Seal of office

                    a) The Bidder must have experience on similar works executed during the last five years. Details                           like monetary value, clients, proof of satisfactory completion should be submitted for                            establishing eligibility.

                    b) Registration if any with specified deptts/organisations, class/type of registration.

                    c) Documentary evidence of adequate financial standing.

                    The employer would quantify the criteria as below.

Pre-qualification Information to be called for :-

                                    - cement concrete (including RCC and PSC) ……..cum

                                    - earthwork in both excavation and embankment

                                        (combined quantities)                                     ……..cum

                                    - ……………………………………                    ……..cum

                                    - ……………………………………                    ……..cum

                                    (usually 80% of the expected peak rate of construction)

*           Specify the financial years; they should be those immediately preceding the financial year which the                bids are received

B.       Each bidder should further demonstrate:

(a)      availability (either owned or leased or by procurement against mobilization advances) of the following key             and critical equipment for this work:

            -     ……………………………………….

            -     ……………………………………….

            -     ……………………………………….

            -     ……………………………………….

        Assessed Available Bid capacity = AxNx2-B, where

        'N' = Number of years prescribed for completion of the subject contract.

        'A'     maximum value of works executed in any one year during last five years (at current price level).

        'B' = Value at current price level of existing commitments and on going works to be completed in the next                    'N' years.

1. Each bidder shall submit only one bid for one package A bidder who submits or participates in more than one Bid (other than as a subcontractor or in cases of alternatives that have been permitted or requested) will cause all the proposals with the Bidder's participation to be disqualified.

6. Cost of Bidding

10.      Amendment of Bidding Documents

    10.1    Before the deadline for submission of bids, the Employer may modify the bidding documents by using                  addenda.

    10.2    Any addendum thus issued shall be part of the bidding documents and shall be communicated in                   writing or by cable to all the purchasers of the bidding documents. Prospective bidders shall                   acknowledge receipt of each addendum by cable to the Employer.

    10.3    To give prospective bidders reasonable time in which to take an addendum into account in preparing                   their bids, the Employer shall extend as necessary the deadline for submission of bids, in                       accordance with Sub-Clause 20.2 below.

11. Language of the Bid

11.1  All documents relating to the bid shall be in the English language.

12. Documents comprising the Bid

12.1    The bid submitted by the bidder shall comprise the following:

13. Bid Prices

13.1 The contract shall be for the whole works as described in Sub-Clause 1.1, based on the priced Bill of            Quantities submitted by the Bidder.

13.2 The bidder shall fill in rates and prices for all items of the Works described in the Bill of Quantities. Items            for which no rate or price is entered by the bidder will not be paid for by the Employer when executed           and shall be deemed covered by the other rates and prices in the Bill of Quantities. Corrections, if any,           shall be made by crossing out, initiating, dating and rewriting.

13.3 All duties, taxes, and other levies payable by the contractor under the contract, or for any other cause shall            be included in the rates, prices and total Bid Price submitted by the Bidder.

13.4* The rates and prices quoted by the bidder shall be fixed for the duration of the Contract and shall not be             subject to adjustment on any account.

OR

13.4* The rates and prices quoted by the bidder are subject to adjustment during the performance of the               Contract in accordance with the provisions of Clause 47 of the Conditions of Contract.

14.    Curriencies of Bid and Payment

14.1    The unit rates and the prices shall be quoted by the bidder entirely in Indian Rupees.

15. Bid Validity.

15.1 Bids shall remain valid for a period not less than twenty eight days after the deadline date for bid                 submission specified in Clause 20. A bid valid for a shorter period shall be rejected by the Employer as non-responsive

15.2 In exceptional circumstances, prior to expiry of the original time limit, the Employer may request that the bidders may extend the period of validity for a specified additional period. The request and the bidders' responses shall be made in writing or by cable. A bidder may refuse the request without forfeiting his bid security. A bidder agreeing to the request will not be required or permitted to modify his bid except as provided in 15.3 hereinafter, but will be required to extend the validity of his bid security, or a period of the extension, and in compliance with Clause 16 in all respects.

15.3 In the case of contracts in which the Contract Price is fixed (not subject to price adjustment), in the event that the Employer requests and the Bidder agrees to an extension of the validity period, the contract price, if the Bidder is selected for award shall be the bid price corrected as follows:

The price shall be increased by the factor (value of factor B) 1 for each week or part of a week that has elapsed from the expiration of the initial bid validity to the date of issue of letter of acceptance to the successful Bidder.

15.4 Bid evaluation will be based on the bid prices without taking into consideration the above correction

* Choose one and delete the other.

1 The value of B is based on the country's project inflation for the period in question. The Employer inserts the value in the bid documents prior to issue.

16 Bid Security

- Certified cheque or Bank draft in favour of …………….. payable at ………..

- ………………………………………………..

- ………………………………………………..

17 Alternative Proposals by Bidders

2. The envelopes shall

                (a)         be addressed to Employer at the following address:

                            - Bid for ………………………………….. [name of contract]

                            - Bid Reference No………………………… [insert number]

                            - DO NOT OPEN BEFORE …………….. [time and date for bid opening, per Clause 23]

                            - ORIGINAL / COPY

                            - Name and address of the bidder.

                    27.1 Bids determined to be responsive will be checked by the Employer for any arithmetic errors.                                Errors will be corrected by the Employer as follows:

29 Evaluation and Comparison of Bids

                    33.4 Upon the furnishing by the successful Bidder of the Performance Security, the Employer will                       promptly notify the other Bidders that their Bids have been unsuccessful and release their Bid                       security.

34. Performance Security

                    - Govt securities, FDR or any other form of deposit stipulated by Employer

                    -   _________________________

                    34.2 If the performance security is provided by the successful Bidder in the form of a Bank                       Guarantee, it shall be issued either (a) at the Bidder's option, by a Nationalised/Scheduled Indian                       bank or (b) by a foreign bank located in India and acceptable to the Employer.

                    34.3 Failure of the successful Bidder to comply with the requirements of Sub-Clause 34.1 shall                       constitute sufficient grounds for cancellation of the award of work and forfeiture of the Bid Security.

                    37.1 The Employer requires that Bidders/Suppliers/Contractors under this contract, observe the                       highest standard of ethics during the procurement and execution of this contract. In pursuance of                       this policy, the Employer:

                              (b) will reject a proposal for award of work if he determines that the Bidder recommended for                                 award has engaged in corrupt or fraudulent practices in competing for the contract in                                 question.

Description of the Works-------------------------------------------------------------------------------------------------------------

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----------------------------------------------------------------------------------------------------------------------------------------------1

To

------------------------------------------------------------------------------(the Employer)

Address -----------------------------------------------------------------

-------------------------------------------------------------------------------------------2

GENTLEMEN,

We offer to execute the Works described above in accordance with the Conditions of Contract accompanying this Bid for the Contract Price of______________(in figures)_______________________________(in letters)3

The advance payment required is Rupees_______________________________

We accept the appointment of___________________________as the conciliator

(OR)

We do not accept the appointment of_____________________as the conciliator and propose instead that ____________________________be appointed as conciliator whose daily fees and biographical data are attached.

This bid and your written acceptance of it shall constitute a binding contract between us. We understand that you are not bound to accept the lowest or any Bid you receive.

We undertake that, in competing for (and, if the award is made to us, in executing the above contract, we will strictly observe the laws against fraud and corruption in force in India namely " Prevention of Corruption Act 1988"

We hereby confirm that this Bid complies with the Bid Validity and Bid Security required by the Bidding documents.

We attach herewith our valid income-tax clearance certificate.

Yours faithfully,

Authorised Signature:

Name & Title of Signatory :__________________________________________

Name of Bidder :__________________________________________

Address :__________________________________________

Notes:

The information to be filled in by the Bidder in the following pages will be used for purposes of post qualification as provided for in Clause 4 of the Instructions to Bidders. This information will not be incorporated in the Contract.

…..B

Place of registration: ____________________________

…..B

Principal of place of business ____________________________

(Power of attorney of signatory of Bid

(Attach)

1.2.    Total value of Civil Nodal Officer or his nominee19—19-----------------

           implementation/constrction work performed in the 19—19----------------

           last five years**                19----19---------------------------------------

           (in Rs. Million)                   19—19---------------------------------------

                                                     19—19---------------------------------------

1.3.1    Work performed as prime contractor (in the same name) on works of a similar nature over the last five years. **

* Attach Certificate(s) from the Nodal Officer or his nominee(s) in-charge.

** immediately preceding the financial year in which bids are received

B Attach certificate from Chartered Accountant.

1.3.2 Quantities of work executed as prime contractor (in the same name and style) in the last five years. **

* Attach certificate(s) from the Nodal Officer or his nominee(s) -in-Charge.

Availability proposals

1.7 Proposed sub-contracts and firms involved {(Refer ITB Clause 4.3 (j)}

1.11 Information on litigation history in which the Bidder is involved.

          ---------------------------------------------------------------------------------------------------------------------------------------

3 Additional Requirements

(On letterhead paper of the Employer)

_________(date)

To: ______________________________________________(name and address of the Contractor)

Dear Sirs,

This is to notify you that your Bid dated_____________________for execution of the___________________ _____________________________________________(name of the contract and identification number, as given in the Instructions to Bidders) for the Contract Price of Rupees ___________________________________________________ (________________) (amount in words and figures as corrected and modified in accordance with the Instructions to Bidders is hereby accepted by our Agency.

You are hereby requested to furnish Performance Security, in the form detailed in para 34.1 of ITB for an amount of Rs.______ within 21 days of the receipt of this letter of acceptance valid upto 28 days from the date of expiry of taking over certificate subject to removal of defects Period i.e. upto ______and sign the contract, failing which action as stated in para 34.3 of ITB will be taken.

Please acknowledge receipt.

Yours faithfully,

Authorised Signature

Name and Title of Signatory

Name of Agency.

--------------------

1.    Delete "corrected and "or" and modified" if only one of these action applies. Delete "as corrected and           modified in accordance with the Instructions to Bidders" if corrections or modifications have not been            effected.

__________dated

To,

___________________ (name and address of the Contractors)

___________________

___________________

Dear Sirs,

Pursuant to your furnishing the requisite security as stipulated in ITB clause 34.1 and signing of the contract for the implementation/constrction of ______a Bid Price of Rs.__________ you are hereby instructed to proceed with the execution of the said works in accordance with the contract documents.

Yours faithfully

AGREEMENT FORM

Agreement

This agreement made the _______________ day of ____________to ________

between ________________________________________________________ ________________________ (name and address of Employer) (hereinafter called "the Employer)" and ___________________________________________

_________________________________________________name and address

of contractor) (hereinafter called "the Contractor"'of the other party).

Whereas the Employer is desirous that the Contractor executes ________________________________ _________________________________________________________________________________ (name and identification number of Contract) (hereinafter called "the Works") and the Employer has accepted the Bid by the Contractor for the execution and completion of such Works and the remedying of any defects therein, at a contract price of Rs…............................................................................................................

NOW THIS AGREEMENT WITNESSETH as follows:

1.    In this Agreement, words and expression shall assume the same meanings as are respectively assigned    to them in the Conditions of Contract hereinafter referred to and they shall be deemed to form and be read         and construed as part of this Agreement.

2.    In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned,   the Contractor hereby convenants with the Employer to execute and complete the Works and remedy the         defects therein in conformity in all aspects with the provisions of the Contract.

3.    The Employer hereby convenants to pay the Contractor in consideration of the execution and completion of  the Works and in the remedying the defects wherein the Contract Price or such other sum as may become        payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.

4.    The following documents shall be deemed to form and be read and construed as part of this Agreement,    Viz:

        i)         Letter of Acceptance;

        ii)        Notice to proceed with the works;

        iii)       Contractor's Bid

        iv)      Contract Data;

        v)        Conditions of contract (including Special Conditions of Contract);

        vi)       Specifications;

        vii)     Drawings;

        viii)    Bill of Quantities; and

        ix)      Any other documents listed in the Contract Data as forming part of the contract.

In witness whereof the parties have caused this Agreement to be executed the day and year first before written.

The Common Seal of ___________________________________________________________________

was hereunto affixed in the presence of:

Signed Sealed and Delivered by the said ____________________________________________________

____________________________________________________________________________________

________________________________________________________________

Binding Signature of Employer_____________________________________________________________

Binding Signature of Contractor ____________________________________________________________

in the presence of

____________________________________________________________________________________

____________________________________________________________________________________

CONDITIONS OF CONTRACT

                    Days are calendar days, months are calendar months.

               11     Employer's Risks

                    13      Insurance

                                a) loss of or damage to the Works, Plant and Materials

                                b) loss of or damage to Equipment;

                                c) loss of or damage of property (except the Works, Plant, Materials and Equipment) in                                       connection with the Contract; and

                                d) personal injury or death.

                    18     Approval by the Nodal Officer or his nominee.

                        21     Possession of the Site.

                                        --------------------------------------------------------

@ nominated institution such as ICA, Institution of Surveyors, Institution of Nodal Officer or his nominees,  CIDC, BAI etc.

                    26.1 Should the Conciliator resign or die, or should the Employer and the Contractor agree that the                      Conciliator is not fulfilling his functions in accordance with the provisions of the Contract. a new                      Conciliator will be jointly appointed by the Employer and the Contractor. In case of disagreement                      between the Employer and the Contractor, within 30 days the Conciliator shall be appointed by the                      Appointing Authorities designated in the Contract Data at the request of either party within 14 days                      of receipt of such request.

                            45.1     The rates quoted by the Contractor shall be deemed to be inclusive of the sales and                              other taxes that the Contractor will have to pay for the performance of this Contract. The                              Employer will perform such duties in regard to the deduction of such taxes at sources as per                              applicable law.

                                        47.3 To the extent that full compensation for any rise or fall in costs to the contractor is                                          not covered by the provisions of this or other clauses in the contract, the unit rates and                                          prices included in the contract shall be deemed to include amount to cover the                                          contingency of such other rise or fall in costs.

                    47.4     Subsequent Legislation

                    48.     Retention

                51. Advance payment

            51.6 Secured Advance:

                    52.1 Security deposit shall consist of two parts -

53.     Blank ( For providing special security condtions on the discretion of the owner)

    54.    Cost of Repairs

                55.     Completion

                    56.     Taking Over

                    58.     Operating and Maintenance Manuals

                    60.     Payment upon Termination.

Items marked "N/A do not apply in this Contract.

The following documents are also part of the Contract                                          Clause Reference

The Schedule of other contractors                                                                                          (8)

The Schedule of Key personnel                                                                                              (9)

The above insertions should correspond to the information provided in the Invitation of Bids.

The Employer is

Name of authorised Representative is ___________________________

The Nodal Officer or his nominee is

The Conciliator appointed jointly by the Employer and Contractor is:

The name and identification number of the Contract is

_______________________________________________________________

(insert name and number as indicated in the invitation for Bids ( or Prequalification, if any)

............................................................................................…………….                                      (1.1)

The works consist of _____________________________

(brief summary, including relationship to other contracts under the Project)

The start date shall be________________________________________                                  (1.1)

The Intended completion Date for the whole

of the Work is____________ with the following milestones:                                                          (17,28)

Milestone dates:

Physical works to be completed                            Period from the date of issue of notice to proceed with the work

Milestone 1 i.e.__________________          ___________________months

Milestone 2 i.e.__________________          ___________________ months

Milestone 3 i.e.__________________          ___________________ months

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The following documents also form part of the Contract              (2.3.)

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The Contractor shall submit a Program for the Works

Within----------days of delivery of the letter of Acceptance.          (27)

The Site Possession Dates shall be                                              (21)

Section 1_____________________________

Section 2_____________________________

Section 3_____________________________

The site is located at_________________________                  (1)

and is defined in drawings nos._________________

_____________________________________________________

The Defects Liability Period is____________________days     (35)

The minimum insurance cover for physical property, injury and

death is Rs.________(lakhs) per occurrence with the number of occurrences

limited to four. After each occurrence, contractor will pay additional premium necessary to make insurance valid for four occurrences always.

The following events shall also be Compensation Events:              (44)

1. The Employer terminates the contract for his convenience
2. _______________________________________________
3. _______________________________________________
4. _______________________________________________

The period between Programme updates shall be ______days     (27)

Programme shall be Rs.______________________________      (27)

The language of the Contract documents is English                              (3)

The law, which applies to the Contract, is the law of Union of India              (3)

The currency of the Contract is Indian Rupees                                              (46)

Fees and types of reimbursable expenses to be paid to the Conciliator (25)

_______________________________________________________________

_______________________________________________________________

Appointing Authority for the Conciliator @

@ (such as ICA, Institution of Surveyors, Institution of Nodal Officer or his nominee, CIDC, BAI etc) __________________________(26)

The formula(e) for adjustment of prices are:                                                  (47)

(ii) Price adjustment for increase or decrease in the cost of cement procured by the contractor shall be paid in accordance with the following formula.

iii) Price adjustment for increase or decrease in the cost of steel procured by the Contractor shall be paid in accordance with the following formula:

Adjustment of Bitumen component.

Adjustment of POL (fuel and lubricant) component

The following percentages will govern the price adjustment for the entire contract:

The proportion of payments retained (retention money) shall be 6% from each bill subject to a maximum of 5% of the contract price.                                                                                                                                                   [48]

The liquidated damages for the whole of the works are Rs ___________(amount) per day and that for the milestone are as under:                                                                                                                                            [49]

For milestone 1                              Rs____________ per day

For milestone 2                              Rs____________ per day

Fore milestone3                             Rs____________ per day

The maximum amount of liquidated damages for the whole of the works is ten percent of the contract price [49]

The amounts of the advance payments are:                                                                                                             [51]

(The advance payment will be paid to the Contractor not later than 15 days after fulfillment of the above conditions)

Repayment of advance payment for mobilization and equipment::                                                                      [51]

The advance loan shall be repaid with percentage deductions from the interim payments certified by the Nodal Officer or his nominee under the Contract. Deductions shall commence in the next Interim Payment Certificate following that in which the total of all such payments to the Contractor has reached not less than 15 percent of the Contract Price until such time as the loan has been repaid, always provided that the loan shall be completely repaid by the time 80% of the original contract work is executed.

Repayment of secured advance:

The advance shall be repaid from each succeeding monthly payment to the extent materials [for which advance was previously paid pursuant to Clause 51.6 of G.C.C. and 51(3) of Contract Data on prepage] have been incorporated into the Works.

The Securities shall be for the following minimum amounts equivalent as a                                                      (52) percentage of the Contract Price:

Performance Security for 5 percent of contract price.

The standard form of Performance Security acceptable to the Employer shall be an unconditional Bank Guarantee of the type as presented in Section 8 of the Bidding Documents.

*The date by which operating and maintenance manuals are required is within 28 days of                             (58) issue of certificate of completion of whole or section of the work, as the case may be.

*The date by which "as-built" drawings are required is within 28 days of issue of                                             (58) certificate of completion of whole or section of the work, as the case may be

The amount to be withheld for failing to supply "as built" drawings and/or operating and (58) maintenance manuals by the date required is Rs.__________

The percentage to apply to the value of the work not completed representing the Employer's additional cost for completing the Works shall be 5 percent

(to be filled in by the Owner/contractor)

(to be proviced by the Owner/contractor)

1. Item for which no rate or price has been entered in will not be paid for by the Employer when executed and shall be deemed covered by the other rates ans prices in the Bill of Quantities (refer: ITB Clause 13.2 and GCC Clause 43.8).
2. Unit rates and prices shall be quoted by the bidder in Indian Rupee [ITB Clause 14.1].
3. Where there is a discrepancy between the rate in figures and words, the rates in words will govern [ITB Clause 27.1 (a)].
4. Where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by quantity, the unit rate quoted shall govern [ITB Clause 27.1 (b)].

Acceptable forms of securities are annexed. Bidders should not complete the Performance and Advance Payment Security forms at this time. Only the successful Bidder will be required to provide Performance and Advance Payment Securities in accordance with one of the forms, or in a similar form acceptable to the Employer.

Annex A:                             Bid Security (Bank Guarantee)

Annex B:                             Performance Bank Guarantee

Annex C:                             BLANK

Annex D:                             Bank Guarantee for Advance Payment

Annex -A

WHEREAS,____________[Name of Bidder] (hereinafter called "the Bidder") has submitted his bid dated _________________________________[date] for the construction of___________________________ __________________________________________[name of Contract] (hereinafter called "the Bid")

KNOW ALL PEOPLE by these presents that We______________[name of bank] of____________________ __________________(name of country) having our registered office at_____________________(hereinafter called "the Bank") are bound unto___________________________[name of Employer] (hereinafter called "the Employer") in the sum of ____________________________1 for which payment well and truly to be made to the said Employer the Bank binds itself, his successors and assigns by these presents.

SEALED with the Common Seal of the said Bank this _______day of _________19________

THE CONDITIONS of this obligations are:

1. If after Bid opening the Bidder withdraws his Bid during the period of bid validity specified in the Form of Bid;

 

or

2. If the Bidder having been notified of the acceptance of his Bid by the Employer during the period of bid validity:

        (a) fails or refuses to execute the Form of Agreement in accordance with the Instructions to Bidders, if                required; or

        (b) fails or refuses to furnish the Performance Security, in accordance with the Instructions to Bidders, or

        (c) does not accept the correction of the Bid Price pursuant to Clause 27;

We undertake to pay to the Employer up to the above amount upon receipt of his first written demand, without the Employer having to substantiate his demand, provided that in his demand the Employer will note that the amount claimed by him is due to him owing to the occurrence of one or any of the three conditions, specifying the occurred condition or conditions.

This Guarantee will remain in force up to and including the date __________2 days after the deadline for submission of Bids as such deadline is stated in the Instructions to Bidders or as it may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this Guarantee should reach the Bank not later than the above date.

DATE _________________________________SIGNATURE OF THE BANK______________________

WITNESS __________________________________SEAL___________________________________

__________________________________________________________________________________

[Signature, name and address]

__________________________________________________________________________________

1. The Bidder should insert the amount of the guarantee in words and figures denominated in Indian Rupees. This figure should be the same as shown in Clause 16.1 of the Instructions to Bidders.
2. 28 days after the end of the validity period of the Bid. Date should be inserted by the Employer before the Bidding documents are issued.

To:__________________________________[name of Employer]

__________________________________[address of Employer]

WHEREAS_________________________________[name and address of Contractor] (hereinafter called "the Contractor") has undertaken, in pursuance of Contract ________________________________No._________dated_________ to execute _______________________________________________[name of Contract and brief description of Works] (herein after called "the Contract").

AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recongnised bank for the sum specified therein as security for compliance with his obligations in accordance with the Contract;

AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee;

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of ______________

_______________________________[amount of guarantee] _______________

_____________________________[In words], such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand, and without cavil or argument, any sum or sums within the limits of ___________________________

[amount of guarantee]1 as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract or of the Works to be performed thereunder or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification.

This guarantee shall be valid until 28 days from the date of expiry of the Defects Liability Period.

Signature and seal of the guarantor ________________________________

Name of Bank _________________________________________________

Address ______________________________________________________

Date _________________________________________________________

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1. An amount shall be inserted by the Guarantor, representing the percentage of the Contract Price specified in the Contract and denominated in Indian Rupees.

To:__________________________________[name of Employer]

__________________________________[address of Employer]

__________________________________[name of Contract]

Gentlemen:

In accordance with the provisions of the Conditions of Contract, Sub-clause 51.1 ("Advance Payment") of the above mentioned Contract, _____________[name and address of Contractor] (hereinafter called "the Contractor") shall deposit with______________________________[name of Employer] a bank guarantee to guarantee his proper and faithful performance under the said Clause of the Contract in an amount of _________________________________[amount of guarantee]1_____________________________[in words].

We, the _____________________________________[bank or financial institution], as instructed by the Contractor, agree unconditionally and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to______________________________[name of Employer] on his first demand without whatsoever right of objection on our part and without his first claim to the Contractor, in the amount not exceeding ____________________________[amount of guarantee]1 _________________________________________[in words].

We further agree that no change or addition to or other modification of the terms of the Contract or of Works to be performed thereunder or of any of the Contract documents which may be made between ____________________[name of Employer] and the Contractor, shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification.

The guarantee shall remain valid and in full effect from the date of the advance payment under the Contract until __________________________[name of Employer] receives full repayment of the same amount from the Contractor.

                                                            Yours truly,

                                                            Signature and seal_________________________________

                                                            Name of Bank/Financial Institution:____________________

                                                            Address _________________________________________

                                                                                                            Date ______________________

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1. An amount shall be inserted by the bank or financial institution representing the amount of the Advance Payment, and denominated in Indian Rupees.

THIS AGREEMENT, made and entered into this ……………………………….day of……………………19...... …………………Between……………………..("the Employer") and ........................................................................ …………………………………………………………………………..("the Contractor"), and the Disputes Review Board ("the Board") consisting of One/three Board Members, (1)

………………………………………………................................. (2)

……………………………………………………………………   (3)

……………………………………………………………..

[Note: Delete whatever is not applicable]

WITNESSETH, that

WHEREAS,  the    Employer      and     the      Contractor     have      contracted     for    the     construction    of    the

………………………………………………………………………………………………..............................................

..............................................................................................................................................................................................

(Project name) ………………………………………………………(the "Contract") and WHEREAS, the contract provides for the establishment and operation of the Board NOW THEREFORE, the parties hereto agree as follows:

1. The parties agree to the establishment and operation of the Board in accordance with this Board agreement.
2. Except for providing the services required hereunder, the Board Members should not given any advice to either party or to the Nodal Officer or his nominee concerning conduct of the Works.

    (a)   shall have no financial interest in any party to the contract or the Nodal Officer or his nominee, or a                financial interest in the contract, except for payment for services on the Board.

    (b) shall have had no previous employment by, or financial ties to, any party to the contract, or the Nodal             Officer or his nominee, except for fee based consulting services on other projects, all of which must be             disclosed prior to appointment to the Board.

    (c) shall have disclosed in writing to the parties prior to signature of this Agreement any and all recent or            close professional or personal or personal relationships with any director, officer, or employee of any party            to the contract, or the Nodal Officer or his nominee, and any and all prior involvement in the project to            which the contract relates;

    (d) shall not, while a Board Member, be employed whether as a consultant or otherwise by either party to the            contract, or the Nodal Officer or his nominee, except as a Board Member.

    (e) shall not, while a Board Member engage in discussion or make any agreement with any party to the             contract, or with the Nodal Officer or his nominee, regarding employment whether as a consultant or             otherwise either after the contract is completed or after services as a Board Member is completed.

    (f) shall be and remain impartial and independent of the parties and shall disclose in writing to the Employer,           the Contractor, the Nodal Officer or his nominee, and one another any fact or circumstances which might           be such to cause either the Employer of the Contractor to question the continued existence of the                impartiality and independence required of Board Members.

                    10. Board Site visits

It has been experienced that in domestically contracted projects, litigation / arbitration and consequent delay occur mainly because PSUs do not have proper and adequate internal contract management systems. Even if standard conditions are incorporated and contract is a well thought out document, there are certain functions, which have to be taken by the PSUs to ensure proper implementation of the project through contract management. In implementation of contract, PSUs have to, depending upon the complexity involved, perform specialised functions such as Engineering, Finance, Cost Engineering, Quality Assurance and Inspection at Head Office and Erection, Site Finance, Field Quality Assurance etc., at the project site. Total project is to be broken down into smaller well-defined packages with a view to optimise the number of contracts to be needed for better planning, coordination and implementation of the whole project and at the same time to execute the project at an optimum cost to the owner. All these call for having a well organised contract management system at PSUs. However, our experience shows that contract management system in most of the Ministries/PSUs where time and cost over-run are very high, is not upto the mark. Absence of contract management system or loosely formulated system gives undue advantage to contractors through misuse of the arbitration, compensation and payment clauses to jack up their receipts, mask their poor performance, to manage their delays etc. In fact, contractors, in order to take such advantages, try to raise dispute and enter into long arbitration proceedings. Such disputes can be avoided once owners' contract management mechanism is active with sound planning and networking and ensures that all the related inter-linked activities, responsibility of which lies with the owner are taken up in time and joint inspection is undertaken regularly to monitor the progress of contractors work. The experience in implementation of projects shows that monitoring mechanism at the Ministry and PSU level is very slack in carrying out its duties. In fact, this is applicable for contractors who take up works on lumpsum contract where their responsibility is total. In general, contracts, the contracting company should use the system of owner for their internal management and faithfully follow the report the inputs required by the owners system.

ANNEXURE-I

ANNEXURE-II

• To identify clauses which require discussion, to discuss alterations considered desirable and to suggest suitable modifications.

3.        Composition of Committee :

            CHAIRMAN : Shri. Harish Chandra

            (Former DG, CPWD, Former Member UPSC and

            Chairman, Planning Commission's Working Group on Construction 1989-90)

CO-OPTED MEMBERS

MEMBER SECRETARY Shri P.R. Swarup, Director CIDC

Shri L.R. Gupta, Former Director General (Works), CPWD gave useful suggestions on his behalf and on behalf of the Builder's Association of India.

* These Members could not participate in the deliberations of the Committee.