Documents Enclosed with the enquiry

Drawing no.(CESP-528-MIS-MEC-A-018-A1.R1) :Annexure – I

Special conditions of Contract :Annexure – II

GCC (Available in EPI’s website under the head ‘Tender’):Annexure – III

Annexure - II

SPECIAL CONDITIONS OF CONTRACT

1. GENERAL

These Special Conditions of Contract ( S C C ) cover Erection, Testing, Commissioning etc. of IBR Pipeline for SAC Plant, at Cordite Factory, Aruvankadu (CFA).

S C C shall be read in conjunction with purchaser’s general conditions of contract (GCC ), Technical Specifications, Drawings and Documents.

2. / SCOPE OF WORK
2.1 / SCOPE
A. Liaisoning with IBR authority including arrangement of inspection,
preparation and approval of steam pipeline from IBR Authority of site of
installation, installation of steam pipeline, Hydraulic tests etc. All
statutory charges shall be borne by the party.
B. Structural support fabrication, fixing including sliding and fixing support
for steam pipeline excluding materials
C. Supply of IBR steam header as per IBR request and drawing enclosed.
2.2 / TRANSPORTATION OF IBR PIPELINE AND FITTINGS:
Equipment will be loaded for transport from Cordite Factory’s Store at SAC Plant, Aruvankadu, transported near erection site, and unloaded near erection site by contractor at rates included in price schedule.
Contractor has to arrange trolley, cart, etc. of suitable size for transporting the materials
2.3 / FOR PIPING WORK:
Scope of work includes the Fabrication, Erection, Testing, Commissioning, Painting etc. of IBR pipelines cleaning, incorporating or fixing materials in the works, testing, etc as per ., as necessary including all preparatory work of whatever description, as per IBR approved drawings, specifications, codes of practice etc. or as directed by Purchaser's Engineer at Site.
2.4 / Lifting devices, hoists, ropes, tools, tackle, equipment, consumables, labour, supervision etc. required for the work are to be arranged by the contractor at his own expense.
2.5 / Fabrication and installation of packing plates is included in the scope of work.
2.6 / Painting of supports and structure with one coat of primer and two coats of finish paint (Paint will be supplied by EPI) are included in the scope of work.
2.7 / All tools, tackle, equipment(Welding Set, Gas Cutting Set), consumables (Welding Electrodes Gas etc), labour, supervision etc. required for the work are to be arranged by the Contractor at his own expense.
3. /

COVERAGE OF CONTRACT

The contract for the work is complete for labour, material and workmanship including all temporary works and the provision of all construction equipment, tools, tackle, consumables etc. The contractor shall make his own arrangement for all the materials required for due performance of the contract, except for items to be supplied by EPI to the contractor free of cost as provided expressly in this contract.
Except where it is expressly provided that the cost will be borne by EPI, the various obligations of contractor under the contract shall be at the cost of the contractor.
4. /

INSPECTION OF SITE

The tenderer is required to inspect the site and working conditions etc. before making his offer and having submitted an offer shall be deemed to have acquainted himself with the site conditions and obtained all information.
5. /

QUALITY

Materials and workmanship shall satisfy the relevant Indian Standards. In absence of relevant Indian Standard, specification/code of practice covering any part of the work, the instructions of Engineer-in-Charge will be binding on the contractor.

Regarding tolerances, methods of work and other technical details, contractor shall strictly follow the technical specification, manufacturer’s instruction, IBR approved drawings etc.

6. /

TIME OF COMPLETION

6.1 /

The entire work shall be completed within six weeks from the date of placement of order.

7. /

MOBILIZATION

Contractor shall mobilize manpower, machines, tools & tackle, etc., at site within seven days of date of receipt of Work Order/EPI’s notice for mobilization.
8. /

SCHEDULE OF MONITORING

The Contractor shall submit within 7 (seven) days of issue of LOI/Work order, a detailed work schedule in the form of Bar chart clearly indicating the milestones. The bar chart will be subject to review and approval by EPI.

9. /

SECURITY DEPOSIT

The contractor is required to furnish security deposit equal to 5 % (five percent) of total order value within 7 (seven) days from the date of receipt of LOI/Work Order for due and proper fulfillment of the contract. The Security Deposit is to be deposited in the form of an unconditional irrevocable Bank Guarantee from a Scheduled Bank in EPI’s proforma, valid till completion of the Job.

10. / LIQUIDATED DAMAGE FOR DELAY
In the event of delay on the part of the contractor in completing the work in all respects, the contractor shall pay to the purchaser, liquidated damages for delay at the rate of ½ % (half percent) of the total order value for every week of delay or part thereof subject to a maximum of 5% of the total order value.
11. /
PRICE
Rates shall be in detail. An unpriced copy of price schedule must be given with the technical bid. Payment shall be made for the quantity actually executed as per purchaser’s requirement, drawing/documents and on certification of the work done by EPI-engineer.
12. /

PRICE BASIS

Price of fabrication, erection & commissioning shall remain firm and fixed and no variation shall be acceptable on any account whatsoever till all obligations of the contractor under this contract are fulfilled in all respects.
13. /

TAXES & DUTIES

13.1 / The price is inclusive of all types of Taxes and Duties. Elements of Taxes and Duties and their rates to be indicated separately.
13.2 / The contractor shall be solely responsible for and pay all duties, levies and taxes lawfully assessed against the contractor or any or his employees or personnel engaged by him and shall hold the purchaser indemnified and harmless against any claims that may be made against the purchaser in this behalf.
13.3 / Deduction of Income Tax at source will be made as per rules.
14. /

TERMS OF PAYMENT

14.1 / For 2.1 A (IBR Approval)
i.  25% against permission from IBR authority
ii.  65% after installation
14.2 / For 2.1 B (Fabrication & Installation)
90% after installation
14.3 / For 2.1 C (Supply and Installation of IBR Steam Header)
90% after installation
14.4 / Balance 10% of the total order value shall be released after commissioning and certification from competent authority against submission of performance Bank Guarantee of equivalent amount as per EPI’s Format from a nationalized bank till expiry of defect liability period.
15. /

MODE OF PAYMENT

Payment shall be made through Electronic Fund Transfer (EFT) System. All payments in connection with this work will be made through Electronic Fund Transfer System under which EPI will transfer fund to Contractor having Bank Account with any of the participating Commercial Bank. Party is required to provide Bank A/C No. & RTGS No.
16. /

QUANTITY VARIATION

The quantity finally required to be executed may vary. The rates are valid for variation of ( ± ) 20% of total order value on account of quantity variation.
17. /

METHODOLOGY

Contractor shall submit within 10 (ten) days of date of issue of LOI / PO, details of all materials and methods proposed to be used in the work, for purchaser’s approval. The work shall be carried out strictly according to the approval given by purchaser.
18. / ESCALATION, IDLE TIME ETC.
Escalation, idle time and interest charges on any account whatsoever shall not be payable to the contractor.
19. /

ISSUE OF MATERIALS

19.1 / EPI will issue the materials from CFA’s stores within Cordite Factory premises the equipment to be erected, paints and made ready for testing and commissioning.
19.2 / Necessary indents for the materials shall be raised by contractor based on the drawing, BOM’s, layout etc.
19.3 / Materials will be issued only for the works under this contract and not for any other purpose.
19.4 / The contractor shall bear all other costs including lifting, safe custody and handling, transportation from CFA’s stores etc. and return of surplus serviceable/scrap materials to CFA’s store within the Cordite Factory premises.
19.5 / All materials issued to the contractor by EPI shall on completion of or on foreclosure of the works, be returned by the contractor at his expense, at the place of return designated by EPI, after making due allowance for actual erection and permissible wastage within the limits mentioned in this contract.
19.6 / All surplus unused/scrap material will be property of the EPI/CFA and shall be returned by the contractor at his own cost to CFA’s store. In case the contractor fails to do so then recovery for the unreturned quantity of materials will be made at penal rate which will be three times the landed cost as determined by EPI. The decision of Engineer Incharge on this will be final and binding upon the contractor.
19.7 / Wastage on fittings, valves, mechanical parts of instruments, equipment etc. will not be allowed.
Permissible wastage for raw materials such as pipes, steel plates and structural etc shall be limited to 10% of finished installed quantity, as follows:
a)  Irrecoverable @ 2% of finished installed quantity.
b) Recoverable @ 8% of finished installed quantity, to be returned to
Purchaser by Contractor.
20. /

INSURANCE

20.1 /

EPI shall take a composite insurance cover under Marine-cum-Erection Insurance Policy ( MCE) covering dispatch from warehouse of the supplier (overseas/inland) equipment in the course of ordinary transit upon arrival at the project site, while in storage and being erected till completion of testing.

20.2 / Contractor shall arrange insurance cover for workmen, construction equipment

etc. at his own expense.

21. /

CONSTRUCTION FACILITIES AT CFA,ARUVANKADU SITE

21.1 / Water required for the work will be made available on chargeable basis to the contractor at one point near the site as determined by the client. The contractor shall make his own arrangements for water meter and for drawing water from this point and further distribution at his own cost.
21.2 / Electric power will be made available to Contractor on chargeable basis at one point near the site as determined by the client. Energy meter, distribution switch boards, cables and their connections etc. shall be arranged. Installed and maintained by contractor, at his own cost. The electric installation shall conform to Indian Electricity Act 1910 and relevant rules with latest amendments.
21.3 / No other facilities / utilities will be provided to the contractor. If required, these are to be arranged by the contractor at his own expense.
22. /

DEFECTS LIABILITY PERIOD

22.1 / Defects liability period is 12 months from the date of taking over of plant by CFA, Aruvankadu
22.2 / During the defects liability period defined above, the contractor will be liable to make good any defect/replace defective parts whether arising from faulty materials or workmanship or erection or from any act of commission or omission of the contractor. All such rectification/replacement shall be done at site and return of the defective parts shall be arranged by the contractor at his own expense.
22.3 / Warranty for any defective parts or material requiring replacement or rectification by contractor shall extend until the expiry of 6 (six) months from the date of replacement or rectification by contractor or until the end of the period as per sub-clause (a) above, whichever is later and moreover the warranty period for the entire scope of work of the contractor under this order shall be extended by a period equal to the period during which the plant is out of action as result of defect covered by warranty.
23. /

TEST & INSPECTION

23.1 / All materials and works shall be subject to IBR/CFA/EPI’s examination and approval at each stage thereof and contractor shall give notice to the EPI when each stage is ready. Inspection of IBR Authority is to be arranged by the Party.
23.2 / Inspection shall be carried out by the EPI and CFA against an advance intimation. The inspection call, raised by contractor shall be accompanied by internal inspection reports, test certificates, materials test certificates and other relevant documents.
23.3 / Inspection or approval by CFA/EPI shall not relieve the contractor of any of his obligation under this contract. No certificate of the EPI shall by itself be conclusive evidence that any work or materials to which it relates are in accordance with the contract.
23.4 / The contractor shall arrange all equipment, instruments, tools, manpower etc, for and shall carry out the various tests as required that may be furnished to him during the performance of the work, at his own expense. All the tests either on the field or outside in laboratory etc. concerning the execution of the work and supply of materials by the contractor shall be carried out by the contractor at his own expense.
23.5 / The contractor shall use only tested and calibrated equipment, instruments, etc. for execution of work.
23.6 / Issue of inspection certificate will in no way exempt the contractor from his obligations.
24. /

LABOUR

The contractor shall comply with all requirements regarding labour as detailed at relevant clauses of GCC. Contractor shall submit regularly documents related to payment of wages, statutory obligation, Insurance under Workmen’s Compensation Act / ESI as may be applicable.

25. /

SAFETY

25.1 / The contractor shall comply with all requirements regarding safety as detailed at relevant clause of GCC.
25.2 / All statutory safety rules and regulations prevailing in the area and as prescribed by the company shall be observed by the contractor. The contractor shall be responsible for paying strict attention to statutory regulations for prevention of accidents and to other safety rules. The regulation for prevention of accidents shall be strictly followed.
25.3 / The contractor shall acquaint himself with all the relevant statutory regulations such as Indian Electricity Rules etc. and comply with the regulations.
25.4 / The contractor shall be responsible for safety arrangements and protective clothing for all operatives on the site whether or not engaged in actual operation or supervision. The contractor shall also be responsible for safety arrangements of all equipment used for construction and shall employ trend workmen conversant with safety regulation. The contractor shall use only tested equipment and tools and shall periodically renew tests. All test certificates shall be made available at the site of work.
26. /

WATCHING & LIGHTING