ANNEXURE II TO WO Ref : SLIT/GE/7002/ BOILER/WO- 001/0607 DTD: 27 – 02 - 07

GENERAL CONDITIONS OF CONTRACT

CLAUSE NO. TITLE PAGE NO.

GC1.0 DEFINITION 3

GC2.0 WORDS AND PHRASES 5

GC3.0 SPECIAL CONDITIONS OF CONTRACT 5

GC4.0 INDEPENDENT CONTRACTOR 5

GC5.0 AUTHORISED REPRESENTATIVES 5

GC6.0 NOTICES 5

GC7.0 CONTRACT INTERPRETATION 5

GC8.0 STANDARDS AND CODES 6

GC9.0 LAWS AND REGULATIONS 6

GC10.0 ORDER OF PRECEDENCE 6

GC11.0 COMMERCIAL ACTIVITIES 6

GC12.0 PUBLICITY AND ADVERTISING 6

GC13.0 TAXES 6

GC14.0 LABOUR, PERSONNEL AND WORK RULES 6

GC15.0 MEDICAL FACILITIES AND SERVICES 7

GC16.0 SAFETY AND HEALTH 7

GC17.0 FIRE PREVENTION 7

GC18.0 USE OF INTOXICANTS 7

GC19.0 SITE CONDITIONS AND NATURAL RESOURCES 8

GC20.0 UNFAVOURABLE WORKING CONDITIONS 8

GC21.0 ENVIRONMENTAL CONDITIONS 8

GC22.0 ILLUMINATION 8

GC23.0 CONTRACTOR’s WORK AREA 8

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ANNEXURE II TO WO Ref : SLIT/GE/7002/ BOILER/WO- 001/0607 DTD: 27 – 02 - 07

CLAUSE NO. TITLE PAGE NO.

GC24.0 TOOLS, TACKLES AND SCAFFOLDING, LIEN OF 8

EQUIPMENT

GC25.0 CO-OPERATION WITH OTHERS 9

GC26.0 PROTECTION OF WORK 9

GC27.0 ENGINEER’s INSTRUCTIONS 10

GC28.0 PROGRESS 10

GC29.0 PAYMENTS 10

GC30.0 RECTIFICATION / MODIFICATION / CHANGE ORDER 11

GC31.0 BACKCHARGES 11

GC32.0 INDEMNITY 11

GC33.0 SUSPENSION 12

GC34.0 POSSESSION PRIOR TO COMPLETION 12

GC35.0 TERMINATION FOR DEFAULT 12

GC36.0 INSPECTION FOR WORKS 13

GC37.0 FINAL INSPECTION AND ACCEPTANCE 13

GC38.0 EXAMINATION OF CONTRACTOR’s RECORD AND 13

ACCOUNTS

GC39.0 WARRANTY 13

GC40.0 FORCE MAJEURE 13

GC41.0 EXCLUSIVE WORKING 14

GC42.0 NON WAIVER 14

GC43.0 SURVIVAL 14

GC44.0 LANGUAGE AND MEASURE 14

GC45.0 ARBITRATION 14

GC46.0 JURISDICTION 14

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ANNEXURE II TO WO Ref : SLIT/GE/7002/ BOILER/WO- 001/0607 DTD: 27 – 02 - 07

GC1.0 DEFINITIONS

In construing the Contract the following words and expressions shall have the following
meanings hereby assigned to them:-
“Contract” Means the Contract Agreement Form and all documents listed
therein.

“Contract Price” The sum stated in PRICE SCHEDULE as the sum of the amounts
payable to the CONTRACTOR for the execution of the Work, as
adjusted pursuant to the terms of this Contract.

“Construction Means the time period setforth for performance of the Work under
Schedule” this Contract.

“CUSTOMER” Means the Person with whom SLIT entered in to Agreement for
carrying out the Erection and Pre-commissioning Work of the Plant
and completion of the Project.

“SLIT” Means “SHANGHAI LEICHUN ( I ) TRADING COMPANY” (who is

appointed by CUSTOMER as CONSTRUCTION CONTRACTOR
for carrying out the erection and Pre-commissioning Work of the
Plant) and includes its personal representatives, successors and
permitted assignees, by whom this ENQUIRY is issued.

“CONTRACTOR” Means the person or persons, firm or company or corporation

whose tender has been accepted by SLIT and includes the
CONTRACTOR’s legal representatives, his successors and
permitted assignees.

“Subcontractor” Any Person (other than the CONTRACTOR, SLIT or CUSTOMER)

to whom CONTRACTOR has sub-let any part of the Work or with
whom the CONTRACTOR has entered into any contract for supply
of goods, services, materials or equipment in connection with the
Work, including any such Person’s legal successors in title or
permitted assignees and, unless otherwise stated, all sub-sub-
contractors and suppliers of any tier to such Person.

“Clearances” Any consent, license, approval, permit or other authorisation of

whatsoever nature which is required to be granted by any
Competent Authority:
For the construction work;
For such matters as may be necessary in connection with the Work
or the performance of the CONTRACTOR’s, SLIT’s or
CUSTOMER’s obligation under this Contract.

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Competent Any agency, authority, department, inspectorate, minister, ministry

Authority” or public or statutory person (whether autonomous or not) of
Government of India, any other State of the India.

“Mobilisation” Means establishment of sufficiently adequate infrastructure by the

CONTRACTOR at Site comprising of construction equipment, aids,
tools, tackles including setting of site office, staff and labour, who,
with the so established infrastructure shall be in a position to
commence execution of Work at Site, in accordance with the
agreed Time Schedule. Mobilisation shall be considered to have
been achieved, if CONTRACTOR is able to establish infrastructure
as indicated above to begin Work in accordance with agreed
schedule to work implementation to the satisfaction of SLIT.

“Week” Means calendar week.

“Month” Means calendar month.

“Mechanical Means that the whole Plant is installed and Pre-Commissioned

Completion of the successfully and handed over by CONTRACTOR to SLIT for
Project” commissioning to be carried out by CUSTOMER’s Commissioning
Team with assistance of CONTRACTOR and SLIT.

“Overall Mechanical Means the Mechanical Completion of the whole of the Project ready
Completion of the for commissioning and start-up.
Project”
“Person” Any natural person, firm, corporation, company, voluntary
association, partnership, joint venture, trust, limited organization,
unlimited organization, Competent Authority or other entity.

“Plant” Machinery, apparatus, materials, equipment or articles of

whatsoever nature to be provided by CONTRACTOR under the
Contract.
“Project” Means the whole of the work to be completed by SLIT in
accordance with the Agreement between SLIT and CUSTOMER.

“Site” The land and other places on, under, in or through which the Work
or Temporary Work are to be executed and any other lands or
places provided by the SLIT or CUSTOMER.

“Subcontract” A contract between CONTRACTOR and a Subcontractor.

“Temporary Work” All temporary works of every kind required in or about in execution
of the Work.

“Work” The provision of all Plant and all work to be done by

CONTRACTOR under this Contract or part thereof as the case may
be and shall include all extra, additional, altered or substituted
works as required for purpose of this Contract.

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 SLIT
GC2.0 WORDS AND PHRASES and into the Contract so far as it may be practicable to do
so.
Where the words “as shown”, “as detailed”, “as indicated”,
or word of like import are used in this Contract, reference Wherever any portion of General Condition of Contract is
is to the drawings listed in this Contract unless the repugnant to at variance with any provision of the Special
context clearly indicates a different meaning. Where the Conditions of Contract then, unless a different intention
words “required”, “approved”, “satisfactory”, “determined”, appears, the provisions of the Special Conditions of
“acceptable” or words of like import are used in this Contract shall to the extent of such repugnance, or
Contract, action SLIT or CUSTOMER is indicated unless variation prevail.
the context clearly indicates otherwise, and all the Work
shall be in accordance therewith. Wherever it is mentioned in the specifications that
CONTRACTOR shall perform certain work or provide
The words “include” and “including” are to be construed certain facilities, it is understood that CONTRACTOR
without limitation. shall do so at his cost.

Whenever provision is made for the giving of notice, GC4.0 INDEPENDENT CONTRACTOR
approval or consent by any Person, unless otherwise
specified such notice, approval or consent shall be in CONTRACTOR represents that it is fully experienced,
writing and the words “notify” and “approve” shall be properly qualified, registered, licensed, equipped,
construed accordingly. organised, and financed to perform the Work under this
Contract. CONTRACTOR shall act as an independent
References to a particular Clause, paragraph, sub- contractor and not as the agent of SLIT or CUSTOMER in
paragraph or Attachment shall, except where the context performing this Contract, maintaining complete control
otherwise requires, be a reference to that Clause, over its employees and all of its Subcontractors. Nothing
paragraph, sub-paragraph or Attachment in or to these contained in this Contract or any Subcontract awarded by
General and Special Conditions. CONTRACTOR shall create any contractual relationship
between any Subcontractor and either SLIT or
References in the singular shall also include references in CUSTOMER. CONTRACTOR shall perform the Work
the plural and vice versa wherever the context so hereunder in accordance with its own methods subject to
requires. compliance with the Contract.

Headings are inserted for convenience and are not to be GC5.0 AUTHORISED REPRESENTATIVES
deemed part thereof or be taken into consideration in the
interpretation or construction thereof or of the Contract. Before starting work, CONTRACTOR shall designate in
writing an authorised representative acceptable to SLIT to
A requirement that a CONTRACTOR-furnished document represent and act for CONTRACTOR and shall specify
is to be submitted for or subject to “Authorisation to any and all limitations of such representative’s authority.
Proceed”, “Approval”, “Acceptance”, “Review”, Such representative shall be present or be represented at
“Comment”, or any combinations of such words or words the Site at all times when work is in progress, and shall
like import shall mean unless the context clearly indicates be empowered to receive communications in accordance
otherwise, that CONTRACTOR shall, before with this contract on behalf of CONTRACTOR. During
implementing the information in the document, submit periods when the Work is suspended, arrangements shall
the document, obtain resolution of any comments and be made for an authorised representative acceptable to
authorisation to proceed. Such review shall not mean SLIT for any emergency work that may be required. All
that a complete check will be performed. Authorisation to communications given to the authorised representative by
proceed shall not constitute acceptance or approval of SLIT in accordance with this Contract shall be binding
design details, calculations, analyses, tests, construction upon CONTRACTOR. SLIT shall designate in writing one
methods or materials developed or selected by or more representatives to represent and act for SLIT and
CONTRACTOR and shall not relieve CONTRACTOR CUSTOMER and to receive communications from
from full compliance with requirements of the Contract. CONTRACTOR. Notification of changes of authorised
representatives for SLIT or CONTRACTOR shall be
Such action, or failure to act, shall not relieve provided in advance, in writing, to the other party.
CONTRACTOR of its contractual responsibilities for
performance of this Contract. Wherever in this Contract it GC6.0 NOTICES
is provided that CONTRACTOR shall perform certain
work “at its expense” or “without charge” or that certain Any notices provided for hereunder shall be in writing
work “will not be paid for separately”, such quoted words served by registered mail to the address of that party as
mean that CONTRACTOR shall not be entitled to any shown on the face of the Contract Agreement Form or as
additional compensation from CUSTOMER for such such address may have been changed by written notice.
work, and the cost thereof shall, unless otherwise
specified, be considered as included in the payment for GC7.0 CONTRACT INTERPRETATION
other items of the Work.
All questions concerning interpretation or clarification of
GC3.0 SPECIAL CONDITIONS OF CONTRACT this Contract, including the discovery of conflicts, errors
or omissions, or the acceptable performance thereof by
Special conditions of Contract shall be read in conjunction CONTRACTOR, shall be immediately submitted in
with the General Conditions of Contract, specification of writing to SLIT for resolution. All determinations,
work, Drawings and any other documents forming part of instructions, and clarifications of SLIT shall be final and
this Contract wherever context so requires. conclusive unless determined by a court of competent
jurisdiction to have been fraudulent or capricious, or
Notwithstanding the sub-division of the documents into arbitrary, or so grossly erroneous as necessarily to imply
these separate sections and volumes every part of each bad faith, or not supported by substantial evidence. At
shall be deemed to be supplementary to and all times CONTRACTOR shall proceed with the Work in
complementary of every other part and shall be read with accordance with the determinations, instructions, and

SLIT / GCC Page 5 of 15

 SLIT
clarifications of SLIT. CONTRACTOR shall be solely GC12.0 PUBLICITY AND ADVERTISING
responsible for requesting instructions or interpretations
and shall be solely liable for any costs and expenses Neither CONTRACTOR nor its subcontractors nor their
arising from its failure to do so. CONTRACTOR’s failure employees shall make any announcement, take any
to protest SLIT’s determinations, instructions, photographs, or release any information concerning this
clarifications or decisions within fourteen (14) days after Contract, or the Project, or any part thereof to any
receipt thereof shall constitute a waiver by member of the public, business entity, or any official
CONTRACTOR of all its right to so protest. body, etc., unless prior written consent is obtained from
SLIT.
GC8.0 STANDARDS AND CODES
GC13.0 TAXES
Wherever references are made in this Contract to
standards or codes in accordance with which the Work CONTRACTOR shall pay all taxes, levies, duties and
under this Contract is to be performed, the edition or assessments of every nature due in connection with the
revision of the standards or codes current on the effective Work and the Temporary Work under this Contract and
date of this Contract shall apply unless otherwise shall make any and all payroll deductions required by the
expressly stated. In case of conflict between any laws of India, and hereby indemnifies and hold harmless
referenced standards and codes and the Contract, the SLIT and CUSTOMER from any liability on account of
latter shall govern. any and all such taxes, levies, duties, assessments and
deductions.
GC9.0 LAWS AND REGULATIONS
Works Contract Tax (If applicable) : CONTRACTOR’s
All applicable laws, directives, ordinances, statutes, prices set forth in PRICE SCHEDULE shall not include
rules, regulations, orders or decrees in effect at the time the works contract tax payable by CONTRACTOR.
the Work under this contract is performed shall apply to However, CONTRACTOR shall state separately in PRICE
CONTRACTOR and its employees and representatives. SCHEDULE the amount of works contract tax payable by
CONTRACTOR in respect of this Contract. SLIT may at
References to the applicable laws, laws of India or Indian its option, provide an exemption or otherwise pay to
law include the laws, rules and regulations of any state CONTRACTOR the amount of such tax actually paid by
forming part of India, as may be applicable to the activity CONTRACTOR as evidenced by vouchers, receipts or
of CONTRACTOR under this Contract. other written evidence of such payment as SLIT and
CUSTOMER may reasonably require.
CONTRACTOR shall indemnify SLIT, CUSTOMER, their
affiliates and their respective directors, officers, GC14.0 LABOUR, PERSONNEL AND WORK RULES
employees and agents against all governmental penalties
and sanctions payable to a Competent Authority, together CONTRACTOR shall employ only competent and skilled
with any reasonable legal expenses incurred in personnel to perform the work and shall remove from site
connection therewith, to the extent arising out of any any CONTRACTOR personnel or Subcontractor
failure of CONTRACTOR, any Subcontractor or their personnel determined to be unfit or to be acting in
respective agents or employees to comply in the violation of any provision of this contract. CONTRACTOR
performance of this Contract with any Indian law or is responsible for maintaining labour relations in such
Directive. manner that there is harmony among workers and shall
comply with and enforce Site procedures, regulations and
GC10.0 ORDER OF PRECEDENCE work rules established by SLIT and CUSTOMER.

The Contract Agreement Form, all documents listed All travelling expense including provisions of all
therein, and subsequently issued Change Notices and necessary transport to and from Site for the
amendments are essential parts of this Contract and a CONTRACTOR’s employees and labour shall be the sole
requirement occurring in one is binding as though responsibility of the CONTRACTOR.
occurring in all. In resolving conflicts, discrepancies,
errors or omissions pursuant to the General Condition CONTRACTOR shall fully comply with all the provisions
titled “CONTRACT INTERPRETATION” the following of labour, civil and other state and central laws, statutory
order of precedence shall be used: rules and regulations. In case of CONTRACTOR’s non-
compliance with any provisions under such labour, civil
and other state and central laws, statutory rules and
1. Contract Change Notices and regulations, etc., CONTRACTOR shall indemnify SLIT
Amendments, if any and CUSTOMER from and against all liabilities,
2. Work Order damages, penalties, demands, etc.
3. Letter Of Intent
4. Schedule of Quantities CONTRACTOR shall obtain all permits and licenses
5. Responsibility Chart required to execute the Contract, all registration and/or
6. Special Conditions of Contract statutory inspection fees shall be paid by CONTRACTOR.
7. General Conditions of Contract
8. Enquiry In case SLIT or CUSTOMER becomes liable to any
wages or dues to the labour or any Government agency
under any of the provisions of the Minimum Wages Act,
GC11.0 COMMERCIAL ACTIVITIES Workmen Compensation Act, Contract Labour Regulation
Abolition Act, applicable Indian laws or any other law due
Neither CONTRACTOR nor its subcontractors nor their to an act or omission by CONTRACTOR , SLIT or
employees shall establish any commercial activity or CUSTOMER may make such payments and the total
issue concessions or permits of any kind to third parties amount of such payments shall be deducted from
for establishing commercial activities on the Site or any amounts due or which may become due to
other land owned by SLIT or CUSTOMER. CONTRACTOR.

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GC14.0 LABOUR, PERSONNEL AND WORK RULES CONTRACTOR shall continually and diligently inspect all
(CONTINUED) work, materials and equipment to discover any conditions
which might involve such risks and shall be solely
As far as possible, unskilled workers shall be engaged responsible for discovery and corrections of any such
from the local area in which the Work is being executed. conditions.

CONTRACTOR shall be responsible and will assume CONTRACTOR shall comply with SLIT and
liability in respect of all claims for any retrenchment or CUSTOMER’s safety and health requirements.
benefits and/or compensation for accidents, injuries and CONTRACTOR shall have sole responsibility for
in the event of death on the Site which may occur in the implementing its safety and health program.
course of performing work by workers employed by
CONTRACTOR and its Subcontractors. Neither SLIT not CUSTOMER shall be responsible for
supervising the implementation of CONTRACTOR’s
In the event the workers engaged by CONTRACTOR or safety program, and neither SLIT not CUSTOMER shall
its Subcontractors cause any disturbance, organise any have responsibility for the safety of CONTRACTOR’s or
demonstration, strike. Sit-in or picket on or about the Site its Subcontractor’s employees.
or the office of the SLIT or CUSTOMER shall forthwith
remove the same. CONTRACTOR’s failure to correct an unsafe condition or
SLIT may without prejudice to its other rights take any unsafe act by its personnel after notice thereof shall be
steps for the removal of such obstruction as it may desire. grounds for:
However, the occurrence of any such event of default on
the part of CONTRACTOR. a) An order to suspend the affected operations until the
unsafe condition is corrected and,
GC15.0 MEDICAL FACILITIES AND SERVICES b) If the violation continues, default termination of this
Contract for such failure.
CONTRACTOR shall at its own expenses arrange for
medical services and facilities for any of its personnel CONTRACTOR shall furnish safety equipment and
requiring first aid, ambulance service, inpatient or enforce the use of such equipment by its employees.
outpatient services.
CONTRACTOR shall maintain accident, injury and other
Where SLIT or CUSTOMER have first aid facilities at the records required by applicable laws and regulations or by
Site they may, at their sole option, make available their SLIT and shall furnish SLIT a monthly summary of injuries
first aid facilities for the treatment of employees of and labour hours lost due to injuries.
CONTRACTOR who may be injured or become ill while
engaged in the performance of the Work under this Suitable arrangements shall be made for the prevention
contract. SLIT and CUSTOMER reserve the right to of epidemics and all necessary welfare and hygiene
charge CONTRACTOR cost of such services provided requirements. In the event of the outbreak of any illness
and recover such costs from any monies due to of an epidemic nature, CONTRACTOR shall comply with
CONTRACTOR. and carry out such regulations, orders requirements of
any Competent Authority for the purpose of dealing with
If first aid facilities and/or services are made available to and overcoming the same.
CONTRACTOR’s employees then, in consideration in use
of such facilities and the receipt of such services, CONTRACTOR shall at all times take all reasonably
CONTRACTOR hereby agrees: precautions to protect all staff and labour employed on
the site from insect nuisance, vermin and other pests and
a) To release, defend, indemnify and hold harmless reduce dangers to health and the general nuisance
SLIT, CUSTOMER and their representatives, occasioned by the same.
successors or assigns, and all of their officers and
employees from and against any and all claims, GC17.0 FIRE PREVENTION
demands, liabilities, including attorney’s fees, arising
from the receipt of such services or the use of such CONTRACTOR shall have to provide Fire Extinguishers/
facilities by CONTRACTOR’s employees. Fire Buckets and drum at the Site as recommended by
SLIT and CUSTOMER.
b) Upon receipt of any notice from SLIT or
CUSTOMER of any such claim, demand or liability CONTRACTOR shall take all precautionary measures
being pursued against SLIT or CUSTOMER, to not and exercise utmost care in handling the inflammable gas
only undertake the defense of such claim, demand cylinders/inflammable liquid/paints etc. as required under
or liability, but also upon entry of judgement, to the law and/or advised by SLIT and CUSTOMER.
make any and all payments necessary thereunder,
and CONTRACTOR shall not built temporary combustible
structures near or around the Site.
c) That in the event any of CONTRACTOR’s
employees requires off-site medical services, GC18.0 USE OF INTOXICANTS
including transportation thereto, CONTRACTOR
shall promptly pay for such services directly to The unauthorised sale of spirits or other intoxicating
providers thereof. beverages upon the work in any of the buildings,
encampments owned, occupied by or within the control
GC16.0 SAFETY AND HEALTH of CONTRACTOR or any of his employee is forbidden
and CONTRACTOR shall exercise his influence and
CONTRACTOR shall be fully and solely responsible for authority to the utmost extent to secure strict compliance
conducting all operations under this Contract at all times with this condition.
in such a manner as to avoid the risk of bodily harm to
persons and damage to property.

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GC19.0 SITE CONDITIONS AND NATURAL a) Dust control of all excavations, material sites, roads,
RESOURCES and disposal areas within its assigned work areas of
responsibility.
CONTRACTOR shall have the sole responsibility for
satisfying itself concerning the nature and location of the b) Suitable equipment, facilities and precautions to
Work and the general and local conditions, including but prevent the discharge of contaminants which may
not limited to the following: pollute the atmosphere, any body of water, or land
areas, which may harm fish or other wildlife.
a) Transportation, access, disposal, handling and
storage of materials; In the event CONTRACTOR encounters on the Site
b) Availability and quality of labour, water, electric material reasonably believed to be a toxic or hazardous
power and road conditions; material or a toxic or hazardous waste, CONTRACTOR
c) Climatic conditions, tides, and seasons; shall immediately stop work in the affected area and
d) Physical conditions at the Site and the project area notify SLIT and CUSTOMER of the condition. Pending
as a whole; receipt of written instruction from SLIT, CONTRACTOR
e) Topography and ground surface and sub-soil shall not resume work in the affected area. Upon being
conditions; notify in writing by SLIT. CONTRACTOR shall remove or
f) River hydrology and river stages; otherwise make safe any such materials encountered by
g) Equipment and facilities needed preliminary to and at the Site.
during the performance of the Work;
h) Means of communications with the Site; and Hazardous Materials during Construction:CONTRACTOR
i) Transportation, accommodation and meals for its shall be responsible for the removal from the Site or
employees and labourers. otherwise making safe in accordance with applicable
Laws and Directives, any materials generated or released
The failure of CONTRACTOR to acquaint with any by CONTRACTOR during its construction activities at the
applicable conditions will not relieve CONTRACTOR of Site which are toxic or similarly hazardous to the health or
the responsibility for properly estimating either the safety of persons or to the environment.
difficulties or the cost of successfully performing
CONTRACTOR’s obligations under this Contract. CONTRACTOR shall be liable for and shall indemnify,
protect, defend and hold harmless SLIT, CUSTOMER,
CONTRACTOR shall not be entitled to any extension to and their affiliates and their-respective directors, officers,
the Completion of the Work Date or any adjustment of the employees and agents from and against any and all
Contract price on grounds of misinterpretation or demands, claims, suits and causes of action and any and
misunderstanding of any such matter, nor shall it, except all liability, costs, expenses, settlements and judgements
as so provided, be released from any of the risks incurred in connection therewith (including court costs
accepted or obligations undertaken by it under the and attorney’s fees incurred by SLIT and CUSTOMER)
Contract on the ground that it did not or could not arising out of such toxic or hazardous materials for which
reasonably have foreseen any matter which affects the the CONTRACTOR is responsible pursuant to this article.
execution of the work.
GC22.0 ILLUMINATION

GC20.0 UNFAVORABLE WORKING CONDITIONS When any work is performed at night or where daylight is
obscured, CONTRACTOR shall, at its expense, provide
CONTRACTOR shall confine all its field operations to artificial light sufficient to permit work to be carried on
those portions of Work which can be performed without efficiently, satisfactorily and safely, and permit through
subjecting the Plant to adverse effects during inclement inspection. During such time periods access to the place
weather conditions monsoon storms and other of work shall also be clearly illuminated. All wiring for
unfavourable construction conditions. No field activities electric light and power shall be installed and maintained
shall be performed by CONTRACTOR, which might in a safe manner and meet all applicable codes and
adversely affect the quality and efficiency thereof, unless standards.
appropriate precautions or measures are taken by
CONTRACTOR to eliminate such effects. Such
unfavourable construction conditions shall in no way GC23.0 CONTRACTOR’s WORK AREA
relieve CONTRACTOR of its responsibility to complete
the Work on or before the Completion of the Work Date. All CONTRACTOR’s work areas on the Site will be
assigned by SLIT. CONTRACTOR shall confine its
Pursuant to the foregoing, or for reasons attributable to operations to the areas so assigned.
CONTRACTOR’s act, omissions, noncompliance with the
Contract requirements, defaults and neglects, SLIT and GC24.0 TOOLS, TACKLES AND SCAFFOLDING,
CUSTOMER shall not be liable for idle labour charges in LIEN ON EQUIPMENT
the event of any stoppage caused in the Work resulting in
CONTRACTOR’s labour being rendered idle at any time CONTRACTOR shall provide at his own expense,
for any period(s) of time. including but not limited to all the construction equipment,
false work, tools, machine tools, power tools, tackles,
GC21.0 ENVIRONMENTAL CONDITIONS hoists, cranes, derricks, cables, skids, scaffolding, work
welding machines, pre heating and stress relieving
Throughout performance of the Work, CONTRACTOR equipment, x-ray and all associated protective equipment,
shall conduct operations in such a way to minimise appliances, required for unloading, transporting, storing
impact upon the natural environment and comply with all that may be required to accomplish the work under the
laws, regulations and rules applicable to the Site. contract unless otherwise provided for. Adequacy of such
CONTRACTOR shall provide: tools will be subject to final determination of SLIT and/or
CUSTOMER. CONTRACTOR shall submit a list of all
such materials to SLIT . These tools and tackles shall not

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 SLIT
be removed from the site without the written permission of or CUSTOMER and doing work in the vicinity of the Site
SLIT and CUSTOMER. under the Contract. CONTRACTOR shall also arrange to
perform its work as to minimise to the maximum extent
CONTRACTOR shall not dispose off, transport or possible and its workmen.
withdraw any tools, tackles, equipment and material
provided by it for works under the Contract without Any injury or damage that may be sustained by the
obtaining prior written approval from SLIT and employees of the other contractors and the company /
CUSTOMER. SLIT and CUSTOMER at all times shall clients due to the contractor’s work shall be promptly
have the right to refuse permission for disposal, transport made good at Contractor’s own expense.
or withdrawal of tools, opinion, the same will adversely
affect the expeditious completion of works under the CONTRACTOR shall notify SLIT any defect anticipated or
Contract. found in Others work at the Site which may affect its
work. SLIT and/or CUSTOMER shall determine the
CONTRACTOR shall bring to site all equipment, corrective measure, if any, required to rectify this
components, parts, materials, including construction situation after inspection of the works and such decisions
equipment under intimation to the company. All such by SLIT shall be binding on CONTRACTOR. If any part
goods shall from time of their being brought, vest in the of the CONTRACTOR’s work depends upon the work of
company, but may be used for the purpose of works any other contractor, for proper execution
under the Contract only and shall not be on any account CONTRACTOR shall inspect and promptly report in
be removed or taken away by the contractor without the writing to SLIT, and defects in such work of other
written permission of SLIT and CUSTOMER. contractors that render it unsuitable for proper execution
CONTRACTOR shall nevertheless, be solely liable and of the work under this Contract. CONTRACTOR’s failure
responsible for any loss or destruction thereof and to so inspect and report shall constitute an acceptance of
damage thereto. others work as fit and proper for the reception for his
work, except as to defects which may develop in the work
SLIT shall have a lien on CONTRACTOR’s material, tools of others after the proper execution of the work. To
& tackles and equipment brought at the Site for any sum ensure proper execution of its subsequent work,
or sums which may at anytime be due or owning to it by CONTRACTOR shall inspect already executed work by
CONTRACTOR under, in respect of, or by reasons of the others and shall at once report to SLIT any discrepancy
Contract after giving 15 days notice in writing of its between the executed work and the drawings.
intention to do so, SLIT shall be at liberty to sell and
dispose of any goods in such a manner as it shall think fit
including public auction or private treaty and to apply the GC26.0 PROTECTION OF WORK
proceeds in or towards the satisfaction of such sums due
as aforesaid. CONTRACTOR shall have the total responsibility for
protecting the work till it is finally accepted by SLIT and
After completion of works under the Contract, CUSTOMER. No claim will be entertained by SLIT or
CONTRACTOR shall remove from the site under the CUSTOMER for any damage or loss to the works and
direction of SLIT, the materials such as construction / CONTRACTOR shall responsible for complete restoration
fabrication equipment, tools and tackles, scaffolding etc. of the damaged works to its original condition to comply
with the written permission of SLIT and CUSTOMER. If with the specifications and drawings. Should any such
CONTRACTOR fails to remove such materials within 15 damage to CONTRACTOR’s works occur because of
days of issue of a notice by SLIT or CUSTOMER to do other party or parties not under SLIT supervision or
so, then SLIT shall have the liberty to dispose off such control, CONTRACTOR shall make claim directly with
materials and credit the proceeds thereto to the account the party or parties concerned. CONTRACTOR shall not
of CONTRACTOR. cause any delay in the repair of such damaged works
because of any delay in the resolution of any disputes
CONTRACTOR should arrange equipment, tools and hereof. CONTRACTOR shall proceed to repair the work
tackles in adequate quantities in good working condition immediately and no cause thereof will be assigned
for expeditious and smooth work at the Site. In case, it is pending resolution of such disputes.
observed that the work is hampering due to inadequate
quantity and if contractor does not replenish it in goods During the construction of the project the clients will
time, in such an event SLIT reserves the right to arrange continue to operate the existing plant and equipment in
required equipment, Tools & Plants on hire charges or and around the vicinity of the project site. CONTRACTOR
purchase from outside agency, and recover the actual shall protect while performing its work all existing plant,
cost plus overheads towards SLIT handling charges from structures, piping, conduits, equipment and facilities
the contractors running account bills. against damage during its operations.

In case SLIT or CUSTOMER hands over its equipment CONTRACTOR shall perform its work in a manner that in
and/or material and consumable including but not limited no way endanger the operation of the existing stream and
to gases, electrodes, paints to CONTRACTOR for the electric and other plants of CUSTOMER which will have
Site work then CONTRACTOR shall at the time of taking interconnection the new Plant in the construction of which
delivery of the items through dispatch documents be CONTRACTOR is awarded the Contract. In all cases
required to execute an indemnity bond in favour of SLIT where connections to existing plant and equipment occur,
in the form acceptable to SLIT for keeping the equipment such connections will be made only with specific and
and/or material in safe custody and to utilise the same advance instructions and authorisation from and issued
exclusively or the purpose of this Contract. by SLIT and CUSTOMER

CONTRACTOR shall provide the necessary temporary

GC25.0 CO-OPERATION WITH OTHERS roadways, footways, guards as may be rendered
necessary for reason of its work, within the area of its
CONTRACTOR shall co-operate with all other work for the protection and accommodation of foot
contractors or tradesman of the SLIT and CUSTOMER, passengers or other traffic of CUSTOMER or occupier of
who may be performing other works on behalf of the SLIT adjacent properly and of public. CONTRACTOR shall at

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 SLIT
all times provide sufficient temporary barriers, fencing Right to order Modifications of methods and equipment: If
notice boards and lights to protect and warn the public at any time CONTRACTOR’s methods, materials or
and post necessary watchmen to guard the Site and equipment appear to the company / clients to be unsafe,
equipment. CONTRACTOR shall take all precautions inefficient or inadequate, for securing the safety of the
necessary and shall be responsible for the safety of the workmen or the public, or the quality of the work or the
work to be performed by it. The contractor shall also rate of progress required, SLIT may order
observe and display ‘Safety First’ signs and shall have CONTRACTOR to ensure adequacy and CONTRACTOR
proper safety and fire protection equipment. shall promptly comply with such orders.

CONTRACTOR shall adequately lighted it’s work area at If at any time, CONTRACTOR’s working force and
night time also. CONTRACTOR shall NOT USE naked equipment are in the opinion of SLIT and CUSTOMER
lights on the Site or otherwise in the open air without inadequate for securing the necessary progress as herein
specific permission in writing from SLIT. CONTRACTOR stipulated, CONTRACTOR shall, if so directed, increase
shall engage adequate qualified electricians and the working force and equipment to such an extent as to
wiremen, helpers etc. to carry out and maintain these give reasonable assurance of compliance with the
lighting facilities. If CONTRACTOR fails to provide all the schedule of completion. The absence of such demands
above listed facilities, SLIT or CUSTOMER may provide from SLIT or CUSTOMER shall not relieve
such facilities as it may deem necessary and charge the CONTRACTOR of his work and the rate of progress
cost thereof to CONTRACTOR. In any case required by the contract, and CONTRACTOR alone shall
CONTRACTOR shall liable for all damages and be and remain liable and responsible for the safety,
consequences arising out of its neglect in this regard. working force and equipment, irrespective of whether or
not he makes any change as a result of any order or
GC27.0 ENGINEER’s INSTRUCTIONS orders received from SLIT or CUSTOMER.

SLIT may, in its absolute discretion from time to time,

issue further drawings and / or written instructions, GC28.0 PROGRESS
details, directions and explanations which are collectively
referred to as ‘Engineer’s Instructions’ in regards to : CONTRACTOR shall jointly prepare Detailed Work
Schedule with SLIT immediately after award of the
a) Any additional drawings and explanations to exhibit Contract. CONTRACTOR shall give SLIT full information
or illustrate details. in advance as to its plans for performing each part of the
b) The variation or modification of the design, quality or Work. If at any time, CONTRACTOR’s actual progress is
quantity of work or the additions or omissions or inadequate to meet the requirements of this Contract,
substitution of any work. SLIT may notify CONTRACTOR who shall thereupon
c) Any discrepancy in the drawings or between the take such steps as may be necessary to improve its
schedule of quantities and / or specification. progress. If within five (5) days as determined by SLIT,
d) The removal from the site of any materials brought CONTRACTOR does not improve performance to meet
thereon by the contractor and the substitution of any the currently approved Detailed Work Schedule, SLIT
other materials thereof. may require an increase in CONTRACTOR’s labour
e) The removal / or re-execution of any work executed force, the number of shifts, overtime operations,
by the contractor. additional days of work per week and an increase in the
f) The dismissal from the work of any persons amount of construction plant, all without additional cost to
employed there upon. SLIT. Neither such notice nor SLIT’s failure to issue such
g) The opening up for inspection of any work covered notice shall relieve CONTRACTOR of its obligation to
up. achieve the quality of work and rate of progress required
h) The amending and making good of any work by this Contract.
covered up.
Failure of CONTRACTOR to comply with SLIT’s
CONTRACTOR shall comply with the Engineers instructions may be grounds for determination by SLIT
Instructions and shall duly execute any work covered in that CONTRACTOR is not prosecuting the Work with
such Engineer’s instructions provided always that verbal such diligence as will assure completion within the times
instructions, directions and explanations given to the specified. Upon such determination, SLIT may terminate
contractor or his foreman upon the work by SLIT or the Contract for default.
CUSTOMER shall, if involving a variation, be confirmed
in writing by within seven (7) days.
GC29.0 PAYMENTS
If compliance with the Engineer’s Instructions as
aforesaid involves work and scope beyond the Contract, SLIT may withhold part or whole of any payment for the
SLIT will pay to the contractor the price of the said work executed work claimed by CONTRACTOR which in the
as an extra work. In all cases involving financial opinion of SLIT is necessary to protect itself from loss on
commitments, the written approval of SLIT shall be account of :
obtained before taking up the work.
a) Defective work not remedied or guarantees not met.
If CONTRACTOR after receipt of written notice from
SLIT requiring compliance, with such further drawings b) Claim filed against CONTRACTOR.
and / or Engineer’s Instructions fail to comply, SLIT may
deploy and pay other agencies to execute any such work c) Failure by CONTRACTOR to make due payment for
whatsoever, as may be necessary to give effect thereto; material supplied or
and all costs incurred in connections therewith shall be
recovered from CONTRACTOR by SLIT or any be d) labour employed by it.
deducted by SLIT from any money that may become due
to CONTRACTOR. e) Damage to other’s property.

f) Failure to meet the mutually agreed schedules.

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 SLIT
When the grounds for withholding payments are
removed, payments of the amount due to GC31.0 BACKCHARGES
CONTRACTOR shall be made by SLIT.
If, under the provisions of this Contract, CONTRACTOR
CONTRACTOR shall not demand nor be entitled to is notified by SLIT or CUSTOMER to correct defective or
receive payment for the work or portion thereof, except in nonconforming work, and CONTRACTOR states or by its
the manner set forth in this Contract and only after SLIT actions indicates that it is unable or unwilling to proceed
shall have given a certificate for such payment. with corrective action, SLIT or CUSTOMER may, without
waiting, proceed to accomplish the redesign, repair,
GC30.0 RECTIFICATION / MODIFICATION / CHANGE rework or replacement of nonconforming work by most
ORDER expeditious means available and backcharge
CONTRACTOR for the costs incurred. Furthermore, if
If extra work for modification, rectification, rework, SLIT agrees to or is required to perform work for
revamping, in brief, any work done to change the stage CONTRACTOR, such as cleanup, off-loading or
existing to a stage desired and also execution, all or any, completion of incomplete work, SLIT may, upon written
are needed due to any change in or deviation, from the notice to CONTRACTOR, perform such work by the most
drawings and design mismatching, transit damages and expeditious means available and backcharge
other allied works which are not very specifically indicated CONTRACTOR for the costs incurred.
in the drawings, but are found essential for satisfactory
completion of the work are done, no extra charges will be The above shall also apply in the event of a non-
paid. commencement of the Work and each stage of the Work
to be performed by CONTRACTOR, abandonment in part
It may also be noted that if any such said extra works or in full, incompletion, going slow, or failure to follow
arise on account of the CONTRACTOR’s fault, it will SLIT’s instructions, follow sequence of Work, or otherwise
have to be carried out by CONTRACTOR free of cost. any action or omission which in the opinion of SLIT may
Under such circumstances, any material and adversely affect the speedy and efficient completion of
consumable required for this purpose, will also have to the Work.
be arranged by CONTRACTOR at its cost.
The cost of backcharge work shall include:
However, SLIT may consider for payment as extra, for
such of those works detailed as above which require a) Incurred direct and indirect labour costs including all
more than 20 Man-hours for individual activity and such payroll costs, taxes and expenses,
payment will be regulated by the terms, conditions and b) Incurred net delivered material costs,
stipulations contained in the clauses. It may be c) Incurred Subcontractor costs related to performing
specifically noted that the decision of SLIT as to whether the corrective action,
such payment is due shall be final and binding on d) Equipment and tool rentals at agreed rates, and
CONTRACTOR. e) A factor of one-hundred percent (100%) applied to
the total of items (a) through (d) for SLIT’s and
SLIT may, at their absolute discretion, consider for CUSTOMER’s overhead, supervision and
payment as extra on Man-hours basis as found by it as administrative costs.
justifiable, for such of those works as specified above
which require major modification etc. It may also be SLIT shall separately invoice or deduct from payments
noted that only those works which are identified as major otherwise due to CONTRACTOR the costs as provided
and warrant extra payment and certified SLIT’s herein. SLIT’s right to backcharge is in addition to any
representative at the Site and accepted by the competent and all other rights and remedies provided in this Contract
authority of SLIT at head office, Bangalore will be or by law. The performance of backcharge work by SLIT
considered for Extra Payment. or CUSTOMER shall not relieve CONTRACTOR of any of
its responsibilities under this Contract including but not
CONTRACTOR shall engage separate gang to carry out limited to express or implied warranties, specified
Extra Work which is necessary to identify consumed Man- standards for quality, contractual liabilities and
hours. indemnifications, and the Contract Schedule.

CONTRACTOR shall not divert its regular gang for such

Extra Work and ensure that regular work shall continue at GC32.0 INDEMNITY
the same time Hence the question of granting extension
of time for this reason should not rise. CONTRACTOR hereby releases and shall indemnify,
defend and hold harmless SLIT, CUSTOMER and their
Daily log sheets in the Proforma prescribed by SLIT subsidiaries and affiliates and the officers, agents,
should be maintained and shall be signed by employees, successors and assigns and authorised
CONTRACTOR and SLIT. No claim for Extra Work will be representatives of all the foregoing from and against any
considered or entertained into the absence of supporting and all suits, actions, legal or administrative proceedings,
documents such as Daily Log Sheets. claims, demands, damages, liabilities, interest, attorney’s
fees, costs and expenses of whatsoever kind or nature,
Signing of log sheets by SLIT or CUSTOMER does not including those arising out of damage to property
mean the acceptance of such Works as Extra Works (including but not limited to property of third parties,SLIT
eligible for payment or the acceptance of number of or CUSTOMER) and injury to or death of persons
man-hours deployed for the Work. CONTRACTOR shall (including but not limited to CONTRACTOR’s employees
submit the same within Seven (7) days after completion and third parties), whether arising before or after
of Extra Work. completion of the Work hereunder and in any manner
directly or indirectly caused, occasioned, or contributed to
SLIT retains the right to award or not to award any of the in whole or in part, or claimed to be caused, occasioned
major repair / major modification /major rectification / or contributed to in whole or in part, by reason of any act,
major erection work at its discretion without assigning any omission, fault or negligence whether active or passive of
reason for the same. its Subcontractors or of anyone acting under its direction

SLIT / GCC Page 11 of 15

 SLIT
or control or on its behalf in connection with or incidental suspension to the extent that performance would have
to the performance of this Contract. CONTRACTOR’s been suspended, delayed, or interrupted by any
aforesaid release, indemnity and hold harmless CONTRACTOR non-compliance with the requirements of
obligations, or portions or applications thereof, shall this Contract.
apply even in the event of the fault or negligence, whether
active or passive, or strict liability of the parties released, GC34.0 POSSESSION PRIOR TO COMPLETION
indemnified or held harmless to the fullest extent
permitted by law, but in no event shall they apply to SLIT shall have the right to take possession of or use any
liability caused by the willful misconduct or sole completed or partially completed work or part of the Work.
negligence of the party released, indemnified or held Such possession or use shall not be deemed to be an
harmless. acceptance of any work completed in accordance with the
Contract Agreement.
CONTRACTOR shall pay and meet all expenses
including legal costs incurred by SLIT or CUSTOMER in GC35.0 TERMINATION FOR DEFAULT
responding to and defending all such claims and
CONTRACTOR shall meet and pay all damages awarded Notwithstanding any other provisions of this Contract,
against SLIT and/or CUSTOMER and keep them CONTRACTOR shall be considered in default of its
harmless and indemnified to the fullest extent. contractual obligations under this Contract if it:

GC33.0 SUSPENSION a) Performs work which fails to conform to the

requirements of this Contract;
SLIT may by written notice to CONTRACTOR, suspend
at any time the performance of all or any portion of the b) Fails to meet the Contract Schedule or fails to make
Work to be performed under the Contract. Upon receipt progress so as to endanger performance of this
of such notice, CONTRACTOR shall, unless the notice Contract;
requires otherwise :
c) Abandons or refuses to proceed with any of the
a) Immediately discontinue work on the date and to the Work, including modifications directed pursuant to
extent specified in the notice. the General Condition titled “CHANGES”;

b) Place no further orders or subcontracts for material, d) Fails to fulfil any of the terms of this Contract; or
services, or facilities with respect to suspended work
other than to the extent required in the notice. e) Fails to provide adequate assurance of
CONTRACTOR’s future performance in accordance
c) Promptly make every reasonable effort to obtain with the terms and conditions of this Contract, within
suspension upon terms satisfactory to SLIT of all the time specified in the following paragraph, in
orders, subcontracts and rental agreements to the response to demand by SLIT in the event that an
extent they relate to performance of suspended order for relief in bankruptcy is entered with respect
work; to CONTRACTOR or CONTRACTOR becomes
insolvent or makes a general assignment for the
d) Continue to protect and maintain the Work including benefit of creditors. SLIT shall be the sole judge of
those portions on which work has been suspended; the adequacy of said assurance.
and
Upon the occurrence of any of the foregoing, SLIT shall
e) Take any other reasonable steps to minimise costs notify CONTRACTOR in writing of the nature of the failure
associated with such suspension. and of SLIT’s intention to terminate the Contract for
default. If CONTRACTOR does not cure such failure
As full compensation for such suspension, within Three (3) calendar days from receipt of notification,
CONTRACTOR will be reimbursed for the following costs, or sooner if safety to persons is involved, or if
reasonably incurred, without duplication of any item, to CONTRACTOR fails to provide satisfactory evidence that
the extent that such costs directly result from such work such default will be corrected, SLIT may, by written notice
suspension ; to CONTRACTOR and notice to CONTRACTOR’s
sureties, if any, terminate in whole or in part
A standby charge to be paid on CONTRACTOR during CONTRACTOR’s right to proceed with the Work and
the period of work suspension, which standby charge SLIT may prosecute the Work to completion by contract
shall be CONTRACTOR’s actual and necessary costs for or by other method deemed expedient. SLIT may take
keeping, to the extent required the suspension notice, its possession of and utilise any materials, plant, tools,
organisation and equipment committed to the Work on a equipment, and property of any kind furnished by
standby basis; and CONTRACTOR and necessary to complete the Work.
Necessary costs associated with mobilisation and
demobilisation of CONTRACTOR’s Equipment and CONTRACTOR shall be liable for all costs in excess of
forces. the Contract Price for such terminated work, reasonably
and necessarily incurred in the completion of the Work as
Upon receipt of notice to resume suspended work, scheduled, including cost of administration of any
CONTRACTOR shall immediately resume performance subcontract awarded to others for completion.
under this Contract to the extent required in the notice.
Upon termination for default, CONTRACTOR shall:
If CONTRACTOR intends to assert a claim for equitable
adjustment under this clause, it must, within ten (10) a) Immediately discontinue work on the date and to the
calendar days after receipt of notice to resume work, extent specified in the notice and place no further
submit to SLIT a written statement setting forth the purchase order or subcontracts to the extent that
schedule impact and monetary extent of such claim in they relate to the performance of the terminated
sufficient detail to permit thorough analysis and work;
negotiation. No adjustment shall be made for any

SLIT / GCC Page 12 of 15

 SLIT
b) Inventory, maintain and turnover to SLIT all requirements, SLIT shall notify CONTRACTOR of such
materials, plant, tools, equipment, and property nonconformance and CONTRACTOR shall take
furnished by CONTRACTOR or provided by SLIT or corrective action and have the nonconforming part of the
CUSTOMER for performance of the terminated Work reinspected until accepted.
contract;
SLIT’s written acceptance of the Work (“Final
c) Promptly obtain cancellation upon terms Acceptance”) shall be final and conclusive except with
satisfactorily to SLIT of all purchase orders, regard to latent defects, fraud or such gross mistakes as
Subcontractors, rentals, or any other agreements amount to fraud, or with regard to SLIT’s right under the
existing for performance of the terminated work or General Condition article entitled “WARRANTY” or other
assign those agreements as directed by SLIT; obligations of CONTRACTOR which are of continuing
nature.
d) Co-operate with SLIT and CUSTOMER in the
transfer of information and deposition of work in
progress so as to mitigate damages; GC38.0 EXAMINATION OF CONTRACTOR’s
RECORD AND ACCOUNTS
e) Comply with other reasonable requests from SLIT
and CUSTOMER regarding the terminated work; CONTRACTOR shall maintain records and accounts in
and connection with the performance of this Contract, which
will accurately document incurred costs, both direct and
f) Continue to perform in accordance with all the terms indirect, of whatever nature.
and conditions of this Contract such portion of the
Work that is not terminated. SLIT shall have the right to examine at all times, with
advance notification, such records and accounts for the
GC36.0 INSPECTION OF WORKS limited purpose of verifying requests for payment when
costs are the basis of such payment and for evaluating
The SLIT shall have full power and authority to inspect the reasonableness of proposed Contract price
the Work at any time wherever in progress either on the adjustments and claims.
Site or at the CONTRACTOR’s premises/workshops
wherever situated, premises/workshops of any person,
firm or corporation where work under this Contract may GC39.0 WARRANTY
be in hand or where materials are being or to be supplied,
and CONTRACTOR shall afford or procure for SLIT every CONTRACTOR warrants that the work executed under
facility and assistance to carry out such inspection. this Contract shall be of first class quality workmanship
CONTRACTOR shall, at all time during the usual working and any part found defective shall rectify and and/or
hours and at all other time at which reasonable notice of replace satisfactorily free of cost to SLIT and
the intention of SLIT to visit the Work shall have been CUSTOMER immediately on notified by SLIT or
given to CONTRACTOR, CONTRACTOR shall CUSTOMER. In case CONTRACTOR fails to remedy the
accompany SLIT’s representative to receive orders or defects or replace within the specified time, the whole
instructions. The CONTRACTOR shall give not less than work shall stand rejected at the risk and cost to
Seven (7) days notice in writing to SLIT before covering CONTRACTOR. SLIT or CUSTOMER shall be free to
up or otherwise placing beyond reach of inspection and get the work rectified or replaced from alternate sources
measurement of any work in order that the same may be at the cost and consequence to CONTRACTOR. This
inspected and measured. In the event of breach of above warranty guarantee shall remain valid for agreed period
the same shall be uncovered at CONTRACTOR’s the date of Final Acceptance of the Work by SLIT and
expenses for carrying out such measurement or CUSTOMER.
inspection.

No material shall be dispatched from CONTRACTOR’s GC40.0 FORCE MAJEURE

stores before obtaining the approval in writing of SLIT.
Force Majeure means any of the following events or
CONTRACTOR shall provide at all time during the circumstances, or any combination of such events or
progress of the Work and the maintenance period, proper circumstances, which are beyond the reasonable control
means of access with ladders, gangways etc. and the of the affected party, which could not have been
necessary attendance to move and adopt as directed for prevented by Good Industry Practice or by exercise of
inspections of measurements of the Work by SLIT. reasonable skill & care, and which, or any consequences
of which, have a material and adverse effect upon the
CONTRACTOR shall make available to SLIT free of cost performance by the affected party of its obligations under
all necessary instruments and assistance in checking and the contract:
setting out of Works and in the checking of any Works
made by CONTRACTOR for the purpose of setting out War (whether declared or not), hostilities, epidemics,
and taking measurement of Work. riots, strike of a whole national category of workers ,
lockouts, earthquake, typhoon, cyclone, flood, landslide,
fire, explosion or Acts of God.
GC37.0 FINAL INSPECTION AND ACCEPTANCE
If CONTRACTOR is prevented or delayed from or in
When CONTRACTOR CONSIDERS THE Work under performing any of its obligations under the Contract by
this Contract to be entirely complete and ready for Final Force Majeure, then it shall notify SLIT within 24 hours of
Acceptance, CONTRACTOR shall notify SLIT in writing. commencement of the circumstances constituting the
SLIT with CONTRACTOR’s co-operation, will conduct Force Majeure and of the obligations performance of
such reviews, inspections and tests as may be which is thereby delayed or prevented, and
reasonably required to satisfy SLIT and CUSTOMER that CONTRACTOR shall thereupon be excused the
the Work conforms to all requirements of the Contract. If performance, of such obligations for so long as the
all or any part of the Work does not conforms to Contract circumstances of prevention or delay may continue.

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 SLIT
The Competent Courts at Bangalore shall have exclusive
If the Force Majeure event continues for a period of Sixty jurisdiction in relation to any matter arising out of this
(60) days, SLIT may terminate this Contract in Contract including the arbitration.
accordance with the provisions herein contained.

Upon the occurrence of any circumstances of Force

Majeure the CONTRACTOR shall use all reasonable
efforts to continue to perform its obligations under the
Contract and to minimise the adverse effects of such
circumstances. SLIT shall not be liable for any costs,
loss or damage (including indirect or consequential
damages) caused by a Force Majeure event.

GC41.0 EXCLUSIVE WORKING

During the contract period, the CONTRACTOR shall work

exclusively for SLIT and shall not undertake any work at
site either from CUSTOMER or from any other contractor
without specific permission from SLIT. Further, the
CONTRACTOR should not draw any consumables or
material from the CUSTOMER.

GC42.0 NON-WAIVER

Failure by SLIT or CUSTOMER to insist upon strict

performance any terms or conditions of this Contract, or
failure or delay to exercise any rights or remedies
provided herein or by law, or failure to properly notify
CONTRACTOR in the event of breach, or the acceptance
of or payment for goods or services hereunder, or the
review or failure to review designs shall not release
CONTRACTOR from the any of the warranties or
obligations of this Contract and shall not be deemed
waiver of any right of SLIT to insist upon strict
performance hereof or any of its rights or remedies as to
any prior or subsequent default hereunder nor shall
termination of work under this Contract by SLIT operate
as a waiver of any of the terms hereof.

GC43.0 SURVIVAL

The rights and obligations of the parties which by their

nature survive termination or completion of this Contract,
including but not limited to those setforth in the General
Conditions titled “WORKMANSHIP WARRANTY” and
“INDEMNITY”, shall remain in full force and effect.

GC44.0 LANGUAGE AND MEASURE

All documents pertaining to the Contract including

notices, correspondence, operating and maintenance
manuals/instructions, schedules, reports, instructions and
other submittals by either party to the other shall be in
English language.

The Metric System of Measurement shall be used in the

Contract unless otherwise specified.

GC45.0 ARBITRATION

Any dispute, claim, difference of opinion arising out of or

in relation to this Contract shall be settled by arbitration in
accordance with the provisions of the Arbitration Act
1996. The venue for the arbitration shall be at Bangalore.

GC46.0 JURISDICTION

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 SLIT
ADDENDUM NO. 1 TO GENERAL contractor should remove the extra
CONDITIONS OF CONTRACT lengths / add extra lengths to suit the final
layout after preparing edges afresh and
adopting specified heat treatment
Following clauses shall also form part of our
procedures at no extra cost, wherever
General Conditions of Contract :
indicated Such adjustments in length for
pipes of thickness more than 16 mm will
1. All the works such as cleaning, checking, be paid as per man day rates.
levelling, blue matching, aligning,
assembling temporary erection for
5. Additional platforms for approaching
alignment, opening, dismantling of certain
different equipments as per the site
equipment for checking and cleaning
requirement, which may not be indicated
surface preparation, edge preparation,
in drawings, shall be assembled and
fabrication of tubes and pipes as per
erected by contractor. However, the
general engineering practices at site,
contractor shall be paid for this work on
cutting, grinding, straightening,
accepted tonnage rate for erection within
chamfering, filling, chipping, drilling,
overall tonnage contracted. The steel
reaming, scrapping, shaping, fitting up
materials required for these works shall
bolting, welding etc as may be applicable
be supplied by SLIT free of cost and the
in such operation and are necessary to
contractor will have to install them to suit
complete the work satisrfactorily are to be
the requirement. Works of major nature,
treated as incidental and the same shall
not covered under this clause.
be carried by the contractor as part of the
work.
6. Works such as minor rectification of
foundation bolts, reaming of holes, drilling
2. Normally the high pressure valves will
of dowels, matching of bolts and nuts,
have prepared edges for welding. But, if
making new dowel pin etc are covered in
it becomes necessary, the contractor shall
the scope of work.
prepare new edges or recondition the
edges by grinding or chamfering to match
the corresponding tubes and pipes. All 7. Certain extra lengths of various
fittings like “T” pieces, weldneck flanges, tubes/pipes and fabricated ducts are
reducers etc shall be suitably matched provided as erection allowance and the
with pipes for welding. The valves will same have to be cut/adjusted to suit the
have to be checked, cleaned or site conditions and layouts or certain
overhauled in full or in part before small lengths may have to be added for
erection, after chemical cleaning and adjustments to suit the site conditions.
during commissioning. Edge preparation For any mismatch while matching the
becomes the part of erection work. joints in tubes, the cutting adjusting
However, payment for new edge rewelding, addition of spool pieces should
preparation reconditioning beyond be done by the contractor to match site
reasonable limits will be considered as conditions without any extra payment.
per man day rates.

3. Adjustments like removal of ovalities in

pipes and opening or closing the
fabricated bends of high pressure piping
to suit the layout shall be considered part
of work and the contractor is required to
carryout such work free of cost, as per
instructions of SLIT, which shall include
specific heat treatment procedures etc.
Quality correction beyond reasonable
limits will be paid as per man day rates.

4. Certain adjustments in length of steel

members may be necessary while
erecting high pressure pipelines of boiler
and piping (pre fabricated lines) and the

SLIT / GCC Page 15 of 15