GOVERNMENT
OF INDIA (BHARAT SARKAR)
INDIAN
RAILWAY STANDARD CONDITIONS OF CONTRACT
In the
contract, unless the context otherwise requires:
“Acceptance
of Tender” means the letter of memorandum communicating to the Contractor the
acceptance of his tender and includes an advance acceptance of his tender;
“Consignee”
means where the stores are require by the acceptance of tender to be dispatched by rail,
air of steamer, the person specified in the Acceptance of Tender to whom they are to be
delivered to a person as an interim consignee for the purpose of dispatch to another
person, such other persons; and in any other case the person to whom the stores are
required by the acceptance of tender to be delivered in the manner therein specified;
“Contract”
means and includes the invitation to tender, instructions to tenderers, tender, acceptance
of tender, Standard Conditions to Contract, Special Conditions of Contract, particulars
and the other conditions specified in the acceptance of tender and includes a repeat order
which has been accepted or acted upon by the for the contract and a formal agreement if
executed;
The
“Contractor” means the person, firm or company with whom the order for the
supply is placed and shall be deemed to include the contractor’s successors (approved
by the Purchaser) representatives, heirs executives and administrators, as the case may be
unless excluded by the terms of the contract;
“The
Sub-contractor” means any person, firm or company from whom the Contractor may obtain
any material or fittings to be used in the supply or manufacture of the stores;
“Drawing”
means the drawing or drawings specified in or annexed to the Schedule or Specifications;
“Government”
means the Central Government or a State Government, as the case may be;
“The
Inspecting Officer” means the person specified in the contract for the purpose of
Inspection of stores or work under the contract and includes his authorised
representative;
“Material”
means anything used in the manufacturer or fabrication of the stores.
“Particulars”
includes
Specification
Drawing
Patterns
bearing the seal and signature of the inspecting officer (hereinafter called the sealed
pattern) which shall include also a certified copy thereof sealed by the purchaser for the
guidance of the Inspecting Officer)
Samples
sealed by the purchaser for guidance of the Inspecting Officer (hereinafter called the
certified sample) which shall include a certified copy thereof sealed by the purchaser for
the guidance of the Inspecting Officer.
Trade
Pattern, that is to say pattern, stores confirming to which are obtainable in the open
market and which denotes a standard of the Indian Standard Institute or other
standardizing authority or general standard of the industry;
“Proprietary
mark” or “brand” means the mark or brand of a product which is owned by an
industrial firm;
Any
other details governing the construction, manufacture of supply of stores as may be
prescribed by the contract;
“Purchase
Officer” means the officer signing the acceptance of tender and includes any officer
who has authority to execute the relevant contract on behalf of the Purchaser;
“The
Purchaser” means the President of India in the case of stores ordered for the Indian
Government Railways and includes his successors and assignees;
“Signed”
includes stamped, except in the case of acceptance of tender or any amendment thereof;
“Site”
means the place specified on the contract which any work is required to be executed by the
contractor under the contract or any other place approved by the Purchaser for the
purpose;
“Stores”
means the goods specified in the contract which the contractor has agreed to supply under
the contract;
“Supply
Order” means an order for supply of stores and includes an order for performance of
service;
“Test”
means such test as is prescribed by the particulars or considered necessary by the
Inspecting Officer whether performed or made by the Inspecting Officer or any agency
acting under the direction of the Inspecting Officer;
“Unit”
and “Quantity” means the unit and quantity specified in the contract;
“Writing”
or “Written” includes matter either in note or in part in manuscript,
typewritten, lithographed, cyclostyled, photographed or printed under or over signature or
seal, as the case may be;
The
delivery of the stores shall be deemed to take place on delivery of the stores in
accordance with the terms of contract, after approval by the Inspecting Officer if so
provided in the contract, to-
the
consignee at his premises; or
where so
provided the interim consignee at his premises; or
carrier
or other person named in the contract for the purpose of transmission to the consignee, or
A person
signing the tender or any other documents in respect of the Contractor on behalf of the
Contractor without disclosing his authority to do so shall be deemed to warrant that he
has authority to bind the Contractor. If it
is discovered at any time that the person so signing has no authority to do so, the
Purchaser may, without prejudice to any other right or remedy of the Purchaser, cancel the
contract and make or authorize the making of a purchase of the stores at the risk and cost
of such person and hold such person liable to the Purchaser for all costs and damages
arising from the cancellation of the contract including any loss which the Purchaser may
sustain on account of such purchase. The
provisions of Clauses 0700 shall apply to every such purchase as far as applicable.
Address
of the Contractor and notices and communication on behalf of the Purchaser-
(a) For
all purposes of the contract including arbitration thereunder, the address of the
addressed to the Contractor shall be sent, unless the Contractor has notified change by a
separate letter containing no other communication and sent by registered post
acknowledgement due to the Purchaser. The
Contractor shall be solely responsible for the consequence of an omission to notify a
change of address in the manner aforesaid.
(b) Any communication or notice on behalf of the
Purchaser in relation to the contract may be issued to the Contractor by the Purchase
Officer and all such communications and notices may be served on the Contractor either by
registered posts or under certificate of posting or by ordinary post or by hand delivery
at the option of such officer.
Quotations
of Rates by contractors.
The
price quoted by the Contractor shall not be higher than the controlled price fixed by law
for the stores or where there is no controlled price, it shall not exceed the prices or
contravene the norms for fixation of prices paid down by Government, it shall not exceed
the price appearing in any agreement relating to price regulation by any industry in
consultation with the Government. In any
case, save for special reasons stated in the tender, the price quoted shall not be higher
than the lowest price charged by the Contractor for stores of the same nature, class or
description to a private purchaser, domestic or foreign as well as Purchaser Governments.
If the
price quoted is higher than the controlled price or where there is no controlled price,
the price usually charged by the Contractor from a private Purchaser, domestic or foreign,
as well as Purchaser Government for the stores of the same nature, class or description
the Contractor will specifically mention this fact in his tender giving reasons for
quoting higher price (s). If he fails to do
so or makes any mis-statement, it shall be lawful for the Purchaser. (i) to revise the price at any stage so as to bring it
in conformity with the Sub-clause (a) above or (ii) to terminate the contract and forfeit
the Security Deposit.
Contract
Any
variation or amendment of the contract shall not be binding on the Purchaser unless and
until the same is duly endorsed on the contract incorporated in formal instrument or in
exchange of letters and signed by the parties.
Security
Deposit
Unless
otherwise agreed between the Purchaser and the Contractor, the Contractor shall, within 14
days after written notices of acceptance of the tender has been posted to the Contractor,
deposit with the railway concerned (in cash of the equivalent in Government Securities or
approved Banker’s Guarantee Bond) a sum equal to 5 percent of the total value of the
stores detained in the contract for which the tender has been accepted subject to a
maximum of Rs.1, 00,000/- as a security for the due fulfillment of the contract.
If the
Contractor having been called upon by the Purchaser to furnish security, fails to make and
to maintain a security deposit within the specified period, it shall be lawful for the
Purchaser-
to
recover from the Contractor the amount of such security deposit by deducting the amount
from the pending bills of the Contractor under the contract or any other contract with the
Purchaser on the Government or any person contracting through the Purchaser or otherwise
howsoever, or
to
cancel the contract or any part thereof and to purchase or authorize the purchase of the
stores at the risk and cost of the Contractor and in that even the provisions of Clause
0702 shall apply as far as applicable.
No claim
shall lie against the Purchaser in respect of interest on cash deposits or Government
Securities or depreciation thereof.
The
Purchaser shall be entitled and it shall be lawful on his part to forfeit the said
security deposit in whole or in part in the event of any default, failure or neglect on
the part of the Contractor in the fulfillment or performance in all respect of the
contract under reference or any other contract with the Purchaser or any part thereof to
the satisfaction of the Purchaser and the Purchaser shall also be entitled to deduct from
the said deposits any loss or damage which the Purchaser may suffer or be put by reason of
or due to any act or other default, recoverable by the Purchaser from the Contractor in
respect of the contract under reference or any other contract and in either of the events
aforesaid to call upon the Contractor to maintain the said security deposit at its
original limit by making further deposits, provided further that the Purchaser shall be
entitled to recover any such claim from any sum then due or which at any time thereafter
may become due to the Contractor under this or any other contracts with the Purchaser.
Delivery
The
Contractor shall as may be required by the Purchaser either deliver free or f.o.r. or
c.i.f. at the place / places detailed in the contract, the quantities of the stores
detailed therein and the stores shall be delivered or dispatched not later than the dates
specified in the contract. The delivery, will
not be deemed to be complete until and unless the stores are inspected and accepted by the
Inspecting officer as provided in the contract.
The
Purchaser shall not be liable to render assistance to the Contractor in securing or to
arrange for or provide transport to the Contractor unless it is so specifically stated in
the contract notwithstanding that transport of the stores, is controlled by or under the
orders of the Government.
Notwithstanding
any inspection and approval by the Inspecting Officer on the Contractor’s premises,
property in the stores shall not pass on to the Purchaser until the stores have been
received, inspected and accepted by the consignee.
No
stores shall be deliverable to the consignee’s depots on Sundays and public holidays
without written permission of the consignee.
Time for
and Date of Delivery; the Essence of the Contract
The time
for and the date specified in the contract or as extended for the delivery of the stores
shall be deemed to be of the essence of the contract and delivery must be completed not
later than the date (s) so specified or extended.
Progressing
of Deliveries
The
Contractor shall allow reasonable facilities and free access to his work and records to
the Inspecting Officer, Progress Officer or such other Officer as may be nominated by the
Purchaser for the purpose of ascertaining the progress of the deliveries under the
contract.
Failure
and Termination
If the
Contractor fails to deliver the stores or any installments thereof within the period fixed
for such delivery in the contract or as extended or at any time repudiates the contract
before the expiry of such period the Purchaser may without prejudice to his other rights-
recover
from the contractor as agreed liquidated damages and not by way of penalty a sum
equivalent to 2 percent of the price of any stores (including elements of taxes, duties,
freight, etc.) which the Contractor has failed to deliver within the period fixed for
delivery in the contract or as extended for each month or part of a month during which the
delivery of such stores may be in arrears where delivery thereof is accepted after expiry
of the aforesaid period, or
cancel
the contract or a portion thereof and if so desired purchase or authorize the purchase of
the stores not so delivered or others of a similar description (where stores exactly
complying with particulars are not in, the opinion of the Purchaser, which shall be final,
readily procurable) at the risk and cost of the Contractor.
It shall,
Where
action is taken under Sub-clause (b) above, the Contractor shall be liable for any loss
which the Purchaser may sustain on that account provided the purchase, or, if there is an
agreement to purchase, such agreement is made in case of failure to deliver the stores
within the period fixed for such delivery in the contract or as extended within six months
from the date of such failure and in case of repudiation of the contract. The Contractor shall not be entitled to any gain
on such purchase and the manner and method of such purchase shall be in the entire
discretion of the Purchaser. It shall not be
necessary for the Purchaser to serve a notice of such purchase on the Contractor.
Note-In
respect of the stores which are not easily available in the market and where procurement
difficulties are experienced, the period for making risk purchase shall be nine months
instead of six months provided above.
Consequences
of Rejection-If on
the stores being rejected by the Inspecting Officer or Interim Consignee or Consignee at
the destination, the Contractor fails to make satisfactory supplies within the stipulated
period of delivery, the Purchaser shall be at liberty to –
require
the Contractor to replace the rejected stores forthwith but in any event not later than a
period of 21 days from the date of rejection and the Contractor shall bear all cost of
such replacement including freight, if any, on such replacing and replaced stores but
without being entitled to any extra payment on that or any other account, or
purchase
or authorize the purchase of quantity of the stores rejected or others of a similar
description (when stores exactly complying with particulars are not in the opinion of the
Purchaser, which shall be final, readily available) without notice to the Contractor at
his risk and cost and without affecting the Contractor’s liability as regards the
supply of any further installment due under the contract or,
cancel
the contract and purchase or authorize the purchase of the stores or other of a similar
description (when stores exactly complying with particulars are not in the opinion of the
Purchaser, which shall be final, readily available) at the risk and cost of the
Contractor. In the event of action being
taken under sub-clause (ii) above or under this Sub-clause, the provision of Clause 0702
above will apply as far as applicable.
Where
under the contract the price payable is fixed f.o.r. dispatching station, the Contractor
shall, if the stores are rejected at destination by the consignee, be liable, in addition
to his other liabilities, including refund of price recoverable in respect of the stores
so rejected, to reimburse to the Purchaser the freight and all other expenses incurred by
the Purchaser in this regard.
Extension
of Time for Delivery-If such
failure as aforesaid shall have arisen from any cause which the Purchaser may admit as
reasonable ground for extension of time, the Purchaser shall allow such additional time as
he considers to be justified by the circumstance of the case, and shall forego the whole
or such part, as he may consider reasonable of his claim for such loss or damage as
aforesaid. Any failure or delay on the part
of sub-contractor, through their employment may have been sanctioned under Condition 1500,
hereof shall not be admitted as a reasonable ground for any extension of time or for
exempting the Contractor from liability for any such loss or damage as aforesaid.
Examination
of Drawing, Specifications and Patterns-When tender are called for in accordance with a
drawing, specification or sealed pattern the Contractor’s tenders to supply in
accordance with such drawing, specifications or sealed pattern shall, be deemed to be an
admission on his part that he has fully acquainted himself with the details thereof and in
no circumstances, will any claim on his part which may arise on account of his
insufficient examination of the said drawing, specification or sealed pattern be
considered.
Mistakes
in Drawing
The
Contractor shall be responsible for and shall pay for any alterations for the works due to
any discrepancies, errors or omissions in the drawings or other particulars supplied by
him whether such drawings or particulars have been approved by the Purchaser or not,
provided that such discrepancies, errors or omissions be not due to inaccurate information
or particulars furnished to the Contractor on behalf of the Purchaser. If any dimensions figure upon a drawing or plan
differ from those obtained by scaling the drawing or plan, the dimensions as figured upon
the drawing or plan shall be taken as correct.
Samples
Advance
Sample-Where an
advance sample is required to be approved
under the terms of the contract, the Contractor shall submit the sample free of cost to
the Inspecting Officer within the time specified in the acceptance of tender. If the Contractor is unable to do so, he must
apply immediately to the Office issuing the acceptance of tender for extension of time
stating the reasons for the delay. If the
Purchaser is satisfied that a reasonable ground for an extension of time exists, he may
allow such additional time as he considers to be justified (and his decision shall be
final) with or without alteration in the delivery period stipulated in the acceptance of
tender and on such conditions as he deems fit. In
the event of the failure of the Contractor to deliver the advance sample by the date
specified in the acceptance of tender or any other date to which the time may be extended
as aforesaid by the Purchaser or of the rejection of the sample, the Purchaser shall be
entitled to cancel the contract and if so desired, purchase or authorize the purchase of
the stores at the risk and cost of the
Contractor, in which case the provisions of Clause 0700 shall apply as far as applicable.
Unless
otherwise provided in the contract, all samples required for test shall be supplied by the
Contractor free of cost. Where sample which
is supplied free, is rejected after examination and test, the same or whatever remains of
the sample, after examination and test will be returned to the Contractor at his request
and cost within three months of the date of such rejection at public tariff rate at
Owner’s risk.
Marketing-Samples
submitted shall be clearly labeled with the Contractor’s name and address and the
acceptance of tender number.
If the
Contractor submits a sample whether with before or after the tender, the same shall not
govern the standard of supply except when it has been so specifically stated in the
acceptance of tender.
Whereunder
the contract the Contractor is required to submit an advance sample, any expenses incurred
by the Contractor on or in connection with
the production of stores in bulk before the sample has been approved unconditionally,
shall be borne by the Contractor and he shall not claim any compensation in the event of
such sample being found unacceptable by the Inspecting Officer.
The
rejection of the sample by the Inspecting Authority or Inspecting Officer shall be final
and binding on the Contractor.
Where
the contract does not require any advance sample to be approved, the Contractor may before
proceedings with bulk manufacture or delivery of the stores, if he so desires, submit to
the Inspecting Officer for inspection a sample of the stores in which case a quantity not
less than one percent of the total quantity to be supplied unless otherwise authorized by
the Inspecting Officer shall be submitted. The
contractor shall not, however, be entitled to be shown any consideration or give any
extension of time or claim to be exonerated from completing the delivery within the
stipulated period only on the ground of delay in the approval of any such sample.
If,
under the contract, supplies are governed by a sealed pattern, the Contractor shall be
bound to examine such pattern before preparing a sample or manufacturing the stores in
bulk, as the case may be.
Loan of
Sample-If a
certified sample is lent to the Contractor, it will bear a label containing inter alia variations known to the Inspecting
Officer between the said sample and the stores desired.
If the Contractor finds any further variation between the certified sample and the
particulars of specifications mentioned in the contract, he shall at once refer the matter
to the Inspecting Officer and the Contractor shall also give intimation of such
discrepancy to the Purchase Officer. The
Contractor shall follow the instructions of the Inspecting Officer as to what sample of
particulars should guide the production of stores and the decision of the Inspecting
Officer in the matter shall be final and binding on the Contractor.
The
Contractor shall not detach the said label from the certified sample and if for any
reasons the said label gets detached, the Contractor shall at once return the certified
sample to the Inspecting Officer for attaching a fresh lable.
Risk of
Loss or Damage to Government or Purchaser’s Property.
All the
property of the Government or Purchaser loaned whether with or without deposit on terms
and conditions to be separately agreed upon in respect of each particular contract to the
Contractor in connection with the contract shall remain the property of the Government or
the Purchaser, as the case may be. The
Contractor shall use such property for the purpose of the execution of the contract and
for no other purpose whatsoever
All such
property shall be deemed to be in good condition when received by the Contractor unless he
shall have within twenty-four hours of the receipt thereof notified the Purchase Officer
to the contrary. If the Contractor fails to
notify any defect in the condition or quality of such property, he shall be deemed to have
lost the right to do so at any subsequent stage.
The
Contractor shall return all such property and shall be responsible for the full value
thereof to be assessed by the Purchaser whose decision shall be final and binding on the
Contractor. The Contractor shall be liable
for loss or damage to such property from whatever cause happening while such property is
in the possession of or under the control of the Contractor, his servants, workmen or
agents.
Where
such property is insured by the Contractor against loss or fire at the request of the
Government or Purchaser, such insurance shall be deemed to be effected by way of
additional precaution and shall not prejudice the liability of the Contractor as
aforesaid.
Inspection
by Inspecting Officer
(a) When
inspection during manufacture or before delivery or despatch is required, notice in
writing shall be sent by the Contractor to the Inspecting Officer when the stores or
material to be supplied are ready for inspection and test and no stores shall be delivered
or despatched until the Inspecting Officer has certified in writing that such stores have
been inspected and approved by him.
(b) In
case where the Inspecting Authority specified in the contract requires on behalf of the
Purchaser that Inspection of the raw materials to be used and/or stage inspection during
the manufacturing process of the component/stores, etc., is also to be done, notice in
writing be shall sent by the Contractor to the Inspecting Officer to visit his
premises/works to test the raw material and/or conduct necessary inspection during the
manufacturing process of the component/stores, etc., as deemed essential.
Marking
of Stores-The
Contractor shall, if so required, at his own expense mark all the approved stores with a
recognized Government or Purchaser’s mark. The
stores which cannot be so marked shall, if so required by the Inspecting Officer be packed
at his own expense in suitable packages or cases, each of which shall be sealed and marked
with such mark.
The
Inspecting Officer shall also have power to mark the rejected stores with a rejection mark
so that they may be easily identified, if resubmitted for inspection.
Facilities
for Test and Examination-The
Contractor shall, at his own expense afford to the Inspecting Officer all reasonable
facilities and such accommodation as may be necessary for satisfying himself, that the
stores are being and/or have been manufactured in accordance with the particulars. The Inspecting Officer shall have full and free
access at any time during the execution of the contract to the Contractor’s work for
the purpose aforesaid, and he may require the Contractor to make arrangements for
inspection of the stores or any part thereof or any material at his premises or at any
other place specified by the Inspecting Officer and if the Contractor has been permitted
to employ the services of a Sub-Contractor, he shall in his contract with the
Sub-Contractor, reserve to the Inspecting Officer a similar right.
Cost of
Test-The
Contractor shall provide, without any extra charge, all materials, tools, labour and
assistance of every kind which the Inspecting Officer may demand of him for any test and
examination, other than special or independent test, which he shall require to be made on
the Contractor’s premises and the Contractor shall bear and pay all costs attendant
thereon. If the Contractor fails to comply
with the conditions aforesaid, the Inspecting Officer shall, in his sole judgement, be
entitled to remove for test and examination all or any of the stores manufactured by the
cost of transport or and carrying out such tests elsewhere. A certificate in writing of the Inspecting
Officer, that the Contractor has failed to provide the facilities and the means, for test
examination shall be final.
Delivery
of Stores for Test- The
Controller shall also provide and deliver for test, free of charge at such place other
than his premises as the Inspecting Officer may specify, such material or stores he may
require.
Liability
for Costs of Special or Independent Test-In the event of rejection of stores or any part
thereof by the Inspecting Officer in the consequence of the sample thereof which is
removed to the laboratory or other places of
test being bound on test, to be not in conformity with the Contractor, in the event of the
failure of the Contractor for any reason to deliver the stores passed on test within the
stipulated period, the Contractor shall, on demand pay, to the Purchaser all costs
incurred in the inspection and/or test. Cost
of test shall be assessed at the rate charged by the laboratory to private persons for
similar work.
Method
of Testing-The
Inspecting Officer shall have the right to put all the stores or materials forming part of
the same or any part thereof to such tests as he may think fit and proper. The Contractor shall not be entitled to object on
any ground whatsoever to the method of testing adopted by the Inspecting Officer.
Stores
Expended in Test- Unless
otherwise provided for in the contract if the test proves satisfactory and the stores or
any installment thereof is accepted, the quantity of the stores or materials expended in
the test will be deemed to have been taken delivery of by the Purchaser and be paid for as
such.
Powers
of Inspecting Officer-The
Inspecting Officer shall have the power-
before
any stores or part thereof are submitted for inspection to certify that they cannot be in
accordance with the contract owing to the adoption of any unsatisfactory method of
manufacture.
to
reject any stores submitted as not being in accordance with the Particulars.
to
reject the whole of the installment tendered for inspection, if after inspection of such
portion thereof as he may in his discretion think fit, he is satisfied that the same is
unsatisfactory.
the
Inspecting Officers decision as regards the rejection shall be final and binding on the
Contractor.
Charges
for Work Necessary for Completion of the Contract-The
Contractor shall pay all charges for handling, stamping, painting, marking, protecting or
preserving patent rights, drawing, templates, models and gauges and for all such measures
as the Purchaser or the Inspecting Officer may deem necessary for the proper completion of
the contract, though special provision therefore may not be made in the specification of
drawings.
Responsibility
of the Contractor for Executing the Contract
Risk in
the Stores-The
Contractor shall perform the contract in all respects in accordance with the terms and
conditions thereof. The stores and every
constituent part thereof, whether in the possession or control of the Contractor, his
agents or servants or a carrier, or in the join possession of the Contractor, his agents
or servants and the Purchaser, his agents or servants, shall remain in every respect at
the risk of the Contractor, until their actual delivery to the consignee at the stipulated
place or destination or, where so provided in the acceptance of tender, until delivery to
a person specified in the contract as interim consignee for the purpose of dispatch to the
consignee. The Contractor shall be
responsible for all loss, destruction, damage or deterioration of or to the stores from
any cause whatsoever while the stores after approval by the Inspecting Officer are
awaiting dispatch or delivery or are in the course of transit from the Contractor to the
consignee or, as the case may be, interim consignee.
The Contractor shall alone be entitled and responsible to make claims against a
Railway Administration or other carrier in respect of non-delivery, short delivery,
misdelivery, loss, destruction, damage or deterioration of the goods entrusted to such
carrier by the Contractor for transmission to the consignee or the interim consignee as
the case may be.
Consignee’s
Right of Rejection-Notwithstanding
any approval, which the Inspecting Officer may have given in respect of the stores or any
materials or other particulars or the work of workmanship involved in the performance of
the contract (whether with or without any test carried out by the Contractor or the
Inspecting Officer or under the direction of the Inspecting Officer) and for the
consignee, on behalf of the Purchaser, to reject the stores or any part, portion or
consignment thereof within a reasonable time after actual
delivery there of to him at the place or destination specified in the contract if
such stores or part, portion or consignment thereof is not in all respects in conformity
with the firms and conditions of the contract whether on account of any loss,
deterioration or damage before despatch or
delivery or during transit or otherwise howsoever.
Note: In
respect of materials pre-inspected at the firm’s premises the consignee will issue
rejection advice within 90 days from the date of receipt.
Provided
that where, under the terms of the contract the stores are required to be delivered to an
interim consignee for the purpose of despatch to the consignee, the stores shall be at the
Purchaser’s risk after their delivery to the interim consignee, but nevertheless it
shall be lawful for the consignee on behalf of the Purchaser to reject the stores or any
part, portion of consignment thereof upon their actual delivery to him at the destination
if they are not in all respects in conformity with the terms and conditions of contract
except where they have been damaged or have deteriorated in the course of transit or
otherwise after their delivery to the interim consignee.
The
provisions contained in Clause 2200 relating to the removal of stores rejected by the
Inspecting Officer shall mutatis mutandis apply to stores rejected by the consignee as
herein provided.
Note: In respect of stores inspected during
manufacturing or before delivery or despatch at contractor’s Premises the consignee
will issue communication of rejection within 90 days from the date of actual delivery
thereof.
Subletting
and Assignment-The
Contractor shall not save with the previous concern in writing of the Purchaser, sublet,
transfer or assign the contract or any part, thereof or interest therein or benefit or
advantage thereof any manner whatsoever.
In the
event of the Contractor’s subletting or assigning this contract or any part thereof,
without such permission, the Purchaser shall be entitled to cancel the contract and to
purchase the stores elsewhere on the Contractor’s account and risk and the Contractor
shall be liable for any loss or damage which the Purchase may sustain in consequence or
arising out of such purpose.
Changes
in a Firm-(a) Where the Contractor is a partnership firm, a new
partner shall not be introduced in the firm except with the previous consent in writing of
the Purchaser, which may be granted only upon execution of a written undertaking by the
new partner to perform the contract and accept all liabilities incurred by the firm under
the contract prior to the date of such undertaking.
On the
death or retirement of any partner of the Contractor firm before complete performance of
the contract, the Purchaser may, at his option cancel the contract and in such case the
Contractor shall have no claim whatsoever to compensation against the Purchaser.
If the
contract is not determined as provided in Sub-Clause (b) above notwithstanding the
retirement of a partner from the firm he shall continue to be liable under the contract
for acts of the firm until a copy of the public notice given by him under Section 32 of
the Partnership Act, has been sent by him to the Purchaser by registered post
acknowledgement due.
Consequence
of breach-Should a
partner in the Contractor firm commit a breach of Sub-Clause 1505 above or the Contractor
should commit a breach of the conditions 1506 (a) of this Sub-Clause, it shall be lawful
for the Purchaser to cancel the contract and purchase or authorize the purchase of the
stores at the risk, and cost of the Contractor and in that event the provisions of Clauses
0600 and 0700 as far as applicable shall apply.
The
decision of the Purchaser as to any matter or thing concerning or arising out of this
sub-clause or on any question whether the Contractor or any partner of the Contractor firm
has committed a breach of any of the conditions in this sub-clause contained shall be
final and binding on the Contractor.
Assistance
to the Contractor-(a) The Contractor shall be solely responsible to
procure any material or obtain any import or other license or permit required for the
fulfillment of the contract and the grant by the Purchaser or any other authority of a
quota certificate or permit required under any law for distribution or acquisition of iron
and steel or any other commodity or any other form of assistance in the procurement of the
material aforesaid or any attempt to render assistance in the matter aforesaid, or shall
not be construed as a representation on the part of the Purchaser that the material
covered by such license or permit or quota certificate is available or constitute any
promise, undertaking or assurance on the part of the Purchaser regarding the procurement
of the same or effect such assistance as aforesaid, the Contractor obtains any materials
at less than their market price or the cost of production of the stores is lowered the
price of the stores payable under the contract shall be reduced proportionately, and the
extent of such reduction shall be determined by the Purchaser whose decision shall be
final and binding on the Contractor.
Every
effect made by the Purchase to supply, or give assistance in the procurement of materials,
whether from the Government stock or by purchase under a permit or release order issued by
or on behalf of or under authority from Government or by any officer empowered in that
behalf by law or under other arrangements made by the Purchaser shall be deemed to be
subject to the condition that it will be performed with due regard to the other demands
and only if it is found practicable to do so within the stipulated time and the decision
of the Purchaser whether it was practicable to supply or give assistance as aforesaid or
not shall be final and binding on the Contractor.
Use of
Raw Materials secured with Government Assistance.
(a) Where any raw material is procured for the
execution of a contract with the assistance of the Government rendered in the form of
permit, or license or quota certificate/essentiality certificate or release order issued
by or on behalf of or under the authority of the Government or by an officer empowered in
that behalf, or
(b)
where the raw material is issued to the Contractor from Government stock, or
(c)
where advance payments are made to the Contractor to enable him to purchase the raw
material, or
where raw
material is arranged by the Government, the Contractor-
shall hold
such material as trustee for the Government,
shall use
such material economically and solely for the purpose of the contract.
shall
not dispose of the same without the previous permission in writing of the Purchaser, and
shall
render due account of such material and return to the Government at such place as the
Purchaser may direct all surplus or unserviceable material that may be left after the
completion of the contract or its termination for any reason whatsoever.
On
returning such material, the Contractor shall be entitled to such price thereof as the
Purchaser may fix, having regard to the condition of such material.
Where
the contract is terminated due to any default on the part of the Contractor, the
Contractor, shall pay all transport charges incurred for returning any material upto such
destination as may be determined by the Purchaser and the decision of the Purchaser in
that behalf shall be final and binding on the Contractor.
If the
Contractor commits breach of any of the conditions in this clause specified, he shall,
without prejudice to any other liability, penal or otherwise, be liable to account to the
Government for all moneys, advantages or profits accruing from or which, in the usual
course, would have accrued to him by reason of such breach.
Where
the stores manufactured or fabricated by the Contractor out of the material arranged or
procured by or on behalf of the Government are rejected, the Contractor shall without
prejudice to any other right or remedy of the Government, pay to the Government, on
demand, the cost price or market value of all such materials whichever is greater.
Indemnity.
The
Contractor shall at all time indemnify the Purchaser against all claims which may be made
in respect of the stores for infringement of any right protected by patent, registration
of designs, or trade mark. Provided always
that in the event of any claim in respect of alleged breach of letters patent, registered
designs or trade mark being made against the Purchaser, the Purchaser, shall notify the
Contractor of the same and the Contractor shall at his own expense, either settle any such
dispute or conduct any litigation that may arise there from.
The
Contractor shall not be liable for payment of any royalty, license fee or other expenses
in respect of or for making use of patents or designs with respect to which he is
according to the terms of the contract, to be treated as an agent of the Government for
the purpose of making use of patent or trade mark for fulfillment of the contract.
Packing.
The
Contractor shall pack at his own cost the stores sufficiently and properly for transit by
rail/road, air and/or sea as provided in the contract so as to ensure their being free
from loss or damage on arrival at their destination.
Unless
otherwise, provided in the contract all containers (including packing cases, boxes, tins,
drums and wrappings) in which the stores are supplied by the contractor, shall be
considered as non-refundable and their cost as having been included in the contract price.
IF the
contract provides that the containers shall be returnable, they must be marked
‘returnable ‘ and their cost as having been included in the contract price.
If the
contract provides that returnable containers shall be separately charged, they shall be
invoiced by the Contractor at the price specified in acceptance of tender. In such cases, the Contractor shall give full
credit for the invoiced amount if the containers are returned to the Contractor. Return of containers shall be made within a
reasonable time and in the event of any dispute or difference arising as to whether the
containers were so returned, the decision of the Purchaser thereon shall be final and
binding and the Purchaser may, in his discretion award, such compensation as may in his
opinion be proper for any undue delay in returning the containers.
Each
bale or package delivered under the contract shall be marked by the Contractor at his own
expense. Such marking shall be distinct (all
previous irrelevant marking being carefully obliterated) and shall clearly indicate the
description and quantity of the stores, the name and address of the Consignee, the gross
weight of the package and the name of the Contractor with a distinctive number or mark
sufficient for the purpose of identification. All
markings shall be carried out with such material as may be found satisfactory by the
Inspecting Officer as regards quickness of drying, fastness and indelibility.
The
Inspecting Officer may reject the stores if the stores are not packed and / or marked as
aforesaid and in case where the packing materials are separately prescribed, if such
materials are not in accordance with the terms of the contract. Such rejection of the stores by the Inspecting
Officer shall be final and binding on the Contractor.
Each
bale or package shall contain a packing not specifying the name and address of the
Contractor, the number and date of the acceptance of tender or supply order and the
designation of the Purchase Officer issuing the supply order, the description of the
stores and the quantity contained in such bale or package.
Notification
of Delivery.
Notification
of delivery or despatch in regard to each and every installment shall be made to the
consignee and to the indenter immediately on despatch or delivery. The Contractor shall further supply to the
consignee, or the interim consignee, as the case may be, a packing account quoting number
of the acceptance of tender and/or supply or repeat order and date of despatch of the
stores. All packages, containers, bundles and
loose materials part of each and every installment shall be fully described in the packing
account and full details of the contents of the packages and quantity of materials shall
be given to enable the consignee to check the stores on arrival at destination. The Railway Receipt/Consignment Note or Bill of
Lading, if any, shall be forwarded to the consignee by registered post immediately on the
despatch of stores. The Contractor shall bear
and reimburse to the Purchaser demurrage charges, if any, paid by reason or delay on the
part of the Contractor in forwarding the Railway Receipt, Consignment Note or Bill of
Lading.
Progress
Reports.
The
contractor shall from time-to-time, render such reports concerning the progress of the
contract and/or supply to the stores of such form as may be required by the Purchaser.
The
submission, receipt and acceptance of such reports shall not prejudice the rights of the
Purchaser under the contract, nor shall operate as an estoppel against Purchaser merely by
reason of the fact that he has not taken notice of/or subjected to test any information
contained in such report.
Freight
The
stores shall be despatched at public tariff rates. In
the case, of f.o.r., station of despatch contract, the stores shall be booked by the most
economical route or most economical tariff available at the time of despatch as the case
may be. Failure to do so will render the
Contractor liable for any avoidable expenditure caused to the Purchaser. Where alternative routes exist. The Purchaser shall if called upon to do so
indicate the most economical route available, or name the authority whose advice in the
matter shall be taken and acted upon. If any
advice of any such authority is sought, his decision or advice in the matter shall be
final and binding on the Contractor.
Octroi.
In
respect to Road delivery where the Municipal/Local authority do not accept octroi duty
exemption certificate the octroi duty should be borne by the Seller.
Removal
of Rejected Stores.
On
rejection of all stores submitted for inspection at a place other than the premises of the
Contractor, such store shall be removed by the Contractor at his own cost subject as
hereinafter stipulated, within 21 days of the date of intimation of such rejection. If the concerned communication is addressed and
posted to the Contractor at the address mentioned in the contract it will be deemed to
have been served on him at the time when such communication would be in the course of
ordinary post reach the Contractor. Provided
that the Inspecting Officer may call upon the Contractor to remove dangerous, infected or
perishable stores within 48 hours of the receipt of such communication and the decision of
the Inspecting Officer in this behalf shall be final in all respects. Provided further that where the price or part
thereof has been paid, the consignee is entitled without prejudice to his other rights to
retain the rejected stores till the price paid for such store is refunded by the
Contractor save that such retention shall not in any circumstances to be deemed to be
acceptance of the stores or waiver of rejection thereon.
All
rejected stores shall in any event and circumstances remain and always be at the risk of
the Contractor immediately on such rejection. If
such stores are not removed by the Contractor within the periods aforementioned, the
Inspection Officer may remove the rejected stores and either return the same to the Contractor at his risk and
cost by such mode of transport as the Purchaser or Inspecting Officer may decide, or
dispose of such stores at the Contractor’s risk and on his account and retain such
portion of the proceeds, if any from such disposal as may be necessary to recover any
expense incurred in connection with such disposals (or any price refundable as a
consequence of such rejection). The
Purchaser shall, in addition, be entitled to recover from the Contractor ground
rent/demurrage charges on the rejected stores after the expiry of the time limit mentioned
above.
The
Stores that have been despatched by rail and rejected after arrival at destination may be
taken back by the Contractor either at the station where they were rejected or at the
station from which they were sent, after refunding the price paid for such stores and
other charges refundable as a consequence of such rejection. If the contract is placed for delivery f.o.r.
station of despatch the Contractor shall pay the carriage charges on the rejected
consignment at public tariff rates from the goods at the station from which they were
despatched, the goods shall in addition be booked back to him freight to pay at public
tariff rates and at owner’s risk. The
Contractor shall be liable to reimburse packing and incidental costs and charges incurred
in such return or rejected stores in addition to other charges refundable as a consequence
of rejection. The goods shall remain the
property of the Contractor unless and until accepted by the Purchaser after inspection.
System
of Payment
Unless
otherwise agreed upon between the parties, payment for delivery of the stores will be made
on submission of bills in the prescribed form which may be obtained from the Purchase
Officer in accordance with the instructions given in the Acceptance of Tender, by a cheque
or demand draft on a branch of the Reserve Bank of India or State Bank of India
transacting government business as may be decided by the Purchaser.
Payment
for the stores or for each consignment thereof will be made to the Contractor on
submission of bills accompanied by required document in accordance with the following
procedure in contracts where such a facility to the Contractor has specifically been
agreed to by the Purchaser:-
95
percent payment for the stores or each consignment thereof will be made to the firms
against proof of inspection and dispatch. The
original railway receipt should be sent to the Accounts Officer responsible for payment
along with 95 percent bill advising the particulars of dispatch to the consignee. The Accounts Officer after passing the 95 percent
bill should pass on the original railway receipt to the consignee for taking delivery of
the consignment. It should, however, be
ensured that there is no delay in the Accounts Office transmitting the original railway
receipt to the consignee.
The
balance of 5 percent shall be paid on receipt of the stores or each consignment thereof in
accordance with the terms of the contract in good condition by the consignee, with a
certificate to that effect endorsed on the copy of the Inspection Note by the Consignee
which shall accompany the bill submitted by the Contractor.
In the case of c.i.f. contract 95 percent of the price will be paid in India on presentation of shipping documents and inspection certificate and the remaining 5 percent on receipt of the stores in accordance with the terms of the contract in good condition by the Consignee, and on producing the certificate of such receipt endorsed on one copy of the Inspection Note by the Consignee, or alternatively at the Contractor’s option, the full value of the stores will be paid after inspection, on receipt of the consignment in accordance with the terms of the contract inn good condition by the Consignee and on producing a certificate of such receipt endorsed on one copy of the Inspection
Note.
In
all other contracts or in contracts where the Inspecting Officer also acts as the interim
consignee or where inspection is carried on by the Consignee himself at destination and in
all cases of local delivery full payment shall be made on submission of “Final 100
percent bill” supported by the Inspection Certificates and consignee’s receipt
as aforesaid to the Accounts Officer concerned.
Note:-
(1) The system of 95 percent and 5 percent
Payment is not applicable to claims amounting to Rs.1000 or below. In such cases only a single bill for value should
be submitted.
(2) In the case of Running Contracts, the system of
payment will be similar to the above except that payment would be 98 percent and 2 percent
instead of 95 percent and 5 percent specified above.
Withholding
and lieu in respect of sums claimed.
For
the purpose of Clause 2401, where the Contractor is a partnership firm or a limited
company, the Purchaser shall be entitled to withhold and also have a lien to retain
towards such claimed amount or amounts, in whole or in part from any sum found payable to
any partner/limited company, as the case may be, whether in his individual capacity or
otherwise.