Signature Not

Verified
Digitally signed by
Sanjay Yadav
Date: 2020.10.05
12:58:41 IST
Reason: IREPS-CRIS
Location: New Delhi
 Government of India
Ministry Of Railways
(Railway Board)

Indian Railways
Standard
General Conditions of Contract

GCC July 2020

New Delhi

Engineering Department
GCC July 2020

Indian Railways
STANDARD GENERAL CONDITIONS OF CONTRACT
INDEX
PART - I
REGULATIONS FOR TENDERS AND CONTRACTS

Clause Subject Page

Index (i) to (vi)
1. Meaning of Terms 1
1.0 Applicability 1
1.01 Order of Precedence of Documents 1
1.1 Interpretation 2
1.2 Definition 2
1.3 Singular And Plural 3
Credentials of Contractors 3
2. Application for Registration 3
Tenders for Works 4
3. Tender Forms 4
4. Omissions and Discrepancies 4
5. Earnest Money 4
6. Care in Submission of Tenders 5
Consideration of Tenders 7
7. Right of Railway to Deal with Tenders 7
7A. Two Packets System of Tendering 7
Contract Documents 7
8. Execution of Contract Documents 7
9. Form of Contract Documents 7
Annexures :
Annexure-I Tender Form : 8
First Sheet 8
Second Sheet 10
Third Sheet 28
Annexure-II Agreement for Zone Contract 29
Annexure-III Work Order Under Zone Contract 31
Annexure-IV Form for Contract Agreement Of Works 33
Annexure-V Format for Affidavit to be submitted / Uploaded 34
by Tenderer alongwith the tender documents
Annexure-VI Tenderer’s Credentials (Bid Capacity) 36
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PART - II
STANDARD GENERAL CONDITIONS OF CONTRACT

Para Subject Page

1. Definitions And Interpretation 37
(1) Definitions 37
(2) Singular and Plural 39
(3) Headings and Marginal Headings 39
General Obligations 39
2. Execution, Co-Relation and Intent of Contract Documents 39
3. (1) Law Governing the Contract 39
(2) Compliance to Regulations and Bye-Laws 39
4. Communication to be in Writing 40
5. Service of Notices on Contractors 40
6. Occupation and Use of Land 40
7. Assignment or Subletting of Contract 40
8. Assistance by Railway for the Stores to be Obtained by the Contractor 42
9. Railway Passes 42
10. Carriage of Materials 42
11. Use of Ballast Train 42
12. Representation on Works 42
13 Relics and Treasures 43
14. Excavated Material 43
15. Indemnity by Contractors 43
16. (1) Security Deposit 43
(2) Refund of Security Deposit 44
(3) Interest on Amount 44
(4) Performance Guarantee 44
17. Force Majeure Clause 46
17-A. Extension of Time in Contracts 46
(i) Extension due to Modification 46
(ii) Extension for Delay not due to Railway or Contractor 46
(iii) Extension for Delay due to Railways 46
17B. Extension of Time for Delay due to Contractor 47
17 C Bonus for Early Completion of Work 48
18. Illegal Gratification 48
Execution Of Works 49
19. (1) Contractor's Understanding 49
(2) Commencement of Works 49

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(3) Accepted Programme of Works 49

(4) Setting out of Works 50
20. (1) Compliance to Engineer's Instructions 50
(2) Alterations to be Authorised 50
(3) Extra Works 50
(4) Separate Contracts in Connection with Works 50
21. Instructions of Engineer's Representative 51
22. (1) Adherence to Specification and Drawings 51
(2) Drawings and Specifications of the Works 51
(3) Ownership of Drawings and Specifications 51
(4) Compliance with Contractor's Request for Details 51
(5) Meaning and Intent of Specifications and Drawings 51
23. Working During Night 51
24. Damage to Railway Property or Private Life and Property 52
25. Sheds, Stores-Houses and Yards 52
26. Provision of Efficient and Competent Staff at Work Sites by the 52
Contractor
26A. Deployment of Qualified Engineers at Work Sites by the Contractor 53
27. (1) Workmanship and Testing 53
(2) Removal of Improper Work and Materials 53
28. Facilities for Inspection 54
29. Examination of Works before Covering up 54
30. Temporary Works 54
31. (1) Contractor to Supply Water for Works 54
(2) Water Supply from Railway System 55
(3) Water Supply by Railway Transport 55
(4) (A) Contractor to Arrange Supply of Electric Power for Works 55
(B) Electric Supply from the Railway System 55
32. Property in Materials and Plants 55
33. (1) Tools, Plant and Materials Supplied by Railway 56
(2) Hire of Railway’s Plant 56
34. (1) Precautions During Progress of Works 56
(2) Roads and Water Courses 56
(3) Provision of Access to Premises 56
(4) Safety of Public 56
(5) Display Board 57
35. Use Of Explosives 57
36. Suspension of Works 57
Suspension Lasting More Than Three Months 58
37. Rates for Items of Works 58

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38. Demurrage and Wharfage Dues 59

39. Rates for Extra Items of Works 59
40. (1) Handing over of Works 60
(2) Clearance of Site on Completion 60
40A 2% off loading of work 60
Variations in Extent of Contract 61
41. Modification to Contract to be in Writing 61
42. Power of Modifications to Contract 61
Valuation of Variations 62
43. Claims 62
(1) Quarterly Statement of Claims 62
(2) Signing of ’No Claim Certificate’ 62
Measurement, Certificates and Payments 63
44. Quantities in Schedule Annexed to Contract 63
45. Measurements of Works 63
46. (1) "On Account” Payments 64
(2) Rounding off Amounts 65
(3) "On Account” Payments not Prejudicial to Final Settlement 65
(4) Manner of Payment 65
46A. Price Variation Clause (PVC) 65
47. Maintenance of Works 70
48. (1) Certificate of Completion of Works 71
(2) Contractor not Absolved by Completion Certificate 71
(3) Final Supplementry Agreement 71
49. Approval only by Maintenance Certificate 72
50. (1) Maintenance Certificate 72
(2) Cessation of Railway’s Liability 72
(3) Unfulfilled Obligations 72
51. (1) Final Payment 72
(2) Post Payment Audit 73
51-A. Production of Vouchers etc. by the Contractor 73
52. Withholding and Lien in Respect of Sums Claimed 73
52-A. Lien in Respect of Claims in other Contracts 74
53. Signature on Receipts for Amounts 75
Labour 75
54. Wages to Labour 75
54-A. Apprentices Act 75
55. Provisions of Payments of Wages Act 76

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55-A. Provisions of Contract Labour (Regulation and Abolition) Act, 1970 76

55-B. Provisions of Employees Provident Fund and Miscellaneous Provisions 77
Act, 1952
55-C. Shramikkalyan Portal 77
55-D. Provisions of “The Building and Other Construction Workers (RECS) Act, 78
1996” and “The Building and Other Construction Workers’ Welfare Cess
Act, 1996” :
56. Reporting of Accidents 78
57. Provision of Workmen's Compensation Act 78
57-A. Provision of Mines Act 79
58. Railway not to Provide Quarters for Contractors 79
59. (1) Labour Camps 79
(2) Compliance to Rules for Employment of Labour 79
(3) Preservation of Peace 79
(4) Sanitary Arrangements 79
(5) Outbreak of Infectious Diseases 80
(6) Treatment of Contractor's Staff in Railway Hospitals 80
(7) Medical Facilities at Site 80
(8) Use of intoxicants 80
(9) Restriction on the Employment of Retired Engineers of Govt. 80
Services within One Year of their Retirement
60. (1) Non-Employment of Labourers below the age of 15 Years 81
(2) Medical Certificate of Fitness for Labour 81
(3) Period of Validity of Medical Fitness Certificate 81
(4) Medical Re-Examination of Labourer 81
Determination of Contract 82
61. (1) Right of Railway to Determine the Contract 82
(2) Payment on Determination of Contract 82
(3) No Claim on Compensation 82
62. (1) Determination of Contract owing to Default of Contractor 82
(2) Right of Railway after Rescission of Contract owing to Default of 83
Contractor
Settlement of Disputes 85
63. Conciliation of Disputes 85
(1) Matters finally Determined by the Railway 85
64. (1) Demand for Arbitration 85
(2) Obligations During Pendency of Arbitration 86
(3) Appointment of Arbitrator 87
(4), (5), (6) & (7) - Arbitral Award & General 90

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Annexures :
Annexure-VII Proforma for Time Extension 91
Annexure-VIII Certificate of Fitness 92
Annexure-IX Proforma of 7 Days’ Notice 93
Annexure-X Proforma of 48 Hrs. Notice 94
Annexure-XI Proforma of Termination Notice 95
Annexure-XII Proforma of 48 Hrs. Notice (Part Termination) 96
Annexure-XIII Proforma of termination Notice (Part Termination) 97
Annexure-XIV Final Supplementary Agreement 98
Annexure-XV Agreement towards Waiver Under Section 12(5) and 100
Section 31(A)(5) of Arbitration and Conciliation (Amendment) Act
Annexure-XVI Certification by Arbitrators appointed under Clause 63 & 101
64 of Indian Railways General Conditions of Contract

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PART I

REGULATIONS FOR TENDERS AND CONTRACTS

FOR THE GUIDANCE OF ENGINEERS & CONTRACTORS FOR WORKS

CONTRACTS

MEANING OF TERMS

1.0 Applicability: These conditions of contract shall be applicable for all the tenders and
contracts of railways for execution of works as defined in GFR 2017.

1.01 Order of Precedence of Documents: In a tender/contract, in case of any difference,

contradiction, discrepancy, with regard to conditions of tender/contract, specifications,
drawings, bill of quantities etc., forming part of the tender/contract, the following shall be the
order of precedence:

i. Letter of Award

ii. Schedule of Items, Rates & Quantities

iii. Special Conditions of Contract

iv. Technical Specifications as given in tender documents

v. Drawings

vi. Indian Railways Standard General Conditions of Contract updated with correction slips
issued up to date of inviting tender or as otherwise specified in the tender documents.

vii. CPWD Specifications 2019 Vol I & II updated with correction slips issued up to date
of inviting tender or as otherwise specified in the tender documents, if applicable in the
contract.

viii. Indian Railways Unified Standard Specification (IRUSS-2019) updated with

correction slips issued up to date of inviting tender or as otherwise specified in the tender
documents, if applicable in the contract.

ix. Indian Railways Unified Standard Specifications (Works and Material) 2010 updated
with correction slips issued up to date of inviting tender or as otherwise specified in the
tender documents, if applicable in the contract.

x. IR Specifications/Guidelines updated with correction slips issued up to date of inviting

tender or as otherwise specified in the tender documents.

xi. Relevant B.I.S. Codes updated with correction slips issued up to date of inviting tender
or as otherwise specified in the tender documents.

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1.1 Interpretation: These Regulations for Tenders and Contracts shall be read in
conjunction with the Standard General Conditions of Contract which are referred to herein and
shall be subject to modifications additions or suppression by Special Conditions of Contract
and/or Special Specifications, if any, annexed to the Tender Forms.

1.2 Definition: In these Regulations for Tenders and Contracts the following terms shall
have the meanings assigned hereunder except where the context otherwise requires:

(a) “Railway” shall mean the President of the Republic of India or the administrative officers
of the Railway or Successor Railway authorized to deal with any matter, which these presents
are concerned on his behalf.

(b) “General Manager” shall mean the Officer-in-Charge of the general superintendence and
control of the Zonal Railway/Production Unit and shall also include Addl. General Manager,
General Manager (Construction) and shall mean and include their successors of the Successor
Railway.

(c) “Chief Engineer” shall mean the Officer-in-Charge of the Engineering Department of
Railway and shall also include Chief Engineer (Construction), Chief Electrical Engineer, Chief
Electrical Engineer (Construction), Chief Signal & Telecom Engineer, Chief Signal &
Telecom Engineer (Construction), Chief Mechanical Engineer and shall mean and include their
successors of the Successor Railway.

(d) “Divisional Railway Manager” shall mean the Officer-in-Charge of a Division of Zonal
Railway and shall mean and include Divisional Railway Manager of the Successor Railway.

(e) “Engineer” shall mean the Divisional Engineer or Executive Engineer, Divisional Signal &
Telecom Engineer, Divisional Electrical Engineer, Divisional Mechanical Engineer in
executive charge of the works and shall include the superior officers, both Open Line and
Construction Organisations, of Engineering, Signal & Telecom, Mechanical and Electrical
Departments, i.e. the Senior Divisional Engineer/Deputy Chief Engineer, Senior Divisional
Signal & Telecom Engineer / Dy. Chief Signal & Telecom Engineer, Senior Divisional
Electrical Engineer / Deputy Chief Electrical Engineer, Senior Divisional Mechanical
Engineer and shall mean & include the Engineers of the Successor Railway.

(f) “Tenderer” shall mean the person / firm / co-operative or company whether incorporated or
not who tenders for the works with a view to execute the works on contract with the Railway
and shall include their representatives, successors and permitted assigns.

(g) “Limited Tenders” shall mean tenders invited from all or some contractors on the approved
or select list of contractors with the Railway.

(h) “Open Tenders” shall mean the tenders invited in open and public manner and with
adequate notice.

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(i) “Works” shall mean the works contemplated in the drawings and schedules set forth in the
tender forms and required to be executed according to the specifications.

(j) “Specifications” shall mean the Specifications for Materials and Works of the Railway as
specified under the authority of the Ministry of Railways or Chief Engineer or as amplified,
added to or superseded by special specifications if any, appended to the Tender Forms.

(k) “Schedule of Rates of the Railway” shall mean the Schedule of Rates issued under the
authority of the Chief Engineer from time to time.

(l) “Drawings” shall mean the maps, drawings, plans and tracings, or prints thereof annexed
to the Tender Forms.

(m) “Contractor’s authorized Engineer” shall mean a graduate engineer or equivalent, having
more than 3 years experience in the relevant field of construction work involved in the
contract, duly approved by the Engineer.

(n) Date of inviting tender shall be the date of publishing tender notice on IREPS website if
tender is published on website or the date of publication in newspaper in case tender is not
published on website.

1.3 Words importing the singular number shall also include the plural and vice versa where
the context requires.

CREDENTIALS OF CONTRACTORS

2. Application for Registration:

2.1 Works of construction and of supply of material shall be entrusted for execution to
contractors whose capabilities and financial status have been investigated and approved to the
satisfaction of the Railway. A list of approved contractors shall be maintained in the Railway.
The said list be revised periodically once in a year or so by giving wide publicity through
advertisements etc. A contractor including a contractor who is already on the approved list
shall apply to the concerned General Manager (Construction) / Chief Administrative Officer
(Construction) / Principal Chief Engineer / Principal Chief Signal & Telecommunication
Engineer / Principal Chief Mechanical Engineer / Principal Chief Electrical Engineer /
Divisional Railway Manager, furnishing particulars regarding:

(a) his position as an independent contractor specifying engineering organization available

with details of partners / staff / engineers employed with qualifications and experience;

(b) his capacity to undertake and carry out works satisfactorily as vouched for by a responsible
official or firm; details about the transport equipments, construction tools and plants etc.
required for the work, maintained by him;

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(c) his previous experience of works similar to that to be contracted for, in proof of which
original certificates or testimonials may be called for and their genuineness verified, if needs
be, by reference to the signatories thereof;

(d) his knowledge from actual personal investigation of the resources of the area/zone or zones
in which he offers to work;

(e) his ability to supervise the work personally or by competent and duly authorized agent;

(f) his financial position;

2.2 An applicant shall clearly state the categories of works and the
area/zone/division(s)/district(s) in which he desires registration in the list of approved
contractors.

2.3 The selection of contractors for enlistment in the approved list would be done by a
committee for different value of slabs as notified by Railway.

2.4 An annual fee as prescribed by the Railway from time to time would be charged from
such approved contractors to cover the cost of sending notices to them and clerkage for tenders
etc. Notices shall be sent to them on registered e-mail address and registered postal address.

TENDERS FOR WORKS

3. Tender Form: Tender Forms shall embody the contents of the contract documents
either directly or by reference and shall be as per specimen form, Annexure-I. e-Tender Forms
shall be issued free of cost to all tenderers.

4. Omissions & Discrepancies: Should a tenderer find discrepancies in or omissions from

the drawings or any of the Tender Forms or should he be in doubt as to their meaning, he
should at once notify the authority inviting tenders. The tender inviting authority may, if
deemed necessary, clarify the same to all tenderers. It shall be understood that every endeavour
has been made to avoid any error which can materially affect the basis of tender and successful
tenderer shall take upon himself and provide for the risk of any error which may subsequently
be discovered and shall make no subsequent claim on account thereof.

5. Earnest Money:

(1) (a) The tenderer shall be required to deposit earnest money with the tender
for the due performance with the stipulation to keep the offer open till such date as
specified in the tender, under the conditions of tender. The earnest money shall be
as under:

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Value of the Work Earnest Money Deposit (EMD)

For works estimated to 2% of the estimated cost of the work

cost up to ₹ 1 crore

For works estimated to ₹ 2 lakh plus ½% (half percent) of the excess of

cost more than ₹ 1 crore the estimated cost of work beyond ₹ 1 crore
subject to a maximum of ₹ 1 crore
Note:

(i) The earnest money shall be rounded off to the nearest ₹100. This earnest
money shall be applicable for all modes of tendering.
(ii) Any firm recognized by Department of Industrial Policy and Promotion
(DIPP) as ‘Startups’ shall be exempted from payment of earnest money
deposit detailed above.
(iii) 100% Govt. owned PSUs shall be exempt from payment of earnest money
deposit detailed above.
(iv) Labour Cooperative Societies shall deposit only 50% of above earnest
money deposit detailed above.

(b) It shall be understood that the tender documents have been issued to the
tenderer and the tenderer is permitted to tender in consideration of stipulation on
his part, that after submitting his tender he will not resile from his offer or modify
the terms and conditions thereof in a manner not acceptable to the Engineer.
Should the tenderer fail to observe or comply with the said stipulation, the
aforesaid amount shall be liable to be forfeited to the Railway.

(c) If his tender is accepted this earnest money mentioned in sub clause (a)
above will be retained as part security for the due and faithful fulfillment of the
contract in terms of Clause 16 of the Standard General Conditions of Contract.
The Earnest Money of other Tenderers shall, save as herein before provided, be
returned to them, but the Railway shall not be responsible for any loss or
depreciation that may happen thereto while in their possession, nor be liable to pay
interest thereon.

(2) The Earnest Money shall be deposited in cash through e-payment gateway or as
mentioned in tender documents.

6. Care in Submission of Tenders:

(a) (i) Before submitting a tender, the tenderer will be deemed to have satisfied
himself by actual inspection of the site and locality of the works, that all
conditions liable to be encountered during the execution of the works are taken
into account and that the rates he enters in the tender forms are adequate and all
inclusive to accord with the provisions in Clause-37 of the Standard General

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Conditions of Contract for the completion of works to the entire satisfaction of

the Engineer.

(a)(ii) Tenderers will examine the various provisions of The Central Goods and
Services Tax Act, 2017(CGST)/ Integrated Goods and Services Tax Act,
2017(IGST)/ Union Territory Goods and Services Tax Act, 2017(UTGST)/
respective state’s State Goods and Services Tax Act (SGST) also, as notified by
Central/State Govt. & as amended from time to time and applicable taxes
before bidding. Tenderers will ensure that full benefit of Input Tax Credit (ITC)
likely to be availed by them is duly considered while quoting rates.

(a)(iii) The successful tenderer who is liable to be registered under

CGST/IGST/UTGST/SGST Act shall submit GSTIN along with other details
required under CGST/IGST/UTGST/SGST Act to railway immediately after
the award of contract, without which no payment shall be released to the
Contractor. The Contractor shall be responsible for deposition of applicable
GST to the concerned authority.

(a)(iv) In case the successful tenderer is not liable to be registered under

CGST/IGST/UTGST/ SGST Act, the railway shall deduct the applicable GST
from his/their bills under reverse charge mechanism (RCM) and deposit the
same to the concerned authority.

(b) When work is tendered for by a firm or company, the tender shall be signed by
the individual legally authorized to enter into commitments on their behalf.

(c) The Railway will not be bound by any power of attorney granted by the
tenderer or by changes in the composition of the firm made subsequent to the
execution of the contract. It may, however, recognize such power of attorney
and changes after obtaining proper legal advice, the cost of which will be
chargeable to the Contractor.

6.1 The tenderers shall submit a copy of certificate stating that all their
statements/documents submitted along with bid are true and factual. Standard format of
certificate to be submitted by the bidder is enclosed as Annexure-V. Non submission of above
certificate by the bidder shall result in summarily rejection of his/their bid. It shall be
mandatorily incumbent upon the tenderer to identify, state and submit the supporting
documents duly self attested by which they/he is qualifying the Qualifying Criteria mentioned
in the Tender Document.

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CONSIDERATION OF TENDERS

7. Right of Railway to Deal with Tenders: The Railway reserves the right of not to
invite tenders for any of Railway work or works or to invite open or limited tenders and when
tenders are called to accept a tender in whole or in part or reject any tender or all tenders
without assigning reasons for any such action.

7A. Two Packets System of Tendering: With a view to assess the tenders technically
without being influenced by the financial bids, 'Two Packets System of tendering' shall be
adopted wherein tender documents provide for the same.

7B. Provisions of Make in India Policy 2017 issued by Govt. of India, as amended from time
to time, shall be followed for consideration of tenders.

CONTRACT DOCUMENTS

8. Execution of Contract Document: The Tenderer whose tender is accepted shall be

required to appear in person at the office of General Manager/General Manager (Construction),
Chief Administrative Officer (Construction), Divisional Railway Manager or concerned
Engineer, as the case may be, or if tenderer is a firm or corporation, a duly authorized
representative shall appear and execute the contract agreement within seven days of notice
from Railways that the Contract Agreement is ready. The Contract Agreement shall be entered
into by Railway only after submission of valid Performance Guarantee by the Contractor.
Failure to do so shall constitute a breach of the agreement affected by the acceptance of the
tender. In such cases the Railway may determine that such tenderer has abandoned the contract
and there upon his tender and acceptance thereof shall be treated as cancelled and the Railway
shall be entitled to forfeit the full amount of the Earnest Money and other dues payable to the
Contractor under this contract. The failed Contractor shall be debarred from participating in the
re-tender for that work.

9. Form of Contract Document: Every contract shall be complete in respect of the

document it shall so constitute. Not less than 2 copies of the contract document shall be signed
by the competent authority and the Contractor and one copy given to the Contractor.

(a) For Zone Contracts, awarded on the basis of the percentage above or below the
applicable Schedule of Rates for the whole or part of financial year, the contract agreement
required to be executed by the tenderer whose tender is accepted shall be as per specimen
form, Annexure-II. During the currency of the Zone Contract, work orders as per specimen
form Annexures-III, for works not exceeding ₹ 5, 00,000 each, shall be issued by the
Divisional Railway Manager / Executive Engineer under the agreement for Zone Contract.

(b) For contracts for specific works, the contract document required to be executed by the
tenderer whose tender is accepted shall be an agreement as per specimen form Annexure- IV.

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ANNEXURE - I
____________ RAILWAY
TENDER FORM (First Sheet)
Tender No. ____________________
Name of Work ___________________________________________________
To
The President of India
Acting through the _____________________________ Railway
I/We ____________________ have read the various conditions to tender attached
hereto and agree to abide by the said conditions. I/We also agree to keep this tender open for
acceptance for a period of ________ days from the date fixed for opening the same and in
default thereof, I/We will be liable for forfeiture of my/our “Earnest Money”. I/We offer to do
the work for _______ Railway, at the rates quoted in the attached schedule and hereby bind
myself/ourselves to complete the work in all respects within ____________ months from the
date of issue of letter of acceptance of the tender.
2. I/We also hereby agree to abide by the Indian Railways Standard General Conditions of
Contract, with all correction slips up-to-date and to carry out the work according to the Special
Conditions of Contract and Specifications of materials and works as laid down by Railway in
the annexed Special Conditions/Specifications, Schedule of Rates with all correction slips up-
to-date for the present contract.
3. A sum of ₹ ___________ has already been deposited online as Earnest Money. Full
value of the Earnest Money shall stand forfeited without prejudice to any other right or
remedies in case my/our Tender is accepted and if:
(a) I/We do not submit the Performance Guarantee within the time specified in the Tender
document;

(b) I/We do not execute the contract documents within seven days after receipt of notice
issued by the Railway that such documents are ready; and

(c) I/We do not commence the work within fifteen days after receipt of orders to that effect.

4. (a) I/We am/are a Startup firm registered by …………………… Department of

Industrial Policy and Promotion (DIPP) and my registration number is ……………. valid upto
…………………. (Copy enclosed) and hence exempted from submission of Earnest Money.
5. We are a 100% Govt. owned PSUs and hence exempted from payment of Earnest
Money.
6. We are a Labour Cooperative Society and our Registration No. is ……………….. with
…………………..and hence required to deposit only 50% of Earnest Money.

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7. Until a formal agreement is prepared and executed, acceptance of this tender shall
constitute a binding contract between us subject to modifications, as may be mutually agreed
to between us and indicated in the letter of acceptance of my/our offer for this work.

Signature of Witnesses: ________________________

(1) ___________________ Signature of Tenderer(s)

(2) ___________________ Date ________________

Address of the Tenderer(s)

_____________________________

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ANNEXURE - I (Contd. …)

TENDER FORM (Second Sheet)

1. Instructions to Tenderers and Conditions of Tender: The following documents form
part of Tender / Contract:
(a) Tender Forms – First Sheet and Second Sheet
(b) Special Conditions/Specifications (enclosed)
(c) Schedule of approximate quantities (enclosed)
(d) Standard General Conditions of Contract and Standard Specifications (Works and
Materials) of Indian Railways as amended/corrected upto latest correction slips, copies
of which can be seen in the office of ______________ or obtained from the office of the
(
Chief Engineer, ____________
2
Railway on payment of prescribed charges.
)
(e) Schedule of Rates as amended / corrected upto latest correction slips, copies of which
can be seen in the office of ________________ or obtained from the office of the Chief
_
Engineer, ________________
_ Railway on payment of prescribed charges.
(f) All general and detailed_ drawings pertaining to this work which will be issued by the
_
Engineer or his representatives
_
(from time to time) with all changes and modifications.
2. Drawings for the Work: _ The Drawing for the work can be seen in the office of the
_
_________ and / or Chief Engineer, ____________ Railway at any time during the office
_
hours. The drawings are only for the guidance of Tenderer(s). Detailed working drawings (if
_
required) based generally on the_
drawing mentioned above, will be given by the Engineer or
his representative from time to _time.
3. _ his / their rates as a percentage above or below the Schedule
The Tenderer(s) shall quote
_
of Rates of ____________ Railway as applicable to ____________ Division except where
_
he/they are required to quote item
_
rates and must tender for all the items shown in the Schedule
of approximate quantities attached.
_ The quantities shown in the attached Schedule are given as
a guide and are approximate only_ and are subject to variation according to the needs of the
_
Railway. The Railway does not guarantee work under each item of the Schedule. The
_
tenderer(s) shall quote rates / rebates only at specified place in Tender Form supplied by
Railway. Any revision of rates / rebates submitted (quoted) through a separate letter whether
enclosed with the bid (Tender Form) or submitted separately or mentioned elsewhere in the
document other than specified place shall be summarily ignored and will not be considered.
4. Tenders containing erasures and / or alterations of tender documents are liable to be
rejected. Any correction made by tender(s) in his/their entries must be attested by him / them.
5. The works are required to be completed within a period of ________ months from the
date of issue of acceptance letter.

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6. Earnest Money:
(a) The tender must be accompanied by a sum of ₹ _________ as Earnest Money deposited
in cash through e-payment gateway or as mentioned in tender documents, failing which the
tender shall l not be considered. Any firm recognized by Department of Industrial Policy and
Promotion (DIPP) as ‘Startups’ shall be exempted from payment of Earnest Money on
submission of Registration Certificate issued by appropriate authority.
(b) The Tenderer(s) shall keep the offer open for a minimum period of 45 days (in case of
two packet system of tendering 60 days) from the date of opening of the Tender. It is
understood that the tender documents have been issued to the Tenderer(s) and the Tenderer(s),
is / are permitted to tender in consideration of the stipulation on his / their part that after
submitting his / their tender subject to the period being extended further, if required by mutual
agreement from time to time, he will not resile from his offer or modify the terms and
conditions thereof in a manner not acceptable to ___________ Railway. Should the tenderer
fail to observe or comply with the foregoing stipulation, the amount deposited as Earnest
Money for the due performance of the above stipulation, shall be forfeited to the Railway.
(c) If his tender is accepted the earnest money mentioned in sub clause (a) above will be
retained as part security for the due and faithful fulfillment of the contract in terms of Clause
16 of the Standard General Conditions of Contract. The Earnest Money of other Tenderers
shall, save as herein before provided, be returned to them, but the Railway shall not be
responsible for any loss or depreciation to the Earnest Money that may happen thereto while in
their possession, nor be liable to pay interest thereon.

(d) In case Contractor submits the Term Deposit Receipt/Bank Guarantee Bond towards full
Security Deposit, the Railway shall return the Earnest Money so retained to the Contractor.

7. Rights of the Railway to deal with Tender: The authority for the acceptance of the
tender will rest with the Railway. It shall not be obligatory on the said authority to accept the
lowest tender or any other tender, and tenderer(s) shall neither demand any explanation for the
cause of rejection of his/ their tender nor the Railway to assign reasons for declining to
consider or reject any particular tender or tenders.
8. If the tenderer(s) deliberately gives / give wrong information in his / their tender or
creates / create circumstances for the acceptance of his / their tender, the Railway reserves the
right to reject such tender at any stage.
9. If the tenderer(s) expire(s) after the submission of his / their tender or after the
acceptance of his / their offer, the Railway shall deem such tender cancelled. If a partner of a
firm expires after the submission of their tender or after the acceptance of their tender, the
Railway shall deem such tender as cancelled, unless the firm retains its character.

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10. Eligibility Criteria:

10.1 Technical Eligibility Criteria:
(a) The tenderer must have successfully completed any of the following during last 07
(seven) years, ending last day of month previous to the one in which tender is invited:

Three similar works each costing not less than the amount equal to 30% of advertised
value of the tender, or
Two similar works each costing not less than the amount equal to 40% of advertised
value of the tender, or
One similar work each costing not less than the amount equal to 60% of advertised
value of the tender.

(b) (i) In case of tenders for composite works (e.g. works involving more than one distinct
component, such as Civil Engineering works, S&T works, Electrical works, OHE works etc.
and in the case of major bridges – substructure, superstructure etc.), tenderer must have
successfully completed any of the following during last 07 (seven) years, ending last day of
month previous to the one in which tender is invited:

Three similar works each costing not less than the amount equal to 30% of advertised
value of each component of tender, or
Two similar works each costing not less than the amount equal to 40% of advertised
value of each component of tender, or
One similar work each costing not less than the amount equal to 60% of advertised
value of each component of tender.

Note for b(i): Separate completed works of minimum required values for each component
shall also be considered for fulfillment of technical eligibility criteria.

(b) (ii) In such cases, what constitutes a component in a composite work shall be clearly pre-
defined with estimated tender cost of it, as part of the tender documents without any
ambiguity.

(b) (iii) To evaluate the technical eligibility of tenderer, only components of work as stipulated
in tender documents for evaluation of technical eligibility, shall be considered. The scope of
work covered in other remaining components shall be either executed by tenderer himself if he
has work experience as mentioned in clause 7 (a) (ii) of Part-II of GCC or through
subcontractor fulfilling the requirements as per clause 7 of Part-II of GCC or jointly i.e., partly
himself and remaining through subcontractor, with prior approval of Chief Engineer in writing.
However, if required in tender documents by way of Special Conditions, a formal
agreement duly notarised, legally enforceable in the court of law, shall be executed by the
main contractor with the subcontractor for the component(s) of work proposed to be executed
by the subcontractor(s), and shall be submitted along with the offer for considering subletting
of that scope of work towards fulfilment of technical eligibility.

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In case after award of contract or during execution of work it becomes necessary for
contractor to change subcontractor, the same shall be done with subcontractor(s) fulfilling the
requirements as per clause 7 of Part-II of GCC, with prior approval of Chief Engineer in
writing.

Note for Item 10.1:

Work experience certificate from private individual shall not be considered.

However, in addition to work experience certificates issued by any Govt.
Organisation, work experience certificate issued by 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, incorporated/registered at least 5 years prior to the date of opening
of tender, shall also be considered provided the work experience certificate has been
issued by a person authorized by the Public listed company to issue such certificates.

In case tenderer submits work experience certificate issued by public listed

company, the tenderer 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.

10.2. Financial Eligibility Criteria: The tenderer must have received contractual payments in
the previous three financial years and the current financial year up to the date of inviting of
tender, at least 150% of the advertised value of the tender. The tenderers shall submit
Certificates to this effect which may be an attested Certificate from the concerned department /
client or Audited Balance Sheet duly certified by the Chartered Accountant/Certificate from
Chartered Accountant duly supported by Audited Balance Sheet.

Note for 10.2: Client certificate from other than Govt Organization should be duly supported
by Form 16A/26AS generated through TRACES of Income Tax Department of India.

10.3 Bid Capacity: The tender/technical bid will be evaluated based on bid capacity formula
detailed as Annexure-VI.
10.4 No Technical and Financial credentials are required for tenders having value up to
Rs 50 lakh.
10.5 Credentials if submitted in foreign currency shall be converted into Indian currency i.e.,
Indian Rupee as under:
The conversion rate of US Dollars into Rupees shall be the daily representative exchange rates
published by the Reserve Bank of India for the relevant date. Where, relevant date shall be as
on the last day of month previous to the one in which tender is invited. In case of any other
currency, the same shall first be converted to US Dollars as on the last day of month previous
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GCC July 2020

to the one in which tender is invited, and the amount so derived in US Dollars shall be
converted into Rupees at the aforesaid rate. The conversion rate of such currencies shall be the
daily representative exchange rates published by the International Monetary Fund for the
relevant date.
[Explanation for clause 10 including clause 10.1 to 10.5 - Eligibility Criteria:
1. In case a work is started prior to 07 (seven) years, ending last day of month previous to the
one in which tender is invited, but completed in last 07 (seven) years, ending last day of
month previous to the one in which tender is invited, the completed work shall be
considered for fulfillment of credentials.
2. If a work is physically completed and completion certificate to this extent is issued by the
concerned organization but final bill is pending, such work shall be considered for
fulfillment of credentials.
3. If a part or a component of work is completed but the overall scope of contract is not
completed, this work shall not be considered for fulfillment of technical credentials even if
the cost of part completed work/component is more than required for fulfillment of
credentials.
4. In case a work is considered similar in nature for fulfillment of technical credentials, the
overall cost of that work including PVC amount if any shall be considered and no
separate evaluation for each component of that work shall be made to decide eligibility.
5. The value of final bill including PVC amount-if paid, or otherwise in case final bill is
pending the contract cost in last approved variation statement plus PVC amount paid or
cumulative amount paid up to last on-account bill including PVC amount and statutory
deductions whichever is less, shall be considered as the completion cost of work.
6. In case of newly formed partnership firm, the credentials of individual partners from
previous propriety firm(s) or dissolved previous partnership firm(s) or split previous
partnership firm(s), shall be considered only to the extent of their share in previous entity
on the date of dissolution / split and their share in newly formed partnership firm. For
example, a partner A had 30% share in previous entity and his share in present partnership
firm is 20%. In the present tender under consideration, the credentials of partner A will be
considered to the extent of 0.3*0.2*value of the work done in the previous entity. For this
purpose, the tenderer shall submit along with his bid all the relevant documents which
include copy of previous partnership deed(s), dissolution deed(s) and proof of surrender of
PAN No.(s) in case of dissolution of partnership firm(s) etc.
7. In case of existing partnership firm, if any one or more partners quit the partnership firm,
the credentials of remaining partnership firm shall be re-worked out i.e., the quitting
partner(s) shall take away his credentials to the extent of his share on the date of quitting
the partnership firm (e.g. in a partnership firm of partners A, B & C having share 30%,
30% & 40% respectively and credentials of Rs 10 crore; in case partner C quits the firm,
the credentials of this partnership firm shall remain as Rs 6 crore). For this purpose, the
tenderer shall submit along with his bid all the relevant documents which include copy of
previous partnership deed(s), dissolution deed(s) and proof of surrender of PAN No.(s) in
case of dissolution of partnership firm(s) etc.
8. In case of existing partnership firm if any other partner(s) joins the firm, the credentials of
partnership firm shall get enhanced to the extent of credentials of newly added partner(s)
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on the same principles as mentioned in item 6 above. For this purpose, the tenderer shall
submit along with his bid all the relevant documents which include copy of previous
partnership deeds, dissolution/splitting deeds and proof of surrender of PAN No.(s) in case
of dissolution of partnership firm etc.
9. Any partner in a partnership firm cannot use or claim his credentials in any other firm
without leaving the partnership firm i.e., In a partnership firm of A&B partners, A or B
partner cannot use credentials of partnership firm of A&B partners in any other
partnership firm or propriety firm without leaving partnership firm of A&B partners.
10. In case a partner in a partnership firm is replaced due to succession as per succession law,
the proportion of credentials of the previous partner will be passed on to the successor.
11. If the percentage share among partners of a partnership firm is changed, but the partners
remain the same, the credentials of the firm before such modification in the share will
continue to be considered for the firm as it is without any change in their value. Further, in
case a partner of partnership firm retires without taking away any credentials from the
firm, the credentials of partnership firm shall remain the same as it is without any change
in their value.
12. In a partnership firm “AB” of A&B partners, in case A also works as propriety firm “P”
or partner in some other partnership firm “AX”, credentials of A in propriety firm “P” or
in other partnership firm “AX” earned after the date of becoming a partner of the firm AB
shall not be added in partnership firm AB.
13. In case a tenderer is LLP, the credentials of tenderer shall be worked out on above lines
similar to a partnership firm.
14. In case company A is merged with company B, then company B would get the credentials of
company A also.]

11. Tenderer Credentials:

Documents testifying tenderer previous experience and financial status should be produced
along with the tender.

Tenderer(s) who is / are not borne on the approved list of the Contractors of ________ Railway
shall submit along with his / their tender:

(i) Certificates and testimonials regarding contracting experience for the type of job for
which tender is invited with list of works carried out in the past.
(ii) Certificates which may be an attested Certificate from the client, Audited Balance Sheet
duly certified by the Chartered Accountant etc regarding contractual payments received
in the past.
(iii) The list of personnel / organization on hand and proposed to be engaged for the
tendered work. Similarly list of Plant & Machinery available on hand and proposed to
be inducted and hired for the tendered work.

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(iv) A copy of certificate stating that they are not liable to be disqualified and all their
statements/documents submitted alongwith bid are true and factual. Standard format of
the certificate to be submitted by the bidder is enclosed as Annexure-V. Non submission
of a copy of certificate by the bidder shall result in summarily rejection of his/their bid.
It shall be mandatorily incumbent upon the tenderer to identify, state and submit the
supporting documents duly self attested by which they/he are/is qualifying the
Qualifying Criteria mentioned in the Tender Document.
(v) The Railway reserves the right to verify all statements, information and documents
submitted by the bidder in his tender offer, and the bidder shall, when so required by the
Railway, make available all such information, evidence and documents as may be
necessary for such verification. Any such verification or lack of such verification, by the
Railway shall not relieve the bidder of its obligations or liabilities hereunder nor will it
affect any rights of the Railway thereunder.
(vi) (a) In case of any information submitted by tenderer is found to be false forged or
incorrect at any time during process for evaluation of tenders, it shall lead to forfeiture
of the tender Earnest Money Deposit besides banning of business for a period of upto
five years.
(b) In case of any information submitted by tenderer is found to be false forged or
incorrect after the award of contract, the contract shall be terminated. Earnest Money
Deposit (EMD), Performance Guarantee and Security Deposit available with the
railway shall be forfeited. In addition, other dues of the contractor, if any, under this
contract shall be forfeited and agency shall be banned for doing business for a period of
upto five years.

12. Non-compliance with any of the conditions set forth therein above is liable to result in
the tender being rejected.
13. Execution of Contract Documents: The successful Tenderer(s) shall be required to
execute an agreement with the President of India acting through the _____________,
_________ Railway for carrying out the work according to Standard General Conditions of
Contract, Special Conditions / Specifications annexed to the tender and Standard
Specifications (Works and Materials) of Railway as amended/corrected upto latest correction
slips, mentioned in tender form (First Sheet).
14. Documents to be Submitted Along with Tender

(i) The tenderer shall clearly specify whether the tender is submitted on his own
(Proprietary Firm) or on behalf of a Partnership Firm / Company / Joint Venture (JV) /
Registered Society / Registered Trust / HUF etc. The tenderer(s) shall enclose the attested
copies of the constitution of their concern, and copy of PAN Card along with their tender.
Tender Documents in such cases are to be signed by such persons as may be legally competent
to sign them on behalf of the firm, company, association, trust or society, as the case may be.
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(ii) Following documents shall be submitted by the tenderer:

(a) Sole Proprietorship Firm:

(i) An undertaking that he is not blacklisted or debarred by Railways or any other
Ministry / Department of Govt. of India from participation in tender on the date of
opening of bids, either in individual capacity or as a member of the partnership firm
or JV in which he was / is a partner/member. Concealment / wrong information in
regard to above shall make the contract liable for determination under Clause 62 of
the General Conditions of Contract.
(ii) All other documents in terms of explanatory notes in clause 10 above.

(b) HUF:
(i) A copy of notarized affidavit on Stamp Paper declaring that he who is submitting
the tender on behalf of HUF is in the position of ‘Karta’ of Hindu Undivided Family
(HUF) and he has the authority, power and consent given by other members to act
on behalf of HUF.
(ii) An undertaking that the HUF is not blacklisted or debarred by Railways or any
other Ministry / Department of Govt. of India from participation in tender on the
date of opening of bids, either in individual capacity or as a member of the
partnership firm or JV in which HUF was / is a partner/member. Concealment /
wrong information in regard to above shall make the contract liable for
determination under Clause 62 of the General Conditions of Contract.
(iii) All other documents in terms of explanatory notes in clause 10 above.

(c) Partnership Firm:

(i) The tenderer shall submit documents as mentioned in clause 18 of the Tender Form
(Second Sheet).

(d) Joint Venture (JV): The tenderer shall submit documents as mentioned in Clause 17 of
the Tender Form (Second Sheet).

(e) Company registered under Companies Act 2013:

(i) The copies of MOA (Memorandum of Association) / AOA (Articles of

Association) of the company
(ii) A copy of Certificate of Incorporation
(iii) A copy of Authorization/Power of Attorney issued by the Company (backed by the
resolution of Board of Directors) in favour of the individual to sign the tender on
behalf of the company and create liability against the company.
(iv) An undertaking that the Company is not blacklisted or debarred by Railways or any
other Ministry / Department of Govt. of India from participation in tender on the
date of opening of bids, either in individual capacity or as a member of the
partnership firm or JV in which the Company was / is a partner/member.
Concealment / wrong information in regard to above shall make the contract liable
for determination under Clause 62 of the General Conditions of Contract.
(v) All other documents in terms of explanatory notes in clause 10 above.

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(f) LLP (Limited Liability Partnership): If the tender is submitted on behalf of a LLP
registered under LLP Act-2008, the tenderer shall submit along with the tender:
(i) A copy of LLP Agreement
(ii) A copy of Certificate of Incorporation
(iii) A copy of Power of Attorney/Authorization issued by the LLP in favour of the
individual to sign the tender on behalf of the LLP and create liability against the
LLP.
(iv) An undertaking that the LLP is not blacklisted or debarred by Railways or any other
Ministry / Department of Govt. of India from participation in tender on the date of
opening of bids, either in individual capacity or as a member of JV in which the
LLP was / is a member. Concealment / wrong information in regard to above shall
make the contract liable for determination under Clause 62 of the General
Conditions of Contract.
(v) All other documents in terms of explanatory notes in clause 10 above.

(g) Registered Society & Registered Trust: The tenderer shall submit:
(i) A copy of the Certificate of Registration
(ii) A copy of Deed of Formation
(iii) A copy of Power of Attorney in favour of the individual to sign the tender
documents and create liability against the Society/Trust.
(iv) All other documents in terms of explanatory notes in clause 10 above.

(iii) If it is NOT mentioned in the submitted tender that tender is being submitted on behalf
of a Sole Proprietorship firm / Partnership firm / Joint Venture / Registered Company etc., then
the tender shall be treated as having been submitted by the individual who has signed the
tender.

(iv) After opening of the tender, any document pertaining to the constitution of Sole
Proprietorship Firm / Partnership Firm / Registered Company/ Registered Trust / Registered
Society / HUF etc. shall be neither asked nor considered, if submitted. Further, no suo moto
cognizance of any document available in public domain (i.e., on internet etc.) or in Railway’s
record/office files etc. will be taken for consideration of the tender, if no such mention is
available in tender offer submitted.

(v) A tender from JV / Partnership firm etc. shall be considered only where permissible as
per the tender conditions.
(vi) The Railway will not be bound by any change in the composition of the firm made
subsequent to the submission of tender. Railway may, however, recognize such power of
attorney and changes after obtaining proper legal advice, the cost of which will be chargeable
to the Contractor.
15. The tenderer whether sole proprietor / a company or a partnership firm / joint venture
(JV) / registered society / registered trust / HUF etc if they want to act through agent or
individual partner(s), should submit along with the tender, a copy of power of attorney duly

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stamped and authenticated by a Notary Public or by Magistrate in favour of the specific person
whether he/they be partner(s) of the firm or any other person specifically authorizing him/them
to submit the tender, sign the agreement, receive money, co-ordinate measurements through
contractor’s authorized engineer, witness measurements, sign measurement books,
compromise, settle, relinquish any claim(s) preferred by the firm and sign "No Claim
Certificate" and refer all or any disputes to arbitration. The above power of attorney shall be
submitted even if such specific person is authorized for above purposes through partnership
deed / Memorandum of Understanding / Article of Association or such other document, failing
which tender is liable to be rejected.
16. Employment/Partnership etc. of Retired Railway Employees:
(a) Should a tenderer
i) be a retired Engineer of the gazetted rank or any other gazetted officer working before
his retirement, whether in the executive or administrative capacity or whether holding
a pensionable post or not, in the Engineering or any other department of any of the
railways owned and administered by the President of India for the time being, OR
ii) being partnership firm / joint venture (JV) / registered society / registered trust etc
have as one of its partners a retired Engineer of the gazetted rank or any other gazetted
officer working before his retirement, OR
iii) being an incorporated company have any such retired Engineer of the gazetted rank
or any other gazetted officer working before his retirement as one of its directors
AND
in case where such Engineer or officer had not retired from government service at least
1 year prior to the date of submission of the tender
THEN
the tenderer will give full information as to the date of retirement of such Engineer or
gazetted officer from the said service and as to whether permission for taking such
contract, or if the Contractor be a partnership firm or an incorporated company, to
become a partner or director as the case may be, has been obtained by the tenderer or the
Engineer or officer, as the case may be from the President of India or any officer, duly
authorized by him in this behalf, shall be clearly stated in writing at the time of
submitting the tender.

b) In case, upon successful award of contract, should a tenderer depute for execution of the
works under or to deal matters related with this contract, any retired Engineer of gazette
rank or retired gazetted officer working before his retirement in the Engineering or any
other department of any of the railways owned and administered by the President of India
for the time being, and now in his employment, then the tenderer will ensure that retired
Engineer or retired gazetted officer had retired from government service at least 1 year
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GCC July 2020

prior to the date of his employment with tenderer and in case he had retired from service
within a year then he possesses the requisite permission from the President of India or
any officer, duly authorized by him in this behalf, to get associated with the tenderer.
c) Should a tenderer or Contractor being an individual, have member(s) of his family or in
the case of partnership firm/ company / joint venture (JV) / registered society / registered
trust etc. one or more of his partner(s)/shareholder(s) or member(s) of the family of
partner(s)/shareholder(s) having share of more than 1% in the tendering entity employed
in gazetted capacity in the Engineering or any other department of the railway, then the
tenderer at the time of submission of tender, will inform the authority inviting tenders the
details of such persons.
Note:-If information as required as per 16.a), b), c) above has not been furnished, contract is
liable to be dealt in accordance with provision of clause 62 of Standard General
Condition of contract.

JOINT VENTURE (JV) IN WORKS TENDERS

17. Participation of Joint Venture (JV) in Works Tender: This Clause shall be
applicable for works tenders wherein tender documents provide for the same.

17.1 Separate identity/name shall be given to the Joint Venture.

17.2 Number of members in a JV shall not be more than three, if the work involves only one
department (say Civil or S&T or Electrical or Mechanical) and shall not be more than five, if
the work involves more than one Department. One of the members of the JV shall be its Lead
Member who shall have a majority (at least 51%) share of interest in the JV. The other
members shall have a share of not less than 20% each in case of JV with upto three members
and not less than 10% each in case of JV with more than three members. In case of JV with
foreign member(s), the Lead Member has to be an Indian firm/company with a minimum share
of 51%.

17.3 A member of JV shall not be permitted to participate either in individual capacity or as a

member of another JV in the same tender.

17.4 The tender form shall be purchased and submitted only in the name of the JV and not in
the name of any constituent member. The tender form can however be submitted by JV or any
of its constituent member or any person authorized by JV through Power of Attorney to submit
tender.

17.5 Earnest Money Deposit (EMD) shall be deposited by JV or authorized person of JV

through e-payment gateway or as mentioned in tender document.

17.6 A copy of Memorandum of Understanding (MoU) duly executed by the JV members on

a stamp paper, shall be submitted by the JV along with the tender. The complete details of the
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GCC July 2020

members of the JV, their share and responsibility in the JV etc. particularly with reference to
financial, technical and other obligations shall be furnished in the MoU. (The MoU format for
this purpose shall be finalized by the Railway in consultation with their Law Branch and shall
be enclosed along with the tender).
17.7 Once the tender is submitted, the MoU shall not be modified / altered / terminated
during the validity of the tender. In case the tenderer fails to observe/comply with this
stipulation, the full Earnest Money Deposit (EMD) shall be liable to be forfeited.

17.8 Approval for change of constitution of JV shall be at the sole discretion of the Railway.
The constitution of the JV shall not be allowed to be modified after submission of the tender
bid by the JV, except when modification becomes inevitable due to succession laws etc.,
provided further that there is no change in qualification of minimum eligibility criteria by JV
after change of composition. However, the Lead Member shall continue to be the Lead
Member of the JV. Failure to observe this requirement would render the offer invalid.

17.9 Similarly, after the contract is awarded, the constitution of JV shall not be allowed to be
altered during the currency of contract except when modification become inevitable due to
succession laws etc. and minimum eligibility criteria should not get vitiated. Failure to observe
this stipulation shall be deemed to be breach of contract with all consequential penal action as
per contract conditions.

17.10 On award of contract to a JV, a single Performance Guarantee shall be submitted by the
JV as per tender conditions. All the Guarantees like Performance Guarantee, Bank Guarantee
for Mobilization Advance, Machinery Advance etc. shall be accepted only in the name of the
JV and no splitting of guarantees amongst the members of the JV shall be permitted.
17.11 On issue of LOA (Letter of Acceptance), the JV entity to whom the work has been
awarded, with the same shareholding pattern as was declared in the MOU/JV Agreement
submitted along with the tender, shall be got registered before the Registrar of the Companies
under 'The Companies Act -2013' (in case of Company) or before the Registrar/Sub-Registrar
under the 'The Indian Partnership Act, 1932' (in case of Partnership Firm) or under 'The LLP
Act 2008' (in case of LLP). A separate PAN shall be obtained for this entity. The documents
pertaining to this entity including its PAN shall be furnished to the Railways before signing the
contract agreement for the work. In case the tenderer fails to observe/comply with this
stipulation within 60 days of issue of LOA, contract is liable to be terminated. In case contract
is terminated railway shall be entitled to forfeit the full amount of the Earnest Money Deposit
and other dues payable to the Contractor under this contract. The entity so registered, in the
registered documents, shall have, inter-alia, following Clauses:

17.11.1 Joint And Several Liability - Members of the entity to which the contract is awarded,
shall be jointly and severally liable to the Railway for execution of the project in accordance
with General and Special Conditions of Contract. The members of the entity shall also be

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liable jointly and severally for the loss, damages caused to the Railways during the course of
execution of the contract or due to non-execution of the contract or part thereof.

17.11.2 Duration of the Registered Entity - It shall be valid during the entire currency of the
contract including the period of extension, if any and the maintenance period after the work is
completed.
17.11.3 Governing Laws - The Registered Entity shall in all respect be governed by and
interpreted in accordance with Indian Laws.

17.12 Authorized Member - Joint Venture members in the JV MoU shall authorize one of
the members on behalf of the Joint Venture to deal with the tender, sign the agreement or enter
into contract in respect of the said tender, to receive payment, to witness joint measurement of
work done, to sign measurement books and similar such action in respect of the said
tender/contract. All notices/correspondences with respect to the contract would be sent only to
this authorized member of the JV.

17.13 No member of the Joint Venture shall have the right to assign or transfer the interest
right or liability in the contract without the written consent of the other members and that of
the Railway in respect of the said tender/contract.

17.14 Documents to be enclosed by the JV along with the tender:

17.14.1 In case one or more of the members of the JV is/are partnership firm(s), following
documents shall be submitted:
(i) A notarized copy of the Partnership Deed,
(ii) A copy of consent of all the partners or individual authorized by partnership firm, to
enter into the Joint Venture Agreement on a stamp paper,
(iii) A notarized or registered copy of Power of Attorney in favour of the individual to
sign the MOU/JV Agreement on behalf of the partnership firm and create liability
against the firm.

17.14.2 In case one or more members is/are HUF, the following documents shall be enclosed:
(i) A copy of notarized affidavit on Stamp Paper declaring that he who is signing the
affidavit on behalf of HUF is in the position of ‘Karta’ of Hindu Undivided Family
(HUF) and he has the authority, power and consent given by other members to act
on behalf of HUF.

17.14.3 In case one or more members of the JV is/are companies, the following documents
shall be submitted:
(i) A copy of resolutions of the Directors of the Company, permitting the company to
enter into a JV agreement,
(ii) The copies of MOA (Memorandum of Association) / AOA (Articles of
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Association) of the company

(iii) A copy of Certificate of Incorporation
(iv) A copy of Authorization/copy of Power of Attorney issued by the Company
(backed by the resolution of Board of Directors) in favour of the individual to sign
the tender, sign MOU/JV Agreement on behalf of the company and create liability
against the company

17.14.4 All the Members of JV shall certify that they are not blacklisted or debarred by
Railways or any other Ministry / Department of the Govt. of India from participation in
tenders/contract on the date of opening of bids either in their individual capacity or as a
member of the JV in which they were/are members.
17.14.5 All other documents in terms of explanatory notes in clause 10 above.

17.15 Credentials & Qualifying Criteria: Technical, financial eligibility and Bid capacity of
the JV shall be adjudged based on satisfactory fulfillment of the following criteria:
17.15.1 Technical Eligibility Criteria (‘a’ or ‘b’ mentioned hereunder):
(a) For Works without composite components
The technical eligibility for the work as per para 10.1 above, shall be satisfied by
either the ‘JV in its own name & style’ or ‘any member having min 26% share’. Each
other member of JV shall have technical capacity of minimum 10% of the cost of
work i.e., each JV member must have satisfactorily completed during the last 07
(seven) years, ending last day of month previous to the one in which tender is invited,
one similar single work for a minimum of 10% of advertised value of the tender.
(b) For works with composite components
(i) The technical eligibility for each component of work as per para 10.1 above,
shall be satisfied by either the ‘JV in its own name & style’ or ‘any member of JV
having min 26% share’. Each other member of JV shall have technical capacity of
minimum 10% of the cost of any component of work i.e., each JV member must have
satisfactorily completed during the last 07 (seven) years, ending last day of month
previous to the one in which tender is invited, one similar single work for a minimum
of 10% of cost of any component of work.
OR
(ii) The technical eligibility for major component of work as per para 10.1 above,
shall be satisfied by either the ‘JV in its own name & style’ or ‘any member of JV
having min 26% share’ and technical eligibility for other components of work as per
para 10.1 above, shall be satisfied by either the ‘JV in its own name & style’ or ‘any
member of the JV’. Each other member of JV shall have technical capacity of
minimum 10% of the cost of any component of work. i.e., each JV member must have
satisfactorily completed during the last 07 (seven) years, ending last day of month
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previous to the one in which tender is invited, one similar single work for a minimum
of 10% of cost of any component of work.

Note for Clause 17.15.1:

(a) The Major component of the work for this purpose shall be the component of
work having highest value. In cases where value of two or more component of
work is same, any one work can be classified as Major component of work.
(b) Value of a completed work done by a Member in an earlier JV shall be reckoned
only to the extent of the concerned member's share in that JV for the purpose of
satisfying his/her compliance to the above mentioned technical eligibility criteria
in the tender under consideration.

17.15.2 Financial Eligibility Criteria

The JV shall satisfy the requirement of “Financial Eligibility” mentioned at para 10.2 above.
The “financial capacity” of the lead partner of JV shall not be less than 51% of the financial
eligibility criteria mentioned at para 10.2 above.
The arithmetic sum of individual “financial capacity” of all the members shall be taken as JV’s
“financial capacity” to satisfy this requirement.
Note: Contractual payment received by a Member in an earlier JV shall be reckoned only to
the extent of the concerned member’s share in that JV for the purpose of satisfying compliance
of the above mentioned financial eligibility criteria in the tender under consideration.
17.15.3 Bid Capacity
The JV shall satisfy the requirement of “Bid Capacity” requirement mentioned at para 10.3
above. The arithmetic sum of individual “Bid capacity” of all the members shall be taken as
JV’s “Bid capacity” to satisfy this requirement.
18. Participation of Partnership Firms in works tenders:

18.1 The Partnership Firms participating in the tender should be legally valid under the
provisions of the Indian Partnership Act.

18.2 The partnership firm should have been in existence or should have been formed prior to
submission of tender. Partnership firm should have either been registered with the Registrar or
the partnership deed should have been notarized prior to date of tender opening as per the
Indian Partnership Act.

18.3 Separate identity / name should be given to the partnership firm. The partnership firm
should have PAN / TAN number in its own name and PAN / TAN number in the name of any
of the constituent partners shall not be considered. The valid constituents of the firm shall be
called partners.

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18.4 Once the tender has been submitted, the constitution of the firm shall not normally be
allowed to be modified / altered / terminated during the validity of the tender as well as the
currency of the contract except when modification becomes inevitable due to succession laws
etc., in which case prior permission should be taken from Railway and in any case the
minimum eligibility criteria should not get vitiated. The re-constitution of firm in such cases
should be followed by a notary certified Supplementary Deed. The approval for change of
constitution of the firm, in any case, shall be at the sole discretion of the Railways and the
tenderer shall have no claims what-so-ever. Any change in the constitution of Partnership firm
after opening of tender shall be with the consent of all partners and with the signatures of all
partners as that in the Partnership Deed. Failure to observe this requirement shall render the
offer invalid and full EMD shall be forfeited.

If any Partner/s withdraws from the firm after opening of the tender and before the
award of the contract, the offer shall be rejected and EMD of the tenderer will be forfeited. If
any new partner joins the firm after opening of tender but prior to award of contract, his / her
credentials shall not qualify for consideration towards eligibility criteria either individually or
in proportion to his share in the previous firm. In case the tenderer fails to inform Railway
beforehand about any such changes / modification in the constitution which is inevitable due to
succession laws etc. and the contract is awarded to such firm, then it will be considered a
breach of the contract conditions liable for determination of the contract under Clause 62 of
General Conditions of Contract.

18.5 A partner of the firm shall not be permitted to participate either in his individual
capacity or as a partner of any other firm in the same tender.

18.6 The tender form shall be submitted only in the name of partnership firm. The EMD
shall be deposited by partnership firm through e-payment gateway or as mentioned in tender
document. The EMD submitted in the name of any individual partner or in the name of
authorized partner (s) shall not be considered.

18.7 One or more of the partners of the firm or any other person (s) shall be designated as the
authorized person (s) on behalf of the firm, who will be authorized by all the partners to act on
behalf of the firm through a “Power of Attorney”, specially authorizing him / them to submit
& sign the tender, sign the agreement, receive payment, witness measurements, sign
measurement books, make correspondences, compromise / settle / relinquish any claim (s)
preferred by the firm, sign “No Claim Certificate”, refer all or any dispute to arbitration and to
take similar such action in respect of the said tender / contract. Such “Power of Attorney”
shall be notarized / registered and submitted along with the tender.

18.8 On issue of Letter of Acceptance (LOA) to the partnership firm, all the guarantees like
Performance Guarantee, Guarantee for various Advances to the Contractor shall be submitted
only in the name of the partnership firm and no splitting of guarantees among the partners shall
be acceptable.

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18.9 On issue of Letter of Acceptance (LOA), contract agreement with partnership firm shall
be executed in the name of the firm only and not in the name of any individual partner.

18.10 In case the Letter of Acceptance (LOA) is issued to a partnership firm, the following
undertakings shall be furnished by all the partners through a notarized affidavit, before signing
of contract agreement.

(a) Joint and several liabilities:

The partners of the firm to which the Letter of Acceptance (LOA) is issued, shall be jointly
and severally liable to the Railway for execution of the contract in accordance with General
and Special Conditions of the Contract. The partners shall also be liable jointly and severally
for the loss, damages caused to the Railway during the course of execution of the contract or
due to non-execution of the contract or part thereof.

(b) Duration of the partnership deed and partnership firm agreement:

The partnership deed/partnership firm agreement shall normally not be modified/altered/

terminated during the currency of contract and the maintenance period after the work is
completed as contemplated in the conditions of the contract. Any change carried out by
partners in the constitution of the firm without permission of Railway, shall constitute a breach
of the contract, liable for determination of the contract under Clause 62 of the General
Conditions of Contract.

(c) Governing laws: The partnership firm agreement shall in all respect be governed by and
interpreted in accordance with the Indian laws.

(d) No partner of the firm shall have the right to assign or transfer the interest right or liability
in the contract without the written consent of the other partner/s and that of the Railway.

18.11 The tenderer shall clearly specify that the tender is submitted on behalf of a partnership
firm. The following documents shall be submitted by the partnership firm, with the tender:

(i) A notarized copy of partnership deed.

(ii) A notarized or registered copy of Power of Attorney in favour of the individual to
tender for the work, sign the agreement etc. and create liability against the firm.
(iii) An undertaking by all partners of the partnership firm that they are not blacklisted or
debarred by Railways or any other Ministry / Department of the Govt. of India from
participation in tenders / contracts as on the date of opening of bids, either in their
individual capacity or in any firm in which they were / are partners. Concealment /
wrong information in regard to above shall make the contract liable for determination
under Clause 62 of the General Conditions of Contract.
(iv) All other documents in terms of explanatory notes in clause 10 above.

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18.12 Evaluation of eligibility of a partnership firm:

Technical and financial eligibility of the firm shall be adjudged based on satisfactory
fulfillment of the eligibility criteria laid down in Clause 10 above.

(Signature)

(Designation)

Signature of Tenderer(s) _________Railway

Date _____________ Date _____________

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ANNEXURE - I (Contd. …)
TENDER FORM (Third Sheet)

Name of Work: ________________________________________________

SCHEDULE OF RATES AND QUANTITIES

SL Item Description Approximate Unit Rates in Figures Amount

No. of Item of Quantity and Words (₹)
Work (₹)

1 2 3 4 5 6 7

The quantities shown in above Schedule are approximate and are as a guide to give the
tenderer(s) an idea of quantum of work involved. The Railway reserves the right to increase/
decrease and/or delete or include any of the quantities given above and no extra rate will be
allowed on this account.

I/We undertake to do the work at __________ % above/below the Schedule of Rates of

the _______ Railway as applicable to ________ Division or at the rates quoted above for each
item.

Dated ______________

Signature of the Tenderer(s)

Note: Columns 1 to 5 shall be filled by the office of the Authority inviting tender. Columns 6
& 7 shall be filled by the Tenderer(s) only when percentage tenders are not invited.

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ANNEXURE – II

AGREEMENT FOR ZONE CONTRACT

CONTRACT AGREEMENT No.______________ DATED _____________.

ARTICLES OF AGREEMENT made this ______________ day of ______________ between
the President of India acting through the _________________, _____________ Railway
hereinafter called the "Railway" of the one part and ___________________________
hereinafter called the "Contractor" of the other part.
WHEREAS the Contractor has agreed with the Railway during the period of _____
months from ______________ to _________________ for the performance of:
(a) New Works, additions and alterations to existing structures, special repair works and
supply of building materials subject to the contract value for such works not exceeding
₹ _______.
(b) All ordinary repair and maintenance works at any site between kilometer __________ and
kilometre _________ as will be set forth in the work orders (which work orders shall be
deemed and taken to be part of this contract) that will be issued during the said period at
_______% above/below the Schedule of Rates of the _____________ Railway, corrected up to
the latest correction slips and Standard Specifications of the _____________ Railway
corrected upto latest correction slips and the Special Conditions and Special Specifications, if
any in conformity with the drawings (if any) that will be issued with the work order, aforesaid
AND WHEREAS the performance of the said work is an act in which the public are interested.
NOW THIS INDENTURE PRESENTS WITNESSETH That in consideration of the
payment to be made by the Railway, the Contractor will duly perform the works set forth in the
said Work Order and shall execute the same with great promptness, care and accuracy, in a
workman like manner to the satisfaction of the Railway and will complete the same on or
before the respective dates specified therein in accordance with the said specifications and said
drawings (if any) and said conditions of contract and will observe, fulfill and keep all the
conditions therein mentioned, (which shall be deemed and taken to be part of this contract as if
the same had been duly set forth herein), AND the Railway both here-by agree that if the
Contractor shall duly perform the said work in the manner aforesaid and observe and keep the
said terms and conditions, the Railway will pay or cause to be paid to the Contractor for the
said works on the completion thereof the amount due in respect thereof at the rates specified
above.
Contractor _______________ Designation
Address _________________ Railway _________
(For President of India)

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Witnesses (to signature of Contractor):

Signature of witnesses with address ______________________________________
Date __________ _______________________________________

Signature of witnesses with address _______________________________________

Date __________ _______________________________________
_______________________________________

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ANNEXURE - III
WORK ORDER UNDER ZONE CONTRACT
WORK ORDER NO._________, DATED ________ UNDER CONTRACT AGREEMENT
NO._________________________________ DATED __________________.
Name of Work _____________________________________
(SITE) _____________________
Schedule of Drawings
____________________________________________________________
Authority__________________________________
Allocation _________________________

The Contractor(s) ____________________________ is / are hereby ordered to carry

out the following works at ________% above/below the Schedule of Rates of ________
Railway corrected upto latest correction slips of ___________ Division under Zone Contract
Agreement here-in-before referred to:

SL Item Description of Approximate Unit Rates in Figures Amount (₹)

No. Item of Work Quantity and Words (₹)
1 2 3 4 5 6 7

Total Approximate Value of Work = ₹ ____________

The works herein mentioned are required to be completed on or before ________ (Date). The
quantities provided herein are approximate and subject to variation under Clause 42 of the
Standard General Conditions of Contract corrected upto latest correction slips.

Divisional Railway Manager/Divisional __________ Engineer

_______________ Division
__________________ Railway
Date ___________
for President of India

I agree to complete the works herein set forth on or before the date specified under the
Zone Contract Agreement herein before referred to in conformity with the drawings hereto
annexed and in accordance with the General and Special (if any) Conditions of Contract
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corrected upto latest Correction Slips and the Standard Specifications of _________ Railway
with up-to-date Correction Slips.
I also agree to maintain such works for the period specified below from the date of
completion:
(a) Repair and maintenance work including white/color washing: three calendar
months from date of completion.
(b) All new works except earth work: Six calendar months from date of completion.
Contractor _______________ (Signature) Railway: Designation _____________
Address __________________________
For President of India)
Date _____________ Date _____________

Signature of Witnesses (to Signature of Contractor) with address

1. ________________________ _________________________
________________________ _________________________
_________________________ _________________________
2. _________________________ _________________________
_________________________ __________________________
_________________________ __________________________

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ANNEXURE - IV
___________ RAILWAY
CONTRACT AGREEMENT OF WORKS
CONTRACT AGREEMENT NO. _________________________ DATED ___________

ARTICLES OF AGREEMENT made this _________ day of _________ 20______

between President of India acting through the Railway Administration hereafter called the
"Railway" of the one part and ___________________________herein after called the
"Contractor" of other part.
WHEREAS the Contractor has agreed with the Railway for performance of the works
_____________________ set forth in the Schedule hereto annexed upon the Standard General
Conditions of Contract, corrected upto latest correction slips and the Specifications of
_____________ Railway corrected upto the latest correction slips and the Schedule of Rates of
___________ Railway, corrected upto latest correction slips and the Special Conditions and
Special Specifications, if any and in conformity with the drawings here-into annexed AND
WHEREAS the performance of the said works is an act in which the public are interested.
NOW THIS INDENTURE WITNESSETH that in consideration to the payments to be
made by the Railways, the Contractors will duly perform the said works in the said schedule
set forth and shall execute the same with great promptness, care and accuracy in a workman
like manner to the satisfaction of the Railway and will complete the same in accordance with
the said specifications and said drawings and said conditions of contract on or before the
______ day of ___________ 20___ and will maintain the said works for a period of
________Calendar months from the certified date of their completion and will observe, fulfill
and keep all the conditions therein mentioned (which shall be deemed and taken to be part of
this contract, as if the same have been fully set forth herein), AND the Railway, both hereby
agree that if the Contractor shall duly perform the said works in the manner aforesaid and
observe and keep the said terms and conditions, the Railway will pay or cause to be paid to the
Contractor for the said works on the final completion thereof the amount due in respect thereof
at the rates specified in the Schedule hereto annexed.
Contractor _______________ (Signature) Railway: Designation ___________
Address _________________________ (For President of India)
Date _____________ Date _____________

Signature of Witnesses (to Signature of Contractor) with address:

Witnesses:
_____________________________ _____________________________
_____________________________ _____________________________
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ANNEXURE-V
FORMAT FOR CERTIFICATE TO BE SUBMITTED / UPLOADED BY TENDERER
ALONGWITH THE TENDER DOCUMENTS

I……………………………… (Name and designation)** appointed as the

attorney/authorized signatory of the tenderer (including its constituents),

M/s_____________________________ (hereinafter called the tenderer) for the purpose of

the Tender documents for the work of ____________________________________________
as per the tender No.____________ of ________(Railway)**, do hereby solemnly affirm and
state on the behalf of the tenderer including its constituents as under:

1. I/we the tenderer (s) am/are signing this document after carefully reading the contents.
2. I/We the tenderer(s) also accept all the conditions of the tender and have signed all the
pages in confirmation thereof.
3. I/we hereby declare that I/we have downloaded the tender documents from Indian
Railway website www.ireps.gov.in . I/we have verified the content of the document
from the website and there is no addition, no deletion or no alteration to the content of
the tender document. In case of any discrepancy noticed at any stage i.e. evaluation of
tenders, execution of work or final payment of the contract, the master copy available
with the railway Administration shall be final and binding upon me/us.

4. I/we declare and certify that I/we have not made any misleading or false representation
in the forms, statements and attachments in proof of the qualification requirements.

5. I/We also understand that my/our offer will be evaluated based on the
documents/credentials submitted along with the offer and same shall be binding
upon me/us.

6. I/We declare that the information and documents submitted along with the tender
by me/us are correct and I/we are fully responsible for the correctness of the
information and documents, submitted by us.

7. I/we understand that if the certificates regarding eligibility criteria submitted by us are
found to be forged/false or incorrect at any time during process for evaluation of
tenders, it shall lead to forfeiture of the tender EMD besides banning of business for a
period of upto five year. Further, I/we (insert name of the
tenderer) **_____________and all my/our constituents understand that my/our offer
shall be summarily rejected.

8. I/we also understand that if the certificates submitted by us are found to be false/forged
or incorrect at any time after the award of the contract, it will lead to termination of the
contract, along with forfeiture of EMD/SD and Performance guarantee besides any
other action provided in the contract including banning of business for a period of upto
five year.
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SEAL AND SIGNATURE

OF THE TENDERER
Place:
Dated:

** The contents in Italics are only for guidance purpose. Details as appropriate are to be filled
in suitably by tenderer.

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ANNEXURE – VI
TENDERER’S CREDENTIALS (BID CAPACITY)
___________ RAILWAY
For tenders costing more than Rs 20 crore wherein eligibility criteria includes bid capacity
also, the tenderer will be qualified only if its available bid capacity is equal to or more than the
total bid value of the present tender. The available bid capacity shall be calculated as under:

Available Bid Capacity = [A x N x 2] – B

Where,

A = Maximum value of construction works executed and payment received in any one of the
previous three financial years or the current financial year (up to date of inviting tender),
taking into account the completed as well as works in progress.

N= Number of years prescribed for completion of work for which bids has been invited.

B = Value of existing commitments and balance amount of ongoing works with the tenderer to
be completed in next ‘N’ years.

Note:
(a) The Tenderer(s) shall furnish the details of existing commitments and balance amount
of ongoing works with tenderer as per the prescribed proforma of Railway for statement
of all works in progress and also the works which are awarded to tenderer but yet not
started upto the date of inviting of tender. In case of no works in hand, a ‘NIL’
statement should be furnished. This statement should be submitted duly verified by
Chartered Accountant.
(b) In case of JV, the tenderer(s) must furnish the details of existing commitments and
balance amount of ongoing works with each member of JV as per the prescribed
proforma of Railway for statement of all works in progress and also the works which
are awarded to tenderer but yet not started upto the date of inviting of tender. In case of
no works in hand, a ‘NIL’ statement should be furnished. This statement should be
submitted duly verified by Chartered Accountant.
(c) Value of a completed work/work in progress/work awarded but yet not started for a
Member in an earlier JV shall be reckoned only to the extent of the concerned member's
share in that JV for the purpose of satisfying his/her compliance to the above mentioned
bid capacity in the tender under consideration.
(d) The arithmetic sum of individual “bid capacity” of all the members shall be taken as
JV’s “bid capacity”.
(e) In case, the tenderer/s failed to submit the above statement along with offer, their/his
offer shall be considered as incomplete and will be rejected summarily.
(f) The available bid capacity of tenderer shall be assessed based on the details submitted
by the tenderer. In case, the available bid capacity is lesser than estimated cost of work
put to tender, his offer shall not be considered even if he has been found eligible in
other eligibility criteria/tender requirement.

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Part II

STANDARD GENERAL CONDITIONS OF CONTRACT

FOR USE IN CONNECTION WITH WORKS CONTRACTS

DEFINITIONS AND INTERPRETATION

1. (1) Definitions: In these Standard General Conditions of Contract, the following terms
shall have the meaning assigned hereunder except where the context otherwise requires:

(a) "Railway" shall mean the President of the Republic of India or the Administrative
Officers of the Railway or of the Successor Railway authorized to deal with any matters which
these presents are concerned on his behalf.

(b) "General Manager" shall mean the Officer in-charge of the General Superintendence
and Control of the Railway and shall also include Addl. General Manager, the General
Manager (Construction) and shall mean and include their successors, of the successor Railway.

(c) "Chief Engineer" shall mean the Officer in-charge of the Engineering Department of
Railway and shall also include Chief Engineer (Construction), Chief Signal &
Telecommunication Engineer, Chief Signal & Telecommunication Engineer (Construction),
Chief Electrical Engineer, Chief Electrical Engineer (Construction), Chief Mechanical
Engineer and shall mean & include their successors, of the Successor Railway.

(d) "Divisional Railway Manager" shall mean the Officer in-charge of a Division of the
Railway and shall mean and include the Divisional Railway Manager of the Successor
Railway.

(e) “Engineer” shall mean the Divisional Engineer or the Executive Engineer, Divisional
Signal & Telecom Engineer, Divisional Electrical Engineer, Divisional Mechanical Engineer
in executive charge of the works and shall include the superior officers of Open Line and
Construction organisations on the Railway of the Engineering, Signal & Telecom, Electrical
and Mechanical Departments, i.e. the Senior Divisional Engineer/Deputy Chief Engineer,
Senior Divisional Signal & Telecom Engineer / Dy. Chief Signal & Telecom Engineer, Senior
Divisional Electrical Engineer / Deputy Chief Electrical Engineer, Senior Divisional
Mechanical Engineer and shall mean & include the Engineers of the Successors Railway.

(f) "Engineer's Representative" shall mean the Assistant Engineer, Assistant Signal &
Telecommunication Engineer and Assistant Electrical Engineer, Assistant Mechanical
Engineer in direct charge of the works and shall include any Sr. Section/Junior Engineer of
Civil Engineering/ Signal and Telecommunication Engineering/Mechanical
Engineering/Electrical Engineering Departments appointed by the Railway and shall mean and
include the Engineer's Representative of the Successor Railway.

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(g) "Contractor" shall mean the Person/Firm/Co-operative Society or Company whether

incorporated or not who enters into the contract with the Railway and shall include their
executors, administrators, successors and permitted assigns.

(h) "Contract" shall mean and include the Agreement of Work Order, the accepted
Schedule of Rates or the Schedule or Rates of Railway modified by the tender percentage for
items of works quantified, or not quantified, the Standard General Conditions of Contract, the
Special Conditions of Contracts, if any; the Drawing, the Specifications, the Special
Specifications, if any and Tender Forms, if any.

(i) "Works" shall mean the works to be executed in accordance with the contract.

(j) "Specifications" shall mean the Standard Specifications for Materials &Works of
Railway as specified by Railway under the authority of the Chief Engineer or as amplified,
added to or superseded by Special Specifications, if any.

(k) "Schedule of Rates of Railway" shall mean the Schedule of Rates issued under the
authority of the Chief Engineer from time to time.

(l) "Drawing" shall mean the maps, drawings, plans and tracings or prints there of annexed
to the contract and shall include any modifications of such drawings and further drawings as
may be issued by the Engineer from time to time.

(m) "Constructional Plant" shall mean all appliances or things of whatsoever nature required
for the execution, completion or maintenance of the works or temporary works (as hereinafter
defined) but does not include materials or other things intended to form or forming part of the
permanent work.

(n) "Temporary Works" shall mean all temporary works of every kind required for the
execution completion and/or maintenance of the works.

(o) "Site" shall mean the lands and other places on, under, in or through which the works
are to be carried out and any other lands or places provided by the Railway for the purpose of
the contract.

(p) "Period of Maintenance" shall mean the specified period of maintenance from the date
of completion of the works, as certified by the Engineer.

(q) ‘Contractor’s authorized Engineer’ shall mean a graduate Engineer or equivalent,

having more than 3 years experience in the relevant field of construction work involved in the
contract, duly approved by Engineer.

(r) Date of inviting tender shall be the date of publishing tender notice on IREPS website if
tender is published on website or the date of publication in newspaper in case tender is not
published on website.

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1. (2) Singular and Plural: Words importing the singular number shall also include the plural
and vice versa where the context requires.

1.(3) Headings and Marginal Headings: The headings and marginal headings in these
Standard General Conditions are solely for the purpose of facilitating reference and shall not
be deemed to be part thereof or be taken into consideration in the interpretation or construction
thereof the contract.

GENERAL OBLIGATIONS

2. (1) Execution Co-Relation and Intent of Contract Documents: The contract documents
shall be signed in triplicate by the Railway and the Contractor. The contract documents are
complementary and what is called for by anyone shall be as binding as if called for by all, the
intention of the documents is to include all labour and materials, equipments and transportation
necessary for proper execution of work. Materials or works not covered by or properly
inferable from any heading or class of the specifications shall not be supplied by the Railway
to the Contractors unless distinctly specified in the contract documents. Materials or works
described in words which so applied have a well-known technical or trade meaning, shall be
held to refer to such recognized standards.

2.(2) If a work is transferred from the jurisdiction of one Railway to another Railway or to a
Project authority or vice versa while contract is in subsistence, the contract shall be binding on
the Contractor and the Successor Railway/Project in the same manner & take effect in all
respects as if the Contractor and the Successor Railway/Project were parties thereto from the
inception and the corresponding officer or the Competent Authority in the Successor
Railway/Project will exercise the same powers and enjoy the same authority as conferred to the
Predecessor Railway/Project under the original contract/agreement entered into.

2. (3) If for administrative or other reasons the contract is transferred to the Successor
Railway, the contract shall, notwithstanding any things contained herein contrary there to, be
binding on the Contractor and the Successor Railway in the same manner and take effect in all
respects as if the Contractor and the Successor Railway had been parties thereto from the date
of this contract.

3. (1) Law Governing the Contract: The contract shall be governed by the law for the time
being in force in the Republic of India.

3.(2) Compliance to Regulations and Bye-Laws: The Contractor shall conform to the
provision of any statute relating to the works and regulations and bye-laws of any local
authority and of any water and lighting companies or undertakings, with whose system the
work is proposed to be connected and shall before making any variation from the drawings or
the specifications that may be necessitated by so confirming give to the Engineer notice
specifying the variation proposed to be made and the reason for making the variation and shall
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not carry out such variation until he has received instructions from the Engineer in respect
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.

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(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
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.

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(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.

(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
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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
of the Contractor to comply with this provision at any time will entitle the Railway to rescind
the contract under Clause 62 of these Conditions.

13. Relics and Treasures: All gold, silver, oil, other minerals of any description, all
precious stones, coins, treasures relics antiquities and other similar things which shall be found
in or upon the site shall be the property of the Railway and the Contractor shall duly preserve
the same to the satisfaction of the Railway and shall from time to time deliver the same to such
person or persons as the Railway may appoint to receive the same.

14. Excavated Material: The Contractor shall not sell or otherwise dispose of or remove
except for the purpose of this contract, the sand, stone, clay ballast, earth, trees, rock or other
substances or materials which may be obtained from any excavation made for the purpose of
the works or any building or produced upon the site at the time of delivery of the possession
thereof but all the substances, materials, buildings and produce shall be the property of the
Railway provided that the Contractor may, with the permission of the Engineer, use the same
for the purpose of the works either free of cost or pay the cost of the same at such rates as may
be determined by the Engineer.

15. Indemnity by Contractors: The Contractor shall indemnify and save harmless the
Railway from and against all actions, suit, proceedings, losses, costs, damages, charges, claims
and demands of every nature and description brought or recovered against the Railways by
reason of any act or omission of the Contractor, his agents or employees, in the execution of
the works or in his guarding of the same. All sums payable by way of compensation under any
of these conditions shall be considered as reasonable compensation to be applied to the actual
loss or damage sustained, and whether or not any damage shall have been sustained.

16.(1) Security Deposit: The Earnest Money deposited by the Contractor with his tender will
be retained by the Railways as part of security for the due and faithful fulfillment of the
contract by the Contractor. The Security Deposit shall be 5% of the contract value. Security
Deposit may be deposited by the Contractor before release of first on account bill in cash or
Term Deposit Receipt issued from Scheduled Bank, or may be recovered at the rate of 6% of
the bill amount till the full Security Deposit is recovered. Provided also that in case of
defaulting Contractor, the Railway may retain any amount due for payment to the Contractor
on the pending "on account bills" so that the amounts so retained (including amount
guaranteed through Performance Guarantee) may not exceed 10% of the total value of the
contract.

Further, in case of contracts having value equal to or more than ₹ 50 crore (Rs Fifty crore)
the Security Deposit may be deposited as Bank Guarantee Bond also, issued by a scheduled
bank after execution of contract documents, but before payment of 1st on account bill. Provided

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further that the validity of Bank Guarantee Bond shall be extended from time to time,
depending upon extension of contract granted in terms of Clause 17 of the Standard General
Conditions of Contract.

Further, in case Security Deposit has been submitted as Term Deposit Receipt/Bank Guarantee
Bond in full amount, the Earnest Money deposited by the Contractor with his tender will be
returned by the Railways.

Note: After the work is physically completed as certified by competent authority, Security
Deposit recovered from the running bills of a Contractor can be returned to him, if he so
desires, in lieu of Term Deposit Receipt/irrevocable Bank Guarantee for equivalent amount
from Scheduled Bank, to be submitted by him.

16.(2) (i) Refund of Security Deposit: Security Deposit mentioned in sub clause (1) above
shall be returned to the Contractor along with or after, the following:

(a) Final Payment of the Contract as per clause 51.(1) and

(b) Execution of Final Supplementary Agreement or Certification by Engineer that Railway
has No Claim on Contractor and
(c) Maintenance Certificate issued, on expiry of the maintenance period as per clause 50.(1),
in case applicable.

16. (2) (ii) Forfeiture of Security Deposit: Whenever the contract is rescinded as a whole under
clause 62 (1) of GCC, the Security Deposit already with railways under the contract shall be
forfeited. However, in case the contract is rescinded in part or parts under clause 62 (1) of
GCC, the Security Deposit shall not be forfeited.

16.(3) No interest shall be payable upon the Earnest Money and Security Deposit or amounts
payable to the Contractor under the Contract, but Government Securities deposited in terms of
Sub-Clause 16.(4)(b) of this clause will be payable with interest accrued thereon.

16.(4) Performance Guarantee

The procedure for obtaining Performance Guarantee is outlined below:

(a) The successful bidder shall have to submit a Performance Guarantee (PG) within 21
(Twenty one) days from the date of issue of Letter of Acceptance (LOA). Extension of
time for submission of PG beyond 21 (Twenty one) days and upto 60 days from the date
of issue of LOA may be given by the Authority who is competent to sign the contract
agreement. However, a penal interest of 12% per annum shall be charged for the delay
beyond 21(Twenty one) days, i.e. from 22nd day after the date of issue of LOA. Further, if
the 60th day happens to be a declared holiday in the concerned office of the Railway,
submission of PG can be accepted on the next working day.

In all other cases, if the Contractor fails to submit the requisite PG even after
60 days from the date of issue of LOA, the contract is liable to be terminated. In case
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contract is terminated railway shall be entitled to forfeit Earnest Money Deposit and other
dues payable against that contract. In case a tenderer has not submitted Earnest Money
Deposit on the strength of their registration as a Startup recognized by Department of
Industrial Policy and Promotion (DIPP) under Ministry of Commerce and Industry, DIPP
shall be informed to this effect.

The failed Contractor shall be debarred from participating in re-tender for that work.

(b) The successful bidder shall submit the Performance Guarantee (PG) in any of the
following forms, amounting to 5% of the contract value:
(i) A deposit of Cash;

(ii) Irrevocable Bank Guarantee;

(iii) Government Securities including State Loan Bonds at 5% below the market value;

(iv) Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds. These forms
of Performance Guarantee could be either of the State Bank of India or of any of the
Nationalized Banks;

(v) Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;

(vi) Deposit in the Post Office Saving Bank;

(vii) Deposit in the National Savings Certificates;

(viii) Twelve years National Defence Certificates;

(ix) Ten years Defence Deposits;

(x) National Defence Bonds and

(xi) Unit Trust Certificates at 5% below market value or at the face value whichever is
less. Also, FDR in favour of FA&CAO (free from any encumbrance) may be
accepted.

(c) The Performance Guarantee shall be submitted by the successful bidder after the Letter of
Acceptance (LOA) has been issued, but before signing of the contract agreement. This
P.G. shall be initially valid upto the stipulated date of completion plus 60 days beyond
that. In case, the time for completion of work gets extended, the Contractor shall get the
validity of P.G. extended to cover such extended time for completion of work plus 60
days.
(d) The value of PG to be submitted by the Contractor will not change for variation upto
25% (either increase or decrease). In case during the course of execution, value of the
contract increases by more than 25% of the original contract value, an additional
Performance Guarantee amounting to 5% (five percent) for the excess value over the
original contract value shall be deposited by the Contractor. On the other hand, if the
value of contract decreases by more than 25% of the original contract value, Performance
Guarantee amounting to 5% (five percent) of the decrease in the contract value shall be
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returned to the Contractor. The PG amount in excess of required PG for decreased

contract value, available with Railways, shall be returned to Contractor as per his request
duly safeguarding the interest of railways
(e) The Performance Guarantee (PG) shall be released after physical completion of the work
based on 'Completion Certificate' issued by the competent authority stating that the
Contractor has completed the work in all respects satisfactorily.
(f) Whenever the contract is rescinded, the Performance Guarantee already submitted for the
contract shall be encashed in addition to forfeiture of Security Deposit available with
railway.
(g) The Engineer shall not make a claim under the Performance Guarantee except for
amounts to which the President of India is entitled under the contract (not withstanding
and/or without prejudice to any other provisions in the contract agreement) in the event
of:
(i) Failure by the Contractor to extend the validity of the Performance Guarantee as
described herein above, in which event the Engineer may claim the full amount of
the Performance Guarantee.
(ii) Failure by the Contractor to pay President of India any amount due, either as agreed
by the Contractor or determined under any of the Clauses/Conditions of the
Agreement, within 30 days of the service of notice to this effect by Engineer.
(iii) The Contract being determined or rescinded under clause 62 of the GCC

(h) The tenderer who has offered lower total cost as compared to tender value by more than
10 %, shall be required to submit additional Performance Guarantee of value equal to half
the percentage of tender value by which offer is lower than 10%. (e.g. in a tender costing
Rs 100, if contract value is Rs 80, additional Performance Guarantee shall be
[0.5x{(100-80)-10}] percentage of tender value.)

17. Force Majeure Clause: If at any time, during the continuance of this contract, the
performance in whole or in part by either party of any obligation under this contract shall be
prevented or delayed by reason of any war, hostility, acts of public enemy, civil commotion,
sabotage, serious loss or damage by fire, explosions, epidemics/pandemics, strikes, lockouts or
acts of God (hereinafter, referred to events) provided, notice of the happening of any such
event is given by either party to the other within 30 days from the date of occurrence thereof,
neither party shall by reason of such event, be entitled to terminate this contract nor shall either
party have any claim for damages against the other in respect of such non-performance or
delay in performance, and works under the contract shall be resumed as soon as practicable
after such event has come to an end or ceased to exist, and the decision of the Engineer as to
whether the works have been so resumed or not shall be final and conclusive, PROVIDED
FURTHER that if the performance in whole or in part of any obligation under this contract is
prevented or delayed by reason of any such event for a period exceeding 120 days, either party
may at its option terminate the contract by giving notice to the other party.
17A Extension of Time in Contracts: Subject to any requirement in the contract as to
completion of any portion or portions of the works before completion of the whole, the
Contractor shall fully and finally complete the whole of the works comprised in the contract
(with such modifications as may be directed under conditions of this contract) by the date
entered in the contract or extended date in terms of the following clauses:

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(i) Extension due to Modification: If any modifications have been ordered which in the
opinion of the Engineer have materially increased the magnitude of the work, then such
extension of the contracted date of completion may be granted as shall appear to the
Engineer to be reasonable in the circumstances, provided moreover that the Contractor
shall be responsible for requesting such extension of the date as may be considered
necessary as soon as the cause thereof shall arise and in any case not less than one month
before the expiry of the date fixed for completion of the works.
(ii) Extension for Delay not due to Railway or Contractor: If in the opinion of the
Engineer, the progress of work has any time been delayed by any act or neglect of
Railway's employees or by other Contractor employed by the Railway under Sub-Clause
(4) of Clause 20 of these Conditions or in executing the work not forming part of the
contract but on which Contractor's performance necessarily depends or by reason of
proceeding taken or threatened by or dispute with adjoining or to neighbouring owners or
public authority arising otherwise through the Contractor's own default etc. or by the
delay authorized by the Engineer pending arbitration or in consequences of the
Contractor not having received in due time necessary instructions from the Railway for
which he shall have specially applied in writing to the Engineer or his authorized
representative then upon happening of any such event causing delay, the Contractor shall
immediately give notice thereof in writing to the Engineer within 15 days of such
happening, but shall nevertheless make constantly his best endeavours to bring down or
make good the delay and shall do all that may be reasonably required of him to the
satisfaction of the Engineer to proceed with the works. The Contractor may also indicate
the period for which the work is likely to be delayed and shall be bound to ask for
necessary extension of time. The Engineer on receipt of such request from the Contractor
shall consider the same and shall grant such extension of time as in his opinion is
reasonable having regard to the nature and period of delay and the type and quantum of
work affected thereby. No other compensation shall be payable for works so carried
forward to the extended period of time; the same rates, terms and conditions of contract
being applicable as if such extended period of time was originally provided in the
original contract itself.
(iii) Extension for Delay due to Railways: In the event of any failure or delay by the
Railway to hand over the Contractor possession of the lands necessary for the execution
of the works or to give the necessary notice to commence the works or to provide the
necessary drawings or instructions or any other delay caused by the Railway due to any
other cause whatsoever, then such failure or delay shall in no way affect or vitiate the
contract or alter the character thereof or entitle the Contractor to damages or
compensation therefor, but in any such case, the Railway may grant such extension or
extensions of the completion date as may be considered reasonable.

17B Extension of Time with Liquidated Damages (LD) for delay due to Contractor: The
time for the execution of the work or part of the works specified in the contract
documents shall be deemed to be the essence of the contract and the works must be
completed not later than the date(s) as specified in the contract. If the Contractor fails to
complete the works within the time as specified in the contract for the reasons other than
the reasons specified in Clause 17 and 17-A, the Railway may, if satisfied that the works
can be completed by the Contractor within reasonable short time thereafter, allow the
Contractor for further extension of time (Proforma at Annexure-VII) as the Engineer may

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decide. On such extension the Railway will be entitled without prejudice to any other
right and remedy available on that behalf, to recover from the Contractor as agreed
damages and not by way of penalty for each week or part of the week, a sum calculated at
the following rates of the contract value of the works.

For the purpose of this Clause, the contract value of the works shall be taken as value of
work as per contract agreement including any supplementary work order/contract agreement
issued. Provided also, that the total amount of liquidated damages under this condition shall
not exceed 5% of the contract value or of the total value of the item or groups of items of work
for which a separate distinct completion period is specified in the contract.

S.No. Duration of extension of time under Clause 17-B Rate of Liquidated Damages

(i) Up to Twenty percent of original period of As decided by Engineer,

completion including period of extension of between 0.01% to 0.10% of
DOC granted under Section 17A(i) contract value for each week
or part of the week
(ii) Above Twenty percent but upto Thirty percent of 0.20% of contract value for
original period of completion including period of each week or part of the week
extension of DOC granted under Section 17A(i)
(iii) Above Thirty percent but upto Forty percent of 0.30% of contract value for
original period of completion including period of each week or part of the week
extension of DOC granted under Section 17A(i)
(iv) Above Forty percent of original period of 0.50% of contract value for
completion including period of extension of each week or part of the week
DOC granted under Section 17A(i)

Provided further, that if the Railway is not satisfied that the works can be completed by
the Contractor and in the event of failure on the part of the contractor to complete the work
within further extension of time allowed as aforesaid, the Railway shall be entitled without
prejudice to any other right or remedy available in that behalf, to appropriate the contractor’s
Security Deposit and rescind the contract under Clause 62 of these Conditions, whether or not
actual damage is caused by such default.

17C Bonus for Early Completion of Work: In case of open tenders having value more than
Rs 20 crore and original period of completion 12 months or more, when there is no reduction
in original scope of work by more than 10%, and no extension granted on either railway or
Contractor’s account, Contractor shall be entitled for a bonus of 1% for each 30 days early
completion of work. The period of less than 30 days shall be ignored while working out bonus.
The maximum bonus shall be limited to 3% of original contract value. The completion date
shall be reckoned as the date of issuance of completion certificate by engineer.

18.(1) Illegal Gratification: Any bribe, commission, gift or advantage given, promised or
offered by or on behalf of the Contractor or his partner or agent or servant or anyone on his

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behalf, to any officer or employee of the Railway or to any person on his behalf in relation to
obtaining or execution of this or any other contract with the Railway shall, in addition to any
criminal liability which he may incur, subject Contractor to the rescission of the contract and
all other contracts with the Railway and to the payment of any loss or damage resulting from
such decision and the Railway shall be entitled to deduct the amounts so payable from the
Contractor’s bills/Security Deposit or any other dues of Contractor with the Government of
India.

18.(2) The Contractor shall not lend or borrow from or have or enter into any monitory
dealings or transactions either directly or indirectly with any employee of the Railway and if
he shall do so, the Railway shall be entitled forthwith to rescind the contract and all other
contracts with the Railway. Any question or dispute as to the commission of any such offence
or compensation payable to the Railway under this Clause shall be settled by the General
Manager of the Railway, in such a manner as he shall consider fit & sufficient and his decision
shall be final & conclusive. In the event of rescission of the contract under this Clause, the
Contractor will not be paid any compensation whatsoever except payments for the work done
upto the date of rescission.

EXECUTION OF WORKS

19.(1) Contractor's understanding: It is understood and agreed that the Contractor has, by
careful examination, satisfied himself as to the nature and location of the work, the
conformation of the ground, the character, quality and quantity of the materials to be
encountered, the character of equipment and facilities needed preliminary to and during the
progress of the works, the general and local conditions, the labour conditions prevailing therein
and all other matters which can in any way affect the works under the contract.

19.(2) Commencement of Works: The Contractor shall commence the works within 15
days after the receipt by him of an order in writing to this effect from the Engineer and shall
proceed with the same with due expedition and without delay

19.(3) Accepted Programme of Work: The Contractor who has been awarded the work
shall as soon as possible but not later than 30 days after the date of receipt of the acceptance
letter in respect of contracts with initial completion period of two years or less or not later than
90 days for other contracts have to submit the detailed programme of work indicating the time
schedule of various items of works in the form of Bar Chart/PERT/CPM. He shall also submit
the details of organisation (in terms of labour and supervisors), plant and machinery that he
intends to utilize (from time to time) for execution of the work within stipulated date of
completion. The programme of work amended as necessary by discussions with the Engineer,
shall be treated as the agreed programme of the work for the purpose of this contract and the
Contractor shall endeavor to fulfill this programme of work. The progress of work will be
watched accordingly and the liquidated damages will be with reference to the overall

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completion date. Nothing stated herein shall preclude the Contractor in achieving earlier
completion of item or whole of the works than indicated in the programme.

19.(4) Setting out of Works: The Contractor shall be responsible for the correct setting out
of all works in relation to original points, lines and levels of reference at his cost. The
Contractor shall execute the work true to alignment, grade, levels and dimensions as shown in
the drawing and as directed by the Engineer's representative and check these at frequent
intervals. The Contractor shall provide all facilities like labour and instruments and shall co-
operate with the Engineer's representative for checking of all alignment, grades, levels and
dimensions. If, at any time, during the progress of the works any error appear or arise in any
part of the work, the Contractor, on being required so to do by the Engineer's representative
shall, at his own cost rectify such errors, to the satisfaction of the Engineer's representative.

Such checking shall not absolve the Contractor of his own responsibility of maintaining
accuracy in the work. The Contractor shall carefully protect and preserve all bench marks,
sight rails, pegs and other things used in setting out the work.

20.(1) Compliance to Engineer’s Instructions: The Engineer shall direct the order in which
the several parts of the works shall be executed and the Contractor shall execute without delay
all orders given by the Engineer from time to time; but the Contractor shall not be relieved
thereby from responsibility for the due performance of the works in all respects.

20.(2) Alterations to be Authorized: No alterations in or additions to or omissions or

abandonment of any part of the works shall be deemed authorised, except under instructions
from the Engineer. The Contractor shall be responsible to obtain such instructions in each and
every case in writing from the Engineer.

20.(3) Extra Works: Should works over and above those included in the contract require to
be executed at the site, the Contractor shall have no right to be entrusted with the execution of
such works which may be carried out by another Contractor or Contractors or by other means
at the option of the Railway.

20.(4) Separate Contracts in Connection with Works: The Railway shall have the right to
let other contracts in connection with the works. The Contractor shall afford other Contractors
reasonable opportunity for the storage of their materials and the execution of their works and
shall properly connect and coordinate his work with theirs. If any part of the Contractor’s
work depends upon proper execution or result upon the work of another Contractor(s), the
Contractor shall inspect and promptly report to the Engineer any defects in such works that
render it unsuitable for such proper execution and results. The Contractor's failure so-to
inspect and report shall constitute an acceptance of the other Contractor's work as fit and
proper for the reception of his work, except as to defects which may develop in the other
Contractor's work after the execution of his work.

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21. Instruction of Engineer's Representative: Any instructions or approval given by the

Engineer's representative to Contractor in connection with the works shall bind the Contractor
as though it had been given by the Engineer provided always as follows:

(a) Failure of the Engineer's representative to disapprove any work or materials shall not
prejudice the power of the Engineer thereafter to disapprove such work or material and to
order the removal or breaking up thereof.

(b) If the Contractor shall be dissatisfied by reason of any decision of the Engineer's
representative, he shall be entitled to refer the matter to the Engineer who shall there
upon confirm or vary such decision.

22.(1) Adherence to Specifications and Drawings: The whole of the works shall be
executed in perfect conformity with the specifications and drawings of the contract. If
Contractor performs any works in a manner contrary to the specifications or drawings or any
of them and without such reference to the Engineer, he shall bear all the costs arising or
ensuing therefrom and shall be responsible for all loss to the Railway.

22.(2) Drawings and Specifications of the Works: The Contractor shall keep one copy of
Drawings and Specifications at the site, in good order, and such contract documents as may be
necessary, available to the Engineer or the Engineer's Representative.

22.(3) Ownership of Drawings and Specifications: All Drawings and Specifications and
copies thereof furnished by the Railway to the Contractor are deemed to be the property of the
Railway. They shall not be used on other works and with the exception of the signed contract
set, shall be returned by the Contractor to the Railway on completion of the work or
termination of the Contract.

22.(4) Compliance with Contractor's Request for Details: The Engineer shall furnish with
reasonable promptness, after receipt by him of the Contractor's request, additional instructions
by means of drawings or otherwise, necessary for the proper execution of the works or any
part thereof. All such drawings and instructions shall be consistent with the Contract
Documents and reasonably inferable there from.

22.(5) Meaning and Intent of Specification and Drawings: If any ambiguity arises as to
the meaning and intent of any portion of the Specifications and Drawings or as to execution or
quality of any work or material, or as to the measurements of the works the decision of the
Engineer thereon shall be final subject to the appeal (within 7 days of such decision being
intimated to the Contractor) to the Chief Engineer who shall have the power to correct any
errors, omissions, or discrepancies in aforementioned items and whose decision in the matter
in dispute or doubt shall be final and conclusive.

23. Working during Night: The Contractor shall not carry out any work between sun-set
and sun-rise without the previous permission of the Engineer. However, if the Engineer is
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satisfied that the work is not likely to be completed in time except by resorting to night work,
he may order the same without confirming any right on the Contractor for claiming any extra
payment for the same.

24. Damage to Railway Property or Private Life and Property: The Contractor shall be
responsible for all risk to the work and for trespass and shall make good at his own expense all
loss or damage whether to the works themselves or to any other property of the Railway or the
lives, persons or property of others from whatsoever cause in connection with the works until
they are taken over by the Railway, although all reasonable and proper precautions may have
been taken by the Contractor. In case the Railway shall be called upon to make good any costs,
loss or damages, or to pay any compensation, including that payable under the provisions of
the Workmen's Compensation Act or any statutory amendments thereof to any person or
persons sustaining damages as aforesaid by reason of any act, or any negligence or omissions
on the part of the Contractor; the amount of any costs or charges including costs and charges
in connection with legal proceedings, which the Railway may incur in reference thereto, shall
be charged to the Contractor. The Railway shall have the power and right to pay or to defend
or compromise any claim of threatened legal proceedings or in anticipation of legal
proceedings being instituted consequent on the action or default of the Contractor, to take such
steps as may be considered necessary or desirable to ward off or mitigate the effect of such
proceedings, charging to Contractor, as aforesaid; any sum or sums of money which may be
paid and any expenses whether for reinstatement or otherwise which may be incurred and the
propriety of any such payment, defence or compromise, and the incurring of any such
expenses shall not be called in question by the Contractor.

25. Sheds, Storehouses and Yards: The Contractor shall at his own expense provide
himself with sheds, storehouses and yards in such situations and in such numbers as in the
opinion of the Engineer is requisite for carrying on the works and the Contractor shall keep at
each such sheds, storehouses and yards a sufficient quantity of materials and plant in stock as
not to delay the carrying out of the works with due expedition and the Engineer and the
Engineer's representative shall have free access to the said sheds, store houses and yards at any
time for the purpose of inspecting the stock of materials or plant so kept in hand, and any
materials or plant which the Engineer may object to shall not be brought upon or used in the
works, but shall be forthwith removed from the sheds, storehouses or yards by the Contractor.
The Contractor shall at his own expenses provide and maintain suitable mortar mills, soaking
vats or any other equipments necessary for the execution of the works.

26. Provision of Efficient and Competent Staff at Work Sites by the Contractor:
26.1 The Contractor shall place and keep on the works at all times efficient and competent
staff to give the necessary directions to his workmen and to see that they execute their work in
sound & proper manner and shall employ only such supervisors, workmen & labourers in or
about the execution of any of these works as are careful and skilled in the various trades.

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26.2 The Contractor shall at once remove from the works any agents, permitted sub-
contractor, supervisor, workman or labourer who shall be objected to by the Engineer and if
and whenever required by the Engineer, he shall submit a correct return showing the names of
all staff and workmen employed by him.
26.3 In the event of the Engineer being of the opinion that the Contractor is not employing
on the works a sufficient number of staff and workmen as is necessary for proper completion
of the works within the time prescribed, the Contractor shall forthwith on receiving intimation
to this effect deploy the additional number of staff and labour as specified by the Engineer
within seven days of being so required and failure on the part of the Contractor to comply
with such instructions will entitle the Railway to rescind the contract under Clause 62 of these
conditions.

26A. Deployment of Qualified Engineers at Work Sites by the Contractor:

26A.1 The Contractor shall also employ qualified Graduate Engineer(s) or equivalent, or
qualified Diploma Engineer(s), as prescribed in the tender documents.
26A.2 In case the Contractor fails to employ the Engineer, as aforesaid in Para 26A.1, he
shall be liable to pay liquidated damages at the rates, as prescribed in the tender documents.
26A.3 No. of qualified Engineers required to be deployed by the Contractor for various
activities contained in the works contract shall be specified in the tender documents as
‘Special Condition of Contract’.

27.(1) Workmanship and Testing: The whole of the works and/or supply of materials
specified and provided in the contract or that may be necessary to be done in order to form and
complete any part thereof shall be executed in the best and most substantial workman like
manner with materials of the best and most approved quality of their respective kinds,
agreeable to the particulars contained in or implied by the specifications and as referred to in
and represented by the drawings or in such other additional particulars, instructions and
drawings given during the carrying on of the works and to the entire satisfaction of the
Engineer according to the instructions and directions which the Contractors may from time to
time receive from the Engineer. The materials may be subjected to tests by means of such
machines, instruments and appliances as the Engineer may direct and wholly at the expense of
the Contractor.

27.(2) Removal of Improper Work and Materials: The Engineer or the Engineer's
Representative shall be entitled to order from time to time:

(a) The removal from the site, within the time specified in the order, of any materials which in
his opinion are not in accordance with the specifications or drawings.

(b) The substitution of proper and suitable materials, and

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(c) the removal and proper re-execution, notwithstanding any previous tests thereof or on
account payments therefor, of any work which in respect of materials or workmanship is not in
his opinion in accordance with the specifications and in case of default on the part of the
Contractor in carrying out such order, the Railway shall be entitled to rescind the contract
under Clause 62 of these conditions.

(d) The provision of Construction and Demolition Waste Management Rule 2016 issued by
Ministry of Environment Forest and Climate Change dated 29.03.2016 and published in the
Gazette of India, Part – II, Section -3, Sub-section (ii) are binding upon the Contractor.
Contractor shall implement these provisions at worksites, for which no extra payment will be
payable.

28. Facilities for Inspection: The Contractor shall afford the Engineer and the Engineer's
Representative every facility for entering in and upon every portion of the work at all hours for
the purpose of inspection or otherwise and shall provide all labour, materials, planks, ladders,
pumps, appliances and things of every kind required for the purpose and the Engineer and the
Engineer's Representative shall at all times have free access to every part of the works and to
all places at which materials for the works are stored or being prepared.

29. Examination of Work before Covering Up: The Contractor shall give 7 days’ notice
to the Engineer or the Engineer's Representative whenever any work or materials are intended
to be covered up in the earth, in bodies or walls or otherwise to be placed beyond the reach of
measurements in order that the work may be inspected or that correct dimensions may be taken
before being so covered, placed beyond the reach of measurement in default whereof, the same
shall at the option of the Engineer or the Engineer's Representative be uncovered and measured
at the Contractor's expense or no allowance shall be made for such work or materials.

30. Temporary Works: All temporary works necessary for the proper execution of the
works shall be provided and maintained by the Contractor and subject to the consent of the
Engineer shall be removed by him at his expenses when they are no longer required and in
such manner as the Engineer shall direct. In the event of failure on the part of the Contractor to
remove the temporary works, the Engineer will cause them to be removed and cost as
increased by supervision and other incidental charges shall be recovered from the Contractor.
If temporary huts are provided by the Contractor on the Railway land for labour engaged by
him for the execution of works, the Contractor shall arrange for handing over vacant
possession of the said land after the work is completed; if the Contractor's labour refuse to
vacate, and have to be evicted by the Railway, necessary expenses incurred by the Railway in
connection therewith shall be borne by the Contractor.

31.(1) Contractor to Supply Water for Works: Unless otherwise provided in the Contract,
the Contractor shall be responsible for the arrangements to obtain supply of water necessary
for the works.

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31.(2) Water Supply from Railway System: The Railway may supply to the Contractor part
or whole of the quantity of the water required for the execution of works from the Railway's
existing water supply system at or near the site of works on specified terms and conditions and
at such charges as shall be determined by the Railway and payable by the Contractor, provided
that the Contractor shall arrange, at his own expense, to effect the connections and lay
additional pipelines and accessories on the site and that the Contractor shall not be entitled to
any compensation for interruption of failure of the water supply.

31.(3) Water Supply by Railway Transport: In the event of the Railway arranging supply of
water to the Contractor at or near the site of works by travelling water tanks or other means,
the freight and other charges incurred thereby, including demurrage charges that may be
levied, shall be paid by the Contractor in addition to the charges referred to in Sub-Clause (2)
of the Clause provided that the Contractor shall not be entitled to any compensation for
interruption or failure of the water supply.

31.(4)(a) Contractor to Arrange Supply of Electric Power for Works: Unless

otherwise provided in the contract, the Contractor shall be responsible for arrangements to
obtain supply of Electric Power for the works.

(b) Electric Supply from the Railway System: The Railway may supply to the Contractor
part or whole of the electric power wherever available and possible, required for execution of
works from the Railway's existing electric supply systems at or near the site of works on
specified terms and conditions and such charges as shall be determined by the Railway and
payable by the Contractor provided the cost of arranging necessary connections to the
Railway's Electric Supply systems and laying of underground/overhead conductor, circuit
protection, electric power meters, transmission structure, shall be borne by the Contractor and
that the Contractor shall not be entitled to any compensation for interruption or failure of the
Electric supply system.

32. Property in Materials and Plant: The materials and plant brought by the Contractor
upon the site or on the land occupied by the Contractor in connection with the works and
intended to be used for the execution thereof shall immediately be deemed to be the property
of the Railway. Such of them as during the progress of the works are rejected by the Engineer
under Clause 25 of these conditions or are declared by him not to be needed for the execution
of the works or such as on the grant of the certificate of completion remain unused shall
immediately on such rejection, declaration or grant cease to be deemed the property of the
Railway and the Contractor may then (but not before) remove them from the site or the said
land. This clause shall not in any way diminish the liability of the Contractor nor shall the
Railway be in any way answerable for any loss or damage which may happen to or in respect
of any such materials or plant either by the same being lost, stolen, injured or destroyed by fire,
tempest or otherwise.

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33.(1) Tools, Plant and Materials Supplied by Railway: The Contractor shall take all
reasonable care of all tools, plant and materials or other property whether of a like description
or not belonging to the Railway and committed to his charge for the purpose of the works and
shall be responsible for all damage or loss caused by him, his agents, permitted sub-contractor,
or his workmen or others while they are in his charge. The Contractors shall sign accountable
receipts for tools, plants and materials made over to him by the Engineer and on completion of
the works shall hand over the unused balance of the same to the Engineer in good order and
repair, fair wear and tear excepted, and shall be responsible for any failure to account for the
same or any damage done thereto.

33.(2) Hire of Railway's Plant: The Railway may hire to the Contractor such plant as
concrete mixers, compressors and portable engines for use during execution of the works on
such terms as may be specified in the special conditions or in a separate agreement for Hire of
Plant.

34.(1) Precaution During Progress of Works: During the execution of works, unless
otherwise specified, the Contractor shall at his own cost provide the materials for and execute
all shoring, timbering and strutting works as is necessary for the stability and safety of all
structures, excavations and works and shall ensure that no damage, injury or loss is caused or
likely to be caused to any person or property.

34.(2) Roads and Water Courses: Existing roads or water courses shall not be blocked cut
through, altered, diverted or obstructed in any way by the Contractor, except with the
permission of the Engineer. All compensations claimed for any unauthorized closure, cutting
through, alteration, diversion or obstruction to such roads or water courses by the Contractor or
his agent or his staff shall be recoverable from the Contractor’s bills/Security Deposit or any
other dues of Contractor with the Government of India.

34.(3) Provision of Access to Premises: During progress of work in any street or

thoroughfare, the Contractor shall make adequate provision for the passage of traffic, for
securing safe access to all premises approached from such street or thoroughfare and for any
drainage, water supply or means of lighting which may be interrupted by reasons of the
execution of the works and shall react and maintain at his own cost barriers, lights and other
safeguards as prescribed by the Engineer, for the regulation of the traffic, and provide
watchmen necessary to prevent accidents. The works shall in such cases be executed night and
day, if so ordered by the Engineer and with such vigour so that the traffic way be impeded for
as short a time as possible.

34.(4) Safety of Public: The Contractor shall be responsible to take all precautions to ensure
the safety of the public whether on public or railway property and shall post such look out men
as may, in the opinion of the Engineer, be required to comply with regulations appertaining to
the work. Contractor shall ensure placement of barricading / partitions at the place of work to

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ensure safety of habitants of adjacent area, failing which Engineer may advise stoppage of
work as per his discretion.

34.(5) Display Board: The Contractor shall be responsible for displaying the details of works
i.e. name of work, approximate cost, expected date of completion, name and address of the
Contractor and address of Engineer on a proper steel Board of size not less than 1m x 1m.

35. Use of Explosives: Explosives shall not be used on the works or on the site by the
Contractor without the permission of the Engineer and then also only in the manner and to the
extent to which such permission is given. Where explosives are required for the works, they
shall be stored in a special magazine to be provided by and at the cost of the Contractor in
accordance with the Explosive Rules. The Contractor shall obtain the necessary license for the
storage and the use of explosives. All operations in which or for which explosives are
employed shall be at the sole risk and responsibility of the Contractor and the Contractor shall
indemnify the Railway in respect thereof.

36.(1) Suspension of Works: The Contractor shall on the order of the Engineer, suspend the
progress of the works or any part thereof for such time or times and in such manner as the
Engineer may consider necessary and shall during such suspension properly protect and secure
the work so far as is necessary in the opinion of the Engineer. If such suspension is:

(a) Provided for in the contract, or

(b) Necessary for the proper execution of the works or by the reason of weather
conditions or by some default on the part of the Contractor, and or

(c) Necessary for the safety of the works or any part thereof.

36.(2) The Contractor shall not be entitled to the extra costs, if any, incurred by him during
the period of suspension of the works, but in the event of any suspension ordered by the
Engineer for reasons other than aforementioned and when each such period of suspension
exceeds 14 days, the Contractor shall be entitled to such extension of time for completion of
the works as the Engineer may consider proper having regard to the period or periods of such
suspensions and to such compensations as the Engineer may consider reasonable in respect of
salaries or wages paid by the Contractor to his employees during the periods of such
suspension.

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36.(3) Suspension Lasting More than 3 Months: If the progress of the works or any part
thereof is suspended on the order of the Engineer for more than three months at a time, the
Contractor may serve a written notice on the Engineer requiring permission within 15 days
from the receipt thereof to proceed with the works or that part thereof in regard to which
progress is suspended and if such permission is not granted within that time the Contractor by
further written notice so served may, but is not bound to, elect to treat the suspension where it
affects part only of the works as an omission of such part or where it affects the whole of the
works, as an abandonment of the contract by the Railway.

37. Rates for Items of Works:

(i) The rates, entered in the accepted Schedule of Rates of the Contract are intended to provide
for works duly and properly completed in accordance with the General and Special (if any)
Conditions of the Contract and the Specifications and drawings together with such
enlargements, extensions, diminutions, reductions, alterations or additions as may be ordered
in terms of Clause 42 of these conditions and without prejudice to the generality thereof and
shall be deemed to include and cover superintendence and labour, supply, including full freight
of materials, stores, patterns, profiles, moulds, fittings, centerings, scaffolding, shoring props,
timber, machinery, barracks, tackle, roads, pegs, posts, tools and all apparatus and plant
required on the works, except such tools, plant or materials as may be specified in the contract
to be supplied to the Contractor by the Railway, the erection, maintenance and removal of all
temporary works and buildings, all watching, lighting, bailing, pumping and draining, all
prevention of or compensation for trespass, all barriers and arrangements for the safety of the
public or of employees during the execution of works, all sanitary and medical arrangements
for labour camps as may be prescribed by the Railway, the setting of all work and of the
construction, repair and upkeep of all centre lines, bench marks and level pegs thereon, site
clearance, all fees duties, royalties, rent and compensation to owners for surface damage or
taxes and impositions payable to local authorities in respect of land, structures and all material
supplied for the work or other duties or expenses for which the Contractor may become liable
or may be put to under any provision of law for the purpose of or in connection with the
execution of the contract and all such other incidental charges or contingencies as may have
been specially provided for in the Specifications.

However, if rates of existing GST or cess on GST for Works Contract is increased or
any new tax /cess on Works Contract is imposed by Statute after the date of opening of tender
but within the original date of completion/date of completion extended under clause 17 & 17A
and the Contractor thereupon properly pays such taxes/cess, the Contractor shall be reimbursed
the amount so paid.

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Further, if rates of existing GST or cess on GST for Works Contract is decreased or
any tax/cess on Works Contract is decreased / removed by Statute after the date of opening of
tender, the reduction in tax amount shall be recovered from Contractor’s bills/Security Deposit
or any other dues of Contractor with the Government of India.

38. Demurrage and Wharfage Dues: Demurrage charges calculated in accordance with
the scale in force for the time being on the Railway and incurred by the Contractor failing to
load or unload any goods or materials within the time allowed by the Railway for loading as
also wharfage charges, of materials not removed in time, as also charges due on consignments
booked by or to him shall be paid by the Contractor, failing which such charges shall be
debited to the Contractor's account in the hands of the Railway and shall be deducted from any
sums which may become due to him in terms of the contracts.

39.(1) Rates for Extra Items of Works: Any item of work carried out by the Contractor on
the instructions of the Engineer which is not included in the accepted Schedules of Rates shall
be executed at the rates set forth in the "Schedule of Rates of Railway" modified by the tender
percentage, and for such items not contained in the latter, at the rate agreed upon between the
Engineer and the Contractor before the execution of such items of work and the Contractors
shall be bound to notify the Engineer at least seven days before the necessity arises for the
execution of such items of works that the accepted Schedule of Rates does not include rate or
rates for the extra work involved. The rates payable for such items shall be decided at the
meeting to be held between the Engineer and Contractor, in as short a period as possible after
the need for the special item has come to the notice. In case the Contractor fails to attend the
meeting after being notified to do so or in the event of no settlement being arrived at, the
Railway shall be entitled to execute the extra works by other means and the Contractor shall
have no claim for loss or damage that may result from such procedure.

The assessment of rates for extra items shall be arrived at based on the prevailing rates and by
taking guidance from the following documents in order of priority:

(i) Analysis of Unified Schedule of Rates of Indian Railways

(ii) Analysis of Delhi Schedule of Rates issued by CPWD
(iii) Market Analysis

39.(2) Provided that if the Contractor commences work or incurs any expenditure in regard
thereto before the rates as determined and agreed upon as lastly hereuntofore-mentioned, then
and in such a case the Contractor shall only be entitled to be paid in respect of the work carried
out or expenditure incurred by him prior to the date of determination of the rates as aforesaid
according to the rates as shall be fixed by the Engineer. However, if the Contractor is not
satisfied with the decision of the Engineer in this respect, he may appeal to the Chief Engineer
within 30 days of getting the decision of the Engineer, supported by analysis of the rates
claimed. The Chief Engineer's decision after hearing both the parties in the matter would be
final and binding on the Contractor and the Railway.
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40.(1) Handing over of Works: The Contractor shall be bound to hand over the works
executed under the contract to the Railway complete in all respects to the satisfaction of the
Engineer. The Engineer shall determine the date on which the work is considered to have been
completed, in support of which his certificate shall be regarded as sufficient evidence for all
purposes. The Engineer shall determine from time to time, the date on which any particular
section of the work shall have been completed, and the Contractor shall be bound to observe
any such determination of the Engineer.

40.(2) Clearance of Site on Completion: On completion of the works, the Contractor shall
clear away and remove from the site all constructional plant, surplus materials, rubbish and
temporary works of every kind and leave the whole of the site and works clean and in a
workman like condition to the satisfaction of the Engineer. No final payment in settlement of
the accounts for the works shall be paid, held to be due or shall be made to the, Contractor till,
in addition to any other condition necessary for final payment, site clearance shall have been
affected by him, and such clearance may be made by the Engineer at the expense of the
Contractor in the event of his failure to comply with this provision within 7 days after
receiving notice to that effect. Should it become necessary for the Engineer to have the site
cleared at the expenses of the Contractor, the Railway shall not be held liable for any loss or
damage to such of the Contractor's property as may be on the site and due to such removal
there from which removal may be affected by means of public sales of such materials and
property or in such a way as deemed fit and convenient to the Engineer.

Clause 40A: At the final stage of completion and commissioning of work, in case the
contractor’s failure is limited to only some of the works costing not more than 2% of the
original contract value, and the Contractor request the engineer that such works may be
offloaded from him and got executed through another agency and additional cost incurred, if
any, should be recovered from his dues; the Engineer on being convinced that the anticipated
additional cost for such works will not be substantial and can be recovered from the dues of the
contractor and that such offloading will help in completion and commissioning of work, may
agree to such offloading without any adverse repercussion on the performance guarantee and
security deposit of the Contractor. However, the Engineer will not be under any compulsion to
agree to such a request. Further, before issuing letter of acceptance to another agency for such
work, the Contractor shall be informed of the rates at which the work will be got executed and
the Contractor should give his consent to do so and certify that he would have no future claim
on this account and that the extra expenditure so incurred, if any, by the Engineer in getting the
offloaded work done, shall be recovered from subsequent Bills or any other dues of the
Contractor. In case the Contractor fails to give such consent within three working days, the
Engineer may treat the same as not acceptable to Contractor and proceed accordingly. In any
case, Railway shall deduct 10% of cost of such work or Rs one lakh whichever is lower, from
the Contractor’s dues as administrative charges for the process of finalizing new agency for
such work irrespective of whether or not such work is finally offloaded from Contractor or
not.
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VARIATIONS IN EXTENT OF CONTRACT

41. Modification to Contract to be in Writing: In the event of any of the provisions of the
contract required to be modified after the contract documents have been signed, the
modifications shall be made in writing and signed by the Railway and the Contractor and no
work shall proceed under such modifications until this has been done. Any verbal or written
arrangement abandoning, modifying, extending, reducing or supplementing the contract or any
of the terms thereof shall be deemed conditional and shall not be binding on the Railway
unless and until the same is incorporated in a formal instrument and signed by the Railway and
the Contractor, and till then the Railway shall have the right to repudiate such arrangements.

42.(1) Powers of Modification to Contract: The Engineer on behalf of the Railway shall be
entitled by order in writing to enlarge or extend, diminish or reduce the works or make any
alterations in their design, character position, site, quantities, dimensions or in the method of
their execution or in the combination and use of materials for the execution thereof or to order
any additional work to be done or any works not to be done and the Contractor will not be
entitled, to any compensation for any increase/reduction in the quantities of work but will be
paid only for the actual amount of work done and for approved materials supplied against a
specific order.

42.(2) (i) Unless otherwise specified in the special conditions of the contract, the accepted
variation in quantity of each individual item of the contract would be upto 25% of the quantity
originally contracted, except in case of foundation work.

(ii) The Contractor shall be bound to carry out the work at the agreed rates and shall not be
entitled to any claim or any compensation whatsoever upto the limit of 25% variation in
quantity of individual item of works.

(iii) In case an increase in quantity of an individual item by more than 25% of the agreement
quantity is considered unavoidable, then same shall be executed at following rates

(a) Quantities operated in excess of 125% but upto 140% of the agreement quantity of the
concerned item, shall be paid at 98% of the rate awarded for that item in that particular
tender;
(b) Quantities operated in excess of 140% but upto 150% of the agreement quantity of the
concerned item shall be paid at 96% of the rate awarded for that item in that particular
tender;
(c) Variation in quantities of individual items beyond 150% will be avoided and would be
permitted only in exceptional unavoidable circumstances and shall be paid at 96% of
the rate awarded for that item in that particular tender.

(d) Variation to quantities of Minor Value Item:

The limit for varying quantities for minor value items shall be 100% (as against 25%
prescribed for other items). A minor value item for this purpose is defined as an item
whose original agreement value is less than 1 % of the total original agreement value.

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d.(i) Quantities operated upto and including 100% of the agreement quantity of the
concerned minor value item, shall be paid at the
rate awarded for that item in that particular tender;
d.(ii) Quantities operated in excess of 100% but upto 200% of the agreement quantity
of the concerned minor value item, shall be paid at 98% of the rate awarded for that
item in that particular tender;
d.(iii) Variation in quantities of individual minor value item beyond 200% will be
avoided and would be permitted only in exceptional unavoidable circumstances and
shall be paid at 96% of the rate awarded for that item in that particular tender.

(iv) In case of earthwork, the variation limit of 25% shall apply to the gross quantity of
earthwork and variation in the quantities of individual classifications of soil shall not be
subject to this limit.

(v) In case of foundation work, no variation limit shall apply and the work shall be carried out
by the Contractor on agreed rates irrespective of any variation.

(vi) As far as SOR items are concerned, the limit of 25% would apply to the value of SOR
schedule as a whole and not on individual SOR items. However, in case of NS items, the limit
of 25% would apply on the individual items irrespective of the manner of quoting the rate
(single percentage rate or individual item rate).

42.(3) Valuation of Variations: The enlargements, extensions, diminution, reduction,

alterations or additions referred to in Sub-Clause (2) of this Clause shall in no degree affect the
validity of the contract; but shall be performed by the Contractor as provided therein and be
subject to the same conditions, stipulations and obligations as if they had been originally and
expressively included and provided for in the Specifications and Drawings and the amounts to
be paid therefor shall be calculated in accordance with the accepted Schedule of Rates. Any
extra items/quantities of work falling outside the purview of the provisions of Sub-Clause (2)
above shall be paid for at the rates determined under Clause-39 of these Conditions.

CLAIMS

43.(1) Quarterly Statement of Claims: The Contractor shall prepare and furnish to the
Engineer once in every quarter commencing from the month following the month of issue of
Letter of Acceptance, an account giving full and detailed particulars of all claims for any
additional expenses to which the Contractor may consider himself entitled to and of all extra or
additional works ordered by the Engineer which he has executed during the preceding month
quarter and no claim for payment for such work will be considered which has not been
included in such particulars.

43.(2) Signing of "No Claim" Certificate : The Contractor shall not be entitled to make
any claim whatsoever against the Railway under or by virtue of or arising out of this contract,
nor shall the Railway entertain or consider any such claim, if made by the Contractor, after he
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shall have signed a "No Claim" Certificate in favour of the Railway in such form as shall be
required by the Railway after the works are finally measured up. The Contactor shall be
debarred from disputing the correctness of the items covered by "No Claim" Certificate or
demanding a clearance to arbitration in respect thereof.

MEASUREMENTS, CERTIFICATES AND PAYMENTS

44. Quantities in Schedule Annexed to Contract: The quantities set out in the accepted
Schedule of Rates with items of works quantified are the estimated quantities of the works and
they shall not be taken as the actual and correct quantities of the work to be executed by the
Contractor in fulfillment of his obligations under the contract.

45(i). Measurement of Works by Railway: The Contractor shall be paid for the works at the
rates in the accepted Schedule of Rates and for extra works at rates determined under Clause
39 of these Conditions on the measurements taken by the Engineer or the Engineer's
representative in accordance with the rules prescribed for the purpose by the Railway. The
quantities for items the unit of which in the accepted Schedule of Rates is 100 or 1000 shall be
calculated to the nearest whole number, any fraction below half being dropped and half and
above being taken as one; for items the unit of which in the accepted Schedule of Rates is
single, the quantities shall be calculated to two places of decimals. Such measurements will be
taken of the work in progress from time to time and at such intervals as in the opinion of the
Engineer shall be proper having regard to the progress of works. The date and time on which
‘on account’ or ‘final’ measurements are to be made shall be communicated to the Contractor
who shall be present at the site and shall sign the results of the measurements (which shall also
be signed by the Engineer or the Engineer's representative) recorded in the official
measurements book as an acknowledgement of his acceptance of the accuracy of the
measurements. Failing the Contractor's attendance, the work may be measured up in his
absence and such measurements shall, notwithstanding such absence, be binding upon the
Contractor whether or not he shall have signed the measurement books provided always that
any objection made by him to measurement shall be duly investigated and considered in the
manner set out below:

(a) It shall be open to the Contractor to take specific objection to any recorded measurements
or Classification on any ground within seven days of the date of such measurements. Any re-
measurement taken by the Engineer or the Engineer's representative in the presence of the
Contractor or in his absence after due notice has been given to him in consequence of objection
made by the Contractor shall be final and binding on the Contractor and no claim whatsoever
shall thereafter be entertained regarding the accuracy and Classification of the measurements.

(b) If an objection raised by the Contractor is found by the Engineer to be incorrect the
Contractor shall be liable to pay the actual expenses incurred in measurements.

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45(ii). Measurement of Works by Contractor’s Authorized Representative (in case the

contract provides for the same):

(a) The Contractor shall be paid for the works at the rates in the accepted Schedule of Rates
and for extra works at rates determined under Clause 39 of these Conditions on the
measurements taken by the Contractor’s authorized Engineer in accordance with the rules
prescribed for the purpose by the Railway. The quantities for items the unit of which in the
accepted Schedule of Rates is 100 or 1000 shall be calculated to the nearest whole number, any
fraction below half being dropped and half and above being taken as one; for items the unit of
which in the accepted Schedule of Rates is single, the quantities shall be calculated to two
places of decimals. Such measurements will be taken of the work in progress from time to
time. The date and time on which ‘on account’ or ‘final’ measurements are to be made shall be
communicated to the Engineer.

The date and time of test checks shall be communicated to the Contractor who shall be
present at the site and shall witness the test checks, failing the Contractor’s attendance the test
checks may be conducted in his absence and such test checks shall not withstanding such
absence be binding upon Contractor provided always that any objection made by Contractor to
test check shall be duly investigated and considered in the manner set out below:

(i) It shall be open to the Contractor to take specific objection to test checks of any recorded
measurement within 7 days of date of such test checks. Any re-test check done by the
concerned Railway’s authority in the presence of the Contractor or in his absence after
due notice given to him in consequent of objection made by the Contractor shall be final
and binding on the Contractor and no claim whatsoever shall thereafter be entertained
regarding the accuracy and classification of the measurements.
(ii) If an objection raised by the Contractor is found by the Engineer to be incorrect the
Contractor shall be liable to pay the actual expenses incurred in measurements.

(b) Incorrect measurement, actions to be taken: If in case during test check or otherwise, it
is detected by the Engineer that agency has claimed any exaggerated measurement or has
claimed any false measurement for the works which have not been executed; amounting to
variation of 5% or more of claimed gross bill amount, action shall be taken as following:
(i) On first occasion of noticing exaggerated/ false measurement, Engineer shall recover
liquidated damages equal to 10% of claimed gross bill value.
(ii) On any next occasion of noticing any exaggerated/false measurement, railway shall
recover liquidated damages equal to 15% of claimed gross bill value. In addition the
facility of recording of measurements by Contractor as well as release of provisional
payment shall be withdrawn. Once withdrawn, measurements shall be done by railway as
per clause 45(i) above.

46.(1) "On-Account " Payments: The Contractor shall be entitled to be paid from time to
time by way of "On-Account" payment only for such works as in the opinion of the Engineer
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he has executed in terms of the contract. All payments due on the Engineer’s/Engineer's
Representative's certificates of measurements or Engineer’s certified “Contractor’s authorized
Engineer’s measurements” shall be subject to any deductions which may be made under these
presents and shall further be subject to, unless otherwise required by Clause 16 of these
Conditions, a retention of ten percent by way of Security Deposits, until the amount of
Security Deposit by way of such retentions shall amount to 5% of the total value of the
contract provided always that the Engineer may by any certificate make any correction or
modification in any previous certificate which shall have been issued by him and that the
Engineer may withhold any certificate, if the works or any part thereof are not being carried
out to his satisfaction.

46.(2) Rounding off Amounts: The total amount due on each certificate shall be rounded
off to the nearest rupee, i.e. sum less than 50 paise shall be omitted and sums of 50 paise and
more upto ₹1 will be reckoned as ₹ 1.

46.(3) On Account Payments not Prejudicial to Final Settlement: "On-Account"

payments made to the Contractor shall be without prejudice to the final making up of the
accounts (except where measurements are specifically noted in the Measurement Book as
"Final Measurements" and as such have been signed by the Contractor and
Engineer/Engineer's Representative) and shall in no respect be considered or used as evidence
of any facts stated in or to be inferred from such accounts nor of any particular quantity of
work having been executed nor of the manner of its execution being satisfactory.

46.(4) Manner of Payment: Unless otherwise specified payments to the Contractor will be
transferred electronically to his bank account.

46A. Price Variation Clause (PVC):

46A.1 Applicability: Price Variation Clause (PVC) shall be applicable only in those contracts
where tender conditions specifically permit it. Materials supplied free of cost by Railway to the
Contractors and any extra NS item(s) included in subsequent variation falling outside the
purview of the Schedule of Items of tender shall fall outside the purview of Price Variation
Clause. If, in any case, accepted offer includes some specific payment to be made to
consultants or some materials supplied by Railway free or at fixed rate, such payments shall be
excluded from the gross value of the work for the purpose of payment/recovery of price
variation.

46A.2 Base Month: The Base Month for ‘Price Variation Clause’ shall be taken as month
28 days prior to opening of tender including extensions, if any, unless otherwise stated
elsewhere. The quarter for applicability of PVC shall commence from the month following
Base month. The Price Variation shall be based on the average Price Index of the quarter under
consideration.

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46A.3 Validity:

Rates accepted by Railway Administration shall hold good till completion of work and no
additional individual claim shall be admissible except:

(a) Payment/recovery for increase/decrease in GST on works contract or

imposition/removal of any tax/cess on Works Contract as per Clause 37,
(b) Payment/recovery for overall market situation as per Price Variation Clause given
hereunder.

46A.4 Adjustment for variation in prices of material, labour, fuel, explosives, detonators, steel,
concreting, ferrous, non-ferrous, insulators, zinc and cement shall be determined in the manner
prescribed.

46A.5 Components of various items in a contract on which variation in prices be admissible,

shall be Material, Labour, Fuel, Explosives & Detonators, Steel, Cement, Concreting, Ferrous,
Non-ferrous, Insulator, Zinc, Erection etc. However, for fixed components, no price variation
shall be admissible.

46A.6 The percentages of labour component, material component, fuel component etc. in
various types of Engineering contracts shall be as under:
S. Component E/Work & Tunneling Major and Building Permanent Other
No. Minor Contracts Important Contracts Way Works
Bridges (with Bridges linking Contracts
Contracts, explosives) Contracts Contracts
Ballast (Manual)
Supply
Contracts,
Tunneling
Contracts
(without
explosive)
1 Labour Component 20 20 20 40 50 20
2 Other Material 10 15 30 35 5 20
Components
3 Plant Machinery & 30 15 20 5 15 30
Spares
4 Fuel & Lubricants 25 15 15 5 15 15
Component
5 Fixed Component* 15 15 15 15 15 15
6 Detonators & - 20 - - - -
Explosive
Component

* It shall not be considered for any price variation.

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46A.7 Formulae: The Amount of variation in prices in several components (labour, material
etc.) shall be worked out by the following formulae:

(i) L = W x (LQ – LB) x LC

LB 100

(ii) M= W x (MQ – MB) x MC

MB 100

(iii) F = W x (FQ – FB) x FC

FB 100

(iv) E = W x (EQ – EB) x EC

EB 100

(v) PM = W x (PMQ-PMB) x PMC

PMB 100
(vi) S = SW x (SQ – SB)
SB

(vii) C = CV x (CQ – CB) / CB

For Railway Electrification Works:

(viii) T = [(CS - CO) / CO x 0.4136] x TC

(ix) R = [(RT - RO) / RO + (ZT - ZO) / ZO x 0.06] x RC
(x) N = [(PT - PO) / PO] x NC
(xi) Z = [(ZT - ZO) / ZO] x ZC
(xii) I = [(IT – IO) / IT] x 85

Where,
L Amount of price variation in Labour
M Amount of price variation in Materials
F Amount of price variation in Fuel
E Amount of price variation in Explosives
PM Amount of price variation in Manufacture of machinery for mining, Quarrying and
Construction
S Amount of price variation in Steel
C Amount of price variation in Cement
T Amount of price variation in Concreting
R Amount of price variation in Ferrous Items
N Amount of price variation in Non-Ferrous Items
Z Amount of price variation in Zinc
I Amount of price variation in Insulator
LC % of Labour Component
MC % of Material Component
FC % of Fuel Component
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EC % of Explosive Component
PMC % of Manufacture of machinery for mining, Quarrying and Construction Component
TC % of Concreting Component
RC % of Ferrous Component
NC % of Non-Ferrous Component
ZC % of Zinc Component
W Gross value of work done by Contractor as per on-account bill(s) excluding
cost of materials supplied by Railway at fixed price, minus the price values of
cement and steel. This will also exclude specific payment, if any, to be made
to the consultants engaged by Contractors (such payment shall be indicated in
the Contractor’s offer)
LB Consumer Price Index for Industrial Workers - All India: Published in R.B.I.
Bulletin for the base period
LQ Consumer Price Index for Industrial Workers - All India: Published in R.B.I.
Bulletin for the average price index of the 3 months of the quarter under
consideration
MB Wholesale Price Index: All commodities – as published in the R.B.I. Bulletin
for the base period
MQ Wholesale Price Index: All commodities – as published in the R.B.I. Bulletin
for the average price index of the 3 months of the quarter under consideration
FB Wholesale Price Index for the group Fuel & Power as published in the R.B.I.
Bulletin for the base period
FQ Index Number of Wholesale Price Index – By Groups and Sub-Groups for the
group Fuel & Power as published in the R.B.I. Bulletin for the average price
index of the 3 months of the quarter under consideration
EB Index number of Monthly Whole Sale Price Index for the category ‘Explosive’
of (g).Manufacture of other chemical products under (J) MANUFACTURE
OF CHEMICALS AND CHEMICAL PRODUCTS, published by Office of
Economic Adviser, Govt. of India, Ministry of Commerce & Industry,
Department of Industrial Policy & Promotion (DIPP), for the base period.
EQ Index number of Monthly Whole Sale Price Index for the category ‘Explosive’
of (g).Manufacture of other chemical products under (J) MANUFACTURE
OF CHEMICALS AND CHEMICAL PRODUCTS, published by Office of
Economic Adviser, Govt. of India, Govt. of India, Ministry of Commerce &
Industry, Department of Industrial Policy & Promotion (DIPP), for the average
price index of 3 months of the quarter under consideration.
PMB Index number of Monthly Whole Sale Price Index for the category ‘k. Manufacture
of machinery for mining, quarrying and construction’ under (R) MANUFACTURE
OF MACHINERY AND EQUIPMENT, published by Office of Economic Adviser,
Govt. of India, Ministry of Commerce & Industry, Department of Industrial Policy &
Promotion (DIPP), for the base period.
PMQ Index number of Monthly Whole Sale Price Index for the category ‘k. Manufacture
of machinery for mining, quarrying and construction’ under (R) MANUFACTURE
OF MACHINERY AND EQUIPMENT, published by Office of Economic Adviser,
Govt. of India, Ministry of Commerce & Industry, Department of Industrial Policy &
Promotion (DIPP), for the average price index of 3 months of the quarter under
consideration.

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SW Gross value of steel supplied by the Contractor as per the ‘on-account’ bill for
the month under consideration
SB Index number of Monthly Whole Sale Price Index for the relevant category of
mild steel item as mentioned in Clause 46A.9, published by Office of
Economic Adviser, Govt. of India, Ministry of Commerce & Industry
Department of Industrial Policy & Promotion (DIPP); for the base period.
SQ Index number of Monthly Whole Sale Price Index for the relevant category of
mild steel item as mentioned in Clause 46A.9, published by Office of
Economic Adviser, Govt. of India, Ministry of Commerce & Industry
Department of Industrial Policy & Promotion (DIPP); for the average price
index of the 3 months of the quarter under consideration.
CV Value of Cement supplied by Contractor as per on account bill in the quarter
under consideration
CB Index No. of Wholesale Price Index of sub-group Cement, Lime & Plaster as
published in RBI Bulletin for the base period
CQ No. of Wholesale Price Index of sub-group Cement, Lime & Plaster as
published in RBI Bulletin for the average price index of the 3 months of the
quarter under consideration
CS RBI wholesale price index for Cement, Lime & Plaster for the month which is
six months prior to date of casting of foundation
Co RBI wholesale price index for Cement, Lime & Plaster for the month which is
one month prior to date of opening of tender
RT IEEMA price index for Iron & Steel for the month which is two months prior
to date of inspection of material.
RO IEEMA price index for Iron & Steel for the month which is one month prior to
date of opening of tender.
PT IEEMA price index for Copper wire bar for the month which is two months
prior to date of inspection of material.
PO IEEMA price index for Copper wire bar for the month which is one month
prior to date of opening of tender.
ZT IEEMA price index for Zinc for the month which is two months prior to date
of inspection of material
ZO IEEMA price index for Zinc for the month which is one month prior to date of
opening of tender
IT RBI wholesale price index for the sub-group “other Portland and Ceramic
product” for the month which is two months prior to date of inspection of
material
IO RBI wholesale price index for the sub-group “other Portland and Ceramic
product” for the month which is one month prior to date of opening of tender

46A.8 The demands for escalation of cost shall be allowed on the basis of provisional
indices as mentioned above in Clause 46A.7. Any adjustment needed to be done based on the
finally published indices shall be made as and when they become available.

46A.9: Relevant categories of steel for the purpose of operating Price Variation formula
as mentioned in this Clause shall be as under:

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SL Category of Steel Supplied Category of Steel Items as mentioned in Office of

in Railway Work Economic Adviser, Govt. of India, Ministry of
Commerce & Industry Department of Industrial Policy
& Promotion (DIPP).
1. Reinforcement bars and ‘MS Bright Bars’ individual commodity of group
other rounds item (d) Mild Steel-Long Products under
(N) MANUFACTURE OF BASIC METAL.
2. All types and sizes of ‘Angles, Channels, Sections, Steel’ individual
angles, channels and joists commodity of group item (d) Mild Steel-
Long Products under (N) MANUFACTURE OF
BASIC METAL.
3. All types and sizes of plates ‘e. Mild Steel – Flat Products’ of
(N) MANUFACTURER OF BASIC METAL.
4. Any other section of steel Average of price for the 3 categories covered under SL
not covered in the above 1, 2 & 3 above
categories and excluding
HTS

46A.10 Price Variation during Extended Period of Contract

The price adjustment as worked out above, i.e. either increase or decrease shall be applicable
upto the stipulated date of completion of work including the extended period of completion
where such extension has been granted under Clause 17-A of the Standard General Conditions
of Contract. However, where extension of time has been granted due to Contractor’s failure
under Clause 17-B of the Standard General Conditions of Contract, price adjustment shall be
done as follows:

a. In case the indices increase above the indices applicable to the last month of original
completion period or the extended period under Clause 17-A, the price adjustment for
the period of extension granted under Clause 17-B shall be limited to the amount
payable as per the Indices applicable to the last month of the original completion period
or the extended period under Clause 17-A of the Standard General Conditions of
Contract; as the case may be.
b. In case the indices fall below the indices applicable to the last month of original/
extended period of completion under Clause 17-A, as the case may be; then the lower
indices shall be adopted for the price adjustment for the period of extension under
Clause 17-B of the Standard General Conditions of Contract.

47. Maintenance of Works: The Contractor shall at all times during the progress and
continuance of the works and also for the period of maintenance specified in the Tender Form
after the date of issue of the certificate of completion by the Engineer or any other earlier date
subsequent to the completion of the works that may be fixed by the Engineer, be responsible
for and effectively maintain and uphold in good substantial, sound and perfect condition all
and every part of the works and shall make good from time to time and at all times as often as
the Engineer shall require, any damage or defect that may during the above period arise in or
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be discovered or be in any way connected with the works, provided that such damage or defect
is not directly caused by errors in the contract documents, act of providence or insurrection or
civil riot, and the Contractor shall be liable for and shall pay and make good to the Railway or
other persons legally entitled thereto whenever required by the Engineer so to do, all losses,
damages, costs and expenses they or any of them may incur or be put or be liable to by reasons
or in consequence of the operations of the Contractor or of his failure in any respect.

48.(1) Certificate of Completion of Works: As soon as in the opinion of the Engineer, the
work has been completed and has satisfactorily passed any final test or tests that may be
prescribed, the Engineer shall issue a certificate of completion duly indicating the date of
completion in respect of the work and the period of maintenance of the work shall commence
from the date of completion mentioned in such certificate. The certificate, inter alia, should
mention that the work has been completed in all respects and that all the contractual
obligations have been fulfilled by the Contractor and that there is no due from the Contractor
to Railways against the contract concerned.

The Engineer may also issue such a certificate indicating date of completion with respect to
any part of the work (before the completion of the whole of work), which has been both
completed to the satisfaction of the Engineer and occupied or used by the Railway. When any
such certificate is given in respect of part of a work, such part shall be considered as completed
and the period of maintenance of such part shall commence from the date of completion
mentioned in the completion certificate issued for that part of the work.

48.(2) Contractor not Absolved by Completion Certificate: The Certificate of Completion

in respect of the works referred to in Sub-Clause (1) of this Clause shall not absolve the
Contractor from his liability to make good any defects imperfections, shrinkages or faults
which may appear during the period of maintenance specified in the tender arising in the
opinion of the Engineer from materials or workmanship not in accordance with the drawings or
specifications or instruction of the Engineer, which defects, imperfections, shrinkages or faults
shall upon the direction in writing of the Engineer be amended and made good by the
Contractor at his own cost; and in case of default on the part of Contractor, the Engineer may
employ labour and materials or appoint another Contractor to amend and make good such
defects, imperfections, shrinkages and faults and all expenses consequent thereon and
incidental thereto shall be borne by the Contractor and shall be recoverable from any moneys
due to him under the contract.

48(3) Final Supplementary Agreement: After the work is completed or otherwise concluded
by the parties with mutual consent, and taken over by the Railway as per terms and conditions
of the contract agreement, and there is unequivocal no claim on either side under the Contract
other than as mentioned in item 4 of Annexure XIV, the parties shall execute the Final
Supplementary Agreement as per Annexure XIV.

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49. Approval only by Maintenance Certificate: No certificate other than Maintenance

Certificate, if applicable, referred to in Clause 50 of the Conditions shall be deemed to
constitute approval of any work or other matter in respect of which it is issued or shall be taken
as an admission of the due performance of the contract or any part thereof.

50.(1) Maintenance Certificate: The Contract shall not be considered as completed until a
Maintenance Certificate, if applicable, shall have been signed by the Engineer stating that the
works have been completed and maintained to his satisfaction. The Maintenance Certificate
shall be given by the Engineer upon the expiration of the period of maintenance or as soon
thereafter as any works ordered during such period pursuant to Sub Clause (2) to Clause 48 of
these Conditions shall have been completed to the satisfaction of the Engineer, and full effect
shall be given to this Clause notwithstanding the taking possession of or using the works or
any part thereof by the Railway.

The Competent Authority to issue above Maintenance Certificate shall normally be the
authority who is competent to sign the contract. If this Competent Authority is of the rank
lower than JA Grade, then a JA Grade Officer (concerned with the work) should issue the
Certificate. The Certificate, inter alia, should mention that the work has been completed in all
respects and that all the contractual obligations have been fulfilled by the Contractor and that
there is no due from the Contractor to Railways against the contract concerned

50.(2) Cessation of Railway’s Liability: The Railway shall not be liable to the Contractor
for any matter arising out of or in connection with the contract for execution of the works
unless the Contractor has made a claim in writing in respect thereof before the issue of the
Maintenance Certificate under this clause.

50.(3) Unfulfilled Obligations: Notwithstanding the issue of the Maintenance Certificate the
Contractor and (subject to Sub-Clause (2) of this Clause) the Railway shall remain liable for
the fulfillment of any obligation incurred under the provision of the contract prior to the issue
of the Maintenance Certificate which remains unperformed at the time such Certificate is
issued and for the purposes of determining the nature and extent of any such obligations, the
contract shall be deemed to remain in force between the parties thereto.

51.(1) Final Payment: On the Engineer's certificate of completion in respect of the works,
adjustment shall be made and the balance of account based on the Engineer or the Engineer's
representative's certified measurements or Engineer’s certified “contractor’s authorized
engineer’s measurements” of the total quantity of work executed by the Contractor upto the
date of completion and on the accepted schedule of rates and for extra works on rates
determined under Clause 39 of these Conditions shall be paid to the Contractor subject always
to any deduction which may be made under these presents and further subject to the Contractor
having signed delivered to the Engineer enclosing either a full account in detail of all claims he
may have on the Railway in respect of the works or having delivered No Claim Certificate and
the Engineer having after the receipt of such account given a certificate in writing that such

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claims are not covered under excepted matter i.e. Clauses 7(j), 8, 18, 22(5), 39, 43(2), 45(i)(a),
55, 55-A(5), 57, 57A, 61(1), 61(2) and 62(1) (i) to xv(B) of Standard General Conditions of
Contract or in any Clause (stated as excepted matter) of the Special Conditions of the
Contract, that the whole of the works to be done under the provisions of the Contracts have
been completed, that they have been inspected by him since their completion and found to be
in good and substantial order, that all properties, works and things, removed, disturbed or
injured in consequence of the works have been properly replaced and made good and all
expenses and demands incurred by or made upon the Railway for or in the respect of damage
or loss by from or in consequence of the works, have been satisfied agreeably and in
conformity with the contract.

51.(2) Post Payment Audit: It is an agreed term of contract that the Railway reserves to
itself the right to carry out a post-payment audit and/ or technical examination of the works
and the Final Bill including all supporting vouchers, abstracts etc. and to make a claim on the
Contractor for the refund of any excess amount paid to him till the release of security deposit
or settlement of claims, whichever is later, if as a result of such examination any over-payment
to him is discovered to have been made in respect of any works done or alleged to have been
done by him under the contract.

51-A. Production of Vouchers etc. by the Contractor:

(i) For a contract of more than one crore of rupees, the Contractor shall, whenever required,
produce or cause to be produced for examination by the Engineer any quotation, invoice,
cost or other account, book of accounts, voucher, receipt, letter, memorandum, paper of
writing or any copy of or extract from any such document and also furnish information
and returns verified in such manner as may be required in any way relating to the
execution of this contract or relevant for verifying or ascertaining cost of execution of
this contract (the decision of the Engineer on the question of relevancy of any documents,
information or return being final and binding in the parties). The Contractor shall
similarly produce vouchers etc., if required to prove to the Engineer, that materials
supplied by him, are in accordance with the specifications laid down in the contract.
(ii) If any portion of the work in a contract of value more than one crore of rupees be carried
out by a sub-contractor or any subsidiary or allied firm or company (as per Clause 7 of
the Standard General Conditions of Contract), the Engineer shall have power to secure
the books of such sub-contract or any subsidiary or allied firm or company, through the
Contractor, and such books shall be open to his inspection.
(iii) The obligations imposed by Sub Clause (i) & (ii) above is without prejudice to the
obligations of the Contractor under any statute rules or orders binding on the Contractor.

52. Withholding and Lien in Respect of Sums Claimed: Whenever any claim or claims
for payment of a sum of money arises out of or under the contract against the Contractor, the
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Railway shall be entitled to withhold and also have a lien to retain such sum or sums in whole
or in part from the security, if any, deposited by the Contractor and for the purpose aforesaid,
the Railway shall be entitled to withhold the said cash Security Deposit or the Security if any,
furnished as the case may be and also have a lien over the same pending finalization or
adjudication of any such claim. In the event of the security being insufficient to cover the
claimed amount or amounts or if no security has been taken from the Contractor, the Railway
shall be entitled to withhold and have a lien to the extent of the such claimed amount or
amounts referred to supra, from any sum or sums found payable or which at any time
thereafter may become payable to the Contractor under the same contract or any other contract
with this or any other Railway or any Department of the Central Government pending
finalization or adjudication of any such claim.

It is an agreed term of the contract that the sum of money or moneys so withheld or retained
under the lien referred to above, by the Railway will be kept withheld or retained as such by
the Railways till the claim arising out of or under the contract is determined by the arbitrator
(if the contract governed by the Arbitration Clause) or by the competent court as the case may
be and that the Contractor will have no claim for interest or damages whatsoever on any
account in respect of such withholding or retention under the lien referred to supra and duly
notified as such to the Contractor. For the purpose of this clause, where the Contractor is a
partnership firm or a company, the Railway shall be entitled to withhold and also have a lien to
retain towards such claimed amount or amounts in whole or in part from any sum found
payable to any partner / company, as the case may be whether in his individual capacity or
otherwise.

52-A Lien in Respect of Claims in other Contracts:

(i) Any sum of money due and payable to the Contractor (including the Security Deposit
returnable to him) under the contract may be withheld or retained by way of lien by the
Railway, against any claim of this or any other Railway or any other Department of the
Central Government in respect of payment of a sum of money arising out of or under any
other contract made by the Contractor with this or any other Department of the Central
Government.
(ii) However, recovery of claims of Railway in regard to terminated contracts may be made
from the Final Bill, Security Deposits and Performance Guarantees of other contract or
contracts, executed by the Contractor. The Performance Guarantees submitted by the
Contractor against other contracts, if required, may be withheld and encashed. In
addition, 10% of each subsequent ‘on-account bill’ may be withheld, if required, for
recovery of Railway’s dues against the terminated contract.
(iii) It is an agreed term of the contract that the sum of money so withheld or retained under
this Clause by the Railway will be kept withheld or retained as such by the Railway till
the claim arising out of or under any other contract is either mutually settled or
determined by arbitration, if the other contract is governed by Arbitration Clause or by
the competent court as the case may be and Contractor shall have no claim for interest or
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damages whatsoever on this account or on any other ground in respect of any sum of
money withheld or retained under this Clause and duly notified as such to the Contractor.

53. Signature on Receipts for Amounts: Every receipt for money which may become
payable or for any security which may become transferable to the Contractors under these
presents, shall, if signed in the partnership name by anyone of the partners of a Contractor's
firm be a good and sufficient discharge to the Railway in respect of the moneys or security
purported to be acknowledged thereby and in the event of death of any of the Contractor,
partners during the pendency of the contract, it is hereby expressly agreed that every receipt by
anyone of the surviving Contractor partners shall if so signed as aforesaid be good and
sufficient discharge as aforesaid provided that nothing in this Clause contained shall be
deemed to prejudice or effect any claim which the Railway may hereafter have against the
legal representative of any Contractor partner so dying for or in respect to any breach of any of
the conditions of the contract, provided also that nothing in this clause contained shall be
deemed to prejudice or effect the respective rights or obligations of the Contractor partners and
of the legal representatives of any deceased Contractor partners interse.

LABOUR

54. Wages to Labour: The Contractor shall be responsible to ensure compliance with the
provision of the Minimum Wages Act, 1948 (hereinafter referred to as the “said Act”) and the
Rules made thereunder in respect of any employees directly or through petty Contractors or
sub-contractors employed by him for the purpose of carrying out this contract.

If, in compliance with the terms of the contract, the Contractor supplied any labour to
be used wholly or partly under the direct orders and control of the Railways whether in
connection with any work being executed by the Contractor or otherwise for the purpose of the
Railway such labour shall, for the purpose of this Clause, still be deemed to be persons
employed by the Contractor.

If any moneys shall, as a result of any claim or application made under the said Act be
directed to be paid by the Railway, such money shall be deemed to be moneys payable to the
Railway by the Contractor and on failure by the Contractor to repay the Railway any moneys
paid by it as aforesaid within seven days after the same shall have been demanded, the
Railways shall be entitled to recover the same from Contractor’s bills/Security Deposit or any
other dues of Contractor with the Government of India.

54-A. Apprentices Act: The Contractor shall be responsible to ensure compliance with the
provisions of the Apprentices Act, 1961 and the Rules and Orders issued thereunder from time
to time in respect of apprentices directly or through petty Contractors or sub-contractors
employed by him for the purpose of carrying out the Contract.

If the Contractor directly or through petty Contractors or sub-contractors fails to do

so, his failure will be a breach of the contract and the Railway may, in its discretion, rescind
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the contract. The Contractor shall also be liable for any pecuniary liability arising on account
of any violation of the provisions of the Act.

55. Provisions of Payments of Wages Act: The Contractor shall comply with the
provisions of the Payment of Wages Act, 1936 and the rules made thereunder in respect of all
employees employed by him either directly or through petty Contractors or sub-contractors in
the works. If in compliance with the terms of the contract, the Contractor directly or through
petty Contractors or sub-contractors shall supply any labour to be used wholly or partly under
the direct orders and control of the Engineer whether in connection with the works to be
executed hereunder or otherwise for the purpose of the Engineer, such labour shall
nevertheless be deemed to comprise persons employed by the Contractor and any moneys
which may be ordered to be paid by the Engineer shall be deemed to be moneys payable by the
Engineer on behalf of the Contractor and the Engineer may on failure of the Contractor to
repay such money to the Railways deduct the same from any moneys due to the Contractor in
terms of the contract. The Railway shall be entitled to recover the same from Contractor’s
bills/Security Deposit or any other dues of Contractor with the Government of India all
moneys paid or payable by the Railway by way of compensation of aforesaid or for costs of
expenses in connection with any claim thereto and the decision of the Engineer upon any
question arising out of the effect or force of this Clause shall be final and binding upon the
Contractor.

55-A. Provisions of Contract Labour (Regulation and Abolition) Act, 1970:

55-A.(1) The Contractor shall comply with the provision of the contract labour (Regulation
and Abolition) Act, 1970 and the Contract labour (Regulation and Abolition) Central Rules
1971 as modified from time to time, wherever applicable and shall also indemnify the Railway
from and against any claims under the aforesaid Act and the Rules.

55-A.(2) The Contractor shall obtain a valid license under the aforesaid Act as modified from
time to time before the commencement of the work and continue to have a valid license until
the completion of the work. Any failure to fulfill the requirement shall attract the penal
provision of the Act.

55-A.(3) The Contractor shall pay to the labour employed by him directly or through sub-
contractors the wages as per provision of the aforesaid Act and the Rules wherever applicable.
The Contractor shall notwithstanding the provisions of the contract to the contrary, cause to be
paid the wages to labour, indirectly engaged on the works including any engaged by sub-
contractors in connection with the said work, as if the labour had been immediately employed
by him.

55-A.(4) In respect of all labour directly or indirectly employed in the work for performance
of the Contractor's part of the contract, the Contractor shall comply with or cause to be
complied with the provisions of the aforesaid Act and Rules wherever applicable.

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55-A.(5) In every case in which, by virtue of the provisions of the aforesaid Act or the rules,
the Railway is obliged to pay any amount of wages to a workman employed by the Contractor
or his sub-contractor in execution of the work or to incur any expenditure on account of the
contingent, liability of the Railway due to the Contractor's failure to fulfill his statutory
obligations under the aforesaid Act or the rules, the Railway will recover from the Contractor,
the amount of wages so paid or the amount of expenditure so incurred and without prejudice to
the rights of the Railway under the Section 20, Sub-Section (2) and Section 2, Sub-Section (4)
of the aforesaid Act, the Railway shall be at liberty to recover such amount or part thereof from
Contractor’s bills/Security Deposit or any other dues of Contractor with the Government of
India. The Railway shall not be bound to contest any claim made against it under Sub-Section
(1) of Section 20 and Sub-Section (4) of Section 21 of the aforesaid Act except on the written
request of the Contractor and upon his giving to the Railway full security for all costs for
which the Railway might become liable in contesting such claim. The decision of the Chief
Engineer regarding the amount actually recoverable from the Contractor as stated above shall
be final and binding on the Contractor.

55-B. Provisions of Employees Provident Fund and Miscellaneous Provisions Act,

1952:The Contractor shall comply with the provisions of Para 30 & 36-B of the Employees
Provident Fund Scheme, 1952; Para 3 & 4 of Employees’ Pension Scheme, 1995; and Para 7 &
8 of Employees Deposit Linked Insurance Scheme, 1976; as modified from time to time
through enactment of “Employees Provident Fund & Miscellaneous Provisions Act, 1952”,
wherever applicable and shall also indemnify the Railway from and against any claims under
the aforesaid Act and the Rules.

55-C (i) Contractor is to abide by the provisions of various labour laws in terms of above
clause 54, 55, 55-A and 55-B of Indian Railways Standard General Conditions of Contract. In
order to ensure the same, an application has been developed and hosted on website
‘www.shramikkalyan.indianrailways.gov.in’. Contractor shall register his firm/company etc.
and upload requisite details of labour and their payment in this portal. These details shall be
available in public domain. The registration / updation in Portal shall be done as under:

(a) Contractor shall apply for onetime registration of his company/firm etc. in the
Shramikkalyan portal with requisite details subsequent to issue of Letter of
Acceptance. Engineer shall approve the contractor’s registration in the portal within
7 days of receipt of such request.
(b) Contractor once approved by any Engineer, can create password with login ID
(PAN No.) for subsequent use of portal for all Letter of Acceptances (LoAs) issued in
his favour.
(c) The contractor once registered on the portal, shall provide details of his Letter of
Acceptances (LoAs) / Contract Agreements on shramikkalyan portal within 15 days of
issue of any LoA for approval of concerned Engineer. Engineer shall update (if
required) and approve the details of LoA filled by contractor within 7 days of receipt
of such request.

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(d) After approval of LoA by Engineer, contractor shall fill the salient details of contract
labours engaged in the contract and ensure updating of each wage payment to them on
shramikkalyan portal on monthly basis.
(e) It shall be mandatory upon the contractor to ensure correct and prompt uploading of all
salient details of engaged contractual labour & payments made thereof after each wage
period.

(ii) While processing payment of any ‘On Account Bill’ or ‘Final Bill’ or release of
‘Advances’ or ‘Performance Guarantee / Security deposit’, contractor shall submit a certificate
to the Engineer or Engineer’s representatives that “I have uploaded the correct details of
contract labours engaged in connection with this contract and payments made to them during
the wage period in Railway’s Shramikkalyan portal at
‘www.shramikkalyan.indianrailways.gov.in’ till ____Month, ____Year.”

55-D. Provisions of “The Building and Other Construction Workers (Regulation of

Employment and Conditions of Service) Act, 1996” and “The Building and Other
Construction Workers’ Welfare Cess Act, 1996”:

The tenderers, for carrying out any construction work, shall get themselves registered with the
Registering Officer under Section-7 of the Building and Other Construction Workers Act,
1996 and Rules made thereto by the concerned State Govt., and submit Certificate of
Registration issued by Registering Officer of the concerned State Govt. (Labour Dept.). The
Cess shall be deducted from contractor’s bills as per provisions of the Act.

56. Reporting of Accidents: The Contractor shall be responsible for the safety of all
employees directly or through petty Contractors or sub-contractor employed by him on the
works and shall report serious accidents to any of them however and wherever occurring on
the works to the Engineer or the Engineers Representative and shall make every arrangements
to render all possible assistance.

57. Provision of Workmen’s Compensation Act: In every case in which by virtue of the
provisions of Section 12 Sub-Section (1) of the Workmen's Compensation Act 1923, Railway
is obliged to pay compensation to a workman directly or through petty Contractor or sub-
contractor employed by the Contractor in executing the work, Railway will recover from the
Contractor the amount of the compensation so paid, and, without prejudice to the rights of
Railway under Section 12 Sub-section (2) of the said Act, Railway shall be at liberty to recover
such amount or any part thereof from Contractor’s bills/Security Deposit or any other dues of
Contractor with the Government of India. Railway shall not be bound to contest any claim
made against it under Section 12 Sub-Section (1) of the said Act except on the written request
of the Contractor and upon his giving to Railway full security for all costs for which Railway
might become liable in consequence of contesting such claim.

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57-A. Provision of Mines Act: The Contractor shall observe and perform all the provisions
of the Mines Act, 1952 or any statutory modifications or re-enactment thereof for the time
being in force and any rules and regulations made thereunder in respect of all the persons
directly or through the petty Contractors or sub-contractors employed by him under this
contract and shall indemnify the Railway from and against any claims under the Mines Act, or
the rules and regulations framed thereunder, by or on behalf of any persons employed by him
or otherwise.

58. Railway not to Provide Quarters for Contractors: No quarters shall normally be
provided by the Railway for the accommodation of the Contractor or any of his staff employed
on the work. In exceptional cases where accommodation is provided to the Contractor at the
Railway's discretion, recoveries shall be made at such rates as may be fixed by the Railway for
the full rent of the buildings and equipments therein as well as charges for electric current,
water supply and conservancy.

59.(1) Labour Camps: The Contractor shall at his own expense make adequate
arrangements for the housing, supply of drinking water and provision of latrines and urinals for
his staff and workmen, directly or through the petty Contractors or sub-contractors and for
temporary creche (Bal-Mandir) where 50 or more women are employed at a time. Suitable
sites on Railway land, if available, may be allotted to the Contractor for the erection of labour
camps, either free of charge or on such terms and conditions that may be prescribed by the
Railway. All camp sites shall be maintained in clean and sanitary conditions by the Contractor
at his own cost.

59.(2) Compliance to Rules for Employment of Labour: The Contractor(s) shall conform
to all laws, bye-laws rules and regulations for the time being in force pertaining to the
employment of local or imported labour and shall take all necessary precautions to ensure and
preserve the health and safety of all staff employed directly or through petty contractors or
sub-contractors on the works.

59.(3) Preservation of Peace: The Contractor shall take requisite precautions and use his
best endeavours to

(i) Prevent any riotous or unlawful behaviour by or amongst his workmen and other employed
directly or through the petty Contractors or sub-contractors on the works and for the
preservation of peace and protection of the inhabitants and

(ii) Security of property in the neighbourhood of the works. In the event of the Railway
requiring the maintenance of a Special Police Force at or in the vicinity of the site during the
tenure of works, the expenses thereof shall be borne by the Contractor and if paid by the
Railway shall be recoverable from the Contractor.

59.(4) Sanitary Arrangements: The Contractor shall obey all sanitary rules and carry out
all sanitary measures that may from time to time be prescribed by the Railway Medical
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Authority and permit inspection of all sanitary arrangements at all times by the Engineer, the
Engineer's Representative or the Medical Staff of the Railway. Should the Contractor fail to
make the adequate sanitary arrangements, these will be provided by the Railway and the cost
thereof recovered from the Contractor.

59.(5) Outbreak of Infectious Disease: The Contractor shall remove from his camp such
labour and their families as refuse protective inoculation and vaccination when called upon to
do so by the Engineer or the Engineer's Representative on the advice of the Railway Medical
Authority. Should cholera, plague, or other infectious disease break out, the Contractor shall
burn the huts, beddings, clothes and other belongings of or used by the infected parties and
promptly erect new huts on healthy sites as required by the Engineer, failing which within the
time specified in the Engineer's requisition, the work may be done by the Railway and the cost
thereof recovered from the Contractor.

59.(6) Treatment of Contractor's Staff in Railway Hospitals: The Contractor and his
staff, other than labourers and their families requiring medical aid from the railway hospital
and dispensaries will be treated as private patients and charged accordingly. The Contractors'
labourers and their Families will be granted free treatment in railway hospitals and
dispensaries where no other hospitals or dispensaries are available provided the Contractor
pays the cost of medicines, dressing and diet money according to the normal scale and
additional charges for special examinations such as pathological and bacteriological
examination, X-Ray, etc. and for surgical operation.

59. (7) Medical Facilities at Site: The Contractor shall provide medical facilities at the site
as may be prescribed by the Engineer on the advice of the Railway Medical Authority in
relation to the strength of the Contractor's resident staff and workmen.

59. (8) Use of Intoxicants: The sale of ardent spirits or other intoxicating beverages upon the
work or in any of the buildings, encampments or tenements owned, occupied by or within the
control of the Contractor or any of his employees shall be forbidden and the Contractor shall
exercise his influence and authority to the utmost extent to secure strict compliance with this
condition.

59.(9) Restrictions on the Employment of Retired Engineers of Railway Services Within

One Year of their Retirement: The Contractor shall not, if he is a retired Government
Engineer of Gazetted rank, himself engage in or employ or associate a retired Government
Engineer of Gazetted rank, who has not completed one year from the date of retirement, in
connection with this contract in any manner whatsoever without obtaining prior permission of
the President and if the Contractor is found to have contravened this provision it will constitute
a breach of contract and administration will be entitled to terminate the contract and forfeit his
Performance Guarantee as well as Security Deposit.

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60.(1) Non-Employment of Labourers below the age of 15: The Contractor shall not
employ children below the age of 15 as labourers directly or through petty Contractors or sub-
contractors for the execution of work.

60.(2) Medical Certificate of Fitness for Labour: It is agreed that the Contractor shall not
employ a person above 15 and below 19 years of age for the purpose of execution of work
under the contract unless a medical certificate of fitness in the prescribed form (Proforma at
Annexure-VIII) granted to him by a certifying surgeon certifying that he is fit to work as an
adult, is obtained and kept in the custody of the Contractor or a person nominated by him in
this behalf and the person carries with him, while at work; a token giving a reference to such
certificate. It is further agreed that the responsibility for having the adolescent examined
medically at the time of appointment or periodically till he attains the age of 19 years shall
devolve entirely on the Contractor and all the expenses to be incurred on this account shall be
borne by him and no fee shall be charged from the adolescent or his parent for such medical
examination.

60.(3) Period of Validity of Medical Fitness Certificate: A certificate of fitness granted or

renewed for the above said purposes shall be valid only for a period of one year at a time. The
certifying surgeon shall revoke a certificate granted or renewed if in his opinion the holder of
it, is no longer fit for work in the capacity stated therein. Where a certifying surgeon refuses to
grant or renew a certificate or revoke a certificate, he shall, if so required by the person
concerned, state his reasons in writing for doing so.

60.(4) Medical Re-Examination of Labourer: Where any official appointed in this behalf
by the Ministry of Labour is of the opinion that any person employed in connection with the
execution of any work under this contract in the age group 15 to 19 years is without a
certificate of fitness or is having a certificate of fitness but no longer fit to work in the capacity
stated in the certificate, he may serve on the Contractor, or on the person nominated by him in
this regard, a notice requiring that such persons shall be examined by a certifying surgeon and
such person shall not if the concerned official so directs, be employed or permitted to do any
work under this contract unless he has been medically examined and certified that he is fit to
work in the capacity stated in the certificate.

EXPLANATIONS:

(1) Only Qualified Medical Practitioners can be appointed as "Certifying Surgeons" and the
term "Qualified Medical Practitioners" means a person holding a qualification granted by
an authority specified in the Schedule to the Indian Medical Degrees Act, 1916 (VII to
1916) or in the Schedule to the Indian Medical Council Act, 1933 (XXVII) of 1933.

(2) The Certifying surgeon may be a medical officer in the service of State or Municipal
Corporation.

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DETERMINATION OF CONTRACT

61.(1) Right of Railway to Determine the Contract: The Railway shall be entitled to
determine and terminate the contract at any time should, in the Railway's opinion, the cessation
of work becomes necessary owing to paucity of funds or from any other cause whatever, in
which case the value of approved materials at site and of work done to date by the Contractor
will be paid for in full at the rate specified in the contract. Notice in writing from the Railway
of such determination and the reasons therefor shall be conclusive evidence thereof.

61.(2) Payment on Determination of Contract: Should the contract be determined under

sub clause (1) of this clause and the Contractor claims payment for expenditure incurred by
him in the expectation of completing the whole of the work, the Railways shall admit and
consider such claims as are deemed reasonable and are supported by vouchers to the
satisfaction of the Engineer. The Railway's decision on the necessity and propriety of such
expenditure shall be final and conclusive.

61.(3) The Contractor shall have no claim to any payment of compensation or otherwise,
howsoever on account of any profit or advantage which he might have derived from the
execution of the work in full but which he did not derive in consequence of determination of
contract.

62.(1) Determination of Contract owing to Default of Contractor:

If the Contractor should:

(i) Becomes bankrupt or insolvent, or
(ii) Make an arrangement for assignment in favour of his creditors, or agree to carry out the
contract under a Committee of Inspection of his creditors, or
(iii) Being a Company or Corporation, go into liquidation (other than a voluntary liquidation
for the purposes of amalgamation or reconstruction), or
(iv) Have an execution levied on his goods or property on the works, or
(v) Assign the contract or any part thereof otherwise than as provided in Clause 7 of these
Conditions, or
(vi) Abandon the contract, or
(vii) Persistently disregard the instructions of the Engineer, or contravene any provision of the
contract, or
(viii) Fail to adhere to the agreed programme of work by a margin of 10% of the stipulated
period, or
(ix) Fail to Execute the contract documents in terms of Clause 8 of the Regulations for
Tenders and Contracts.

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(x) Fails to submit the documents pertaining to identity of JV and PAN in terms of Clause
17.11 of Tender Form available in the Regulations for Tenders and Contracts.
(xi) Fail to remove materials from the site or to pull down and replace work after receiving
from the Engineer notice to the effect that the said materials or works have been
condemned or rejected under Clause 25 and 27 of these Conditions, or
(xii) Fail to take steps to employ competent or additional staff and labour as required under
Clause 26 of the Conditions, or
(xiii) Fail to afford the Engineer or Engineer's representative proper facilities for inspecting the
works or any part thereof as required under Clause 28 of the Conditions, or
(xiv) Promise, offer or give any bribe, commission, gift or advantage either himself or through
his partner, agent or servant to any officer or employee of the Railway or to any person
on his or on their behalf in relation to the execution of this or any other contract with this
Railway.
(xv) Fail to adhere to the provisions of Clause 16 of Tender Form (Second Sheet) of
Annexure I of Part I ‘Regulations for Tenders and Contract’, or provision of above
Clause 59(9).
(xvi) Submits copy of fake documents / certificates in support of credentials, submitted by the
tenderer
Then and in any of the said Clause, the Engineer on behalf of the Railway may serve the
Contractor with a notice (Proforma at Annexure-IX) in writing to that effect and if the
Contractor does not within seven days after the delivery to him of such notice proceed to make
good his default in so far as the same is capable of being made good and carry on the work or
comply with such directions as aforesaid of the entire satisfaction of the Engineer, the Railway
shall be entitled after giving 48 hours’ notice (Proforma at Annexure-X or XII, as the case may
be) in writing under the hand of the Engineer to rescind the contract as a whole or in part or
parts (as may be specified in such notice) and after expiry of 48 hours’ notice, a final
termination notice (Proforma at Annexure-XI or XIII, as the case may be) should be issued.

Note: Engineer at his discretion may resort to the part termination of contract with notices
(Proforma at Annexure- IX, XII and XIII), only in cases where progress of work is more than
or equal to 80% of the original scope of work.

62.(2) Right of Railway after Rescission of Contract owing to Default of Contractor: In

the event of any or several of the courses, referred to in Sub-Clause(1) of this Clause, being
adopted:

(a) The Contractor shall have no claim to compensation for any loss sustained by him by
reason of his having purchased or procured any materials or entered into any commitments or
made any advances on account of or with a view to the execution of the works or the
performance of the contract and Contractor shall not be entitled to recover or be paid any sum
for any work thereto for actually performed under the contract unless and until the Engineer

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shall have certified the performance of such work and the value payable in respect thereof and
the Contractor shall only be entitled to be paid the value so certified.

(b) In the contract which has been rescinded as a whole, the Security Deposit already with
railways under the contract shall be encashed/ forfeited and the Performance Guarantee already
submitted for the contract shall be encashed. The balance work shall be got done
independently without risk & cost of the failed Contractor. The failed Contractor shall be
debarred from participating in the tender for executing the balance work. If the failed
Contractor is a JV or a Partnership firm, then every member/partner of such a firm shall be
debarred from participating in the tender for the balance work in his/her individual capacity or
as a partner of any other JV /partnership firm.

Further the authorized representative of failed Contractor cannot be accepted as authorized

representative in new contract.

(c) In the contract rescinded in part or parts,

(i) The full Performance Guarantee for the contract shall be recovered. No additional
Performance Guarantee shall be required for balance of work being executed through the part
terminated contract. The contract value of part terminated contract stands reduced to the
balance value of work under the contract.

(ii) The Security Deposit of part terminated contract shall be dealt as per clause 16(2) of GCC.

(iii) The defaulting Contractor shall not be issued any completion certificate for the contract.

(iv) The balance work shall be got done independently without risk & cost of the failed
Contractor. The failed Contractor shall be debarred from participating in the tender for
executing the balance work. If the failed Contractor is a JV or a Partnership firm, then every
member/partner of such a firm shall be debarred from participating in the tender for the
balance work in his/her individual capacity or as a partner of any other JV /partnership firm.

(v) Further the authorized representative of failed Contractor will not be accepted as authorized
representative in new contract.

(d) The Engineer or the Engineer's Representative shall be entitled to take possession of any
materials, tools, implements, machinery and buildings on the works or on the property on
which these are being or ought to have been executed, and to retain and employ the same in the
further execution of the works or any part thereof until the completion of the works without the
Contractor being entitled to any compensation for the use and employment thereof or for wear
and tear or destruction thereof.

(e) The Engineer shall as soon as may be practicable after removal of the Contractor fix and
determine ex-parte or by or after reference to the parties or after such investigation or
enquiries as he may consider fit to make or institute and shall certify what amount (if any) had

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at the time of rescission of the contract been reasonably earned by or would reasonably accrue
to the Contractor in respect of the work then actually done by him under the contract and what
was the value of any unused, or partially used materials, any constructional plant and any
temporary works upon the site. The legitimate amount due to the Contractor after making
necessary deductions and certified by the Engineer should be released expeditiously.

SETTLEMENT OF DISPUTES – INDIAN RAILWAY ARBITRATION AND

CONCILIATION RULES
63. Conciliation of Disputes: All disputes and differences of any kind whatsoever arising
out of or in connection with the contract, whether during the progress of the work or after its
completion and whether before or after the determination of the contract, shall be referred by
the Contractor to the "Chief Engineer" or "Divisional Railway Manager" through “Notice of
Dispute” provided that no such notice shall be served later than 30 days after the date of issue
of Completion Certificate by the Engineer. Chief Engineer or Divisional Railway Manager
shall, within 30 days after receipt of the Contractor’s “Notice of Dispute”, notify the name of
conciliator(s) to the Contractor.

The Conciliator(s) shall assist the parties to reach an amicable settlement in an independent
and impartial manner within the terms of contract.

If the parties reach agreement on a settlement of the dispute, they shall draw up and sign a
written settlement agreement duly signed by Engineer In-charge, Contractor and conciliator(s).
When the parties sign the settlement agreement, it shall be final and binding on the parties.

The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial
proceedings in respect of a dispute that is the subject matter of the conciliation proceedings.

The conciliation proceedings shall be terminated as per Section 76 of ‘The Arbitration and
Conciliation Act, 1996.

63.1 Matters Finally Determined by the Railway: All disputes and differences of any kind
whatsoever arising out of or in connection with the contract, whether during the progress of
the work or after its completion and whether before or after the determination of the contract,
shall be referred by the Contractor to the GM and the GM shall, within 120 days after receipt
of the Contractor’s representation, make and notify decisions on all matters referred to by the
Contractor in writing provided that matters for which provision has been made in Clauses 7(j),
8, 18, 22(5), 39, 43(2), 45(i)(a), 55, 55-A(5), 57, 57A,61(1), 61(2) and 62(1) of Standard
General Conditions of Contract or in any Clause (stated as excepted matter) of the Special
Conditions of the Contract, shall be deemed as ‘excepted matters’ (matters not arbitrable) and
decisions of the Railway authority, thereon shall be final and binding on the Contractor;
provided further that ‘excepted matters’ shall stand specifically excluded from the purview of
the Arbitration Clause.
64.(1) : Demand for Arbitration:

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64.(1)(i): In the event of any dispute or difference between the parties hereto as to the
construction or operation of this contract, or the respective rights and liabilities of the parties
on any matter in question, dispute or difference on any account or as to the withholding by the
Railway of any certificate to which the Contractor may claim to be entitled to, or if the
Railway fails to make a decision within 120 days, then and in any such case, but except in any
of the “excepted matters” referred to in Clause 63.1 of these Conditions, the Contractor, after
120 days but within 180 days of his presenting his final claim on disputed matters shall
demand in writing that the dispute or difference be referred to arbitration.

64.(1)(ii)(a): The demand for arbitration shall specify the matters which are in question, or
subject of the dispute or difference as also the amount of claim item-wise. Only such dispute or
difference, in respect of which the demand has been made, together with counter claims or set
off, given by the Railway, shall be referred to arbitration and other matters shall not be included
in the reference.

64.(1)(ii)(b): The parties may waive off the applicability of Sub-Section 12(5) of Arbitration
and Conciliation (Amendment) Act 2015, if they agree for such waiver in writing, after dispute
having arisen between them, in the format given under Annexure XV of these conditions.

64.(1)(iii)(a): The Arbitration proceedings shall be assumed to have commenced from the day,
a written and valid demand for arbitration is received by the Railway.

64.(1)(iii)(b): The claimant shall submit his claims stating the facts supporting the claims
alongwith all the relevant documents and the relief or remedy sought against each claim within
a period of 30 days from the date of appointment of the Arbitral Tribunal.

64.(1)(iii)(c): The Railway shall submit its defence statement and counter claim(s), if any,
within a period of 60 days of receipt of copy of claims from Tribunal, unless otherwise
extension has been granted by Tribunal.

64.(1)(iii)(d): Place of Arbitration: The place of arbitration would be within the geographical
limits of the Division of the Railway where the cause of action arose or the Headquarters of the
concerned Railway or any other place with the written consent of both the parties.

64.(1)(iv): No new claim shall be added during proceedings by either party. However, a party
may amend or supplement the original claim or defense thereof during the course of arbitration
proceedings subject to acceptance by Tribunal having due regard to the delay in making it.

64.(1)(v): If the Contractor(s) does/do not prefer his/their specific and final claims in writing,
within a period of 90 days of receiving the intimation from the Railways that the final bill is
ready for payment, he/they will be deemed to have waived his/their claim(s) and the Railway
shall be discharged and released of all liabilities under the contract in respect of these claims.

64.(2): Obligation During Pendency of Arbitration: Work under the contract shall, unless
otherwise directed by the Engineer, continue during the arbitration proceedings, and no
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payment due or payable by the Railway shall be withheld on account of such proceedings,
provided, however, it shall be open for Arbitral Tribunal to consider and decide whether or not
such work should continue during arbitration proceedings.

64.(3) : Appointment of Arbitrator:

64.(3)(a) : Appointment of Arbitrator where applicability of section 12 (5) of Arbitration

and Conciliation Act has been waived off:

64.(3)(a)(i): In cases where the total value of all claims in question added together does not
exceed ₹ 1,00,00,000/- (Rupees One Crore), the Arbitral Tribunal shall consist of a Sole
Arbitrator who shall be a Gazetted Officer of Railway not below Junior Administrative Grade,
nominated by the General Manager. The sole arbitrator shall be appointed within 60 days from
the day when a written and valid demand for arbitration is received by General Manager.

64.(3)(a)(ii): In cases not covered by the Clause 64(3)(a)(i), the Arbitral Tribunal shall consist
of a panel of three Gazetted Railway Officers not below Junior Administrative Grade or 2
Railway Gazetted Officers not below Junior Administrative Grade and a retired Railway
Officer, retired not below the rank of Senior Administrative Grade Officer, as the arbitrators.
For this purpose, the Railway will send a panel of at least four (4) names of Gazetted Railway
Officers of one or more departments of the Railway which may also include the name(s) of
retired Railway Officer(s) empanelled to work as Railway Arbitrator to the Contractor within
60 days from the day when a written and valid demand for arbitration is received by the
General Manager.

Contractor will be asked to suggest to General Manager at least 2 names out of the panel for
appointment as Contractor’s nominee within 30 days from the date of dispatch of the request
by Railway. The General Manager shall appoint at least one out of them as the Contractor’s
nominee and will, also simultaneously appoint the balance number of arbitrators either from
the panel or from outside the panel, duly indicating the ‘presiding arbitrator’ from amongst the
3 arbitrators so appointed. General Manager shall complete this exercise of appointing the
Arbitral Tribunal within 30 days from the receipt of the names of Contractor’s nominees.
While nominating the arbitrators, it will be necessary to ensure that one of them is from the
Accounts Department. An officer of Selection Grade of the Accounts Department shall be
considered of equal status to the officers in Senior Administrative Grade of other departments
of the Railway for the purpose of appointment of arbitrator.

64.3.(a).iii: The serving railway officer working in arbitral tribunal in the ongoing arbitration
cases as per clause 64.(3)(a)(i) and clause 64.(3)(a)(ii) above, can continue as arbitrator in the
tribunal even after his retirement.

64.(3)(b): Appointment of Arbitrator where applicability of Section 12 (5) of Arbitration

and Conciliation Act has not been waived off:

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(i) In cases where the total value of all claims in question added together does not exceed
₹ 50,00,000/- (Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Retired Railway
Officer, retired not below the rank of Senior Administrative Grade Officer, as the arbitrator. For
this purpose, the Railway will send a panel of at least four (4) names of retired Railway
Officer(s) empanelled to work as Railway Arbitrator duly indicating their retirement dates to
the Contractor within 60 days from the day when a written and valid demand for arbitration is
received by the General Manager.

Contractor will be asked to suggest to General Manager at least 2 names out of the panel for
appointment as arbitrator within 30 days from the date of dispatch of the request by Railway.
The General Manager shall appoint at least one out of them as the arbitrator.

(ii) In cases where the total value of all claims in question added together exceed ₹ 50,00,000/-
(Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Panel of three (3) retired Railway
Officer, retired not below the rank of Senior Administrative Grade Officer, as the arbitrators.
For this purpose, the Railway will send a panel of at least four (4) names of retired Railway
Officer(s) empanelled to work as Railway Arbitrator duly indicating their retirement date to the
Contractor within 60 days from the day when a written and valid demand for arbitration is
received by the General Manager.

Contractor will be asked to suggest to General Manager at least 2 names out of the panel for
appointment as Contractor’s nominee within 30 days from the date of dispatch of the request by
Railway. The General Manager shall appoint at least one out of them as the Contractor’s
nominee and will, also simultaneously appoint the balance number of arbitrators either from the
panel or from outside the panel, duly indicating the ‘Presiding Arbitrator’ from amongst the 3
arbitrators so appointed. General Manager shall complete this exercise of appointing the
Arbitral Tribunal within 30 days from the receipt of the names of Contractor’s nominees. While
nominating the arbitrators, it will be necessary to ensure that one of them has served in the
Accounts Department.

64.(3)(c)(i): If one or more of the arbitrators appointed as above refuses to act as arbitrator,
withdraws from his office as arbitrator, or vacates his/their office/offices or is/are unable or
unwilling to perform his functions as arbitrator for any reason whatsoever or dies or in the
opinion of the General Manager fails to act without undue delay, the General Manager shall
appoint new arbitrator/arbitrators to act in his/their place in the same manner in which the
earlier arbitrator/arbitrators had been appointed. Such re-constituted Tribunal may, at its
discretion, proceed with the reference from the stage at which it was left by the previous
arbitrator (s).

64.(3) (c) (ii): (a) The Arbitral Tribunal shall have power to call for such evidence by way of
affidavits or otherwise as the Arbitral Tribunal shall think proper, and it shall be the duty of the
parties hereto to do or cause to be done all such things as may be necessary to enable the

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Arbitral Tribunal to make the award without any delay. The proceedings shall normally be
conducted on the basis of documents and written statements.

(b) Before proceeding into the merits of any dispute, the Arbitral Tribunal shall first decide and
pass its orders over any plea submitted/objections raised by any party, if any, regarding
appointment of Arbitral Tribunal, validity of arbitration agreement, jurisdiction and scope of
the Tribunal to deal with the dispute (s) submitted to arbitration, applicability of time
‘limitation’ to any dispute, any violation of agreed procedure regarding conduct of the arbitral
proceedings or plea for interim measures of protection and record its orders in day to day
proceedings. A copy of the proceedings duly signed by all the members of tribunal should be
provided to both the parties.

64.3(c)(iii): (i) Qualification of Arbitrator (s):

(a) Serving Gazetted Railway Officers of not below JA Grade level.

(b) Retired Railway Officers not below SA Grade level, one year after his date of retirement.
(c) Age of arbitrator at the time of appointment shall be below 70 years.
(ii) An arbitrator may be appointed notwithstanding the total number of arbitration cases in
which he has been appointed in the past.
(iii) While appointing arbitrator(s) under Sub-Clause 64.(3)(a)(i), 64.(3)(a)(ii), 64.(3)(b)(i) &
64.(3)(b)(ii) above, due care shall be taken that he/they is/are not the one/those who had an
opportunity to deal with the matters to which the contract relates or who in the course of
his/their duties as Railway servant(s) expressed views on all or any of the matters under
dispute or differences. A certification to this effect as per annexure- XVI shall be taken from
Arbitrators also. The proceedings of the Arbitral tribunal or the award made by such Tribunal
will, however, not be invalid merely for the reason that one or more arbitrator had, in the
course of his service, opportunity to deal with the matters to which the contract relates or who
in the course of his/their duties expressed views on all or any of the matters under dispute.

64.(3)(d)(i): The arbitral award shall state item wise, the sum and reasons upon which it is
based. The analysis and reasons shall be detailed enough so that the award could be inferred
therefrom.

64.(3)(d)(ii): A party may apply for corrections of any computational errors, any typographical
or clerical errors or any other error of similar nature occurring in the award of a Tribunal and
interpretation of a specific point of award to Tribunal within 60 days of receipt of the award.

64.(3)(d)(iii): A party may apply to Tribunal within 60 days of receipt of award to make an
additional award as to claims presented in the arbitral proceedings but omitted from the arbitral
award.

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64.(4): In case of the Tribunal, comprising of three members, any ruling on award shall be
made by a majority of members of Tribunal. In the absence of such a majority, the views of the
Presiding Arbitrator shall prevail.

64.(5): Where the arbitral award is for the payment of money, no interest shall be payable on
whole or any part of the money for any period till the date on which the award is made.

64. (6): The cost of arbitration shall be borne by the respective parties. The cost shall inter-alia
include fee of the arbitrator(s), as per the rates fixed by Railway Board from time to time and
the fee shall be borne equally by both the parties, provided parties sign an agreement in the
format given at Annexure XV to these condition after/ while referring these disputes to
Arbitration. Further, the fee payable to the arbitrator(s) would be governed by the instructions
issued on the subject by Railway Board from time to time irrespective of the fact whether the
arbitrator(s) is/are appointed by the Railway Administration or by the court of law unless
specifically directed by Hon’ble court otherwise on the matter.

64.(7) Subject to the provisions of the aforesaid Arbitration and Conciliation Act 1996 and the
rules thereunder and relevant para of General Conditions of Contract (GCC) and any statutory
modifications thereof shall apply to the appointment of arbitrators and arbitration proceedings
under this Clause.

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PART-II ANNEXURES
ANNEXURE – VII
Reference Para 17(B)

Registered Acknowledgement Due

PROFORMA FOR TIME EXTENSION
No. _______________________ Dated: _________________
Sub: (i) _____________________________________________________(name of work).
(ii) Acceptance letter no. _________________________________________________
(iii) Understanding/Agreement no. __________________________________________
Ref: _______________________________________ (Quote specific application of
Contractor for extension to the date received)
___________________________________________
Dear Sir,
1. The stipulated date for completion of the work mentioned above is _______________.
From the progress made so far and the present rate of progress, it is unlikely that the work will
be completed by the above date (or ‘However, the work was not completed on this date’).

2. Expecting that you may be able to complete the work if some more time is given, the
competent authority, although not bound to do so, hereby extends the time for completion from
______________ to _______________.

3. Please note that an amount equal to the liquidated damages for delay in the completion
of the work after the expiry of _______________________ (give here the stipulated date for
completion with/without any liquidated damage fixed earlier) will be recovered from you as
mentioned in Clause 17-B of the Standard General Conditions of Contract for the extended
period, notwithstanding the grant of this extension. You may proceed with the work
accordingly.

4. The above extension of the completion date will also be subject to the further condition
that no increase in rates on any account will be payable to you.

5. Please intimate within a week of the receipt of this letter your acceptance of the
extension of the conditions stated above.

6. Please note that in the event of your declining to accept the extension on the above said
conditions or in the event of your failure after accepting or acting upto this extension to
complete the work by ______________ (here mention the extended date), further action will
be taken in terms of Clause 62 of the Standard General Conditions of Contract.
Yours faithfully
For and on behalf of the President of India

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ANNEXURE – VIII
Reference Para 60.(2)
CERTIFICATE OF FITNESS

1. (a) Serial Number___________

(b) Date _____________
2. Name of person examined __________________________
3. Father’s Name: son/daughter of ______________________
Residing at _____________________
4. Sex ___________________________
5. Residence:
____________________________________________________________________
6. Physical fitness
7. Identification marks ______________
8. Date of birth, if available, and/or certified age ____________
I certify that I have personally examined (name) _______________who is desirous of
being employed in a factory or on a work requiring manual labour and that his/her age as
nearly as can be ascertained from my examination, is ______ years.

I certify that he/she is fit for employment in a factory or on a work requiring manual labour as
an adult/child.

9. Reasons for :
(a) Refusal to grant certificate, or ____________
(b) Revoking the certificate _________________

Signature or left hand

Thumb impression of the person examined.

Signature of Certifying Surgeon

Note: In case of physical disability, the exact details and cause of the physical disability
should be clearly stated.

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ANNEXURE – IX

(Reference Clause 62.(1)

Registered Acknowledgement Due

PROFORMA OF 7 DAYS NOTICE FOR WORKS AS A WHOLE/ IN PARTS

(DETAILS OF PART OF WORK TO BE MENTIONED)

___________ RAILWAY
(Without Prejudice)
To
M/s _____________________________
_________________________________
Dear Sir,
Contract Agreement No. _____________________________________________
In connection with _________________________________________________

In spite of repeated instructions to you by the subordinate offices as well as by this

office through various letters of even no. ________________, dated __________; you have
failed to start work/show adequate progress and/or submit detailed programme for completing
the work/ part of work (details of part of work to be mentioned).

2. Your attention is invited to this office/Chief Engineer’s office letter no. ___________
________, dated __________ in reference to your representation, dated ____________.

3. As you have failed to abide by the instructions issued to commence the work /to show
adequate progress of work you are hereby given 7 days’ notice in accordance with Clause 62
of Standard General Conditions of Contract to commence works / to make good the progress,
failing which further action as provided in Clause 62 of the Standard General Conditions of
Contract viz. to terminate your Contract and complete the balance work without your
participation will be taken.

Kindly acknowledge receipt.

Yours faithfully
For and on behalf of the President of India

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ANNEXURE – X
Reference Para 62(1)
Registered Acknowledgement Due
PROFORMA OF 48 HRS. NOTICE FOR WHOLE WORK
___________ RAILWAY
(Without Prejudice)
To
M/s _____________________________
_________________________________
Dear Sir,

Contract Agreement No. _____________________________________________

In connection with _________________________________________________

Seven days’ notice under Clause 62 of Standard General Conditions of Contract was
given to you under this office letter of even no., dated ____________; but you have taken no
action to commence the work/show adequate progress of the work.

2. You are hereby given 48 hours’ notice in terms of Clause 62 of Standard General
Conditions of Contract to commence works / to make good the progress of works, failing
which and on expiry of this period your above contract will be rescinded and the work under
this contract will be carried out independently without your participation and your Security
Deposit shall be forfeited and Performance Guarantee shall also be encashed and any other
consequences which may please be noted.

Kindly acknowledge receipt.

Yours faithfully

For and on behalf of the President of India

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ANNEXURE – XI
Reference Para 62.(1)
Registered Acknowledgement Due
PROFORMA OF TERMINATION NOTICE
______________ RAILWAY
(Without Prejudice)
No. ________________________________ Dated ____________
To
M/s _____________________________
_________________________________
Dear Sir,

Contract Agreement No. _____________________________________________

In connection with _________________________________________________

Forty eight hours (48 hrs.) notice was given to you under this office letter of even no.,
dated _______________; but you have taken no action to commence the work/show adequate
progress of the work.

Since the period of 48 hours’ notice has already expired, the above contract stands
rescinded in terms of Clause 62 of Standard General Conditions of Contract and the balance
work under this contract will be carried out independently without your participation. Your
participation as well as participation of every member/partner in any manner as an individual
or a partnership firm/JV is hereby debarred from participation in the tender for executing the
balance work and your Security Deposit shall be forfeited and Performance Guarantee shall
also be encashed.

Kindly acknowledge receipt.

Yours faithfully

For and on behalf of the President of India

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ANNEXURE – XII
Reference Para 62.(1)
Registered Acknowledgement Due
PROFORMA OF 48 HRS. NOTICE FOR PART OF THE WORK…………….
(DETAILS OF PART OF WORK TO BE MENTIONED)
___________ RAILWAY
(Without Prejudice)
To
M/s _____________________________
_________________________________
Dear Sir,
Contract Agreement No. _____________________________________________
In connection with _________________________________________________

1. Seven days’ notice under Clause 62 of Standard General Conditions of Contract was
given to you under this office letter of even no., dated ____________; but you have taken no
action to commence the work/show adequate progress of the part of
work…………………..(details of part to be mentioned).

2. You are hereby given 48 hours’ notice in terms of Clause 62 of Standard General
Conditions of Contract to commence works / to make good the progress of works, failing
which and on expiry of this period your above part of work………………… (Details of part to
be mentioned) in contract will be rescinded and the work will be carried out independently
without your participation.

3. Your full Performance Guarantee for the contract shall be forfeited and you shall not be
issued any completion certificate for the contract. However, no additional Performance
Guarantee shall be required for balance of work being executed through the part terminated
contract.

4. The contract value of part terminated contract shall stands reduced to

………………………..

Kindly acknowledge receipt.

Yours faithfully

For and on behalf of the President of India

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ANNEXURE – XIII
Reference Para 62.(1)
Registered Acknowledgement Due
PROFORMA OF TERMINATION NOTICE FOR PART OF THE WORK…………….
(DETAILS OF PART OF WORK TO BE MENTIONED)
______________ RAILWAY
(Without Prejudice)
No. ________________________________ Dated ____________
To
M/s _____________________________
_________________________________
Dear Sir,
Contract Agreement No. _____________________________________________
In connection with _________________________________________________

1. Forty eight hours (48 hrs.) notice was given to you under this office letter of even no.,
dated _______________; but you have taken no action to commence the work/show
adequate progress of the part of work…………………..(details of part to be
mentioned).

2. Your above part of work in contract …………………..(details of part to be mentioned)

stands rescinded in terms of Clause 62 of Standard General Conditions of Contract and
the same will be carried out independently without your participation. Your
participation as well as participation of every member/partner in any manner as an
individual or a partnership firm/JV is hereby debarred from participation in the tender
for executing the balance work

3. Your full Performance Guarantee for the contract shall be forfeited and you shall not be
issued any completion certificate for the contract. However, no additional Performance
Guarantee shall be required for balance of work being executed through the part
terminated contract.

4. The contract value of part terminated contract stands reduced to

…………………………………..

Kindly acknowledge receipt.

Yours faithfully
For and on behalf of the President of India
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ANNEXURE – XIV
Reference Para 48.(3)
FINAL SUPPLEMENTARY AGREEMENT
1. Articles of agreement made this day _______ in the year ____________ between the
President of India, acting through the _____________ Railway Administration having
his office at ______ herein after called the Railway of the one part and
_________________ of the second part.
2. Whereas the party hereto of the second part executed an agreement with the party hereto
of the first part being agreement Number _________dated ____for the performance
__________herein after called the ‘Principal Agreement’.
3. And whereas it was agreed by and between the parties hereto that the works would be
completed by the party hereto of the second part on _______ date last extended and
whereas the party hereto of the second part has executed the work to the entire
satisfaction of the party hereto of the first part.
4. And whereas the party hereto of the first part already made payment to the party hereto
of the second part diverse sums from time to time aggregating to ₹ _____ including the
Final Bill bearing voucher No.________ dated _________of value
____________________ duly adjusted as per price variation clause, if applicable (the
receipt of which is hereby acknowledged by the party hereto of the second part in full
and final settlement of all his /its claims under the principal agreement.
And whereas the party hereto of the second part have received sum of ₹ _______
through the Final Bill bearing voucher No.____________ dated _________duly
adjusted as per price variation clause (PVC), if applicable (the receipt of which is
hereby acknowledged by the party thereto of the second part) from the party hereto of
the first part in full and final settlement of all his/its disputed claims under principal
agreement.
Now, it is hereby agreed by and between the parties in the consideration of sums
already paid by the party hereto of the first part to the party hereto of the second part
against all outstanding dues and claims for all works done under the aforesaid principal
agreement excluding the security deposit, the party hereto of the second part have no
further dues of claims against the party hereto of the first part under the said Principal
Agreement. It is further agreed by and between the parties that the party hereto of the
second part has accepted the said sums mentioned above in full and final satisfaction of
all its dues and claims under the said Principal Agreement.
(Applicable in case Final Supplementary Agreement is signed after release of Final
Payment)
Or
And whereas the party hereto of the first part already made payment to the party hereto
of the second part diverse sums from time to time aggregating to ₹ _____ through
various On Account Bills (the receipt of which is hereby acknowledged by the party
hereto of the second part).
And whereas the party hereto of the second part have received sum of ₹ _______
through various On Account Bills (the receipt of which is hereby acknowledged by the
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party thereto of the second part) from the party hereto of the first part and party hereto
of the second part have accepted final measurements recorded on Page No….. to Page
No…. of Measurement Book No……….and corresponding Final Bill duly adjusted as
per price variation clause (PVC), if applicable, for full and final settlement of all his/its
disputed claims under principal agreement.
Now, it is hereby agreed by and between the parties in the consideration of sums
already paid through various On Account Bills and sums to be paid through Final Bill
duly adjusted as per price variation clause (PVC), if applicable, based on accepted
final measurements including the security deposit by the party hereto of the first part to
the party hereto of the second part against all outstanding dues and claims for all works
done under the aforesaid principal agreement, the party hereto of the second part have
no further dues of claims against the party hereto of the first part under the said
Principal Agreement.
(Applicable in case Final Supplementary Agreement is signed before release of Final
Payment)
5. It is further agreed and understood by and between the parties that the arbitration clause
contained in the said principal agreement shall cease to have any effect and/or shall be
deemed to be non-existent for all purposes.
Signature of the Contractor/s for and on behalf of the President of India
Witnesses
_______________________
ADDRESS: ______________

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ANNEXURE-XV
Reference Para 64.3 & 64.6

Agreement towards Waiver under Section 12(5) and Section 31A (5) of Arbitration and
Conciliation (Amendment) Act

I/we.............. (Name of agency/Contractor) with reference to agreement no...................

raise disputes as to the construction and operation of this contract, or the respective rights and
liabilities, withholding of certificate and demand arbitration in respect of following claims :
Brief of claim:
(i) Claim 1- Detailed at Annexure-
(ii) Claim 2 –
(iii) Claim 3 –
I/we............... (post of Engineer) with reference to agreement no.......... hereby raise
disputes as to the construction and operation of this contract, or the respective rights and
liabilities, withholding of certificate and demand arbitration in respect of following claims:

I/we...........do/do not agree to waive off applicability of section 12(5) of Arbitration and
Conciliation (Amendment) Act.

Signature of Claimant_______________________ Signature of Respondent

___________________

Agreement under Section 31(5)

I/we....... (Name of claimant) with reference to agreement no................ hereby waive off
the applicability of sub section 31-A (2) to 31-A (4) of the Arbitration and Conciliation
(Amendment Act. We further agree that the cost of arbitration will be shared by the parties as
per Clause 64(6) of GCC.

Signature of Claimant_________________ Signature of Respondent_____________________

*Strike out whichever not applicable.

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ANNEXURE-XVI
Reference Para 64.(3)
Certification by Arbitrators appointed under Clause 63 & 64 of Indian Railways General
Conditions of Contract

1. Name:

2. Contact Details:

3. Prior experience (Including Experience with Arbitrations):

4. I do not have more than ten on-going Arbitration cases with me.

5. I hereby certify that I have retired from Railways w.e.f. _____ and empanelled as
Railway Arbitrator as per ‘The Arbitration and Conciliation Act- 1996’.

6. I have no any past or present relationship in relation to the subject matter in dispute,
whether financial, business, professional or other kind.
Or

I have past or present relationship in relation to the subject matter in dispute, whether
financial, business, professional or other kind. The list of such interests is as under:

7. I have no any past or present relationship with or interest in any of the parties whether
financial, business, professional or other kind, which is likely to give rise to justifiable
doubts as to my independence or impartiality in terms of The Arbitration and
Conciliation Act-1996.
Or

I have past or present relationship with or interest in any of the parties whether
financial, business, professional or other kind, which is likely to give rise to justifiable
doubts as to my independence or impartiality in terms of The Arbitration and
Conciliation Act-1996. The details of such relationship or interests are as under:

8. There are no concurrent Circumstances which are likely to affect my ability to devote
sufficient time to the arbitration and in particular to finish the entire arbitration within
twelve months.
Or

There are Circumstances which are likely to affect my ability to devote sufficient time to the
arbitration and in particular to finish the entire arbitration within twelve months. The list of
such circumstances is as under:
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