Special Conditions of Contract (SCC) Rev-01 dated ( Bidders to fill SCC Rev-01 and send with their technical offer)

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1 : BHEL Tender Ref : 88/16/ 6068/KVS Project : 2X250 MW SIKKA TPS Expansion Project. UNIT 3 & 4 Description of Work Execution of Balance Works, CHP & AHP, Sikka TPS Project UNIT 3 & 4 These Special conditions shall be construed as part of tender document and shall be read along with General Conditions of Contract ( GCC - For Services along with Amendment to GCC -Annexure-A ). In case of any conflict or inconsistency between the general conditions and these Special commercial conditions of contract, the later shall prevail. 1 Scope of Work 2 Price Basis UNIT RATE BASIS Description Execution of balance Works as per enquiry and technical specification No:IS /133 at 2X250 MW Sikka TPS CHP & AHP,Expansion Unit 3 & 4 - GSECL, Dist. : JAMNAGAR. Unit rate contract. Prices will remain FIRM till completion of contract. Bidders shall quote their prices strictly as per BHEL Price Bid Format given with enquiry. Percentage weightage allocation against each item of the BOQ is disclosed by BHEL in the BOQ, which becomes the basis for allocation of item wise amount / rate against the total lumpsum price for the entire contracted scope / BOQ. Individual item rate so derived shall be deemed to be the contracted rates for BOQ items for all purposes. Total price quoted by bidder for the BOQ items/quantities given by BHEL shall be inclusive of all taxes and duties applicable but exclusive of Service tax plus Cess(SBC & KKC ) and nothing extra over BOQ quoted rates shall be payable. Service tax including Cess( SBC & KKC) will be reimbursed extra at actuals against documentary evidence. Total price quoted (BOQ Part-C) plus SBC (Swacch Bharat Cess) shall be considered for L1 evaluation. Enquiry No: Page 1 of 15 Rev.: 01

2 Description Service Tax plus KKC shall not be considered for L1 evaluation. 3 Bid submission TWO PART BID SYSTEM. Enquiry shall be Published through News Papers,BHEL-ISG website( BHELwebsite( and Bidder has to send the offer in two parts. Part-1 Techno-commercial bid :- Shall contain following documents and all are mandatory and to be submitted by Bidder: (i) EMD amount as specified in this tender document to be submitted to reach us on or before the due date & time for submission of offer. (ii) Special Conditions of Contrct (SCC) duly signed and stamped on all pages with accepted remark written by the bidder. (iii) Technical specification along with all other documents like drawing etc.and bidder s PQ supporting documents duly signed & stamped with accepted remark written by the bidder (iv) Deviation Format duly filled by the bidder. If there is no deviation, bidder to indicate as NO DEVIATION in the format( both technical & commercial terms) and submitted with technocommercial bid. (v) Un-priced price format written as quoted in the price column against each & every item, with signature & company s seal in each & every page. (vi) Accepted GCC ( For Services including Amendment to GCC-Annexure-A) with due signature and company seal. (vii) Contractor Registration/Evaluation Formats to be submitted online at portal (Applicable for vendors who are not registered with Enquiry No: Page 2 of 15 Rev.: 01

3 BHEL ISG, Bangalore) Part-2 Price bid :- Description Part-2 shall contain the original Price Bid Format with signature & company seal in each & every page. 4 Taxes & Duties All taxes shall be borne by the bidder and shall not be paid excepting Service Tax with cess(i.e. SBC & KKC) for the contract. TDS shall be made for the IT as per the Act. Bidder shall furnish proof of Service Tax registration with the Central Excise department. GST shall be mutually accepted as and when applicable. Income Tax: TDS under Income Tax, State Value Added Tax Act etc, if any, shall be deducted at prevailing rates on Gross Invoice Value from the Running Bills unless Exemption Certificate from the Appropriate Authority / Authorities is furnished 5 Terms of Payment The bidder is responsible for their own Income Tax Liability, if any and BHEL will not bear any such liability. Payment shall be made to the contractor based on the actual quantity of work executed, measured, certified by the site engineer and entered in the measurement book. The payable amount subject to statutory deductions and terms of payment etc., as applicable. The payment for work completed and certified by the BHEL Engineer shall be released in two stages. (1) 95% progress payment on completion of Erection & Commissioning on pro-rata basis as per approved billing schedule against submission of original Service Tax Invoice,RAB and Measurement Book and duly certifired by BHEL Engineer. Service tax remittance challan to be submitted for previous paid RAB. (2) 5% balance payment of the total executed bill Enquiry No: Page 3 of 15 Rev.: 01

4 Description shall be released on successful completion of all activities covered under this contract and on completion of defect liability period against submission of original Invoice,RAB and Measurement Book duly certifired by BHEL Engineer. Following documents shall have to be submitted along with final RAB:- (i) No claim / No Demand certificate (ii) Work completion certificate by BHEL Engineer. 6 Earnest Money Deposit (EMD) EMD is to be paid by tenderers for securing fulfilment of any obligations in terms of the NIT. EMD amount Rs.2,07, ( Rupees Two Lakhs Seven Thousand Three Hundred only) is to be furnished by the bidder along with Techno-commercial offer. EMD in the form of DD can be submitted in a separate cover with Enquiry No and clearly indicating as EMD on the cover to enable to open the technical bid on the date and time specified. DD shall be drawn in favour of Bharat Heavy Electricals Limited and payable at Bangalore. In case EMD is not submitted with the offer on the due date the offer is liable for rejection. Various modes of EMD deposit: The EMD may be accepted only in the following forms: (i) Cash deposit as permissible under the extant Income Tax Act (before tender opening). (ii) Electronic Fund Transfer credited in BHEL account (before tender opening). (iii)banker s cheque/ Pay order/ Demand draft, in favour of BHEL (along with offer). In case total EMD amount is more than 20 Lakh, the amount in excess of 20 lakh may be accepted in the form of Bank Guarantee from scheduled bank. The Bank Guarantee in such cases shall be valid for atleast six months. Enquiry No: Page 4 of 15 Rev.: 01

5 Description Name of Site /division : BHEL ISG Name of the Bank : ICICI Bank Limited Branch : ICICI Bank Tower, #1, Commissariat Road, Bangalore Branch Code : 0002 IFSC Code : ICIC Account No: Nature of Account : Collection A/C Phone No of Bank: Cash Receipt or proof of remittance to be attached along with part-1 offer. Forfeiture of EMD: EMD of the Tenderer will be forfeited as per NIT conditions, if: i) After opening the tender and within the offer validity period, the renderer revokes his tender or makes any modification in his tender which is not acceptable to BHEL. ii) The Contractor fails to deposit the required Security deposit or commence the work within the period as per LOI/ Contract. EMD by the tenderer shall be withheld in case any action on the tenderer is envisaged under the provisions of extant Guidelines on Suspension of business dealings with suppliers/ contractors and forfeited/ released based on the action as determined under these guidelines. EMD shall not carry any interest. EMD of successful tenderer will be retained as part of Security Deposit. 7 Security Deposit The total amount of Security Deposit will be 5% of the contract value. EMD of the successful tenderer shall be converted and adjusted towards the required amount of Security Deposit. Modes of deposit : The balance amount (after adjusting EMD amount of successful contractor) to make up the required Security Deposit of 5% of the contract value shall be Enquiry No: Page 5 of 15 Rev.: 01

6 Description submitted in the following forms: i) Cash (as permissible under the extant Income Tax Act) ii) Local cheques of Scheduled Banks (subject to realization)/ Pay Order/ Demand Draft/ Electronic Fund Transfer in favour of BHEL iii) Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. The Bank Guarantee format should have the approval of BHEL. iv) Fixed Deposit Receipt issued by Scheduled Banks/ Public Financial Institutions as defined in the Companies Act (FDR should be in the name of the Contractor, a/c BHEL) v) Securities available from Indian Post offices such as National Savings Certificates, Kisan Vikas Patras etc. (held in the name of Contractor furnishing the security and duly endorsed/ hypothecated/ pledged, as applicable, in favour of BHEL) (Note: BHEL will not be liable or responsible in any manner for the collection of interest or renewal of the documents or in any other matter connected therewith) Submission of Security: At least 50% of the required Security Deposit, including the EMD, should be submitted before start of the work. Balance of the Security Deposit shall be collected by deducting 10% of the gross amount progressively from each of the running bills of the Contractor till the total amount of the required Security Deposit is collected. If the value of work done at any time exceeds the contract value, the amount of Security Deposit shall be correspondingly enhanced and the additional Security Deposit shall be immediately deposited by the Contractor or else the amount shall be recovered from payment/s due to the Contractor. The recoveries made from running bills (cash deduction towards balance SD amount) shall be released against submission of equivalent Bank Guarantee in acceptable form, but only once, before completion of work. Security Deposit shall be released to the Contractor Enquiry No: Page 6 of 15 Rev.: 01

7 Description upon fulfilment of contractual obligations as per terms of the contract. The Security Deposit shall not carry any interest. 8 Reverse Auction/ Price bid opening BHEL reserves the right to go for Reverse Auction (RA) instead of opening the sealed envelope price bid, submitted by the bidder. This will be decided after techno-commercial evaluation. All bidders to give their acceptance for participation in RA. Non-acceptance to participate in RA may result in non-consideration of their bids, in case BHEL decides to go for RA. The Terms & Conditions of Reverse Auction is enclosed as Annexure-I to this SCC. 9 Work completion period 10 Liquidated damages 11 Defect Liability period for work carried out by the bidder 12 Quantity variation 12(twelve) Months from the date of LOA/WO whichever is earlier. If the contractor fails to maintain the required progress of work which results in delay in the completion of the work as per the contractual completion period, BHEL shall have the right to impose Liquidated Damage/Penalty at the rate of 0. 5% of the contract value, per week of delay or part thereof subject to a maximum of 10% of the contract value including amendments. Defect Liability Period shall be 6 (Six) months from the date of completion of all activities as per the scope of contract and certified by BHEL Engineer incharge vide the Work Completion Certificate. In case any defective works noticed within the Detect Liability Period the same shall be made good by the contractor at his own cost. In case the contractor fails to make good the defective work, BHEL. Shall carry out the same at the Risk & Cost of the contractor by encashing the Security Deposit. Quantities given by BHEL the quantities given are tentative are likely to change by ± 30% during execution. The bidder has to execute ± 30% quantities at the same rate, terms & conditions. Enquiry No: Page 7 of 15 Rev.: 01

8 13 14 Contractor Approval Risk & Cost 15 Validity of offer. 16 Payment Mode to contractor 17 Ambiguity Description Acceptance of Contractor shall be subject to approval from customer. As per the Risk & Cost policy, if bidder fails to render the services, tools and tackles or failed to carry out the job on time specified under their scope, BHEL will get the entire job / part thereof done at the risk & cost of the bidder. The actual cost incurred for such jobs along with the departmental 15% will be recovered from the contractor's bills pending with BHEL/securities/guarantees. 90 days from the date of Techno-Commercial Bid opening. All the payment shall be made through Electronic Fund Transfer only (EFT). In case of conflict of clauses in the tender document, SCC clause will prevail. 18 Bills Submission All the bills and other related documents against our order to be submitted to Resident Manager/Engineer at site. The bills shall be in the RAB format. 19 Type of contract 20 Departmental charges 21 Banned contractors 22 Banning of business dealings Unit rate contract Any material or service rendered by BHEL (unless specifically stipulated to be free of cost / cost recoverable basis) to the contractor, the same shall be made available along with 15% departmental charges over and above the cost. BHEL shall not be responsible for any delay due to this reason and delay shall be to contractors account. The offers of bidders who are on the banned list of contractors, who engage the services of banned firms/contractors shall be rejected. Banning of business dealings with contractors shall be resorted to for serious lapses in performance / abandoning the site work without completing, resorting to unfair means including false certification, not accepting the contract in full or part thereof after Enquiry No: Page 8 of 15 Rev.: 01

9 awarding the contract etc. Description 23 Labour license In the scope of bidder. Bidders shall obtain labour license in their name. Bidder shall have valid license to work in the State of Gujarat if not the same shall be obtained and produced before finalization of contract. 24 Labour laws Bidder should follow all the labour laws as applicable at the place of work the respective state including payment of minimum wages fixed by respective State Government. 25 Insurance By the bidder for his workers employed by him, tools & tackles, workmen compensation insurance. Bidders shall also take third party insurance Rs 2 Lakhs per occurrence and maximum of Rs.10 Lakhs. 26 Workmen compensation Insurance / Third party insurance By the bidder for all workmen employed by him. 27 Arranging the gate pass for bidder s workers & staff. 28 Construction water supply 29 Construction electricity supply. By the bidder Construction water supply will be provided at one point in the site. Further distribution by the bidder. Construction electricity supply will be provided at one point in the site. Further distribution by the bidder. 30 All equipments & By the bidder. consumables necessary for the material handling / stores management / construction required for the completion of work. Enquiry No: Page 9 of 15 Rev.: 01

10 31 Office / Residential accommodatio n, Local transport 32 Tools and Tackles, Calibrated testing instruments, Material Handling Equipment etc 33 Approval from Statutory Authorities 34 BHEL s right to cancel the tender. 35 BHEL s right to cancel the awarded contract. 36 OVERRUN COMPENSATION (ORC) 37 PRICE VARIATION COMPENSATION (PVC) 38 Coordination with local Police Authorities to lodge the FIR and insurance Description Shall be arranged by the contractor. No separate payment shall be made by BHEL for the same. By the bidder. By contractor. All fees and expenditure towards the same should be borne by contractor.bhel will not reimburse fees and related expenditure. BHEL reserves the right to cancel the tender without assigning any reason whatsoever. BHEL shall hold the decision to cancel the awarded contract at any point of time without assigning any reason and no claim from the contractor shall be entertained. BHEL reserves the right to ACCEPT OR REJECT the offer without assigning any reason. Not applicable to present enquiry. Not applicable By the bidder. Enquiry No: Page 10 of 15 Rev.: 01

11 agencies for any theft or loss of materials 39 Registering / coordination / laisoning with the Statutory Authorities / local bodies 40 Visits to GSECL Sikka offices/ BHEL / Consultant s office / Project site /site offices 41 Receipt of materials from BHEL / Customer 42 Rejection based on past performance By the bidder. Description Visits as required to BHEL Bangalore or M/s GSECL office / consultant s office and project site and any other place for official meetings / discussions / clarifications / specification shall be made by the bidder at their own cost. All expenditure on account of the same shall be borne by the bidder. Bidder shall receive the materials from BHEL/customer s stores. Further lifting, loading, transportation, unloading, storage, security etc in bidder s scope. BHEL reserves the right to reject the offer in case bidder s past performance in any of previous contract with BHEL found unsatisfactory. 43 Other Terrms A) Offers received after the due date & time for submission of quotations will not be accepted. B) In case of Price bid opening, Bids of technically & commercially accepted and customer approved contractors will be opened in the presence of bidders who choose to be present and date of price bid opening will be intimated to the bidders. C) Final accepted unit rates shall be valid for the entire duration of the contract including extensions granted, if any, thereof Monthly progress report, action plan for completion of balance work, material reconciliation statement and constraints if any to complete Enquiry No: Page 11 of 15 Rev.: 01

12 Description the work should be prepared and submitted. D) GCC- For Services along with Amendment to GCC Annexure-A is applicable to Bidder. 44 Mobilisation advance 45 Arbitration Not Applicable. All questions and disputes/difference relating to the meaning of the specifications, design, drawings and instructions and or interpretation of the contract or its clauses and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawing, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration appointed by the Chairman &Managing Director/Executive Director (Incharge of the Unit) / General Manager (Incharge of the Unit) / concerned Additional General Manager of the Unit of BHEL. The cases referred to arbitration shall be other than those for which the decision of the Dy. General Manager / Sr. Manager /Project Manager/Manager/Sr. Engineer/Engineer, is expressed in the contract to be final and conclusive. The arbitrator to whom the matter is originally referred being unable to act for any reason, Chairman & Managing Director/Executive Director (Incharge of the Unit) / General Manager (Incharge of the Unit) / concerned Additional General Manager of the Unit of BHEL, shall appoint another person to act as sole arbitrator and such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor. Subject as aforesaid the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made there under and for the time being in force shall apply to the arbitration proceedings. Enquiry No: Page 12 of 15 Rev.: 01

13 46 Prequalification Criteria Description It is a term of the contract that the party invoking arbitration shall specify the dispute or disputes including specifying the quantum of financial claim, if any, to be referred to arbitration under this clause together with the amount or amounts claimed in respect of each such dispute. The arbitrator (s) shall complete the entire arbitration and publish an award within a period of twelve months from the date the Tribunal enters upon the reference. The parties to this arbitration agreement may before or at the time of invoking the Arbitration clause, may indicate in writing for FAST TRACK PROCEDURE wherein the Arbitrator shall pass an award within six months from the date the Tribunal enters upon the reference and to that effect, the Tribunal may dispense with any technical formalities and conduct the proceedings without oral hearing, subject to acceptance of such Fast Track procedure by other party. The work under the Contract shall continue during the arbitration proceeding and no payment due to the Contractor shall be withheld on account of such proceedings. The Arbitrator shall be deemed to have entered on the reference on the date one party issues notice to other party invoking arbitration clause under this. The Venue of arbitration shall be Bangalore and the language will be English only. The award of the arbitrator shall be final, conclusive and binding all parties to this contract Enclosed separately with the tender documents for bidder compliance and submission along with offer. Notes: 1. Bidders to accept above without any deviation. Bid with deviations is liable for rejection. Any other Terms & Conditions of the bidder other than the SCC of BHEL submitted elsewhere in their offer shall not be considered. Enquiry No: Page 13 of 15 Rev.: 01

14 2. Filled in BHEL SCC format shall be submitted by the bidder along with the technical bid. No SCC clause shall be left blank. Otherwise offer shall be considered incomplete and will be liable for rejection. 3. These Special conditions shall be construed as part of tender document and shall be read along with General Conditions of Contract ( GCC - For Services along with Amendment to GCC -Annexure-A ). In case of any conflict or inconsistency between the general conditions and these Special commercial conditions of contract, the later shall prevail. 4.Bidders to note that all the pages of BHEL enquiry documents including Technical Specifications,SCC,GCC along with Amendment to GCC-Annexure-A, Un-priced format with Weightage sheet, Deviation format shall be signed and stamped and submitted with Techno-commercial offer as a token of acceptance of our Tender. All the documents sought for meeting the PQ shall be submitted. 5.Deviations if inevitable must be clearly mentioned in the DEVIATION FORMAT and submitted with techno-commercial bid. If required, please use additional sheet. If there is No Deviation, please indicate same in the DEVIATION FORMAT. Place: Date : Signature and Name of bidder with Company seal. Enquiry No: Page 14 of 15 Rev.: 01

15 Annexure-I Terms & Conditions of Reverse Auction BHEL reserves the right to go for Reverse Auction (RA) (guidelines as available on instead of opening the sealed envelope price bid, submitted by the bidder. This will be decided after techno-commercial evaluations. Bidders to give their acceptance with the offer for participation in RA. Non-acceptance to participate in RA may result in nonconsideration of their bids, in case BHEL decides to go for RA. Those bidders who have given their acceptance to participate in Reverse Auction will have to necessarily submit Process compliance form (to the designated service provider) as well as Online sealed bid in the Reverse Auction. Non-submission of Process compliance form or Online sealed bid by the agreed bidder(s) will be considered as tampering of the tender process and will invite action by BHEL as per extant guidelines for suspension of business dealings with suppliers/contractors (as available on The bidders have to necessarily submit online sealed bid less than or equal to their envelope sealed price bid already submitted to BHEL along with the offer. The envelope sealed price bid of successful L1 bidder in RA, if conducted, shall also be opened after RA and the order will be placed on lower of the two bids (RA closing price & envelope sealed price) thus obtained. The bidder having submitted this offer specifically agrees to this condition and undertakes to execute the contract on thus awarded rates. If it is found that L1 bidder has quoted higher in online sealed bid in comparison to envelope sealed bid for any item(s), the bidder will be issued a warning letter to this effect. However, if the same bidder again defaults on this count in any subsequent tender in the unit, it will be considered as fraud and will invite action by BHEL as per extant guidelines for suspension of business dealings with suppliers/contractors (as available on As a remainder to the bidders, system will flash following message (in RED Color) during the course of online sealed bid : Bidders to submit online sealed bid less than or equal to their envelope sealed bid already submitted to BHEL Enquiry No: Page 15 of 15 Rev.: 01

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