Deposit unless he/they has/have deposited the amount of Security at the rate mentioned above in cash
Securities or fixed deposit receipts.

The security deposit as deducted can be released against bank guarantee issued by a scheduled bank, on its ac
lac subject to the condition that amount of such bank guarantee, except last one, shall not be less than Rs. 5 lac
bank guarantee including the one given against the earnest money shall be in conformity with provisions contain
Contract.

Performance Guarantee:
(i) The contractor shall submit an irrevocable Performance Guarantee of 5% (Five percent) of the tendered amou
mentioned elsewhere in the contract for his proper performance of the contract agreement, (not withstanding and
provisions in the contract) within period specified in Schedule ‘F’ from the date of issue of letter of acceptance. T
by the Engineer-inCharge up to a maximum period as specified in schedule ‘F’ on written request of the contract
procuring the Performance Guarantee, to the satisfaction of the Engineer-in-Charge.
(ii) The Performance Guarantee shall be initially valid up to the stipulated date of completion plus minimum 60 da
submitted by the agency on scheduled format I as per GCC. If the same is submitted on the format II as per GC
shall be valid up to the stipulated date of completion plus minimum 6 months beyond that.
MORTH

Ref 19.2 :: The Authority shall make an interest-free advance payment (the “Advance
Payment”), equal in amount to 10 (ten) percent of the Contract Price, for mobilisation expenses and for acquisitio
Advance
Payment shall be made in three instalments. The first instalment shall be an amount equal to 2% (two percent) o
the second instalment shall be equal to 3% (three percent) of the Contract Price, and the third instalment shall be
percent) of the Contract Price.
Such advance installment shall be released upon submission of irrevocable and unconditional guarantee from a
equivalent to 110% (one hundred and ten per cent) of such instalment shall be submitted by the Contractor.

19.3.1 The Authority shall make interim payments to the Contractor as certified by the Authority’s Engineer on co
a length, number or area as specified, and valued in accordance with the proportion of the Contract Price assign
stage in Schedule-H
19.3.2 The Contractor shall base its claim for interim payment for the stages completed till the end of the month f
is claimed, valued in accordance with Clause 19.3 (i), supported with necessary particulars and documents in ac
Agreement. (i) Within 10 (ten) days of receipt of the Stage Payment Statement from the Contractor

Milestone based payment: Works have been divided into four categories, namely, road works, major bridges, str
works. Each item of work has been further sub-divided into stages and payment will be made for each completed
19.10.4
The Contract Price shall be adjusted for increase or decrease in rates and price of labour, cement, steel, Plant, m
bitumen, fuel and lubricants, and other material inputs in accordance with the principles, procedures and formula
(a) Price adjustment shall be applied on completion of the specified stage of the respective item of work in accor
H;
(b) Adjustment for each item of work/stage shall be made separately.
(c) The following expressions and meanings are assigned to the value of the work done:
RW= Value of work done for the completion of a stage under the following items of Schedule-H:
(i) Road works; and (ii) Other works
BR = Value of work done for the completion of a stage under the items Major Bridges and Structures (Schedule-
(d) Price adjustment for changes in cost shall be paid in accordance with the following formulae:
(i) VRW= 0.85 RW x [PL x (LI – LO)/LO + PA x (AI – AO)/AO + PF x (FI –FO)/FO + PB x (BI – BO)/BO + PM x (M
(CI – CO)/CO+ PS x (SI – SO)/SO]
(ii) VBR = 0.85 BR x [PL x (LI – LO)/LO + PA x (AI – AO)/AO + PF x (FI –FO)/FO + PM x (MI – MO)/MO+ PC x (
(SI – SO)/SO ]

Calculated at the rate of 0.02% (zero point zero two percent) of the Contract Price for delay of each day reckone
specified and until such Project Milestone is achieved or the Project Highway is completed; provided that if the pe
Project Milestones or the Scheduled Completion Date is extended in accordance with the provisions of the Agree
7.5.1 From every payment for Works due to the Contractor in accordance with the provisions of Clause 19.5, the
6% (six per cent) thereof as guarantee money for performance of the obligations of the Contractor during the Co
“Retention Money”) subject to the condition that the maximum amount of Retention Money shall not exceed 5% (
Contract Price.

7.5.3 The Contractor may, upon furnishing an irrevocable and unconditional bank guarantee substantially in the f
Annex-II of Schedule-G, require the Authority to refund the Retention Money deducted by the Authority under the
7.5.1. Provided that the refund hereunder shall be made in tranches of not less than 1% (one per cent) of the Co

13.3 Payment for Change of Scope

Payment for Change of Scope shall be made in accordance with the payment schedule specified in the Change

13.4.2 Unless the Parties mutually agree to the contrary, the total value of all Change of Scope Orders shall not
cent of the Contract Price.

27.3 payments due from one Party to the other Party under the provisions of this Agreement shall be made withi
therein, and if no such period is specified, within 30 (thirty) days of receiving a demand along with the necessary
event of delay beyond such period, the defaulting Party shall pay interest for the period of delay calculated at a r
plus 2 (two) percent, calculated at quarterly rests, and recovery thereof shall be without prejudice to the rights of
Agreement including Termination thereof.

7.1.1 The Contractor shall, for the performance of its obligations hereunder during the Construction Period, provi
within 10 (ten) days of the date of this Agreement, an irrevocable and unconditional guarantee from a Bank in the
Schedule-G (the “Performance Security”) for an amount equal to 7.5% (seven and half percent) of the Contract P
Performance Security shall be valid until 60 (sixty) days after the Defects Liability Period. Until such time the Pe
provided by the Contractor pursuant hereto and the same comes into effect, the Bid Security shall remain in forc
such provision of the Performance Security, the Authority shall release the Bid Security to the Contractor. For th
the parties expressly agree that the Contractor shall provide, no later than 30 (thirty) days prior to the expiry of th
Security for the defects Liability Period specified in Clause 17.1.1, a Performance Security in respect of the exten
Period specified in Clause 17.1.2 for an amount equal to 5% (five per cent) of the estimated cost of Structures an
specified therein.
NBCC

1) First Installment of fifty percent of total mobilisation advance shall be paid after the agreement is signed and u
submission of performance guarantee. 2) 2nd installment of twenty five percent of total mobilisation advance will
the setting up of site office and facilities to NBCC as per contract, completion of mobilization of plant and machin
scaffolding & shuttering materials etc. 3) The Balance twenty five percent of total mobilisation advance shall be p
completion of 10% of work in terms of cost and after the contractor has fully mobilized the work at site.

The bill shall be submitted by contractor each month on or before the date fixed by the Engineerin-Charge for all
executed in previous months. The contractor shall prepare computerized bills using the program as approved by
Charge as per prescribed format/ pro-forma. The Contractor shall submit five numbers of hard copies and one so
floppy/ CD for all bills. the payment due to the contractor shall be made within fifteen days of getting the measure
verified from the Engineer-in-Charge or his subordinate/ representative and certification of bill by the Engineer-in
No claim on account of any escalation on whatsoever ground shall be entertained at any stage of works. All rates
Quantities (BOQ) quoted by contractor shall be firm and fixed for entire contract period as well as extended perio
completion applicable on this contract.

If the contractor fails to maintain the required progress in terms of clause 16.0 or relevant clause of GCC & Spec
of contract to complete the work and clear the site on or before the contract or extended date of completion, he s
prejudice to any other right or remedy available under the law to the NBCC on account of such breach, pay as ag
compensation the amount calculated at the rates stipulated below(plus GST extra) as the Engineer in charge (wh
in writing shall be final and binding) may decide on the amount of tendered value of the work for every completed
that the progress remains below that specified in Clause 16.0 or the relevant clause in GCC & Special Conditions
or that the work remains incomplete. This will also apply to items or group of items for which a separate period o
has been specified

i) Compensation for delay of work @ 0.5% per week

Provided always that the total amount of compensation for delay to be paid
Condition shall not exceed 10% of the Tendered Value of work (exclusive of GST)or of the Tendered Value of th
group of items of work (exclusive of GST)for which a separate period of completion is originally given. The amou
compensation may be adjusted or set sum payable to the Contractor under this or any other contract with NBCC
In case, the contractor does not achieve a particular milestone mentioned elsewhere in the tender document or t
amount shown against that milestone shall be withheld, to be adjusted against the compensation levied at the fin
Extension of Time. With-holding of this amount or failure to achieve a milestone, shall be automatic without any n
Contractor. However, if the contractor catches up with the progress of work on the subsequent milestone(s), the
amount shall be released. In case the contractor fails to make up for the delay in subsequent milestone missed s
also shall be withheld. However, no whatsoever, shall be payable on such withheld amount.
The Security deposit or the retention money shall be deducted from each
running/ final bill of the contractor @
gross value of the Running Account
If the amount of Security Deposit deducted in cash is more than Rs.10.00
lakhs (Rupees Ten lakhs only) in case of contract value mor
Crore, Rs.5 lakhs in case of contract value up to.
amount beyond Rs. 10 Lakhs or 5 lakhs (as the case may be) can be
by the contractor by submission of Bank Guarantee
of NBCC or Fixed Deposit Receipt (FDR) pledged in favour of NBCC (India)
Limited of equivalent amount from any Nationalized Bank or all Commercial
Scheduled Bank. The Bank Guarantee/ FDR shall be initially
months beyond the stipulated defect liabili
completion of works gets enlarged, the contractor shall get the validity of bank
Guarantee/ FDR extended to cover such enlarged time for completion of work
FIDIC

The Employer shall make an advance payment, as an interest-free loan for

mobilisation, when the Contractor submits a guarantee in accordance with this Sub- Clause. The total advance p
number and timing of instalments (if more than one), and the applicable currencies and proportions, shall be as s
Contract Data.
Unless and until the Employer receives this guarantee, or if the total advance payment is not stated in the Contra
Sub-Clause shall not apply.

The contractor shall pay to nominated subcontractor the amount which engineer certifies to be due in accordanc
subcontract. This amount plus other charges shall be included in contract.
As per subclause stated as Table of Adjustment Data, means the completed table of adjustment data for local an
foreigncurrencies included in schedule. If there is no such table of adjustment data, this clause shall not apply.

If the Contractor fails to comply maintain the required progress of the project , Contractor shall subject to pay de
damages to the Employer for this default. These delay damages shall be the sum stated in the Contract Data, wh
paid for every day which shall elapse between the relevant Time for Completion and the date stated in the Takin
Certificate. However, the total amount due under this Sub-Clause shall not exceed the maximum amount of dela
(if any) stated in the Contract Data. These delay damages shall be the only damages due from the Contractor fo
default, other than in the event of termination as per the emplyer clause, prior to completion of the Works. These
shall not relieve the Contractor from his obligation to complete the Works, or from any other duties, obligations o
responsibilities which he may have under the Contract
Amount to be calculated as percentae of retention from RA bill, as stated in contraact data.
DDA

An advance for plant, machinery & shuttering material required for the work and brought to site
by the Contractor may be given if requested by the contractor in writing within one month of
bringing such plant and machinery to site. Such advance
shall be given on such plant and machinery, which in the opinion of the Engineer-in- Charge will
add to the expeditious execution of work and improve the quality of work. The amount of
advance shall be restricted to 5% percent of the tender value. In the case of new plant and
equipment to be purchased for the work, the advance
shall be restricted to 90% of the price of such new plant and equipment paid by the contractor for
which the contractor shall produce evidence satisfactory to the Engineer- in-Charge. In the case
of second hand and used plants and equipment, theamount of such advance shall be limited to
50% of the depreciated value of plant and equipment as may be decided by the Engineer-in-
Charge. The contractor shall, if so required by the Engineer-in-Charge, submit the statement of
value of such old plant
and equipment duly approved by a Registered Valuer recognized by the Central Board of Direct
Taxes under the Income-Tax Act, 1961. No such advance shall be paid on any plant and
equipment of perishable nature and on any plant and equipment of a value less than Rs.50,000/-
Seventy five percent of such amount of advance shall be paid after the plant & equipment is
brought to site and balance twenty five percent on
successfully commissioning the same.

Monthly payment to the contractor will be made when gross amount of the work
done during the previous month is not less than Rs. 5 lacs.
If after submission of the tender, the prices of materials specified in Schedule ‘F’ increase/
decreases beyond the price(s) prevailing at that time of the last stipulated date
for receipt of tenders (including extensions, if any) for the work, then the amount of
the contract shall accordingly be varied and provided further that any such variations
shall be effected for stipulated period of contract including the justified period extended
under the provisions of Clause 5 of the contract without any action under
Clause 2.
However for work done/ during the justified period extended as above, it will be limited
to indices prevailing at the time of updated stipulated date of completion considering
the effect of extra work ( to be calculated on pro-rata basis as cost of extra
work X stipulated period / tendered cost).

If the contractor fails to maintain the required progress or to complete

the work and clear the site on or before the contract or extended date of completion,
he shall, without prejudice to any other right or remedy available under the law
to the DDA on account of such breach, pay as agreed compensation @ 1.5% per month of delay
to be for delay of work computed on per
day basis Provided always that the total amount of compensation for delay to be paid under this
Condition shall not exceed 10% of the Tendered Value of work or of the Tendered
Value of the item or group of items of work for which a separate period of completion
is originally given.
For all works the Security Deposit shall be 5% of the tender amount from the acceptance of LOA
 Adults Kids Teens
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Mann Badminton team 10 4
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Haarika Suneetha 2 1
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Supriya 2 1 5 5
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Colony Padma aunty 4 1

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120 36 18 -24