ATTACHMENT TO TENDER ENQUIRY NO. 10000041-HA-11358 DT. 04.08.2010

GENERAL TERMS & CONDITIONS

1. THE CONTRACTOR WILL COMMENCE THE WORK IMMEDIATELY AFTER THE DATE OF RECEIPT OF INTIMATION AND WILL COMPLETE THE SAMEAS MENTIONED BY HPCL. IF THIS IS NOT COMPLIED WITH, THE COMPANY WILL HAVE THE RIGHT TO GET THE WORK COMPLETED THROUGH SOME OTHER AGENCY AT THE CONTRACTOR’S COST AND RISK.

2. THE CONTRACTOR SHALL BE LIABLE TO PAY PENALTY OF 0.5 % OF THE TOTAL COST OF THIS PROJECT PER WEEK OR PART THEREOF SUBJECT TO A MAXIMUM OF 5 % FOR ANY DELAY DUE TO CONTRACTOR’S FAULT OVER THE SPECIFIED COMPLETION DATE WITHOUT PREJUDICE TO THE OTHER CONDITIONS AS SPECIFIED IN THE COMPLETION DATE CLAUSE. HPCL SHALL BE THE SOLE JUDGE TO DETERMINE WHETHER REASONS PUT FORTH BY THE CONTRACTOR FOR DELAY ARE ACCEPTABLE.

3. AS SOON AS THE WORK IS COMPLETED, THE CONTRACTOR SHALL SUBMIT HIS BILL THROUGH THE OFFICER IN CHARGE OF THE WORK. THE DATE OF COMPLETION OF WORK WILL BE NOTED IN THE BILL AND THE SAME WILL BE ENDORSED BY THE OFFICER INCHARGE OF THE WORK. ANY DEFECT IN THE WORK WHICH IN THE OPINION OF THE COMPANY, IS DUE TO THE FAULT OF THE CONTRACTOR WILL BE SET RIGHT BY THE CONTRACTOR AT HIS EXPENSE WITHIN A PERIOD OF TWELVE MONTHS FROM THE DATE OF COMPLETION OF THE WORK. NO PART PAYMENT WILL BE MADE ON ANY INDIVIDUAL ITEM OF WORK.

4. IF DURING THE CONTRACT PERIOD, IT IS FOUND NECESSARY TO CARRY OUT CERTAIN ITEMS OF WORK OF INCIDENTAL NATURE, THE RATES FOR WHICH ARE NOT COVERED BY THE SCHEDULE THE RATES, THE CONTRACTOR WILL TENDER HIS RATES SUPPORTED BY SUFFICIENT DATA, FOR ACCEPTANCE BY THE CORPORATION.

5. THE CONTRACTOR WILL AHDERE TO THE TIMINGS OF OUR LOCATIONS AND WILL OBSERVE PRECAUTIONARY MEASURES THAT ARE NECESSARY TO WORK INSIDE A PETROLEUM INSTALLATION. SIMILARLY, IN THE EXISTING SERVICE STATION WHERE THE CONTRACTOR IS CALLED UPON TO CARRY OUT WORK, HE WILL SO ORGANIZE THE WORK THAT NORMAL BUSINESS OF THE STATION IS NOT INTERRUPTED.

6. THE CONTRACTOR SHALL AT HIS OWN COST EMPLOY DURING THE PERIOD OF CONTRACT A COMPETENT PERSON TO GET OUT THE WORK IN DETAIL AND TO DIRECT THE WORK AND THE PERSON SO APPOINTED SHALL BE UNDER THE CONTROL OF THE COMPANY, THEIR ENGINEER OR ASSISTANT.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 2 :

7. IF DURING THE PERIOD OF CONTRACT IT IS FOUND THAT THE CONTRACTOR RECEIVES MORE THAN TWO LETTERS FROM THE COMPANY FOR UNSATISFACTORY WORK AND DOES NOT FULFILL HIS OBLIGATIONS IN RESPECT OF THE WORK ENTRUSTED TO HIM AS PER THE ABOVE TERMS AND CONDITIONS, THE COMPANY HAS THE RIGHT TO TERMINATE THE CONTRACT AND HAVE THE WORK CARRIED OUT THROUGH SOME OTHER AGENCY AT THE CONTRACTOR’S RISK.

8. THE SPECIFICATIONS OF ALL MATERIALS, TOOLS, WORKMANSHIP AND METHOD OF CARRYING OUT THE JOB WILL BE AS PER RELEVANT I S CODES AND ANY REVISIONS THEREOF.

9. THE CONTRACTOR SHALL AGREE TO PROVIDE AT HIS COST ALL SUPERVISION, LABOUR, MATERIAL AND ARTICLES OF EVERY KIND, WHETHER FOR TEMPORARY OR PERMANENT USE WHICH MAY BE CONSIDERED BY THE COMPANY AS NECESSARY TO THE PROPER PERFORMANCE AND COMPLETION OF THE WORK AND THE SAME SHALL BE OF THE BEST KIND AND DESCRIPTION OR OF SUCH OTHER KIND AND DESCRIPTION AS SHALL BE APPROVED BY THE COMPANY AND THE COMPANY SHALL HAVE THE RIGHT TO REJECT ANY MATERIAL ARTICLES OR THINGS BOUGHT ON THE WORKS WHICH IN THEIR OPINION IS NOT OF THE REQUIRED QUALITY OR DESCRIPTION AND THE CONTRACTOR SHALL OBTAIN SUCH MATERIAL, ARTICLES OR THINGS OF THE REQUIRED QUALITY AND DESCRIPTION TO REPLACE THE MATERIAL, ARTICLES OR THINGS REJECTED BY THE COMPANY.

10. THE CONTRACTOR SHALL AGREE TO KEEP THE COMPANY INDEMNIFIED AND SAVE THE COMPANY HARMLESS FROM ANY AND ALL CLAIMS WHATSOEVER WHETHER FOR DAMAGES/COSTS OR OTHERWISE ARISNG FROM INJURIES OR ALLEGED INJURIES OR DEATH OF A PERSON WHATSOEVER (INCLUDING COMPANY’S REPRESENTATIVES AND EMPLOYEES) OR DAMAGES OR ALLEGED DAMAGES TO PROPERTY.

11. THE CONTRACTOR SHALL NOT LET OUT OR SUB CONTRACT ANY WORK OR PART OF WORK ENTRUSTED TO HIM EXCEPT WITH THE WRITTEN CONSENT FROM THE COMPANY.

12. THE CONTRACTOR SHALL AGREE TO MAINTAIN SUCH INSURANCES AS WILL FULLY AND ADEQUATELY PROTECT HIM FROM CLAIMS UNDER THE WORKMEN’S COMPENSATION ACT AND/OR UNDER ANY AMENDMENT THEREOF AND FROM CLAIMS OR DAMAGES WHATSOEVER FOR INJURIES TO OR DEATH OF ANY PERSON WHATSOEVER (INCLUDING EMPLOYEE OF THE COMPANY) WHICH MAY ARISE FROM OPERATION UNDER THIS AGREEMENT WHETHER SUCH OPERATIONS BE BY THE CONTRACTOR OR ANY ONE DIRECTLY OR INDIRECTLY EMPLOYED BY THE CONTRACTOR.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 3 :

13. THE CONTRACTOR IS FULLY RESPONSIBLE FOR PAYING THE MINIMUM WAGES APPLICABLE TO THE AREAS AND MUST ALSO FULFILL THE OBLIGATIONS UNDER THE LABOUR LAWS SUCH AS ESIC ACT, EMPLOYEES PROVIDENT FUND ACT, WORKMEN’S COMPENSATION ACT, FACTORIES ACT, CONTRACT LABOUR ACT, ETC. THE CONTRACTOR MUST INDICATE HIS ESTABLISHMENT CODE NUMBER UNDER THE ESI/EPF ACT. IN ALL CASES WHERE AN ESIC OR EPF CLAIM IS LODGED ON HPCL BY THE DEPARTMENT CONCERNED ON FAILURE OF THE CONTRACTOR TO PAY THE ESIC/EPF DUES AS REQUIRED UNDER THE MANDATORY GOVERNMENT PROVISIONS.

14. TAXES, DUTIES ETC.

THE CONTRACTOR ACCEPTS FULL AND EXCLUSIVE LIABILITY FOR PAYMENT OF ANY AND ALL TAXES, DUTIES, RATES, LESS, LEVIES AND STATUTORY PAYMENTS PAYABLE UNDER ALL OR ANY OF THE STATUES ETC. NOW OR HEREAFTER IMPOSED, INCREASED FROM TIME TO TIME IN RESPECT OF WORKS AND MATERIALS AND ALL CONTRIBUTIONS AND TAXES FOR UNEMPLOYMENT COMPENSATION, INSURANCE AND OLD AGE PENSIONS OR ANNUITIES NOW OR HEREAFTER IMPOSED BY CENTRAL OR STATE GOVERNMENT AUTHORITIES WHICH ARE IMPSOED WITH RESPECT TO OR COVERED BY THE WAGES, SALARIES OR OTHER COMPENSATIONS PAID TO THE PERSONS EMPLOYED BY THE CONTRACTOR AND THE CONTRACTOR SHALL BE RESPONSIBLE FOR THE COMPLIANCE WITH ALL OBLIGATINS AND RESTRICTIONS IMPOSED BY THE LABOUR LAW OR ANY OTHER LAW AFFECTING EMPLOYER-EMPLOYEE RELATIONSHIP AND THE CONTRACTOR FURTHER AGREES TO COMPLY AND TO SECURE THE COMPLIANCE OF ALL SUB-CONTRACTORS WITH ALL APPLICABLE CENTRAL, STATE, MUNICIPAL AND LOCAL LAWS AND REGULATIONS AND REQUIREMENTS OF ANY CENTRAL, STATE OR LOCAL GOVERNMENT AGENCY OR AUTHORITY. CONTRACTOR FURTHER AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS VIOLATION BY CONTRACTOR OR SUB CONTRACTOR OF SUCH LAWS, REGULATIONS OR REQUIREMENTS AND ALSO FROM ALL CLAIMS; THE WORK PROVIDED FOR BY THIS CONTRACT BY THIRD PARTIES, OR BY CENTRAL OR STATE GOVERNMENT AUTHORITIY OR ANY ADMINISTRATIVE SUB DIVISION THEREOF. THE CONTRACTOR FURTHER AGREES THAT IN CASE ANY SUCH DEMAND IS RAISED AGAINST THE OWNER, AND OWNER HAS NO WAY BUT TO PAY AND PAY/MAKES PAYMENT OF THE SAME, THE OWNER SHALL HAVE THE RIGHT TO DEDUCT THE SAME FROM THE AMOUNTS DUE AND PAYABLE TO THE CONTRACTOR. THE CONTRACTOR SHALL NOT RAISE ANY DEMAND OR DISPUTE IN RESPECT OF THE SAME BUT MAY HAVE RECOURSE TO RECOVER/RECEIVE FROM THE CONCERNED AUTHORITIES ON THE BASIS OF THE CERTIFICATE OF THE OWNER ISSUED IN THAT BEHALF.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 4 :

THE RATES QUOTED SHOULD BE INCLUSIVE OF ALL RATES, CESS, TAXES AND SALES TAX ON WORKS CONTRACT WHEREVER APPLICABLE. HOWEVER, WHEREVER THE SALES TAX ON WORKS CONTRACT IS APPLICABLE AND IS TO BE DEDUCTED AT SOURCE, THE SAME WILL BE DEDUCTED FROM THE BILLS OF THE CONTRACTOR AND PAID TO THE CONCERNED AUTHORITIES. THE PROOF OF SUCH PAYMENT OF SALES TAX ON WORKS CONTRACT WILL BE FURNISHED TO THE CONTRACTOR.

INCOME TAX WILL BE DEDUCTED AT SOURCE AS PER RULES OF PREVAILING RATES, UNLESS CERTIFICATE, IF ANY, FOR DEDUCTION AT LESSER RATE OR NIL DEDUCTION IS SUBMITTED BY THE CONTRACTOR FROM APPROPRIATE AUTHORITY.

15. THE RATES QUOTED BY YOU SHALL BE FINAL & INCLUSIVE OF ALL APPLICABLE TAXES UNLESS & UNTIL SPECIFICALLY MENTIONED IN THE DESIGNATED SPACE FOR ADDL. TAXES IN THE TENDER DOCUMENT. NO OTHER CLAIM WITH REGARD TO VARIATION IN RATES AND TAXES SHALL BE ENTERTAINED AFTER FINALISATION OF TENDER.

16. OCTROI : OCTROI PAYMENT IF ENCOUNTERED DURING EXECUTION OF WORK WILL BE REIMBURSED TO THE PARTY ON PRODUCTION OF DOCUMENTARY EVIDENCE/PROOF.

17. HPCL SHAL RETAIN 10 % FROM THE BILLS AS RETENTION MONEY WHICH SHALL BE RELEASED AFTER ONE YEAR OF THE COMMISSIONING OF THE COMPLETED PROJECT AND ITS TROUBLE FREE SERVICE WHICHEVER IS LATER OR ELSE AS MENTIONED IN THE PO OR PARTY SHOULD SUBMIT PERFORMANCE BANK GUARANTEE IN THE STANDARD FORMAT FOR 10 % OF PURCHASE ORDER VALUE WHICH SHOULD BE SUBMITTED ALONG WITH THE BILLS AND SHOULD BE VALID FOR ONE YEAR.

18. PAYMENT TERMS : 30 DAYS FROM THE DATE OF RECEIPT OF MATERIAL/ COMPLETION OF ACTIVITY VIDE MRR DULY CERTIFIED BY HPCL’S RESPRESENTATIVE.

OR

15 DAYS FROM RECEIPT OF THE CERTIFIED BILL ALONG WITH PROOF OF

DELIVERY TO HPCL DISBURSEMENT SECTION, PUNE WHICHEVER IS

LATER.

19. RUNNING ACCOUNT BILLS : PAYMENT WILL BE MADE AGAINST RUNNING ACCOUNT BILLS CERTIFIED BY HPCL’S ENGINEER INCHARGE/SITE INCHARGE WITHIN 15 DAYS FROM THE DATE OF RECEIPT OF THE CERTIFIED BILL BY THE DISBURSEMENT SECTION OF HPCL, PUNE.

20. WHETHER ANY POWER REQUIRED FOR EXECUTIONS OF JOBS COVERED IN THE PURCHASE ORDER HAS TO BE ARRANGED BY CONTRACTOR AT HIS COST IF NOT SPECIFIED OTHERWISE IN TENDER SPECIFICATINS.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 5 :

21. THE TENDERER WITH WHOM THE CONTRACTOR IS DECIDED TO BE ENTERED INTO AND INTIMATION IS SO GIVEN WILL HAVE TO MAKE A SECURITY DEPOSIT OF ONE PERCENT (1 %) OF THE TOTAL CONTRACT VALUE IN THE FORM OF A/C PAYEE DEMAND DRAFT IN FAVOUR OF HPCL PAYABLE AT PUNE WITHIN 7 DAYS FROM THE DATE OF INTIMATION OF ACCEPTANCE OF THEIR TENDER, FAILING WHICH HPCL RESERVES THE RIGHT TO CANCEL THE CONTRACT.

22. ARBITRATION CLAUSE : ANY DISPUTE OR DIFFERENCE OF ANY NATURE

WHATSOEVER OR REGARDING ANY RIGHTS, LIABILITY, ACT, OMMISSION OR ACCOUNT OF ANY OF THE PARTIES HERETO ARISING OUT OF OR IN RELATION TO AGREEMENT/CONTRACT SHALL BE REFERRED TO THE SOLE ARBITRATION OF THE CHAIRMAN AND MANAGING DIRECTOR/DIRECTOR (M) OF THE CORPORATION OR SOME OFFICER OF THE CORPORATION WHO MAY BE NOMINATED BY THEM. THE CONTRACTOR WILL NOT BE ENTITLED TO RAISE ANY OBJECTION TO THE APPOINTMENT OF SUCH AN OFFICER OF THE CORPORATION AS THE SOLE ARBITRATOR ON THE GROUND THAT THE SAID OFFICER IS AN OFFICER OF THE CORPORATION OR THAT HE/SHE HAS TO DEAL OR DEALT WITH THE MATTER WHICH THE CONTRACT RELATES OR THAT IN THE COURSE OF HIS DUTIES AS AN OFFICER OF THE CORPORATION HE/SHE HAS/HAD EXPRESSED VIEWS ON ALL OR ANY OF THE AMTTERS IN DISPUTE OR DIFFERENCE. IN THE EVENT OF THE ARBITRATION TO WHOM THE MATTER IS ORIGINALLY REFERRED TO BEING TRANSFERRED OR VACATING HIS/HER OFFICE OR BEING UNABLE TO ACT FOR ANY REASONS, THE CHAIRMAN AND MANAGING DIRECTOR AND/OR DIRECTOR (M) AS AFORESAID SHALL RESIGNATE ANOTHER OFFICER TO ACT AS AN ARBITRATOR. SUCH AN OFFICER SHALL BE ENTITLED TO PROCEED WITH THE REFERENCE FROM POINT AT WHICH IT WAS LEFT BY HIS PREDECESSOR. IT IS ALSO A TERM OF THIS CONTRACT THAT NO PERSON OTHER THAN THE CHAIRMAN AS AFORESAID SHALL ACT AS AN ARBITRATOR.

THE AWARD OF THE ABRITRATOR SHALL BE FINAL, CONCLUSIVE AND BINDING ON ALL THE PARTIES TO THE AGREEMENT SUBJECT TO THE PROVISIONS OF THE ARBITRATION ACT, 1940, AND THE RULE MADE THEREUNDER FOR THE TIME BEING IN FORCE SHALL APPLY TO THE ARBITRATION PROCEEDINGS UNDER THIS CLAUSE.

THE AWARD SHALL BE MADE IN WRITING AND PUBLISHED BY THE ARBITRATOR WITHIN 6 MONTHS AFTER ENTERING UPON THE REFERENCE OR WITHIN SUCH EXTENDED TIME NOT EXCEEDING FURTHER FOUR MONTHS AS THE SOLE ARBITRATOR SHALL BY IN WRITING UNDER HIS OWN HAND APPOINT, THE ARBITRATOR SHALL HAVE POWER TO ORDER AND DIRECT EITHER OF THE PARTIES TO ABIDE BY, OBSERVE AND PERFORM ALL SUCH DIRECTIONS AS THE ARBITRATOR MAY THINK FIT HAVING REGARD TO THE FACT THAT THE ARBITRATION PROCEEDINGS HAVE TO BE COMPLETED WITHIN THE SPECIFIED PERIOD SOLELY ON THE PRINCIPLES OF NATURE JUSTICE.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 6 :

THE ARBITRATOR SHALL BE AT LIBERTY TO APPOINT IF NECESSARY, ANY ACCOUNTANT OR ENGINEERING OR TECHNICAL PERSON TO ASSIST HIM, AND TO ACT BY THE OPINION SO TAKEN.

THE ARBITRATOR SHALL HAVE POWER TO MAKE ONE OR MORE AWARDS WHETHER INTERIM OR OTHERWISE IN RESPECT OF THE DISPUTE AND DIFFERENCE AND IN PARTICULAR WILL BE ENTITLED TO MAKE SEPARATE AWARS IN RESPECT OF CLAIMS OR CROSS CLAIMS OF THE PARTIES.

THE ARBITRATOR SHALL BE ENTITLED TO DIRECT ANY OF THE PARTIES TO PAY THE COST OF THE OTHER PARTY IN SUCH A MANNER AND TO SUCH AN EXTENT AS THE ARBITRATOR MAY IN HIS DISCRETION DETERMINE AND SHALL ALSO BE ENTITLED TO REQUIRE ONE OR BOTH THE PARTIES TO DEPOSIT THE FUNDS IN SUCH PROPORTION TO MEET THE ARBITRATION EXPENSES WHEREVER CALLED UPON TO DO SO.

THE PARTIES HEREBY AGREE THAT THE COURTS IN THE CITY OF PUNE ALONE SHALL HAVE JURISDICTION TO ENTERTAIN ANY APPLICATION OR OTHER PROCEEDINGS IN RESPECT OF ANYTHING ARISING UNDER THIS AGREEMENT AND ANY AWARD OR AWARDS MADE BY THE SOLE ARBITRATOR HEREUNDER SHALL BE FILED IN THE CONCERNED COURTS IN THE CITY OF PUNE ONLY.

23. THE PRICES QUOTED BY THE TENDERER SHALL BE FIRM DURING THE VALIDITY PERIOD OF SIX MONTHS AND ALSO DURING THE PERIOD OF CONTRACT INCLUDING PERIOD(S) OF EXTENSION OF TIME, IF ANY, AS STATED EARLIER. ESCALATION IN PRICES WILL NOT BE PERMITTED DURING THE SAID PERIOD. THE TENDERER SHALL PARTICULARLY TAKE NOTE OF THAT FACTOR BEFORE SUBMITTING THEIR TENDER (S).

24. HPCL HAS THE RIGHT TO SPLIT THE ITEMS/QUANTITIES MENTIONED IN THE BILL OF QUANTITIES AS PER THEIR DISCRETION TO ONE OR MORE VENDORS.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 7:

NOTE ON SERVICE TAX & VAT

Requirement for Service Tax Elements :

Please clearly mention in the tender enquiry, the name of the service head under which the Service Tax is being charged, % and amount of service tax to be charged from HPCL for the entire job. You should also mention the same on the invoices being raised on HPCL and also give the Service Tax Registration No. invariably on all bills/documents submitted.

Requirement for VAT Elements :

You should clearly indicate in the tender enquiry, the VAT rate and amount & the items for which the same is being charged. Needless to mention valid Tax invoice in the prescribed format is to be submitted to release payment. Please do comply with the requirement of tax invoices to avoid delay in correction at a later date.

Kindly raise bills for the items on which Service Tax is payable separately complying the above mentioned requirements. Similarly, all the supply items on which due VAT is applicable, the correct tax invoice as per Rules showing VAT element separately be submitted.

Further, in cases where both service tax and vat are applicable (for example works contract), kindly ensure to mention both the elements separately on tax invoices as mentioned above.

Also in some of the cases where transportation of our equipments are being handled by yourself, please ensure discharging the service tax liability wherever applicable. The same will be reimbursed on production of proof along with the bills. Please note that payment of service tax on all transportation bills as per rules (at present on above Rs. 1500/-) will be your responsibility and HPCL will not be responsible for the same.

We would like to request that the above requirement is followed invariably for all the tender documents/invoices submitted for our necessary consideration as per rules. However, wherever despite our clear instructions if any vendor fails to give information as requested above and it is found that the tender documents mentions that service tax and Vat will be charged extra, understanding of HPCL will be final as to the service tax and VAT elements & the same will be advised to you through Purchase Order & the same has to be accepted by you. To avoid any confusion, you are requested to kindly ensure as requested above.

Since the above is a part of our procedure for finalizing the L1 party, you should fill in the above details i.e Service Tax/Vat. In case the above is not given in the tender enquiry, the same is liable to be rejected without evaluation and HPCL will not be liable for same.

Further, in case it is mentioned that service tax & vat will be charged as actuals, the understanding of HPCL will be final and advised to you thru Purchase Order and the same is to be accepted by you.

We request you to fill in the above details clearly in all your documents as applicable so that all sorts of problems can be avoided at a later stage. The above is mandatory information for correct evaluation of tender enquiry and for placing the PO and to claim set off by HPCL.

______

SIGNATURE/RUBBER STAMP OF

THE BIDDER

: 8 :

INTEGRITY PACT :

Effective 1st September, 2007, all tenders and contracts shall comply with the requirements of the Integrity Pact (IP){ for proforma refer to Annexure below}, if the value of such tenders or contracts exceed Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid.

Grievances of parties participating or indent to participate in the tender shall be addressed in writing to the officer designate of the Grievance Redressal Cell where the tenders have to be submitted within the stipulated period . Detailed mechanism of Grievance Redressal is available on the HPCL website.