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    Commercial Terms and Conditions The Finalized Prices Are Inclusive of The Following

    Uploaded by

    Bishnu Thapa Magar
    The document outlines commercial terms and conditions for a contract. It specifies that final prices include design, manufacturing, surface preparation, painting, transportation, installation, testing and commissioning. It also outlines taxes to be charged including VAT and TDS. Payment terms include an initial 5% advance upon contract signing, another 5% upon equipment delivery, 55% after fabrication, 50% after erection and installation, and the final 5% after testing and commissioning. It also requires performance and advance payment bank guarantees to be provided.

    Copyright:

    © All Rights Reserved
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    Commercial Terms and Conditions The Finalized Prices Are Inclusive of The Following

    Uploaded by

    Bishnu Thapa Magar
    10 views2 pages
    The document outlines commercial terms and conditions for a contract. It specifies that final prices include design, manufacturing, surface preparation, painting, transportation, installation, testing and commissioning. It also outlines taxes to be charged including VAT and TDS. Payment terms include an initial 5% advance upon contract signing, another 5% upon equipment delivery, 55% after fabrication, 50% after erection and installation, and the final 5% after testing and commissioning. It also requires performance and advance payment bank guarantees to be provided.

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    The document outlines commercial terms and conditions for a contract. It specifies that final prices include design, manufacturing, surface preparation, painting, transportation, installation, testing and commissioning. It also outlines taxes to be charged including VAT and TDS. Payment terms include an initial 5% advance upon contract signing, another 5% upon equipment delivery, 55% after fabrication, 50% after erection and installation, and the final 5% after testing and commissioning. It also requires performance and advance payment bank guarantees to be provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    Commercial Terms and Conditions The Finalized Prices Are Inclusive of The Following

    Uploaded by

    Bishnu Thapa Magar
    The document outlines commercial terms and conditions for a contract. It specifies that final prices include design, manufacturing, surface preparation, painting, transportation, installation, testing and commissioning. It also outlines taxes to be charged including VAT and TDS. Payment terms include an initial 5% advance upon contract signing, another 5% upon equipment delivery, 55% after fabrication, 50% after erection and installation, and the final 5% after testing and commissioning. It also requires performance and advance payment bank guarantees to be provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Commercial Terms and Conditions

    The finalized prices are inclusive of the following:

     Detailed Design and submission to client for various HM components as


    per final B.O.Q.
     Manufacturing of Equipment as per approved drawings.
     Surface Preparation
     Painting
     Local Transportation up to area of installation
     Installation
     Testing & Commissioning

    Taxes & Duties


     V.A.T will be charged on the basic quoted prices.
     T.D.S @ 1.5% or as applicable on services at the time of invoicing shall
    be deducted by the Employer from each R.A bill.
     No other tax will be charged will be the contractor or deducted by the
    Employer apart from the above mentioned taxes.
    Terms of Payment
     5% of total contract value to be released as advance payment against signing of
    contract agreement and submission of ABG of equivalent amount. This amount shall
    be payable out of L.C.
     5% of total contract value to be released as mobilization payment against receipt of
    following equipment/machinery at site out of L.C.:
    1. Rolling/Bending Machine
    2. Columns/Truss for Workshop set-up
    3. DG Set
    4. Painting Machine and Compressor
    5. Welding Machines & Grinder Machines
    6. Hydra Crane or E.O.T Crane
     55% of total value of Unit Rate (Total cost of Fabrication & Erection LESS advance
    payment as per Annexure) upon completion of fabrication along with 100% taxes and
    duties through irrevocable Letter of Credit at sight.
     50% of total value of Unit Rate (Total cost of Fabrication & Erection LESS advance
    payment as per Annexure) upon completion of erection and installation through
    irrevocable Letter of Credit at sight.
     5% of total contract value after successful testing and commissioning or 18 months
    from the date of issue of invoice whichever is earlier.

    Bank Guarantees

     Performance Bank Guarantee of 5% of total contract value shall be submitted within


    30 days of signing of contract agreement and before the release of advance payment
    valid for a period of 18 months from the date of start of Defects Liability period.
     Advance payment guarantee of 5 % of total contract value shall be submitted for
    receipt of 1st installment of Advance Payment.
     Advance payment guarantee of 5 % of total contract value shall be submitted for
    receipt of 2nd installment of Advance Payment.

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