Epmc - Aspl Tender Document-Complete

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HINDUSTAN PETROLEUM CORPORATION LIMITED

(A GOVERNMENT OF INDIA ENTERPRISE)

TENDER DOCUMENT
FOR
ENGINEERING AND PROJECT MANAGEMENT

CONSULTANCY
FOR
AWA–SALAWAS PIPELINE PROJECT

Page 1 of 210
CONTENTS

CHAPTER DESCRIPTION
NO
1 NOTICE INVITING TENDER
2 INSTRUCTIONS TO BIDDER
3 SCOPE OF WORK
4 TERMS AND CONDITIONS
5 SHE GUIDELINES
6 SCHEDULE OF QUANTITIES
7 DOCUMENTS AND PROFORMAE
8 EXECUTIVE SUMMARY OF DFR
9 TIME SCHEDULE

Page 2 of 210
CHAPTER-1
NOTICE INVITING TENDER
(Attached Separately)

Page 3 of 210
CHAPTER-2
INSTRUCTION TO BIDDERS
(Attached Separately)

Page 4 of 210
CHAPTER-3
SCOPE OF WORK

SECTION A. GENERAL

SECTION B. SCOPE OF BASIC ENGINEERING

SECTION C. SCOPE OF DETAILED ENGINEERING

SECTION D. EPMC SERVICES IN PROCUREMENT AND MATERIALS


MANAGEMENT OF MATERIALS AND EQUIPMENTS

SECTION E. SCOPE OF PROJECT MANAGEMENT SERVICES

SECTION F. OWNER’S SCOPE OF WORK

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Page 6 of 210
A. GENERAL
a) Definition of “Project” :

The word “Project” appearing in Scope of Work shall mean “Awa-Salawas Pipeline
Project” comprising of following minimum activities unless the context otherwise
requires
Pipeline
i) A cross country main pipeline of approx 93 km length from HPCL’s proposed
Dispatch station facilities at Awa (to be constructed inside existing intermediate
pumping station on Mundra Delhi Pipeline (MDPL) at Awa) and proposed
receiving facilities at Salawas (to be constructed inside existing HPCL depot
at Salawas).
ii) 2 nos. SV stations en-route.
iii) Associated and enabling works for integration of new facilities with existing
MDPL system.
Terminal
(i) Augmentation and Realignment of Tankages at existing Salawas depot and
associated Civil/Mechanical/Electrical/Instrumentation works.
(ii) Associated and enabling works required for integration with the existing
facilities and systems.
(iii) Implementation of M B Lal Committee recommendations approved by MOP&NG
for existing as well as proposed facilities.
(iv) Automation of Tank Truck Loading, Tank Farm Management System and
integration with Fire Fighting and allied facilities.

b) Project Implementation Strategy:

The Project Implementation Strategy developed for the Awa-Salawas Pipeline Project, is
based on a basic philosophy that Engineering and Project Management Consultant will be
appointed to manage and control all aspects of the Project execution on behalf of Owner.
The Consultant will be responsible for all project activities to a small group of Owner’s
executives. The exclusions have been specified separately at the end of this Chapter.

c) Capacity Expansion:

While designing various facilities, provision shall be kept by Consultant for meeting
future thruput requirements

d) Battery Limits:

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The following battery limits for EPMC Scope of Work for Awa-Salawas Pipeline Project
are applicable:

I) Pipeline

(i) From Pipeline tap off MOVs (both upstream and downstream of sectionalisation valve
of MDPL) at Awa Intermediate Pumping station up to and including Pipeline manifold
MOVs at Salawas depot.
(ii) From Pipeline Manifold to all tanks [both existing (after realignment) and proposed]
including tanks for surge relief and interphase

Pipeline and Pipeline Manifold (Definition): Piping arrangement with NRVs and
MOVs located within HPCL premises (generally in Pipeline Block), under the control of
Pipeline Despatch/Tap-off/ Receipt Control room, with one incoming multi-product
piping (from cross country pipeline and Pipeline sump tank) and several outgoing piping
system from piping manifold to inlet of respective product tank(s).

II) Associated Terminal works

All works inside Salawas depot except that mentioned under Pipeline.

e) Integration of facilities:

Pipeline (at Awa IPS, SV stations and Salawas Depot)

a. System: PLC, SCADA & Telecom System & CCTV system of MDPL with ASPL.
b. Electrical: Power System, FA System, CCTV, Yard Lighting at locations
c. Common Facilities: Fire Network, Roads, Drains, OWS, Raw/Drinking water,
landscaping, green belt at locations.
d. M B Lal Committee Recommendations approved by MOP&NG for for both
existing and proposed facilities

Note: The adequacy of System for hooking up the new facilities to be assessed by EPMC
at existing locations and necessary revamp, modifications, additions to be done as per the
requirement.

Salawas Depot

a. System: Terminal Automation System, Telecom System & CCTV system with
existing Pipeline and Terminal facilities at existing locations and with new facilities
of ASPL.
b. Electrical: Power System, FA System, CCTV, Yard Lighting at locations etc.

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c. Common Facilities: Fire Network, Roads, Drains, OWS, Raw/Drinking water,
landscaping, green belt at locations.
d. M B Lal Committee Recommendations accepted by MOP&NG for both existing
and proposed facilities
.

Note:
1. The adequacy of the existing system for hooking up the new facilities to be assessed
by EPMC at existing locations and necessary revamp, modifications, additions to be
done as per the requirement

2. Software / hardware used for various systems like Telecom, SCADA & APPS, PLC
etc. under Awa Salawas Pipeline Project shall be compatible with existing system for
ease of integration.

f) Standardization of Equipment / Instruments:

As far as practicable, Consultant for Awa-Salawas Pipeline Project shall endeavor to


standardize type of equipment / instruments being considered in various pipeline stations.

g) Project Completion Schedule

The complete project consisting of Pipeline and Terminal as defined above shall be
completed as per the Time Schedule attached in the tender under Chapter-9

Page 9 of 210
(SCOPE OF WORK)

B. SCOPE OF BASIC ENGINEERING

1.0 - Brief project Description.

2.0 - Facilities.

3.0 - Scope of Work.

4.0 - Design Standards.

5.0 - Studies to be performed.

6.0 - Design Reviews.

7.0 - Document Requirements.

8.0 - Deliverables of Basic Engineering

Page 10 of 210
B. SCOPE OF BASIC ENGINEERING

1.0 BRIEF PROJECT DESCRIPTION

Hindustan Petroleum Corporation Limited (HPCL) is operating a cross country


multiproduct white oil pipeline from Mundra to Bahadurgarh near Delhi (MDPL) for the
distribution of products (2 grades of MS, 2 grades of HSD and one grade of SKO) in
Northern India. It has also laid a cross country multi-product pipeline from Raman Mandi
to Bahadurgarh which will be utilized to transport white oils (MS/HSD/SKO/ATF) to
Bahadurgarh after commissioning of Guru Govind Singh Refinery. It also proposes to lay
a cross country branch pipeline from Rewari (on MDPL) to Kanpur (RKPL) to utilize the
surplus capacity that would be available after Bahadurgarh starts receiving product from
Guru Govind Singh (Hindustan Mittal Energy Limited) Refinery.

HPCL also desires to lay a multiproduct spur pipeline (called Awa Salawas Pipeline or
ASPL Project) for the distribution of products from Awa to Salawas. The pipeline shall
be laid to transfer EURO-III MS, EURO-III HSD and SKO from the existing MDPL
pumping station at Awa, in Pali district of Rajasthan, up to Salawas depot in Jodhpur
district of Rajasthan. The products shall be made available to this pipeline from existing
Mundra-Delhi pipeline. This cross country multiproduct white oil pipeline will supply
above mentioned products to Jodhpur and adjoining areas in the state of Rajasthan, India.

HPCL had commissioned 1054 km Mundra Delhi Pipeline (herein after referred to as
“MDPL) for transportation of multiproduct white oil from Mundra, in the state of Gujarat
to Bahadurgarh, in Haryana (Near Delhi) Delhi Pipeline in the year 2007 for handling 5
grades of products.

The brief details of the proposed pipeline based on reconnaissance Survey and DFR are
presented hereunder:

Awa- Salawas Pipeline

Originating Point - Awa (Existing Pumping station of MDPL)

End Marketing - Salawas (Existing Depot)


Depot

Products - 1 grade (Presently Euro 3) of MS, HSD & SKO.

SECTION WISE PIPELINE DETAILS


(Figs. are approximate & based on straight length taken from SOI maps)

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Section Length Elevation
(Kms) (in m)

AWA- SV-1 33.23 Awa- 296


SV-1 - SV-2 34.48 SV-1 - 234
SV-2 - SALAWAS 24.51 SV-2 – 197, Salawas - 192

(The length & RL figures wherever appearing in the document are approximate only and
final figures shall be intimated to successful bidder.)

The products for the proposed pipeline shall be sourced from Mundra Delhi Pipeline.

Details of existing Mundra Delhi Pipeline

Capacity - 5.0 MMTPA (Ph-1) & 5.8 MMTPA (Ph-II)


Originating Point - Mundra Terminal (Despatch Station)
Tap-Off Points - Palanpur, Ajmer, Jaipur, Rewari
End Point - Bahadurgarh
Pump Stations - Mundra, Santhalpur, Palanpur, Awa, Ajmer, Jaipur

Products - 2 grades of MS, 2 grades of HSD & one grade of SKO

SECTION WISE PIPELINE DETAILS

SECTION LENGTH (KM) DIA (INCH)


Mundra – Santalpur 196
Santalpur – Palanpur 130
Palanpur – Awa 215 18
Awa –Ajmer 130
Ajmer – Jaipur 116
Jaipur – Rewari 193
Rewari – Delhi 74 16
Total 1054

Details of Raman Mandi Bahadurgah Pipeline (RMBPL)

Capacity - 4.71 MMTPA (Ph-I), 7.11(Ph-II)


Originating Point - Raman Mandi (Dispatch Station)
End Point - Bahadurgarh (Existing Terminal)
Pump Station - Raman Mandi (GGSR (HMEL) Refinery in Punjab)

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(Provision for Pump Station in Ph-II at Barwala)

Products - 2 grades of MS, 2 grades of HSD, one grade of Naphtha, SKO & ATF

SECTION WISE PIPELINE DETAILS

SECTION LENGTH (KM) DIA (INCH) & Grade


Raman Mandi – Bahadurgarh 250 18 Grade X-65

After commissioning and stabilization of Raman Mandi – Bahadurgarh Pipeline, the off
take at Bahadurgarh from Mundra Delhi is expected to reduce and the capacity so vacated
in MDPL shall be utilized for movement of products in Uttar Pradesh/ Bihar/
Jharkhand/MP through the proposed Rewari Kanpur.

However, Bahadurgarh Terminal will continue to receive products from MDPL


intermittently and provision will be made for utilization of Bahadurgarh- Rewari section
of MDPL for diverting GGSR products through the proposed pipeline. This shall require
putting up Mainline and Booster pumps at Bahadurgarh for Ex-Bahadurgarh Pumping.
The proposed pipeline (RKPL) will require augmentation & realignment of Tankages at
MDPL locations to cater to the new Batch Schedule.

Details of Rewari Kanpur Pipeline (RKPL)

Chainage (Km.) Length (Km.) Design Wall Thickness (mm)


Pressure & Grade
(kg/cm2)
0.00 – 31.75 31.75 95 7.9/ API 5L Gr X - 65

31.75 – 436.5 404.75 81 81 6.4/API 5L Gr X - 65

Capacity – 4.4 MMTPA (Ph-I), 5.4(Ph-II)


Originating Point – Rewari Intermediate Pumping Station on MDPL (Proposed
Despatch Station for RKPL)
End Point – Kanpur Rural (Proposed Terminal)
Pump Station - Rewari
(Provision for Pump Station in Ph-II at Chg 278.3 KM)
Products - 2 grades of MS, 2 grades of HSD & one grade of SKO

The batch sequencing and detailed hydraulic study for Mundra – Rewari- Kanpur
Pipeline will have been carried out by the EPMC consultant for ASPL Project along
with design/engineering for ASPL Project. The required inputs/assumptions for
carrying out the study shall be provided by HPCL.

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The Jodhpur and adjoining areas are presently being fed by Ajmer and Jaipur Terminals
by movement of products by road. The proposed spur pipeline (ASPL) intends to feed
this market directly by linking the existing Salawas Depot to MDPL, thereby saving on
the cost of transportation of the products. The pipeline project envisages a dispatch
facility at MDPL’s Awa Intermediate Pumping Station and end receiving station facility
at existing Salawas depot. Tankage augmentation & realignment are also envisaged at
Salawas depot. Preliminary studies have been made during DFR which shall be handed
over to the successful Bidder for reference.

Reconnaissance Survey for the Pipeline route, SV stations and End station at Salawas has
been completed. Detailed Route Survey is expected to commence shortly.

2.0 FACILITIES:

The information provided below is meant for general guidance only. The facilities to be
provided shall be firmed up by Consultant as per owner’s requirements during the
implementation of work.

2.1 Awa-Salawas Pipeline

The Awa-Salawas Pipeline should have all required facilities for pipeline transportation
of petroleum products with end to end connectivity to the proposed End Receipt Station
and integration with the existing systems of MDPL. The facilities should include the
Pump station (if required), Scrapper (Pigging) stations, SVs and end receiving station etc.
The Pipeline sections should be provided with Cathodic Protection systems, OFC
telecommunication system along with associated station facilities. Automation, Control
and monitoring mechanisms for pipeline operations should be provided with PLC based
logics and Instrumentation at both stations and with SCADA and appropriate Application
software (APPS) for Leak detection, batch tracking etc. The scope includes study of
existing Telecom & SCADA system of MDPL and integration of the systems.

The brief details of the pipeline are elaborated hereunder:

2.2 It is proposed to lay cross country petroleum product pipeline from the Existing pumping
station of MDPL at Awa in Pali district of Rajasthan to existing depot at Salwas in
Jodhpur district of Rajasthan. The SV Stations shall be located at an approx. inter-
distance of 30 Kms.

The Reconnaissance Survey Report and DFR shall be given to successful bidder. The
pipeline route encounters crossings like Railway lines, Rivers, Canals, Roads, Drains,
foreign Pipelines, nalas, and other utilities etc.

2.2.1 System Description

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The Cross Country Pipeline has to be laid underground with a minimum cover of 1.0
meter/ as per Latest OISD standards from the top of the coated pipeline. In general, about
18 meter wide corridor will be acquired for Right of Use (ROU). Restricted corridors are
expected to be encountered and need to be taken note by the bidder. Suitable alternate
coatings, acting as external anti-corrosion coating for the buried pipeline shall be
recommended by the EPMC for approval of HPCL. Further, Cathodic Protection by way
of Permanent Impressed Current Cathodic Protection System is to be provided for the
total pipeline upon completion of total laying job to safeguard the pipeline against any
fault in the corrosion coating. Temporary Cathodic Protection shall also be provided
along while laying of the pipeline is in progress to prevent against corrosion protection.

The engineering details provided in the DFR shall be verified by the consultant for
technical soundness while proceeding with the scope of this work. The DFR has been
prepared in three components viz. pipeline, depot and MDPL batching and hydraulics.
The installation of Scrapper Stations and CP/ Telecom repeater Stations etc. need to be
firmed up with due diligence.

The pipeline design shall have all features of prevailing practices including Centralized
SCADA monitoring and control of various pipeline parameters integrated with existing
MDPL along with trending and historic data recording.
 Emergency remote shutdown of pipeline at specific stations by enabling bypass or
the total pipeline system
 Fully automated pumping operations
 Appropriate Application Software (APPS) for applications like the Leak
Detection system, Batch Tracking system etc.
 Online corrosion monitoring including automated corrosion inhibitor dosage

The pipeline design and different methodologies for laying at various places need to be
firmed up by the consultant upon award of the contract with due review of pipeline
survey details and inspection of important areas. In addition to various prevailing
technical requirements for the design, special care is needed to be taken for the seismic
fault areas and river crossings that are expected in the alignment of the pipeline.

2.2.2 Crossings:

The pipeline crosses Railway lines, rivers, roads, drains & nalas, other utilities etc. As per
the Reconnaissance survey data, the list of major pipeline crossings observed is listed
here under:

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ABSTRACT OF CROSSINGS

Sl
Type of Crossing
No Number of Crossings

1 National Highway 2

2 SH/MDR 3

3 Railway Line 2

4 Asphalted / Metalled Road 30

5 Canals and Distributaries 11

6 Rivers and Nalas 10

7 Minor Roads and tracks 37

8 Foreign Pipeline Crossings 3

Total 98

The above list is for bidders’ information only and the bidders are deemed to have taken
into account likely variations to any extent in their bids. The method of crossing needs to
be arrived at considering the cost economics, stipulations of approving
authorities/statutory agencies and the technical feasibility.

2.2.3 Despatch Facility at Awa:

Despatch station facilities shall be provided at Awa. The minimum facilities required at
this location include Take-Off Valves (MOVs) with NRVs from existing piping both on
the u/s and d/s of the existing mainline pumps, Control Valves, Flow meters, Scrapper
launcher, Density meter skid, Station isolation valves, Piping, Corrosion inhibitor dosing
system and monitoring mechanism, Instrumentation for flow, pressure, temperature,
density etc. All facilities need to be built on stand-alone basis right from the site
development till completion of commissioning. No other EPMC services will be engaged
for any other facility in the station to be built which are required by the owner for
pipeline operation. Bidders are deemed to have noted this and taken into consideration all
other facilities required in this regard.

2.2.4 Receiving Station at Salawas:

The Receiving Station at Salawas will have facilities viz. Station Isolation Valve (MOV),
Scrapper Receiver, Basket filter, Control Valve, Flow meter, Density meter skid, other
MOVs, HOVs & NRVs, Control room, Electrical room, Telecom room, Battery Room,

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DG Shed, Storehouse etc. and other equipment and facilities till the receipt manifold
outside the Dyke area. Surge Relief System shall also be installed at Salawas.

2.2.5 OFC based Telecommunication System:

The pipeline sections are to be laid along with dedicated armored OFC Cable of around
12 mono mode fibers supported with suitable SDH telecommunication system along with
repeater stations. The system shall support Voice, Data transmission, LAN/WAN, Video
Conferencing, CCTV systems at intermediate manned / unmanned locations etc. Data
transmission shall include all SCADA related data/ FAX etc. Installation of repeater
stations, if any, need to be optimized. The CCTV and Video Conferencing System shall
have option to integrate with existing system of MDPL. VHF communication is required
for voice communication along the entire stretch of the pipeline corridor. VHF
communication is required to be patched up through the proposed optical system for
voice communication. Both hand held terminals (for communication at each of the
telecom stations) and also vehicle-mounted terminals (for people on the move) along the
entire pipeline route is required.

2.2.6 CP System:

The pipelines are to be protected with TCP and ICCP systems during the construction and
post commissioning stages respectively. The temporary anode beds installed during
construction stage need to be disconnected before commissioning the Impressed Current
Cathodic Protection System. The CPTRU systems shall be backed up with required
backup battery systems as stand-by. Required surveys like CPL, CAT etc need to be
carried out for ensuring the healthiness and adequacy of the CP systems installed.
Interference mitigation surveys to be carried out and mitigation measures to be taken
before declaring the system as commissioned. All essential CP data to be displayed and
monitored thru SCADA system.

2.2.7 Turnkey Instrumentation:

At Pumping/Receiving/Exchange pit stations and other places where ever Interlock logics
are required for both product pumping operations and Electric substation operations, PLC
based turnkey instrumentation systems to be installed. The local station controls thus
installed at individual Stations and SVs need to be integrated with the SCADA/APPS
system of MDPL, as applicable including the local Terminal Automation System and
associated fire-fighting system.

2.2.8 SCADA System Overview

A State of the art SCADA (Supervisory Control and Data Acquisition) system based on
open architecture and on distributed processing and control environment shall be
provided for ASPL. The same needs to be integrated with the SCADA System of MDPL
to make it an integral part of the MDPL which will facilitate functioning of APPS

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modules properly. The system shall comprise of extensive use of open standards like
OSF/MOTIF, X-WINDOWS, TCP/IP for LAN, IEEE POSIX etc. and distributable
software modules, enabling a customized solution from a standard product. The SCADA
system to include RTU/Work stations at various important Stations along the pipeline
route to provide control and monitoring using conventional field instruments.

2.2.9 SCADA System Features

Operator/engineer from the SCADA Master Control Center (SMCC) at Mundra (to be
decided during detailed Engineering) will control and monitor the entire operations of the
pumping stations, pipeline, oil movement, pigging operations etc. At Awa and Salawas
Remote work stations to be provided for online data display. In addition one number
suitable template shall be developed to give selective access through HPCL intranet. In
addition, adequate means for Instrument validation and analysis, health of various
equipment, line pack and pipeline efficiency and also application software for leak
detection, batch tracking, pig tracking, custody transfer, prediction, analysis etc are to be
provided.

For this, all necessary measurements, alarms, trips, events etc. for safe operation are to be
recorded and stored for analysis. Advanced reporting software packages to be
incorporated in the SCADA system providing the means for analysis and reporting of
inventory management, equipment performance efficiencies, Cathodic protection system
performance, costing etc on real time basis.

The SCADA system shall also acquire Tank farm data of marketing depot installation for
online information and control of the pipeline operations. This system shall have the
capabilities of arriving at reference density, volume correction factor (VCF) based on
API tables, gross volume, net volume, mass and other associated data based on tank farm
data. Different display configurations are to be provided for tank inventory display on a
face plate design etc and these are to be integrated to the SCADA System displays in the
control rooms.

The SCADA System shall also have the means to report the custody transfer flow
metering data for highly accurate flow measurement for various products transported thru
the pipeline. The Key parameters at each SV station viz. Valve Status & Control, Fire
Alarm, MCC parameters, Battery Bank Status, DG status & Control etc.

The overall information network of the SCADA system shall provide all the means for
proper operation of the pipelines right from the point of receipt to delivery at respective
Marketing Terminal Installations. This network to be organized at different levels from
lowest central level to the highest MIS (Management Information System) reporting level
on real time basis interfacing with HPCL system .

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2.3 TERMINAL /DEPOT/INSTALLATION

The Receipt installation being an existing depot location, the facilities of the same shall
have to be augmented to cater to the requirements for receipt, storage and end to end
connectivity to pipeline pumping station. This shall have facilities like additional storage
tanks as may be required for augmented storage requirement, Slop pumps, Effluent
Treatment Plant (ETP), Additional Fire Water Tank and Pump to cater to the additional
Tankage facilities. The latest OISD revisions and recommendations of MB Lal
Committee approved by MOP&NG shall also be applicable. In addition thickness survey
on existing tankage, piping systems and firefighting equipment and systems shall be
carried out as per OISD- 129, OISD- 130 and OISD-142 respectively. Based on the
thickness survey inspection report, visual inspection or any other inspection (by non-
destructive methods without any outage) that may be carried out by EMPC, recommend
to the owner suitability of utilizing the existing tankage, piping and fire-fighting systems
so that the desired results expected from the various integrated facilities at Salawas depot
are achieved without compromising on any safe operating parameters. The EPMC shall
have to provide a stability certificate for safe operation of integrated facilities. The brief
details are elaborated hereunder:

2.3.1 Augmentation of existing depot facilities:

Storage Tanks: Additional tankage to be constructed / installed as required after re-


alignment of existing tankages to different product use. Also the storage requirements for
under-ground sump tank shall be worked out and accordingly additional sump tank(s) as
required to be constructed / installed to handle the blow-down & surge relief
requirements of the receipt station. The tankages shall be designed as per the latest
relevant standards and shall comply with all the relevant OISD and other statutory
requirements.

Loading/Unloading/Circulating Pumps: Circulating pumps as per API-610 coupled with


FLP motors are to be installed in the pump house. Pumps and pipelines of adequate
capacity to be selected based on the detailed design. The design shall be based on the
existing available pumping and piping system that will be utilized for depot operation and
integrated with the new pump and piping system.

Sump & Slop Transfer Pumps: Sump & Slop Transfer Pumps as per API-610 coupled
with FLP motors are to be installed for transferring the slop generated during depot
operation. Pumps and pipelines of adequate capacity to be selected based on the detailed
design.

Internal Piping: Additional Product Piping required for connecting the new facilities
with the existing facilities inside the terminal, manifolds etc. with product color coding to
differentiate among and from fire water, service water etc.

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Fire-fighting System: Additional fire-fighting equipment required due to tankage /
facility augmentation at Salawas. Entire installation shall be covered with fire-fighting
pipeline and fire-fighting system as per OISD – 117(latest revision).

Automation System: The automation works envisaged are for entire depot facilities
(including existing and proposed facilities required for - integration with the existing
facilities). The system shall be compatible for interfacing with JD ERP Software that is in
use by the owner for product accounting. The latest recommendation(s) of MB Lal
committee on SIL requirement of PLC and instruments based on the HAZOP study
results shall be implemented.

Office and other amenity buildings: Any additional buildings / structures that may be
required to be constructed to facilitate depot operations at Salawas marketing depot.

Civil works associated with Tankage augmentation: Entire installation shall be


covered with roads and drains for proper water drainage. Dykes, fire walls for the new
tanks, OWS network for the new Tankage & piping and its inter connection with the
existing OWS network. Path ways, culverts, operating platforms and other structures as
required.

Effluent Treatment Plant: Effluent Treatment Plant to be constructed / installed as per


the PCB & MOE&F requirements. The OWS system shall be appropriately routed to the
ETP. The type of plant and its capacity shall be worked out during detailed engineering.

Electrification: Electrification system for the new facilities shall be designed and
provided as per the Central Electricity Rules, OISD & CCOE requirements. The same
shall be integrated with the existing facilities. There shall be provision of DGs of
adequate capacities as standby power source for regular and emergency use. The total
power requirement considering the augmentation of existing facilities and the new
pipeline receiving station shall be calculated and accordingly any requirement for
enhancement in CMD shall be advised. The power to Pipeline facilities shall be provided
by Terminal MCC. EPMC shall inspect the existing electrical equipment and facilities
available which can be used for augmentation and integration with existing facilities. In
case EPMC based on their inspection is of the opinion that certain equipment/facilities
cannot be used then those shall be procured after obtaining approval from owner.

Green Belt Development: Development of additional green belt in the installation as


may be required by the local PCB and/or MOEF. Installation shall also have adequate
numbers of Lawns, green patches, flower beds, trees/ bushes etc.

Communication & Surveillance system: Integration of communication (both wired and


wireless) & surveillance system facilities for entire facilities of the depot. (Telecom /
CCTV/Walkie-Talkie etc.)

Turnkey Instrumentation: Interlock logics required for product pumping operations,


Electric substation operations, shall be PLC based. The instrumentation required on

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existing tankage, piping, firefighting and electrical system that would be in use after
commissioning of the entire facilities shall also be considered by EPMC. Integration of
instrumentation systems for pipeline with depot operations shall also be considered.

Vapor Recovery System: The Vapor recovery System is envisaged for recovery of
vapor released during filling of MS in Tank truck Gantry so as to meet the MOEF norms.
The system shall be capable to recover both from Top and Bottom for Tank truck Gantry.
Vapor balancing option shall also be studied and if found economical may be
implemented after obtaining approval of owner.

Notes for Pipeline and Depot:

1. All Enabling works associated with putting up new facilities or realignment are
deemed to be in the scope of EPMC bidder.
2. EPMC shall study the existing Power system at Awa & Salawas in detail. In case the
existing system is found to be inadequate to cater to the additional loads, a total
revamp of the system from Transformer end up to HT/LT feeder and downstream
including construction of new MCC building will have to be carried out at these
locations.
3. Salawas being an old location, EPMC agency shall study the condition, extent and
adequacy of OWS system and supplement the existing system or implement a new
network if found necessary for the entire plant along with an ETP.
4. As per the DFR studies additional Tankages and realignment of tankages are required
at Salawas. The final configuration shall be decided on the basis of Batch sequence
taking all possible combinations into account which can differ from the outcomes of
the DFR studies. EPMC bidder to take note of this aspect.

3.0 SCOPE OF WORK


Consultant shall deploy qualified personnel to carry out residual Basic Design, Detailed
Engineering of individual facilities to enable Consultant to take action on procurement of
material / equipment and finalization of specifications for supply & works contracts,
execution, inspection, planning, project management, construction supervision upto and
including commissioning. While doing so, Consultant shall ensure proper integration of
all Project facilities. The deliverables of Phase-I have been detailed for both the Pipeline
and Terminal. Balance deliverables shall be part of Detailed Engineering (Phase-II). The
scope of work shall include but not be limited to the following:

The work(s) required to be carried out for both Pipeline and Salawas Depot for which
EPMC services are required can broadly be categorized as under:

a. Construction of New Tanks including associated Civil, Mechanical, electrical,


Instrumentation works.

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b. Realignment of Tanks to different product use including associated Civil, Mechanical,
electrical, Instrumentation works.
c. Integration of New & realigned Tanks and related facilities with the existing/new
system.
d. Integration of common utilities viz. water, power, drainage, OWS etc.
e. Enabling works associated with putting up of new facilities or realignment.
f. Study of the existing system viz. Hydraulics/SCADA/Storage facilities /Product
Piping/Electrical/ TAS/OWS/ Instrumentation/firefighting etc. (wherever applicable) and
putting up of new system in case the existing system capacity is inadequate to include the
new items. Integration with the pipeline facilities wherever required.
g. MB Lal committee recommendation which have been accepted by Ministry for
implementation
h. Revising the layout as per OISPP and obtaining owner’s approval

3.1 Pipeline

3.1.1 Basic design and process description for the following:

1. Review of Optimization study and selection of pipeline material grade and thickness
based on hydraulics including transient analysis.
2. Product Batch Schedule for MDPL, RKPL and Tankage Requirement at Salawas to meet
the projected thruput requirements.
3. Plot plan for each Project block and unit.
4. Cut and fill grading drawings with quantity take offs.
5. Pressure drop and gradient profiles for respective pipeline sections.
6. Modifications required at Awa including new pump (if any).
7. Control Room requirement for each location.
8. Line pipe, all main line fittings, piping, mechanical equipment.
9. Line pipe coating.
10. Data sheets for all equipment, line pipe, line pipe materials and fittings including
Scrapper Station, SV Stations, Despatch location & Receiving Station.
11. CP systems for pipeline during construction and operation.
12. Fire protection system including fire hydrant system for the Pumping station and the End
station.
13. Electrical Single Line diagram.
14. Instrument loop diagrams.
15. DCS / PLC layout schematic.
16. Optical fibre telecommunication system. This shall include study of existing system of
MDPL and formulating scheme for integration.

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17. Supervisory Control and Data Acquisition (SCADA) & APPS including Leak Detection
System (LDS): This shall include study of existing systems of MDPL and formulating
scheme for integration.
18. Power requirement for new facilities. This shall include Study of Electrical Scheme at
existing stations and requirement of additional power and full revamp/modification in
equipment/ scheme thereupon.
19. Study of Civil, Mechanical, electrical &instrumentation system and facilities and
integration philosophy and methodology for all locations.
20. Buildings for all utilities both Plant and Non Plant.
21. OWS system, FF, FA, CCTV, roads, drains etc for new facilities and also integration
with existing network.
22. Environmental protection measures as per conditions stipulated by MOE&F and state
Pollution Control Boards.
23. Studies included in Paragraph 5.0 of this section B.
24. Formal and informal reviews as described in Paragraph 6.0 of this section B.
25. Construction and material specifications.
26. Commissioning specifications.
27. Review of project cost for each unit with equipment-wise breakdown.

3.1.2 Preparation of process package for Pipeline covering the following items:
1. Design basis
2. P&IDs & SLDs
3. Block Flow Diagram.
4. Process Flow Diagram.
5. Equipment list and process data sheets.
6. Instrument list and data sheets.
7. Utilities requirement and their specifications.
8. Piping material specifications.
9. Line schedule
10. Process description
11. Operation and control philosophy

Midway through Basic Design, the Consultant shall advise Owner the requirements of
following:

a) Construction Power and Water separately for all work sites.


b) Permanent Power and Water for operating facilities separately for all such locations.

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While designing various facilities, provision shall be kept for future expansion in the
thruput of pipelines. The optimization study shall also be reviewed considering this
aspect.

Consultant shall establish a separate team for doing the Basic Design work and this team
shall be located at a location chosen by Consultant as the center of their activities.

Note: In case the Bidder has qualified on the basis of the proven capabilities of their
Principals, then vetting of the Design from the Principals shall be carried out.

3.2 Salawas Depot: Basic design and process description for the following:

 Design Basis, Conceptualization, Basic design and Detailed Engineering.


 Pump size optimization including VFD (for additional pumps where required
including VFD for the existing pumps)
 Finalization of Plot Plan for New facilities in existing terminal.
 Designing of tanks, internal pipelines, various buildings, mechanical structures,
electrical equipment, site grading, roads, storm water disposal, sewerage water
disposal, green belt development, fire-fighting facilities.
 Architectural Plan for Buildings, layouts, drawings & other civil works.
 Tank size Optimization and Plate requirement.
 Designing and providing automation system, turnkey instrumentation and
communication system.
 Finalization of Data Sheet for Tanks, Pumps, Fire engines, Instruments, ETP,
electrical equipment, MOVS, ROSOVs, Loading arm, VRS, Pipes, DBBV, etc
 Finalization of Instrument List
 P&ID, SLD and Process Flow finalization.
 Data Sheet for other material, equipment & systems for Existing Locations
 Material Management
 Job Supervision, quality assurance & quality control.
 SHE implementation
 Pre-commissioning and Commissioning.
 Power requirement for new facilities. This shall include Study of Electrical Scheme at
existing station and requirement of additional power and full revamp/modification in
equipment/ scheme thereupon.
 Line Schedule
 Common Utilities and their integration.
 New OWS and ETP at Salawas.

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 Study of Civil, Mechanical, Electrical & Instrumentation system and facilities and
integration philosophy and methodology and implementation.
 Carrying out Thickness survey and/or any other inspection technique (non-destructive
without outage) for tankage, piping and firefighting system to enable EPMC to obtain
relevant data on the health of these systems and recommend to the owner regarding
reuse of any or all equipment in any of the systems mentioned above.

3.2.1 Preparation of process package for Terminal covering the following items:

1. Design basis
2. P&IDs.
3. Process Flow Diagram.
4. Equipment list and process data sheets.
5. Instrument list and data sheets.
6. Utilities requirement and their specifications.
7. Material specifications.
8. Operation, maintenance and control philosophy

Midway through Basic Design, the Consultant shall advise Owner the requirement of
Permanent Power and Water for operating the facilities to enable owner organize the
same before or co-terminus with the facilities.

4.0 DESIGN STANDARDS

The following design standards shall be used as a minimum in the Scope of work:

4.1 Indian Standards:

Oil Industry Safety Directorate (OISD) standards (latest) & recommendations


MB Lal Committee Recommendations accepted by MOP&NG
Oil Industry Joint Implementation Committee’s recommendation
Indian Boiler Regulations (IBR)
Bureau of Indian Standards (BIS)
Factory Rules

(In case of conflict among Indian standards or with International standards, owner should
be consulted for deviations which in Consultant’s opinion have cost impact.)

4.2 International Standards:

ANSI
ASME
ASTM
API
OCIMF
ISA
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NACE
IEC/IEEE
UL/FM/Vds/ATEX or equivalent.

4.3 Owner supplied Standards/ Documents:

The following Owner supplied design standards/documents shall, in addition to the


above, form the basis of the work:

1. DFR for Awa Salawas Pipeline and Associated Terminal


2. Product specifications.
3. Pipeline Route Survey including Soil Resistivity Survey report (as and when the activity
is completed).
4. Environment Clearance letters and EIA/RA study report (as and when the activity is
completed).
5. Purchase manual, CTE/CVC guidelines, QC and other manuals, circulars / stipulations /
policies, if required will be provided to the vendor

Apart from the above, following shall also apply

6 The set of Laws-Codes and rules that have been agreed between HPCL and the
authorities for the implementation
7 The “Rules of Good Practice” commonly used by the worldwide Oil Industry.

5.0 STUDIES TO BE PERFORMED

PIPELINE
The following process and engineering studies are to be performed as a part of the Work:

1. Pipeline Size/Pump Head Optimization


2. Surge Analysis
3. HAZOP study.
4. Optimization of Drives for various pump stations including Fixed Motor Drive, Variable
Speed Drives etc. (if any)
5. Optimum Product Batch Schedule, cycle time, Interface calculations etc. for Mundra-
Rewari-Kanpur and ASPL
6. Hydraulics for Mundra-Rewari-Kanpur and ASPL. The scope shall also include
calculating maximum pumping capacity that can be achieved in the various sections from
Mundra to Rewari of MDPL with addition of additional pumps at existing/proposed
pump station of MDPL without exceeding MAOP of the pipeline. In case thruput demand
is more that maximum pumping capacity then EPMC to recommend location(s) and
quantum/capacity of additional pump(s) to meet the thruput demand. Similar calculations
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shall also have to be carried out for various sections in Rewari-Kanpur pipeline and
recommend location(s) and quantum/capacity of additional pump(s). The inputs required
for carrying out the study shall be provided to the successful bidder.
7. Any other study / design required for satisfaction of owner/ external/ statutory agency
required for approval or for safe / efficient / convenient operation as advised by the
owner from time to time.
8. Green Belt development and environmental protection plan as per conditions stipulated
by MOEF
SALAWAS DEPOT
1. Internal Pipeline Size Optimization with surge analysis
2. Optimization of total tankage basis owner supplied batch size.
4. Design of the tanks and foundations as per API-650 (latest edition). Carry out study
regarding more economical option between the following considering cost towards
implementation of M B Lal Committee Recommendations:
(i) External floating roof tank (EFRT)
(ii) Internal floating roof tank (IFRT) with Aluminum Dome cover
5. Designing and preparation of Architectural drawings for various buildings
6. Sewerage Disposal System
7. Plant layout, layout of the roads, design of storm water drains, pipe culverts, ERC/IRC
etc.
8. Electrical system and equipment
9. Site grading plan, micro grading plan and beautification
10. Scheme for collection of oily water spillage, u/g drainage system and design of Effluent
Treatment plant to meet requirement of State Pollution Control Board (SPCB). Similar
scheme for meeting the ambient air quality prescribed by SPCB shall be prepared and
implemented. Noise pollution shall be within the limits prescribed by Central Pollution
Control Board (CPCB)
11. Fire Fighting - system
12. Automation - for the tank farms, Tank Truck loading and the fire-fighting system and its
integration with other automation systems in the installation.
13. Green belt development plan and environmental protection plan as per conditions
stipulated by MOEF
14 Integration Philosophy and methodology of new equipment, system, utilities etc. with the
existing one at MDPL- Awa Pumping Station and Salawas Depot.
15. HAZOP & Quantitative Risk Assessment study

6.0 DESIGN REVIEW(S)


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Periodic formal (preferably fortnightly) and informal (on issuing documents, drawings,
studies, etc.) reviews of the design work shall be required. Consultant shall provide time
and personnel to participate in these reviews.

7.0 DOCUMENT REQUIREMENTS


The following document/review requirements during the performance of the Work shall
be met:

1. Documents for Approval:

Three copies of all documents are required for Owner’s approval.

2. Drawings for approval:

Besides full size drawings, three copies of 11” x 17” shot down of each drawing shall
also be provided for Owner’s approval.

3. Studies for Approval:

The studies listed in the section STUDIES must be submitted as draft reports and not as
notes for approval.

4. Approval Turnaround:

Owner shall have fourteen days of review to make comments or approve all documents /
drawings.

5. Final Approved Documents & Drawings and Studies:

Eight copies of the final approved documents, full size & shot down drawings and studies
are required. CD/DVDs and CAD diskettes shall also be provided.

8.0 DELIVERABLES FOR PHASE-I

PIPELINE

a. Design Basis
b. P&IDs & SLD
c. Review of optimization study and selection of pipeline material grade and thickness
based on hydraulics including transient analysis
d. Pipeline Pump/ Head Optimization & Surge Analysis
e. Optimization of drives for various pump stations (if any)

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f. MR for Line Pipe and floating of tender enquiry
g. MR for Coating, transportation and Dump Yard & floating of tender enquiry
h. MR for Main Line Pumps (if any) and Control Valves & floating of tender enquiry.
i. Plot Plan for receipt facilities
j. Data required for putting up application to PESO
k. Batch Schedule for MDPL/RKPL & Tankage requirement at Salawas.

TERMINAL

a. Design Basis
b. P&ID, process flow diagram & SLD
c. MR for Steel Plates
d. MR for Product Pumps ( if any)
e. Plot Plan for New facilities and updating of the plot plan of Existing Salawas Depot.
f. Data & Drawing required for PESO approval
g. Tankage Requirement and sizing.
h. Carry out thickness survey and/or any other non-destructive inspection(s) without outage
for tankage, piping and firefighting systems.
i. Preparation of drawings for existing tankage, piping and firefighting systems after site
survey. The overall plot plan that may be available with the owner shall also also be
physically verified at site and modifications/corrections incorporated. This shall form the
basis for any add ons to the existing system.
j. Testing of ground water for usage in firefighting facility. Recommend measures in case
ground water found not suitable for usage in firefighting.

Note: Balance Basic Engineering, Detailed Engineering and other works as per the scope of
work shall be part of Phase-II till Final Acceptance of work.

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(SCOPE OF WORK)

C. SCOPE OF DETAILED ENGINEERING

Page 30 of 210
C. SCOPE OF DETAILED ENGINEERING
PIPELINE

Consultant shall deploy separate team of qualified personnel at the location chosen as
Center of Consultant’s activities for doing Detailed Engineering work basis Basic
engineering work. While doing so, Consultant shall ensure proper integration of all
Project facilities. The Detailed Engineering work should produce adequate specifications
for procurement of materials / equipment and work contracts. The Detailed Engineering
work should produce detailed specifications and estimated quantity (with +/- 10%
variation) for procurement of materials / equipment and work contracts. Consultant shall
endeavor to eliminate change orders. The scope of work shall include but not be limited
to the following:

MAINLINE

1. Preparation of alignment sheets and other construction drawings including those for
various Rail, Road, River, Canal, Pipeline crossings etc. along the pipeline route.
2. Main pipeline configuration.
3. Specifications for line pipes and other mainline related items, Material Take Offs
(MTOs) and Material Requisitions (MRs).
4. Specifications for line pipe external corrosion coating.
5. All Civil works related to Pumping station (PS)/ Telecom Stations (TS)/ Cathodic
Protection Stations (CP) and Sectionalizing Valve Stations (SV), Receiving Stations, etc.
6. Specification for all Pipeline laying/ Civil/ Mechanical and related works.

MAINLINE PUMPS (if any)

1. Data sheet specifying minimum, maximum and normal flow rates, suction and discharge
conditions, operating and design temperatures, pressures, NPSH, materials of
construction, seal type, seal fluid etc.
2. Preparation of detailed Engineering specification for all the mainline and booster pumps.
3. MTO and MR for all the items.

CONTROL VALVE

1. Data sheet specifying minimum, maximum and normal flow rates, operating and design
temperatures, pressures, materials of construction etc.
2. Preparation of detailed Engineering specification.
3. MTO and MR for all the items

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CATHODIC PROTECTION SYSTEM

1. Review of soil resistivity survey data for the entire route.


2. Develop design basis for cathodic protection systems during pipeline construction and
operation.
3. Design/Technical specification, detailed engineering for various items like TR units,
anode beds, cables, TLP points including Battery backup units.
4. Specifications for design, supply, installation, testing and commissioning of CP systems.
5. Specification for Corrosion monitoring system and CI Dosing System.
6. MTO and MR for all items.

SCADA & APPS / TELECOMMUNICATION

1. Design basis and scheme for SCADA & APPS / Telecommunications network.
2. Consultant to develop detailed technical specification for optical fiber telecommunication
system covering the optical fiber terminating equipment, drop and insert equipment,
multiplex equipment, repeater stations, etc.
3. Detailed technical specification of SCADA & APPS covering system design, hardware,
software, disk sub system, communication interface cards, Remote software, terminal
units, cables, connector, application software, and interfacing with optical fiber
communication system.
4. MTO and MR for all the major items.
5. Specifications for optical fiber cable laying including jointing, splicing, terminating etc.
6. Specifications for design, supply and installation, testing and commissioning of SCADA
& APPS system / Telecommunication System.
7. Integration with existing SCADA System, Telecommunication System of MDPL.

8. The scope shall also include firming up of VHF communication system through OFC,
CCTV, Video Conferencing etc

ELECTRICAL

1. Preparation of electrical design basis, preparation of single line diagram covering power,
lighting, control and instrument power supply.
2. Overall circuit diagrams showing all equipment for power distribution and all essential
connections.
3. Cable schedule for Power Control and Lighting cables
4. Cable layout diagram
5. Motor data sheet

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6. Layout of electrical equipment, routing of power cables, general lighting for installations,
Buildings and Roads.
7. Earthing scheme covering number of earthing pits, earthing grid, identification of
equipment for earthing, detailing of earthing connection.
8. Identification of process requiring interlocks, scheme for interlocks, identification of
equipment required for interlocks, etc.
9. Technical specification for circuit breakers, transformers, switch gear, UPS, panels,
cables, DG Set, FA System, Clean Agent system, HC Detectors and all other electrical
equipment.
10. Scheme and detailed technical specifications of HT/LT Power line at all Pumping Station
locations from Supplier’s substation up to receiving substation.
11. MTO and MR for all the items.

INSTRUMENTATION

1. Piping & Instrumentation diagram and integration with other instrumentation systems
like Tank farm management and other pipeline parameters at existing locations.
2. Cable schedule for Instrumentation cables.
3. Cable layout diagram.
4. Schematic drawing showing instruments.
5. List of all indicating instruments.
6. List of all locally/field controlled instruments & remote controlled instruments.
7. Classification and Technical specifications of all Instruments.
8. Detailed design of logic control loops, interlocks, PLC/other controls.
9. Detailed design of Petroleum product Interference detection systems and batch formation
mechanisms
10. Detailed design of internal corrosion monitoring systems
11. Review of vendor design, comments & modifications and suggestions on other available
alternatives.
12. Preparation of Circuit diagrams showing all cable connections.
13. MTO and MR for all items.

ARCHITECTURAL / CIVIL / STRUCTURAL WORKS

1. Overall plot plan location wise for various above ground stations.
2. Architectural and structural drawings for various buildings at each of the stations.
3. Site grading plan and layout of roads / storm water disposal / sewage disposal at above
locations.

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4. Layout for individual facilities at each of the stations including buildings (plant and non
plant).
5. Fire-Fighting facilities at all stations.
6. Detailed technical specification for Plant/Non plant buildings, Equipment Foundations,
Roads, Drains, Compound wall etc.
7. Green belt development plan and environmental protection plan.
8. MTO and MR for all items.

MECHANICAL WORKS

1. Design of sump tanks, slop tanks, interface / balancing tanks to be constructed at stations.
2. Design and sizing of corrosion inhibitor dosing Tank and pumps.
3. Layout and design of piping at stations.
4. Design of suction piping, sizing of suction piping from the tanks to booster pumps and
mainline pumps.(if any)
5. Design of Displacement Water Tank
6. Data sheets for all other items, accessories/spares related to above items/work.
7. Detailed technical specifications for all mechanical related items.
8. MTO and MR for all the items beyond the battery limits specified at respective stations

Note:
1. At Existing station the scope shall also include study, MR preparation, Tender
finalization and integration of common facilities/ utilities/infrastructure with the existing
one viz. Automation, SCADA Instrumentation, Electrical System, OWS, Roads, Drains,
FF System, Communication System, FA system, CCTV network etc.
2. The Consultant shall provide required drawings for Pipeline, Terminal, and Building,
structures for making application to PESO, MOEF, Factories Dept., Town Planner /
Development authority or any other statutory bodies.

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TERMINAL

STORAGE TANKS (TANKAGE SYSTEM)

1. Preparation of detailed design for most economical foundation system.

2. Prepare detailed design for arriving at size of steel plates required and size wise quantity,
design drawings for the tanks.

3. Specification and design of Cathodic Protection System for the tank bottom plate
including that of existing tanks if possible.

4. Sizing of inlet/outlet nozzles.

5. Design and Specifications for Cone Roof/ floating roof tanks.

6. Design and specification for robust roof drain system for floating roof tanks.

7. Design and specification for Rim Seal Fire Protection System and roof Sealing System.

8. Design and specification for Underground Sump Tanks (if any).

9. MTO and MR for all of the above.

ELECTRICAL

1. Preparation of electrical design basis, preparation of single line diagram covering power,
lighting, control and instrument power supply.

2. Overall circuit diagrams showing all equipment for power distribution and all essential
connections.

3. Cable schedule for Power Control and Lighting cables

4. Cable layout diagram

5. Motor data sheet

6. Layout of electrical equipment, routing of power cables, general lighting for installations,
Buildings and Roads.

7. Earthing scheme covering number of earthing pits, earthing grid, identification of


equipment for earthing, detailing of earthing connection.

8. Identification of process requiring interlocks, scheme for interlocks, and identification of


equipment required for interlocks, etc.

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9. Technical specification for circuit breakers, transformers, switch gear, UPS, panels,
cables, DG Set, FA System, HC Detectors, Clean Agent System and all other electrical
equipment.

10. Scheme and detailed technical specifications of HT/LT Power line at Terminal location
from Supplier’s substation up to receiving substation.

11. Scheme and detailed engineering for Electrical System Automation.

11. MTO and MR for all the items.

TELECOMUNICATION/ INSTRUMENTATION / TERMINAL AUTOMATION

1. Piping & Instrumentation diagram for the terminal and integration of the Tank farm
management, fire-fighting system, communication system and other instrumentations like
the product receipt exchange pit and dispatch pumping station control room.

2. Cable schedule for Instrumentation cables.

3. Cable layout diagram.

4. Schematic drawing showing instruments.

5. Detailed technical specification for integration of new facilities in existing Terminal


Automation System covering system design, hardware, software, communication
interface cards, Remote software, terminal units, cables, connector, application software
etc for Tank Farm System, Product receipt, storage and distribution, Fire Alarm System,
PA system, CCTV, VHF system, Fire Fighting automation, HC detectors system, Access
Control, Calibration etc. The SIL requirement for PLC and instruments to be firmed up
and implemented based on the HAZOP studies carried out by EPMC.SIL for
loops/systems to be ascertained before recommending the SIL requirement of the
instruments/equipment in the loop/system.

6. Scheme & detailed technical specification/job specification for Tank Automation system.

7. List of all indicating instruments.

8. List of all locally/field controlled instruments & remote controlled instruments.

9. Classification and Technical specifications of all Instruments.

10. Detailed design of logic control loops, interlocks, PLC/other controls.

11. Integration of Telecommunication System and Terminal Automation System with that of
the Pump station/ Receipt Station for the cross country pipeline.

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12. Identification of process requiring interlocks, scheme for interlocks, identification of
software/hardware/logics required for interlocks, etc.

13. Review of vendor design, comments & modifications and suggestions on other available
alternatives.

14. Preparation of Circuit diagrams showing all cable connections.

15. MTO and MR for all items.

ARCHITECTURAL / CIVIL / STRUCTURAL WORKS

1. Overall plot plan location wise for various above ground station / terminal,

2. Architectural and structural drawings for various buildings at each station / terminal

3. Detailed Design and drawing of Building/ Structures at respective locations

4. Site grading plan and layout of roads / storm water disposal / sewage disposal at
respective locations.

5. Layout for individual facilities at each of the stations including buildings (plant and non
plant).

6. Fire-Fighting facilities at all stations as per relevant latest OISD norms and related
automation.

7. Detailed technical specification for Plant/Non plant buildings, Equipment Foundations,


Roads, Drains, Compound wall etc.

8. Green belt development plan and environmental protection plan.

9. MTO and MR for all items.

MECHANICAL INTERNAL PIPING WORKS

1. Design and sizing of the pipelines for required boundary conditions.

2. Layout and design of piping of the terminal including detailed drawings for hook-up of
piping of the new facilities with the existing system.

3. Design of various piping system as per approved P&ID which include, inter alia, suction
piping, discharge piping etc.

4. Data sheets for all other items, accessories/spares related to above items/work.

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5. Detailed technical specifications for all mechanical related items.

6. MTO and MR for all the items.

ELECTRIFICATION SYSTEM

1. Design of the electrical system as per IE rules/ OISD and SEB requirements.

2. Design and sizing of the transformer, Standby DG Set.

3. Design of the control gears, control panels etc.

4. Design and sizing of the cables both LT & HT.

5. Design and optimization of illumination plan and finalize for High Masts.

6. Design of the ERCs/IRS and cable trenches and building cablings.

7. Data sheets for all other items, accessories/spares related to above items/work.

8. Detailed technical specifications for all related items.

9. MTO and MR for all the items

EFFLUENT TREATMENT PLANT

1. Design and sizing of ETP basis designed surface runoff basis rainfall
2. Establishing BOD/COD requirement at inlet/out let of ETP conforming to requirements
of Pollution Control Board.
3. Designing & Sizing of the ETP for above and oil content of 5ppm/ as per MOEF
guidelines at the final outlet.
4. Design and sizing of the collection drains, slopes, cleaning and maintenance facilities.
5. Design of the instrumentation system for Automated function of the system
6. Detailed technical specification for all components and related items.
7. MTO and MR for all the items.

FIRE FIGHTING SYSTEM AS PER OISD (LATEST EDITIONS)

1. Designing of firefighting equipment


2. Designing of firefighting piping network
3. Designing of Fire Alarm System

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4. Detailed technical specification for all components and related items.
5. MTO and MR for all the items

VAPOUR RECOVER SYSTEM

1. Design of Vapour recovery skid considering future thruput


2. Design of piping systems for vapour recovery viz. Piping from loading gantry to skid
and skid to tank(s)
3. Detailed specifications for all components of vapour recovery skid and related items
4. MTO & MR for all items

Note:

1. At Existing station the scope shall also include study, MR preparation, Tender
finalization and integration of common facilities/ utilities/infrastructure with the
existing one (if available) viz. TAS, Electrical System, OWS, Roads, Drains, FF
System, Communication System, FA system, CCTV network. If the existing system
does not exist or is found to be inadequate to handle the addition of new facilities a
total revamp of the system shall be made and necessary design / detailed engineering
for the same shall also be in the scope of the Consultant.

2. The Consultant shall provide required drawings for Pipeline, Terminal, Buildings/
structures for making application to PESO, MOEF, Factories Dept. Town Planner/
Development authority or any other statutory bodies.

Page 39 of 210
(SCOPE OF WORK)

D. EPMC SERVICES IN PROCUREMENT AND MATERIALS MANAGEMENT OF


MATERIALS AND EQUIPMENT.

Page 40 of 210
D. EPMC SERVICES IN PROCUREMENT AND MATERIALS MANAGEMENT OF
MATERIALS AND EQUIPMENT

This Section D details the scope of services of Consultant in Procurement and Materials
Management of Materials and Equipment.

Consultant shall provide procurement & materials management services for all Materials
and Equipment required for completion of the work.
The scope shall include but not be limited to:

1. Developing detailed procurement procedures, in consultation with the Owner.


2. Establishing vendor lists.
3. Preparing and floating tender enquiries.
4. Follow-up and review of responses.
5. Recommendation of supplier.
6. Approval of Supplier Drawings/Designs.
7. Monitoring the procurement progress.
8. Expediting and Inspection.
9. Ensuring proper transportation, logistics and material management.
10. Maintaining the material inventory, consumption statement, MIV / MRV etc.
11. Reconciliation statement & handing over of the surplus.
12. Technical Assistance in Insurance claim.

Procurement Procedure:

A detailed procurement procedure shall be prepared immediately after award of contract


submitted to Owner for approval. The procurement procedure shall incorporate all
changes made necessary as a result of contractual agreement between Consultant and
Owner, or as a result of specific requests made by Owner. In general the procurement
procedure should be in line with the Existing Purchase policies and procedures of the
owner. The same will be shared with consultant upon award of contract.

The Indigenous Tendering shall be done through e-procurement for “Open” or “Limited”
tenders whereas Global “Limited”/ “Open” tender shall be on conventional mode of
tendering. The e-procurement services to HPCL are presently being provided by M/s C1
India Pvt. Ltd. The service provider may continue or change during the course of
execution of the Project. In either case, the procurement shall be done through e-
tendering only, for Domestic tenders and services shall be provided by such agencies as
existing during the tendering process. EPMC Bidders shall note following important
points

a. The charges to service provider for e-tendering shall be on Owner’s account.


b. All charges towards training of Consultant’s personnel on the e-procurement
module by the Service Provider shall be on Consultant’s account.

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c. All charges towards obtaining Digital Certificate for Consultant’s personnel shall be
on Consultant’s account.

d. HPCL shall reimburse charges towards Publication of Tender Notice/ Addendum/


Corrigendum in News Paper directly to the agency. All other expenses incurred for
Tendering activity from the stage of PR generation up to Techno commercial
recommendation shall be on Consultant’s Account.

e. The Flow Chart for Tendering activity shall be mutually decided with the successful
bidder in line with the e-procurement system, Purchase Manual and CVC guidelines.

f. Tender fee, if any, collected in the process of Domestic/ Global tender shall be
deposited by the Consultant in Owner’s account.

Quality Assurance:

Consultant’s participation in the quality assurance program will focus on the vendor’s
compliance with applicable quality control measures. Such elements as vendor
qualification surveys, provision of correct and complete documentation to the vendor,
inspection and testing during fabrication and production, monitoring material handling
and control procedures of the vendor and proper handling, storage and shipping of
equipment after manufacture are significant aspects of the quality assurance program.
Consultant shall conduct audit of vendors to continually ensure that they are complying
with the quality assurance requirements as stipulated in procurement documents.

Vendor List:

A vendor list is to be prepared for supply of Materials and Equipment in consultation


with HPCL. This list will be based on Consultant’s experience with Indian and
worldwide vendors. Wherever feasible, the endeavor shall be to include as many Indian
vendors as possible. The vendor list is to be submitted for approval by Owner in case of
Limited Tender Enquiry.

Warranties and Guarantees:

Consultant shall obtain from the vendors, the best possible warranties and guarantees
covering workmanship and materials for the benefit of Owner and will take all steps to
ensure that such warranties and guarantees are enforced.

Sourcing of Materials and Equipment:

Indian sources of supply shall be solicited for material based on the Owner approved
vendor list. Any decision to purchase materials outside India for reasons of schedule
conflict, lack of competitive pricing or critical nature of the materials will be subject to
Owner’s review and concurrence.

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A detailed breakdown of sources of supplies is to be prepared after award of contract.

Cost Estimate:

Consultant shall prepare item wise cost estimate for each material requisition (MR) in
excel Sheet and hand over to HPCL for entering into the JDE/ERP system for creation of
system generated PR No. The e-tender No. can be generated only after feeding the JDE
PR No. This cost estimate will form the basis for comparison of bids and negotiations, if
required. The Consultant shall also submit Rate Analysis for estimates whenever asked
by the owner. Consultant shall also forward Vendor list for Owner’s approval in case of
“Limited Tender” enquiry.

Inquiries:

A central procurement team is to be assigned by the Consultant to manage and conduct


the purchase of all equipment and materials.

Tender Inquiries are intended to be prepared and floated for, but not limited to, following
major materials / equipment for direct procurement (following list is indicative and
changes may undergo depending upon requirements)

PIPELINE & ASSOCIATED WORKS

- Line Pipes/coating/coated line pipes.

- Pressure & Flow Control Valves

- Scrapper Launcher/Receivers along with all accessories

- All other pipes for process, Fire Fighting, utilities etc.

- All types of valves including Surge Relief Valves and Safety Valves.

- Sump tanks, Corrosion Inhibitor tanks, Corrosion probes, Corrosion monitoring


system etc.

- Mainline Pumps/ Drives & Variable Speed Drives

- All types of Pump sets, including Process / Fire-fighting pump sets etc.

- Strainers, filters, water separators etc.

- Indicating and Controlling Instruments like Flow meters, Density meters, Flow
computers, Sulphur Analyzer etc.

- Cathodic protection systems including TRUs, Battery Banks, Battery chargers

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- All HT & LT electrical equipment like Transformers, Switch Boards, Capacitor
banks, Power & Lighting Distribution Boards, DG sets, Motors, Circuit breakers,
Contactors, Relays, UPS, Battery backups and chargers etc.

- All Fire-fighting equipment like Hydrants, Monitors, Hose pipes, Nozzles, Hose
boxes, Fire Extinguishers, Water gel, Fire suits, Clean Agent, HC detectors, Fire
Alarm etc complete as per the requirements of OISD-117..

- HOT/EOT Crane

- Water/Foam Tender and emergency Response vehicle.

TERMINAL & ASSOCIATED WORKS

- Steel plates

- Product and hydrant Pipes, internal lining etc., if any for the fire hydrant lines.

- Fire Fighting engines, foam systems as applicable and firefighting materials and
utilities etc.

- All types of valves including ROSOV, DBB, and Safety Valves.

- All types of Pump sets, including Process / Firefighting pump sets etc.

- Strainers, filters, water separators etc.

- Cathodic protection systems for the tank bottoms including TRUs, Battery Banks,
Battery chargers

- All HT & LT electrical equipment like Transformers, Switch Boards, VFD,


Capacitor banks, Power & Lighting Distribution Boards, DG sets, Motors, Circuit
breakers, Contactors, Relays, etc.

- All Firefighting equipment like Hydrants, Monitors, Hose pipes, Nozzles, Hose
boxes, Fire Extinguishers, Water gel, Fire suits etc as per OISD-117 (latest
edition).

- Effluent Treatment Plant (ETP)

_ Loading &Vapour Arms & Vapor recovery System

- High Mast for Yard Lighting, street lights and other focused lights

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Inquiries shall, generally, be issued to sufficient number of vendors on two bid basis, so
as to ensure receipt of competitive bids from them or from more acceptable vendors,
unless the number of vendors on the approved vendor list is specifically limited or where
a sole source is stipulated in the Project specifications.

Public/Global Tenders shall be invited in case of insufficient number of approved


vendors (less than min. 6 nos) or for specialized items / equipment for procurement
tenders/works whose value is over Rs. 300 Lakhs. Without any prejudice to the above,
Owner reserves the right to decide the nature of tenders to be floated for various
procurement items/work contracts and consultant shall abide by the Owner’s decision.

Bids will be solicited directly from manufacturers except where trade practices in specific
geographical locations necessitate the use of distributorships.

All requests for quotations shall be prepared in English and shall contain the requirement
that formal proposals also be submitted in English.

Inspection by Consultant or a duly authorized third party on behalf of Consultant will be


indicated on all inquiry documents.

Quotation Evaluation:

Consultant shall techno-commercially evaluate the Bids to assess the bid’s compliance
with the technical specifications and commercial terms and conditions.

Consultant shall ensure that all information received from vendors of either a commercial
or technical nature will remain confidential and will not be disseminated to unauthorized
persons.

Consultant shall prepare technical evaluation sheet indicating comparison between


specification of materials/equipment required and offered by various vendors clearly
bringing out technically acceptable and not acceptable deviations with reasons thereof.

The commercial evaluation sheet shall include, but not be limited to, the following
information:

a. Requisition and item number.


b. Equipment or tag number.
c. Brief description of equipment or materials with item code.
d. Quantity.
e. Shipping arrangements.
f. Comparison of delivery promise with required delivery date.
g. Escalation, if applicable.
h. Quotation validity.
i. Terms of payment.

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j. List of exceptions to Terms and conditions.

As deemed necessary by Consultant, pre-award meetings shall be scheduled with vendors


to ensure that all aspects of the inquiry and proposal have been properly interpreted and
evaluated.

Consultant shall, during negotiations with vendors, finalize startup assistance and
maintenance services where required.

Purchase Recommendations:

At the conclusion of the techno-commercial evaluation phase, an evaluation sheet shall


be prepared by consultant and submitted to Owner for approval before opening price
bids. On receipt of Owner’s approval, Consultant shall open Price bids in the presence of
Owner’s representatives as necessary and shall prepare price evaluation sheet. The
consultant shall submit recommendations for placement of order on the selected vendor
on the basis of price evaluation. Upon approval of purchase recommendations by Owner,
a Draft Purchase Order (DPO) including Purchase Requisition (PR) shall be submitted by
Consultant to Owner for releasing Purchase Order on the successful vendor.

DPOs will include a statement that the equipment concerned is subject to inspection and
the Owner’s representatives will have access to the supplier's work, including access to
their sub- supplier's works, during all stages of manufacturing/testing.

When purchased equipment or materials are subject to technical changes covered by


revisions of requisition or monetary or delivery changes resulting from technical
revisions, suitable recommendations for issuing a “Change Order” shall be given
promptly to update the current purchase order information. All vendor claims for extra
costs shall be reviewed and justified by Consultant, but approved by Owner. Consultant
to ensure avoidance of such claims with due care during the tender preparation.

Review/Approval of Supplier Data/Drawings/Design:

Consultant shall ensure expeditious submission of data/drawings/designs by the supplier


and review the same within 10 days of receipt at Consultant’s office. Incompleteness of
data submitted by supplier shall be clearly brought out by Consultant. Consultant shall
endeavor to approve the data/drawings/designs submitted by suppliers in the shortest
possible time but not later than 20 days from the date of receipt of first submission. Any
delay beyond 20 days in approval of submissions made by supplier shall be brought to
the notice of Owner, along with reasons for the same.

Expediting and Inspection:

The proper control of purchased materials includes both expediting and inspection of
materials throughout the manufacturing cycle. Consultant shall perform (or assign to

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approved third party like Lloyds, BV and DNV) inspection and expediting of
materials supplied from Indian and foreign sources.

The objective of this material control effort is to ensure continuous progress in the
fabrication or manufacture of equipment and materials, and to ensure that such
fabrication of manufacture is accomplished in accordance with the technical requirements
and specifications of the project. Accordingly, inspection shall be performed by
Consultant or Consultant appointed organizations approved by Owner and statutory
bodies in accordance with data sheets, drawings, and specifications incorporated in the
commitment documents transmitted to the vendor. Expediting of all purchase orders,
including all revisions or amendments thereto, for this project shall continue from the
time of commitment until the material or equipment has been shipped.

Expediting reports will reflect the expediter’s assessment of the order status and in the
event of problem areas, the actions taken, suggested or required. Consultant shall be
responsible for anticipating problems and taking corrective action.

In the event of delivery slippage by a vendor, a report shall be issued detailing the basis
for the slippage and advising the action the vendor is taking to improve the revised
delivery promise.

Whether the supplier’s shop is visited periodically or not, the supplier will be required to
submit to the expediting department weekly progress / status schedules covering both
engineering and manufacturing progress.

Vendor data shall be expedited immediately. Detailed schedules for receipt of


engineering information from the vendor should be established, based on the requisition
requirements and in keeping with engineering schedule requirements.

Consultant shall review all “routine data” and “priority data”. Priority data shall be
specified, procured, handled and distributed expeditiously. Vendor information shall be
designated as priority data only when vendor’s engineering efforts are contingent upon
receipt of that information. Priority data shall be reviewed by Consultant and returned to
the vendor within Ten days of receipt.

Delivery updates and other pertinent expediting information shall be provided for
inclusion in a monthly Material Status Report. Any significant delivery slippage shall be
highlighted and the remedial action noted allowing Consultant to evaluate potential
scheduling problems.

Inspection reports shall be issued upon each visit to a shop. This will ensure resolution of
any noted problems.

When the volume of work placed in a vendor’s shop dictates, or when extensive
problems have been encountered, a resident full-time inspector shall be assigned to the

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shop to ensure his attendance during all phases of fabrication or manufacture and timely
resolution of problems.

Where required by Consultant, the noted materials or parts of equipment items and base
material shall be verified utilizing specialized equipment that will ensure the chemical
composition of the material is correct as stipulated for the intended service.

Consultant to assist HPCL to get insurance claim of any accident. Consultant to extend
their services for inspection of repairs or replaced material etc.

Materials Management:

Consultant shall be responsible to Owner for materials management for goods purchased
from various suppliers, including line pipes. Consultant shall keep proper custody of
goods and report losses / damages / shortages, if any, to the Owner immediately on
noticing the same. Owner will provide necessary security personnel for stores / stack-
yards at Owner’s cost, who will report to the Consultant’s stores manager. In addition to
above stores, open stack-yards, which shall be acquired / developed at Owner’s cost, will
be set up at various locations along the route of the pipelines depending upon
construction requirements.

The scope of Materials Management Services to be provided by Consultant shall include,


but not be limited to, the following:

1. Receive equipment / materials from suppliers and certify their invoices for payment.

2. Inspect the condition of goods received and issue ‘goods receipt vouchers’ to suppliers /
transporters.

3. Maintain a register of suppliers covering all equipment and materials distinguishing


between manufacturers / stockists / supply houses.

4. Provide a unified materials coding system including catalog structure and compatability
with other systems.

5. Prepare and submit reports every 15 days indicating the stores on hand, goods in transit,
goods issued to contractors and balance goods to be received as per respective purchase
orders.

6. Maintain stores at site to properly store all the equipment / material and certify bills of
handling contractors and transporters. The space for storing equipment / material and the
office space for stores manager / assistant shall be provided by Owner. Cost of all labour
for handling material / equipment in the stores and cost of transportation of materials
from delivery point to stores shall be to Owner’s account.

7. Issue material for construction to contractors and prepare ‘goods issue vouchers’ thereof.

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8. Receive unused material returned by contractors and prepare ‘goods returned vouchers’
thereof.

9. Prepare reconciliation statements to enable Owner to check and take over the balance
stores.

10. Separate material/equipment utilization statements (with value) for jointly identified list
of capital asset items to be submitted at the end of the project to facilitate Owner do
proper capitalization of assets.

11. Imported materials: EPMC shall also arrange for Clearing & Forwarding of imported
materials including Handling of materials at Port/Airport of entry. The necessary
expenditure towards the above shall be borne by the owner. EPMC to develop a detailed
procedure for all such item(s) and obtain owner approval.

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SCOPE OF WORK

E. SCOPE OF PROJECT MANAGEMENT SERVICES:

Article 1. Scope of Project Management Services - Overview.

Article 2. Preparation of Work contracts.

Article 3. Quality Management.

Article 4. Project Implementation Procedure.

Article 5. Cost Control.

Article 6. Project Planning and Control.

Article 7. Progress Measurement.

Article 8. Management Control and Reporting Structure.

Article 9. Inspection.

Article 10. Engineering.

Article 11. Construction.

Article 12. Health, Safety and the Environment.

Article 13. Commissioning, Startup and Performance tests.

Article 14. Acceptance.

Article 15. Initial Operation and Training.

Article 16. Documentation.

Article 17. Assistance in Arbitration.

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ARTICLE 1

SCOPE OF PROJECT MANAGEMENT SERVICES - OVERVIEW

In addition to providing the engineering, procurement services for the Materials and
Equipment described in the EPMC Services in Procurement and Materials Management
of Materials and Equipment, Consultant shall establish a team for the Engineering and
Project Management Services containing all the necessary skills and disciplines needed
for professional management of the Project on behalf of Owner. Members of the team
shall be located in such places as are most appropriate for the efficient management of
the Project. The Central Project Management office shall be located in India by
Consultant.

In addition to the location In India chosen by Consultant as the center of its activities, it is
envisaged that staff will need to be deployed in each of the Pumping, Tap Off & receipt
stations. For the pipeline laying, CP, Telecom job and other stations works suitable
offices with construction management team to be deployed for the duration of
construction and commissioning. These offices shall be suitably located in various Sites
along the route of the pipelines for efficient management of construction activities. For
Terminal activities staff shall be deployed at Terminal wherever activities are envisaged
as a part of this project.

Fabrication yards and suppliers premises: Visiting staff as appropriate.

In general, Consultant shall act on behalf, and report to, and be responsible for, managing
the overall Project in detail and directing various contractors and others on behalf of
Owner, for taking or recommending all appropriate action to complete the Project on time
and within budget. The following indicate the minimum activities the Project
Management Services are likely to comprise which include, without limitation:

a. Preparation of Anticipated Final Cost (AFC) of Project value within six months of
Notification.

b. Preparation and issue of tender documents, tender evaluation and recommendation of


award and administration of such other contracts as are needed for the Project;

c. Preparation of item wise cost estimate for each ITB.

d. Administration, on behalf of Owner, of all contracts placed for execution of the Project;

e. Timely release of “Approved For Construction Drawings” to enable contractors to


maintain agreed schedule of work;

f. Coordination of the activities of various contractors engaged by Owner for the


engineering, procurement and construction of the Project to assure effective project
execution particularly at points of interface between respective contractor’s activities;

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g. On behalf of Owner and in response to communications from other contractors involved
in the Project, interpretation of technical requirements set forth in the various contracts
and issuance of such interpretation for the guidance of the other contractors;

h. Monitoring, appraising and reporting to Owner on the cost estimation and cost control
performance and scheduling, and schedule control performance of all contractors;

i. Development and maintenance of an appropriate system for control of documents relating


to the Project including drawings, specifications, letters, memoranda and other
administrative records but particularly those certificates, operating and other manuals and
other documentation to be retained for maintenance, operational or statutory reasons by
Owner on completion of the Project ;

j. Monitoring, appraising and reporting to Owner on the quality and safety aspects of
engineering design and construction by all contractors involved in the Project;

k. On behalf of Owner administering changes in the scope of other contractors and


reporting on the same to Owner ;

l. Monitoring, appraising and reporting to Owner on procurement activities by all


contractors, including transportation, import into India and inventory control;

m. Receiving and reviewing invoices and administering/certifying payment to other


contractors involved in the Project;

Owner has established a number of objectives and priorities to guide Consultant and
other contractors in implementation of the Project. These are set out in various provisions
of this Section, and cover:

 Safety in construction and operations;


 Governing laws and regulations;
 Completion schedule;
 Use of Owner’s resources;
 Enhancement of national skills;
 Public relations.

Consultant shall ensure that its own activities and those of all contractors, subcontractors
and suppliers employed on the Project comply in full with these objectives and priorities.

ARTICLE 2

PREPARATION OF ITB FOR WORK CONTRACTS

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The Basic Design and Detailed Engineering work done by Consultant should lead to
developing a Design package comprehensive enough for inviting contract bids for
various works for Awa-Salawas Pipeline project. Midway through the Detailed
Engineering work, Consultant shall prepare draft Invitation To Bid (ITB) for respective
work contracts/ Services and submit the same for Owner’s approval. The basic inquiry
principles like type of contract, bidding limit dates, conditions of payments and various
other controlling parameters will have previously been proposed to Owner and approval
obtained prior to issuance of final ITBs / or Limited Tenders.

ITBs/ or Limited Tenders are intended to be prepared for, but not limited to, the
following works.

PIPELINE

- Corrosion Protection Coating/ transportation of Line Pipes.

- Material Handling Contract at site.

- Clearing and forwarding of imported equipment including handling at


Port/Airport of entry and transportation from Port/Airport to site

- Pipeline Construction including OFC laying, Cathodic Protection during


construction & permanent Cathodic Protection System works, SV
Stations.

- Civil / Mechanical / Structural works pertaining to both stations.

- Composite Works comprising of Electrical, Piping & Mechanical &


Instrumentation works at existing Awa pumping station and existing
Salawas depot for pipeline facilities.

- Civil & Structural Works incl. Roads, Site grading, OWS and Drainage
works

- Communication system and CCTV.

- HT / LT power line laying works from Supplying Substation to receiving


transformer for all stations.

- Water supply lines/ bore well lines.

- Miscellaneous services for any surveys etc.

- Material Handling

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- Package Works viz. Turnkey Instrumentation, HV/MV Package, SCADA,
Telecom, Corrosion Monitoring

SALAWAS DEPOT
- Tankage Construction works

- Material Handling Contract at site.


-
- Clearing and forwarding of imported equipment including handling at
Port/Airport of entry and transportation from Port/Airport to site
- Composite Works comprising of Internal Piping, Electrical &
Instrumentation & Communication works at Terminal

- Terminal Automation works

- Compound wall, gates and watch towers

- Roads, RCC Driveway, culverts and Drainage works

- Site Grading works

- Effluent Treatment Plant

- Civil & Structural Works

- HT / LT power line laying works from Supplying Substation to receiving


transformer at Salawas. MV Package works.

- Vapour Recovery System and Vapour recovery arms/ Vapour Balancing


system

- Bore wells, water supply lines and make-up water for fire fighting.

- CCTV, Wireless communication, etc

- Miscellaneous services for any surveys etc.

- Modifications/revamping required in existing tankage, piping and


firefighting system based on inspection carried out

The estimates of above bids shall be based on detailed rate analysis / recently placed
purchase orders. Consultant to submit detailed item-wise rate analysis to HPCL

1. Pre-Qualification of Contractors:

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Consultant shall prepare document for pre-qualification of bidders and obtain approval of
Owner for the same. The pre-qualification criteria shall be published in Newspapers for
estimated contract values exceeding INR 300 lakhs for inviting bids from prospective
bidders meeting the pre-qualification criteria. The pre-qualification document shall be so
developed by the Consultant that it will facilitate rapid and sound evaluation in order to
allow Consultant to select the required number of bidders. Consultant shall obtain
Owner’s approval for sending tender inquiry to the pre-qualified bidders.

Alternately, ITBs shall be given to the respondents of NIT to enable them submit
Prequalification Documents and bids together in one step. Consultant shall evaluate
Prequalification Documents and obtain Owner’s approval for opening / evaluating
Techno-Commercial bids of prequalified bidders.

For estimated contract value less than INR 300 Lakhs, Limited tender inquiry shall be
floated by Consultant to contractors drawn from Consultant’s vendor list and approved by
Owner.

2. Preparation of ITBs:

Based on the Detailed Engineering, Consultant shall propose draft ITBs for work
contracts/ Services and upon approval of the same by Owner, release the same to
prequalified bidders. The ITB shall contain detailed technical specifications and terms &
conditions to facilitate submission of unambiguous bids. Consultant shall structure the
ITBs to include but not limited to the following:

- Instructions to Bidders.
- Scope of work
- Conditions of contract.
- Engineering/ Technical specifications and drawings (which will include but not be
limited to) depending upon their applicability for respective ITBs.

 Project design data (Hydrographic, Geotechnical and Meteorological), soil


bearing, battery limit conditions, etc.
 General engineering standards, specifications, codes and local customs
regulations and/or agency requirements.
 Process flow diagrams (PFDs) where ever applicable.
 Process description.
 Preliminary plot plans and layout.
 Process and instrumentation diagrams (P&IDs).
 Equipment lists.
 Technical data sheets of equipment and machinery.
 List of materials / equipments included in contractor’s scope.
 Specification of supply items included in contractor’s scope.
 Instrument lists.
 Pipeline route.
 Detailed specifications of works.

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 Electrical one-line diagrams.
 Safety instruction and basic design data for fire-fighting.
 Job procedure instructions.
 Environmental considerations.
 Specifications of Pipeline construction.
 Preliminary Drawings to enable the bidder to quote.

- Bill of quantities (BOQ).


- Schedule of Rates (SOR).
- Construction specification.
- Testing and inspection requirements.
- Commissioning procedure.
- Acceptance procedure.

The ITB will also stipulate that the contractors shall provide the following with their
proposal for evaluation:

- List of participating local contractor(s) and supplier (s).


- Detailed execution plan.
- Manpower plan and manpower requirements.
- Quality Assurance and Control Procedure.
- Confirmation of codes, standards, regulations and local customs and/or agency
requirements.
- Commissioning plan.

The ITB will specify a comprehensive training program for the Owner’s personnel
pertaining to Telecom, SCADA and APPS, Turnkey Instrumentation, Automations etc. to
be able to operate and maintain the Project facilities. This training program will be
provided by the contractors and will be organized under the guidance of the Consultant.
A description of the procedure to be complied with for the appraisal of bids and bid
tabulation shall also be provided.

The selection criteria proposed by the Consultant shall:

- ensure that the bids are in compliance with the requirements set out in the ITB.

- prepare the quantifiable economic elements to be considered to compare the bids


on the same bases, for instance; rate for modifications, cost of delays in the
schedule, costs involved by conditions of payment, rate, rate of exchange for price
comparisons, etc.

The selection criteria thus developed shall be approved by Owner.

3. Evaluation of Bids:

The evaluation of bids against each ITB shall be done in five stages as described below:

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First Stage:

After un-priced bids are opened, the Consultant shall check that the required documents
have actually been supplied and duly signed, that the period of validity is correct and that
the bids as a whole are correct. If necessary, the bidders shall have to supply, as soon as
possible, any clarifications and/ or additional information requested.

Second Stage: Techno-commercial evaluation of un-priced bids.

The detailed review shall concern:

- Scope of services and supply.


- Compliance with the technical requirements set out in the project specification.
- Compliance with individual layout drawings proposed with the general layout
plan.
- Compliance with general specifications, codes and standards proposed in the
ITB.
- Compliance with commercial and general terms and conditions.
- Concurrent commitments.
- Compliance with Acceptance Procedure.

Third stage:

The Consultant shall submit detailed evaluation sheet of un-priced bids to owner clearly
specifying the technical and commercial acceptability/non-acceptability of offers. Upon
approval by Owner, the price bids of technically and commercially acceptable parties
shall be opened by Consultant.

Fourth stage:

Detailed review of price bids.

- Basic price including break-up in INR and respective Foreign Currency, quoted
against BOQ in the SOR.
- Unit rates.
- Delivered Cost.

Fifth stage:

After completion of price evaluation, a purchase recommendation shall be submitted to


Owner. Upon decision by Owner on bidder with whom negotiations are to be done, the
Consultant shall assist Owner in this process.

4. Draft Agreement / Draft Purchase Order

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Upon approval of purchase recommendations by Owner, the Consultant shall submit
Draft Agreement / Draft Purchase Order to Owner.

ARTICLE 3

QUALITY MANAGEMENT

Consultant has overall responsibility to Owner for quality management throughout the
Project. Consultant shall prepare an integrated overall Quality Assurance Program (QAP)
which satisfies recognized international standards approved by Owner e.g. ISO, BS,
ASME, OISD, ASTM, API etc.

Consultant shall have an established quality management organization which shall be


responsible for monitoring and auditing compliance with the QAP throughout the whole
Project. The organization shall comprise sufficient numbers of suitably trained and
qualified staff to ensure that all requirements of the QAP are satisfactorily implemented
by the Contractors.

The QAP shall cover, but shall not be limited to:

a. Verification and approval of methods used and documentation produced during


engineering and construction work;
b. Inspection, handling and identification of equipment and materials, and proper
documentation ;
c. Planning , agreement of methods, and techniques, supervision, inspection, acceptance and
proper verification and acceptance of documentation during construction work;
d. Field inspection and testing procedures;
e. Consultant to assist HPCL in filling insurance claim, if any. Consultant shall provide
services for ascertaining repair cost and consultant to carry out inspection for repair of
material or replacement.
f. Operating, maintenance and training manuals.

Consultant shall prepare for Owner’s approval and execute a program of quality audits
for its own, and contractors’ activities. Such program shall be submitted as part of the
QAP for Owner’s approval. Owner shall have the option to provide representatives to
participate in any quality audits carried out on the Project.

Owner reserves the right, with due notice, to carry out audits of Consultant’s activities for
compliance with QAP.

ARTICLE 4

PROJECT IMPLEMENTATION PROCEDURE

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The Project Implementation Procedure shall include, but shall not be limited to the
following:

a. Consultant’s organization at different phases including organograms and relationships


with Owner and all other contractors involved in the Project.

b. The overall management information system and interface philosophy to be used in the
Project.

c. Consultant’s co-ordination procedure including numbering of correspondence, contact


persons, correspondence format and system, administration of instructions and reports,
design review and technical data, project cost control and reporting, planning and
progress reporting, estimating, invoicing and accounting, document control, safety review
procedures, punch listing, field inspecting and testing acceptances.

d. List of reports to be submitted by Consultant to Owner. Formats of these reports and


timetable for issues.

e. Co-ordination procedures for contracts including procedures between contractors, Owner


and Consultant.

f. Procedures for:

- Safety and technical audits.


- Quality management at various stages.
- Construction supervision and inspection.
- Schedule control.
- Cost control.
- Document control and handover to Owner.
- Others.

g. Plans for monitoring contractors’ activities at each stage.

h. Summary Project schedule.

i. Forms to be used in the Project

j. A document detailing the information systems strategy for the complete facilities shall be
developed in conjunction with Owner & contractors and shall detail the following:

- the information systems used within the contractors with which electronic data is to be
exchanged both during the Contract and on hand over of the facilities in each contract;

- the information systems that Owner and Consultant intend to use both during the Project
with a timetable for their proposed use;

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- a program for downloading of electronic information from the contractors to both
Owner’s information systems and those of the Consultant;

- detailed specifications of the data to be exchanged and the media format to facilitate the
exchange;

- the individuals responsible for the execution of the data exchange within the contractors,
Consultant and Owner;

Consultant shall critically review and obtain approval from Owner for the above Project
Implementation Procedure within two months of contract award. Within the first week of
the contract, Contractor shall issue interim procedures sufficient to cover the first three
month of activities by all parties.

ARTICLE 5

COST CONTROL

Consultant shall provide a comprehensive control service using a Work Breakdown


Structure (WBS) which is compatible with job control and planning requirements, and a
Cost Breakdown Structure (CBS) which is compatible with Owner’s accounting code
structure. All coding structures are to be subject to approval by Owner. Consultant shall
ensure that all WBS used by other contractors are similarly compatible. Consultant shall
consolidate all cost control and estimating information from contractors and suppliers for
presentation and reporting to Owner.

1. Coding Structures:

Consultant shall ensure that:

(a) The WBS is designed on a hierarchical basis to permit roll up of data from the job
control or work pack level to summary level for reporting purposes. At the work
pack level jobs will be controlled using Cost Time Resource (CTR) schedule;

(b) The CBS is designed on a hierarchical basis to permit roll up of data to an


approved summary level for reporting.

Summary and intermediate reporting levels for WBS and CBS are to be common to all
other contracts.

2. Reporting:

The following reports are to be generated by Consultant for Owner on the basis of its own
observations and reports received from other contractors and suppliers of long lead items:

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Cost Reports: Consultant is to provide monthly, a comprehensive cost report set out in
accordance with WBS/CBS. The cost report is to be summarized to an intermediate level
into logical Project areas for other contracts and supply items and then summarized
further into a top level management reporting summary. These reports shall show the
following information as a minimum requirement:

(a) Initial control estimate;


(b) Current control estimate;
(c) Expenditure to date (Value of work done);
(d) Estimate to complete;
(e) Anticipated final cost(“AFC”);
(f) Over/under of AFC against current control estimate;
(g) Expenditure this period;
(h) Commitment to date (Total value of POs/contracts placed);
(i) Commitment this period;
(J) Value of invoices paid.

Contract and Commitment Reports: Consultant shall prepare and submit to Owner at
monthly intervals a listing of all major contracts stating AFC, commitment, claims
outstanding and progress status.

Consultant shall submit, with the monthly cost report, total project commitment curves
plotting actual commitment against planned commitment.

Change Order Reports: Consultant shall prepare and submit to Owner at monthly
intervals, a listing of all Change Orders placed on other contractors setting out the
status and value of each Change Order.

Anticipated Final Cost: Consultant shall regularly review the AFC of the Project. The
implications of these reviews shall be discussed with Owner prior to the monthly input
into Consultant’s reporting system. Explanation of variances shall be provided on a
monthly basis.

3. Expenditure:

Consultant shall maintain within its record of expenditure, all in accordance with the
WBS/CBS, the following information:

(a) Expenditure (the value of work done and materials received to date);
(b) Phasing of expenditure forecasts;
(c) Value of invoices paid;
(d) Details of retentions;
(e) Explanation of variance between planned and actual expenditure.

Consultant shall submit with the monthly cost report total project expenditure curves
showing actual expenditure plotted against planned expenditure.

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4. Cash Flow and Payment Schedule:

To assist Owner in meeting monthly commitments, Consultant shall prepare and update a
monthly payment schedule. Consultant shall certify and recommend to Owner the
progress payment for the other contractors, and suppliers.

5. Asset Register:

Consultant shall compile and update monthly an asset register including cost of each
asset for the complete Project for handing over to Owner on completion of the Project.
Consultant shall submit quarterly reports indicating assets completed during the period
and on cumulative basis and cost thereof.

6. Diary of Events:

Consultant shall maintain a Chronological Diary of Events recording all major milestone
achievements. This shall be appended to monthly reports.

7. AFC Estimate:

Any changes or developments in strategy over the life of the Project will be reflected in
updates to the AFC estimate.

ARTICLE 6

PROJECT PLANNING AND CONTROL

The Consultant’s responsibilities in terms of project planning and control are twofold.
First, the Consultant shall ensure that the other contractors develop and maintain a
comprehensive planning, progress monitoring and control service as required by contract.
Second, the Consultant shall operate a similar service, at summary level, that interacts
directly with systems used by the contractors and provides the vehicle for informing
Owner of all aspects of Project scheduling, progress and control. The service shall
incorporate modern systems and techniques for the acquisition, analysis and presentation
of data. The Consultant shall ensure that the service is compatible with similar service on
the Project and that the programs and progress charts align with the approved WBS for
the Project in such a manner as to facilitate the establishment of a clear, hierarchical path
from detail to summary level.

The principal objective of the planning service is to provide an effective work planning
and control system. This shall be achieved by the preparation of programs that display a
co-ordinated work approach and which are adequately resourced and scheduled within
specified milestones and key dates. Physical progress against work packages shall be
measured and reported, highlighting trends and actions required to maintain or improve

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progress. Future activities shall be reviewed in advance of execution to ensure sufficient
data and resources are available to maintain the project schedule.

1. Project Master Schedule:

Consultant shall submit to Owner for approval prior to award of the contract, a Project
Master Schedule that shall clearly identify all project milestones and targets and reflect
the Consultant’s Tender Schedule. Subsequent to approval by Owner the schedule shall
be used as the management control schedule for the Project and shall be updated and
issued monthly. The schedule shall be developed as a summary critical path network and
be presented as a logic-linked bar chart. It shall show work package man-hours,
interrelationships, major dependencies, critical activities and key events, consistent with
the WBS at project summary level.

The master schedule shall define in appropriate detail the sequence and timing of work
packages and activities by which the services shall be performed and by which progress
shall be monitored. Where necessary it shall identify all key interactions, reviews and
approvals between suppliers and the other contractors, outside agencies, and third parties
to ensure uninterrupted progress to timely Project completion. In line with the project
WBS, the master schedule shall be updated using details generated at lower level in terms
of physical progress achieved, remaining duration and forecast completion.

An essential part of the schedule submission shall be a Cost/Time/Resource (CTR)


activity catalog, prepared to an agreed format, showing scheduled start and finish dates,
resource requirements, dependencies and deliverables as a minimum.

2. Other Contractors’ Programs:

Within six weeks of other contract awards, the Consultant shall review and approve the
control programs produced by the contractors, and all requisite support documentation
including manpower profiles, progress curves, deliverable registers and procurement
schedules. Before final approval, the Consultant shall advise Owner regularly of the
progress made in producing these documents to the required standard.
For the purpose of reporting, Consultant shall prepare and maintain a set of tabulations
that adequately summarize the detailed registers produced by the other contractors. These
shall include information or design deliverables, procurement of materials/equipment,
construction procedures and design holds.

3. Interface Schedule:

Within eight weeks of Contract award, Consultant shall issue, for approval by Owner, a
schedule which details information required by the Project as a whole, from Owner
between contracts, from outside agencies or third parties. Schedule implications of the
interfaces shall be clearly demonstrated.

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4. Trend Reports:
Consultant shall highlight and give early warning of trends to result in deviations from
Project activities/schedules/cost, identifying the reason, and reporting the appropriate
remedial actions taken to Owner.

5. Exception Reports:

Consultant shall provide a report itemized in conjunction with the master schedule
declaring any activities behind program at each update and defining contract discipline,
delay to the Project and reason for the delay.

ARTICLE 7

PROGRESS MEASUREMENT

Achieved progress shall be based on a detailed physical assessment of work done, in


percentage terms, and summated to contract and project summary level, using assigned
weightages, Consultant shall be responsible for making sure that the physical progress
measured is a fair reflection of work status and that summations are accurately calculated.

1. Progress “S” Curves:

For reporting purposes, Consultant shall maintain a composite set of progress S curves
and tabulations that show, by major element, planned, achieved and forecast figures.

2. Manpower Histograms and Man-hour Tabulations:

For reporting purposes, Consultant shall maintain a composite set of manpower


histograms and man-hour tabulations that show, by major element, planned and actual
figures.

3. Updating:

At monthly intervals during the life of the Project, Consultant shall update all summary
progress documents using, where necessary, detailed figures produced by the other
contractors. Consultant shall update the project master schedule monthly using a
superimposed time now line that indicates slippage to each element of the Project and to
the Project as a whole.

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ARTICLE 8

MANAGEMENT CONTROL AND REPORTING STRUCTURE

This Article describes Consultant’s responsibilities with respect to management control,


co-ordination and reporting of the Project Scope of Work. Proven computer systems shall
be used to assist with these functions, and agreed coding structures shall be used to
integrate service functions and ensure compatibility of contract and Project systems.

1. WBS:

The WBS is a Project model providing a framework for management of the scope. The
model shall be used to define the Project in a manner that facilitates the integration of all
functions and progress assessment at detail and summary levels. Deliverables and
services to be provided under the various contracts and by third parties shall be assigned
to work packages and, at a more detailed level, Cost/Time/Resource (“CTR”) activities.
Proposed work packages and CTRs shall form the essential structure of the Project and
control programs and their breakdown will depend on the other contractors work
organization and methods.

2. Coding Structure:

The Project coding structure shall be developed by the Consultant within two weeks of
award and include work package, CTR, discipline, area and system.

3. CTR Activities:

CTRs shall be used to plan and control the execution of services under the various
contracts and, where necessary, in other areas of the Project. It shall be the Consultant’s
responsibility to ensure that the other contractors submit CTR catalogs as required by
contract, and that the following information is included on each CTR sheet as a
minimum:

(a) Code and description;


(b) Reference to inputs required to perform the activity;
(c) Output deliverables generated as a product of the CTR;
(d) Reference to other CTRs which are dependent on the completion of the current
activity;
(e) Estimate of man-hours and cost by discipline for the CTR at both detail and
summary level;
(f) Work package and program reference;
(g) Scheduled start and finish dates.

4. Reports:

The following lists the reports to be provided as part of the Consultant’s services:

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Weekly Report: At the end of each week during the Project, Consultant shall report to
Owner by facsimile transfer or telex. The essential information in the report shall be:

(a) Main events, problem areas and remedial actions during the week;
(b) Information and decisions urgently required by other contractors.

Monthly Report: Consultant shall prepare a comprehensive monthly progress report with
a cutoff on the last Friday of each month. The report shall be delivered to Owner within
six working days following the cut-off. The format and content of the report shall be
agreed with Owner and, as a minimum, contain the following information:

(a) A summary statement on the Project, highlighting Problem areas and remedial
actions (with their impact on schedule/cost analyzed through computer schedule
network vis-a-vis alternatives available); achievements made during the month
shall be itemized and compared against the plan;

Summary planned/achieved/forecast figures for design, procurement and


construction along with detailed statements required under (b), (c) & (d) given
below:

(b) A statement on design, covering progress, highlighting targets achieved,


deviations from schedule and actions proposed. Significant additional work or
rework resulting in change orders shall also be noted and an indication given of
any schedule delays;

(c) A Statement on procurement referring to material /equipment control schedules


and indicating activities that have slipped or become critical;

(d) A statement on construction, citing achievements in the period, with an


explanation of deviations from the program, problems encountered and remedial
actions. This shall cover status of the work relative to the program, including
variations and subcontracts;
(e) Cost report;

(f) QA report;

(g) A statement on services covering:

- Planning and scheduling;


- Change control;
- Contracts;
- Finance;
- Computing;
- Administration;
- Organization;

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- Stock control;
- Safety performance and accident statistics.

(h) Graphical and tabular section containing:

- Updated project master schedule;


- Progress S curves for design and construction showing planned and
achieved figures for the various contracts;
- Manpower histograms for design procurement and construction showing
planned and actual figures for various contracts;
- Summary tabulations showing the status of deliverables/drawings,
procurement of materials, equipment and procedures;
- Interface matrix showing data urgently required by other contractors.

5. Project Systems:

Consultant shall monitor the other contractors’ project information systems throughout all
phases of the other contracts to ensure compliance with the overall Project systems
strategy detailed in other areas of this ITB and shall monitor the delivery and integrityof
electronic data between the other contractors, Consultant and Owner.

6. Numbering Systems:

Within one month of contract award, Consultant shall develop and issue all definitive
numbering and identification systems which shall be reviewed and approved by Owner.
Compliance of the other contractors with all mandatory numbering and identification
systems shall be monitored and controlled by the Consultant. Any cases of non-
compliance shall be resolved by the Consultant.

ARTICLE 9

INSPECTION

Consultant shall familiarize itself with any statutory, insurance or code requirements for
certification. Where inspection is required, it will be carried out by Consultant/Consultant
approved organizations who meet the approval of Owner and statutory bodies.
Certification of certain selected items of equipment and materials is likely to be required.

Consultant shall audit other contractors to ensure the effectiveness of procedures for
assuring that all manufacturers, fabricators, suppliers and construction subcontractors
comply with the inspection requirements for the production of materials and equipment
and for construction.

Before mechanical completion is agreed, Consultant shall ensure that other contractors
carry out inspection of the facilities in their respective contracts to check that erected

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facilities are complete, and conform to approved flow diagrams, construction drawings,
manufacturer’s prints, and specifications.

ARTICLE 10

ENGINEERING

1. Engineering standards:

In addition to the design standards for Basic Design and Detailed Engineering work set
forth elsewhere in this ITB, the engineering standards to be used during the various
contracts will be issued prior to award of these contracts. Consultant shall keep these
standards in constant review as the Project Progresses. Any amendments found necessary
to the standards shall be justified to and discussed with Owner before implementation,
and Consultant shall maintain and update the standards and ensure all work is carried out
to updated standards. Any non-conformances to standards shall be fully documented and
a register thereof maintained. The final updating of the standards shall be made prior to
commissioning for handover to, reference and ongoing use by the operational site.

2. Detailed Engineering:

Consultant shall ensure that all specification, drawings and requisitions are produced in a
timely manner in accordance with contract.

Consultant shall review and approve, on behalf of Owner the drawings/designs submitted
by contractors pertaining to the design facilities included in the contractors’ scope.
Consultant shall endeavor to approve designs/drawings submitted by various contractors
in the shortest possible time but not later than 30 days. Any delay beyond 30 days shall
be brought to the notice of Owner, along with reasons.

Consultant shall ensure compliance with all statutory rules and regulations, in particular
national regulations concerning environmental protection.

Consultant shall critically review and evaluate any request by contractors for changes to
the scope of contract, keep Owner fully apprised of reasons, acceptability or otherwise,
and recommend a course of action for each event.

Consultant shall submit brief weekly engineering reports to Owner describing the work of
the current week and problems encountered with solutions arrived at or planned and any
anticipated problems with proposed solutions. The report will also include:

- List of documents received for review;


- List of documents approved or found unacceptable.

Consultant shall submit its own monthly detailed and confidential report to Owner which
shall include:

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- Staffing by contractors with comments on the adequacy in number and
qualification;

- Report on contractors’ general activities and engineering status;

- Actual performance expressed as percentages complete by area as well as overall


compared with those planned by the contractors.

ARTICLE 11

CONSTRUCTION

Consultant shall manage and supervise other contractors’ activities at site and coordinate
with contractors, such that the construction of the Project is carried out by the contractors
according to the procedures and quality assurance program agreed between Owner,
Consultant and the contractors.

Consultant shall be deemed to have full knowledge of the applicable codes and standards,
laws and regulations, safety rules and regulations, conditions of labour, local conditions
and environmental aspects in Rajasthan and India, and shall comply with the
requirements thereof where applicable.

Consultant shall assign construction specialists at site to ensure that the Project is built
according to the time schedule and to approved codes and standards, specifications and
drawings. These activities shall include, but not be limited to, the following:

I. review and recommend to Owner on the adequacy of contractors’ supervisory personnel,


and craftsmen in terms of qualifications and numbers;

II. Coordinate the activities of contractors and these respective subcontractors to ensure that
their work plans are such that the subcontractors avoid interference with one another;

III. Consultant shall review the approved construction plan on monthly basis. If any time lag
is observed in the progress, consultant to analyze & advice party for additional steps to be
taken to boost the job progress and make recommendations to owner on any action to be
taken to maintain schedule.

IV. Review and recommend regularly on contractors’ allocation of manpower and


construction equipment;

V. review and approve, on Owner’s behalf, contractors’ work methods, with special
emphasis on safety and quality ;

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VI. review and approve the procedures proposed by contractors for the inspection by
Consultant of each item of construction work and the witnessing by Consultant of each
construction activity in so far as inspection and witnessing are required;

VII. Supervise, inspect and certify that quality of the contractors’ work to ensure that all work
is adequate for the purpose intended, is in accordance with good engineering and
construction standards and practices, drawings and specification, and is in accordance
with the quality assurance program and conforms with the contract provisions;

VIII. Ensure that adequate records are maintained, so that expediting for rectification is made
easy and systematic;

IX. Review and certify the contractors’ claims. Certify and recommend to Owner on the
progressive payments of the work according to the work completed;

X. On behalf of Owner supervise and agree with contractors on a phased completion


program, to facilitate a logical, mechanical completion program.

XI. Closing the all open purchase orders / work orders / contract to close project sites.

XII. Review contractors’ detailed proposals for the startup and the conduct of the performance
tests, and advise Owner and the contractor accordingly to ensure that all the activities will
be carried out in a safe and efficient manner.

XIII. supervise close-out of contractors’ work and certify and make recommendations to
Owner on the acceptance of construction completion certificates, mechanical completion
certificates, provisional acceptance certificates and final acceptance certificates for the
Project, by plant system unit and block as relevant;

XIV. report immediately about any use of materials not in accordance with the drawings,
specification and contract, and supervise its removal from job site;

XV. supervise all works required for modifications requested or approval by Owner in
accordance with the Project procedures;

XVI. Carry out HAZOP studies and ensure that actions have been taken based on as-built
documentation;

XVII. Review and recommend safety and labour relations procedures prepared by other
contractors in line with all applicable codes, regulations and Owner requirements.
Monitor safety and labour relations and take action on behalf of Owner on all problems,
violations and inquiries;

XVIII. Inspect and record site activities and oversee that documentation is kept up-to-date and in
first rate condition in preparation for completion of the Project. Consultant shall ensure
that all as- built drawings for the Project are recorded correctly and compiled and

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submitted by the contractors as stated in the contract. Consultant shall submit the same to
Owner after approval

XIX. Maintain CTE Registers

ARTICLE 12

COMMISSIONING, STARTUP AND PERFORMANCE TESTS

1. Mechanical Completion

At a date prior to mechanical completion to be agreed with Owner, Consultant shall


recommend to Owner for approval of the operating manual prepared by Consultant.

Consultant shall review and recommend for approval the program, and supervise the
mechanical completion work performed by contractors. Upon successful completion of
mechanical completion work, Consultant shall review and recommend approval of
construction completion certificate documentation.

Consultant shall approve as required all procedures, plans, schedules and necessary
certification for construction completion by the other contractors. The construction
completion of individual sections of the Project shall be programmed in accordance with
the overall commissioning plan.

Consultant shall ensure that all necessary personnel from equipment suppliers are called
to attend the pre-commissioning activities as provided for in the equipment purchase
orders.

Consultant shall prepare for approval by Owner and implement all necessary procedures
to ensure safety of personnel working on construction activities at the same time as field
inspection, testing and commissioning is in progress.

Consultant shall supervise contractors’ work such that phased mechanical completion and
commissioning takes place as determined by Owner’s business needs.

2. Commissioning and Startup:

Commissioning and startup is to be carried out by Owner with assistance from other
contractors.

Upon Owner’s approval of the mechanical completion of the work, and when it is
deemed suitable by Owner, the commissioning work may commence according to the
plans and schedules prepared by Consultant.

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Consultant shall form and organize a start-up team to supervise and monitor the
commissioning, startup, performance test and initial operation of the facilities consisting
of representative of Owner operating personnel, equipment suppliers, Consultant and
contractors and shall ensure that the contractors provide sufficient numbers of skilled
labor that is needed to complement the Owner startup personnel and to perform activities
which include the running or operation of equipment, necessary adjustments and hot
alignment checks and the running of component parts as unified system. This shall also
include a demonstration of the operability of spare equipment.

Consultant shall ensure that the contractors provide sufficient manpower, special tools
and spare parts necessary for the commissioning activities.

Consultant shall ensure that the commissioning activities will, as a minimum include:

- Compliance of pre-commissioning audit by OISD / HPCL

- Operational tightness testing and Pneumatic testing.

- Pre-startup inspections by governmental bodies.

- No load test of rotating equipment

- Filling of lubricants.

- Equipment operation to make vibration, governor trip, and safety device checks,
and other required operating tests and adjustments.

- Hot alignment checks and running of component parts as a unified system.

- Adjustments and replacements of mechanical seals, packing and accessories, as


required.

- Flushing, blowing, chemical cleaning & air cleaning.

- Installation of temporary screens, strainers, and blinds.

- Necessary purge operations, including installation of temporary purge piping,


hoses or equipment connections.

- Checking of bores of orifice plates and installing these plates after flushing
operations.

- Functional check on all instruments and controllers, instrument calibrations with


standard test.

- Equipment and all required adjustments and control point settings.

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- Check all instrument loops for proper functioning.

- Checks on pipe hangers, supports, and guides for hot/cold settings and necessary
adjustments.

- Checking and recording positions of all valves.

- Conduct simulation runs to allow run-in operational testing of the equipment.

- Monitor Petroleum product interface in the first batch schedule for critical
evaluation of various operational procedures listed in the Pipeline operation
manual.

- Commissioning checks of tanks as per OISD

- Commissioning of Fire Engines & Fire Alarm System

- Conduct simulation runs to allow run-in operational testing of the OWS.

- DG Set Commissioning

Consultant shall ensure that all defects and deficiencies found during the course of
commissioning shall be rectified by the contractors.

Consultant shall supervise and monitor all commissioning and startup activities and all
performance test runs which will be carried out by the contractors. All performance test
results shall be reviewed and certified by Consultant and subsequently recommended for
Owner’s approval.

Consultant shall report to Owner on a weekly basis on the progress and status of
commissioning and startup work.

Consultant shall ensure that all commissioning records and log sheets are properly
collated and submitted to Owner as part of contractors’ mechanical completion certificate
approval documents and provisional acceptance documents as relevant.

3. a) Factory Acceptance Tests:

Consultant shall witness the Factory Acceptance Tests in the premises of contractor for
Telecom, SCADA & APPS, DCS/PLC system, Turnkey Instrumentation system, CP
system etc. which will be carried out by the respective contractors.

b) Site Acceptance Tests:

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Respective contractors shall carry out the Site Acceptance Tests of Telecom, SCADA &
APPS, DCS/PLC system, Instrumentation system, CP system, Terminal Automation
System etc. which shall be witnessed by Consultant at site.

ARTICLE 13

ACCEPTANCE

1. Construction Completion Certificate:

Consultant shall review submittals from contractors for construction completion as


defined in the respective contract and advise Owner on approval and issue of construction
completion certificate to the contractors. Consultant will be responsible for all punch
listing to allow recommendation of construction completion certificate.

2. Mechanical Completion Certificate:

Consultant shall review submittals from contractors for mechanical completion as defined
in the contract and advise Owner on approval and issue of certificates of mechanical
acceptance. Consultant shall review the certificates of mechanical completion issued and
advise Owner when the various parts of the Project are ready to start up and are in
accordance with contract and specification.

3. Provisional Acceptance:

Consultant shall prepare and recommend approval of certificates of provisional


acceptance when requested by the contractors and recommend their issuance when the
commissioning work, start up and test runs of the Project have been carried out
successfully, and the performance test results are to the satisfaction of Owner in
accordance with the contract and specification.

4. Final Acceptance:

Final acceptance for the facilities defined in contract shall be issued by Owner on request
from contractors at the expiry of the defects liability period of one year, in accordance
with respective contract.

5. Provisional Acceptance of Consultant’s Work:

Provisional acceptance of Consultant’s work occurs when the last contractor’s


provisional acceptance certificate is approved by Owner.

6. Final acceptance of Consultancy Work:

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Final acceptance of Consultant’s work occurs at the expiry of the defects liability period
of one year of the last contractor in accordance with the contract if there is no deficiency
in Consultant’s or contractors’ work.

ARTICLE 14

INITIAL OPERATION AND TRAINING

During the engineering and construction of the Project, Consultant shall prepare
programs and schedules and perform initial operation and training services which shall
include, but not be limited to the following:

a) Assist Owner’s personnel in familiarizing with vendor’s and contractor’s drawings and
specifications and in familiarizing with lines and equipment check lists.

b) Prepare programs for recruiting and training the necessary Owner supervisory and
operating/ maintenance personnel to start up, operate and maintain ASPL. Actual training
itself shall be conducted by others. In preparing the overall training plans, Consultant
shall identify suitable resources to assist Owner in training its staff.

ARTICLE 15

HEALTH, SAFETY AND THE ENVIRONMENT

It is Owner’s objective policy to ensure that potential health and safety factors and
environmental effects are assessed for all products, projects and activities and
acquisitions. For projects, this is implemented by staged audits of health, safety and
environmental aspects from concept stage to post commissioning in order to determine
any shortcomings or noncompliance.

The specific requirements include:

Project Safety Review: A formal project safety review is to be carried out by Owner and
integrated across the various contracts. The Owner’s review team will require data, input
from key personnel from the other contractors and access to all locations being used by
contractor, subcontractors and suppliers. Consultant shall make all necessary
arrangements for such reviews as required by Owner and shall ensure that contractors
make available such data, personnel and locations as are required. Consultant shall ensure
that all recommendations and findings from safety reviews are implemented by
contractors in a timely manner.

Environmental Impact Assessment (“EIA”): Consultant shall ensure that all


recommendations resulting from the EIA/RA studies, on approval by Owner, are
implemented by contractors. All technical conditions put forth by Pollution Control

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Board, MOE&F & Other Statutory bodies shall be incorporated in Design &
implementation.

HAZOP/ Quantitative Risk Assessment Reviews: Consultant shall provide a team,


subject to Owner’s approval, for carrying out HAZOP study and shall ensure that all
recommendations and findings are implemented by contractors in a timely manner.

Health, Site Safety and Security: Consultant shall be responsible, on behalf of Owner
for ensuring a high standard of occupational health and site safety management and for
ensuring the requirements for health, safety and security to be maintained by contractors,
subcontractors and other personnel working at the site. Consultant shall compile the
safety requirement on contractors.

The purpose of these safety requirements shall be to prevent any accidents, incidents or
events that could result in injury or fatality to personnel from contractor’s,
subcontractor’s, Consultant, Owner or third parties and/or damage or destruction to
contractor’s or Owner’s property, equipment and materials. The requirements shall be
intended to supplement any government authority of India, state, municipal, local or other
regulations applicable at the Site which Consultant shall be obliged to enforce on behalf
of Owner. Consultant shall agree with Owner representative at site any variations
between these requirements.

Consultant shall monitor, report and ensure that the above requirements are fully adhered
to.

1. Site Safety Organization:

Consultant is to appoint a safety officer with appropriate staff support whose


responsibility is to monitor all safety activities on the job site and report his findings to
Consultant. The safety officer shall make periodic safety inspections of the job site on a
schedule that will provide ongoing coverage. The inspections should be made jointly with
the superintendents of the contractors responsible for ongoing work in the areas to be
inspected. Any infractions or poor safety practices uncovered by these inspections shall
be promptly corrected. Safety requirements shall be enforced on the entire supervisory
organization of the contractor and subcontractors. Each location shall require
enforcement of approved safety rules and procedures by contractors and subcontractors.

2. Site Safety Planning:

Prior to award of construction subcontracts or start of Site work, Consultant shall plan job
safety requirements in conjunction with contractors giving due consideration to:

(a) Owner’s/Consultant’s safety requirements;


(b) Location of job site(s);

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(c) Type, background and quality of labor resources, and anticipated training
program;
(d) Nature of the construction work, types of hazards anticipated and hazard
prevention methods;
(e) Inspection, testing and commissioning activities overlapping with construction,
including training and implementation of permit to work systems;
(f) Construction equipment and materials to be used;
(g) Minimizing the number of subcontractors or crafts working in any one area at the
same time;
(h) Personal protective clothing and equipment requirements must be established, and
orders placed for timely delivery to job site of such equipment. Consultant will
ensure that contractors execute obligations in this area.

3. Site Safety Manual:

Prior to start of work at each job site, Consultant shall publish and distribute a safety
manual approved by Owner to cover safety activities. The manual shall be published in
both English, Hindi and in other languages if workers do not know these languages.

The design of the manual shall permit easy communication of its contents to all
personnel, recognizing language and literacy conditions at the job site.

All Owner’s, Consultant’s and contractors supervisory personnel are to be issued a copy
of the manual. Further distribution of the manual, or specific sections, shall be
determined dependent upon the needs of the adopted construction strategy and
organization.

The contents of the manual shall include, as a minimum the following:

(a) Owner’s & Consultant’s safety organization, philosophy and responsibilities;


(b) Owner’s & Consultant’s safety requirements;
(c) The general safety rules applicable to the job site;
(d) Near miss accident report;
(e) Once a month safety audit;
(f) The requirements, availability and provision of personal protective clothing and
equipment for specific activities that will occur at job site;
(g) Traffic regulations at the work Sites;
(h) Requirements and standards for use of scaffolding/ladders;
(i) Requirements for grounding electrical construction equipment and tools;
(j) Type, availability and responsibility for use of fire fighting equipment;
(k) Work Permit procedures;
(l) Procedures to be followed when an accident, injury or fire occurs;
(m) Simple procedures to be followed by entire contractor’s organization should a
major accident occur;
(n) Control of access to site;

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(o) Consultant will issue updated and revise booklets prior to commencing
commissioning activities as new hazards arise and new working procedures are
required.

4. Safety Activities:

Consultant shall ensure contractor, subcontractors carry out their activities in accordance
with the safety plan throughout the course of the construction of the project to inculcate
and maintain safety awareness among their employees.

Each employee, prior to beginning work, shall be given a safety orientation course.
Consultant shall be responsible for arranging and providing such and ensuring
consistency of knowledge and understanding across all and work groups. All personnel
must be fully knowledgeable of the potential hazards involved in the work they supervise
and the safe practices to be followed in their work.

5. Accident Investigation and Reporting:

Any accident or incident resulting in a lost time injury, death, or damage to property or
equipment is to be investigated by Consultant. Every incident shall be documented
promptly after the incident including the results of investigation and recommendations
for preventive action. Consultant shall also ensure that all necessary publicity is given,
within the site, to ensure further incidents do not occur. This investigation and report
shall not preclude any similar investigations and reports required by governmental
regulation, but may be handled concurrently with them.

Consultant shall maintain safety performance and accident statistics records for the
whole site in conformance to an agreed international standard or system to be approved
by Owner. Updated safety performance and accident statistics shall be included in
Consultant’s every monthly report.

6. Health Program:

The Consultant is to appoint an occupational health manager with appropriate staff


whose responsibility will be to monitor all occupational health activities on the work site
and his findings to the Consultant. This role could be coupled with that of the safety
manager.

The occupational health manager will be responsible for:

- Formation of health organization;


- Preparation and submission to Owner of a health program;
- Promotion of health education at the work site and analysis;
- Investigation and reporting of hazards and incidents on the Site.

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Additionally, the occupational health manager shall make periodic inspections of the
Site, with specific reference to:

- Sanitation;
- Layout of temporary and permanent installations;
- Provision of adequate medical personnel, facilities, equipment and supplies;
- Implementation of measures for dealing with injuries /illness .

ARTICLE 16

DOCUMENTATION

Consultant shall ensure all documentation and engineering data are delivered in a timely
manner. The quality and technical integrity of this information shall be monitored to
ensure compliance with the Quality Assurance Program. The delivery mechanism shall
be the responsibility of Consultant i.e. the electronic media use indexes, sizes and
number of copies of soft copy and hardcopy, etc.

Consultant shall also be responsible for modifying the documentation and data
requirements to reflect any existing and new statutory requirements from both
government and certifying authority sources.

Consultant to handovers the required number of soft/hard copies of following, but not
limited to, design basis, process package, tenders (MR&PR), drawing, layouts, operating
manual, single line diagram, P & IDs, hazop study etc. to HPCL.

Consultant shall be responsible for production of the operating manual(s). This will
include scheduling for the preparation of the materials making up the operating manuals.
It shall also include the review of drafts of the material in conjunction with Owner.
Regular progress meetings shall be held at the appropriate time to ensure completion,
commissioning and operation.

ARTICLE 17

ASSISTANCE IN ARBITRATION

Consultant shall ensure that the issues related to various contracts are settled amicably
with the contractors/suppliers. Consultant shall provide necessary assistance to the owner
and prepare suitable replies to address the claims / grievances / disputes of the
contractors / suppliers, as and when they arise.

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Despite the above, if any contractor/supplier imposes Arbitration proceedings on HPCL,
the consultant shall be responsible for providing necessary assistance to HPCL in
connection with these proceedings from the date of award of EPMC contract up to a
period of 3 years from the date of completion of the project. The rates quoted by the
consultant shall be all inclusive and such cost of providing assistance for the arbitration
proceedings to be borne by the consultant.

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SCOPE OF WORK

F. OWNER’S SCOPE OF WORK

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OWNER’S SCOPE OF WORK

Owner’s scope of work shall be limited to:

a) Application for Sanction / Release of Power and Water & Statutory Payments both for
operational and construction purposes.

b) Obtaining Basic Construction approvals, clearances and permits from statutory bodies for
Pipeline and Terminal.

c) Obtaining ROU corridor for Pipeline laying.

d) Acquiring permanent land for putting up SV Station, and additional land, if any for
existing Terminal.

e) Taking Insurance policies for Imported Project materials / equipment, lodging claims and
liaising for realization of claims. However, assessment of loss is in consultant’s scope.

f) Taking Insurance policies for Storage & Erection excluding Inland transit Insurance for
Indigenous materials.

g) “Participation” in Arbitration proceedings.

h) The costs towards press advertisements of NIT/Bid invitation which shall be borne by
Owner and paid directly at actuals to the agency on submission of the bills of the agency
by the Consultant to Owner and charges towards services for e-procurement. (excluding
charges towards training and Digital Certificate(s) for EPMC’s personnel)

i) Making payment to Vendors’ Contractors on the basis of bills certified by EPMC.

j) Arranging product for commissioning and Operations Manpower.

k) Arranging Commissioning approval from SPCB & CCOE.

l) Detailed Survey, ROU acquisition, EIA/RA Study and services to Competent Authority.

m) Arranging Entry/Exit and Work permit at working locations.

n) Handing over copy of Survey reports, EIA/RA report, statutory construction approval,
DFR, plot plan of existing locations, Purchase Manual and other documents available
with the owner.

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o) Arrangement of Security at Premises.

p) Office set up and vehicle for Owner’s personnel.

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CHAPTER-4
TERMS AND CONDITIONS

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INDEX

ARTICLE 1 DEFINITIONS

ARTICLE 2 CONSULTANT'S WORK AND RESPONSIBILITIES

ARTICLE 3 SCHEDULE OF WORK

ARTICLE 4 CONSULTANT'S ACCEPTANCE OF THE WORK

ARTICLE 5 STANDARDS OF PERFORMANCE

ARTICLE 6 OWNER'S RESPONSIBILITIES

ARTICLE 7 CONTRACT PRICE, TAXES

ARTICLE 8 PAYMENT

ARTICLE 9 CHANGES

ARTICLE 10 RIGHT TO INSPECT

ARTICLE 11 ACCEPTANCE PROCEDURE

ARTICLE 12 GENERAL WARRANTIES

ARTICLE 13 EFFECT OF APPROVALS, ACCEPTANCE AND PAYMENT

ARTICLE 14 TITLE

ARTICLE 15 PROPRIETARY INFORMATION; COMPUTER DATA; LICENSES


AND INVENTIONS
ARTICLE 16 FRUSTRATION

ARTICLE 17 FORCE MAJEURE AND EXTENSIONS OF TIME

ARTICLE 18 SUSPENSIONS

ARTICLE 19 TERMINATION

ARTICLE 20 PARENT COMPANY GUARANTEE

ARTICLE 21 MANAGEMENT, KEY PERSONNEL AND PROJECT MANAGER

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ARTICLE 22 SUBCONTRACTORS

ARTICLE 23 INSURANCE

ARTICLE 24 INDEMNIFICATION

ARTICLE 25 PATENT INDEMNIFICATION

ARTICLE 26 ACCOUNTING RECORDS AND AUDIT

ARTICLE 27 DISPUTES

ARTICLE 28 MISCELLANEOUS

ARTICLE 29 LIMITATIONS OF LIABILITY

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TERMS AND CONDITIONS OF CONTRACT
(Applicable for both Part A and Part B)

This Contract is made the _______ day of ____________ 2009.

Between

(1) Hindustan Petroleum Corporation Limited (hereinafter called "Owner"), and

(2) ____________________________ (hereinafter called "Consultant").

RECITALS

A. Owner is in the business of refining crude oil and manufacturing, distributing and selling
petroleum products and desires to engage Consultant to provide Engineering and Project
Management Consultancy services for their Awa-Salawas Pipeline Project.

B. Consultant is in the business of ............... and desires to provide such services for the
purpose of and in conformity with the provisions of this Contract on a fixed price, lump
sum basis.

Owner and Consultant agree:

ARTICLE 1:

1.1 DEFINITIONS

Except as otherwise expressly provided or unless the context otherwise requires, in this
Contract, the following terms shall have the meanings set forth below:

"Acceptance of the Work" or Provisional Acceptance “shall mean acceptance by


Owner of the Consultant’s Work in accordance with the provisions of Article 11 .

"Affiliate" means with respect to any Person, any other Person controlling, controlled by
or under common control with such Person. In this context "control" means ownership of
fifty per cent (50%) or more of the voting securities or equivalent interest of a Person.

"Approval" means approval in writing by an authorized signatory of Owner or


Consultant (as the case may be), and "approve" or "approved" shall be construed
accordingly.

"Approved Subcontractors" means subcontractors approved pursuant to Article 22.1


including, without limitation.

"Certificate of Acceptance" means the Certificate referred to in Article 11.1 to be issued


by the Owner in respect of the Work.

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"Consultant" means collectively, the Successful Bidder for relevant package on whom
PO has been placed, a corporation established under the laws of India, and its respective
successors-in-interest and permitted assigns.

"Consultant's Personnel" means all directors, officers, employees and other personnel
of Consultant.

"Contract" means this Contract and the Exhibits hereto.

"Contract Price" means the lump sum fixed price described in Article 7.1, payable by
Owner to Consultant in consideration of performing the Work, in accordance with the
terms, conditions and provisions of this Contract.

"Days" means calendar days unless otherwise specified.

"Design Information" means designs, drawings, technical data, reports, surveys or other
documents required as deliverable by owner to Consultant,

"Document Control Requirements" means the requirements for document control.

"Effective Date" means the date when the condition set out in Article 28.12 has been
fully satisfied.

"Event of Force Majeure" shall have the meaning set forth in Article 17.1.

Final acceptance of Work:

Final Acceptance of Work shall mean the Acceptance of Consultant’s work & completion
of Consultant’s defect liability period of one year or upon Consultant’s satisfactory
rectification of defects that were notified to Consultant during the one year defect liability
period, which ever is later.

"General Warranties" shall mean the general warranties described in Article 12.

"India" means the country of India.

“INR” means legal tender currency of India.

"Key Personnel" means individuals who are considered by Owner to be critical to the
completion of the Work in accordance with this Contract and notified by Owner to
Consultant pursuant to Article 21.2 as being key personnel.

"Lien" means any mortgage, hypothecation, pledge, security interest, attachment, lease,
claim or other encumbrance of any kind.

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"Main line" shall mean and include Petroleum product pipeline from Awa-Salwas
Pipeline including associated SV/IP, and receipt facilities.

"Major Milestone" means the milestone to be achieved by a specified date or within a


specified period as described in Article 8.1.1.1.

“Mechanical Completion” means all works as per scope including pre-commissioning


except Commissioning with product, Trial run, Site Acceptance Test & Stabilization for
Turnkey Instrumentation, SCADA, Telecom, TAS, PCP and interference Mitigation and
“As built Documentation”.

“MDPL” means existing Mundra Bahadurgarh Pipeline

“ASPL” means proposed Awa-Salawas Pipeline

“RKPL” means proposed Rewari-Kanpur Pipeline

"Milestone" means the milestone to be achieved by a specified date or within a specified


period contained in Exhibit 1 and described in Article 8.1.1.2.

"Milestone Value" means in respect of any Milestone that part of the Contract Price
payable in respect of that Milestone.

“Awa-Salawas Pipeline Project” shall mean and include Basic engineering, Process
Design, Detailed engineering for procurements, construction works, services, Tendering
& submission of Techno-commercial recommendations, Inspection, Material
management, Project Management services, Construction management/ supervision, Pre-
commissioning and commissioning of

(i) Pipeline: Awa-Salawas Pipeline including associated modification works at Awa


Pumping Station and Salawas Receipt Station, SV stations for proposed new line
including system integration between existing and new pipelines.

(ii) Terminal: Augmentation and Realignment of tankage & related Integration


works at existing Salawas Depot.

"Owner" shall have the meaning as described in article 6.1.

"Owner's Representative" shall have the meaning set forth in Section 6.2.

"Parent Company Guarantee" means the document referred to in Article 20.1.

"Parties" shall mean Owner and Consultant, and "Party" shall mean either of the Parties.

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"Person" means any person, firm, corporation or other legal entity whether incorporated
or unincorporated.

"Project Manager" shall have the meaning set forth in Article 21.3.

"Proprietary Information" shall have the meaning set forth in Article 15.1.

"Retainage" means ten percent (10%) of each Milestone Value, as at the date of
execution of this Contract, withheld or to be withheld, pursuant to Article 8.3, by the
Owner.

"Schedule of Work" means the schedule set forth in tender, as supplemented and/or
changed from time to time as provided herein.

"Scope of Work" means the activities set forth in tender to be undertaken by Consultant.

"Site" shall mean the sites or locations where the proposed facilities covered under this
Contract are to be constructed in India.

"Subcontractor" shall mean any person or entity providing services included in the
Scope of Work pursuant to a subcontract with Consultant.

"Work" means the Project management and Design services more fully described in the
Scope of Work to be provided in accordance with this Contract, all necessary work and
services to be performed by Consultant to satisfy its obligations under this Contract.

"Work Product" shall have the meaning set forth in Article 14.4.

"Work Value" means the percentage of work determined pursuant to Article 19.3.1.

1.2 INTERPRETATION

1.2.1 Unless the context otherwise requires:

(a) Words importing the singular only also include the plural, and vice versa;

(b) Words importing persons or parties shall include firms, partnerships, corporations and
any organization having legal capacity, and vice versa;

(c) Words importing one gender shall be construed as including the other gender or the
neuter; words importing the neuter shall be construed as including either gender.

1.2.2 The index and marginal notes or headings in this Contract and any other document
forming part of this Contract shall not be part thereof nor be taken into consideration in
the interpretation or construction thereof or of this Contract.

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1.2.3 Subject to any express provision to the contrary contained elsewhere in this Contract, any
period of time fixed by this Contract or determined pursuant to this Contract for doing
any act or thing shall be reckoned in accordance with the following provisions:

(a) The usual non-working days of the week and public holidays in the Consultant's country
and in India shall be included in any such period of time;

(b) "month" shall mean a calendar month;

(c) Where the act or thing is required to be done within a specified period after or from a
specified date, the period shall begin immediately after that date;

(d) Where the act or thing is required to be done within or in not less than a specified period
before a specified date, the period shall end immediately before that date.

1.2.4 Communications which under this Contract are required to be "in writing", may be
handwritten, typewritten, e-mail or printed and may consist of a facsimile transmission, if
followed by a duly signed confirmation copy to be dispatched simultaneously with the
dispatch of fax.

1.2.5 All references in this Contract to Articles are references to Articles numbered herein, and
not to those in any Exhibit forming part of this Contract.

1.2.6 Wherever in this Contract provision is made for the giving or issue of any notice,
consent, approval, certificate, instruction, request, or determination by any Person, unless
otherwise specified, such notice, consent, approval, certificate, instruction, request, or
determination shall be in writing and the words "notify", "certify", "instruct", "request",
or "determine" shall be construed accordingly.

ARTICLE 2:

CONSULTANT'S WORK AND RESPONSIBILITIES:

2.1 The Work. Consultant shall perform the Work.

2.2 Additional Responsibilities. Except as may otherwise be specifically provided in this


Contract, Consultant shall be responsible for providing managerial, administrative, design
and engineering services and labor, and any other items not specifically described in this
Contract if:

(a) It reasonably may be inferred in accordance with standards employed by leading


engineering firms in the petroleum refining industry that the provision of such additional
items or work undertaken was contemplated by or as part of this Contract and/or the
Project management ; or

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(b) The provision of such additional items or work undertaken is necessary in order for
Consultant to satisfy the warranties set forth in Article 12.1 and to make the Work
comply with this Contract.
Work undertaken and additional items provided pursuant to this Article 2.2 shall not give
rise to any adjustment in the Contract Price.

2.3 Special Requirements. Consultant shall comply with the project control requirements,
the quality assurance requirements, the health, safety and environmental requirements
contained in and the document control requirements.

2.4 Security deposit. Consultant shall pay an amount equivalent to one percent of Contract
Price within 15 days of the Effective Date in one of the following ways, failing which the
owner reserves the right to cancel the contract and forfeit the Bid Security (EMD) of the
Bidder:

i) By a Crossed Demand Draft (D/D) drawn in favour of ‘Hindustan Petroleum Corporation


Limited’ payable at ‘Delhi’, India. D/D should be drawn on any Nationalized / Scheduled
bank (Other than co-operative bank).

ii) In the form of an irrevocable Bank Guarantee (as per format given by the Owner) in
favour of Hindustan Petroleum Corporation Limited of any Indian Nationalised
Schedule Bank (Other than Cooperative Bank) or Foreign Banks having an Operating
branch in India or having an Indian Associate Bank. Alternatively, Composite PBG for
10% of PO value towards Security Deposit and Performance Bank Guarantee
(Retainage) can also be submitted (as per format given by the Owner) valid up to a period
of 3 months beyond the expiry of retainage period.

On payment of Security Deposit, the Bid Security (EMD) or Bank Guarantee shall be
returned to Consultant. Bid Security paid thru Demand Drafts shall be paid in the same
currency equal to that deposited by the Bidder along with their Bid. The Security Deposit
will not bear any interest for the duration it is lying with the Owner.

2.5.1 Refund of Security Deposit. The Security Deposit will be refunded to the Consultant
within 30 days of issue of Certificate of Acceptance of the Work as set out in Article
11.1, subject to any deduction as per Article 12.3.3.

ARTICLE 3:
SCHEDULE OF WORK:

3.1 Commencement of Work. Consultant shall commence the Work promptly upon the
Effective Date, and shall thereafter perform its obligations pursuant to this Contract in

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accordance with the Schedule of Work. Time is of the essence and Consultant recognizes
the importance to Owner of the completion of the Work in accordance with the Schedule
of Work.

3.2 Work Program. Within 15 days after the Notification of Award of Contract, Consultant
shall submit to Owner for approval a detailed program showing how Consultant proposes
to perform the Work in accordance with the Schedule of Work.

3.3 Approval of Program. Owner shall, within 15 days of receipt of such program, notify
Consultant in writing that:

3.3.1 The work program is approved; or

3.3.2 The work program is rejected, in which case reasons for such rejection shall be given; or

3.3.3 Further information is required to clarify or substantiate the work program.

Provided that if none of the above actions is taken within the said period of 15 days,
Owner shall be deemed to have approved the program submitted subject to the exceptions
listed under Article 6.4. Consultant shall, within 7 days of receiving notification under
Article 3.3.3, provide the further information requested failing which the program shall
be deemed to have been rejected. Owner shall, within 7 days of receipt of such further
information, approve or reject the program in accordance with this Article 3.3. In the
event of a program being rejected under Article 3.3.2, or deemed to have been rejected,
Consultant shall within 7 days thereafter submit a revised program taking account of the
reasons given for the rejection or incorporating the further information requested by
Owner. After Owner's approval of such detailed program, Consultant shall comply
therewith, provided that such program may thereafter be modified with Owner's prior,
written consent.

3.4 Priority of Work. Consultant shall give the Work the high priority, and no other work
of Consultant shall take precedence over the Work, nor shall Consultant make any
allocation of its resources which would have the effect of delaying the timely
performance of the Work.

3.5 Maintenance of Schedule of Work. If Consultant is not performing the Work at a rate
which will maintain the Schedule of Work, Consultant shall, at its expense and without
entitlement to any additional compensation, cause Consultant's Personnel to work such
overtime and shall furnish such additional personnel and other resources and Materials as
may be required to comply with the Schedule of Work.

3.6 Adjustments of Schedule of Work. The Schedule of Work shall be adjusted only

(i) By an extension of time granted pursuant to Article 17.2, or

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(ii) When the Parties otherwise agree in writing that the Schedule of Work should be
extended or accelerated.

ARTICLE 4:

CONSULTANT'S ACCEPTANCE OF THE WORK:

4.1 Acceptance of the Work. Consultant acknowledges that it has entered into this Contract
for the considerations set forth herein and that Consultant has carefully examined and
satisfied itself in respect of all pertinent matters which may bear upon the performance of
the Work, the calculation of the Contract Price and the determination of the Schedule of
Work, including the quality and quantity of the Materials required for the performance of
the Work, the availability of labor and personnel for such performance, the character and
quality of the Work to be performed, the location or locations where the Work is to be
performed and any and all other pertinent matters and conditions.

4.2 Information Provided by Owner. The accuracy or reliability of the Design Information
and of any other information supplied, prepared or commissioned at any time by Owner
or any third party, including the Owner's Representative, in connection with the Awa-
Salawas Pipeline Project and /or the Work is to the best of Owner’s knowledge and
Consultant shall exercise its knowledge and competence in scrutinizing such information.

ARTICLE 5:
STANDARDS OF PERFORMANCE:

In performing the Work, Consultant shall conform in all respects to the standards of
performance hereinafter set forth.

5.1 Professional Performance. Consultant shall perform the Work in a professional


manner, using sound engineering and design principles and management and supervisory
procedures, and in accordance with the highest standards of care employed by leading
international engineering firms in the petroleum refining industry. Consultant represents
that it has the required skills and capacity to perform the Work in the foregoing manner.

5.2 Management, Design and Engineering.

5.2.1 Management, Design and Engineering. Consultant shall perform the Work to conform
to the requirements of this Contract, including the Scope of Work.

5.2.2 Documents, Drawings and Manuals. Consultant shall submit to Owner for approval,
within the time periods specified in this Contract, or in the absence of any specified
periods, within periods mutually agreed between Owner and Consultant and if mutual
agreement is not reached with the periods specified by Owner, such designs, drawings,

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samples, patterns, models and manuals as may be specified in this Contract, or as may be
reasonably required in order to enable Owner to approve the Work. Owner shall signify
its approval or disapproval in accordance with Article 6.4. Consultant shall be
responsible for any discrepancies, errors, or omissions in the documents and other
particulars supplied by it whether or not such documents and particulars have been
approved by Owner. Consultant shall not depart from the approved drawings, samples,
patterns, models or manuals except as directed in writing by Owner.

5.3 Provision of Services.

5.3.1 General. Except for items required to be provided by Owner pursuant to this Contract,
Consultant shall provide all services, supplies and utilities, required for the design and
performance of the Work.

5.3.2 Compliance with Codes and Standards. Consultant agrees that the Work and all
systems, components and parts of the Work shall comply with but not limited to:

(i) Those design criteria, codes and standards which are specified in or referenced by this
Contract; and

(ii) The requirements of all relevant statutes, laws, rules, regulations and the requirements of
the Indian authorities, including:

a) Factories Act, 1948;


b) Petroleum Act, 1934 & the Petroleum Rules, 2002;
c) Tariff Advisory Committee Guidelines;
d) Liquid effluent discharge, as per Minimal National Standards for liquid effluents
and air emissions conforming to Pollution Control Board Standards;
e) Civil Aviation Rules;
f) Indian Boiler Regulation Act;
g) The Electricity Act, 2003 and the Rules and Regulations made there under;
h) Requirement of Chief Controller of Explosives;
i) OISD Guidelines/norms (latest)
j) Pollution Control Board Stipulations/Requirements;
k) Requirements of Central/State Government Authorities;
l) MOEF stipulations/requirements.
m) Building and Other Construction Workers’ ACT, 1996
n) MB Lal Committee’s & JIC Recommendation

Consultant also agrees that all design criteria, codes and standards included in this
Contract, are and at all times prior to the Final Acceptance of the Work will be in
compliance with the requirements of such authorities.

iii) Any modification to the agreed Design Criteria shall be subject to Consultant providing
the justification and Owner’s approval of the same.

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5.4 Conduct of the Work.

5.4.1 Manufacturing Procedures. Consultant shall perform, design and develop the Work in
accordance with the latest practicable techniques and innovations consistent with the
management, engineering and design of the Work and the Schedule of Work. Consultant
shall also perform the management, design and development to incorporate, consistent
with the Schedule of Work, experience gained in the course of designing, developing and
managing other similar work designed, developed and/or managed by Consultant.

5.5 Compliance with Applicable Laws and Regulations. Consultant shall abide by all
applicable laws, regulations and ordinances of all governmental authorities and of the
political subdivisions thereof applicable to this Contract and the performance by
Consultant of the Work in any jurisdiction, and by all rules and regulations of those
Persons and entities having control or jurisdiction over the Work. Consultant represents
that it is fully aware of all of the legal requirements, business practices, and rules and
regulations which must be followed when performing the Work. Consultant shall furnish
to Owner, promptly upon request, such information concerning Consultant, its
Subcontractors and their respective employees, personnel, servants and agents as Owner
may be required to furnish to any applicable governmental agencies or authorities.

5.6 Permits and Licenses.

5.6.1 In Consultant's Name. Consultant shall obtain and maintain any registrations, licenses
(including import and export licenses), and permits (including immigration, temporary
residence, work and exit permits), which are required by Indian or other foreign laws, or
Indian or other foreign regulations, for the performance of the Work and which are
required to be in the name of Consultant or its employees or agents.
Owner shall assist the Consultant, at the specific request of the Consultant, in the form of
Recommendation/ Facilitation letters to the Departments/ Statutory bodies concerned in
obtaining and maintaining such Registrations/Licenses & Permits.

5.6.2 In Owner's Name. Consultant shall provide technical assistance to Owner in obtaining
and maintaining (including the preparation and submission to Owner of all
documentation necessary there for), any Indian and non-Indian registrations, licenses and
permits (including import and export licenses for the Work), which are required to be in
the name of Owner or its employees or agents.

5.7 Cooperation with Other Consultants, Contractors and Suppliers. Consultant


recognizes that other consultants, contractors and suppliers have been, and may be,
engaged by Owner to advise Owner and to perform other services with regard to the
Work and/or the other Terminal/Pipeline installation works associated with the Awa-
Salawas Pipeline Project. Consultant shall cooperate with Owner's other consultants,
contractors and suppliers, provide access to Consultant's premises and each
Subcontractor's premises for them and coordinate its activities with the activities of such
consultants, contractors and suppliers under Owner's direction.

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5.8 Notification of Suits and Claims; Owner's Right to Defend.

5.8.1 Consultant to Notify. Consultant shall give Owner immediate written notice of any suit
or action filed against Consultant arising out of the performance of the Work, and of any
claim against Consultant which if paid could result in a claim by Consultant for
indemnification or for which insurance coverage is not in effect or which will be in an
amount which exceeds the amount of insurance coverage. Consultant shall promptly
furnish to Owner copies of all papers received by Consultant pertinent to any such suit or
action.

5.8.2 Owner's Right to Defend. If requested by Owner, Consultant shall do any and all things
necessary or appropriate to effect an assignment and subrogation in favor of Owner of all
Consultant's rights and claims, except against Owner, arising from or growing out of any
suit, action or claim referred to in Article 5.8.1, and shall authorize Owner or Owner's
designated representatives to exercise any such rights to settle or defend any such claims
or take charge of any such litigation affecting Consultant. In the event of such a request
by Owner, Owner shall, subject to and in accordance with Article 8.2, reimburse
Consultant for the costs of such litigation incurred by Consultant, if any, including
judgments, settlements, and court costs and, if Owner does not retain its own counsel,
reasonable attorney's fees.

5.8.3 Provision in Subcontracts. Consultant shall cause a provision similar to this Article 5.8
to be inserted in all of its subcontracts.

5.9 Conflicts of Interest; Commission Payments.

a) Consultant represents and agrees that no person or entity has been retained or employed
to solicit this Contract upon any arrangement or understanding for the payment of any
commission, fee or other compensation of any kind, except for payments to bona fide
employees of Consultant. Consultant further represents that neither it, nor any of its
Affiliates, nor any of its Subcontractors, nor any of their Affiliates, nor any of their
respective officers, directors, employees, consultants or agents have made, received,
provided or offered any such commission fee or compensation. Consultant agrees that
neither it, nor any such other entity or person shall make, receive, provide or offer, any
gift, entertainment, payment, loan or other consideration for the purpose of influencing
the procurement of any particular Materials or services or the acceptance of any
particular Subcontractor or otherwise for the purpose of influencing any individual or
organization to any course of conduct in any way relating to or affecting this Contract or
the Scope of Work, except for payments permitted above to solicit this Contract and
except for incentive payments by Consultant to Subcontractors in connection with the
performance of the Work.

b) Consultant further represents and agrees that it shall not participate in any other
procurement or work contracts of Awa-Salawas Pipeline Project either directly or
indirectly.

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c) Consultant shall, within 30 days after notification of award of Contract, submit to the
Owner a list of its Affiliates. If the Consultant is a joint venture company, within 30 days
after notification of award of Contract, the Consultant shall submit to the Owner a list of
Affiliates of the participants in the joint venture company, i.e. the Consultant.

d) Consultant which is not a PSU or an associate or a joint venture of a PSU and which has
been engaged to provide goods or works for Awa-Salawas Pipeline and any of its
affiliates will be disqualified from providing consultancy services for the same project.
Conversely, a firm which is not a PSU or an associate or a joint venture of a PSU, hired
to provide consultancy services for the preparation or implementation of Awa-Salawas
Pipeline, and any of its affiliates, will be disqualified from subsequently providing goods
or works or services related to the initial assignment for the same project. Consultants or
any of their affiliates who are not PSUs or an associate or a joint venture of a PSU will
not be hired for any assignment, which by its nature, may be in conflict with another
assignment of the consultants.”

e) Breach of the foregoing warranties or agreements shall constitute a material breach of


this Contract, and shall give Owner the immediate right to terminate this Contract
pursuant to Article 19.1.4. Consultant shall cause a provision similar to this Article 5.9 to
be inserted in all of its subcontracts.

ARTICLE 6 :
OWNER'S RESPONSIBILITIES:

6.1 Owner. For the purposes of this Contract, “Owner” or “COMPANY” means
HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL), an Indian Company
having Registered Office at 17, Jamshedji Tata Road, Mumbai - 400 020 and respective
successors - in - interest and permitted assigns.

6.2 Owner's Representative. Upon execution of this Contract, Owner shall designate a
representative ("Owner's Representative") who shall be appointed to represent Owner
under this Contract and notice given to and received from Owner's Representative shall
have the same effect as if given to or received from Owner. Owner shall notify
Consultant of the designation of the Owner's Representative by delivering to Consultant a
letter naming such person or any replacement. Except as expressly stated in this
Contract, the Owner's Representative shall have no authority to relieve the Consultant of
any of its duties, obligations, liabilities or responsibilities under this Contract.

6.3 Delegation. With the prior, written approval of Owner, Owner's Representative may,
from time to time, delegate any of his duties to assistants, and may at any time revoke
any such delegation.

6.4 Approvals. Owner shall expeditiously review and, where appropriate, approve all
drawings, specifications, proposals and requests submitted by Consultant pursuant to this

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Contract. Except as expressly otherwise specified elsewhere in this Contract, Owner
shall approve within 45 working days of receipt of any such submission, in the case of
submissions requiring action by governmental agencies or committees, and within 15
working days of receipt of any such submission, in the case of submissions requiring
action by Owner only. If no approval is given in the case of a submission requiring
action by Owner only, a note of the reasons for such non-approval shall be provided. In
case no written advice, comment or instruction is received by Consultant within such
periods, or within any periods for review and approval stated elsewhere in this Contract,
each submission for approval shall be considered approved; provided, however, that
Owner shall never be deemed to have given approval pursuant to the terms hereof which
would:

(i) cause any amount to become due and payable or increase the Contract Price or
compensation due to Consultant hereunder

(ii) Modify the Schedule of Work

(iii) Detrimentally affect the quality of the Work; or

(iv) Cause any portion of the Work to become accepted by Owner.

A submission for approval shall not be completed until such time as Owner has received
from Consultant in Owner's Project office all information required by the terms of this
Contract to be provided by Consultant, or in cases where this Contract does not specify
the information to be provided, such information as Owner may reasonably require in
order to be able properly to form an opinion concerning the submission for approval.
With regard to the time duration required for Review/Approval of Techno commercial
evaluation and/ or Purchase Recommendation submitted by the consultant shall be
discussed / finalized with Consultant depending on the value of such
Evaluations/Purchase Recommendations.

6.5 Information as to Local Law. If requested to do so, Owner will provide reasonable
assistance to Consultant in obtaining information relating to laws, regulations and
ordinances, including safety regulations, in India and applicable to the performance of
Consultant's obligations hereunder.

6.6 Permits and Licenses. Owner shall obtain and maintain any registrations, licenses
(including import licenses for the Work), and permits which are required by any
applicable Indian laws or regulations and which are required to be in the name of Owner
or its employees or agents.

6.7 Insurance. Owner shall take the following Insurance policies:

a) Comprehensive Transit cum Storage cum Erection insurance for goods and facilities
except transit insurance for materials procured from Indian Vendors.
b) Automobile Insurance for vehicle owned or hired by owner.

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6.8 RBI Permission: As applicable

6.9 Additional Responsibilities: Owner shall be responsible for the matters if specifically
brought out and agreed elsewhere in the tender.

ARTICLE 7:

CONTRACT PRICE, TAXES:

7.1 Contract Price. A breakdown of the Contract Price shall be arrived on the basis of
milestone for Item 1 & 2 for respective package. As regard Item No. 3, the payment will
be made on the basis of actual man-month utilized. In consideration of Consultant's
agreeing to perform the Work in accordance with this Contract, Owner shall pay to
Consultant the Contract Price of [ ] [ ] on a fixed price, lump sum basis for Item 1
& 2. The Contract Price shall be adjusted only in accordance with Article 8.2.

7.2 Amounts Included in the Contract Price. The Contract Price set forth in this Contract
shall be inclusive, without limitation, of all costs, risk and expense, overhead, profit
and/or fees related to the satisfactory performance and completion of the Work and all
taxes and duties. The contract prices shall include any and all costs related to
management, design, engineering, tendering, bid evaluation, supervision, attendance at
all meetings with Owner/contractors (whether at Owner's premises, Owner's nominated
location or Consultant's premises), inspection, testing and quality assurance/quality
control of the Work, and Progress monitoring as more particularly described in the Scope
of Work, or elsewhere in the Contract. Said lump sum prices and other rates mentioned in
Article 7.1 above shall include, but not be limited to, the costs of all labor, supervision,
management, (including, but not limited to, wages, benefits, payroll, taxes, travel
expenses, and other costs related thereto as are paid to employees), all equipment, rental
of third party equipment, communications equipment, communications charges
(including those incurred by Owner while in Consultant's offices during visits), general
administrative costs of Consultant's operation (including travel, lodging, boarding,
transport facility, camp sites, offices) all reproduction and graphics costs of whatever
kind, stationery, postage and courier expenses, all insurance requirements and coverage,
and financing, and all other costs or expenses of any type or kind whatsoever which
directly or indirectly relate to accomplishing the Work and complying in full with the
provisions of the Contract, and which are not otherwise set forth or referred to in the
Contract as a reimbursable expense. All downtime due to weather and mechanical
breakdown of the consultants equipment shall be to Consultant's account and is deemed
to be included in the said fixed lump sum prices and other rates mentioned in Article 7.1
above. Excluded from the above is mechanical breakdown, failure or any other delay
arising from another Contractor on the Owner.

7.3 Taxes and Duties.

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7.3.1 Taxes and Duties. Consultant shall promptly pay all, and Owner shall have no
obligation to reimburse or indemnify Consultant or its Subcontractors for, any taxes
(except service tax), duties, tariffs, fees and other charges (including any deductions or
withholdings), imposed by any competent authority in India or outside India or by any
political subdivision or taxing authority or agency thereof, pursuant to any laws or
regulations (whether now or hereafter in effect), on or with respect to any payments made
by Owner to Consultant pursuant to this Contract, including, without limitation, payments
of the Contract Price or reimbursable costs.

7.3.2 Owner's Right to Withhold. Owner may withhold or deduct from the payment of any
amount otherwise payable to Consultant under this Contract, or pay on Consultant's
behalf, such taxes and other sums, if any, as Owner may be required to withhold, deduct
and/or pay under the laws of any jurisdiction in India or outside India or of any political
subdivision or taxing authority or agency thereof, including but not limited to the income
tax on the income accruing or arising or deemed to accrue or arise in India.

ARTICLE 8:
PAYMENT

8.1 Payment of Contract Price.


The Contract Price shall become payable by Owner in accordance with the following
provisions of this Article.

8.1.1 Completion of and Payment for Work Subject to Milestones.

8.1.1.1 Major Milestones. Details of the Major Milestones and the Weightages of Work
represented by each Major Milestone are set forth in Table-1 & 2 of Section “Documents
& Proformae”.

8.1.1.2 Milestones. The Milestone values will be arrived on the basis of major Milestone
schedule given in Table 1&2 of Sections “Documents & proformae” These Milestones
and Milestone Values shall be used in the calculation of the Work Value pursuant to
Article 19.3.1. Part payment against incomplete Milestone shall not be made.

8.1.1.3 Certification. All Work which is the subject of a Milestone shall be accomplished on or
before the fixed dates or within the specified periods for achieving such Milestones as set
out in the Schedule of Work. Consultant shall certify to Owner and to the Owner's
Representative in writing the achievement of each Milestone (whether the Milestone was
achieved by the date or within the period specified in the Schedule of Work or not), and
Owner shall, within 20 days after receipt of such certification, confirm or deny the
achievement of all such Milestones. Such confirmation or denial shall be indicated by
Owner in writing, but such confirmation shall in no event constitute the acceptance of
any Work. The payment for Item No.3 shall be based on actual Man-month utilized after
due acknowledgement and certification by the owner.

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8.1.1.4 Contents of the Certificate. The certificate to be issued in respect of each Milestone
shall:

(a) Identify the Milestone, with reference to the Schedule of Work;

(b) Give the date on which the Work to which the Milestone relates was commenced and
achieved in accordance with this Contract;

(c) Include a statement as to whether the Milestone was properly achieved in accordance
with the Schedule of Work;

(d) in any case where the date of achievement was after the date of the expiration of the
period fixed by the Schedule of Work, give an explanation for the delay in achievement;
and

(e) Specify the Milestone Value claimed.

(f) In case of additional manpower supply (Item No.3), the details of authorization by owner,
nature & location of work, status of work, duly acknowledged attendance register/time
sheet, or any other proof/ justification etc shall be attached by the Consultant.

8.1.1.5 Payment.

Subject to Article 8.1.1.3, Consultant shall be entitled to payment of the Milestone Value
for each Milestone / man-month properly certified as achieved in accordance with this
Contract. Owner shall pay to Consultant in respect of such Milestones and
attendance/man-hour register/time sheet as are properly certified as complete by
Consultant in accordance with Article 8.1.1.4, the relevant Milestone Value/man-month,
less Retainage, in respect of each Milestone/man-month so certified, within 15 days of
receipt of certification from Consultant, at owner’s Disbursement Section at HPCL-
Pipelines Department, Scope Minar, 8th Floor , North Tower, Laxmi Nagar, Delhi-
110092.

Wherever possible, payment shall be tendered to the consultant in electronic mode (e-
payment) through any of the designated banks. The consultant will comply by furnishing
full particulars of Bank account (mandate) to which the payments will be routed. Owner
reserves the right to make payment in any alternate mode also.

8.2 Reimbursable Costs

8.2.1 Reimbursable Costs Consultant shall not be entitled to any adjustment of the Contract
Price to be paid pursuant to Article 8.1 except in respect of reimbursable costs pursuant
to:

8.2.1.1 Articles 5.8.2, 9.3, 12.2.2, 18.2, 19.3.2(b) and 22.1(b); or

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8.2.1.2 any supplemental agreement in writing between Owner and Consultant providing that
any further costs should be reimbursed to the Consultant.

8.2.2 Calculation of Cost. Such costs shall be calculated by reference to the breakdown of
prices and/or unit rates or if in Owner's opinion there is no applicable price, on the basis
of actual cost to Consultant. Owner’s opinion in this regard shall be final and binding on
the Consultant.

8.2.3 Submission of Invoice. Within 15 days following the end of each relevant calendar
month, Consultant shall submit to Owner an invoice stating the amount for payment
against certified Milestones as per Article 8.1.1 and/or as per Article 8.2.2 for all
reimbursable costs incurred by Consultant during the immediately preceding calendar
month, and a breakdown of such costs and items. Each invoice shall be accompanied by
copies of actual invoices, vouchers, receiving reports, Subcontractor's delivery notes,
payroll records, and such other supporting documents and records as Owner may request
and shall be certified by Consultant as true and correct.

8.2.4 Payment of Invoice. Owner shall pay the invoice submitted by Consultant
pursuant to Article 8.2.3 within 15 days after receipt of certified bills at Disbursement
Section, at HPCL-Pipelines Department, Scope Minar, 8 th Floor , North Tower, Laxmi
Nagar, Delhi-110092; provided, however, that if any item on such invoice is disputed by
Owner, Owner shall promptly notify Consultant as to such item, the amount thereof, and
the reasons why such item is being disputed, and Owner may deduct the amount thereof
from such invoice pending resolution of the matter, but shall pay the undisputed items on
such invoice in accordance with the provisions of this Article 8.2.4.

8.2.5 Future variations in Taxes: Variations of taxes and duties arising out of the
amendments to the Central / State enactments, in respect of services covered under this
bid shall be to HPCL’s account, so long as:
• They relate to the period after the opening of the price bid, but before the contracted
completion period ( excluding permitted extensions due to delay on account of the
contractors, if any) or the actual completion period, whichever is earlier; and
• The vendor furnishes documentary evidence of incurrence of such variations, in
addition to the invoices/documents for claiming Cenvat /Input Tax credit, wherever
applicable. The adjustment will be effected on pro-rata basis, however no adjustment in
Contract Price shall be made for any variation in direct taxes (Corporate Tax, Income
Tax, Withholding Tax etc.).

8.3 Retainage.

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8.3.1 Retainage Percentage Retainage equal to ten percent (10%) of the Milestone Value due
to Consultant from time to time shall be retained by or on behalf of Owner up to a
maximum of ten percent (10%) of the Contract Price as at the date of execution of this
Contract. All moneys retained shall be held by Owner without obligation to invest them
or account for interest thereon, or to place them in a designated account.

The Retainage can be converted into Bank Guarantee (as per the format given by Owner),
at the option of Consultant. Composite PBG for 10% of PO value towards Performance
Bank Guarantee inclusive of Security Deposit shall be accepted (in lieu of deduction of
retainage money of 10% from each bill); Such composite PBG shall be valid upto a
period of 3 months beyond the expiry of defect liability period. Bank Guarantees of only
following banks are acceptable

a) Any Scheduled Banks (Other than Co-operative Banks)

8.3.2 Release of Retainage. The Retainage shall be released to Consultant within 30 days of
the date of successful completion of defect liability period of one year from the date of
Provisional Acceptance of work, i.e., if no defects in the performance of work
attributable to Consultant are observed within the period or else within 30 days from the
Final Acceptance of Work.

8.4 General Terms of Payment

8.4.1 Accounts. All payments by Owner to Consultant pursuant to Articles 8.1 and 8.2, shall
be made by e-payment to an account or accounts to be designated by Consultant and
maintained by Consultant, or by such other person or entity as Consultant may from time
to time designate, with a bank or banks in in which Consultant's relevant bank account is
located and shall be deemed to have been fully discharged when deposited in the account
or accounts designated by Consultant as aforesaid, provided that, once all acts necessary
to initiate the relevant wire transfer have been completed within the time specified for
such payment, any delays within the international or domestic banking system in the
transfer of such payments to Consultant's account or accounts as aforesaid shall not give
rise to a claim that Owner has breached its payment obligations hereunder. If funds are
not received in the account or accounts designated by Consultant, Owner will furnish
upon Consultant's written request, documentary substantiation that all acts necessary to
initiate the transfer of such funds have been taken by Owner's bank or banks. All costs
associated with such wire transfer and incurred in India shall be on Owner's account, and
all other costs shall be on Consultant's account.

8.4.2 Currencies. All appropriations for or invoices submitted for payment pursuant to this
Article, and all payments by Owner to Consultant shall be made in r. INR.

8.4.3 Effect of Payment. The making of any payment shall in no event constitute the
acceptance by Owner of any Work performed by Consultant pursuant to this Contract.

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ARTICLE 9:
CHANGES:

9.1 Changes. Consultant agrees to effect such changes in the Work as Owner may, from
time to time, request. Any request by Owner for a change shall be delivered to
Consultant in writing and shall be sufficiently definite and detailed to give Consultant an
adequate basis on which to prepare a preliminary change order pursuant to Article 9.2.
Throughout the performance of the Work, Consultant shall have a continuing obligation
to propose to Owner for Owner's consideration:

(a) all such changes as Consultant considers desirable including, any change which in the
Consultant's opinion will reduce the cost of the Work, or improve the efficiency or value
to Owner, or may otherwise be of benefit to Owner; and
(b) such other changes known to Consultant as may be necessary to incorporate significant
new developments in technology which are applicable or appropriate to the Work.

Consultant shall submit any such proposal in the form of a preliminary change order, at
its own cost. The preliminary change order shall give all details, documents etc.
mentioned in Article 9.2.

9.2 Preliminary Change Orders. Upon receipt of Owner's request for a change, Consultant
shall prepare a preliminary change order and furnish same to Owner within a reasonable
period of time following receipt of such request. Each preliminary change order
submitted by Consultant to Owner pursuant to this Article 9.2, shall be in writing and be
accompanied by such information and data as will be required by Owner to evaluate
properly the proposed execution of the work in question, the effect on the Scope of Work,
the Schedule of Work, Consultant's standards of performance, the Basic Design, the
technical soundness of the Work, the Detailed Engineering, the other undertakings by
Consultant and the General Warranties contained in this Contract and the effect on the
Contract Price, if any. Owner shall reject or approve each preliminary change order as
expeditiously as proper consideration of the nature of the change may reasonably permit.
The cost of all work involved in preparing the information and data required to
accompany the preliminary change order involved and for any additional analytical or
investigative work requested by Owner in connection therewith is deemed to be included
in the Contract Price.

9.3 Change Orders. Except as provided in Article 9.4, before Consultant deviates from the
Scope of Work or the Schedule of Work, or acts upon any preliminary change order, the
Parties shall have executed, in advance, a written change order (which may be the
preliminary change order signed by both Parties), incorporating the changes in question
and providing for any change in any Milestone, Milestone Value, the Schedule of Work
or other dates or periods for completion or delivery, any agreed cost consequences and
any change in the Scope of Work, Consultant's standards of performance, General
Warranties, the technical soundness of the Work or other provisions of this Contract in
each case resulting from the change order. Any increased costs shall be paid by Owner to

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Consultant subject to and in accordance with Article 8.2; provided, however, that except
as provided in Article 9.4, Owner shall not be liable to pay for any changes for which a
written change order shall not have been executed in advance by the Parties. If the
change results in a reduction in Consultant's costs the Contract Price shall be reduced
accordingly. In calculating cost adjustments under this Article 9, the prices set forth in
Contract Price breakdown & Unit Rates shall be used to the extent covered thereby, and
actual costs of Consultant shall be used for determining other costs. Any cost adjustment
shall take into account, among other things, the elimination or avoidance of Work to be
performed resulting from the changes in the Scope of Work and from assistance given by
Owner.

9.4 Performance of Change Pending Agreement. If Owner and Consultant fail to agree on
the cost effect of a change, or the effect on the Schedule of Work, or any of the other
matters referred to in Article 9.3, and as a result, a change order of the type referred to in
Article 9.3 is not executed, Owner may nevertheless require Consultant to perform the
Work as changed by delivering to Consultant a change order signed by Owner, unless the
aggregate amount of increased costs as fixed by Owner involved in all disputed change
orders would thereupon exceed five percent (5%) of the Contract Price. Consultant's
performance of the Work as changed shall not prejudice either Party's position regarding
the effects of such change.

9.5 Variations in Price. Except as otherwise provided in this Contract, any increase in costs
resulting from any change under this Article 9 shall be on the account of Owner, provided
that no cost adjustment shall be granted with respect to a change if:

(i) The provision of the additional Work or services is necessary in order for Consultant to
satisfy its responsibility to make the Work comply with this Contract; or

(ii) The additional Work or services are required because of delays in the Schedule of Work
attributable to Consultant or to late deliveries of services or to labor shortages; or

(iii) The additional Work or services are required because of a breach of Consultant's General
Warranties set forth in Article 12; or

(iv) The change relates to performance of any of the Work because of Consultant's failure to
follow the requirements of this Contract.

9.6 Non Allowable Changes. The following shall not be considered under any
circumstances as changes in the Work, or within or to the Scope of Work or the Project
management or the Basic Design and Detailed Engineering, nor shall any of the
following be taken into account when calculating the cost consequences of changes
pursuant to this Article 9, nor shall any of the following of themselves be considered the
basis for any adjustment pursuant to this Article 9:

(i) Any escalation in the cost of the Work or labor thereof;

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(ii) Any increase in manpower hourly rates; and/or

(iii) Currency fluctuations in respect of costs included within the Contract Price.

In addition, a request by Owner that Consultant perform services or provide work not
specifically included within the Scope of Work will not be considered a request for a
change in the Scope of Work if it is reasonable to infer that the services or work
requested were intended to be within this Contract or are necessary to make the Work
comply with this Contract.

ARTICLE 10:

RIGHT TO INSPECT:

10.1 Inspection and Examination. All management, design, development, Work and
workmanship supplied by Consultant or for which Consultant is responsible, shall be
subject during normal business hours to inspection, examination and testing by Owner,
Owner's Representative, or Owner's designated consultants and/or other representatives,
at any and all times during management, design and development and at any and all
places where such management, design and development are carried on, provided such
inspection, examination and testing shall, to the extent possible, be carried out in
conjunction with Consultant's similar activities and, if not, upon prior consultation with
Consultant in order to avoid any unreasonable delay in the performance of the Work. In
furtherance of the foregoing, Consultant shall arrange for Owner to have access to all
places where design and development are being carried out.

10.2 Rejection and Replacement. Owner and its designated consultants and representative
shall have the right to reject any portion of the Work which is defective, deficient, not
within specifications or otherwise of inferior quality or faulty workmanship and requires
its re-performance or replacements. Rejected and other defective or deficient
management or workmanship shall be satisfactorily redone. For reasons solely
attributable to Consultant, the cost associated with such re performance shall be on the
sole account of Consultant and not reimbursable. After completion of the necessary
performance, the relevant work shall be subject to further inspection and examination by
Owner and its designated consultants and representatives. If consultant fails to proceed
within reasonable time with the correction or reperformance of defective management or
workmanship, Owner may, by contract with third parties or otherwise, correct such
management or workmanship or reperform the Work and/or may terminate this Contract
pursuant to Article 19.1.4, Consultant being liable for any damages, to the same extent as
provided in Article 19.3, and in respect of such termination. Reasonableness of the
expenses shall be judged in relation to the expenses that the Consultant would have
incurred at the time of said reperformance of Work.

For reasons solely attributable to Suppliers/Contractors, the cost associated with such re-
performance shall be on the sole account of such Suppliers/Contractors. Consultant shall
keep suitable provision in the Supply Orders / Contracts in this regard. Consultant shall

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also ensure compliance of such re performance and replacement by
Suppliers/Contractors.

10.3 Consultant to Furnish Supplies and Services for Inspection. Consultant shall furnish
at each location where inspection and examination is carried out pursuant to Article 10.1,
all facilities, assistance, labor and utilities necessary for the safe and convenient
inspection of the Work that may be required pursuant to this Contract. Consultant shall
also furnish Owner and Owner's designated consultants and representatives with access to
records of all inspections undertaken by Consultant and/or Subcontractors. All
inspections and examinations by Owner, or its designated consultants and representatives
shall be performed in such manner as not to unreasonably delay the Work. Tests shall be
conducted in accordance with applicable provisions of this Contract or otherwise as
required by Owner.

10.4 Inspection on behalf of Third Parties. Third parties acting pursuant to the requirements
of Indian authorities shall have the same rights of inspection and examination as are
granted to Owner pursuant to this Article 10.

10.5 Consequences of Inspection or Failure to Inspect. The right of inspection and


examination by Owner and by its designated consultants and representatives is intended
solely for Owner's benefit, it being understood that no exercise of or failure to exercise
such right shall relieve Consultant of any of its obligations hereunder or prejudice any of
Owner's rights under this Contract.

ARTICLE 11:
ACCEPTANCE PROCEDURE:

11.1 Notice of Acceptance. Subject to Article 11.2, Consultant shall notify Owner in writing
when Consultant believes that it has completed the Work. Within 15 days after receipt of
Consultant's notice of such completion of the Work, Owner shall advise Consultant in
writing of any portions of the Work which remain to be performed, and Consultant shall
thereupon complete such portions and again notify Owner in writing that Consultant
believes that the Work has been completed. Within 15 days after receipt from Consultant
of each subsequent notice of completion of the Work, Owner shall advise Consultant of
any continuing or additional portions of the Work which remain to be performed. Owner
shall issue a Certificate of Acceptance of the Work (the "Certificate of Acceptance"),
after the Work has been completed and accepted, and dated to reflect the actual date of
Acceptance of the Work. This procedure shall be applied for both Provisional & Final
Acceptance of the work

11.2 Conditions. The issue of the Certificate of Acceptance shall be conditional upon:

(i) legally effective releases, executed by Consultant, its Subcontractors and any persons
claiming by, through, under or against Consultant who might have an interest in the Work
or part thereof adverse to Owner, of all claims and liens against Owner arising under or

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by virtue of this Contract, except such claims and liens, if any, in such stated amounts
which Consultant, with the written consent of Owner, may exclude from the operation of
such releases; and

(ii) Consultant's written declaration, together with such supporting documents as Owner may
reasonably require, that all claims and demands against, and debts incurred by
Consultant, in respect of this Contract, have been settled, except claims excluded with the
consent of Owner from the releases referred to in the foregoing sub Article (i), and all
taxes due and payable by Consultant pursuant to Article 7 have been paid or otherwise
provided for.

11.3 Discretion of Owner. Notwithstanding the foregoing, Owner, in its sole discretion, may
accept the Work at any time and issue a Certificate of Acceptance even if, after corrective
measures have been taken by Consultant, the Work as a whole does not satisfy the
requirements of this Contract. Such acceptance and such notice shall not relieve
Consultant of its obligations under this Contract unless:

(i) Owner fails to give Consultant access to the Work or part thereof to effect the requested
or required corrections within 60 calendar days of the date Consultant makes written
request therefore; and

(ii) Consultant is ready, willing and able to perform such corrections within such period.

11.4 Costs of Corrections. If Consultant is required to correct any defects or deficiencies in


the Work in connection with the issue of the Certificate of Acceptance of the Work
pursuant to this Article 11, or which result from a breach of Consultant's General
Warranties or otherwise in accordance with the terms of this Contract, the costs
associated with the correction of such defects or deficiencies shall be on the sole account
of Consultant and shall not be reimbursable.

ARTICLE 12:
GENERAL WARRANTIES:

12.1 General Warranties. Consultant warrants that:

12.1.1 Personnel. All professional personnel of Consultant and its Subcontractors shall have
proper qualifications for the Work assigned to them hereunder.

12.1.2 Standard of Care and Work Consultant and each Subcontractor shall perform their
obligations under this Contract in conformity with the highest international standards.

12.1.3 Management, Design and Development The management, design and development of
the Work shall conform to this Contract and shall be free of defects and deficiencies. The
management, design and development shall be such that the Work shall comply with the

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terms of this Contract and shall meet all design, safety and performance and other criteria
as specified herein.

12.1.4 Work The Work shall be fit for the purposes and uses intended and capable of use in the
manner contemplated in this Contract.

12.1.5 Other Services All Work performed by Consultant and Subcontractors not otherwise
mentioned in this Article 12.1, including, without limitation, inspections performed by
Consultant or its Subcontractors under this Contract, shall be adequate and sufficient for
the purposes intended, in conformity with the terms of this Contract and free of defects
and deficiencies. Workmanship and warranties of Consultant shall remain valid till Final
Acceptance of Work.

Consultant's obligation to manage, design and develop the Work correctly, and the
General Warranties set forth above, shall not be reduced or affected by any inspection,
test, acceptance or payment, Owner's approval of any designs, drawings or specifications,
or by the issue of the Certificate of Acceptance of the Work or any re-performance or
replacement of any part of the Work.

12.2 Remediation.

12.2.1 Notice. At any time Owner may, till the Final Acceptance of Work, by notice in writing
to Consultant, require Consultant to remedy any defect in the Work by re-performance or
replacement.

12.2.2 Obligation to Remedy Breach. Consultant shall be obligated to effect, at its own
expense, in the shortest practicable time, such reperformance and replacement as are
necessary to remedy the breach of any provision hereof as the result of such breach. In
case of any defect or deficiency in the Work arising till the date of Final Acceptance of
the Work which has not resulted from a failure by Consultant to perform its obligations
under this Contract including supervision of work. Consultant shall nevertheless correct
such defect or deficiency and shall be entitled to reimbursement of the costs associated
with the correction thereof. The amount of such costs shall be agreed between the
Parties, or in the absence of agreement, decided by the Owner (which decision shall be
final and binding on the Consultant), and reimbursed subject to and in accordance with
Article 8.2.

12.2.3 Program for Reperformance and Replacements. As soon as practicable, and in any
event within 5 days after the receipt by Consultant of Owner's notice under Article
12.2.1, Consultant shall submit for Owner's approval, a plan for effecting the
reperformance or replacement required to remedy such breach. If required by Owner,
Consultant shall attend at the Site or elsewhere in India to inspect the defective Work and
where appropriate carry out repairs to or replacement of the defective Work.

12.2.4 Owner's Recourse. If Consultant does not begin its plan for reperformance &
replacement within the time mutually agreed, or if Consultant and Owner fail to reach

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agreement on such a program within 5 days of the receipt by Owner of Consultant’s plan
submitted pursuant to Article 12.2.3, Owner, after advising Consultant in writing, shall be
entitled, at its option and at Consultant’s reasonable expense, to perform or have third
parties perform such work or services as is necessary to remedy or cause to be remedied
such breach or to pursue such other remedies as may be available to it under this contract
or at law. Reasonableness of the expenses as aforesaid shall be judged in relation tot the
expenses that the Consultant would have incurred at the time of said re-performance of
Work. Recourse under this Article 12.2.4 shall not prejudice Owner’s rights under Article
19.

12.2.5 Other Rights and Remedies. The rights and remedies of Owner provided by this
Article 12.2 are in addition to any other rights and remedies provided at law or in equity
or otherwise.

12.2.6 Limitations to Consultant’s Warranty. Notwithstanding Consultant’s obligations under


the Contract in relation to the re-performance or replacement of defective Work,
Consultant’s liability to Owner in respect of such re-performance or replacement shall be
limited to 20% (including the 10% Retainage as per clause 8.3) of the Contract Price in
the aggregate, in excess of which sum Owner shall save indemnify and hold harmless
Consultant.

12.3 Special Completion Warranty.

12.3.1 Special Completion Warranty. Without limiting the effect of the General Warranties or
any other provision of this Contract, Consultant Warrants that completion of Work, shall
occur no later than the delivery periods specified in the Tender Document (Time
Schedule-Chapter 9) (excluding the defect liability period of 1 year) subject to and in
accordance with Article 17.2.

12.3.2 Effect of Breach. Time is of the essence of the performance by Consultant of its
obligations under this Contract. In addition, therefore, to Owner’s rights under Article
3.1, if Consultant breaches the special completion warranty set forth in Article 12.3.1
and provided such breach is solely on account of reasons attributable to Consultant,
Consultant shall pay to Owner as liquidated damages for delay (and not as a penalty) one-
half percent (0.5%) of the Contract Price as of the date of execution of this Contract for
each week of delay in completing Work up to a maximum aggregate amount in respect of
such delay of five percent (5%) of the Contract Price as at the date of execution of this
Contract. The Liquidated damage shall be applicable Part wise viz. for Part-I & Part-II.
For Part-II the liquidated damage shall be applicable only for contract value (derived on
the basis of Milestone chart) up to and including mechanical completion. No Liquidated
damage shall be applicable for works beyond Mechanical completion and additional
manpower supply.

12.3.3 Payments. Any amount required to be paid by Consultant pursuant to Article 12.3.2 may
be deducted by Owner from any amounts otherwise payable to Consultant in accordance
with Article 8. If no such amounts remain to be paid or if the aggregate of such amounts

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remaining to be paid is less than the amount payable by Consultant under Article 12.3.2,
Owner shall deliver an invoice to Consultant for the amount due on the balance thereof
and Consultant shall pay such amount upon demand to such bank account as Owner shall
designate. The provisions of this Article 12.3 shall be without prejudice to Owner’s
rights under Article 19.

12.3.4 Effect of Acceptance. Subsequent Acceptance of the Work shall not affect Consultant’s
obligation, if any, to make payments due in accordance with this Article 12.3.

12.4 Delay caused by Owner. To the extent that Consultant is granted an extension of time
in respect of the Schedule of Work subject to and in accordance with Article 17.2.1(a),
(c), (d) and (e) for delay caused by a default by Owner in respect of its obligations under
this Contract, Owner shall pay to Consultant any additional costs incurred by Consultant
directly in respect of the period of such extension of time, on a reimbursable basis subject
to and in accordance with Article 8.2; provided however, that Owner shall not be liable
under this Article 12.4 for any such costs to the extent that such delay is attributable to
Consultant’s failure to perform under this Contract.

ARTICLE 13:
EFFECT OF APPROVALS, ACCEPTANCE AND PAYMENT :

The obligations of Consultant hereunder shall not, except as expressly provided herein,
be reduced or affected by any inspection, test, approval or payment, whether preliminary
or final, or by the Certificate of Acceptance of the Work, it being agreed that the
obligations of Consultant hereunder shall continue until Final Acceptance of Work.

ARTICLE 14:

TITLE:

14.1 Title to Work. Consultant agrees that title to the Work or any part thereof shall pass to
Owner from Consultant upon commencement of the Work, or any portion thereof, by
Consultant. Consultant shall, however, retain care, custody, and control of the Work and
exercise due care thereof. Such transfer of title shall in no way affect Owner's rights
under any other provision of this Contract.

14.2 Warranty of Title. Consultant warrants good title to the Work.

14.3 Protection of Title. For the purpose of protecting Owner's interest in all Work with
respect to which title has passed to Owner but which remains in the possession of another
party, Consultant shall take or cause to be taken all steps necessary under the laws of the
appropriate jurisdictions to protect Owner's title and to protect Owner against claims by
other parties with respect thereto. If, after notice in writing from Owner and the lapse of
a reasonable time in which to obtain a discharge, Consultant fails to discharge, or, in a
manner acceptable to Owner, effectively to provide for such discharge or to secure

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Owner against any Lien or claim upon the Work, arising from Consultant's or a
Subcontractor's performance of the Work, Owner shall have the right, at its option, upon
notice in writing to Consultant to provide by agreement, payment or otherwise for the
discharge of such Lien or claim. Consultant shall reimburse Owner for all amounts
expended by Owner to obtain such discharge, including all costs and attorneys' fees and
expenses. Consultant shall cause the Work to be suitably marked with an identifying
mark or symbol indicating that the Work is the property of Owner.

14.4 Ownership of Designs and Drawings. All designs, drawings, specifications, data,
computer printouts, programs and files, documents, reports, studies, manuals, programs,
analyses and all other items produced by Consultant or Subcontractors in the performance
of the Work (herein collectively referred to as the "Work Product"), shall become and
remain the property of Owner, and Consultant shall deliver the Work Product (properly
sorted and indexed), to Owner in accordance with the provisions of this Contract and in
any event upon termination of this Contract. The provisions of this Article 14.4 shall
survive any termination of this Contract.

ARTICLE 15:
PROPRIETARY INFORMATION; COMPUTER DATA; LICENSES AND
INVENTIONS

15.1 Proprietary Information of Owner.

15.1.1 Proprietary Information Defined. As used in this Article 15, "Proprietary


Information", shall mean all information which Consultant, directly or indirectly,
acquires from Owner or its Affiliates or from the performance of the Work, or any other
information concerning the technical and business activities and know-how of Owner or
its Affiliates, except information falling into any of the following categories:

(a) information which, prior to the time of disclosure hereunder, is lawfully in the public
domain;
(b) information which, after disclosure hereunder, enters the public domain, except where
such entry is the result of Consultant's or a Subcontractor's breach of this Contract;
(c) information, other than that obtained from third parties which, prior to disclosure
hereunder, was already lawfully in Consultant's possession either without limitation on
disclosure to others or which subsequently becomes free of such limitation;
(d) information obtained by Consultant from a third party who is lawfully in possession of
such information and not subject to a contractual or fiduciary relationship to Owner or
any of its Affiliates with respect to said information; it being understood that Consultant
may use and disclose such information in accordance with the terms under which it was
provided by such third party; and
(e) information obtained pursuant to any confidentiality agreement to which Owner and
Consultant are, or shall become, parties.

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15.1.2 Consultant's Procedures. Consultant represents that it has a policy and procedure
designed to protect trade secret rights and its own proprietary information including
notices to its employees to prevent unauthorized copying, publication and disclosure of
such information. Consultant agrees that Proprietary Information shall be subject to such
policy and procedure. In addition, Consultant agrees that it shall not disclose any
Proprietary Information, nor use Proprietary Information other than on Owner's behalf,
except as Owner may otherwise authorize in writing. If disclosure to a third party is so
authorized, Consultant shall first enter into a written confidentiality agreement with said
party containing the same terms and conditions with respect to use or disclosure of
Proprietary Information as this Article 15.1 contains.

15.1.3 Documents. Consultant also agrees to safeguard any documents and information which
Owner may supply to Consultant hereunder. Consultant may make copies of such
documents only to the extent necessary for the performance of the Work. On completion
of the Work, Consultant agrees to return to Owner all documents supplied by Owner and
to destroy all copies thereof. Should Consultant, however, desire to retain certain
documents and receives Owner's written approval therefore, Consultant shall treat said
documents as it does Proprietary Information.

15.1.4 Confidentiality Agreements with Third Parties. Consultant also agrees to enter into
written confidentiality agreements with third parties upon Owner's request and to keep in
force confidentiality agreements concerning third parties' proprietary information, which
agreements shall permit Consultant to use such parties' proprietary information in the
Work.

15.2 Consultant's Confidential Information. It is not Owner's desire to be afforded access


to Consultant's or any Subcontractor's confidential information. It is therefore agreed that
any information which Consultant or Subcontractors supply to Owner shall not be subject
to any obligation of confidence, (notices on drawings, proposals, graphs, tables,
specifications and the like to the contrary notwithstanding), and Owner shall not be liable
for any use or disclosure of any of such information unless such information is the
subject of an express written confidentiality agreement between Owner and Consultant.
Consultant also agrees that it will not disclose to Owner any information which is subject
to an obligation of confidence by Consultant or any Subcontractor to any third persons.

15.3 Computer Data. Consultant undertakes to assure to Owner access to the computer
programs and computer data used by Consultant in the performance of the Work for use
by or on behalf of Owner for 2 years from the Acceptance of Work as a whole, and shall
deliver details of all computer programs underlying the development of technical data
and the technical reports generated with the respective programs used in the design along
with relevant supplemental information. All deliverables shall be given in standard text or
worksheet form to enable the Owner to review the same in Windows based MS office.

15.4 Licenses. On or before the date of the Certificate of Acceptance of the Work, Consultant
shall deliver or cause to be delivered to Owner, such licenses of all patents and other
proprietary rights held by Consultant, any Subcontractor, or any of their respective

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Affiliates as may be required for Owner in the optimal use of the Work in the manner
intended. Such licenses shall be in such form as shall be approved by Owner, shall be
perpetual, irrevocable, non-exclusive and royalty free to Owner, and shall permit the right
to grant sublicenses to any operator of the Awa-Salawas Pipeline Project for the purposes
of operation thereof.

ARTICLE 16:
FRUSTRATION:
In the event of this Contract being frustrated whether by war or by any other supervening
event which may occur independently of the will of the Parties, the sum payable by the
Owner to Consultant shall be the same as that which would have been payable under
Articles 19.3.2 (a) and (b) if this Contract had been terminated in accordance with Article
19.1.3 or 19.2.2, provided that this Contract shall not be frustrated by any of the events
listed in Article 17.1.4.

ARTICLE 17:

FORCE MAJEURE AND EXTENSIONS OF TIME:

17.1 Force Majeure

17.1.1 Events of Force Majeure. For purposes of this Contract, "Event of Force Majeure",
shall mean, any circumstance not within the reasonable control of the Party affected and
which, despite the exercise of reasonable diligence, such Party is unable to prevent, avoid
or remove.

17.1.2 Effect of Force Majeure. Should any Event of Force Majeure prevent or delay the
performance by a Party of any of its obligations under this Contract (other than a
payment obligation when, as and if due hereunder) then, provided that notice is given to
the other Party in accordance with the provisions of Article 17.1.5, the Party which is
prevented or delayed in the performance of its obligations, shall be excused from
performance in accordance with the time specified in this Contract, for so long as the
relevant Event of Force Majeure continues, and to the extent that such Party's
performance is prevented, hindered or delayed, such Party shall be excused from
performance of the obligations prevented, hindered or delayed until the expiration of any
extension of time agreed between the Parties or granted to Consultant in accordance with
Article 17.2.

17.1.3 Instances of Force Majeure. Events of Force Majeure shall include, without limitation,
but subject to the provisions of Articles 17.1.1 and 17.1.4, the following:
(a) acts of God;
(b) acts of war or the public enemy whether war be declared or not;
(c) public disorders, insurrection, revolution, rebellion, sabotage, riots or violent
demonstrations;
(d) explosions, fires, earthquakes, flood, cyclone, epidemic or other natural calamities; and

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(e) strikes or lockouts or other industrial action by workers or employees, other than
Consultant's or any Subcontractor's personnel, workers or employees.
(f) Law & Order problems, proclamation, regulations of ordinance of any Government or
Subdivision or Statutory Authority.

17.1.4 Certain Delays not Excused Notwithstanding that an Event of Force Majeure may
otherwise exist, the provisions of this Article 17 shall not excuse:

(a) late performance or delivery of Work caused by Subcontractors or by inefficiencies on


the part of Consultant or Subcontractors;
(b) late performance by Consultant or any Subcontractor caused by Consultant's or any
Subcontractor's failure to hire an adequate number of personnel or labor or by
inefficiencies on the part of Consultant or any Subcontractor;
(c) submission of designs, drawings or other documents or information for approval at such a
time which does not leave sufficient time to permit an orderly review thereof prior to
development of the Work; or
(d) delays resulting from inclement weather conditions of any kind or from any other similar
cause.

17.1.5 Notice of Force Majeure; Procedure. If either Party desires to invoke an Event of
Force Majeure as a cause for delay in the performance of any obligation hereunder, that
Party shall, not later than 10 days after the commencement of such Event of Force
Majeure, give written notice to the other Party of:

(a) the date of commencement and nature of the Event of Force Majeure; and
(b) the date on which the Event of Force Majeure terminated (if before the date of notice),
alternatively, if the Event of Force Majeure is continuing, its expected duration.

17.1.6 Mitigation of Delay. The Party affected by the Event of Force Majeure shall use all
reasonable efforts to prevent and reduce to a minimum and mitigate the effect of any
delay occasioned by any Event of Force Majeure including recourse to alternate
acceptable sources of services, and reasonable adjustment of Work activities.

17.1.7 Costs During Force Majeure. In the event of an Event of Force Majeure, each Party
shall bear any costs incurred by it resulting there from.

17.2 Extensions of Time.

17.2.1 Relevant Events. Consultant may apply to Owner for an extension of time in respect of
any Milestone, if any, if the following events occur ("Relevant Event"), which delays or
prevents, or will delay or prevent, Consultant from achieving such Milestone by the time
specified in the Schedule of Work:

(a) a Change Order under Article 9;


(b) an Event of Force Majeure;
(c) a notice of suspension served under Article 18;

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(d) delay resulting from the designation of a Subcontractor by Owner pursuant to Article
22.1(b); or
(e) any delay, impediment or prevention by Owner.
(f) delay in supply of material by supplier or execution of work by other Contractors or
any other delay not attributable to Consultant.

17.2.2 Certain Delays not Excused Consultant shall not be entitled to any extension of time in
respect of any delays caused directly or indirectly by any of the following:

(a) any default by Consultant; or


(b) the failure of any Subcontractor to commence or to carry out the Work in due time
including in particular, but not so as to restrict the generality of the foregoing, a failure by
a Subcontractor to provide any Materials or services by any delivery dates stipulated in
the relevant subcontract or purchase order; or
(c) non-availability or shortage of labor, utility services or Materials; or
(d) inclement weather conditions adversely affecting the progress of the Work (including,
without limitation, monsoon or other storm conditions); or
(e) any event which is not expressly provided for in article 17.2.1(a) to (e) as a Relevant
Event.

17.2.3 Mitigation of Delay. Consultant shall use and continue to use its best endeavors to
reschedule work activities to avoid or reduce the effects of any Relevant Event upon
achievement of each Milestone.

17.2.4 Notice. If Consultant wishes to pursue a claim for an extension of time, Consultant shall,
not later than 10 days after the commencement of the Relevant Event in respect of which
the extension of time is claimed, give written notice (in addition to any other notice
which may be required under this Contract) to Owner, which:

(a) gives full and detailed particulars of the cause of the delay;
(b) specifies which of the Relevant Events listed in Article 17.2.1(a) to (e) Consultant
considers to be applicable;
(c) gives the date on which the Relevant Event relied upon commenced, and, if the Relevant
Event has ceased, the date on which it ceased, or, if the Relevant Event is continuing, the
expected duration; and
(d) gives full and detailed particulars of:

(i) the effect of any delay to date and of any further delay which may reasonably be expected
upon the Schedule of Work; and
(ii) the measures which Consultant has adopted to date and/or proposes to adopt or continue
to adopt pursuant to Article 17.2.3 in order to minimize the effects of any delay to date
and of any future delay.

17.2.5 Supporting Documentation. Consultant shall keep such contemporary records as may
be necessary to substantiate any application, at a location acceptable to Owner, and such

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other records as Owner may reasonably request. Consultant shall permit Owner to inspect
all such records and shall provide Owner with copies as required.

17.2.6 Procedure. Upon receipt of a notice served in accordance with Article 17.2.4, Owner
and Consultant shall endeavor to agree the period of extension of time in respect of the
relevant Milestone(s), if any, to which Consultant is entitled and any necessary
consequential adjustments to the Schedule of Work. Any such agreement shall be
recorded in writing signed by Owner and by Consultant. If the Parties are unable to
agree, Owner shall grant to Consultant such extension of time (if any), as it considers in
the circumstances to be appropriate and reasonable, which decision shall be final and
binding on the Consultant. Such an extension of time shall be notified in writing to
Consultant by Owner.

ARTICLE 18:
SUSPENSIONS:

18.1 Suspension. Owner may at any time, and from time to time, and for any reason, by
written notice to Consultant, suspend further performance of the Work. Any notice of
suspension shall specify the date of suspension and the estimated duration of the
suspension. Upon the date specified in any such notice of suspension, Consultant shall
promptly suspend further performance of the Work, and during the period of such
suspension shall properly care for and protect the Work including all design work in
progress.
Owner may, at any time, terminate the suspension by written notice to Consultant
specifying the effective date of termination, and Consultant shall use its best efforts to
resume performance of its obligations pursuant to this Contract immediately upon receipt
of such notice. If Consultant's performance of the Work has been delayed as a result of
such a suspension, the Consultant shall be entitled to an extension of time in respect of
relevant Milestone(s), subject to and in accordance with Article 17.2.

18.2 Costs during Suspension. Owner shall pay to Consultant additional costs resulting
solely from a suspension of the Work, subject to and in accordance with Article 8.2;
provided however, that Owner shall not be liable for any payment under this Article 18.2
to the extent that such suspension is attributable to Consultant's failure to perform under
this Contract.

ARTICLE 19:

TERMINATION:

19.1 Owner's Right to Terminate. Owner may terminate this Contract as follows:

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19.1.1 Convenience. Owner may terminate this Contract for its convenience at any time and
without cause. In such event, Owner shall give Consultant not less than 30 days written
notice of its decision to terminate this Contract.

19.1.2 Basic design/Detailed Engineering. Owner may terminate this Contract upon the
conclusion of the Basic Design/Detailed Engineering aspects of the Work, or any part
thereof. In such event, Owner shall give Consultant not less than 15 days written notice
of its decision to terminate this Contract as aforesaid.

19.1.3 Force Majeure. If an Event of Force Majeure continues for more than 6 months after the
notice of the Event of Force Majeure is given or if the Event of Force Majeure has
rendered impossible the performance of this Contract, then Owner may terminate this
Contract by giving Consultant at least 30 days prior written notice of termination.

19.1.4 Default. If Consultant shall assign or transfer this Contract or any right or interest
herein, except as permitted under Article 28.2; or if the interest of Consultant shall
devolve upon any Person, entity or corporation otherwise than as herein permitted; or if
Consultant shall fail without cause to make timely payment for labor, services or
Materials, or disregard laws or ordinances or lawful requirements of any competent
governmental authority, or reasonable instructions of Owner related to quality and
progress of Work; or if, except for the reasons stated in Article 17.1, Consultant shall
fail, neglect, refuse or be unable at any time during the course of the Work to perform the
Work at a rate deemed sufficient by Owner to give reasonable assurance that Consultant
will complete the Work in accordance with the Schedule of Work; or if Consultant
otherwise commits a material breach of its obligations under this Contract; and, in the
case of any of the foregoing events, if capable of remedy, Consultant fails to remedy such
breach within 30 days after receiving written notice thereof from Owner, Owner may
terminate this Contract forthwith, by giving Consultant written notice of such immediate
termination.

19.1.5 Bankruptcy, Liquidation. If Consultant or any guarantor providing a Parent Company


Guarantee hereunder shall become voluntarily or involuntarily the subject of proceedings
under any bankruptcy or insolvency law, or other law or procedure for the relief of
financially distressed debtors, or is unable, or admits its inability, to pay its debts as they
mature, or takes or suffers any action for its liquidation or dissolution, or has a receiver or
liquidator appointed for all or any part of its assets except for the purposes of
amalgamation or reconstruction, Owner may terminate this Contract by giving Consultant
written notice of immediate termination. In the event that such notice is not given for any
reason, Consultant shall remain fully responsible for its obligations set forth in this
Contract.

19.2 Consultant's Right to Terminate.

19.2.1 Default. If Owner commits a material breach of its obligations under this Contract and
fails to remedy such breach within 60 days after receiving written notice thereof from

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Consultant, Consultant may terminate this Contract by giving Owner written notice of
immediate termination.

19.2.2 Force Majeure. If an Event of Force Majeure continues for more than 6 months after
the notice of the Event of Force Majeure is given or if the Event of Force Majeure has
rendered impossible the completion of the Work, in accordance with the Schedule of
Work and the terms of this Contract, then Consultant may terminate this Contract by
giving Owner at least 30 days prior written notice of termination.

19.2.3 Suspension. If performance of the Work shall have been suspended by Owner pursuant
to Article 18.1 for a period of at least 6 consecutive months, and if by the end of such 6
month period Owner shall not have issued a notice of termination of such suspension
pursuant to Section 18.1, Consultant may give Owner 30 days prior written notice of
Consultant's intention to terminate this Contract. If Owner terminates the suspension by
written notice during such period of 30 days, Consultant shall resume performance of its
obligations under this Contract. If the Owner does not issue such notice, Consultant's
notice of termination shall take effect on the expiration of the period of 30 days.

19.3 Effect of Termination. If this Contract is terminated pursuant to the provisions of this
Article 19, the following provisions shall apply:

19.3.1 Calculation of Work Value. Immediately upon notice of termination of this Contract by
either Party in accordance with this Article 19, the Parties shall consult with one another
in order to agree on the percentage of Work completed up to the date of termination. If
agreement cannot be reached, Owner shall determine such percentage, which
determination shall be final and binding on the Consultant.

19.3.2 Payment Obligations on Termination. Without prejudice to any rights and remedies
which Owner or Consultant may otherwise have, if this Contract is terminated, Owner
shall, subject to the provisions of Article 19.3.3, pay to Consultant:

(a) an amount equal to (C x P/100) - PVW - R where C is the Contract Price, P is the Work
Value and PVW is that part of the Contract Price actually paid to Consultant pursuant to
Article 8.1 and R is the retainage pursuant to Article 8.3. The payment for Manpower
supply shall be on the basis of actual man-month utilized, if any, as on the date of
termination. (Total Man-month price –man-month value already paid – retainage)
(b) all costs which are reimbursable subject to and in accordance with Article 8.2 and
incurred to the date of termination, and remaining unpaid; and
(c) except in the case of a termination pursuant to either Article 19.1.4 or 19.1.5, reasonable,
proper and unavoidable costs incurred as a direct result of termination, including costs of
any cancellation charges that Consultant is obligated to pay Subcontractors as a result of
such termination.

Subject to Article 19.3.3, Owner shall pay to Consultant such amounts after receipt of an
invoice therefore in accordance with Article 8.2, and the provisions of Article 8.2 shall
apply to such payment. If when finally determined, the amount PVW in sub-clause (a)

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above exceeds the amount (C x P/100) in sub-clause (a) above, Consultant shall pay to
Owner the amount of such excess within 30 days after receipt of an invoice therefore.
Consultant shall make every effort to minimize the charges referred to in sub-clause (c)
above. Consultant, as a condition of receiving payment under this Article 19.3.2, shall
execute all papers and take all other steps which may be required to vest in Owner or its
designee all rights, setoffs, benefits, title and interest of Consultant in and to the Work
and Materials and in and to subcontracts, purchase orders and other commitments (as
specified by Owner) entered into by Consultant for the benefit of this Contract or in
respect of the Work. All amounts payable to Consultant pursuant to this Article 19.3.2
shall be mutually agreed upon by Owner and Consultant, but in the absence of such
agreement Owner shall determine such amounts, which determination shall be final and
binding on the Consultant.

19.3.3 Termination for Default or Bankruptcy. In the case of termination by Owner for
default or bankruptcy in the circumstances contemplated by Articles 19.1.4 and 19.1.5,
Consultant shall not, pending settlement of Owner's claims by reason of such termination,
be entitled to receive any further payment and shall hold Owner harmless in respect of all
loss or damage suffered by Owner on account of such termination. Owner shall be
entitled to set off the amount of its claims against any sums otherwise due to Consultant.

19.3.4 Accrued Liabilities. Accrued liabilities of Consultant under Articles 11 and 13, and any
liabilities (actual or potential) of Consultant under Articles 14, 23 and 24 for acts and
omissions with respect to Work partially or fully completed at the time of termination
shall not be affected by any such termination.

19.3.5 Option to Take Over Work. In the event of a termination of this Contract under this
Article 19, Owner shall have the right to delivery and possession of the partially
completed Work and to finish the Work itself or with the assistance of third parties. If
Owner exercises its rights under this Article 19.3.5 following a termination pursuant to
Article 19.1.4 or 19.1.5, Consultant shall be liable for the excess of the cost actually
incurred by Owner or third parties, to all parties, persons or entities in order to complete
the Work, over the cost of the Work Consultant has not performed. Owner shall have the
right, at its sole discretion to select third parties to assist in or undertake such completion
of the Work, such selection to be based upon such criteria as Owner shall determine.
Owner shall, in so completing the Work, make such expenditures as in Owner's sole
judgment are necessary therefore.

19.4 Effect of Termination Generally. If this Contract is terminated for any reason pursuant
to this Article 19, Consultant shall take immediate steps to bring its services to a close in
a prompt and orderly manner and shall make every effort to keep expenditures for that
purpose to a minimum. Consultant shall preserve and protect all Work and all property
of Owner subject to Consultant's supervision, shall deliver or relinquish such Work and
such other property to or as directed by Owner and shall assign to Owner such of
Consultant's subcontracts, purchase orders and other commitments as Owner may
request.

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ARTICLE 20:
PARENT COMPANY GUARANTEE:

20.1 Submission of Guarantee. Consultant shall, within 10 days of the execution of this
Contract, submit to Owner a duly executed Parent Company Guarantee in the form set
forth in with only such revisions thereto as may previously have been agreed in writing
by Owner, from a parent company of Consultant, the identity of which shall have been
submitted in writing to Owner prior to execution of this Contract, and against which
Owner shall have raised no objection.

20.2 Failure to Submit. Notwithstanding any other provision of this Contract:

20.2.1 Submission by Consultant of the Parent Company Guarantee in accordance with Article
20.1 shall be a condition precedent to Consultant's entitlement to any payment, or any
further payment, as the case may be, under this Contract; and

20.2.2 Failure by Consultant to provide a Parent Company Guarantee in accordance with the
foregoing provisions of this Article 20 shall entitle Owner either to suspend the Work or
to terminate this Contract forthwith by notice in writing to that effect, notwithstanding
that Consultant may have been permitted to proceed with the Work, and Consultant shall
not be entitled to any compensation whatsoever as a consequence of such suspension or
termination.

ARTICLE 21:
MANAGEMENT, KEY PERSONNEL AND PROJECT MANAGER:

21.1 General. Consultant shall provide, maintain and be responsible for all management
during the performance of the Work. Consultant's procedures for managing, designing
and developing the Work shall generally be those of Consultant, which are subject to
review and/or approval by Owner. Owner shall have the right, but not the obligation, to
be represented at the Consultant's offices to liaise closely with Consultant's management
during the performance of the Work. This representation may include appropriate
management, technical, administrative and clerical personnel to review and/or approve
Work performed by Consultant.

21.2 Key Personnel.

21.2.1 Within 15 days of the Effective Date, Consultant shall submit to Owner a staff
organization plan setting out a proposed staffing schedule for the Work.

21.2.2 Owner may notify Consultant at any time that individuals filling positions described in
the staff organization plan are Key Personnel. Consultant shall ensure that Key Personnel
shall be employed on or in relation to the Work full time until the issue of the Certificate
of Acceptance of the Work. The Key personnel employed by the consultant shall have

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minimum experience as indicated in the Minimum manpower deployment chart. In the
event that it becomes necessary to replace any or all Key Personnel, Consultant shall
provide alternative personnel acceptable to Owner with such skills, experience and
knowledge that will fully fulfill the role of the individuals replaced in achieving
completion of the Work in accordance with this Contract. Such replacement shall take
place within 14 days of non-availability of the Key Personnel being replaced. All Key
Personnel shall be fluent in the English language. Owner reserves the right to make
deduction towards the shortfall in actual deployment and availability of key personnel
having qualification and experience as specified and agreed upon, for periods till
acceptance of work. The minimum manpower and experience therein has been specified
in the tender.

21.3 Project Manager. Consultant shall appoint, subject to Owner's prior, written approval, a
fully qualified, experienced and competent Project Manager who shall have complete and
entire responsibility for executing all Work to Owner's satisfaction. The Project Manager
shall have the experience in management of similar project and should have completed
the same successfully. The Project Manager shall be the formal focal point for all Owner
related communications and management related matters and shall be fully authorized to
bind Consultant for all purposes under this Contract.

21.4 Labor Relations. Consultant shall give to Owner prompt written notice of any labor
dispute or anticipated labor dispute which may be expected to affect the performance of
the Work, or the Schedule of Work.

21.5 Project Control Requirements. Consultant shall provide a project control system.

21.6 Owner/Consultant Interface. Consultant shall coordinate and interface with Owner's
Representative during the performance of the Work.

21.7 Reporting. Consultant shall, in accordance with the document control requirements,
periodically furnish Owner with reports, tabulations and charts containing significant
information that will permit Owner to review and analyze the status of Work.

21.8 Meetings. Consultant shall, at Owner's option, attend meetings at Owner's premises or
other designated locations. Consultant shall be responsible for recording all minutes of
meetings. The minutes of meetings shall be circulated by Consultant for Owner's
approval and Owner shall notify its concurrence thereto or any amendments thereto, in
writing to Consultant, prior to formal issue.

21.9 Site Supervision. The Consultant shall observe all rules and regulations relating to the
Site, and the Work, as are notified to it by the Site supervisor, Owner or Owner's
Representative.

21.10 Provision in Subcontracts. Consultant shall cause provisions similar to the foregoing
Articles to be inserted in all of its subcontracts.

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ARTICLE 22:
SUBCONTRACTORS:

22.1 Subcontracting with Approval.

(a) Consultant shall not subcontract any of its obligations to be performed under this
Contract except:

(i) upon the prior, written approval by Owner of the Subcontractor, and the terms and
conditions of the subcontract between Consultant and such Subcontractor; or
(ii) to one or more of the Subcontractors set forth in the list of Subcontractors approved by
Owner ("Approved Subcontractors")

All Subcontractors shall be appropriately licensed to perform the subcontract Work.


Consultant shall promptly give Owner written notice of the name of each Subcontractor
which Consultant intends to select to perform any aspect of the Work and shall furnish to
Owner for approval such information concerning such Subcontractor as is necessary to
enable Owner to determine compliance with the requirements of this Contract, including
a brief description of the subcontract Work to be performed by such Subcontractor, a
technical analysis of such Subcontractor's bid (excluding price and commercial terms),
and such other information as may be requested by Owner.

(b) Upon receipt of such information, Owner shall have the right (after consultation with
Consultant), to designate the Subcontractor to be selected by Consultant for such portion
of the Work. If Owner exercises this right and the designated Subcontractor is not on
such list, or if on such list, is not the intended selection of Consultant, Owner and
Consultant shall consult concerning the effect, if any, of such selection upon the
Consultant's obligations under this Contract and, if appropriate, Consultant shall be (i)
reimbursed the additional costs of such selection subject to and in accordance with
Article 8.2 and (ii) be entitled to an extension of time in respect of the Scheduled
Delivery Date subject to and in accordance with Article 17.2 and (iii) entitled to an
equitable adjustment of the General Warranties, to be determined by Owner, which
decision/determination shall be final and binding on the Consultant..

22.2 Responsibility for Subcontractors. Consultant shall require all Subcontractors to


engage personnel having minimum 2 years of experience in their respective fields.
Bidders shall appoint their key personnel for supervising the subcontracted jobs and shall
hold full responsibility for the work entrusted to the subcontractors. Consultant shall
require all Subcontractors to perform their work in conformity with all applicable
provisions of this Contract and, notwithstanding any approval by Owner of any
Subcontractor or subcontract, as the case may be, and notwithstanding that any
Subcontractor is an Approved Subcontractor, Consultant shall be responsible for and
warrants the work and services of all Subcontractors as if performed by Consultant. Any
such approval by Owner shall not relieve Consultant of any of its duties, responsibilities,
obligations, warranties or liabilities under this Contract.

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22.3 Cancellation of Subcontracts. No subcontract shall bind or purport to bind Owner, but
shall contain a provision permitting assignment thereof to Owner upon Owner's written
request. Consultant shall include in all subcontracts the right of unilateral written
cancellation by Consultant of all or a portion of such subcontract and, if requested by
Owner, shall immediately exercise such right of termination. Each subcontract shall also
state that in the event of a total or partial cancellation, Subcontractor may claim only its
properly supported out-of-pocket costs, plus a reasonable amount to compensate
Subcontractor for related charges for the cancelled portions which are demonstrated to
Owner's satisfaction. In addition, such subcontract shall state that title to partially
completed Work whose full costs are included in the cancellation charges shall pass to
Consultant or Owner, as Owner shall direct, and that Consultant shall advise
Subcontractor what disposition shall be made of such Work.

22.4 No Payments after Default. Consultant shall promptly advise Owner in writing of any
Subcontractors which are in default under the terms of their subcontracts. Consultant
shall not make any payments to any Subcontractor which may be in default, unless in
Consultant's reasonable judgment such payments are required to cause such
Subcontractor to cure such default. When payments are not so required, Owner will
determine with Consultant an equitable basis for making any further payments in such
cases and will confirm such basis in writing.

22.5 Final Payments to Subcontractors. Consultant shall not pay any Subcontractor in full
until such Subcontractor has issued a certificate or release satisfactory to Owner that such
subcontract has been fully performed and that no property used in connection with the
Work is subject to any unsatisfied Lien or claim as a result of the performance or
nonperformance of such Subcontractor.

22.6 Information Regarding Subcontractors. Consultant shall furnish Owner with such
information relative to Subcontractors as Owner may reasonably request and with a copy
of each agreement (excluding the price), between Consultant and each of its
Subcontractors. Upon termination of this Contract, Consultant shall deliver a copy of
each such agreement to Owner with price, so that Owner can decide whether or not to
exercise its right of assignment.

ARTICLE 23:

INSURANCE:

23.1 Consultant's Insurance. Consultant shall carry, at its own expense and with Insurance
companies acceptable to Owner, the following minimum insurance coverage (on an
occurrence basis), at all times during the course of the Work:

(a) Worker's compensation insurance and employer's liability insurance to the full extent
permitted by all laws (including without limitation maritime, transportation, wages,
maintenance & cure), applicable wherever the Work is to be performed and wherever the

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contracts for employment of the persons whose services are used by Consultant in
connection with the Work are made or expressed to be made;
(b) Comprehensive automobile liability insurance, for bodily injury and property damage
combined and covering owned, hired and non-owned vehicles utilized in connection with
the Work performed. Such coverage shall be primary to (and non-contributory with), all
insurance (including self insurance), that may be maintained by or otherwise available to
Owner. Consultant shall submit to Owner certificates evidencing coverages of the types
set forth above (and from time to time evidencing renewal of any of the same that expire
during the term of this Contract).

23.2 Subcontractors' Insurance. Consultant shall ensure that its Subcontractors maintain
insurance similar to the insurance required of the Consultant in Article 23.1, with limits
of liability and levels of deductibles acceptable to Consultant.

23.3 Owner's Rights. If Consultant fails to fulfill any of its obligations under this Article 23,
Owner may, but shall not be obligated to, procure insurance meeting the requirements of
this Article 23 at Consultant's expense and may deduct the cost thereof from any sums
that may be or become due to Consultant under this Contract. The specific amounts and
types of insurance, and the other obligations of Consultant relating to insurance shall not
in any manner constitute or be construed as a limitation on Consultant's liability under
this Contract.

ARTICLE 24:
INDEMNIFICATION:

24.1 Indemnification by Consultant. Consultant and its Subcontractors shall hold harmless
and indemnify Owner including Owner’s agents, servants or employees against any
claims, loss or liability for personal injury or death or damage to Consultant and its
Subcontractor’s property, and arising out of or in connection with the Work performed
under this Contract.

24.2 Indemnification by Owner. Owner shall indemnify and hold harmless Consultant,
including consultant’s employees, servants, agents and Subcontractors against any loss or
liability that may arise on account of death of or, injury to Owner’s personnel and loss or
damage to Owner’s property arising out of or connected with Work performed under this
Contract.

24.3 Subcontractors. Consultant shall ensure that its subcontracts contain indemnification
provisions in favor of Owner, its Affiliates and any co-ventures, and their respective
officers, directors, employees, servants, consultants and agents, no less beneficial than
those of Articles 24.1 and 24.2.

ARTICLE 25:

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PATENT INDEMNIFICATION:

25.1 Indemnity. Consultant shall indemnify Owner against all loss, cost, damage and
expense arising from any claim asserted against Owner that the Work or part thereof, or
any methods, designs or things furnished or specified by Consultant or any Subcontractor
under this Contract, or any use thereof in the reasonable contemplation of the Parties at
the time furnished, or any methods, processes or acts employed by Consultant in
connection with the performance of its obligations hereunder, constitutes an infringement
of any intellectual property right, patent, trade secret, proprietary information, know-
how, copyright (statutory or non-statutory), unpatented invention or any unauthorized use
of the work of others.

25.2 Defense of Claims. Consultant shall, at its own expense, defend any suit or proceeding
based on any claim referred to in Article 25.1 asserted against Owner. Owner shall give
Consultant such assistance as Consultant may reasonably require in the defense of such
suit, and shall have the right to be represented therein by counsel of its own choosing at
its own expense. If Consultant fails to defend diligently any such suit or proceeding,
Owner may settle the claim which is the basis thereof without the consent of Consultant
and without relieving Consultant of the obligation to indemnify provided in Article 25.1.

25.3 Elimination of Infringement. In case the Work, any part thereof, or any use thereof, is
in any such suit or proceeding held to constitute infringement and its use is enjoined,
Consultant shall promptly at its own expense either:

(i) Procure for Owner the right to continue using the Work or part thereof or such process or
apparatus; or
(ii) Replace the relevant parts of the Work with a non-infringing part of equal utility and
efficiency and satisfactory to Owner; or
(iii) Modify the Work or part in a way satisfactory to Owner so that it becomes non-
infringing.

25.4 Persons included within Indemnity. In this Article 25 the term Owner shall include
Owner, its Affiliates and any co-ventures, and their respective officers, directors,
employees, shareholders, servants, consultants and agents, or any of them as the context
may require.

25.5 Arbitration / Court Cases. Consultant shall ensure that the issues related to various
contracts are settled amicably with the contractors / suppliers. If any contractor / supplier
imposes Arbitration proceedings / court case on HPCL seeking claims on account of
breach of its contract’s conditions and if the arbitration / court case is awarded in favour
of such claimant and if it is proved that the claim was payable on account of the lapses by
the EPMC during contract execution, then such claims will be recovered from EPMC
subject to the financial limit specified in the clause 12.2.6.

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ARTICLE 26:
ACCOUNTING RECORDS AND AUDIT:

26.1 Accounting Records. Consultant agrees to keep records and books of account, showing
the cost of all items of labor, Materials, equipment, supplies, services and all other
expenditures of whatever nature, (including, without limitation, all cash and trade
discounts, rebates, allowances, credits, salvage and commissions in respect thereof),
which are reimbursable to Consultant pursuant to Article 8.2 or for which Owner is
otherwise responsible. Consultant's records and books of account referred to above and
all supporting documents shall be maintained in the English language (or translated into
English, if necessary), and in such a manner as to provide an audit trail and as to facilitate
any examination and audit thereof by Owner.

26.2 Inspection and Audit. For all items referred to in Article 26.1, Owner and/or its
authorized representatives or agents and/or any Statutory Authority shall have the right to
examine and audit, during business hours and at Consultant's and the Subcontractors'
premises, all books, statements, accounts, correspondence, instructions, specifications,
plans, drawings, receipts, memoranda, accounting documents and other records of
Consultant and Subcontractors insofar as they are pertinent to this Contract, whether
similar or dissimilar to the above. Consultant shall cause all of its and each
Subcontractor's documentation specified above to be preserved and made available for
examination and audit, without any additional compensation therefore, for a period of one
year after the date of the Certificate of Acceptance of the Work, or the date of termination
of this Contract, whichever is earlier.

26.3 Owner's Right to Readjustment. Notwithstanding the issue by Owner of any approval,
the Certificate of Acceptance or payment to Consultant or any Subcontractor, Owner
shall be entitled to a refund from Consultant in the event that any examination or audit of
the documentation referred to in Article 26.2 above establishes that Consultant or any
Subcontractor did not incur any amount claimed, or was overpaid for such amount
claimed. Such right of refund shall continue for a period of one year after the date of the
Certificate of Acceptance of the Work or the date of any termination of this Contract,
whichever is earlier.

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ARTICLE 27:
DISPUTES

27.1 General. Any dispute or difference of any kind whatsoever between Owner and
Consultant arising under, out of or in connection with this Contract (including without
limitation any question regarding its existence, validity or termination), or the execution
of the Work including without limitation any dispute as to any decision, opinion,
instruction, determination, certification or valuation of Owner or Owner's Representative
whether during the execution of the Work or after completion or delivery thereof and
whether before or after the termination, abandonment or breach of this Contract, shall be
settled in accordance with the provisions of this Article 27.

27.2 Notice. Each Party shall notify the other in writing when it considers a dispute or
difference has arisen and which it wishes to refer to the other Party for amicable
settlement pursuant to Article 27.3, and to arbitration pursuant to Article 27.4 in the event
that amicable settlement is not reached. Such notice shall contain sufficient information
as to the dispute or difference to enable the other Party to be fully informed as to the
nature of the dispute, the amount of any monetary claim and the length of any extension
of time claimed.

27.3 Amicable Settlement. Where notice of dispute or difference has been given under
Article 27.2, the Parties shall attempt to settle such dispute amicably before
commencement of arbitration, provided that unless the Parties agree otherwise, such
dispute may be referred to arbitration subject to and in accordance with Article 27.4 on or
after the sixtieth day after the day on which notice of dispute or difference was given,
even if no attempt at amicable settlement has been made.

27.4 Arbitration.

a) Subject to Article 27.5, arbitration shall not be commenced until after the Certificate of
Acceptance of the Work has been issued.

b) All disputes and differences of whatsoever nature, whether existing or which shall at any
time arise between the parties hereto touching or concerning the agreement, meaning,
operation or effect thereof or to the rights and liabilities of the parties or arising out of or
in relation thereto whether during or after completion of the contract or whether before
after determination, foreclosure, termination or breach of the agreement (other than those
in respect of which the decision of any person is, by the contract, expressed to be final
and binding) shall, after written notice by either party to the agreement to the other of
them and to the Appointing Authority hereinafter mentioned, be referred for adjudication
to the Sole Arbitrator to be appointed as hereinafter provided.

c) The appointing authority shall either himself act as the Sole Arbitrator or nominate some
officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as owner

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or HPCL) or a retired officer of any other Government Company in the Oil Sector of the
rank of Ch. Manager & above or any retired officer of the Central Government not below
the rank of a Director, to act as the Sole Arbitrator to adjudicate the disputes and
differences between the parties. The contractor/vendor shall not be entitled to raise any
objection to the appointment of such person as the Sole Arbitrator on the ground that the
said person is/was an officer and/or shareholder of the owner, another Govt. Company or
the Central Government or that he/she has to deal or had dealt with the matter to which
the contract relates or that in the course of his/her duties, he/she has/had expressed views
on all or any of the matters in dispute or difference.

d) In the event of the Arbitrator to whom the matter is referred to, does not accept the
appointment, or is unable or unwilling to act or resigns or vacates his office for any
reasons whatsoever, the Appointing Authority aforesaid, shall nominate another person as
aforesaid, to act as the Sole Arbitrator.

e) Such another person nominated as the Sole Arbitrator shall be entitled to proceed with the
arbitration from the stage at which it was left by his predecessor. It is expressly agreed
between the parties that no person other than the Appointing Authority or a person
nominated by the Appointing Authority as aforesaid, shall act as an Arbitrator. The
failure on the part of the Appointing Authority to make an appointment on time shall only
give rise to a right to a Contractor to get such an appointment made and not to have any
other person appointed as the Sole Arbitrator.

f) The Award of the Sole Arbitrator shall be final and binding on the parties to the
Agreement.

g) The work under the Contract shall, however, continue during the Arbitration proceedings
and no payment due or payable to the concerned party shall be withheld (except to the
extent disputed) on account of initiation, commencement or pendency of such
proceedings.

h) The Arbitrator may give a composite or separate Award(s) in respect of each dispute or
difference referred to him and may also make interim award(s) if necessary.

i) The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by
the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The
lump sum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation contracts
and Rs. 60,000/- for engineering contracts and if the sole Arbitrator completes the
arbitration including his award within 5 months of accepting his appointment, he shall be
paid Rs. 10,000/- additionally as bonus. Reasonable actual expenses for stenographer, etc.
will be reimbursed. Fees shall be paid stage wise i.e. 25% on acceptance, 25% on
completion of pleadings/documentation, 25% on completion of arguments and balance on
receipt of award by the parties.

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j) Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or
any statutory modification or re-enactment thereof and the rules made there under, shall
apply to the Arbitration proceedings under this Clause.

k) The Contract shall be governed by and constructed according to the laws in force in
India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at
Mumbai for all purposes. The Arbitration shall be held at Mumbai and conducted in
English language.

l) The Appointing Authority is the Director Marketing of Hindustan Petroleum Corporation


Limited.

27.5 Interim Arbitration. Arbitration may commence prior to issue of the Certificate of
Acceptance of the Work in any of the following circumstances:

(a) Where a dispute or difference is finally settled pursuant to Article 27.3 either Party may,
if the other Party fails to comply with such settlement refer such failure itself to
Arbitration under Article 27.4,

(b) If the dispute or difference relates to the entitlement of the Consultant to issue of the
Certificate of Acceptance of the Work; or

(c) If this Contract is terminated.

Where a dispute or difference is finally settled pursuant to Article 27.3 either Party may,
if the other Party fails to comply with such settlement refer such failure itself to
Arbitration under Article 27.4, and such Arbitration may commence prior to the issue of
the Certificate of Acceptance of the Work.

27.6 Continuation of Work. Unless this Contract has already been terminated, Consultant
shall continue with the Work with all due diligence during the process of amicable
settlement and arbitration.

27.7 Resolution of dispute or differences between Indian Public Sector Enterprises/


Government Departments:
If the Consultant is a Public Sector Enterprise in India, the procedure detailed in Article
27.4 to 27.6, for resolution of dispute or differences between the Owner and Consultant,
shall stand amended as per the directions of the Government of India given in their
memorandum OM No. 15/9/86-BPE (FIN) dt. 30/03/1989, subject to both Owner &
Consultant remaining Public Sector Enterprises in India and the directions of
Government of India’s office memorandum OM No. 15/9/86-BPE (FIN) dt. 30/03/1989
given in this regard remaining effective the date of Owner’s Acceptance of Work.

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ARTICLE 28:
MISCELLANEOUS:

28.1 Independent Contractor. Consultant is an independent contractor under this Contract,


and shall have complete charge of all personnel performing any Work under this
Contract. Consultant shall perform all Work in accordance with its own methods and
shall be fully responsible for the Work performed by it or on its behalf hereunder in
accordance with the terms of this Contract. Consultant shall not be deemed an agent of
Owner for any purpose pursuant to this Contract.

28.2 Assignment. This Contract shall be binding upon and shall inure to the benefit of the
Parties and their respective successors-in-interest and duly permitted assigns.

28.2.1 Assignment by Owner. Owner may, without the consent of Consultant, assign the
benefit of this Contract, or any part thereof and any interest therein or there under, to an
Affiliate.

28.2.2 Assignment by Consultant. Subject to Article 28.2.3 Consultant may not assign the
benefit of this Contract or any interest therein or there under to any third party. Any such
purported assignment shall be null and void and of no force or effect whatsoever.

28.2.3 Assignment of Proceeds. Subject to Consultant giving prior written notice to Owner,
Consultant may enter into a charge, subject to the terms of this Contract, on any monies
due or to become due Consultant under this Contract in favor of its bankers or a third
party providing finance in respect of this Contract or assign to its bankers or any such
third party the right to receive, subject to the terms of this Contract, any monies due or to
become due under this Contract to Consultant.

28.3 Entire Contract; Modifications. This Contract constitutes the entire agreement
between Owner and Consultant concerning the subject matter hereof. All previous
documents, undertakings and agreements, whether oral or written, between the Parties
concerning the subject matter hereof are hereby cancelled and shall not affect or modify
any of the terms or obligations set forth in this Contract, except as the same may be made
part of this Contract in accordance with its terms. No modifications to this Contract shall
be made except by written agreement between the Parties, except as otherwise expressly
provided in this Contract.

28.4 Resolution of Inconsistencies. In the event of any inconsistency between any of the
Articles of this Contract, and any Exhibit to this Contract, the Articles of this Contract
shall prevail. Subject thereto, the provisions of this Contract shall be mutually
explanatory. If any inconsistency in this Contract shall become apparent, it shall be
resolved by Owner in writing in consultation with Consultant and in accordance with the
foregoing order of priority. Consultant shall immediately notify Owner of any
inconsistency which Consultant discovers. If Consultant continues to perform Work after

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discovering any inconsistency without notifying Owner, Consultant shall be responsible
for any consequences, including any necessary rectification or revision of the Work.

28.5 Waiver. The failure of either Party to insist upon strict adherence to any term of this
Contract on any occasion shall not be considered a waiver of any right thereafter to insist
upon strict adherence to that term or any other term of this Contract. Any waiver must be
made in writing.

28.6 Language. The official text of this Contract shall be in the English language. Except as
otherwise specifically provided to the contrary, all documents, advisements, notices,
waivers and all other communications, written or otherwise, between Owner and
Consultant in connection with this Contract shall be in the English language, and
Consultant shall ensure that all agreements and communications between Consultant and
Subcontractors and other consultants shall be in the English language.

28.7 Metric System. Except as otherwise may be provided in this Contract, all weights and
measures to be made hereunder, shall be expressed in the metric system, including,
without limitation, drawings, plans, specifications, designs, surveys, tenders,
advertisements, estimates, reports and all other documents and Work originated by
Consultant. Consultant shall require all Subcontractors' documents to be expressed in the
metric system.

28.8 Notices. All notices required to be given under this Contract by Owner to Consultant
shall be in writing and shall be addressed to Consultant at the address intimated, or at
such other address as it may from time to time notify, and all notices required to be given
under this Contract by Consultant to Owner shall be in writing and addressed to Owner at
the address intimated or at such other address as it may from time to time notify.

Notices shall be served by actual delivery, telex or facsimile transmission and shall be
deemed to be received, either when actually delivered or when actually received by
recipient's telex or facsimile machine. Confirmation of notices shall be sent by airmail.
A notice with respect to a change of address shall be effective only when actually
received.

28.9 Applicable Law. This Contract shall be governed by and construed in all respects in
accordance with the laws for the time being of India, without reference or regard to such
country's conflicts of law rules or provisions.

28.10 Severability. The validity of remaining Articles, provisions, terms and parts of this
Contract shall not be affected by a court, administrative board or other proceeding of
competent jurisdiction deciding that an Article, provision, term or part of this Contract is
illegal, unenforceable, in conflict with any law or contrary to public policy. In such event
the Parties shall, by amendment of this Contract, properly replace such provision by a
reasonable new provision or provisions which, as far as legally possible, shall
approximate what the Parties intended by such original provision and the purpose thereof.

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28.11 Counterparts. This Contract may be executed in one or more counterparts, each of
which when so executed shall be deemed an original, and such counterparts together,
shall constitute one and the same instrument.

28.12 Effectiveness of Contract. This Contract shall become effective, and the Parties shall
become bound by all conditions applicable to their conduct pursuant to this Contract, on
the date of acceptance of PO.

Unless and until this Contract becomes effective in accordance with this Article 28.12,
Owner shall incur no financial obligation of any nature whatsoever to Consultant under
this Contract.

28.13 Publications. Except as may be required by applicable law, no copy of this Contract
shall be released or otherwise delivered by or on behalf of Consultant to any unaffiliated
third party, and no announcement, statement or publication relating to this Contract, or
the Work, shall be publicly released by or on behalf of Consultant, without the prior
written approval of Owner. Consultant shall cause a provision similar to this Article
28.13 to be inserted in all of its subcontracts.

28.14 Survival of Contract Provisions. The following provisions of this Contract shall
expressly survive any termination of this Contract:

28.14.1 Article 7.3. Taxes and Duties.


28.14.2 Article 8.3 Retainage.
28.14.3 Article 12. General Warranties.
28.14.4 Article 14. Title.
28.14.5 Article 15. Proprietary Information; Computer Data;
Licenses and Inventions.
28.14.6 Article 20. Parent Company Guarantee.
28.14.7 Article 23. Insurance.
28.14.8 Article 24. Indemnification.
28.14.9 Article 25. Patent Indemnification.
28.14.10 Article 26. Accounting Records and Audit.
28.14.11 Article 27. Disputes.
28.14.12 Article 28.13. Publications.
28.14.13 Article 29. Limitations of Liability.

28.15 Set off. Notwithstanding any other provision hereof relating to rights of set off or
deduction, Owner may, but shall not be under any obligation, at any time, and from time
to time, to set off any and all sums due from Owner to Consultant against sums due to
Owner from Consultant hereunder. Consultant may not at any time set off sums payable
by it to Owner under this Contract.

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ARTICLE 29:
LIMITATIONS OF LIABILITY:

29.1 Consequential Damages. Neither Party shall be liable to the other Party for any indirect
or consequential damages in connection with or arising out of this Contract including, but
not limited to, loss of use, revenue or profit.

29.2 Benefit and Extent of Limitations. The provisions of this Article 29 shall be for the
benefit of the Parties and their respective officers, directors, employees and agents. The
limitations set forth in this Article 29 shall be without prejudice to any rights which
Owner may have against Subcontractors, manufacturers and other third parties, and any
recovery by Owner or Consultant against any Subcontractor, manufacturer or third party
shall not affect Consultant's obligations under this Contract.

SIGNATURES

Authorized signature of Owner Authorized signature of Consultant

Seal________________________ Seal________________________
(if any) in the presence of: (if any) in the presence of:

Name ______________________ Name ______________________

Signature ___________________ Signature ___________________

Address ____________________ Address_____________________

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CHAPTER-5
HSE GUIDELINES

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HEALTH, SAFETY & WELFARE PLAN
DURING CONSTRUCTION

List of Contents

Chapter A : Guidelines for Development of Construction HSE plan

Chapter B : Safety precaution recommended during Excavation and Scaffolding works


activities.

Chapter C : Essential checklist for most commonly hazards at Construction sites.

Chapter D : Golden rules to reduce risk at site.

Chapter E : HSE Passport- A Good practice guide

Chapter F : Important provision under -

The building and other construction workers (regulation of employment and


conditions of service) act, 1996

The building and other construction worker’s (regulation of employment and


conditions of service) central rules, 1998.

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Chapter A
Guidelines for Development of Construction HSE Plan

General

Not all information relating to the project may be available to fully develop the health and safety
plan before the start of construction. This could be because not all the design work may have
been completed or many of the subcontractors who will be carrying out the work have yet to be
appointed. However, site layout drawings covering the project at different stages, completed
design information and the pre-tender stage health and safety plan will be valuable in developing
the health and safety plan so that:

• The general framework is in place (including arrangements for welfare); and


• It deals with the key tasks during the initial work packages where design is complete.

For projects where a significant amount of design work will be prepared as construction
proceeds, specific arrangements for dealing with this work may need to be set out in the health
and safety plan. This is important to ensure that the health and safety aspects of the design work
are considered and dealt with properly by designers and the planning supervisor. This will
particularly occur under the various design and build and management contracting forms of
procurement.

The health and safety plan will need to be added to, reviewed and updated as the project
develops, further design work is completed, information from the subcontractors starting work
becomes available, unforeseen circumstances or variations to planned circumstances arise, etc.

What should the health and safety plan start with?


The health and safety plan can usefully open with:

• A description of the Project


• A general statement of health and safety principles and objectives for the project;

• Information about restrictions which may affect the work (eg, neighbouring buildings, utility
services, vehicular and pedestrian traffic flows and restrictions from the work activities of the
client).

What should be the role of contractor in HSE Plan:

Principal contractors shall co-ordinate and manage health and safety issues during the
construction work. One of the duties placed on the planning supervisor is to ensure that a pre-
tender stage health and safety plan is prepared before arrangements are made for the principal
contractor to carry out or manage construction work.

The principal contractor is then required to develop the health and safety plan before work starts
on site and keep it up to date throughout the construction phase. The degree of detail required in
the health and safety plan for the construction phase and the time and effort in preparing it

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should be in proportion to the nature, size and level of health and safety risks involved in the
project. Projects involving minimal risks will call for simple, straightforward plans. Large
projects or those involving significant risks will need more detail.

What should the health and safety plan cover for the construction phase?

The health and safety plan should set out the arrangements for securing the health and safety of
everyone carrying out the construction work and all others who may be affected by it.

It should deal with:


• The arrangements for the management of health and safety of the construction work;
• The monitoring systems for checking that the health and safety plan is being followed;
• Health and safety risks to those at work, and others, arising from the construction work, and
from other work in premises where construction work may be carried out.

What arrangements should be set out in the Health and Safety plan for managing and organizing
the Project?
These can include:

1: Management
• The management structure and responsibilities of the various members of the project team,
whether based at site or elsewhere; • Arrangements for the principal contractor to give
directions and to coordinate other contractors.

2: Standard setting
• The health and safety standards to which the project will be carried out. These may be set in
terms of statutory requirements or higher standards that the client may require in particular
circumstances.

3: Information for contractors


• Means for informing contractors about risks to their health and safety arising from the
environment in which the project is to be carried out and the construction work itself.

4: Selection procedures
The principal contractor has to make arrangements for ensuring that:
All contractors, the self-employed and designers to be appointed by the principal contractor
are:
• Competent and will make adequate provision for health and safety;
• Suppliers of materials to the principal contractor will provide adequate health and safety
information to support their products;
• Machinery and other plant supplied for common use will be properly selected, used and
maintained; and that operator training will be provided.

5: Communications and co-operation


• Means for communicating and passing information between the project team (including the
client and any client’s representatives) the designers, the planning supervisor, the principal

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contractor, other contractors, workers on site and others whose health and safety may be
affected;
• Arrangements for securing co-operation between contractors for health and safety purposes;
• Arrangements for management meetings and initiatives by which the health and safety
objectives of the project are to be achieved;
• Arrangements for dealing with design work carried out during the construction phase,
ensuring it complies with the duties on designers (CDM regulation 13) and resultant
information is passed to the appropriate person(s).

6: Activities with risks to Health and Safety Arrangements need to be made for the identification
and effective management of activities with risks to health and safety, by carrying out risk
assessments, incorporating those prepared by other contractors, and also safety method
statements which result. These activities may be specific to a particular trade (eg, false work)
or to site-wide issues, and may include:

• The storage and distribution of materials;


• The movement of vehicles on site, particularly as this affects pedestrian and vehicular safety;

• Control and disposal of waste;


• The provision and use of common means of access and places of work;
• The provision and use of common mechanical plant;
• The provision and use of temporary services (e.g. electricity);
• Temporary support structures (e.g. false work);
• Commissioning, including the use of permit-to-work systems;
• Protection from falling materials;
• Exclusion of unauthorised people.

Control measures to deal with these should be clearly set out, including protection of
members of the public.

7: Emergency procedures
• Emergency arrangements for dealing with and minimising the effects of injuries, fire and
other dangerous occurrences.

8 : Reporting of RIDDOR information


• Arrangements for passing information to the principal contractor about accidents, ill health
and dangerous occurrences that require to be notified to the Health and Safety Executive
(HSE), HQO

9: Welfare
• The arrangements for the provision and maintenance of welfare facilities.

10: Information and training for people on site


Arrangements need to be made by which the principal contractor will check that people on
site have been provided with:
• Health and safety information;

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• Health and safety training; and
• Information about the project (eg relevant parts of the health and safety plan);

Arrangements also need to be made for:


• Project specific awareness training;
• Tool-box or task health and safety talks;
• The display of statutory notices.

11: Consultation with people on site


Arrangements that have been made for consulting and co-ordinating the views of workers or
their representatives.

12: Site rules


Arrangements for making site rules and for bringing them to the attention of those affected.
The rules should be set out in the health and safety plan. There may be separate rules for
contractors, workers, visitors and other specific groups.

13: Health and safety file


• Arrangements for passing on information to the planning supervisor for the preparation of the
health and safety file.

14: Arrangements for monitoring


Arrangements should be set out for the monitoring systems to achieve compliance with:
• Legal requirements; and
• The health and safety rules developed by the principal contractor through regular planned
• Checks, and by carrying out investigations of incidents (whether causing injury, loss, or ‘near
miss’) and complaints.

This may involve:


Co-operation and regular meetings between senior management and those who provide
health and safety advice to them.

This may also involve monitoring of:

• Procedures, eg contractor selection and the management of certain trades;


• On-site standards actually achieved compared with those set for the Project;
• Reviews throughout the project, as different trades complete their work and at its conclusion.

This means that the lessons learnt in terms of the standards that were set and those actually
achieved can be taken forward.

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Chapter B
Safety precaution recommended during Excavation
and Scaffolding works activities

Excavation

Introduction:

Every year, people are killed or seriously injured when working in excavations. Excavation work
has to be properly planned, managed, supervised and carried out to prevent accidents. This
information sheet provides advice for those involved in excavation work.

Planning:

Before digging any excavations, it is important to plan against the following:

• Collapse of the sides;


• Materials falling onto people working in the excavation;
• People and vehicles falling into the excavation;
• People being struck by plant;
• Undermining nearby structures;
• Contact with underground services;
• Access to the excavation;
• Fumes; and
• Accidents to members of the public.
Make sure the necessary equipment needed such as trench sheets, props, baulks, etc, is available
on site before work starts.

Excavation collapse

• Prevent the sides and the ends from collapsing by battering them to a safe angle or supporting
them with timber, sheeting or proprietary support systems.
• Do not go into unsupported excavations.
• Never work ahead of the support.
• Remember that even work in shallow trenches can be dangerous. You may need to provide
support if the work involves bending or kneeling in the trench, material falling into excavations

• Do not store spoil or other materials close to the sides of excavations. The spoil may fall into
the excavation and the extra loading will make the sides more prone to collapse.
• Make sure the edges of the excavation are protected against falling materials. Provide toe
boards where necessary.
• Wear a hard hat when working in excavations. People and vehicles falling into excavations
• Take steps to prevent people falling into excavations. If the excavation is 2 m or more deep,
provide substantial barriers, eg guard rails and toe boards.
• Keep vehicles away from excavations wherever possible. Use brightly painted baulks or
barriers where necessary.

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• Where vehicles have to tip materials into excavations, use stop blocks to prevent them from
over-running.
• Remember that the sides of the excavation may need extra support. Undermining nearby
structures
• Make sure excavations do not affect the footings of scaffolds or the foundations of nearby
structures.
• Walls may have very shallow foundations which can be undermined by even small trenches.
• Decide if the structure needs temporary support before digging starts.
• Surveys of the foundations and the advice of a structural engineer may be needed.

Avoiding underground services


• Look around for obvious signs of underground services, eg valve covers or patching of the road
surface.
• Use locators to trace any services. Mark the ground accordingly.
• Make sure that the person supervising excavation work has service plans and knows how to use
them.
• Everyone carrying out the work should know about safe digging practices and emergency
procedures.

Access
• Provide good ladder access or other safe ways of getting in and out of the excavation.
Fumes
• Exhaust fumes can be dangerous. Do not site petrol or diesel-engined equipment such as
generators or compressors in, or near the edge of, an excavation unless fumes can be ducted
away or the area can be ventilated.

Protecting the public


• Fence off all excavations in public places to prevent pedestrians and vehicles falling into them.
• Where people might get onto a site out of hours, take precautions (eg backfilling or securely
covering excavations) to reduce the chance of them being injured.

Supervision
• A competent person must supervise the installation, alteration or removal of excavation
support.
• People working in excavations should be given clear instructions on how to work safely.

Inspecting excavations
• A competent person must inspect excavations:
-At the start of each shift before work begins;
-After any event likely to have affected the strength or stability of the excavation; and
- After any accidental fall of rock, earth or other material.
• A written report should be made after most inspections. Stop work if the Inspection shows the
excavation to be unsafe.

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Scaffolding

Introduction:

Falls from a height continue to be the biggest killer on construction sites. This information sheet
provides advice for users of ladders and access scaffolds. It will also help those who select and
specify equipment.

Work at height should be carried out from a platform with suitable edge protection. Occasionally
this may not be possible and a ladder may have to be used. However, ladders are best used as a
means of getting to a workplace and should only be used as a workplace for light work of short
duration.

Selecting equipment:

When deciding what equipment to use think about what the job includes, how long it will last
and where it needs to be done. It is tempting to use a ladder for all sorts of work but you should
always consider a working platform first, for example, a properly erected mobile scaffold tower
or a mobile elevated working platform (MEWP).

Jobs such as removing or installing guttering, installing replacement windows, painting or


demolition work should usually be carried out from scaffolds or mobile access equipment.

Scaffold erection

• A scaffold should be designed, erected, altered and dismantled by competent people, with all
scaffolding work under the supervision of a ‘competent person’.
• Scaffolders should always adopt a safe system of work during the erection, altering and
dismantling of scaffolds. This will usually include the use of fall arrest equipment.
• All scaffolds require bracing to help prevent them from collapsing. The platform of a general
purpose scaffold should be at least four boards wide. All scaffolds, including ‘independent’
scaffolds, should be securely tied, or otherwise supported. More ties will be required if:
-The scaffold is sheeted or netted due to the increased wind loading;
-It is used as a loading platform for materials or equipment; or
-Hoists, lifting appliances or rubbish chutes are attached to it.
• System scaffolds should be erected following the manufacturer’s instructions and may require
more tying than independent scaffolds.

Safe use of scaffolds


• Do not take up boards, move handrails or remove ties to gain access for work.
• Changes should only be made by a competent scaffolder.
• Never work from platforms that are not fully boarded.
• Do not overload scaffolds. Make sure they are designed to take the loads put on them. Spread
materials so the load is spread evenly.
• Make sure there is suitable stair and ladder access onto the working platform.

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Ladders

• Ladders should be in good condition and examined regularly for defects. You should have a
management system in place to ensure that this is done. They should be secured so they cannot
slip, usually by tying them at the top.
• The ladder should be angled to minimise the risk of slipping outwards and as a rule of thumb
needs to be ‘one out for every four up’.
• Access ladders should extend about 1 m above the working platform. This provides a handhold
for people getting on and off.
• Do not overreach: if you are working from a ladder, make sure it is long enough and positioned
to reach the work safely.
• Do not climb or work off a ladder unless you can hold onto it. Protecting the public:

• Contact the appropriate highway authority before erecting a scaffold on a public highway or on
any roads, pavements, paths or routes used by the public.
• Ensure the scaffold is designed to carry the load from stored materials and equipment.
• Scaffolds should be designed to prevent materials falling. You may need to provide brick
guards, netting or sheeting. Where the risk is high, or for example during demolition or facade
cleaning, you should provide extra protection in the form of scaffold fans or covered walkways.
• Erecting and dismantling scaffolds should preferably be undertaken during off times. People
should be prevented, with suitable barriers and signs, from walking under the scaffold during
erection or dismantling.
• Stop unauthorised access onto the scaffold, for example by removing all ladders at ground
level, whenever it is left unattended.
• Never ‘bomb’ materials from a scaffold. Use mechanical hoists or rubbish hutes to move
materials and waste.

Scaffold inspection
Scaffolds must be inspected by a competent person:
-before first use;
-after substantial alteration;
-after any event likely to have affected their stability, for example, following strong winds; and
-at regular intervals not exceeding seven days.
Any faults found must be put right before contractors allow their workers to use someone else’s
scaffold they must make sure it is safe.

The reports which have to be made following certain inspections. Those in control of workplaces
should ensure inspections are carried out by a competent person.

All employers and people in control of construction work should make sure that places of work
are safe before they allow their workers to use them for the first time.

Stop work if the inspection shows it is not safe to continue.

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Reports

The competent person must complete the inspection report before the end of the working period
and provide the report or a copy to the person for whom the inspection was carried out, within 24
hours.

Reports must be kept on site until the work is complete. Reports should then be kept for three
months at an office of the person for whom the inspections were carried out.

A report is only needed for a tower scaffold if it stays in the same place for seven days or more
and where an inspection of a working platform or any personal suspension equipment is carried
out before being used for the first time;
or –
after any substantial addition, dismantling or other alteration;

Only one report is needed for any 24-hour period; where an inspection of an excavation is carried
out and only one written report is needed in any seven day period unless something happens to
affect its strength or stability.

Your record must include the following information:

– Name and address of person on whose behalf the inspection was carried out;
– Location of the workplace inspected;
– Description of workplace or part of workplace
– Inspected (including any plant and equipment and materials, if any);
– Date and time of inspection;
– Details of any matter identified that could lead to a risk to the health and safety of anyone;
– Details of any action taken as a result of any matter identified in the last point;
– Details of any more action considered necessary; and
– The name and position of the person making the report.

Cement
Introduction
Cement is widely used in construction. Anyone who uses cement (or anything containing
cement, such as mortar, plaster and concrete) or is responsible for managing its use should be
aware that it presents a hazard to health.

Health effects
Cement can cause ill health mainly by skin contact, inhalation of dust; and manual handling.

Skin contact
Contact with wet cement can cause both dermatitis and burns.

Dermatitis
Skin affected by dermatitis feels itchy and sore, and looks red, scaly and cracked. Cement is
capable of causing dermatitis by two mechanisms - irritancy and allergy.

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Irritant dermatitis is caused by the physical properties of cement that irritate the skin
mechanically. The fine particles of cement, often mixed with sand or other aggregates to make
mortar or concrete, can abrade the skin and cause irritation resulting in dermatitis. With
treatment, irritant dermatitis will usually clear up. But if exposure continues over a longer period
the condition will get worse and the individual is then more susceptible to allergic dermatitis.

Allergic dermatitis is caused by sensitisation to the hexavalent chromium chromate) present in


cement. The way this works is quite distinct from that of irritancy. Sensitisers penetrate the
barrier layer of the skin and cause an allergic reaction. Hexavalent chromium is known to be the
most common cause of allergic dermatitis in men.

Research has shown that between 5%and 10%of construction workers may be sensitised to
cement and that plasterers, concreters and bricklayers are particularly at risk. Once someone has
become sensitised to hexavalent chromium, any future exposure may trigger dermatitis.

Some skilled tradesmen have been forced to change their trade because of this. The longer the
duration of skin contact with a sensitiser, the more it will penetrate the skin, and the greater the
risk of sensitisation will become.

Therefore, if cement is left on the skin throughout the working day, rather than being washed off
at intervals, the risk of contact sensitisation to hexavalent chromium will be increased. Both
irritant and allergic dermatitis can affect a person at the same time.

Cement burns

Wet cement can cause burns. The principal cause is thought to be the alkalinity of the wet
cement. If wet cement becomes trapped against the skin, for example by kneeling in it or if
cement falls into a boot or glove, a serious burn or ulcer can rapidly develop. These often take
months to heal, and in extreme cases will need skin grafts or can even lead to amputation.
Serious chemical burns to the eyes can also be caused following a splash of cement.

Inhalation of dust

High levels of dust can be produced when cement is handled, for example when emptying or
disposing of bags. In the short term, exposure to high levels of cement dust irritates the nose and
throat. Scabbling or concrete cutting can also produce high levels of dust which may contain
silica.

Manual handling

Working with cement also poses risks such as sprains and strains, particularly to the back, arms
and shoulders from lifting and carrying cement bags, mixing mortar etc. More serious damage to
the back can be caused in the long term if workers are continually lifting heavy weights.

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Health prevention and health surveillance

Skin contact

You should first consider using elimination or substitution to prevent the possibility of contact
with cement. Otherwise, you should apply control measures which minimise contact with the
skin either directly or indirectly from contaminated surfaces in the working environment.

An important way of controlling cement dermatitis is by washing the skin with warm water and
soap, or other skin cleanser, and drying the skin afterwards. Sinks should be large enough to
wash the forearms and have both hot and cold (or warm) running water. Soap and towels should
be provided. Facilities for
drying clothes and changing clothes should also be available.

Gloves may help to protect skin from cement, but they may not be suitable for all aspects of
construction site work. Caution is advised when using gloves as cement trapped against the skin
inside the glove can cause a cement burn. You should provide protective clothing, including
overalls with long sleeves and long trousers. Employers are required to arrange for employees to
receive suitable health surveillance where there is exposure to a substance known to be
associated with skin disease and where there is a reasonable likelihood that the disease may
occur. This means you should provide health surveillance for
workers who will be working with wet cement on a regular basis.

Health surveillance is needed to protect individuals and identify as early as possible any
indicators of skin changes related to exposure, so that steps can be taken to treat their condition
and to advise them about the future and give early warning of lapses in control.

Health surveillance must never be regarded as reducing the need to control exposure or to wash
cement off the skin.

Simple health surveillance will usually be sufficient. Skin inspections should be done at regular
intervals by a competent person, and the results recorded. Employers will probably need the help
of an occupational health nurse or doctor to devise a suitable health surveillance regime and they
will need to train a ‘responsible person’, for instance a supervisor, to carry out the skin
inspections.

A responsible person is someone appointed by the employer who, following instruction from an
occupational health physician or nurse, is competent to recognise the signs and symptoms of
cement-related dermatitis. The responsible person should report an findings to the employer, and
will need refer cases to a suitably qualified person (eg an occupational health nurse).

Inhalation of dust

Exposure to dust should be eliminated where possible, for example, by purchasing ready mixed
concrete. Where this is not possible, the risk should be assessed and appropriate control measures
implemented.

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Manual handling

Manual handling of heavy loads should be avoided. In particular, cement should be supplied in
25 kg bags or ordered in bulk supply. Where manual handling does take place, you should assess
the risks and adopt appropriate risk control measures.

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Chapter C
Essential checklist for most commonly hazards at Construction sites

General Safety Guidelines:

When we employ or control people doing work for us, directly or thru a contract, we must ensure
that:

• Workers & Supervisors should use the safety helmet and other requisite Personal Protective
Equipment according to job & site requirement. They should be trained to use personal
protective equipment.
• Ensure the usage of correct and tested tools and tackles. Don't allow the make shift tools and
tackles.
• No loose clothing should be allowed while working near rotating equipment or working at
heights.
• Ensure that workers are trained and competent to do the job safely and without putting their
health at risk.
• Ensure that workers are informed about the work before they start and they are given clear
instructions by supervisors.
• Ensure that workers have the right tools, equipment, plant and protective clothing.
• Areas which are likely to pose danger to workers are clearly indicated.
• Check the health and past safety performance of the people we plan to use.
• Give them the health and safety information they need for the work.
• Ensure that workers have access to washing and toilet facilities.
• Make sure that you have provided everything you agreed e.g. safe scaffolds, the right plant,
access to welfare, etc.

Essential Checklist:

The following will provide an essential checklist of some of the most common hazards which are
found at construction sites.

The questionnaire will help to decide whether the site is a safe and healthy place to work. Please
note that this is not a full list.

1. Housekeeping
• Ensure proper storage of materials & equipment at work place and removal of scrap,
inflammable material, waste and debris etc. from site at appropriate intervals to ensure proper
house-keeping.
• Loose materials, which are not required for use, to be removed from work place.
• Workplaces and passageways, that are slippery owing to oil, grease or other causes, should be
cleaned up or strewn with sand, sawdust, ash etc.

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2. Excavation
• All excavation work should be planned and the method of excavation and the type of support
work required should be decided considering the stability of the ground and ensuring that the
excavation will not affect adjoining buildings, structures or roadways.
• Sites of excavations should be thoroughly inspected on daily basis, prior to each shift and after
interruption in work of more than one day, after every blasting operation, after an unexpected fall
of ground, after substantial damage to supports, after a heavy rain, frost or snow, and boulder
formations are encountered.
• Safe angle of repose while excavating trenches, based on site conditions, to be provided of
excavation in all soils except hard rock or provide proper shoring and strutting to prevent cave-in
or slides.
• As far as possible, excavated earth should not be placed within one meter of the edge of the
trench or depth of trench whichever is greater.
• Don't allow vehicles to operate too close to excavated area. Maintain proper distance from edge
of excavation. No load, plant or equipment should be placed or moved near the edge of any
excavation where it is likely to cause its collapse and thereby endanger any person unless
precautions such as the provision of shoring or piling are taken to prevent the sides from
collapsing.
• If any excavation is likely to affect the stability of a structure on which persons are working,
precautions should be taken to protect the structure from collapse.
• Necessary precautions should be taken for underground utility lines like cables, sewers etc. and
necessary approvals/clearances from the concerned authorities shall be obtained before
commencement of the excavation job.
• During rains, the soil becomes loose. Take additional precaution against collapse of side wall.
• In case of mechanized excavation, precaution shall be taken to not to allow anybody to come
near the extreme reach of the mechanical shovel. The mechanized excavator shall be operated by
a well-trained experienced operator. The excavator should be kept on firm leveled ground with
mechanical shovel resting on ground, when not in use. Suitable precautions should also be taken
for dozers, graders and other heavy machines, as per manufacturer guidelines

3. Scaffolding
• Every scaffold should be constructed, erected and maintained so as to prevent collapse or
accidental displacement when in use. • All scaffolds should be provided with safe means of
access, such as stairs, ladders or ramps. Ladders should be secured against inadvertent
movement.
• Boards and planks used for scaffolds should be protected against splitting. Materials used in the
construction of scaffolds should be stored under good conditions and apart from any material
unsuitable for scaffolds.
• Scaffolds should be inspected and certified before being taken into use, at periodic intervals
thereafter as prescribed for different types of scaffolds and after any alteration, interruption in
use, exposure to weather or seismic conditions or any other occurrence likely to have affected
their strength or stability.
• Every scaffold should be maintained in good and proper condition, and every part should be
kept fixed or secured so that no part can be displaced in consequence of normal use.
• Double guard rails and toe boards, or other suitable protection should be provided at every edge
to prevent falling.

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• Additional brick guards should be provided to prevent materials falling from scaffolds.
• Effective barriers or warning notices should be kept in place to stop people using an incomplete
scaffold, e.g. where working platforms are not fully boarded.

4. Reinforcement
• Ensure that workers use Personnel Protective equipment like safety helmet, safety shoes, gloves
etc.
• Ensure proper safety procedures/precautions to carry out welding/cutting of reinforcement steel
rods.
• For supplying of rods at heights, proper staging and/or bundling to be provided.
• Ensure barricading and staging for supplying and fixing of rods at height.
• For short distance carrying of materials on shoulders, suitable pads to be provided.

5. Concreting
• Ensure stability of shuttering work before allowing concreting.
• Barricade the concreting area while pouring at height/depths.
• Keep vibrator hoses, pumping concrete accessories in healthy conditions and mechanically
locked.
• Pipelines in concrete pumping system shall not be attached to temporary structures such as
scaffolds and formwork support as the forces and movements may affect their integrity.
• Check safety cages & guards around moving motors/parts etc. provided in concreting mixers.
• Use Personal Protective Equipment like gloves, safety shoes etc. while dealing with concrete
and wear respirators for dealing with cement.
• Earthing of electrical mixers, vibrators, etc. should be done and verified.
• Cleaning of rotating drums of concrete mixers shall be done from outside. Lockout devices
shall be provided where workers need to enter.
• Where concrete mixers are driven by internal combustion engine, exhaust points shall be
located away from the worker's workstation so as to eliminate their exposure to obnoxious
fumes.
• Ensure adequate lighting arrangements for carrying out concrete work during night.
• Don't allow the workers to work on concrete job for more than 12 hours. Insist on shift pattern.
• During concrete pouring, shuttering and its supports should be continuously watched for
defects.

6. Road work
• Site shall be barricaded and provided with warning signs, including night warning lamps at
appropriate locations for traffic diversion, if any.
• Filled and empty bitumen drums shall be stacked separately at designated places.
• Mixing aggregate with bitumen shall preferably be done with the help of bitumen batch mixing
plant, unless operationally non-feasible.
• Workers handling hot bitumen sprayers or spreading bitumen aggregate mix or mixing bitumen
with aggregate, shall be provided with PVC hand gloves and rubber shoes with legging up to
knee joints.
• If bitumen accidentally falls on ground, it shall be immediately covered by sprinkling sand, to
prevent anybody stepping on it. Then it shall be removed with the help of spade.

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• For cement concrete roads, besides site barricading and installation of warning signs for traffic
diversion, safe practices mentioned in the chapter on "Concreting", shall also be applicable.

7. Cutting / Welding
Common hazards involved in welding/cutting are sparks, molten metal, flying particles, harmful
light rays, electric shocks etc. Following precautions should be taken while doing job of cutting
and welding:

• Ensure that only approved and well-maintained apparatus, such as torches, manifolds,
regulators or pressure reducing valves, and acetylene generators, be used.
• The welding receptacles shall be rated for 63 A suitable for 415V, 3-Phase system with a
scraping earth. Receptacles shall have necessary mechanical interlocks and earthing facilities.
• All covers and panels shall be kept in place, when operating an electric Arc welding machine.
• All cables, including welding and ground cables, shall be checked for any worn out or cracked
insulation before starting the job. Ground cable should be separate without any loose joints.
• All gas cylinders shall be properly secured in upright position.
• Acetylene cylinder shall be turned and kept in such a way that the valve outlet points away
from oxygen cylinder.
• Acetylene cylinder key for opening valve shall be kept on valve stem, while cylinder is in use,
so that the acetylene cylinder could be quickly turned off in case of emergency. Use flash back
arrestors to prevent backfire in acetylene/oxygen cylinder.
• When not in use, valves of all cylinders shall be kept closed. All types of cylinders, whether
full or empty, shall be stored at cool, dry place under shed.
• Store acetylene and oxygen cylinders separately.
• Ensure that hoses are free from burns, cuts and cracks and properly clamped.
• During cutting/welding, use proper type goggles/face shields and fire extinguishers.

8. Ladders
• Ensure that ladders are in good condition and rest against a solid surface and not on fragile or
insecure materials.
• Ensure that ladders are secured to prevent them slipping sideways or outwards.
• Ensure that ladders rise a sufficient height above their landing place? If not, make sure that
other hand-holds available.
• Ensure that the ladders are properly positioned so that users don’t have to over-stretch.
• On average approx. 24 % of total construction accidents 24 % accounts towards falls and a
third of those who died were painters and decorators. A construction worker was killed when he
fell from an unsecured ladder while trying to climb onto a flat garage roof.

9. Roof work
• During industrial roofing work ensure that nets have been provided to stop people falling from
the leading edge of the roof and from partially fixed sheets.
• When work is being carried out on sloping roofs, sufficient and suitable crawling boards or roof
ladders should be provided and firmly secured in position.
• During extensive work on the roof, strong barriers or guardrails and toe-boards should be
provided to stop a person from falling off the roof.

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• Where workers are required to work on or near roofs or other places covered with fragile
material, through which they are liable to fall, they should be provided with suitable roof ladders
or crawling boards strong enough and when spanning across the supports for the roof covering to
support those workers.
• A minimum of two boards should be provided so that it is not necessary for a person to stand
on a fragile roof to move a board or a ladder, or for any other reason.
• Ensure that people are kept away from the area below the roof work.
• Over 50% of fatal injuries to roofers are falls through fragile materials and over 30% are falls
from edges and openings. A roofer was killed when he fell through an unprotected fragile roof
light while stripping and re-sheeting an industrial pitched

10. Manual Handling


• If there are heavy materials such as roof trusses, concrete lintels, kerb stones or bagged
products which could cause problems if they have to be moved by hand, ensure to use
wheelbarrows, hoists, tele-handlers, and other plant or equipment so that manual lifting of heavy
objects is kept to a minimum.
• Avoid the repetitive laying of heavy building blocks weighing more than 20 kg and train people
on how to lift safely.

11. Demolition
• Structural details and builders' drawings should be obtained wherever possible, before
demolition operations begin and the work should be planned and undertaken only under the
supervision of a competent person.
• Details of the previous use should be obtained to identify any possible contamination and
hazards from chemicals, flammables, etc.
• Necessary precautions, methods and procedures should be adopted, including those for the
disposal of waste or residues, when the demolition of any building or structure may pose danger
to workers or to the public.
• Any structural problems and risks associated with flammable substances and substances
hazardous to health to be identified and a method of demolition should be formulated after the
survey and recorded in a method statement having taken all the various considerations into
account and identifying the problems and their solutions;
• As far as practicable, the danger zone round the building should be adequately fenced off and
sign posted. To protect the public a fence should be erected enclosing the demolition operations
and the access gates should be secured outside working hours.
• Where plant has contained flammable materials, special precautions should be taken to avoid
fire and explosion.
• The plant to be demolished should be isolated from all other plant that may contain flammable
materials. Any residual flammable material in the plant should be rendered safe by cleaning,
purging or the application of an inert atmosphere as appropriate.
• Care should be taken not to demolish any parts, which would destroy the stability of other
parts.
• Structures should not be left in a condition in which they could be brought down by wind
pressure or vibration.

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• When equipment such as power shovels and bulldozers are used for demolition, due
consideration should be given to the nature of the building or structure, its dimensions, as well as
to the power of the equipment being used.
• All precautions should be taken to prevent danger from any sudden twist, spring or collapse of
steelwork, ironwork or reinforced concrete when it is cut or released.

12. Traffic, Vehicles and Plant


• An experienced ground worker was crushed and killed by a slewing 360 excavator as it moved
into position. He tried to pass between the machine and a trench box.
• A person was struck and killed by a van reversing at a road works site. The turning area in the
site was blocked by parked cars and the driver reversed without assistance.
• Ensure that vehicles and plant are properly maintained, e.g. steering, lights, handbrake and
footbrake are working properly.
• Ensure that drivers have received proper training and they are competent for the vehicles or
plant they are operating.
• All loads should be properly secured and also make sure that plant and vehicles are not used on
dangerous slopes.

13. Tools and Machinery


• Ensure that the right tools or machinery are being used for the job and all dangerous parts are
guarded, e.g. gears, chain drives, projecting engine shafts.
• All tools and machinery should be maintained in good condition and all safety devices to be
ensure for operating correctly.

14. Emergencies
• Ensure that workers at site are aware of the procedures for evacuating the site in case of any
emergency at work place.
• Nos. of contacting the emergency services shall be displayed at site?
• Provision of first aid shall be ensure at site.

15. Hazardous substances


• All harmful substances and materials, such as asbestos, lead, solvents, paints, cement and dust
should be identified at work place.
• Workers should the information and training so they know what the risksare from the
hazardous substances used and produced on site, and what they need to do to avoid those risks.
• Health surveillance for people using certain hazardous substances (eg lead) should be arranged.

16. Noise
• Workers should have information and training so they know what the risks are from noise on
site, and what they need to do to avoid those risks.
• Suitable hearing protection should be provided and worn in noisy areas.
• Health surveillance for people exposed to high levels of noise should be arranged.

17. Hand –Arm Vibration


• Workers should have information and training so they know what the risks are from hand-arm
vibration (HAV) on site, and what they need to do to avoid those risks.

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• Risks to workers from prolonged use of vibrating tools such as concrete breakers, angle
grinders or hammer drills should be identified and assessed.
• Health surveillance for people exposed to high levels of hand-arm vibration, especially when
exposed for long periods should be arranged.

18. Electricity and other services


• All tools and equipment should be checked by users, visually examined on site and regularly
inspected and tested by a competent person.
• All necessary services should be provided at work place before work begins and existing
services present on site shall be identified (e.g. electric cables or gas mains) and effective steps
should be taken to prevent any danger from them, if necessary.
• Low voltage tools and equipment should be used for work.

19. Welfare:
• Ensure the availability of toilets and that are they kept clean & properly lit.
• Place to change, dry and store clothing should be arranged near work place for workers.
• Drinking water facility should be provided for the workers at work place.
• A place shall be identified where workers can sit and take rest during their recess hours.

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Chapter D
Golden rules to reduce risk at site

Construction is a high-risk activity. This chapter covers the ‘5 Golden rules’ that will help you
keep safe and healthy.

Remember to:

 Plan and organize what you do


 Make sure you’re trained and competent and know the special risks in your trade
 Raise problems with your supervisor or safety representative.

Rule # 1: THE BASICS

Tidy sites and decent welfare

Tidy sites and decent welfare are the basics of a good site. Slips and trips are the most common
cause of injuries at work.

An untidy site is a poorly managed site.

All sites need decent welfare facilities. The minimum welfare requirements are:

 Clean toilets
 Running hot and cold water with soap and towels
 Basins large enough to immerse your arms up to the elbows
 Drinking water
 Somewhere warm, dry and clean to sit and eat

Poor welfare facilities can lead to ill health

Rule # 2: PROTECTION TO AVOID FALLS FROM HEIGHT

Falls from height are the biggest cause of fatal and serious injuries in construction. They account
for 50% of all deaths. Many accidents involve falls from roofs, through fragile materials, from
ladders and from leading edges.

Generally, make sure you:

 Work from a safe and secure place or platform with proper edge protection
 Use scaffolds and scaffold towers that are competently erected
 Use powered access equipment safely
 Protect holes and leading edges, e.g. with guardrails and toe boards

When working on roofs never:

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 Work in poor weather
 Work on sloping roofs without edge protection
 Throw down waste or equipment

Take care when working on or near fragile material - you can fall through as well as off it.

Ladders:

.Only use ladders for light work of short duration if there’s no safer alternative .Angle and secure
them to prevent slipping (1 out for 4up) .Always make sure ladders are properly maintained

Never over-reach

Rule # 3: PROPER MANUAL HANDLING

Manual handling injuries from working with heavy, awkward materials, often in wet conditions,
are one of the most common reasons why workers leave construction. Injuries are made worse by
repetitive jobs, such as laying heavy blocks.

 Use mechanical means, e.g. hoists, teleporters and chutes


 Choose equipment suitable for the job and keep it maintained
 Change to lighter materials, bags etc.
 Avoid repetitive handling
 Avoid awkward movements

Protect yourself and reduce the strain

Rule # 4: PROPER TRANSPORT ARRANGEMENTS

Workplace transport incidents are the second most common cause of fatalities after falls from
height.
 Use barriers and warning signs to separate vehicles and people
 Create clearance around slewing vehicles
 Avoid reversing – where you can’t, use trained banks men
 Make sure loads are secure
 Don’t use plant and vehicles on dangerous slopes
 Only take passengers on vehicles designed to take them
 Make sure vehicles are maintained and operators are trained

When people and vehicles collide, people come off worse - so keep them
apart!

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Rule # 5: PRECUATION WHILE WORKING ON ASBESTOS

If you’re thinking of working in a building that was built or renovated up until the 1980s, you
should assume it contains asbestos until proved otherwise.

The main asbestos-containing materials (ACMs) are lagging, asbestos insulating board, sprayed
insulation, decorative coatings and asbestos cement.

 Check if there is any ACM


 Find out what you need to do to work safely

If in any doubt, leave it to the experts!

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Chapter E
HSE Passport - A Good practice guide

This chapter on good practice guide describes that what a HSE Passport scheme is and also
answers to some basic information about it and gives advice on good practice including a
suggested core syllabus.

HSE Passport scheme ensure that workers have basic health and safety awareness training and
are a way of improving health and safety performance. They also help promote good practice and
can help reduce accidents and ill health caused by work. They are especially useful for workers
and contractors who work in more than one industry or firm.

What are health, safety and environment Passports?

 HSE Passport shows that a worker has up-to-date basic health and safety or health,
safety and environment awareness training. Some cover other subjects too.
 HSE Passports are a way of controlling access to work sites – only workers with valid
Passports are allowed to work.

 They shall be of credit card size and made of strong plastic with a photograph and
signature.

 Workers can hold more than one HSE Passport if they have been trained for work in
more than one industry.

 They are a very simple way for workers who move from one industry to another, or
work in more than one industry, to show employers they have basic training.

 A HSE Passport belongs to the worker not the employer.

 Some Certification Schemes operate like Passports.

 HSE Passport is a starting point for workers training for health, safety and environment
qualifications.

What should HSE Passport training cover?

A HSE Passport holder should know about:

 The hazards and risks they may face;

The hazards or risks they can cause for other people;


.. How to identify relevant hazards and potential risks;
.. How to assess what to do to eliminate the hazard and control the risk;
.. How to take steps to control the risk to themselves and others;
.. Their safety and environmental responsibilities, and those of the people they work with;

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.. Where to find any extra information they need to do their job safely; and
.. How to follow a safe system of work.

How HSE Passport scheme will work?

An industry or group of companies decide they want a way of ensuring that their employees and
any suppliers, contractors, self-employed or agency workers they use have basic health, safety
and environment training.

They need to decide or consider that:


.. What training is needed for workers;
.. Qualifications and resources needed by trainers;
.. How training will be delivered and assessed;
.. How long a Passport will be valid for;
.. Need for refresher training before renewal; and
.. How records will be kept and checked.
.. A training scheme is developed, piloted and fine-tuned.
.. Courses are offered to workers. It is important to check that training has been successful, so
workers must pass a test or an assessment must be made before a HSE Passport is issued.

Once the scheme starts, the industry or group of companies will not allow workers on their sites
unless they hold an up-to-date and valid HSE Passport.

Large firms often have their own ‘approved’ list of contractors. To join this list, contractors may
have to demonstrate their health, safety and environmental performance. Having workers with
Passports is one way to do this.

HSE Passports shall not be:

.. A way of knowing or identifying that a worker is competent;


.. A substitute for risk assessment;
.. A way of showing ‘approval’ of a contractor;
.. A reason to ignore giving site-specific information; or
.. A substitute for effective on-site management.

Benefits and advantages of Passport schemes

.. They can help reduce accidents and ill health caused by work.
.. They can have a significant impact in reducing pollution incidents, minimizing waste and
contributing to a cleaner environment for everyone.
.. Passports save both time and money because workers need less induction training.
.. They show a company’s commitment to having safe and healthy workers.
.. Companies know that workers have been trained to a common, recognized and validated
standard.
.. They help to promote good practice in the supply chain between contractors and companies.

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.. Insurance and liability premiums may be reduced if a company can show that all workers have
basic health, safety and environment training.
.. Workers are more employable as they have basic training.

Can a Passport be withdrawn?

Passports are not a way of showing a worker is competent – they only show that a worker has
basic training, so if a worker is found doing something wrong, the Passport is unlikely to be
withdrawn. But, for example, a Passport would be withdrawn if it was found to have false
information or was being misused.

Training arrangements

The length of training depends on how much needs to be covered. In some schemes half a day
may be enough but other courses take longer. Some courses mix the core syllabus with training
for the hazards in a specific industry and others separate the two. It is usual for supervisors to
have extra training. All courses end with some form of assessment. This can be a multiple-choice
questionnaire, a written test or one which involves a computer. In some schemes training is
provided by external trainers and in others it is done in-house.

Refresher training

Passports shall be normally valid for a period of three years. It is usual for a worker to be given
refresher training before a Passport is re-validated.

Recognition between different schemes

HSE is encouraging organizations to work together so that one scheme recognizes the core
training of other schemes. This means that Passport holders do not have to repeat the core
syllabus if they move from one employer or contract to another, they will simply need site
specific training. If they stay in the same industry they may not need to have further sector
specific training. By producing a suggested core syllabus, HSE and the Environment Agencies
hope to encourage more mutual recognition. In some schemes arrangements have been made to
recognize any Passport which meets 80% of the suggested core syllabus and which has been
issued within the last two years.

Monitoring

It is important that contractors’ supervisors monitor Passport holders on a day-today basis by:

.. Asking people about their work;

.. Checking whether people are following procedures; and

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.. Observing their work.

Any site-based checking system needs to be easy for supervisors to use, for example, one which
uses cards should include photographs and signatures. The standard of training provided also
needs to be monitored by clients but most organizations running Passport schemes have quality
assurance arrangements.

Core syllabus

Passport schemes should ideally have a common core syllabus, so that :


Passport holders won’t have to repeat core training if they move from one employer or contract
to another; and Duplicated effort and cost are reduced.

Effective HSE Passport training schemes would be expected to cover elements of the core
syllabus below.

Health and Safety core syllabus

• Introduction to Passports and their purpose


• Overview of key health and safety issues
• Responsibilities and lines of communication of employers, contractors and individuals
• Overview of risk assessment
• The role of safety representatives and health and safety inspectors
• The workplace: Safe access and exits safety signs
• Temperature, lighting, housekeeping and welfare facilities
• Slips, trips and falls
• Reporting failures and defects
• Working at heights and falls from heights
• Plant and machinery
• Electricity
• Workplace transport
• Health
• Personal protective equipment
• Controlling harmful substances

• Manual handling
• Health surveillance or monitoring (if appropriate)
• Safe systems of work, including permit to work systems
• Emergency procedures
• Fire safety & First aid
• Reporting accidents and incidents
Environment core syllabus

• Responsibilities of employers and employees


• Environmental concerns in the workplace

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• Causes of on and off site pollution
• How to prevent pollution
• Emergencies
• Emergency planning
• Emergency procedures including the use of oil absorbents
• Waste Management regulations
• Waste segregation and minimization
• Safe and secure storage

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Chapter -F

THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION


OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996

SAFETY AND HEALTH MEASURES

38. Safety Committee and safety officers.-

(1) In every establishment wherein five hundred or more building workers are ordinarily
employed, the employer shall constitute a Safety Committee consisting of such number of
representatives of the employer and the building workers as may be prescribed by the State
Government:
Provided that the number of persons representing the workers shall, in no case, be less than the
persons representing the employer.

(2) In every establishment referred to in sub-section (1), the employer shall also appoint a safety
officer who shall possess such qualifications and perform such duties as may be prescribed.

39. Notice of certain accidents.-

(1) Where in any establishment an accident occurs which causes death or which causes any
bodily injury by reason of which the person injured is prevented from working for a period of
forty-eight hours or more immediately following the accident, or which is of such a nature as
may be prescribed, the employer shall give notice thereof to such authority, in such form and
within such time as may be prescribed.

(2) On receipt of a notice under sub-section (1) the authority referred to in that sub-section may
make such investigation or inquiry as it considers necessary.

(3) Where a notice given under sub-section (1) relates to an accident causing death of five or
more persons, the authority shall make an inquiry into such accident within one month of the
receipt of the notice.

40. Power of appropriate Government to make rules for the safety and health of building
workers.-

(1) The appropriate Government may, by notification, make rules regarding the measures to be
taken for the safety and health of building workers in the course of their employment and the
equipment and appliances necessary to be provided to them for ensuring their safety, health and
protection, during such employment.

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(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters namely:

(a) the safe means of access to, and the safety of, any working place, including the provision of
suitable and sufficient scaffolding at various stages when work cannot be safety done from the
ground or from any part of a building or from a ladder or such other means of support;

(b) the precautions to be taken in connection with the demolition of the whole or any substantial
part of a building or other structure under the supervision of a competent person and the
avoidance of danger from collapse of any building or other structure while removing any part of
the framed building or other structure by shoring by otherwise;

(c) the handling or use of explosive under the control of competent persons so that there is no
exposure to the risk of injury from explosion or from flying material;

(d) the erection, installation, use and maintenance of transporting equipment, such as
locomotives, trucks, wagons and other vehicles and trailers and appointment of competent
persons to drive or operate such equipment;

(e) the erection, installation, use and maintenance of hoists, lifting appliances and lifting gear
including periodical testing and examination and heat treatment, where necessary, precautions to
be taken while raising or lowering loads restrictions on carriage of persons and appointment of
competent persons on hoists or other lifting appliances;

(f) the adequate and suitable lighting of every workplace and approach thereto, of every place
where raising or lowering operations with the use of hoists, lifting appliances or lifting gears are
in progress and of all openings dangerous to building workers employed;

(g) the precautions to be taken to prevent inhalation of dust, fumes, gases or vapors during any
grinding, cleaning, spraying or manipulation of any material and steps to be taken to secure and
maintain adequate ventilation of every working place or confined space;

(h) the measures to be taken during stacking or un-stacking, stowing or un-stowing of materials
or goods or handling in connection therewith;

(i) the safeguarding of machinery including the fencing of every fly-wheel and every modifying
part of a prime mover and every part of transmission or other machinery, unless it is such a
position or of such construction as to be safe to every worker working on any of the operations
and as if it were securely fenced;

(j) the safe handling and use of plant, including tools and equipment operated by compressed air;

(k) the precaution to be taken in case of fire;

(l) the limits of weight to be lifted or moved by workers;

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(m) the safe transport of workers to or from any workplace by water and provision of means for
rescue from drowning;

(n) the steps to be taken to prevent danger to workers from live electric wires or apparatus
including electrical machinery and tools and from overhead wires;

(o) the keeping of safety nets, safety sheets and safety belts where the special nature or the
circumstances of work render them necessary for the safety of the workers;

(p) the standards to be complied with regard to scaffolding, ladders and stairs, lifting appliances,
ropes, chains and accessories, earth moving equipment and floating operational equipment;

(q) the precautions to be taken with regard to pile driving, concrete work, work with hot asphalt,
tar or other similar things, insulation work, demolition operations, excavation, underground
construction and handling materials;

(r) the safety policy, that is to say, a policy relating to steps to be taken to ensure the safety and
health of the building workers, the administrative arrangements therefor and the matters
connected therewith, to be framed by the employers and contractors for the operations to be
carried on in a building or other construction work;

(s) the information to be furnished to the Bureau of Indian Standards established under the
Bureau of Indian Standards Act, 1986 (63 of 1986), regarding the use of any article or process
covered under that Act in a building or other construction work;

(t) the provision and maintenance of medical facilities for building workers;

(u) any other matter concerning the safety and health of workers working in any

(v) of the operations being carried on in a building or other construction work.

41. Framing of model rules for safety measures.-

The Central Government may, after considering the recommendation of the expert committee
constituted under section 5, frame model rules in respect of all or any of the matters specified in
section 40 and where any such model rules have been framed in respect of any such matter, the
appropriate Government shall, while making any rules in respect of that matter under section 40,
so far as is practicable, conform to such model rules.

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2. THE BUILDING AND OTHER CONSTRUCTION WORKER’S
(REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE)
CENTRAL RULES, 1998.

GENERAL PROVISIONS

34. Excessive noise, vibration, etc.- An employer shall ensure at a construction site of a building
or other construction work that adequate measures are taken to protect building workers against
the harmful effects of excessive noise or vibration at such construction site and the noise level in
no case exceeds the limits laid down in Schedule VI annexed to these rules.

35. Fire protection.- An employer shall ensure at a construction site of a building or other
construction work that,-

(a) such construction site is provided with


(i) fire extinguishing equipment sufficient to extinguish any probable fire at such construction
site;
(ii) an adequate water supply at ample pressure as per national standards;
(iii) number of tamed persons required to operate the fire extinguishing equipment provided
under sub-clause (i);

(b) fire extinguishing equipment provided under sub-clause (i) of clause (a) is properly
maintained and inspected at regular intervals of not less than once in a year by the responsible
person and a record of such inspections is maintained;

(c) in case of every launch or boat or other craft used for transport of building workers and thee
cabin of every lifting appliance including mobile crane adequate number of portable fire
extinguishing equipment of suitable type shall be provided at each of such launch or boat o craft
or lifting appliance.

36. Emergency action plans.-

An employer shall ensure at a construction site of a building or other construction work that in
case more than five hundred building workers are employed at such construction site emergency
action plan to handle the emergencies like-
(a) Fire and explosion,
(b) Collapse of lifting appliances and transport equipment,
(c) Collapse of building, sheds or structures etc.,
(d) Gas leakage or spillage of dangerous goods or chemicals,
(e) Drowning of building workers, sinking of vessels, and
(f) landslides getting building worker buried, floods, storms and other nature
Calamities, is prepared and submitted for the approval of the Director General.

37. Fencing of motors, etc.-


An employer shall ensure at a construction site of a building or other construction works that.

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(a) All motors cogwheels, chains and friction gearing, flywheels, shafting, dangerous and
moving parts of machinery (whether or not driven by mechanical power) and steam pipes are
securely fenced or lagged;
(b) The fencing of dangerous parts of machinery is not removed while such machinery is in
motion or in use;
(c) No part of any machinery which is in motion and which is not se surely fenced is examined,
lubricated, adjusted or repaired except by a person skilled for such
Examination, lubrication, adjustment or repairs;
(d) Machine parts are cleaned when such machine is stopped.
(e) When a machine is stopped for servicing or repairs, adequate measures are taken to ensure
that such machine does not re-start inadvertently.

38. Lifting and carrying of excessive weight.-


An employer shall ensure at a construction site of a building or other construction work that.-
(a) No building worker lifts by hand or carries overhead or over his backed or shoulders any
material, article, and tool or appliances exceeding in weight the maximum limits set doubt in the
following table:

TABLE

Person Maximum Weight Load


Adult man 55 kg
Adult woman 30kg
Adolescent male 30kg
Adolescent female 20 kg

Unless aided by any other building worker or a mechanical device.

(b) no building worker aided by other building workers, lift by hand or carry overhead or over
their back or shoulders, any material, article, tool or appliance exceeding in weight the sun total
of maximum limits set out for each building worker separately under clause (a), unless aided by
a mechanical device.

39. Health and safety policy.-


(l)
(a) Every establishment employing fifty or more building workers shall prepare a written
statement of policy in respect of safety and health of building workers and submit the same for
the approval of the Director General;
(b) The policy referred to in clause (a) shall contain the following, namely:
(i) The intentions and commitments of the establishment regarding health, safety and
environmental protection of building workers;
(ii) Organizational arrangements made to carry out the policy referred to in clause (a) specifying
the responsibility at different levels of hierarchy;
(iii) Responsibilities of the principle employer, contractor, sub-contractor, transporter or other
agencies involved in the building or other construction work;

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(iv) Techniques and methods for assessment of risk to safety health and environment and
remedial measures therefor;
(v) Arrangements for training of building workers, trainers, supervisors or other persons engaged
in the construction work;
(vi) Other arrangements for making the policy referred to in clause (a), effective;

(c) the intention and commitment referred to in sub-clause (i) clause (b) shall be taken into
account in making decisions relating to plant, machinery, equipment, materials and placement of
building workers.

(2) A copy of the policy referred to in clause (a) of sub-rule (1). Signed by an authorized
signatory shall be sent to the Central Government.

(3) The establishment shall revise the policy referred to in clause (a) of sub rule (1) as often as
necessary under the following circumstances, namely:
(i) Whenever any expansion or modification having implication on safety and health of the
building workers is made in such building or other construction work; or
(ii) Whenever any new building or other construction work, substances, articles or techniques are
introduced having implication on health and safety of building workers.

(4) A copy of the policy referred to in sub-clause (a) of sub-rule (1) shall be displayed at the
conspicuous places in Hindi and a local language understood by the majority of building workers
at a construction site.

40. Dangerous and harmful environment.-


An employer shall ensure at a construction site of a building site of a building or other
construction work that,-
(a) When an internal combustion engine exhausts into a confined space or excavation or tunnel
or any other workplace where neither natural ventilation nor artificial ventilation system is
adequate to keep the carbon monoxide content of the atmosphere below fifty parts per million,
adequate and suitable measures are taken at such workplace in order to avoid exposure of
building workers to health hazards;

(b) no building workers is allowed to enter any confined space or tank or trench or excavation
wherein there is given off any dust, fumes or other impurities of such nature and to such extent
as is likely to be injurious or offensive to the building worker or in which explosives, poisonous,
noxious or gaseous material or other handful articles have been carried or stored or in which has
been fumigated or in which there is a possibility of oxygen deficiency, unless all practical steps
have been taken to remove such dust, fumes, or other impurities and dangers which may be
present and to prevent any further ingress thereof, and such workplace or tank or trench or
excavation is certified by the responsible person to be safe and fit for the entry of such building
workers.

41. Overhead protection.-

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(l) The employer shall ensure at the building or other construction work that overhead protection
is erected along the periphery of every building under construction which shall be of fifteen
meters or more in height when complete.

(2) Over head protection referred to in sub-rule (1) shall not be less than two meters wide and
shall be erected at a height not more than five meters above the base of the building and the outer
edge of such overhead protection shall be one hundred fifty millimeters higher than the inner
edge thereof shall be erected at an angle of not more than twenty degrees to its horizontal sloping
into the building.

(3) The employer shall ensure at the building and other construction work that any area exposed
to risk of falling material, article or objects is roped off or cordoned off or otherwise suitably
guarded from inadvertent entry of persons other than building workers at work in such area.

42. Slipping, tripping, cutting, drowning and falling hazards.-

(1) All passageways, platforms and other places of construction work at the building or other
construction work shall be kept by the employer free from accumulation of dust, debris or similar
material and from other obstructions that may cause tripping.

(2) Any sharp projections or protruding nails or similar projections which may cause any cutting
hazard to a building, worker at the building or other construction work shall be removed or other
wise made safe by taking suitable measures by the employer.

(3) No employer shall allow any building worker at building worker at building or other
construction work to use the passageway, or a scaffold, platform or any other elevated working
surface which is in a slippery and dangerous condition and shall ensure that water, grease, oil or
other similar substances, which may cause the surface slippery, be removed or sanded, saw
dusted or covered with suitable material to make it safe from slipping hazard at a building or
other construction work.

(4) Wherever building workers at a building or other construction work are exposed to the (
hazard of falling into water, they shall be provided by the employer with adequate equipment for
saving themselves from drowning and rescuing from such hazard and if the Director General
considers necessary, well-equipped boat or launch manned with trained personnel shall be
provided by the employer at the site of such work.

(5) Every open side or opening into or through which a building worker, vehicle or lifting
appliance or other equipment may fall at a building or other construction work shall be covered
or guarded suitably by the employer to prevent such fall except where free access is necessary by
reasons of the nature of the work. (6) Wherever building workers at a building or other
construction work are exposed to the hazards of falling from height while employed on such
work, they shall be provided by the employer with adequate equipment or means for saving them
from such hazards. Such equipment or means shall be in accordance with the national standards.

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(7) Whenever there is possibility of falling of any material, equipment or building worker at a
construction site relating to a building or other construction work, adequate and suitable safety
net shall be provided by employer in accordance with the national standards.

43. Dust, gases, fumes, etc.-

An employer shall prevent concentration of dust, gases or fumes by providing suitable means to
control their concentration within the permissible limit so that they may not cause injury or pose
health hazard to a building worker at a building or other construction work.

44. Corrosive substances.-


The employer shall ensure that corrosive substances, including alkalis and acids, shall be stored
and used by a person dealing with such substances at a building or other construction work in
such a manner that is does not endanger the building worker and suitable protective equipment
shall be provided by the employer to a building worker during handling or use of such substances
at a building or other construction work and in case of spillage of such substances on the
building worker, immediate remedial measure shall be taken by the employer.

45. Eye protection.-


Suitable personal protective equipment for the protection of eyes shall be provided by an
employer and used by the building worker engaged in operation like welding, culling, chipping,
grinding or similar operations which may cause hazard to his eyes at a building or other
construction work.

46. Head protection and other protective apparel.-


(1) Every building worker required to pass through or work within the areas at building or other
construction work where there is hazard of his being struck by falling objects or materials shall
be provided by the employer with safety helmets of type and tested in accordance will the
national standards.
(2) Every building workers required to work in water or in wet concrete or in other similar work
at a building or other construction work, shall be provided with suitable waterproof boots by the
employer.
(3) Every building worker required to work in rain or in similar wet condition at building or
other construction work, shall be provided with waterproof coat with hat by the employer.
(4) Every building worker required using or handling alkalies, acid or other similar corrosive
substances at a building or other construction work shall be provided with appropriate protective
equipment by an employer, in accordance with the national standards.
(5) Every building worker engaged in handling sharp objects or materials at a building or other
construction work which may cause hand injury, shall be provided with suitable hand-gloves by
the employer, in accordance with the national standards.

47. Electrical hazards.-


Before commencement of any buildings or other construction work, the employer shall take
adequate measures to prevent any worker from coming into physical contact with any electrical
equipment or apparatus, machines or live electrical circuit which may cause electrical hazard
during the course of his employment at a building or other construction work.

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(2) The employer shall display and maintain suitable warning wings at conspicuous places at a
building or other construction work in Hindi and in a local language understood by the majority
of the building workers.
(3) In workplaces at a building or other construction work where the exact location of
underground electric power line is not known, the building workers using jack hammers, crow
bars or other hand-tools which may come in contact with a live electrical line, shall be provided
by the employer with insulated protective gloves and footwear of the type in accordance with the
national standards.
(4) The employer shall ensure that, as far as practicable, no wiring , which may come in contact
with water or which may be mechanically damaged, is left on ground or floor at a building or
other construction work.
(5) The employer shall ensure that, electrical appliances and current carrying equipment used at a
building or other construction work are made of sound material and are properly and adequately
earthed.
(6) The employer shall ensure that all electrical installations at a building or other construction
work comply with the requirements of any law for the time being in force.

48. Vehicular traffic.-


(1) Whenever any building or other construction work is being carried on, or is located in close
proximity to a road or any other place where any vehicular traffic may cause danger to building
workers, the employer shall ensure that such building or other construction work is barricaded
and suitable warning signs and lights displayed or erected to prevent such danger and if
necessary, he may make a request in writing to the concerned authorities to control such traffic.
(2) The employer shall ensure that all vehicles used at construction site of a building or other
construction work comply with the requirements of the Motor Vehicles Act, 1988 (59 o9f 1988)
and the rules made thereunder.
(3) The employer shall ensure that a driver of a vehicle of any class or description operating at a
construction site of a building or other construction work holds a valid driving license under the
Motor Vehicles Act. 1988 (59 of 1988).

49. Stability of structures.-


The employer shall ensure that no wall, chimney or other structure or part of a structure is left
unguarded in such condition that it may fall, collapse or weaken due to wind pressure, vibration
or due to any other reason at a site of a building or other construction work.

50. Illumination of passageways, etc.-


The employer shall ensure that illumination sufficient for maintaining safe working conditions at
a site of a building or other construction work is provided where building workers are required to
work or pass and for passageways. Stairways and landing, such illumination is not less than that
provided in the relevant national standards.

51. Stacking of materials.-


The employer shall ensure, at a construction site of a building or other construction work that-
(a) All building materials are stored or stacked in a safe and orderly manner to avoid obstruction
of any passageway or place of work;
(b) Material piles are stored or stacked in such a manner as to ensure stability;

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(c) Material or equipment is not stored upon any floor or platform in such quantity as to exceed
its safe carrying capacity;
(d) Material or equipment is not stored or placed so close to any edge of a floor or platform as to
endanger the safety of persons below or working in the vicinity.

52. Disposal of debris.-


The employer shall ensure at a construction site of a building or other construction work that-
(a) Debris are handled and disposed of by a method which does not cause danger to the safety of
a person;
(b) Debris are not allowed to accumulate so as to cons date a hazard;
(c) Debris are kept sufficiently moist to bring down the dust within the permissible limit;
(d) Debris are not thrown inside or outside from any height of such buildings or other
construction work;
(e) On completion of work, left over building material, article or other substance or debris are
disposed of as soon as possible to avoid any hazard to any traffic or person.

53. Numbering and marking of floors.-


The employer shall ensure that each floor or level of a building or other construction work is
appropriately numbered or marked at the landing of such floor or level.

54. Use of safety helmets and shoes.-


The employer shall ensure that all persons who are performing any work or services at a building
or other construction work wear safety shoes and helmets conforming to the national standards.

SAFETY ORGANISATION

208. Safety Committees.-


(1) Every establishment wherein five hundred or more building workers are ordinarily employed,
there shall be a Safety Committee constituted by the employer which shall be represented by
equal number of representatives of employer and building workers employed in such
establishment. In no case the number of representatives of the employer shall be represented by
representatives of the recognized unions wherever such unions exist.
(2) The main functions of the Safety Committee shall be -
(a) to identify probable causes of accident and unsafe practices in building or other construction
work and to suggest remedial measures;
(b) to stimulate interest of employer and building workers in safety by organizing safety weeks,
safety competition, talks and film shows on safety, preparing posters or taking similar other
measures as and when required or as necessary
(c) to go round the construction site with a view to check unsafe practices and detect unsafe
conditions and to recommend remedial measures for their rectification including First Aid
Medical and Welfare Facilities;
(d) to look into the health hazards associated with handling different types of explosives,
chemicals and other construction material and to suggest remedial measures including use of
proper personal protective equipment;
(e) to suggest measures for improving welfare amenities in the construction site and other
miscellaneous aspects of safety, health and welfare in building or other construction work;

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(f) to bring to the notice of the employer the hazards associated with use, handling and
maintenance of the equipment used during the course of building and other construction work.
(3) The Safety Committee shall meet at regular intervals at least once in a month and it shall be
chaired by the senior person having overall control over the affairs of the construction site.
(4) The agenda and minutes of the meeting shall be circulated to all concerned and it shall be in
the language understood by majority of the building workers and shall be produced to the
Inspector on demand for inspection.
(5) The decisions and recommendations of the Safety Committee shall be complied with by the
employer within reasonable time limits.

209. Safety Officer.-


(1) In every establishment wherein five hundred or more building workers are ordinarily
employed, the employer shall appoint Safety Officers as per the scale laid down in Schedule VIII
annexed to these rules, Such Safety Officers May be assisted by suitable and adequate staff.
(2) Duties, qualifications and the conditions of Safety Officers appointed under sub-rule (1) shall
be as provided in Schedule VIII annexed to these rules.
(3) Wherever number of workers employed by single employer is less than five hundred, such
employers with prior permission of Director General.

210. Reporting of accidents-

(1) Notice of any accident on the construction site which either-


(a) Causes loss of life, or
(b) disables a building worker from working for a period of forty-eight hours or more
immediately following the accident, shall forthwith be went by telegram, telephone, fax or
similar other means including special messenger within four hours in case of fatal accidents and
seventy-two hours, in case of other accidents involving building worker, to
(i) The Regional Labor Commissioner (Central), having jurisdiction in the area in which the
establishment in which such accident or dangerous occurrence took place is located. Such
Regional Labour Commissioner (Central) shall be the authority appointed under section 3 of the
Act;
(ii) The Board with which the building worker involved in accident was registered as a
beneficiary;
(iii) The Director General, and
(iv) The next of kin or other relative of building worker involved in accident.

(2) Notice of any accident at a construction site of a building or other construction work which-
(a) Cause loss of life; or
(b) Disables such building worker from work for more than ten days following the accident, shall
also be sent to
(i) The officer in-charge of the nearest police station;
(ii) The District Magistrate or if the District Magistrate by order so desires to the Sub-Divisional
Magistrate.

(3) In the case of an accident falling under clause (b) of sub-rule (1) or clause (b) of sub-rule (2)
the injured building worker shall be given first-aid and immediately

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Thereafter be transferred to a hospital or other place for medical treatment.

(4) Where any accident causing disablement subsequently result in death of a building worker,
notice in writing of such death shall be communicated to the authorities as mentioned in sub-rule
(1) and sub-rule (2) within seventy-two hours of such death.

(5) The following classes of dangerous occurrences shall be reported to the Inspector having
jurisdiction, whether or not any death or disablement is caused to a building worker, in the
manner prescribed in sub-rule (1), namely
(a) collapse or failure of lifting appliances or hoist or conveyors or other similar equipment for
handling building or construction material or breakage or failure of rope, chain or loose gears;
overturning of crane used in building or other construction work; falling of objects from height;
(b) collapse or subsidence of soil, any wall, floor, gallery, roof or any other part of any structure,
platform, staging, scaffolding or any means of access including formwork;
(c) Contact work, excavation, collapse of transmission;
(d) explosion of receiver or vessel used for storage, at a pressure greater than atmospheric
pressure, of any gas or gases or any liquid or solid used as building material;
(e) Fire and explosion causing damage to any place on construction site where building workers
are employed;
(f) Spillage or leakage of hazardous substances and damage to their container;
(g) Collapse, capsizing, toppling or collision of transport equipment;
(h) Leakage or release of harmful toxic gases at the construction site.

(6) In case of failure of a lifting appliance, loose gear, hoist or building and other construction
work machinery and transport equipment at a construction site of a building or other construction
work, such appliances gear, hoist, machinery or equipment and the site of such appliances, gear,
hoist, machinery or equipment and the site of such occurrence shall, as far as practicable, be kept
un disturbed until inspected by the inspector having jurisdiction.

(7) Every notice given under sub-rule (1), sub-rule (2) or sub rule (4) shall be followed by a
written report to the Inspector, authority under section 39 of the Act, of the Board and the
Director General in Form XIV under proper acknowledgement.

211. Procedure for enquiry into causes of accident or dangerous occurrence.-

(1) The enquiry under sub-section (2) or sub-section (3) of section39 of the Act, as the case may
be, shall bee conducted by the authority referred to in such-clause (i) of clause (b) of sub-rule (1)
rule 210, in the following manner, namely:
(a) the enquiry shall be commenced as early as it may be, and in any case, within fifteen days of
the receipt of notice of accident or dangerous occurrence under rule 210;
(b) the enquiry may be conducted by the authority referred to in sub-clause (i) clause (b) of sub-
rule (1) of rule 210 himself or by an enquiry officer appointed by such authority; (c) the authority
or enquiry officer, as the case may be, shall serve or cause to be served, notices in writing,
informing the date, time and place of such enquiry to all persons entitled to appear in such
enquiry and whose names and addresses are known to such authority or enquiry officer.

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(d) Notwithstanding the provision of clause (b), for the purpose of notifying other persons who
may in any way be concerned or be interested in such enquiry, the authority or enquiry officer, as
the case may be, may publish notice of such enquiry in one or more local newspapers, informing
the date, time and place of such enquiry.

(2) The person entitled to appear at the enquiry may include-


(a) An inspector or any officer of the Central Government or the State Government or an
undertaking or public body concerned with the enforcement or compliance of safety provisions
of the Act and the rules in the concerned establishment;
(b) A trade union or a workers’ association or an employers’ association;
(c) The worker involved in the accident or his legal heir or authorized representative;
(d) The owner of the premises in which the accident took place;
(e) any other person, at the discretion of the authority or the enquiring officer, as the case may
be, who may be interested in or be concerned with the clause of an accident or may have
knowledge about such cause or is likely to give material evidence or produce a relevant
document in connection with such accident or dangerous occurrence.

(3) In, case the entitled person referred to in sub-rule (2) is a body corporate, a company, or any
other organization, association, group of persons such group may be represented through an
authorized representatives including a counselor a solicitor.

(4) Subject to the provisions of sub-rule (5) the enquiry shall be held in public.

(5) In cases where-


(a) the Central Government is of the opinion that the matter of the enquiry or any part of it are of
such nature that it would be against the interest of national security to hold the enquiry in public
and directs the said authority or the enquiry officer, as the case may be, to hold the enquiry in
camera; or
(b) on an application made by any party to the enquiry, the authority or the enquiry officer, as the
case may be, referred to in sub-rule (1), if it or he is of the opinion that the holding of public
enquiry will lead to disclosure of information relating to a trade secret, decides to hold the
enquiry of such part of it in camera, such enquiry shall not be held in public.
(6) Information disclosed by any person during the course of hearing or evidence in the cases
covered under sub-rule (5) shall not be disclosed to any person except for the purpose of the
enquiry.
(7) The person entitled to appear under sub-rule (2), called for evidence or representation in an
enquiry shall be entitled to make an opening statement, give evidence, request the enquiry officer
to call for specified document or evidence, cross-examine other person or to the extent and at the
stage permitted by the authority or enquiry officer holding the enquiry.
(8) Any evidence in an enquiry may be admitted at the discretion of the authority or enquiry
officer during the enquiry, who may, also direct that documents to be tendered in evidence may
be inspected by any person entitled or permitted to appear at such enquiry and that facilities be
afforded to such person to take or obtain copies thereof.
(9) The authority or the enquiry officer holding an enquiry may authorize any person, being an
officer of the central Government, to assist such authority or enquiry officer where necessary, for
the purpose of conducting the enquiry, and the officer so authorized may enter the premises of

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the concerned establishment during working hours, inspect the records relevant to such enquiry,
investigate and take such evidence as may be required to conduct such enquiry.

(10) The findings of the enquiry along with all evidence, in original including statements of
witnesses shall be forwarded to the authority specified under section 39 of the Act within five
days of the completion of the enquiry in cases where sub-enquiry was not conducted by such
authority itself.

(11) A copy of the findings along with a brief statement of facts relating to an enquiry conducted under
this rule shall be forwarded to the Director General and the Central Government by the authority
referred to in sub-rule (1) of rule 210

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CHAPTER-6
SCHEDULE OF QUANTITIES

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SCHEDULE OF QUANTITIES

S.N DESCRIPTION UNIT QTY

1 Phase-I (for Pipeline & Associated Terminal)


Basic engineering and other associated works for Awa-Salawas
Pipeline project complete up to and including handing over of
Deliverables as detailed in the tender document. LS 01
2 Phase-II (for Pipeline & Associated Terminal)
Detailed engineering, balance basic engineering Process Design, for
procurements, construction works, services, Tendering & submission
of price recommendations, Inspection, Material management, Project
management services, Construction management/ supervision, pre
commissioning and commissioning for the Awa-Salawas Pipeline
Project as per scope of work, terms and conditions. LS 01
3 Additional Manpower supply for execution of any or all of the works
of Phase-I/Phase-II (for Pipeline and Associated Terminal) at any of
the location(s) of Awa-Salawas Pipeline Project, during or beyond
the contractual delivery period for additional works not originally
included in the scope or for extended stay for completion of original
scope of work beyond the contractual completion date on account of
delays, impediment or prevention by the owner for any reason.
Note: The man-month rate quoted by the bidder shall also be utilized
for affecting deduction in consultant’s bills, if any, towards shortfall
in deployment of manpower as compared to the committed manpower
in tender/ or during execution or non-completion of any work as per Man- 30
scope. The quoted manpower rate is all inclusive as defined in Months
Clause 7.2 of terms and conditions.

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CHAPTER-7
DOCUMENTS AND
PROFORMAE

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Apart from the documentation sought in the Section Instruction to Bidders following additional
information along with support documents have to be furnished by the bidder. Wherever
Proforma has been attached for detailing specific information/details in prescribed fashion, the
bidder should duly provide information in the prescribed proforma only.

Information Sought in Un-priced Bid


A. COMMERCIAL ENTITY

1.0 General
Bidder shall provide the following information regarding the organization bidding for the
Work.
(i) Type of Entity
State whether entity bidding is a company, corporation, incorporated joint venture
company or an incorporated partnership firm. State place of incorporation and, if a
partnership, provide the full name and address of all partners.
(ii) Organization
Bidder shall submit a corporate organization chart and structure clearly evidencing its
relationship and position relative to any associated or affiliated companies.
(iii) Arrangement to Bid
If Bidder is submitting a Bid as an Indian arm of a foreign company Bidder shall provide
full details of such arrangements.

(iv) Authorization of Signatories


Bidder shall submit satisfactory evidence of the authority of any signatory on its behalf.

B. EXECUTION & MONITORING PLAN

Bidder shall provide an execution & monitoring plan describing how the Project will be
organized, managed, executed and monitored. The description shall cover all aspects of
the Project from award of Contract, through and including aspects of the Basic Design
and the Detailed Engineering, Procurement/Tendering, construction, completion,
commissioning and hand over of the Project, including but not limited to:
- Organization chart.
- Experience list of similar projects performed in the past seven years.
- Work plans for Basic Design, Detailed Engineering, Equipment procurement, and Project
management.

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C. KEY PERSONNEL

(i) General

Bidder shall provide details of the structure of its Project team, the personnel and their
experience as requested below. The minimum manpower requirement at site has been
detailed in Table-3 below and consultant shall ensure their availability as per the
requirement of the owner. Shortfall in deployment shall lead to deduction from
consultant’s bill on the basis of man-month rates quoted in the tender.

(ii) Organization charts

An organization chart shall be provided of the overall project structure and separate
organization charts showing home office structures and any other organization that may
assist the Bidder in the Project implementation.

Organization charts shall name key personnel, and show their line responsibility and
reporting position.

(iii) Key Personnel

A resume shall be provided for each person indicated on the above organization charts
outlining their qualifications, length of service with the company, appropriate experience
for the position nominated, etc. The Key personnel as indicated by the owner shall
compulsorily be Consultant’s employee and in their payroll.

Bidder must note, that it is a requirement of the Contract, that all key personnel be fluent
in the English language.

D. SCHEDULE OF WORK

Bidder shall provide Schedule of Work by first filling the key dates for various activities
detailed in the attached “Project Schedule” in PF-1 for each item. The period after
mechanical completion shall be utilized for Commissioning with product, permanent
power energization, trial runs, SAT, PCP and interference mitigation and stabilization of
system.. The detailed Schedule of Work shall be in the form of bar chart schedule or
schedules covering all aspects of the Work, from award of Contract through to
completion of commissioning of the Project including but not limited to, those aspects set
forth in the attached Project Schedule. Bidder is encouraged to make aggressive and
comprehensive schedule in the form of PERT/CP network with slacks for start/end of
non-critical activities should also be provided.

Man hour loading curve

Bidder is to provide a man-hour loading curve by duly filling the PF-2a,b,c,d, which
should be in sequence with the Project Schedule being provided in PF-1a,b,c,d.

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E. HEALTH, SAFETY, ENVIRONMENTAL REQUIREMENTS

Bidder shall provide details of its compliance with the Project health, safety and
environmental requirements included with this ITB. This commitment shall be supported
by HSE statements and manuals / procedures for Bidder and all subcontractor(s).

HPCL’s HSE standard will be considered as base document. The copy is attached in the
tender.

F. QUALITY ASSURANCE & QUALITY CONTROL

Bidder shall provide details of its intended compliance with the Project quality assurance
& quality control requirements included with this ITB.

This compliance shall be supported by quality statements and quality manuals for the
Bidder and all subcontractor(s).

G. LIST OF EXCEPTIONS/ DEVIATIONS

Bidder shall provide details of its list of deviations in e-proc site directly or attached
separate sheet and upload with other documents of un-priced bid.

H. Information sought in Priced Bid

1 Contract Price

Owner shall pay Consultant, where specified, for full and complete performance of the
Work accepted by Owner if:

(a) Consultant has complied with all the terms and conditions in all parts of the Contract and

(b) Consultant has fulfilled all of its financial obligations incurred as a result of its
performance of the Work.

Payment shall be the sum of the following fixed lump sum price, and other rates, all of
which are subject to the provisions of the Contract and all of its parts. Owner is not
responsible for any cost incurred or schedule delay as a consequence of Consultant's
action or lack of action which is not in accordance with the terms and conditions of any
part of the Contract.

1.1 Basis of Lump Sum Prices and Unit Rates

The basis of lump sum price has been defined in Article 7.2 of terms and conditions.

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The bidder is also required to give break-up of Man hours as given in PF-2 (in un-priced
bid).

2.0 Weightages of Major Milestones

The weightages of work represented by major milestones are enclosed in Table 1a, 1b, 1c
& 1d attached herewith. No deviation is acceptable in the indicated milestone.

3.0 Schedule of Lumpsum Prices

For satisfactory performance and completion of the Work by Consultant, as described in


the Scope of Work, Owner shall pay Consultant as per the Quoted Lump sum price for
respective parts in the Priced Bid.

4.0 Unit Rates

The unit rates for man month quoted by the bidder shall all inclusive as defined in Article
7.2 of the Terms and conditions.

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Table-1a
WEIGHTAGES FOR MAJOR MILESTONES-PHASE-I-PIPELINE

CONTROL TOTAL
SL MAJOR PIPELINE VALVES
NO MILESTONES
BASIC DESIGN AND
PROCESS FOR 13 4 17
1
DELIVERABLES AS PER
TENDER
DETAILED ENGINEERING
35 10 45
2 FOR DELIVERABLES AS
PER TENDER

PURCHASE AND
30 8 38
3 TENDERING /PLACEMENT
OF ORDER

TOTAL 78 22 100

Table-1b
WEIGHTAGES FOR MAJOR MILESTONES-PHASE-I-TERMINAL

ADDITIONAL
MAJOR CONSTRUCTION
SL FIRE
OF ADDITIONAL TOTAL
NO MILESTONES FIGHTING
TANAKAGE
FACILITIES.
BASIC DESIGN AND
PROCESS FOR
1 25 15 40
DELIVERABLES AS PER
TENDER
DETAILED ENGINEERING
2 FOR DELIVERABLES AS 40 20 50
PER TENDER
TOTAL 65 35 100

Page 186 of 210


Table 1-c WEIGHTAGE OF MAJOR MILESTONE-Pipeline (PHASE-II)

SN MAJOR MILESTONES PIPELIN CONTR STATION ARCH./ ELECTRI TELECO PERM SCADA INSTRUME TOTAL
E OL PIPING CIVIL/S CAL M ANEN NTATION
VALVES TRUCT SYSTEM T CP
URAL SYST
EM
1 BASIC DESIGN AND 0 0 0.5 1 2 1 0.5 2 2 9
PROCESS
2 DETAILED 0 0 0.5 2 2 1 0.5 2 2 10
ENGINEERING
3 PURCHASE AND
TENDERING UPTO 3.5 0.5 0.5 2 1 1 0.1 1 1 10.6
PLACEMENT OF
ORDER
4 APPROVAL OF
VENDOR'S 4.6 0.5 0.75 1 1 2 0.25 1 1 12.1
DOCUMENTS/DRAWIN
GS
5 EXPEDITING AND 7.6 0.5 1 0 1 1 0 1 1 13.1
INSPECTION
6 MATERIAL 1.75 0.1 0.75 0 0 0 0 0 0 2.6
MANAGEMENT
7 CONSTRUCTION
SUPERVISION UPTO 15.5 0 2 4 2 2 2 1 1 29.5
MECH COMPLETION
8 COMMISSIONING/OPER 4 0 0.25 0 0.5 1 0.5 0.5 0.5 7.25
ATIONS MANUAL
9 AS BUILT DRAWINGS 2.0 0.1 0.25 0.5 0.5 1 0.5 0.5 0.5 5.85

TOTAL 38.95 1.7 6.5 10.5 10 10 4.35 9 9 100

Page 187 of 210


Table 1-d WEIGHTAGE OF MAJOR MILESTONE-Terminal (PHASE-II)

SN MAJOR MILESTONES
Mech Instr
Roads MV Vapor
Eqpmt Civil/Str/Arch & Fire-
Tankage & pkg,Elect ETP Recovery
& works TAS Fighting
Drains & Comm. System
Piping jobs TOTAL

1 BASIC DESIGN AND PROCESS 1 1 0.5 1 1 1 0.5 0.5 0.5 7

2 DETAILED ENGINEERING 1 2 1 2 2 2 1 0.5 1 12.5

3 PURCHASE AND TENDERING


UPTO PLACEMENT OF ORDER 2 2.55 0.5 2.25 2 2 2 0.5 2.5 16.3

4 APPROVAL OF VENDOR'S
DOCUMENTS/DRAWINGS 1 1.25 0.5 1 1.25 1.5 1 0.5 0.65 8.65

5 EXPEDITING AND INSPECTION 1 2 0 0 1 1 1 0.5 0.65 7.15

6 MATERIAL MANAGEMENT 1 2 0 0 0.5 0 1 0 1 5.5

7 CONSTRUCTION SUPERVISION
UPTO MECH COMPLETION 7 5 3 4 3 4 2 0.5 2 30.5

8 COMMISSIONING/OPERATIONS 1 1 0 0 1 1.25 0.5 0.5 1.45 6.7


MANUAL
9 AS BUILT DRAWINGS 1 1 0 0.5 1 1 0.5 0.25 0.45 5.7

TOTAL 16 17.8 5.5 10.75 12.75 13.75 9.5 3.75 10.2 100

Page 188 of 210


SCHEDULE FOR MAJOR MILESTONE- Pipeline- Phase-I-PF-1a

SL MAJOR PIPELINE
CONTROL
NO MILESTONES VALVES

BASIC DESIGN AND


START
PROCESS FOR
1
DELIVERABLES AS PER
FINISH
TENDER
DETAILED ENGINEERING START
2 FOR DELIVERABLES AS
PER TENDER FINISH

PURCHASE AND START


3 TENDERING
/PLACEMENT OF ORDER FINISH

SCHEDULE FOR MAJOR MILESTONE- Terminal- Phase-I-PF-1b


ADDITIONAL
MAJOR CONSTRUCTION
SL FIRE
OF ADDITIONAL
NO MILESTONES FIGHTING
TANAKAGE
FACILITIES.
BASIC DESIGN AND
START
PROCESS FOR
1
DELIVERABLES AS PER
FINISH
TENDER
DETAILED ENGINEERING START
2 FOR DELIVERABLES AS
PER TENDER FINISH

Page 189 of 210


SCHEDULE FOR MAJOR MILESTONE- Pipeline-Phase-II- PF1c

ARCH./
SN MAJOR MILESTONES CONTROL STATION TELECOM PERM CP
PIPELINE CIVIL/ ELECT SCADA INSTMN
VALVES PIPING SYSTEM SYSTEM
STRUCTURAL
START
1 BASIC DESIGN AND PROCESS
FINISH
START
2 DETAILED ENGINEERING
FINISH
START
PURCHASE AND TENDERING
3
UPTO PLACEMENT OF ORDER
FINISH

APPROVAL OF VENDOR'S START


4
DOCUMENTS/DRAWINGS
FINISH

START
5 EXPEDITING AND INSPECTION
FINISH
START
6 MATERIAL MANAGEMENT
FINISH
CONSTRUCTION SUPERVISION START
7
UPTO MECH COMPLETION FINISH
COMMISSIONING/OPERATIONS START
8
MANUAL
FINISH
START
9 AS BUILT DRAWINGS
FINISH

Page 190 of 210


SCHEDULE FOR MAJOR MILESTONE-Terminal (PHASE-II) PF-1d

Mech Instr
Roads MV Vapor
Eqpmt Civil/Str/Arch & Fire-
SN MAJOR MILESTONES Tankage & pkg,Elect ETP Recovery
& works TAS Fighting
Drains & Comm. System
Piping jobs

START
1 BASIC DESIGN AND PROCESS
FINISH
START
2 DETAILED ENGINEERING
FINISH

START
PURCHASE AND TENDERING
3
UPTO PLACEMENT OF ORDER
FINISH

START
APPROVAL OF VENDOR'S
4
DOCUMENTS/DRAWINGS
FINISH

START
5 EXPEDITING AND INSPECTION
FINISH
START
6 MATERIAL MANAGEMENT
FINISH

CONSTRUCTION SUPERVISION START


7
UPTO MECH COMPLETION
FINISH

COMMISSIONING/OPERATIONS START
8
MANUAL
FINISH
START
9 AS BUILT DRAWINGS
FINISH

Page 191 of 210


BREAK-UP OF MAN-HOURS

BREAK-UP OF MAN-HOURS- PIPELINE (PHASE-I) PF-2a

SL MAJOR PIPELINE CONTROL VALVES


NO MILESTONES
BASIC DESIGN AND
PROCESS FOR
1
DELIVERABLES AS PER
TENDER
DETAILED ENGINEERING
2 FOR DELIVERABLES AS
PER TENDER

PURCHASE AND
TENDERING /PLACEMENT
3 OF ORDER FOR LINE PIPE,
COATING, PUMPS AND
CONTROL VALVE
TOTAL

BREAK-UP OF MAN-HOURS- TERMINAL (PHASE-I) PF-2b


ADDITIONAL REVAMP OF
MAJOR CONSTRUCTION FIRE
SL TANKAGE/PIPING/FIR
OF ADDITIONAL FIGHTING
NO MILESTONES TANAKAGE E FIGHTING SYSTEM
FACILITIES

BASIC DESIGN AND


PROCESS FOR
1 DELIVERABLES AS PER
TENDER

DETAILED ENGINEERING
2 FOR DELIVERABLES AS
PER TENDER
TOTAL

Page 192 of 210


BREAK-UP OF MAN-HOURS-PIPELINE (PHASE-II) PF-2c
SN MAJOR MILESTONES PIPELINE CONTROL STATION ARCH./CIVI ELECTR TELECO PERMA SCADA INSTRU TOTAL
VALVES PIPING L/STRUCTU ICAL M NENT MENTA
RAL SYSTEM CP TION
SYSTE
M
1 BASIC DESIGN AND
PROCESS
2 DETAILED
ENGINEERING
3 PURCHASE AND
TENDERING UPTO
PLACEMENT OF
ORDER
4 APPROVAL OF
VENDOR'S
DOCUMENTS/DRAWI
NGS
5 EXPEDITING AND
INSPECTION
6 MATERIAL
MANAGEMENT
7 CONSTRUCTION
SUPERVISION UPTO
MECH COMPLETION
8 COMMISSIONING/OP
ERATIONS MANUAL
9 AS BUILT DRAWINGS

TOTAL

Page 193 of 210


BREAK-UP OF MAN-HOURS-TERMINAL (PHASE-II) PF-2d

SN MAJOR MILESTONES Revamp


`Vapor of
Mech MV
Roads Civil/Str/ Instr & Fire- Recov tankage/
Tankag Eqpmt pkg,El
& Arch TAS ETP Fightin ery piping &
e & ect &
Drains works jobs g Syste fire
Piping Comm.
m fighting
systems

1 BASIC DESIGN AND


PROCESS
2 DETAILED
ENGINEERING
3 PURCHASE AND
TENDERING UPTO
PLACEMENT OF
ORDER
4 APPROVAL OF
VENDOR'S
DOCUMENTS/DRAWING
S
5 EXPEDITING AND
INSPECTION
6 MATERIAL
MANAGEMENT
7 CONSTRUCTION
SUPERVISION UPTO
MECH COMPLETION
8 COMMISSIONING/OPER
ATIONS MANUAL
9 AS BUILT DRAWINGS

TOTAL

Page 194 of 210


MINIMUM SITE MANPOWER DEPLOYMENT SCHEDULE FOR PIPELINE WORKS

Planning Engr 1 No
Manager QA/QC 1 No
Resident Construction Manager Document Engr 1 No
Manager HSE 1 No

Awa Dispatch Station Salawas Receipt Station Spread -93 Km


Work Experience
In-charge - 1No. In-charge - 1No. In-charge - 1No.
RCM 15 Yrs
Civil Engr - 1 No. Civil Engr - 1 No. Civil Engr - 2 No.
Spread In charge 8 Yrs
Mech. Engr -1 No Mech. Engr -1 No Mech. Engr -2 No
Engr NDT 5 Yrs
Elec/ Instru Engr - 1 No Elec/ Instru Engr - 1 No Elec/ Instru Engr - 2 No
Balance 3 Yrs
NDT Engr- 1 No. NDT Engr- 1 No. NDT Engr- 2 No.

Note:

1 RCM, Spread-in Charges, Radiography Engr, Location-in-Charges shall be compulsorily be permanent employee of EPMC
agency
2 The deployment for each staff under In-Charges shall be just prior to commencement of related Site activities at
respective sites
3 Mgr-QA/QC, Coordination, SHE, Civil Engr, Safety Off Staff shall be available at least till Mechanical Completion
4 Spread-in-Charge, Mech. Engr, Elect/Instru. Engr shall be available till commissioning and handing over
5 Radiography Engr shall be available till clearance of last welding joint. Store Supervisor shall be deployed at each
storage location till final reconciliation.
6 The above Site manpower deployment schedule is the min. requirement; augmentation shall be done by EPMC bidder
as per work load & project requirement.

Page 195 of 210


MINIMUM SITE MANPOWER DEPLOYMENT SCHEDULE FOR TERMINAL WORKS

Planning Engr 1 No
Manager QA/QC 1 No
Resident Construction Manager Document Engr 1 No
Manager HSE 1 No

Salawas Depot
Terminal In-charge - 1No.
Civil Engineer - 1No. Work Experience
Mech. Engr - 1No. In charge 8 Yrs
Elec/Inst Engr - 1No. Engr NDT 5 Yrs
Safety Engr - 1No. Balance 3 Yrs

Note:

1 RCM, Spread-in Charges, Radiography Engr, Location-in-Charges shall be compulsorily be permanent employee of EPMC agency
2 The deployment for each staff under In-Charges shall be just prior to commencement of related Site activities at respective sites
3 Mgr-QA/QC, Coordination, SHE, Civil Engr, Safety Off Staff shall be available at least till Mechanical Completion
4 Loc-in-Charge,, Mech Engr, Elect/Instmn engr shall be available till commissioning and handing over
Radiography Engr shall be available till clearance of last welding joint. Store Supervisor shall be deployed at each storage location
5 till final reconciliation.
The above Site manpower deployment schedule is the min. requirement; augmentation shall be done by EPMC bidder as per work
6 load & project requirement.

Bidder to Sign and submit the commitment towards deployment of Manpower at Site for both
terminal & pipeline along with un-priced Bid. The Manpower/team at consultant’s HO/Design office
is not indicated & same shall be decided to suit the Project requirement.

Page 196 of 210


Annexure A

DRAFT BANK GUARANTEE IN LIEU OF EARNEST MONEY


(On Non-Judicial stamp paper of appropriate value)

(Attached Separately)

Page 197 of 210


Annexure B

DRAFT COMPOSITE BANK GUARANTEE FOR SECURITY


DEPOSIT/PERFORMANCE GUARANTEE

(Attached Separately)

Page 198 of 210


Annexure-C

INTEGRITY PACT
(Attached Separately)

Page 199 of 210


Annexure-D
PARENT COMPANY GUARANTEE

This GUARANTEE (“Guarantee”) is issued on the _____ day of ______ , ___ by


_______________________, a Company organized and existing under the laws of ___________ having
its Registered Office at ___________________________ (hereinafter referred to as “Guarantor” and/or
“__________________”), at the request and/or behest of _______________________, a Company
organized and existing under the laws of _________________ having its Registered Office at
____________________ (hereinafter referred to as “Indian arm”), in favour of Hindustan Petroleum
Corporation Limited, a listed Public Limited Company organized under the laws of India having its
Registered Office at Petroleum House, 17, Jamshedji Tata Road, Churchgate, Mumbai – 400 020
(hereinafter referred to as “Beneficiary” or “HPCL”).

WHEREAS:
The Beneficiary floated a global tender dated __________ inviting offers from Vendors for
________________(purpose). The Indian arm have submitted their quotation dated _________ and
advised the Beneficiary that the Indian arm is the subsidiary/ authorized agent/ branch office/ affiliate* of
the Guarantor. The Guarantor vide its letter dated __________ informed the Beneficiary that its Indian
arm, will quote and participate in the tender in their place and desire that the contract be placed by the
Beneficiary on the Indian arm. For this reason, the Guarantor is ready and willing to give a Parent
Company Guarantee (PCG) inter alia for the performance of their Indian arm to the terms and conditions
of the tender and on failure to assume the said obligations.
.
We, the Guarantor are hereby recording the terms and conditions governing our obligations under this
Guarantee with the intent of being legally bound by the same and hereby agree, covenant and bind
ourselves as follows:-

1. The Guarantor hereby irrevocably and unconditionally guarantees to HPCL that its wholly owned
Indian arm Company will perform its obligations under the terms and conditions of the tender, if
the contract is being awarded to them in future for ___________ and agrees to provide further
comfort letters/ guarantees, if so desired by beneficiary, in terms of the tender.
2. The Guarantor unconditionally and irrevocably guarantees to the Beneficiary that it will make
available or cause to be made available to the Indian arm all financial, technical and other
resources required to ensure that the Indian arm can carry out its obligations as per the tender
terms and conditions and that the Indian arm at all times fully and effectively discharge its
obligations under the terms and conditions of tender, including by discharging the obligations
within the time and cost so stipulated.

Page 200 of 210


3. The Guarantor hereby agrees that if the Indian arm shall in any respect commit any breach or
fails to fulfill any of the terms of the Contract/Tender or complete it in all respects or if there is a
failure to make any supplies or if any material, equipment or machinery under the contract so
supplied is not of the required specifications or does not perform as envisaged under the contract,
then the Guarantor will forthwith perform the same and fulfill all the obligations required under
tender terms & conditions on behalf of their Indian arm, without any extra cost and time
implications.

4. The Guarantor further undertakes to indemnify all losses, damages, expenses, claims, costs and
proceedings which may be suffered or incurred by Beneficiary due to the failure or breach on the
part of its Indian arm Company.

5. The Guarantor assures and undertakes that during the term of the contract or of any guarantee
for performance as per the contract, the Indian arm shall continue to be the subsidiary/ authorized
agent/ branch office/ affiliate* of the Guarantor and the Guarantor’s liability shall not be affected
due to any incapacity or lack of power or legal personality or change in the status of the Indian
arm or the Guarantor.

6. The Guarantor’s liabilities under this Guarantee shall not exceed the liability of the Indian arm
under the tender terms and conditions but this shall in any manner not affect the Guarantor’s own
responsibilities and liabilities under the Guarantee.

7. The obligation of the Guarantor shall take effect from the date of this Guarantee and shall remain
in full force until all the obligations of the Indian arm have been fully performed and discharged
and/or all sums of money payable to Beneficiary have been fully paid under the contract being
entered into by Beneficiary with the Indian arm Company. The Guarantor further undertakes to
perform forthwith without insisting on any proof of breach of Contract by its Indian arm Company
and purely relying on Beneficiary’ s written demand.

8. The liabilities of the Guarantor shall not be discharged, diminished or otherwise affected by:-

(a) Any change in the Articles of Association or Bye-Laws or constitution of the Indian arm
Company or the Guarantor.

(b) Any time, indulgence, waiver or consent given to Indian arm Company by the Beneficiary.

Page 201 of 210


(c) Any amendment to the Contract or any security or other guarantee or indemnity to which
Indian arm Company has agreed.

(d) The dissolution, amalgamation, reconstruction or reorganization of Indian arm Company


or Guarantor.

9. NOTICE:

Any notice, demand, declaration or other communication to be given by the Beneficiary or the
Guarantor to the other shall be in writing, in English language and delivered in person or by Air
Mail or by Courier Services or by Facsimile or by E-Mail to the address given below :-

For Guarantor
Attention of
Mailing Address
Email Address
Fax No.

For Beneficiary
Attention of
Mailing Address
Email Address
Fax No.

10. GOVERNING LAW AND JURISDICTION:

This Guarantee shall be exclusively governed by and construed in accordance with the laws of
India without giving effect to the principles of conflict of laws therein. No party shall take a plea
that any forum is inconvenient. It may be enforced in terms of the Indian laws.

11. DISPUTE RESOLUTION

Any dispute arising out of or in relation to this Guarantee shall be resolved by arbitration of a sole
arbitrator to be appointed as per the rules set out in the tender document.

12. This Guarantee may be executed in one or more counterparts, all of which shall be read and
construed as one document and any fax copy or scanned copy or print of a scanned copy of a

Page 202 of 210


signed Guarantee shall be deemed to be an original signature.

13. No modification, alteration or amendment of this Guarantee or any of its terms or provisions shall
be valid or legally binding unless the Beneficiary consents to the same in writing.

14. No failure to take any action with respect to a breach of this Guarantee or a default by any other
party shall constitute a waiver of the Beneficiary’s right to enforce any provision of this Guarantee
or to take action with respect to such breach or default or any subsequent breach or default.

15. Waiver of any breach or failure to comply with any provisions of this Guarantee shall not be
construed as, or constitute, a continuing waiver of such provision, or a waiver of any other breach
of or failure to comply with any other provision of this Guarantee, unless any such waiver has
been consented to by the concerned party in writing.

16. This document has been executed by a duly authorized signatory on behalf of the Guarantor
having the requisite power to do so.

IN WITNESS WHEEOF the Guarantor has duly executed this Guarantee as at the date first above
written.
For and on behalf of Guarantor,
__________________________ Witness

(Signature) Signature :
Name :
Designation :
Date :

Note:
* Strike off that which is not applicable and retain the correct relationship between Guarantor and Indian
arm.

Page 203 of 210


CHAPTER-8
EXECUTIVE SUMMARY OF
DFR

Page 204 of 210


EXTRACT OF EXECUTIVE SUMMARY FOR REFERENCE ONLY
1.1 INTRODUCTION

Hindustan Petroleum Corporation Limited (HPCL) desires to lay a cross country


multiproduct white oil pipeline for the distribution of products in Northern India. The
pipeline is proposed to be laid to transfer EURO-III MS, EURO-III HSD, and SKO from
the pumping station, at Awa, of Mundra-Delhi Pipeline (MDPL) up to HPC’s Salawas
depot in the state of Rajasthan. A tap off is proposed to be made at Pumping station at Awa
and the same is transported via pipeline to terminate at Salawas depot.

The length of the pipeline shall be 93 km (approx.).The pipeline throughput shall be as


follows:

Pipeline Section Year/ Phase Throughput in MMTPA

Awa - Salawas 2018 – 2019/Phase – I 0.619


Awa - Salawas 2023-2024 / Phase - II 0.755

The line shall not have any additional pumping station and it is envisaged to use the
current pumps at MDPL-Awa. The line has been designed for a maximum capacity of 1
MMTPA. The line shall have 2 No’s SV station.

Batch sequencing has been carried out to in such a way that it is in coherence with
current MDPL also shall cater to demand of 2013-14 and 2018-19, while Tankage
requirement has been finalized based on the year 2018-19.

Based on the outcome of the study existing tanks in Salawas terminal shall be realigned
and augmentation of the tankage shall be made to handle the respective product batch
sizes. The Salawas terminal shall also require augmentation of existing firefighting
facilities as per the OISD norms. Also the integration of the new facility with the existing
common facilities shall be done.

M/s Woodgroup India Private Limited has been entrusted the job of preparation of a
Detailed Feasibility Report (DFR) for the proposed pipeline from Awa to Salawas. The
scope of work includes augmentation of existing facilities with the complete integration
of both new and old facilities.

1.2 Project Facilities

The above project requirements are proposed to be met by laying

Page 205 of 210


I) A cross country main pipeline of 93 km long (approx) from HPCL’s
Intermediate pumping station at Awa, to its Marketing Terminals at Salawas.
.
II) The receipt facility inside Salawas terminal.

III) Pig launching facility at Awa with receiving facility at Salawas receipt.

IV) 2 nos. SV stations

V) Augmentation & realignment of Tankage storage capacities at Salawas


terminal as required facilitating batch handling capacity.

1.3 OPTIMISATION STUDY

Optimization Study has been carried out with alternative pipeline sizes, with optimized thickness
and pumping configuration.

Under this study 3 different options were analyzed. Pipeline size/pumping requirement
optimization study was carried out, with alternate pipeline sizes and corresponding pumping
configuration for transfer of products from Awa to Salawas to determine the most optimum
combination of pipeline size and pressure requirements based on present value analysis (NPV) of
cash outflows.

On the basis of results of optimization study and final selection by HPCL the option of Awa-
Salawas Spur line and the following pipeline sizes/pumping configurations were adopted for the
proposed ASPL Project:

Pipeline size from Awa-Salawas – 10” NB, 6.4mm Thick, X-52 grade

The existing Pumping system at Awa with Mainline pumps configuration of 2 working + 1 stand
by along with VFD’s shall be utilized for pumping for both Phase – I & Phase II in Awa –
Salawas Section.

The Pipeline size, the grade & wall thickness were selected keeping in view the following.

a. Cost optimization.

b. Pumping product from Mundra and taking a tap off at Awa to feed ASPL. The Tankage
requirement has been arrived on the basis of maximum requirement during commissioning /
under of Phase-I and thereafter suitably split to suit the batch size/interface, operational
convenience and requirement at respective locations. Details of Optimization Study have been
given in System Optimization Study chapter enclosed hereafter.

Page 206 of 210


1.4 Details of Project Infrastructure:

As per results of Optimisation Studies and Basic Engineering, the specification and details
of pipeline facilities are summarized below.

A. Pipeline Network

Pipeline Length Line Design Pressure Required thickness


size
(Km) (kg/cm2g) mm(Grade)
(Inch)

Awa-Salawas 92.2 10 98 (Ch.0.00 to Ch.67.71) 6.4 (Gr X-52)

98 (Ch.67.71 to Ch. 92.2) 6.4 (Gr X-52)

Other Details

S.No. Description

1. Type of corrosion coating 3 LPE

2. No. of Despatch Station 1

3. No. of SV station 2

4. No. of Tap-off/Receiving Station 1

5. No. of Pig Launcher 1

6. No. of Pig Receiver 1

B. Awa dispatch station details

Dispatch station, one Uni-directional Pig launcher suitable for 10” Bi directional Pig Trap.

C. Receipt station at Salawas

Receipt station Uni-directional pig receiver suitable for 10” pipeline along with basket
filters, control valve, density meter, flow meter etc.

Page 207 of 210


D. 2 nos. SV stations

SV stations with extended stem main line valves and other related facilities.

Corrosion Protection

The pipeline shall be protected against external corrosion by 3 Layer Polyethylene (PE)
coating and additionally by impressed current cathodic protection system.

1.5 SCADA & APPS System

To ensure effective and reliable control, management and supervision of this pipeline is
envisaged to be monitored and controlled by SCADA system using Remote Telemetry
Units along pipeline & controlled centrally from SCADA Master Control Station (SMCS)
located at Mundra.

In addition, the system will facilitate running of Application Software (APPS) package for
reliable operation of the pipeline viz.

 Leak detection & location

 Batch Scheduling & Batch Tracking

 Stock Accounting with custody transfer

Existing SCADA & telecom system shall be modified to meet the requirement of Awa
dispatch station, ASPL & Salawas receipt station including integration of exisiting PLC
system shall be modified at Awa station to include additional facilities whereas new
system shall be installed at Salawas receipt station which shall be integrated with SCADA
system and in turn with MDPL SCADA.

Page 208 of 210


CHAPTER-9
TIME SCHEDULE

Page 209 of 210


TIME SCHEDULE
ALL THE WORKS AS PER THE SCOPE OF WORK AND SCHEDULE OF
QUANTITIES MENTIONED IN THIS TENDER DOCUMENT SHALL BE
COMPLETED AS UNDER

EPMC FOR AWA-SALAWAS PIPELINE PROJECT (for PIPELINE & TERMINAL)

PHASE-I – BASIC ENGINEERING: WITHIN 4 MONTHS FROM THE DATE OF LOI/FOI


PHASE-II– DETAILED ENGINEERING UPTO AND INCLUDING MECHANICAL
COMPLETION: WITHIN 22 MONTHS FROM THE DATE OF LOI/FOI
BALANCE WORKS POST MECHANICAL COMPLETION: WITHIN 24 MONTHS
FROM THE DATE OF LOI/FOI

NOTE:
THE BALANCE WORKS POST MECHANICAL COMPLETION AND ADDITIONAL
MANPOWER SUPPLY SHALL BE OUTSIDE THE PURVIEW OF LIQUIDATED
DAMAGE.

Page 210 of 210


NOTICE INVITING TENDER

Page 1 of 13
Hindustan Petroleum Corporation Ltd ; GGSR Evacuation Project,

8th Floor, North Tower, SCOPE Minar Complex, Laxminagar, Delhi – 110092

Telephone: 011-22041341 ; Fax No. 011-22041103

NOTICE INVITING TENDER

Digitally signed & sealed (encrypted) e-tenders (online bid only to be submitted at site
http://eproc.hpcl.co.in) are invited from eligible Indian Bidders for following jobs:

Tender No: 11000093-HD-10129; Online Bidding starts from: 14/01/2012 at 08.00 hrs; Job :
Appointment of Engineering and Project Management Consultant for proposed Awa Salawas
Pipeline Project ;Due date and Time: 15/02/2012 at 16.00 hrs; Online opening of Unpriced bids
starts from : 15/02/2012 at 16.30 hrs.

For Tender details including EMD amount & Pre-Bid meeting venue & date please visit our
website www.hindustanpetroleum.com and go to tender section by clicking the link
Tenders.

Page 2 of 13
1.0 PROJECT DESCRIPTION:

1.1 Hindustan Petroleum Corporation Limited (HPCL) desires to lay a cross country
multiproduct white oil pipeline for the distribution of products its markets in and
around Jodhpur in the state of Rajasthan. The pipeline is proposed to be laid to
transfer EURO-III MS, EURO-III HSD, and SKO from the existing Mundra Delhi
Pipeline (MDPL) from Awa Pumping station of MDPL in Rajasthan to existing HPCL
depot at Salawas in Rajasthan. The products shall be made available to this pipeline
from existing MDPL.
1.2 The length of the pipeline shall be 93 km (approx.). The Pipeline shall be passing
entirely through the state of Rajasthan.
1.3 HPCL has carried out Detailed Feasibility Studies through M/s Woodgroup India
Private Limited in 2011 and the Executive Summary has been attached in Chapter-8
of the tender document. The full report shall be handed over to the successful
Bidder for review and proceeding further on Basic Engineering and Detailed
Engineering.
1.4 The Project Details for Awa-Salawas Pipeline Project (hereinafter referred to as
ASPL) can be broadly defined to be constituting as under
i) A cross country main pipeline of 93 km long (approx) from HPCL’s existing
MDPL Pumping Station at Awa to the existing depot at Salawas. Including
dispatch facilities at Awa Pumping station and receiving station facilities at
Salawas depot
ii) 2 nos. SV stations
iii) Augmentation & Realignment of Tankages storage capacities at existing
Salawas depot
iv) Associated and enabling works at existing locations including works
required for integration with the existing facilities and systems.

1.5 It is envisaged that the work will be engineered, organized, and managed by the
Engineering Project Management Consultant (hereinafter referred to as “EPMC”), as
hereinafter defined as per the scope, terms and conditions of the tender document.

1.6 This Notice Inviting Tender (NIT) is to invite you to submit a formal proposal and
commitment for your participation in the Engineering and Project Management
Consultancy job, based on the Bid Qualification Criteria(s) and eligibility conditions.

2.0 BRIEF SCOPE OF WORK AND COMPLETION PERIOD

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2.1 EPMC SERVICES: Basic engineering, Process Design, Detailed engineering for
procurements, construction works, services, Tendering & submission of Techno-
commercial recommendations, Inspection, Material management, Project
Management services, Construction management/ supervision, Pre- commissioning
and commissioning as per scope of work, terms and conditions for

Pipeline
i) A cross country main pipeline of 93 km long (approx...) from HPCL’s proposed
Dispatch station facilities at Awa (existing pumping station of MDPL) and
receiving facilities at Salawas (existing HPCL depot).
ii) 2 nos. SV stations en-route.
iii) Associated and enabling works for integration of new facilities with existing
MDPL system.

Terminal
(i) Augmentation and/or Realignment of Tankages at existing Salawas depot and
associated Civil/Mechanical/Electrical/Instrumentation works.
(ii) Associated and enabling works required for integration with the existing
facilities and systems

The scope of work has been sub-divided as under

PHASE-I Basic Engineering


PHASE-II Detailed Engineering

The Detailed scope of work has been given separately in the tender document. Set
forth below is a brief summary of the obligations and duties of the EPMC under
individual Package.

- Review of optimization study included in DFR.


- Basic design and detailed engineering.
- Finalization of Material Take Off (MTO), Material Requisition (MR).
- Preparation of item wise cost estimate for each Material Requisition and
tender document.
- Invite bids for procurement of Materials/Equipment, evaluation of un-priced
and priced bids, purchase recommendation, assistance during negotiations.
- Preparation of tender documents, invite bids, evaluation of un-priced and
priced bids, recommendation for award of work/service contracts and assist
during negotiations.
- Preparation of Letters of Intent, Contract Documents/Agreements, Purchase
Requisition (PR).

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- Review/approval of design/drawings/documents submitted by contractors/
suppliers.
- Monitoring & control of project progress
- Inspection and expediting.
- Construction supervision including certification of contractor’s bills.
- Safety, Health & Environment Management.
- Quality assurance & Quality control as per specified Standards/Procedures.
- Review and approval of “As Built Documents/Drawings”.
- Overall project management.
- Commissioning upon mechanical completion
- Assistance in Arbitration / Court Cases with the vendors / contractors
- Closing of contracts

2.2 COMPLETION PERIOD: As per Chapter-9 (Time Schedule) of Tender Document

3.0 BIDDER QUALIFICATION

Bidder(s) who qualify all of the following criteria as specified in Clause 3.1 & 3.2, are
only eligible to quote and bidders who meet these criteria and submit supporting
documents as detailed in the tender shall only be accepted.

Proposals submitted by bidders who qualify as per the following criteria shall be
technically and commercially evaluated. All other proposals are liable to be rejected.
Therefore, bidders are requested to carefully read the Qualification Criteria and
furnish authentic and complete information in response.

BID QUALIFICATION CRITERIA (BQC)

3.1 Financial:

(i) Annual turn-over: Bidder shall meet the minimum prescribed pre-qualification
requirements as follows:

Average Annual Financial Turnover as per audited Balance Sheet and Profit & Loss
account during the last three Financial Years ending March’11 shall be R 186 Lakhs.
For the vendors following financial year closing at the end of June, September or
December, the last three financial years ending with the respective quarter of 2011
will be considered.

Note: In case the Turnover figures are in not in r., the currency shall be
converted to r. (INR) based on the Exchange Rate (TT Selling Rate of SBI,
Mumbai/ Economic Times) as on the Bid Due Date.

3.2 Technical:

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3.2.1 Bidder shall be a Project Management and Engineering Consultant and should have
successfully carried out and completed the following during the last 7 (Seven) years
reckoned from 31-12-2011. (Sl.no.1 and Sl.no.2 below may be for the same or different
projects.)

1. Engineering, Procurement, Inspection, Project Management and construction


Supervision of on-shore cross country Petroleum Oil/Gas Pipeline for a single
pipeline of at least 8” diameter, at least 70 kms length with facilities of min. 600#, in
India or abroad through single/ multiple orders but for a single project.

2. Engineering, Procurement, Inspection, Project Management and Construction


Supervision of Petroleum White Oil / Crude Oil above ground Floating Roof Tank of
min. diameter of 20mtrs in a Petroleum Oil Terminal or Refinery Complex, in India
or Abroad through single /multiple orders but for a single project.

3.2.2 Previous Order Value: Bidder during the last seven years reckoned from 31-12-
2011 should have successfully carried out and completed similar work(s) meeting
any of the criteria as stated in Clause 3.2.2.1 to 3.2.2.3 with executed value as
indicated against each clause

3.2.2.1 One Similar Completed Work costing not less than R 496 Lakhs

3.2.2.2 Two Similar Completed Works each costing not less than R 310 Lakhs

3.2.2.3 Three Similar Completed Works each costing not less than R 248 Lakhs

Similar Completed Work as referred in 3.2.2 is defined as

“Engineering / Project Management Consultancy services for Cross-Country Petroleum


Oil/ Gas/ Crude Pipeline/ White Oil/ Crude Oil above ground Tankages with or without
associated facilities”

For this purpose, the similar jobs shall be considered as single job during the stated period
if the job(s) is /are

a) Carried out for single project through a single or multiple purchase orders
b) Carried out at multiple locations through a single purchase order.
c) Carried out at multiple locations through multiple purchase orders but through a
single bidding process.

4.0 Bidder shall furnish documentary evidence i.e. copies of work orders/ relevant
pages of contract, completion certificate from their clients, annual reports
containing audited balance sheets and profit & loss accounts statement, in the first
instance itself, in support of their fulfilling the qualification criteria. HPCL reserve

Page 6 of 13
the right to complete the evaluation based on the details furnished without seeking
any additional information.

5.0 Parties who are affiliates of one another can decide which Affiliate will make a bid.
Only one affiliate may submit a bid. Two or more affiliates are not permitted to
make separate bids directly or indirectly. If 2 or more affiliates submit a bid, then
any one or all of them are liable for disqualification. However up to 3 affiliates may
make a joint bid as a consortium, and in which case the conditions applicable to a
consortium shall apply to them. “Affiliate” of a Party shall mean any company or
legal entity which:

(a) controls either directly or indirectly a Party, or

(b) which is controlled directly or indirectly by a Party; or

(c) is directly or indirectly controlled by a company, legal entity or partnership which


directly or indirectly controls a Party. “Control” means actual control or ownership
of at least a 50% voting or other controlling interest that gives the power to direct,
or cause the direction of, the management and material business decisions of the
controlled entity.

6.0 Bids may be submitted by:

a) a single person/ entity (called sole bidder);

b) a newly formed incorporated joint venture (JV) which has not completed 3 financial
years from the date of commencement of business;

c) a consortium (including an unincorporated JV) having a maximum of 3 (three)


members;

d) an Indian arm of a foreign company.

7.0 Fulfillment of Eligibility criteria and certain additional conditions in respect of each
of the above four types of bidders is stated below, respectively:

a) The sole bidder (including an incorporated JV which has completed 3 financial years
after date of commencement of business) shall fulfill each eligibility criteria.

b) In case the bidder is a newly formed and incorporated joint venture and which has
not completed three financial years from the date of commencement of business,
then either the said JV shall fulfill each eligibility criteria or any one constituent
member/ promoter of such a JV shall fulfill each eligibility criteria. If the bid is
received with the proposal that one constituent member/ promoter fulfils each

Page 7 of 13
eligibility criteria, then this member/promoter shall be clearly identified and he/it
shall assume all obligations under the contract and provide such comfort
letter/guarantees as may be required by Owner. The guarantees shall cover inter
alia the commitment of the member/ promoter to complete the entire work in all
respects and in a timely fashion, being bound by all the obligations under the
contract, an undertaking to provide all necessary technical and financial support to
the JV to ensure completion of the contract when awarded, an undertaking not to
withdraw from the JV till completion of the work, etc.

c) In case the bidder(s) is/are a consortium (including an unincorporated JV), then the
following conditions shall apply:

1) Each member in a consortium may only be a legal entity and not an individual
person;

2) the Bid shall specifically identify and describe each member of the consortium;

3) the consortium member descriptions shall indicate what type of legal entity the
member is and its jurisdiction of incorporation (or of establishment as a legal entity
other than as a corporation) and provide evidence by a copy of the articles of
incorporation (or equivalent documents);

4) One participant member of the consortium shall be identified as the “Prime


member” and contracting entity for the consortium;

5) this prime member shall be solely responsible for all aspects of the Bid/ Proposal
including the execution of all tasks and performance of all consortium obligations;

6) the prime member shall fulfill each eligibility criteria;

7) a commitment shall be given from each of the consortium members in the form of a
letter signed by a duly authorized officer clearly identifying the role of the member
in the Bid and the member’s commitment to perform all relevant tasks and
obligations in support of the Prime/lead member of the Consortium and a
commitment not to withdraw from the consortium;

8) No change shall be permitted in the number, nature or share holding pattern of the
Consortium members after pre-qualification, without the prior written permission
of the Owner.

9) No change in project plans, timetables or pricing will be permitted as a consequence


of any withdrawal or failure to perform by a consortium member;

10) No consortium member shall hold less than 25% stake in a consortium;

Page 8 of 13
11) Entities which are affiliates of one another are allowed to bid either as a sole bidder
or as a consortium only;

12) Any person or entity can bid either singly or as a member of only one consortium.

d) In case the bidder is an Indian arm (subsidiary, authorized agent, branch office or
affiliate) of a foreign bidder, then the foreign bidder shall have to fulfill each
eligibility criteria. If such foreign company desires that the contract be entered into
with the Indian arm, then a proper back to back continuing (parent company)
guarantee shall be provided by the foreign company clearly stating that in case of
any failure of any supply or performance of the equipment, machinery, material or
plant or completion of the work in all respects and as per the warranties/
guarantees that may have been given, then the foreign company shall assume all
obligations under the contract. Towards this purpose, it shall provide such comfort
letter/guarantees as may be required by Owner. The guarantees shall cover inter
alia the commitment of the foreign company to complete the entire work in all
respects and in a timely fashion, being bound by all the obligations under the
contract, an undertaking to provide all necessary technical and financial support to
the Indian arm or to render the same themselves so as to ensure completion of the
contract when awarded, an undertaking not to withdraw from the contract till
completion of the work, etc.

Note:

i) Bidder shall submit documentary evidence to substantiate the above along


with their offer; HPCL reserves the right to verify the correctness of
documentary evidence furnished by the bidder.

ii) HPCL reserves the right to assess the capability and capacity of the bidder.

iii) HPCL reserves the right to verify the successful operation and performance
of qualifying projects and bidder shall arrange permissions for visiting these
installations.

8.0 PRE BID MEETING

8.1 The Bidder(s) or his designated representative, who have confirmed


participation in the bidding process are invited to attend a pre-bid meeting
which will take place on 02/02/2012 at 11.00 hrs at HPCL, Gresham
Assurance House, 2nd Floor, Sir P.M. Road, Fort, Mumbai-400 001.

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8.2 The Bidder is requested to submit any queries by fax/letter/online query/email to
reach us at least one week before the date of pre-bid meeting. These queries shall be
replied during the pre-bid meeting to the extent possible.

8.3 Pre-bid discussion shall be confined to techno – commercial discussions and site
appraisals and there shall be no revision/discussion to BQC criteria.

8.4 Minutes of meeting, including the text of the questions raised (without identifying
sources of the query) and the responses given shall be posted at the web site
www.hindustanpetroleum.com and http://eproc.hpcl.co.in. Any modification in
the bid document that may become necessary as a result of the pre-bid meeting
shall be made by the owner exclusively through the issue of
corrigendum/addendum posted at e-proc site/web site and not through the minutes
of pre-bid meeting.

8.5 Non-attendance of the pre-bid meeting will not be a cause for disqualification of a
bidder. However, no further queries will be entertained from such bidder(s).

9.0 GENERAL INFORMATION

9.1 EMD (EARNEST MONEY DEPOSIT):

EMD shall be accepted in the form of demand draft, pay order, banker’s cheque (in
favour of Hindustan petroleum Corporation Ltd, payable at Delhi, issued by any
scheduled bank other than cooperative bank) or Bank Guarantee issued by any
scheduled bank (other than cooperative bank). In case EMD is submitted in form
of Bank Guarantee, it should be made on non-judicial stamp paper of appropriate
value (denomination) and should be valid for 120 days from due date / extended
due date of the tender. Cheque / FDR or EMD in any other form shall be treated as
offer without EMD and shall not be acceptable. Public sector undertaking (Declaration
required) and Units registered with NSIC (Copy of valid registration certificate) are
exempted from submission of EMD.

Amount of EMD is mentioned in the NIT. Bidders are required to submit the
EMD amount as mentioned in the same. While filling EMD details on-line,
bidders are requested to fill the actual amount of EMD being submitted by them.

EMD (original instrument: DD/Pay order/ Banker’s Cheque OR Bank Guarantee)


should be kept in separate envelope (super-scribed with tender number, job & due
date) and should be deposited by tender due date / time, in the tender box provided in
the office of SENIOR MANAGER – PROCUREMENT, PIPELINES
DEPARTMENT,HINDUSTAN PETROLEUM CORPORATION LTD, 8 FLOOR, SCOPE TH

MINAR, NORTH TOWER, LAXMI NAGAR, DELHI-110092. In case the EMD

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(original instrument) is not deposited in the tender box (as mentioned above)
by tender due date/time, the offer of bidder shall be rejected.

9.2 Public sector undertaking and Units registered with NSIC may also send the hard copy
of EMD exemption document by post to Senior Manager - Procurement, GGSRPEP at
the address mentioned above.

9.3 HPCL shall not be responsible for any postal delays for non-receipt of EMD by tender
due date / time, reasons whatsoever.

9.4 While submitting the bid on-line, bidders would be required to upload the scanned
copy of EMD instrument (DD / pay order / banker’s cheque or bank guarantee) OR
EMD exemption document ( self-declaration in case of Public sector undertaking OR
copy of valid registration certificate in case of units registered with NSIC) at the place
provided for the same.

9.5 Offer received without requisite EMD as explained above shall be rejected.

i) Bidder can view the tender Document at HPCL website


http://www.hindustanpetroleum.com however bidders are not allowed to quote on
the basis of such downloaded document from website and such offers shall not be
considered.

ii) Bid document is non-transferable.

iii) For submitting the bid on-line it would be mandatory for bidders to obtain digital
certificate (which will enable data encryption as well as digital signing). For
information regarding digital certificate, bidders may visit http://www.cca.gov.in. For
submitting the bid online, bidders are advised to follow the step by step procedure
given under the link “Bidding Manual” at website http://eproc.hpcl.co.in . In case
bidders are unable to access the site http://eproc.hpcl.co.in they may contact help
desk OF C1 India at 022- 66865603,66865604, 09987715722, 09322020100, at
Mumbai on all working days during office hours.

The on-line bidding would comprise broadly following steps –

 Enrollment by vendor at http://eproc.hpcl.co.in (can be done without digital


certificate) by clicking the link “ENROLLMENT”.
 The system generated challenge phrase will be sent to vendor at e-mail address
provided by him during enrollment.
 The vendor would be required to login at http://eproc.hpcl.co.in with this challenge
phrase along with his user id & password. The vendor has to complete 2 page

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registration form along with the “Secret question” (link provided on first page –right
downside of registration form) in case of forgetting password in future.
 As soon as vendor fills two page registration form, he should put a request
letter on letterhead (giving tender number) to HPCL for approving his
enrollment. The request has to be sent mandatory through e-Mail attachment
scanned copy to: [email protected] and also may be informed to Shri Sukanta
Das(Manager-Procurement) at his landline No. 011-22041341 for facilitating
early approval of enrolment.
 After enrollment, vendor would be required to login and register his digital
certificate (to be obtained by vendor) at website.
 After registering digital certificate, log in & confirm the bid participation by the date
/ time mentioned in NIT. Without confirming participation by the specified
date/time, vendor would not be able to bid for the tender.
 After above vendor can participate in the public tender & can submit the bid by the
specified due date/time.
 For bidding it is suggested that bidders should not wait for last date / tender due
date for their bid preparation as several documents are to be uploaded in the offer
and prices are to be entered on screen for all the items. Bidders are requested to
keep sufficient time margin with them for submission of bids, modifications,
connectivity issues etc.
 FOR ALL SUBSEQUENT CHANGES IN TENDER DOCUMENT & REPLY TO QUERIES
POSTED BY BIDDERS; PLEASE REFER /VISIT:
 THE CORRIGENDUMS (IF ANY) BY CLICKING THE LINK
CORRIGENDUM
 TENDER MESSAGE BOARD
 TENDER CALENDER FOR CHANGE IN DATES (IF ANY)

The vendors who are already enrolled at website: http://eproc.hpcl.co.in need


not to enroll again and vendors who have already got valid digital certificate
(enabling data encryption as well as digital signing) are not required to
procure another digital certificate.

iv) HPCL will not be responsible for the cost incurred in preparation and submission
of bids including the cost of digital certificate, regardless of the conduct of outcome
of the biding process.

v) HPCL shall not be responsible for any expenses incurred by bidders in connection
with the preparation & submission of their bids, site visit and other expenses
incurred during bidding process.

vi) Fax/ e-mail bids shall not be accepted.

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vii) HPCL reserves the right to accept or reject any one or all the tenders without
assigning any reason.

viii) A firm which is not a PSU or an associate or a joint venture of a PSU, hired to
provide consultancy services for preparation or implementation of project, and any
of its affiliates, will be disqualified from subsequently providing goods or works or
services related to the initial assignment for the project.

ix) Hindustan Petroleum Corporation Ltd (HPCL) has developed the “Grievance
redressal Mechanism" to deal with references / grievances if any that is received
from parties who participated/ intends to participate in the Corporation Tenders.
The details of the same are available on www.hindustapetroleum.com website.

9.6 Completed Tenders in all respect should be submitted on-line at website


http://eproc.hpcl.co.in by the tender due date/ time. Un-priced (Technical) bids
shall be opened on-line (as per date / time specified in NIT/ tender calendar) and
participating bidders can view / witness the same on-line by logging in at website
http://eproc.hpcl.co.in. Bidders would not be allowed to submit their bid after
stipulated tender due date and time. For details, please refer “e- TENDER TERMS/
INSTRUCTION TO BIDDERS” and the tender document.

9.7 HPCL will follow the purchase preference and price preference policy as per
prevailing guidelines of Govt. of India.

Senior Manager – Procurement

Page 13 of 13
CHAPTER-2
INSTRUCTION TO BIDDERS
SECTION-A

1.0 SUBMISSION OF ON-LINE BID AT http://eproc.hpcl.co.in

This tender is being floated as e- tender & ALL OFFERS ARE TO BE SUBMITTED
ONLINE ONLY.BIDS SUBMITTED OTHER THAN ONLINE SHALL BE
OUTRIGHTLY REJECTED.

The bid shall be submitted in following parts-


1) Un-priced part of Tender: 11000093-HD-10129
2) Priced bid part of Tender: 11000093-HD-10129

The various documents / bid forms / price bids shall be submitted in above two parts as
following-
Part of Tender Documents to be Uploaded
1) Unpriced part of  BQC documents as applicable for bidder’s offer
Tender: 11000093-HD-  Deviations (if any)
10129  Declaration for not being blacklisted/ delisted etc.
 EMD as applicable for the offer submitted. While filling
EMD details on-line, bidders are requested to fill the actual
amount of EMD being submitted by them applicable for
their offer as per NIT.
 Declaration from NSIC registered bidders (as applicable)
 Integrity Pact
 Any other document/ details as required for the un-priced
bid of entire tender ( i.e. 11000093-HD-10129)
 On-line vendor undertaking
 PF-1a,PF-1b,PF-1c,PF-1d;PF-2a,PF-2b,PF-2c,PF-2d
duly filled and signed
 Minimum site manpower requirement sheets duly
signed and stamped
 Integrity Pact duly signed along with sign of 2 witness
 E-Mandate forms duly filled, signed and stamped
2) Priced bid part of On-line Price bid of tender
Tender: 11000093-HD-
10129

2.0 METHODOLOGY FOR AWARD OF CONTRACT

METHODOLOGY FOR AWARD OF CONTRACT


The Purchase Order/s shall be placed in whole or Phase-wise on the lowest bidder
evaluated as below.

2.1. METHOD OF EVALUATION:

 After Technical evaluation of the tender is over, all the qualified bidders will be notified
and PRICE BID shall be opened first online with prior intimation to qualified bidders.

 After opening of priced bid, the bids shall be financially evaluated based on the total cost
of all the items (item nos. 1, 2 and 3) and the lowest bidder shall be established.
Evaluation of bids shall be done on the rates quoted by vendor in priced bid which
includes all taxes and duties.

 The LOI (followed by Detailed Purchase Order/s) shall be placed as below.

LOI/PO for Phase-I consisting of item no. 1

LOI/PO for Phase-II consisting of item nos. 2 & 3

 LOI/PO for Phase-II may be placed simultaneously with Phase-I or anytime during the
execution of Phase-I.
Section-B

1.0 INTRODUCTION

M/s Hindustan Petroleum Corporation Limited (HPCL), invites sealed bids under
two bid system from Indian Bidders for Engineering & Project Management
Consultancy for Awa-Salawas Pipeline Project (Consisting of Pipeline & associated
Terminal) as per Scope of Work, terms and conditions of the tender.

1.1 SCOPE OF WORK

The scope of work includes (but not limited to) Basic engineering, Process Design,
Detailed engineering for procurements, construction works, services, Tendering &
submission of Techno-commercial recommendations, Inspection, Material
management, Project management services, Construction management & site
supervision, pre commissioning and commissioning for the Awa-Salawas Pipeline
Project as per the scope of work, terms and conditions for

(i) Pipeline: Awa-Salawas Pipeline including associated works at Awa Pumping


Station of MDPL, Receipt Station at existing Salawas depot, SV stations for the
proposed new line including system integration between existing and new
pipelines.

(i) Terminal: Augmentation and/or Realignment of Tankages at existing Salawas


depot and associated Civil/Mechanical/Electrical/Instrumentation works.

The scope of work has been sub-divided as under

Phase-I Basic Engineering


Phase-II Detailed Engineering

The Detailed scope of work has been given separately in the tender document.

2.0 SITE VISIT

2.1 The bidder is advised to visit and examine the site of works at all locations and their
surrounding and obtain for himself on his own responsibility all information that
may be necessary for preparing of the bid and entering into the contract. The cost of
visiting the sites shall be at bidder’s own expenses. No extra claim on account of
non-familiarity of site conditions shall be entertained during execution of works.
2.2 The bidder and any of his personnel or agents will be granted permission by the
Owner to enter upon his premises and lands for the purpose of such inspection, but
only upon the explicit condition that the bidder, his personnel or agents will release
and indemnify the Owner and his personnel and agents from and against all liability
in respect thereof and will be responsible for personnel injury (whether fatal or
otherwise), loss of or damage and expenses incurred as a result hereof.

3.0 INFORMATION REQUIRED WITH BIDS

The following details are required to be submitted along with the offer in the format
specified in the section Proposal Form

a. Audited Annual Report for 2010-11, 2009-10 & 2008-09 by any Independent
Chartered or Certified Accountant.
b. Details of Purchase Order(s)/ Agreement along with completion certificate/
certified final bill by client in support of Clause 3.2 of NIT. The documents submitted
should substantiate nature and scope of work carried out and completed by the
Bidder.
c. All information as sought in Chapter-8 (Document & Proformae) of Tender
Document. Viz. Commercial Entity, QA/QC Plans, SHE Plan, Resumes of Key
Personnel, Man-hour loading chart, Schedule for Milestones, signed Milestones
Chart, Signed Min Key personnel chart etc.
d. Declaration for not having been banned/delisted by any Government or quasi
Government agencies or PSUs.
e. Details of PAN No. and Power of attorney holder
f. Parent Company Guarantee, if applicable
g. Any additional information/ document required by owner.

4.0 BID CLARIFICATIONS/AMENDMENTS BY HPCL

4.1 HPCL may issue clarifications / amendments in the form of addendum/


corrigendum during the bidding period and may also issue amendments subsequent
to receiving the bids. For the addendum/corrigendum issued during the bidding
period, bidders shall confirm the inclusion of addendum/corrigendum in their bid.
Bidder shall follow the instructions issued along with addendum/ corrigendum.

4.2 Bidders shall examine the Bidding Document thoroughly and submit to HPCL any
apparent conflict, discrepancy or error. HPCL shall issue appropriate clarifications
or amendments, if required. Any failure by Bidder to comply with the aforesaid shall
not excuse the Bidder from performing the Services in accordance with the contract
if subsequently awarded.
4.3 The Bidder(s) or his designated representative, who have confirmed
participation in the bidding process are invited to attend a pre-bid meeting
which will take place on 02/02/2012 at 11.00 hrs at HPCL, Gresham
Assurance House, 2nd Floor, Sir P.M. Road, Fort, Mumbai-400 001

4.4 The purpose of the meeting will be to clarify issues and to answer queries on any
matter related to the tender and bidding process that have been raised before or
during the meeting.

4.5 The bidder is requested, as far as possible, to submit any queries by


fax/letter/online query/email to reach owner’s office not later than one week
before the meeting. It may not be practicable to answer queries received late, but
queries and responses/ clarification will be posted in the form of record notes at the
web site http://eproc.hpcl.co.in maximum within one week from the date of pre-bid
meeting. Any modification in the bid document that may become necessary as a
result of the pre-bid meeting shall be made by the owner exclusively through the
issue of corrigendum/addendum posted at e-proc site/web site and not through the
minutes of pre-bid meeting.

4.6 Non-attendance in the pre-bid meeting will not be a cause for disqualification of the
bidder.

5.0 CONFIDENTIALITY OF DOCUMENTS

Bidder shall treat the Bidding Document and contents therein as private and
confidential and shall not use the Bidding Document for any other purposes.

6.0 APPLICABLE LANGUAGE

The bid prepared by the bidder, all correspondences and documents related to this
bid shall be written in English language only. For document submitted in any other
language, an English translation shall also be submitted, in which case, for the
purpose of interpretation of the bid, the English translation shall govern.

7.0 CAUTION AND DISCLAIMER

Transfer of Bid document by the bidder is not permitted.

Bidder shall make his own interpretation of any and all information provided in the
Bidding Document. HPCL shall not be responsible for the accuracy or completeness
of such information and/or interpretation.
Although certain information’s are provided in the Bidding Document, however,
bidder shall be responsible for obtaining and verifying all necessary data and
information as required by him.

HPCL reserves the right to accept or reject any/all tender in whole or in part
without assigning any reason whatsoever.

HPCL shall not be bound to accept the lowest tender and reserves the right to accept
any or more tenders in part. Decision of HPCL in this regard shall be final.

8.0 EVALUATION OF UNPRICED BIDS

The bids shall be evaluated on the basis of the following criteria:

8.1 RECEIPT OF BID

Bids received late i.e. after due date and time, due to any reason (s) whatsoever shall
be rejected. Bids received without requisite EMD (as specified in tender/NIT) shall
also be rejected

8.2 DEVIATIONS TO TENDER REQUIREMENTS

8.2.1 The bidders are required to submit offers strictly as per the terms and conditions &
scope given in the Bidding Document and not to stipulate any deviations. The offer
of bidders stipulating deviations to any of the following terms/conditions will not
be considered for priced bid opening. However, HPCL reserves the right to give
opportunity to bidder for withdrawal of deviation to the following clauses. In case,
bidders refuse to withdraw the deviation against following clauses, the offers shall
be rejected without any further correspondence with them

i) Suspension & Termination (Article 18 & 19 of Terms & Conditions)


ii) General Warranties (Article 12 of Terms & Conditions)
iii) Force Majeure (Article 17 of Terms & Conditions)
iv) Scope of work
v) Validity of offer
vi) Payment (Article 8 of Terms & Conditions)
vii) Arbitration (Article 27 of Terms & Conditions)
viii) Firm Prices
ix) Security Deposit
x) Contract Price ( Article 7 of Terms and Conditions)
xi) Survival of Contract Provisions (Article 28.14)
xii) Integrity Pact
xiii) Milestone Chart ( Document & Performae)
Bidder’s standard Terms and Conditions shall not be considered. If Bidder insists
on its Terms and Conditions, it shall subject such Bid to rejection

8.2.2 In case Bidders wish to stipulate any deviation to Bidding Document requirements
other than those stated above, they shall indicate the same as per the proforma
enclosed in the Bidding Document. Bidder shall note that
clarification/queries/deviations mentioned elsewhere in the offer shall not be
given any cognizance. However HPCL reserves their right to reject bids containing
deviations to any of the Bidding Document stipulations.

8.3 UNSOLICITED POST BID MODIFICATION

Bidders are advised to quote strictly as per terms and conditions of the Bidding
Document and not to stipulate any deviation / exceptions. Once, quoted the bidders
shall not make any subsequent price changes, whether resulting or arising out of
any technical / commercial clarifications sought/allowed on any deviations or
exceptions mentioned in the bid unless discussed and agreed by HPCL in writing.

8.4 DETERMINATION OF RESPONSIVENESS

i) Prior to the financial evaluation of bids, the HPCL will determine whether
each bid is substantially responsive to the requirements of the Bidding
Document.
ii) For the purpose of this Clause, a substantially responsive bid is one which
conforms to all the terms and conditions and specifications of the Bidding
Document without material deviation or reservation. A material deviation or
reservation is one which affects in any substantial way the scope, quality, or
performance of the works or which limits in any substantial way,
inconsistent with the Bidding Document, the HPCL’s rights or Bidder’s
obligation under the Contract and retention of which deviation or
reservation would affect unfairly the competitive position of other bidders
presenting substantially responsive bids.
iii) If a bid is not substantially responsive to the requirements of the Bidding
Document, it may be rejected by the HPCL. Such rejection may be intimated
to the Bidder.

9.0 EVALUATION OF PRICE BIDS

9.1 The “PRICE BIDS” of only substantially responsive bidders and techno –
commercially accepted shall be considered for opening.
9.2 Bidders shall quote the prices in Indian Rupees only.

9.3 The quoted prices shall be checked to determine the arithmetical correctness of the
same.

9.4 HPCL reserves their right to extend purchase/price preference to NSIC/Public


Sector Enterprises as admissible under the existing policies of Government of India
as on the date of opening un-priced bids.

9.5 HPCL reserves their right to negotiate the quoted prices with lowest bidder.

9.6 HPCL reserves the right to delete any of the items in the Schedule of Rates at the
time of placement of Fax of Intent/Purchase Order. The decision of HPCL shall be
final and binding.

9.7 The Contractor shall quote for all the items of the Schedule of Rates. It may be noted
that if any item is left unquoted, then such a quotation will be loaded with the
highest quoted rate for that particular item for evaluation purpose.

10.0 REBATE

No suo-moto reduction in prices quoted by bidder shall be permitted after opening


of the bid. If any bidder unilaterally reduces the prices quoted by him in his bid after
opening of bids, the bid (s) of such bidder(s) will be liable to be rejected. Such
reduction shall not be considered for comparison of prices but shall be binding on
the bidder in case he happens to be a successful bidder for award of work.

11.0 VERIFICATION BY OWNER

All statements submitted by Bidder regarding experience, manpower availability,


equipment and machinery availability etc., are subject to verification by the Owner
either before placement of order or after placement of order. If any data submitted
by the Bidder at the bid stage is found to be incorrect, the offer is liable to be
rejected or the Contract is liable to be terminated.

12.0 OWNER’S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS

11.1 Owner reserves the right to accept or reject any bid, and to annul the bidding
process and reject all bids, at any time prior to award of contract, without thereby
incurring any liability to the affected Bidder or Bidders or; any obligations to inform
the affected Bidder or Bidders of the ground for the Owner’s action.
11.2 The submission of any bid connected with these documents and
specifications shall constitute an agreement that the Bidder shall have no cause for
action or claim, against the Owner for rejection of his bid. The Owner shall always
be at liberty to reject or accept any bid or bids at his sole discretion and any such
action will not be called into question and the Bidder shall have no claim in that
regard against the Owner.

13.0 PURCHASE ORDER (PO)

13.1 Purchase Order shall be prepared for award of works. Successful bidder shall be
intimated regarding award of works through Fax/Letter of Intent. Until the final PO
is prepared and executed, this Bidding Document together with the annexed
documents, modification, deletions agreed upon by the HPCL and Bidder’s
acceptance thereof shall constitute a binding contract between the successful bidder
and the HPCL based on terms contained in the aforesaid documents and the finally
submitted and accepted prices.

13.2 The Purchase Order shall consist of the following:

a) Original Bidding Document along with its enclosures issued.

b) Addendum/Corrigendum to Bidding Document issued, if any.

c) Fax/Letter of Intent.

d) The detailed Letter of Award/Acceptance along with Statement of Agreed


Variations (if any) and enclosures attached therewith.

13.3 The statement of agreed variations shall be prepared based on the finally retained
deviations, if any, by the Bidder and accepted by HPCL. All other correspondences
between HPCL and the Bidder prior to issue of Fax/Letter of Intent shall be treated
as Null & Void. Any deviations or stipulations made and accepted by HPCL after
award of the job shall be treated as amendments to the contract document as above.
DRAFT COMPOSITE BANK GUARANTEE FOR SECURITY
DEPOSIT/PERFORMANCE GUARANTEE

(On Non-Judicial stamp paper of appropriate value)

TO : Hindustan Petroleum Corporation Limited

(Address as applicable)

IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION


LIMITED, a Government of India Company registered under the Companies Act,
1956, having its registered office at 17, Jamshedji Tata Road, Mumbai-20
(hereinafter called "The Corporation" (which expression shall include its
successor in business and assigns) having placed an order on Messers
............................ a partnership firm/sole proprietor business/a company
registered under the Companies Act, 1956 having its office at .............
(hereinafter called "the supplier" (which expression shall include executors,
administrators and assigns) vide order No....................... dated..............
(hereinafter called "the order" which expression shall include any
amendments/alterations to "the order" issued by "the Corporation") for the
supply of goods to/execution of services for "the Corporation" and "the
Corporation" having agreed : a) not to insist upon immediate payment of
Security deposit for the fulfillment and performance of the said order b) to pay
"the supplier" as and by way of advance up to a sum of Rupees__________
(Rupees _____________________________ only) being ____% of the value of the
order"; c) that "the supplier" shall furnish a security for the performance of "the
supplier's" obligations and/or discharge of "the supplier's" liability in connection
with the said "order"; and "the Corporation" having agreed with "the supplier" to
accept a composite Bank Guarantee for the mobilization advance, security
deposit, retention money and performance guarantee.

___________________________________________________________________________

We, .................................................... Bank having office at


............................................ (hereinafter referred to as "the Bank" which
expression shall includes its successors and assigns) at the request and on
behalf of "the supplier" hereby agree to pay to "the Corporation” without any
demur on first demand an amount not exceeding Rs...........
(Rupees.............................only) against any loss or damage, costs, charges and
expenses caused to or suffered by "the Corporation" by reason of non
performance and fulfillment or for any breach on the part of "the supplier" of
any of the terms and conditions of the said "order".

2. We, ............................. Bank further agree that "the Corporation" shall be sole
judge whether the said "Supplier" has failed to perform or fulfill the said "order"
in terms thereof or committed breach of any terms and conditions of "the order"
and the extent of loss, damage, cost, charges and expenses suffered or incurred

1
or would be suffered or incurred by "the Corporation" on account thereof and we
waive in the favour of "the Corporation" all the rights and defences to which we
as guarantors and/or "the Supplier" may be entitled to.

3. We, ................................. Bank further agree that the amount demanded by


"the Corporation" as such shall be final and binding on "the Bank" as to "the
Bank" 's liability to pay and the amount demanded and "the Bank" undertake to
pay "the Corporation" the amount so demanded on first demand and without
any demur notwithstanding any dispute raised by "the Supplier" or any suit or
other legal proceedings including arbitration pending before any court, tribunal
or arbitrator relating thereto, our liability under this guarantee being absolute
and unconditional.

4. We, .................................. Bank further agree with "the Corporation" that "the
Corporation" shall have the fullest liberty without our consent and without
affecting in any manner our obligations hereunder to vary any of the terms and
conditions of the said "order"/or to extend time of performance by "the Supplier"
from time to time or to postpone for any time to time any of the powers
exercisable by "the Corporation" against "the Supplier" and to forbear to enforce
any of the terms and conditions relating to "the order" and we shall not be
relieved from our liability by reason of any such variation or extension being
granted to "the Supplier" or for any forbearance, act or omission on the part of
"the Corporation" or any indulgence by "the Corporation" to "the Supplier" or by
any such matter or things whatsoever which under the law relating to sureties
would but for this provision have the effect of relieving us.

5. However, it has been agreed between "the Supplier" and "the Corporation" that
there shall be only one Composite Bank Guarantee for both the advance and
security deposit performance guarantee/Retention Money @ of ____% valid till
the end of the defects liability period as per the terms of the P.O. No.
_______________ dated _____________ and that in proportion with the recovery of
advance @ ______% per bill the same amount/value automatically stands
credited to the defects liability account/security deposit or retention money as
the case may be and will continue to be credited/treated till the entire advance
of Rs._______________________ is fully recovered from the running bills and from
the date of full recovery of the advance of Rs.__________________ this guarantee
automatically, shall stand valid towards the ____% retention money/defects
liability, fully valid in all ® respects unto a further period of 3 (three) months,
as per the Purchase Order of "the Corporation".

6. Not withstanding anything contained herein above:

2
i) Our liability under this guarantee shall not exceed Rs..........

ii) This Bank Guarantee shall be valid upto and including .......; and

iii) We are liable to pay the guarantee amount or any part thereof under this
Bank Guarantee only and only if you serve upon us a written claim or demand
on or before the expiry of 30 days from the date of expiry of this guarantee.

7. We, ........................................ Bank further undertake not to revoke this


guarantee during its currency except with the previous consent of "the
Corporation" in writing.

8. We, ......................................... Bank lastly agree that "the Bank"'s liability


under this guarantee shall not be affected by any change in the constitution of
"the Supplier".

9. "The Bank" has power to issue this guarantee in favour of "the Corporation" in
terms of the documents and/or the Agreement/Contract or MOU entered into
between "the Supplier" and "the Bank" in this regard.

IN WITNESS WHEREOF the Bank has executed this document on this

............................. day of ...........................

For ........................ Bank

(by its constituted attorney)

(Signature of a person authorised

to sign on behalf of "the Bank")*

3
(SPECIMEN)

BANK GUARANTEE IN LIEU OF EARNEST MONEY


DEPOSIT

(On Non-Judicial stamp paper of appropriate value)

TO :

Hindustan Petroleum Corporation Limited

(Address as applicable)

IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM


CORPORATION LIMITED a Government of India Company
registered under the Companies Act, 1956, having its
registered office at 17,

Jamshedji Tata Road, Mumbai-20 (hereinafter called "The

Corporation" which expression shall include its successor in

Business andassigns) issued a tender on


M e s s e r s .
. a partnership firm/sole proprietor business/a
company registered u n d e r t h e C o m p a n i e s A c t , 1 9 5 6 h a v i n g
i t s o f f i c e a t (hereinafter called "the Tenderer" which expression shall
include its executors, administrators and assigns) against
Tender n o d a t e d ( h e r e i n a f t e r
c a l l e d "the tender" which expression shall include any
amendments/ alterations to "the tender" issued by "the Corporation")
for the supply of goods to/execution of services for "the Corporation"
and "the Corporation" having agreed not to insist upon immediate
payment of Earnest Money for the fulfilment of the said tender in terms
thereof on production of an acceptable Bank Guarantee for a n
a m o u n t o f R s ( R u p e e s only).

1. W e , B a n k h a v i n g o f f i c e
at ............................................................................... Mumbai

(hereinafter referred to as "the Bank" which expression shall


include its successors and assigns) at the request and on behalf
of "the Tenderer" hereby agree to pay to the Corporation without

any demur on first demand an amount not exceeding Rs ....................

(Rupees ................................................................ only) against any

4
loss or damage, costs, charges and expenses caused to or suffered
by "the Corporation" by reason of non performance and
fulfillmentor for any breach on the part of "the Tenderer" of any
of the terms and conditions of the said "tender".

2 . W e, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank further
agree that "the Corporation" shall be sole Judge whether the
said "Tenderer" has failed to perform or fulfill the said
"tender" in terms thereof or committed breach of any of the
terms and conditions of "the order" and the extent of loss,
damage, cost, charges and expenses suffered or incurred or
would be suffered or incurred by "the Corporation" on account
thereof and we waive in favour of "the Corporation" all the
rights and defences to which we as guarantors and/or "the
Tenderer" may be entitled to.

3 . We, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank further agree that


the amount demanded by "the Corporation" as such shall
be final and binding on "the Bank" as to "the Bank" 's liability
to pay and the amount demanded and "the Bank" to
undertake to pay "the Corporation" the amount so demanded
on first demand and without any demur notwithstanding
any dispute raised by "the Tenderer" or any suit or other
legal proceedings including arbitration pending before any
court, tribunal or arbitrator relating thereto, our liability
under this guarantee being absolute and unconditional.

4 . W e , B a n k agree with "the


Corporation" that "the Corporation" shall have the fullest
liberty without our consent and without affecting in any
manner our obligations hereunder to vary any of the terms
and conditions of the said "tender"/or to extend time of
performance by "the Tenderer" from time to time or to
postpone for any time to time any of the powers exercisable
by "the Corporation" against "the Tenderer" and to forbear
to enforce any of the terms and conditions relating to
"the tender" and we shall not be relieved from our liability
by reason of any such variation or extension being granted
to "the Tenderer" or for any forbearance, act or ommission
on the part of "the Corporation" or any indulgence by
"the Corporation" to "the tenderer" or by any such matter or
things whatsoever which under the law relating to sureties
would but for this provision have the effect of relieving us.

5. NOTWITHSTANDING anything hereinbefore contained, our


liability under this Guarantee is restricted to Rs . ..............................

( R u p e e s o n l y ) .
O u r liability under this guarantee shall remain in
force until expiration of 90 days ( 60 days + 30 days as extra
claim period) from the due date of opening of the said

5
"tender". Unless a demand or claim under this guarantee is
made on us in writing within said period, that is, on or
b e f o r e a l l r i g h t s
o f "the Corporation" under the said guarantee shall be
forfeited and we shall be relieved and discharged from all
liabilities thereunder.

6. W e , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank further
undertake not to revoke this guarantee during its currency
except with the previous consent of "the Corporation" in
Writing.

7. W e , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank lastly
agree that "the Bank" 's liability under this guarantee shall not
be affected by any change in the constitution of "the
Tenderer".

8. "The Bank" has power to issue this guarantee in favour of


"the Corporation" in terms of the documents and/or the
Agreement/Contract or MOU entered into between "the
Tenderer" and "the Bank" in this regard.

IN WITNESS WHEREOF the Bank has executed this


document on this ............................ day of ......................................

For ...................................... Bank

(by its constituted attorney)

(Signature of a person

authorised to sign on behalf of

"the Bank")

6
HINDUSTAN PETROLEUM CORPORATION LIMITED

INSTRUCTIONS TO THIS PUBLIC E- TENDER

(I) EARNEST MONEY DEPOSIT (EMD) :- IMPORTANT NOTE ::


EMD (original instrument) should be kept in a separate envelope
(super scribed with tender number, job & due date) and should be
deposited by tender due date and time, in the tender box provided in
the office of Senior Manager - Procurement at the below mentioned
address :

Hindustan Petroleum Corporation Limited, GGSRPEP Office, 8th Floor, Scope


Minar, Laxmi Nagar, Delhi – 110092. Tel: 011–22041341; Fax : 22041103

THE TENDERER WILL BE REQUIRED TO PAY A SUM AS SPECIFIED IN THE


E-TENDER, AS EARNEST MONEY DEPOSIT (EMD) ALONGWITH THE TENDER
EITHER THRU A CROSSED DEMAND DRAFT OR A NON-REVOKABLE BANK
GUARANTEE VALID FOR 120 DAYS FROM THE DUE DATE OR EXTENDED
DUE DATE OF TENDER WHICHEVER IS LATER IN FAVOUR OF HINDUSTAN
PETROLEUM CORPORATION LIMITED, FROM ANY SCHEDULED BANK
(OTHER THAN A CO-OPERATIVE BANK) PAYABLE AT NEW DELHI IN
FAVOUR OF HINDUSTAN PETROLEUM CORPORATION LIMITED, NEW DELHI
IN THE PROFORMA ENCLOSED. THE EARNEST MONEY DEPOSIT WILL BE
REFUNDED AFTER FINALISATION OF THE CONTRACT.

NOTE: PUBLIC SECTOR ENTERPRISES AND SMALL SCALE UNITS


REGISTERED WITH NATIONAL SMALL SCALE INDUSTRIES ARE EXEMPTED
FROM PAYMENT OF EARNEST MONEY DEPOSIT. SMALL SCALE UNITS
REGISTERED WITH NATIONAL SMALL SCALE INDUSTRIES SHOULD
ENCLOSE A PHOTOCOPY OF THEIR REGISTRATION CERTIFICATE WITH
THEIR QUOTATION TO MAKE THEIR QUOTATION ELIGIBLE FOR
CONSIDERATION. THE REGISTRATION CERTIFICATE SHOULD REMAIN
VALID DURING THE PERIOD OF THE CONTRACT THAT MAY BE ENTERED
INTO WITH SUCH SUCCESSFUL BIDDER. SUCH TENDERERS SHOULD
ENSURE VALIDITY OF THE REGISTRATION CERTIFICATE FOR THE
PURPOSE.

IF ORIGINAL BID SECURITY (EMD AMOUNT) IN THE FORMAT EXPLAINED


ABOVE OR THE NSIC CERTIFICATE COPY IN CASE OF NSIC REGISTERED
PARTIES, DOES NOT REACH OUR OFFICE BEFORE DUE DATE & TIME OF
TENDER, BIDDERS OFFER WILL BE OUTRIGHTLY REJECTED.

PURCHASE PREFERENCE TO NSIC REGISTERED PARTIES & PUBLIC


SECTOR UNITS WILL BE IMPLEMENTED, IF APPLICABLE AS PER GOI
POLICY.

Page 1 of 4
HINDUSTAN PETROLEUM CORPORATION LIMITED

(II) IMPORTANT NOTE FOR FILLING THIS ONLINE TENDER(E-TENDER)

(1) BIDDERS SHOULD ONLY QUOTE UNIT BASIC RATE IN THE ONLINE PRICED BID
FORMAT. PLEASE DO NOT QUOTE / MENTION RATES ANYWHERE ELSE IN THE
TENDER OTHER THAN PRICE BID. IN CASE BIDDERS QUOTE RATES AT ANY
OTHER PLACE (OTHER THAN PRICE BID), THE RATES QUOTED IN PRICE BID
SHALL ONLY BE CONSIDERED FOR EVALUATION. IN CASE, BIDDER HAPPENS
TO BE LOWEST BASIS ABOVE EVALUATION, THE LOWER OF TWO RATES
(MENTIONED BY BIDDER AT ANY OTHER PLACE AND RATES MENTIONED IN
PRICE BID) SHALL BE APPLICABLE FOR AWARDING THE JOB.

(2) BIDDERS SHOULD ONLY QUOTE UNIT BASIC RATE IN THE ONLINE PRICED BID
FORMAT. HOWEVER, ALL TAXES, WCT, VAT, DUTIES, TRANSPORTATION,
CESS , SERVICE TAX, ANY OTHER TAXES ETC AS APPLICABLE FOR THE
TENDER SHALL BE QUOTED IN THE TECHNO COMMERCIAL SECTION ONLINE
BY THE BIDDERS.

(3) HOWEVER, IF ANY BIDDER WANTS TO QUOTE RATE INCLUSIVE OF ALL


TAXES/DUTIES/CESS THEN THEY SHOULD QUOTE THEIR ALL INCLUSIVE
UNIT DELIVERED RATE IN THE ONLINE PRICED BID FORMAT & NECESSARILY
PUT ZERO(0) AGAINST ALL THE ROWS APPERAING FOR
TAXES/DUTIES/CESS/SERVICE TAX etc. IN THE ONLINE TECHNO
COMMERCIAL SECTION.

(4) BIDDERS ARE CAUTIONED THAT IF THEY QUOTE ALL INCLUSIVE UNIT
DELIVERED RATE IN THE ONLINE PRICED BID FORMAT & ALSO FILL THE
TAXES/DUTIES/CESS/SERVICE TAX etc ROWS IN THE ONLINE TECHNO
COMMERCIAL SECTION , THEN IT WILL BE CONSIDERED THAT THEIR
QUOTED UNIT RATES IN ONLINE PRICED BID SECTION ARE EXCLUDING
TAXES/DUTIES/CESS etc & RATES QUOTED IN ONLINE TECHNO COMMERCIAL
SECTION ARE TO BE PAID EXTRA.

(5) BIDDERS TO QUOTE CONSIDERING CST/VAT/SALES TAX IN CASE APPLICABLE


AT FULL RATES SINCE FOR THIS TENDER HINDUSTAN PETROLEUM
CORPORATION LIMITED SHALL NOT ISSUE “C” FORM.

(6) Offer Validity: - BIDS SHOULD BE VALID FOR 120 DAYS FROM THE DUE
DATE/EXTENDED DUE DATE OF TENDER WHICHEVER IS LATER.

Page 2 of 4
HINDUSTAN PETROLEUM CORPORATION LIMITED

(7) Request for extension of tender submission due date, if any, should reach us
before 48 hours of due date / time of Tender. Any request received after that
may not be considered.

(8) WITHDRAWAL OF BIDS AFTER DUE DATE/EXTENDED DUE DATE OF TENDER


OR CHANGE OF PRICED QUOTATIONS AFTER DUE DATE/EXTENDED DUE
DATE OF TENDER WITHOUT CONSENT OF HPCL, WILL LEAD TO
CANCELLATION OF TENDER & FORFEITURE OF BID SECURITY (EMD) AMOUNT
SUBMITTED BY VENDORS.

(9) ANY CHANGE IN STATUTORY TAXES /DUTIES DURING CONTRACTUAL


DELIVERY PERIOD WILL BE REIMBURSED/RECOVERED TO THOSE VENDORS
ONLY WHO HAVE QUOTED TAXES & DUTIES SEPARATELY.

(10) Wherever possible, payment shall be tendered to the contractor in


electronic mode (e-payment) through any of the designated banks. The
contractor will comply by furnishing full particulars of Bank account (mandate)
to which the payments will be routed. Owner reserves the right to make
payment in any alternate mode also.

 IN CASE THE ORDER IS FINALISED ON YOU AND THE MANDATE FOR


PROCESSING E-PAYMENT HAS NOT BEEN SUBMITTED BY YOU, THEN THE
PAYMENT MAY NOT BE EFFECTED TILL THE SUBMISSION OF E-MANDATE BY
YOU AND UPDATION OF NECESSARY AT OUR END. ANY CONSEQUENT DELAYS
IN PAYMENT WILL BE TO YOUR ACCOUNT AND HPCL SHALL NOT BE
RESPONSIBLE FOR THE SAME.

 IN CASE THE E-MANDATE HAS BEEN SUBMITTED EARLIER THE SAME IS


NOT REQUIRED TO BE RE-SUBMITTED.

(11) BID CLARIFICATIONS/AMENDMENTS BY HPCL

i) HPCL may issue clarifications / amendments in the form of online addendum /


corrigendum and on Message Board at http://eproc.hpcl.co.in during the
bidding period and may also issue amendments subsequent to receiving the bids.
Bidders shall consider the addendum/corrigendum/Messages on Message Board
while quoting for the tender .
ii) Bidders shall examine the Bidding Document thoroughly and submit to HPCL any
apparent conflict, discrepancy or error. HPCL shall issue appropriate clarifications
or amendments, if required. Any failure by Bidder to comply with the aforesaid
shall not excuse the Bidder from performing the Services in accordance with the
contract if subsequently awarded

Page 3 of 4
HINDUSTAN PETROLEUM CORPORATION LIMITED

(12) In case of any queries pertaining to this tender, please direct the same to:

Ms. Vijaya Priyadarshini (Officer- Procurement - RKPL)


(Phone:- 011 22408444) e-mail id : [email protected]
OR
Shri Sukanta Das (Manager- Procurement-GGSRPEP)
(Phone:- 011 22408406) e-mail id : [email protected]
Address:-
Hindustan Petroleum Corporation Limited, GGSRPEP Office, 8th Floor, Scope
Minar, Laxmi Nagar, Delhi – 110092. Tel: 011–22041341; Fax : 22041103.

Page 4 of 4

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