PART

PART - III

CONDITIONS OF CONTRACT

DEFINITIONS

1. The ‘Contract’ means the documents forming the tender and acceptance thereof and the formal agreement, if any, executed between the Cochin Shipyard Limited and the contractor, together with the documents referred to therein including these conditions, any special conditions, the specifications, designs, drawings and instructions, issued from time to time by the Engineer in charge and all these documents taken together, shall be deemed to form one contract and shall be complementary to one another.

2. In the contractor the following expressions shall, unless the context otherwise requires, the meanings, hereby respectively assigned to them

a) The expression ‘works’ or ‘work’ shall, unless there be something either in the subject or context repugnant to such construction, be construed and taken to mean the work by or virtue of the contract, contracted to be executed whether temporary or permanent and whether original, altered, substituted or additional.

b) The ‘site’ shall mean the lands / sea and / or other places on, under in or through which work is to be executed under the contract or any adjacent land path or street through which work is to be executed under the contract or any adjacent land, path or street which may be allotted or used for the purpose of carrying out the contract.

c) The ‘contractor’ shall mean the individual or firm or Company, whether incorporated or not, undertaking the works and shall include the legal personal representative of such individual or the person composing such firm or company or the successors of such firm or company and the permitted assignee of such individual firms or company.

d)‘Government’ or ‘Government Of India’ shall mean the President of India.

e) The ‘Engineer in Charge’ or ‘Engineer’ means the Dy. General Manager (Civil Engineering) Cochin Shipyard Limited or any Officer appointed by him in writing who shall supervise and be in charge of work.

f) Company of purchase of department of Employer shall mean the Cochin Shipyard Limited.

When the contract so requires words importing the singular number includes the plural number and vice versa.

Headings and marginal Notes of these conditions shall not be deemed to form part there for be taken into consideration in the interpretation or construction thereof or of the contract.

g) ‘Urgent works’ shall mean any urgent measures which, in the opinion of the Engineer-in-Charge, becomes necessary during the progress of the works to obviate any risk of accident or failure or which become necessary for security.

CLAUSE 1: The contractor shall, unless he is / they are exempted from payment of security deposit in individual cases or has / have deposited the amount of security in cash or in the form of acceptable Government Security of fixed Deposit Receipts or Guarantee Bonds of any Scheduled Bank or State Bank Of India, permit Cochin Shipyard Limited at the time of making of any payment to him / them for work done under the contract to deduct 10% from the amount of each bill till the amount so deducted along with the sum already deposited as earnest money will amount to 10% of the total bill amount in case of a Fixed Deposit. Receipt of any Bank if furnished by the contractor to the Cochin Shipyard Limited as part of the security deposit and the bank goes into liquidation or for any reason is unable to make payment against the said fixed deposit receipt, the loss caused thereby shall fall on the contractor and the contractor shall for with on demand furnish additional security to the Cochin Shipyard Limited to make good the deficit.

Such deductions from Bills are to be held by Cochin Shipyard Limited by way of security deposit. All compensations or other sums money payable by the contractor under the terms of this contract or any other contract or any other Account whatsoever may be deducted from, or paid by the sale of a sufficient part of his security deposit, or from the interest arising there from or from any sums which may be due to or may become due to the contractor by Cochin Shipyard Limited or any such deduction of sale as aforesaid, the contractor shall within 10 days make good the deficit in cash or guarantee Bonds (approved).

Government papers tendered as security will be taken at 5 % (five percent) below its market price or at its face value whichever is less. The market price of government papers would be ascertained at the time of collection of interest and the amount of interest of the extent of deficiency in value of the Government paper will be withheld if necessary.

CLAUSE 1 A. The work to be carried out under the Contract shall except as otherwise provided in these conditions, include all labour, materials, tools plant, equipment and transport which may be required in preparation of and for and in the full and entire execution and completion of the works. The description given in the Schedule of Works/ items, Quantities and the Bills of Quantities, shall unless otherwise stated, be held to include waste on materials, carriage and cartage in return of empties hoisting, setting, fitting and fixing in position and all other labour necessary in and for the full and entire execution and completion as aforesaid in accordance with good practice and recognized principles.

CLAUSE 2. The time allowed for carrying out the work as entered in the tender shall be strictly observed by the contractor and shall be deemed of the essence of the contract on the part of the contractor and shall be reckoned from the fifteenth day after the date on which the order to commence the work is issued to the contractor or from the date of handing over the site whichever is later.

As soon as possible after the Contract is concluded, the Engineer-in-charge and the contractor shall agree upon a Time and Progress Chart. The Chart shall be prepared in relation to the time stated in the contract documents for completion of the items or groups of items of work and / or the contract as a whole. It shall indicate the forecast of the dates of commencement and completion of various traders or sections of the work and may be amended as necessary by agreement between the Engineer-in-charge and the contractor within the limitation of time imposed in the contract documents.

The work shall throughout the stipulated period of the contract be proceeded with all due diligence. If the contractor fails to complete the works and clear the site on or before the contract on extended date (s) / period (s) completion, he shall, without prejudice to any other right or remedy of Cochin Shipyard Limited on account of such breach pay as agreed compensation, amount calculated as stipulated below (or such smaller amount as may be fixed by the Engineer-in-charge) on the contract value of the whole work or on the contract value of the item or group of items of work for which a separate period of completion is given in the contract and of which completion is delayed, for every week that the whole of the work on the item or group of items of work concerned remains uncompleted, even though the Contract as a whole be completed by the contract or extended date of completion. For this purpose the term Contract value shall be the value at Contract rates of the work as ordered including the estimated value of all deviations ordered.

Completion period (as originally stipulated or as extended)

@ 1 percent per week not exceeding 6 months.

Completion period (as originally stipulated or as extended)

@ ½ percent per week exceeding 6 months and not exceeding 2 years.

Completion period (as originally stipulated or as extended)

@ ¼ percent per week exceeding 2 years.

When the delay is not a full week or in multiples of a week by involves a fraction of week, the compensation payable for that fraction shall be proportional to the number of days involved.

Provided always that the total amount of compensation for delay to be paid under this Condition shall not exceed the under noted percentage of the contract value or of the contract value of the item or group of items of work for which separate period of completion is given:

Completion period (as originally stipulated or as extended) not exceeding 6 months.

10 percent

Completion period (as originally stipulated or as extended exceeding 6 months and not exceeding 2 years)

7½ percent

Completion period (as originally stipulated or as extended) exceeding 2 years

5 percent

The amount of compensation may be adjusted or set off against any sum payable to the contractor under this or any other contract with Cochin Shipyard Limited.

2a. (i) From the commencement to the completion of the works, the contractor shall take full responsibility for the care thereof and all temporary works and in case any damage, loss or injury shall happen to the works or to any part thereof or to temporary works from any cause whatsoever (save and except the expected risks as defined in sub clause (ii) of this clause) shall at his own cost, repair and make good the same so that at completion the works shall be in good order and condition and in conformity in every respect with the requirements of the contract and the instruction of the Engineer-in-charge. In the event of any such damage loss or injury happening from any of the excepted risks, the contractor shall if and to the extent required by the Engineer-in-charge repair and make good the same as aforesaid at the cost of the Cochin Shipyard Limited. The contractor shall also be liable for any damage to the works occasioned by him in the course of any operations carried out by him for the purpose of complying with his obligation under Clause 22 and 25.

(ii) “Excepted risks” are war hostilities (whether war be declared or not) invasions, act of foreign enemies, rebellion, revolution, insurrection or military, usurped civil war or otherwise then among the contractor’s own employees), riot commotion or disorders.

2b. Without limiting his obligations and responsibilities under Clause 2 (a) (i) above, the contractor shall insure in the joint names of the Cochin Shipyard Limited and the contractor against any loss or damage from whatever cause arising (other than the excepted risks) for which he is responsible under the terms of the contract and in such manner that the employer and the contractor are covered during the period of construction of the works and for any loss or damage occasioned by the contractor in the course of any operations carried out by him for the purpose of complying with his obligations under Clause 22 and 25, (a) the works and temporary works to the full value of such works executed from time to time (b) materials, construction plant and other things brought on to constructional plants and things.

The contractor shall indemnify and keep indemnified Cochin Shipyard Limited against all losses and claims for injuries or damage to any person or any property whatsoever which may arise out of or in consequence of the construction and maintenance of the works and against all claims, demands, proceedings, damages, costs, charges and expenses whatsoever in respect of or in relation thereto. Provided always that nothing herein contained shall be deemed to render the contractor liable for or in respect of or to indemnify Cochin Shipyard Limited against any compensation or damage caused by the excepted risks.

Before commencing execution of the work the contractor shall, without in any way limiting his obligations and responsibilities under this condition insure against any damage, loss or injury which may occur to any property (excluding that of Cochin Shipyard Ltd., but including the Cochin Shipyard Limited building rented by the Contractor wholly or in part and any part of which is used by him for storing combustible materials), or to any person (including any employee of Cochin Shipyard Limited) by or arising out of carrying out of the contract.

The contractor shall at all times indemnify Cochin Shipyard Limited against all claims, damage of compensation under the provision of payment of wages ACT 1936, minimum Wages Act 1943, Employer’s Liability Act 1988, the Workmen’s Compensation Act 1923; Industrial Disputes Act 1947, and Maternity Benefit Act 1961, or any modification thereof or any other law relating thereto and rules made there under from time to time or as consequence of any accident or injury to any workman or other person in or about the works, whether in the employment of the Contractor or not, save and except where, such as accident or injury has result from any act of Cochin Shipyard Limited, their agents or servants, and also against all costs, charges and expenses of any suit, action or proceeding, arising out such accident or injury and against all sum or sums which may with the consent of the contractor be paid to compromise or compounds any such claims without limiting his obligations and liabilities as above provided, the contractor shall insure against all claims, damages of compensation payable under the Workmen’s Compensation Act, 1923 or any modification thereof or any other law relating thereto.

The aforesaid insurance policy/ policies shall provide that they shall not be cancelled till the Engineer-in-charge has a greed to their cancellation.

The contractor shall prove to the Engineer-in-charge from time to time that he has taken out all the insurance policies referred to above and has paid the necessary premia for keeping the policies alive till expiry of the Defects Liability Period specified in Clause 25.

The contractor shall ensure that similar insurance policies are taken out by his subcontractor (if any) and shall be responsible any claims or losses Cochin Shipyard Limited, resulting from their failure to obtain adequate insurance protection thereof. The contractor shall produce or cause to be produced by his sub-contractor (if any) as the case may be the relevant policy or policies and premium receipt and when required by the Engineer-in-charge.

If the Contractor and/ or his sub-contractor (if any) shall fail to effect and keep in force the insurance referred to above or any other insurance which he/ they may be required to effect under the terms of Contract and in any such case Cochin Shipyard Limited may, without being bound to, effect and keep in force any such insurance and pay such premia as may be necessary for that purpose and from time to time deduct the amount so paid by Cochin Shipyard Limited from any moneys due or which may become due to the Contractor or recover the same as a debt due from the contractor.

All insurances to be effected by the contractor and / or his sub-contractor (if any) shall be taken out only with the insurance company or companies approved by Cochin Shipyard Limited and this approval to any particular insurance company shall not be unreasonably with held.

2c. If the contractor shall fail to effect and keep in force the insurance referred to above or any other insurance which he may be required to effect under the terms of contract, than and in any such case the Engineer-in-charge may effect and keep in force, any such insurance and pay such premia as may be necessary for that purpose and from time to time deduct the amount so paid by the Engineer-in-charge as aforesaid from any money due or which may become due to the contractor or recover the same as a debt due to the contractor.

CLAUSE 3: The Engineer-in-charge may without prejudice to his right against the contractor in respect of any delay or inferior workmanship or otherwise or any claims for damage in respect of any breaches of the contract and without prejudice to any right or remedies under any of the provisions of this contract or otherwise and whether the date for completion has or has not elapsed by notice in writing absolutely determine the contract in any of the following cases.

i. If the contractor having been given by the Engineer-in-charge a notice in writing to rectify, reconstruct or replace any defective work or that the work is being performed in any inefficient or otherwise improper or unworkman like manner shall omit to comply with the requirements of such notice for a period of seven days thereafter or if the contractor shall delay or suspend the execution of the work so that either in the judgement of the Engineer-in-charge (which shall be final and binding) he will be unable to secure completion of the work by the date for completion or he has already failed to complete to the work by that date.

ii. If the contractor being a company shall pass a resolution or the court shall make an order that the company shall be wound up or if a receiver or a manager on behalf of a creditor shall be appointed or if circumstances shall arise which entitle the court of creditor to appoint a receiver or a manager or which entitle the court to make a winding up order.

iii. If the contractor commits breach of any terms and conditions of this contract.

iv. If the contractor commits any acts mentioned in Clause 36 hereof.

When the contractor has made himself liable for action under any of the case aforesaid the Engineer-in-charge on behalf of the Cochin Shipyard Limited have powers.

a) To determine or rescind the contract as aforesaid (of which termination or rescission notice in writing to the contractor under the hand of the Engineer-in-charge shall be conclusive evidence). Upon such determination or rescission the security deposit of the contractor shall be liable to be forfeited and shall be absolutely at the disposal of Cochin Shipyard Limited.

b) To employ labour and to supply materials to carry out the works or any part-of the work debiting the contractor with the cost of the labour and the price of the materials (of the amount of which cost and price certified by the Engineer-in-charge shall be final and conclusive against the contractor and crediting him with the value of the work done in all respects in the same manner and at the same rates as if it had been carried out by the contractor, under the terms of his contract. The certificate of the Engineer-in-charge as to the value of the work done shall be final and conclusive against the contractor, provided always that action under the sub clause shall only be taken after giving notice in writing to the contractor. Provided also that if the expenses incurred are less than the amount payable to the contractor at his agreement rates, the difference should not be paid to the contractor.

c) After giving notice to the contractor to measure up the work of the contractor and to take such part thereof as shall be unexecuted out of his hands and to give it to another contractor to complete in which case any expenses which may be incurred in excess of which would have been paid to the original contractor if the whole work had been executed by him (of the amount of which excess the certificate in writing of the Engineer-in-charge shall be final and conclusive) shall be borne and paid to the original contractor and may be deducted from any money due to him by Cochin Shipyard Limited under the contract or on any other accounts whatsoever or from his security deposit or the proceeds of sales thereof or a sufficient part thereof as the case may be.

In the event of any one or more of the above courses being adopted by the Engineer-in-charge the contractor shall have no claim to compensation for any loss sustained by him by reason of his having purchase or procured any material or entered into any engagement or made any advance on account or with a view to the execution of the work or the performance of contract. And in case action is taken under any of the provision aforesaid, the contractor shall not be entitled to recover/ or be paid any sum for any work thereto actually performed under this contract unless and until the Engineer-in-charge has certified in writing the performance of such work and the value payable in respect thereof and he shall only be entitled to be paid the value so certified.

CALUSE 3 A: The Contractor shall take necessary steps to ensure That all persons employed on any work in connection with this contract have noticed that the Indian Official Secret Act 1923 (XIX 1923) applies to them and shall continue so to apply even after the execution of such works under other contract.

CLAUSE 4 (i) All operations necessary for the execution of the works and for the construction of any temporary works shall so far as compliance with the requirements of the contract permits, be carried on so as to not to interfere unnecessarily or improperly with the contractors of the company, the public convenience or the access to use and occupation of public or private roads and footpaths or to the properties whether in the possession of Government or of other parties and the contractor shall serve harmless and indemnified the Cochin Shipyard Limited in respect of claims, demands, proceedings, damage, costs, charges and expenses whatsoever arising out of or in relation to any such matters in so far as the contractor is responsible thereof.

(ii) The works and temporary works shall be carried out in such a manner as not interfere with the ships or other vessels plying in the area or endanger or interfere with the traffic whether by road, rail or water and other normal operations.

(iii)The contractor shall in accordance with the requirements of the Engineer-in-charge afford all responsible opportunities for carrying out their works to any other contractor employed by the Shipyard or on near the site of any work not included in this contract or of contract which the Shipyard may enter into connection with or ancillary to the work. The Contractor shall construct and maintain at his own cost any approach road and access roads to the site as may be necessary and shall allow free use of the same to the Shipyard or any of the Shipyard’s other contractors who may be working in the vicinity.

CLAUSE 4 A: The contractor shall comply with and give all notice required under any Government authority, instrument rule or order made under any Act of Parliament, State Laws or any Regulation or Bye- laws of any Laws authority relating to the works. He shall before making any variation from the contract drawings necessitated by such compliance, give to the Engineer-in-charge a written notice giving reasons for the proposed variation and obtain in the Engineer-in-charge’s instructions thereon.

The contractor shall pay and indemnify Cochin Shipyard Limited against any liability in respect of any fees or charges payable under any Act of Parliament, State Laws or any Government Instruments Rule or Order any Regulation or Bye-laws local authority in respect of the works.

CLAUSE 4 B: Subject as otherwise provided in this Contract all notices to be given on behalf of Cochin Shipyard Limited and all other actions to be taken on its behalf may be given or taken by the Engineer-in-charge or any officer for the time being entrusted with the functions duties and powers of the Engineer-in-charge.

All instruction, notices and communications etc. under the Contract shall

Be given in writing and if sent by registered post to the last known place of abode or business of the Contractor shall be deemed to have served on the date when in the ordinary course of post these would have been delivered to him.

The Contractor or his agent shall be in attendance at the site(s) during all working hours and shall superintend the execution of the works with such additional assistance in each trade as Engineer-in-charge may be consider necessary. Orders given to the Contractor’s Agent shall be considered to have the same force as if they had been given to the contractor himself.

The Engineer-in-charge shall communicate or confirm his instructions to the contractor in respect of the execution of work in a ‘work Site Order Book’ maintained in the officer of the Engineer-in-charge and the Contractor or his authorized representative shall confirm receipt of such instruction by signing the relevant entries in this book. If required by the contractor he shall be furnished a certified true copy of such instructions(s).

CLAUSE 5. In any case in which any of the powers conferred upon the Engineer-in-charge by Clause 3 hereof, shall have become exercisable and the same shall not the exercised, the non-exercise thereof shall not constitute a waiver of any of the conditions hereof and such powers shall not withstanding be exercisable in the event of any future case of default by the contractor and the liability of the contractor for compensation shall remain unaffected. In the event of the Engineer-in-charge putting in force all or any of the powers vested in him under Clause 3 he may, if so desires, after giving a notice in writing to the contractor, take possession of (or at the sole discretion of the Engineering-in-charge which shall be final) use as on hire (the amount of the hire money being or also in the final determination of the Engineer-in-charge) shall or any tools, plant, materials and stores, in or upon the works, or the site thereof, belonging to the contractor, or procured by the contractor and intended to be used for the execution of the work or any part thereof, paying or allowing for the same in account at the contract rates, or in the case of these not being applicable, at current market rates to be certified by the Engineer-in-charge, whose certificate thereof shall be final, otherwise the contractor or his clerk of the works, foreman or other authorized agent to remove such tools plant materials or stores from the premises (within a time to be specified in such notice), and in the event of the contractor failing to comply with any such requisition, the Engineer-in-charge may remove them at the contractor’s expense or sell them by auction or private sale on account of the contractor and at his risk in all respects and the certificates of the Engineer-in-charge as to the expense of any such removal and the amount of the proceeds and expense of any such sale shall be final and conclusive against the contractor.

CLAUSE 6 : If the Contractor shall desire an extension of time for completion of the work on the ground of his having been unavoidably in its execution or on any other ground, he shall apply in writing to the DGM (Civil Engineering) within 3 days of the date of hindrance on account of which he desire such extension as a foresaid, and the DGM (Civil Engineering) shall, if in his opinion (which shall be final) reasonable grounds he shown therefore authorize such extension of time, if any, as may in his opinion necessary or proper.

CLAUSE 6 A: The contractor shall arrange at his own expenses tools of plant and equipment (referred to as T.& P) required for execution of the work.

CLAUSE 7: Within ten days of the completion of the work, the contractor shall give notice of such completion to the Engineer-in-charge and within thirty days the receipt of such notice the Engineer-in-charge shall inspect the work and if there is no defect in the work shall furnish the contractor with a certificate of completion, otherwise a provisional certificate of completion indicating defects (a) to be rectified by the contractor / and or (b) for which payment will be made at reduced rates shall be issued but no certificate of completion provisional or otherwise, shall be issued nor shall the work be considered to be complete until the contractor shall have removed from the premises on which the work shall be executed all scaffolding surplus materials, rubbish and all huts and sanitary arrangements required for his/their work /people on the site in connection with the execution of the works and shall have been erected or constructed by the contractor (s) and cleaned off the debris from all wood works, doors, windows, walls, floors or other parts of any building, in, upon or about which the execution thereof and not until the work shall have been measured by the Engineer-in-charge may at the expense of the contractor remove such scaffolding, surplus materials and rubbish etc. and dispose of the same as he thinks fit and clean off such dirt as aforesaid and the contractor shall have no claim in respect of any such scaffolding or surplus materials as aforesaid except for any sums actually realized by the sale thereof.

CLAUSE 8: No payments shall be made for works estimated to cost less than rupees five thousand, till after the whole of the works shall have been completed and certificate of completion given. But in the case of works estimated to cost more than rupees five thousand, the contractor shall on submitting the bill thereof be entitled to receive a monthly payment proportionate to the part thereof been shall be final and conclusive against the contractor But all such intermediate payments shall be regarded as payments by way of advance against the final payment only and not as payments for work actually done and completed and shall not preclude the requiring of bad, unsound and imperfect or unskilled work to be removed and taken away and reconstructed or re-erected or be considered as an admission of the due performance of the contract, or any part thereof in any respect or the occurring of any claim, nor shall it conclude, determine or affect in any way the power of the Engineer-in-charge under these conditions or any of them as to the final settlement and adjustment of the accounts or otherwise, or in any other way vary or affect the contract. The final bill shall be submitted by the contractor within one month of the date fixed for completion of the work or of the date of the contractor within one month of the date fixed for completion of the work or of the date of the certificate of completion furnished by the Engineer-in-charge and payment shall be made within three months if the amount of the Engineer-in-charge and payment shall be made within three months if the same exceeds Rs. 2 lakhs of the submission of such bill. No further claims shall be made by the contractor after submission of the final and these shall deemed to have been waived and extinguished. If there shall be any dispute about any item or items of the work then the undisputed item or items only shall be paid within the said period of three months as the case may be. The contractor shall submit a list of the disputed items within thirty days from the disallowance thereof and if he fails to do this, his claim shall be deemed to have been fully waived and absolutely extinguished.

CLAUSE 9: A bill shall be submitted by the contractor each month on before the date fixed by the Engineer-in-charge for all works executed in the previous month, and the Engineer-in-charge shall take or cause to be taken the requisite measurement for the purpose of having the same verified, and the claim, as far as admissible, adjusted as far as possible, before the expiry of ten days from the presentation of the bill. If the contractor does not submit the bill within the date fixed as aforesaid, a subordinate to measure up the said work in the presence of the contractor whose countersignature to the measurement list will be sufficient warrant, and the Engineer-in-charge may prepare a bill from such list.

CLAUSE 10: Before taking any measurement of any work as has been referred to in clause 7,8 and 9 hereof the Engineer-in-charge or a subordinate deputed by him shall give reasonable notice to the contractor. If the contractor fails to attend at the measurements after such notice or fails to countersign or to record the difference within a week from the date of measurement in the manner required by the Engineer-in-charge then in any such event the measurements taken by the Engineer-in-charge or by the subordinate deputed by him as the case may be shall be final and binding on the contractor and shall have no right to dispute the same.

CLAUSE 11: The contractor shall submit all bills, on the printed forms to be had on application at the office of the Engineer-in-charge and the charge in the bills shall always be entered at the rates specified in the tender or in the case of any extra work ordered in pursuance of these conditions and not mentioned or provided for in the tender at the rates hereinafter provided for such work. The cost of printed forms shall be borne by the contractor.

CLAUSE 12: Payment due to the contractor may, if so desired by him, be made of his bank instead of direct to him provided that the contractor furnishes to the Engineer-in-charge (1) an authorisation in the form of a legally valid document such as power of attorney conferring authority on the bank to receive payment and (2) his own acceptance of the correctness of the account made out as being due to him by CSL or his signature on the bill or other claim by payment to the Bank. While the receipt given by such bank shall constitute a full and sufficient discharge for the payment, the Contractor should wherever possible, present his bill receipted and discharged through his bankers.

Nothing herein contained shall operate to create in favour of the bank any rights or equities vis-à-vis the Cochin Shipyard Limited.

CLAUSE 13: Store supplied by Cochin Shipyard Limited if the specification or schedule of items provided for the use of any special description of materials to be supplied from Engineer-in-charge’s stores, or if it is required that the contractor shall use certain stores to be provided by the Engineer-in-charge, as shown in the schedule of materials hereto annexed, the contractor shall be bound to procure and shall be supplied such materials and stores as are from time to time required to be used by him for the purpose of the contract only and the value of the full quantity of materials and stores so supplied at the rates specified in the said schedule of materials may be set off or deducted from any then due, or there after to become due to the contractor under the contract, or otherwise, or against the security deposit, or the proceeds of the sale thereof if the same is held in Government Securities the same or a sufficient portion thereof being in this case sold for the purpose. All materials so supplied to the contractor shall remain the absolute property of Cochin Shipyard Limited, and shall not be removed on any account from the site of the work and shall be at all time open to inspection by the Engineer-in-charge. Any such materials remaining unused and in perfectly good condition at the time of the completion of determination of the contract shall be returned to the Engineer-in-charge at a place directed by him if any a notice in writing under his hand he shall so require, but the contractor shall not be entitled to return any such materials unless with such consent and shall have no claim for compensation on account of any such materials so supplied to him as aforesaid not being used by him or for any wastage in or damage to an such materials. Provided that the contractor shall in no case be entitled to any such materials so supplied to him as aforesaid not being used by him or for any wastage in or damage to any such materials. Provided that the contractor shall in no case be entitled to any compensation or damages on account of any delay in supply or non-supply thereof all or any such materials and stores provided further that the contractor shall be bound to execute the entire work if the materials are supplied by the Cochin Shipyard Limited within the scheduled time for completion of the work plus 50% thereof (Schedule time plus 6 months if the time of completion of the work exceeds 12 months) but if a part only of the materials has been supplied within be possible with the materials and stores supplied in he aforesaid period. For the completion of the rent of the work, the contractor shall be entitled to such extension of time as may be determined by the Engineer-in-charge whose decision in this regard shall be final.

CLAUSE 14: The Engineer-in-charge shall have full powers to require the removal from the premises of all materials which in his opinion are not in accordance with the specifications and in case of default the Engineer-in-charge is to be at liberally to employ other persons to remove the same without being answerable or accountable for any loss or damage that may happen or arise to such materials. The Engineer-in-charge shall also have full powers to require other proper materials to be substituted therefore and in case of default the Engineer-in-charge may cause the same to be supplied and all costs which may attend such removal and substitution are to be borne by the Contractor.

CLAUSE 15: The Contractor on signing an indenture in the form to be specified by the Engineer-in-charge shall be entitled to be paid during the progress of the execution of the work 75% of the purchase price of any materials actually acquired for the work which are in the opinion of the Engineer-in-charge non perishable are in accordance with the contract, are necessary for the work, are not in excess of requirements and which have been brought on the site in connection there with and are adequately stored and / or protected against damage by weather or other cause but which have not at the time of advance been incorporated in he work. In such cases the Contractor should produce documents in support of the price paid by him and the decision of the Engineer-in-charge as regards the reasonableness of the price shall be final. In case when documentary evidence of price cannot be readily produced, Engineer-in-charge may assess a reasonable price. When materials on account of which an advance has been made under this sub-clause are incorporated in the work the amount of such advance shall be deducted from the next payment made under any of the clause or clause of this contract.

CLAUSE 16: If during the progress of the works, the price of any materials incorporated in the works (not being a material supplied from the Engineer-in-charge’s stores in accordance with clause 13 thereof) and / or wages of labour increase as a direct result or the coming into force of any fresh law, or statutory rule or order ( but not due to any changes in Sales Tax) and such increase exceeds ten percent of the price and / or wages prevailing at the time of acceptance of the tender for the work, and the contractor thereupon necessarily and properly pays in respect of that material (incorporated in the works) such increased price and / or in respect of labour engaged on the execution of the work such increased wages, then the amount of the contract shall accordingly be varied, provided always that any increase so payable is not in the opinion of the Administrative head (whose decision shall be final and binding) attributable to delay in the execution of the contract, within the control of the contractor. If during the progress of the works, the price of any materials incorporated in the works (not being a material supplied from the Engineer-in-charge’s Store in accordance with Clause 13 here of) and / or wages of labour is decreased as result of the coming into force of any fresh law, or statutory rule or order (but not due to any changes in Sales Tax) and such decrease exceeds ten percent of prices and / or wages prevailing at the time of acceptance of tender for the work Engineer shall in respect of materials incorporated in the works (not being materials supplied from the Engineer-in-charge’s Store in accordance with Clause 13 hereof) and / or labour engaged on the execution of the work after the date of coming in to force of such law, statutory rule or order be entitled to deduct from the dues of the contractor such amount as shall be equivalent to difference between the prices of materials and / or wages as they prevailed at the time of acceptance of tender for the work minus ten percent thereof and the prices of materials and / or wages of labour on the coming into force of such law, statutory rule or order.

The contractor shall, for the purpose of this conditions, keep such books of account and other documents as are necessary to show the amount of any increase claimed or reduction available and shall allow inspection of the same by a duly authorized representative of Engineer, and further shall, at the request of the Engineer –in-charge, furnish, verified in such a manner as the Engineer-in-charge may require, any documents so kept and such other information as the Engineer-in-charge may require. The Contractor shall within a reasonable time of his becoming aware of any alteration in the price of any such materials and / on wages of a labour, give notice thereof to the Engineer-in-charge stating that the same is given pursuant of this condition together with all information relating thereto which he may be in a position to supply.

CLAUSE 17: The contractor shall treat all material obtained from dismantling of a structure, excavation of the site for a work etc., as Cochin Shipyard Limited property and such materials shall be duly handed over to the Engineer-in-charge or disposed of to the best advantage of Cochin Shipyard Ltd, according to the instructions in writing issued by the Engineer-in-charge.

CLAUSE 18: The contractor shall execute the whole and every part of the work in the most substantial and workmanlike manner both as regards materials and otherwise, in every respect in strict accordance with the specifications. The contractor shall also conform exactly fully and faithfully to the designs, drawings, and instructions in writing in respect of the work signed by the Engineer-in-charge and the contractor shall be furnished free of charge one copy of specification and of all such drawings and instructions as are not included in the specification mentioned elsewhere in the contract.

CLAUSE 19: The Engineer-in-charge shall have power to make any alteration, in omissions from, additions to or substitutions for, the original specifications drawings, designs and instructions, that may appear to him to be necessary during the progress of the work and the contractor shall carry out the work in accordance with any instructions which may be given to him in writing signed by the Engineer-in-charge, and such alterations, omission, additional or substitutions shall not invalidate the contract any altered, additions, or substituted work which the contractor may be directed to do in the manner above specified as part of the work shall be carried out by the contractor on the same conditions in all respects on which he agreed to do the main if the Contractor finds after examining the plans, Specification and Site conditions that extras are involved, he should give notice to the Engineer to this effect and shall proceed with the execution of the extra item (altered, additional or substituted items) only after receiving instructions in writing from the Engineer-in-charge. There shall be an order in writing to executive to the extra item of work duly signed by the Engineer-in-charge before the commencement. The Engineer-in-charge reserves the right to execute any extra items of work beyond the scope of the contract by other agencies. The time for the completion of the work shall, if requested by the contractors, be extended the proportion that the altered, additional or substituted work bears to the original contract work, and the certificate of the Engineer-in-charge shall be conclusive as to such proportion. Over and above this, further period to the extent of 25 percent of such extension shall be allowed to the contractor if found reasonable by the Engineer-in-charge. The rate for such additional altered or submitted work under this clause shall be worked out in accordance with the following provision in their inspective order.

(i) If the rates for the additional, altered or substituted work are specified in the contract for the work, the contractor is bound to carry out the additional altered or substituted work at the same rates as are specified in the contract for the work. In the case of compo-site tenders where two or more schedules of quantities may form part of the contract the applicable rate shall be taken from the schedule of quantities of that particulars part in which the deviation is involved, failing that at the lowest applicable rate for the same item of work in the other schedule of quantities.

(ii) If the rate for any altered additional or substituted work are specified in the schedule of quantities the rate for that item shall be derived from the rate for the nearest similar item specified therein . in case of composite tenders where two or more schedule of quantities from part of the contract, the rate shall be derived from the nearest similar item in the Bill of Quantities of the particulars part of the works in which the deviation is involved failing that from the lowest of nearest similar items in other schedule of quantities.

(iii) If the altered, additional or substituted item includes any work for which no rate is specified in the contract and the rate for work cannot be derived from the similar class of work in the contract than such work shall be carried out at the rate provided for in the Kerala State P.W.D ………….………………..Schedule of Rates applicable to Ernakulam District Tender excess or tender deduction will be applied.

(iv) If the rate for any altered, additional or substituted item of work cannot be determined in the manner specified in Sub-Para (i) to the (iii) above then the rate for such items of work shall be derived from the Schedule of Rate specified in sub-para (iii) without applying tender excess or deduction. Provided always that if rate (s) for the such part (s) of an item (s) is / are not specified in the Schedule of Rate the rate the rate (s) for such part (s) shall be determined by the Engineer-in-Charge on basis of the purchase price as supported by the vouchers unless the Engineer-in-charge finds the purchase price as supported by the vouchers unless the Engineer-in-charge fro the purchase price unreasonable. In the alter event the price shall be determined on the basis of market rate (s) prevailing during the fortnight following the date of the order. Contractor’s profit @ 10% is to be added to such items where rate has been determined based on prevailing market rate.

(v) If the rates for the altered, additional or substituted work cannot be determined in the manner specified in sub-clause (i) to (iv) above than the contractor shall, within 14 Days of the date of receipt of order to carry out the work, inform the D G M (Civil Engg.) of the rate which in his intention to charge for such class of work, supported by analysis of the rate or rates claimed, and the D G M (Civil Engg.) shall determine the rate or rates on the basis of prevailing market rates, and pay the contractor accordingly. In the event of the contractor failing to inform the Engineer-in-charge within the stipulated period of time, the rate which he proposes to claim, the rate for such item, shall determined by the Engineer-in-charge on the basis of his assessment of the market rates. Contractor’s profit at 10% is to be added to such items where the rate has to be determined based on prevailing market rate. However, the Engineer-in-charge, by notice in writing, will be at liberty to cancel his order to carry out such class of work and arrange to carry out in such manner as he may consider advisable, but under no circumstances, the contractor shall suspend the work on the plea of non settlement of rates of items falling under the clause.

(vi) The deviations ordered on item of any individual trade included in the contract excluding that of foundation shall no exceed plus 25% of the value of the trade in the contract as a whole. The contractors shall execute the work upto the above deviation at the quoted rate for the work. The work in foundation consists of all items below ground surface, quantities of which may vary due to site or soil conditions.

Notes: -

Individual trade means the trade sections in to which a schedule of quantities annexed to the agreement has been divided or, in the absence of any such division, the individual sections of the Kerala state P W D Schedule of rate specified above, such as excavation and earth work, concrete, wood work and joinery etc.

The rates of any such work except the items relating to foundation, which is in excess of the deviation limit of 25%, shall be determined in accordance with the provision contained in Clause – 20.

Clause 20: In the case of contracted or substituted item which individually exceed the quantities stipulated in the contract by more than the deviation limit except the items relating to foundation work, which the contractor, ie, required to under clause 19 above, the contractor shall, with in 7 days from the receipts or order claim revision of the rates supported by proper analysis in respect of such items for quantities in excess of the deviation limit, not withstanding the fact that the rates for such items exist in the tender for the main work or can be derived in accordance with the provision of sub clause 19 and the Engineer-in-charge may revise their rates, having regard to the prevailing market rate and the contractor shall be paid in accordance with the rate so fixed. The Engineer-in-charge shall, however, be at liberty to cancel his order to carry out such increased quantities of work by giving notice in writing to the contract and arranged to carry it out in such manner as he may consider advisable. But under no circumstances the contractor shall suspend the work on the plea of non – settlement rates of items falling under this clause. All the provision of the preceding paragraph shall equally apply to the decrease in the rates for such items exist in the tender for the main work or can be derived in accordance with the provisions of sub-clause (2) of the preceding clause 19, and the Engineer-in-charge may revise such rates having regards to the prevailing market rates.

CLAUSE 20A:

(a) The contractor shall on receipt of the order in writing of the Engineer-in-charge suspend the progress of the work, or any part thereof for such time and in such manner as the Engineer-in-Charge may consider necessary for any of the following reasons.

(i) On account of any default on part of the contractor.

(ii) For proper execution of the works or part there of for reasons other than the default the contractor or

(iii) For safety of the works or part thereof.

The contractor shall, during such suspension, properly protect and secure the works to the extent necessary and carry out the instructions given in that behalf by the Engineer-in-Charge.

(b) If the Suspension is ordered for reasons (ii) and (iii) in the above para.

(i) The Contractor shall be entitled to an extension of the time equal to the period of every such suspension PLUS 25 % for completion of the item or group of items of work for which a separate period of completion is specified in he contract and of which the suspended work forms a part, and

(ii) If he total period of all such suspension in respect of an item or group of them of work for which a separate period of completion is specified in the contract exceeds thirty days, the contractor shall, in addition, be entitled to compensation, as the Engineer-in-charge may consider reasonable, in respect of salaries and / or wages paid by the contractor to his employees and labour at site, remaining idle during the period of suspension, adding there to a suitable percentage to be decided by the Engineer-in-charge to cover indirect expenses of the contract.

(c) If the works or part thereof is suspended on he orders of the Engineer-in-charge for more than three months at a time, except when suspension is ordered for reason (i) in sub-para (a) above, the Contractor may after receipt of such order serve a written notice on the Engineer-in-charge requiring permission within fifteen days from receipt by the Engineer-in-charge of the said notice, to proceed with works or part thereof in regard to which progress has been suspended and if such permission is not granted within that time, the Contractor, if the intends to treat the suspension, where it affect only a part of the works as an omission of such part by Government under Condition 19 and 20 or where it affects the whole of the works, as an abandonment of work by Cochin Shipyard Limited, shall within ten days of expiry of such period of 15 days give notice in writing of his intention to the Engineer-in-charge. In the event of the Contractor treating the suspension as an abandonment of the Cochin Shipyard Limited, he shall have no claim to payment of any compensation on account of any profit or advantage which he may have derived from he execution of the work in full but which he could not derive in consequence of the abandonment. He shall, however, be entitled to compensation, as the Engineer-in-charge may consider reasonable, in respect of salaries and / or wages paid by him to his employees and labour at site, remaining idle in consequence and of materials collected which could not be utilized on the works, adding to the total thereof a suitable percentage to be decided by the Engineer-in-charge to cover indirect expenses of the Contractor.

CLAUSE 20 B: In any urgent work (in respect where of the decision of the Engineer-in-charge shall be final and binding) becomes necessary and the contractor is unable or unwilling at once to carry it out the Engineer-in-charge may by his own or other work people carry it out as he may consider necessary, If the urgent work shall be such as the contractor is liable under the contract to carry out at his expenses, all expenses incurred on it by Cochin Shipyard Limited, shall be recoverable from the contractor and he adjusted or set off against any sum payable to him.

CLAUSE 21: If any time after the commencement of the work the Cochin Shipyard Limited shall for any reason whatsoever not require whole or part thereof as specified in the tender to be carried out the Engineer-in-charge shall give notice in writing of the fact to the contractor who shall have claim to any payment of compensation whatsoever on account of any profit or advantage which he might have derived from the execution of the work in full, but which he did not derive in consequence of the full amount of the work not having been made in the original specifications, drawings, designs and instructions which shall involve any curtailment of the work as originally contemplated.

Provided that the contractor shall be paid the charge only of materials actually and bona fide brought to the site of the work by the contractor and rendered surplus as a result of the abandonment or curtailment of the work or any portion thereof and then taken batch by the contractor provided however, that the Engineer-in-charge shall have in all such cases the option of taking over all or any such materials at their purchase price or at local current rates whichever may be less. In the case of such stores having been issued from Cochin Shipyard stores, supervision charges and storages charges shall be refunded in addition to the issue rate of materials.

CLAUSE 22. If it shall appear to the Engineer-in-charge or his subordinate in charge of the work that any work has been executed with unsound, imperfect or unskillful workmanship or with materials of any inferior description or that any materials or articles provided by the Contractor for the execution of the work are unsound or of a quality inferior to that contracted for otherwise not in accordance with the contract, the contracted for or in writing which shall be made within six months of the completion of the work from the Engineer-in-charge specifying the work, materials or articles complained of notwithstanding that the same may have been passed certified, forthwith rectify or remove add reconstruct the work so specified in or paid for whole or in part, as the case may require or as the case may be, remove materials, or articles so specified and provided other proper and suitable materials or articles at his own proper charge and cost, and in the event of his failing to do so within a period to be specified by the Engineer-in-charge in his demand aforesaid then the contractor shall be liable to pay compensation at the rate mentioned in Clause 2, while his failure to do so shall continue and in the case of any such failure the Engineer-in-charge may rectify or remove and re-execute the work or remove and replace with the materials or articles complained of as the case may be at the risk and expense in all respects of the contractor.

CLAUSE 23: All works under or in course of execution or executed in pursuance of the contract shall at all times be open to the inspection and supervision of the Engineer-in-charge and his authorized subordinates and the contractor shall at all times during the usual working hours, and at all other times during the usual working hours, and at all other times at which reasonable notice of the intention of the Engineer-in-charge, or his subordinate to visit the works shall have been given to the contractors either himself be present to receive order and instruction, or have responsible agent duly accredited in writing present for that purpose. Order given to the Contractor’s agent shall be considered to have the same force as if they had been given to the contractor himself.

CLAUSE 24: The contractor shall give not less than seven days notice in writing to the Engineer-in-charge or his subordinate in charge of the work before covering up or otherwise placing beyond the reach of measurement any work in order that the same may be measured, and correct dimensions thereof be taken before the same is so covered up or placed beyond the reach of measurement and shall not cover up and place beyond the reach of measurement may work without the consent in writing of the Engineer-in-charge or his subordinate in charge of the work who shall within the aforesaid period of seven days inspect the work and if any work shall be covered up or placed beyond the reach of measurement without such notice having been given or Engineer-in-charge’s consent being obtained the same shall be uncovered at the contactor’s expense, or in default thereof no payment or allowance shall be made for such work or the materials with which the same was executed.

CLAUSE 25: If the contractor or his working people or servants shall break, deface, injure or destroy any part of building in which they may be working, or any building road, road curb, fence enclosure, water pipe, cables, drains electric or telephone post or wires, trees, grass or grass land or cultivated ground continuous to the premises on which the work or any part of its is being executed, or if any defect shrinkage or other faults appear in the work within six months after a certificate final or otherwise of its completion shall have been by the Engineer-in-charge as aforesaid arising out of defective or improper materials or workmanship the contract shall upon a receipt or a notice in writing in that behalf make the same good at his own expense, or in default the Engineer-in- charge may cause the same to be made good by other workmen and deduct the expenses from any sums that may be then, or at any time thereafter becomes due to the contractor either on this or any other contract or from his security deposit or the proceeds of sale thereof or of a sufficient portion thereof. The security deposit of the contractor shall not be refunded before the expiry of six months after the issue of the certificate final or otherwise of completion of work or till the final bill has been prepared and passed whichever is later.

CLAUSE 26: The Contractor shall supply and provide at his own cost all materials (except such special materials, if any, as may in accordance with the contract be supplied from the Engineer-in-charge's Stores), plant, tools, appliances, implements, ladders, cordage, tackle, scaffoldings and temporary works requisite or proper for the proper execution of the work whether original, altered or substituted and whether included in the specification or other documents forming part of he contract or referred to in these conditions or not, or which may be necessary for the purpose of satisfying or complying with the requirements of the Engineer-in-charge as to any matter as to which, under those conditions he is entitled to be satisfied, or which he is entitled to require together with carriage, therefore to and from the work, the contractor shall also supply without charge the requisite number of persons with the means materials, necessary for the purpose of setting out works, and counting weighing and assisting of the measurement of examination at any time and from time to time of the work or materials. Failing his so doing the same may be provided by the Engineer-in-charge at the expense of the contractor and the expenses may be deducted from any money due to the contractor, under this or any other contract and or from his security deposit or the proceeds of sale thereof, or of a sufficient portion thereof.

CLAUSE 27: In every case in which by virtue of the provisions of section 12, sub-section (1) of the workmen's Compensation Act 1623, Cochin Shipyard Limited is obliged to pay compensation to a workman employed by the Contractor in execution of works Cochin Shipyard Limited will recover from the contractor the amount of the compensation so paid and without prejudice to the rights of the Cochin Shipyard Limited under section 12sub-section (2) of the said Act, Cochin Shipyard Limited shall be at liberty to recover such amount of any part thereof by deducting it from the security deposit of from any sum due by Cochin Shipyard Limited to the Contractor whether under this contract or otherwise. Cochin Shipyard Limited shall not be bound to contest any claim made against in under section 12, sub-section (1) of the said Act, except on the written request of the Contractor and upon his giving to Cochin Shipyard Limited full security for all costs for which Cochin Shipyard Limited might become liable in consequence of contesting such claim.

CLAUSE 28: No labourer below the age of fourteen years shall be employed on the work.

CLAUSE 29:

(i) Payment of wages to labourers.

The Contractor shall make payment to labourer employed by him either directly or through sub-contractors, wages not less than Fair Wages as defined in the Contractor’s Labour Regulations appended herewith.

(ii) In respect of all labour directly or indirectly employed in the works for performance of the Contractor’s part of this agreement, the contractor shall comply with or cause to be complied with the contractor’s Labour Regulations appended herewith in regards to all matters provided therein.

(iii) The Engineer-in-charge shall have the right to deduct from the moneys due to the contractor any sum requested or estimated to be required for making good the loss suffered by a worker of non-fulfillment of the conditions of the contract for the benefit of the workers, non-payment of wages or deductions made from his or their wages which are not justified by their terms of the contract or non-observance of the Regulations.

(iv) The contractor shall comply with the provisions of the Indian Employment of Children Act, 1933 , the payment of wages Act, 1936. The Minimum Wages Act, 1948, the Minimum Wages ( Central) Rules,1950, The Factory Act 1948, Employers Liability Act, 1938, Workmen’s Compensation Act, 1923 Industrial Disputes Act, 1947, the Maternity Benefit Act, 1961, the Model Rules for protection of health and Sanitary Arrangements for employed and the Contractors Labour Regulation and or any modifications thereof or any other labour laws and Rule made there under from time to time.

(v) Vis-à-vis the Cochin Shipyard Limited the contractor shall be primarily liable to all payments to be made under and for the observance of the regulation a foresaid without prejudice to his right to claim indemnity from sub-contractors.

(vi) The regulations aforesaid shall be deemed to be a part of this contract and any breach thereof shall be deemed to be breach of contract.

CLAUSES 30: In respect of all labour directly or indirectly employed in the work for the performance of the agreement the contractor shall at his own expense arrange for the safety provision as per the Appendix and or as required by the Engineer-charge and shall at his own expense provided for all facilities and in connection therewith. In case the Contractor fails to make arrangement and provide necessary facilities as aforesaid he shall be liable to pay a penalty of Rs. 50/- for each default and in addition the Engineer-in-charge shall be at liberty to make arrangement and provide facilities as aforesaid and recover the cost incurred in that behalf from the Contractor.

CLAUSE 31: The contractor shall submit, by the 4th and 19th of every month, to the Engineer-in-charge a true statement showing, in respect of the second half of the preceding month and the first half of the current months respectively (1) the number of labourers employed by him on the work (2) their working hours (3) the wages paid to them (4) the accidents that occurred during the said fortnight showing the circumstances under which they happened and the extend of damage and injury caused by them and (5) the number of female workers who have been allowed Maternity benefit according to Clause 32A and the amount paid to them failing which the contractor shall be liable to pay to Cochin Shipyard Limited a sum not exceeding Rs. 50/- for each default of Materially incorrect statement. The decision of the engineer-in-charge shall be final in deducting from any bill due to the contractor the amount levied as fine.

CLAUSE 32 A: Leave and pay during leave shall be regulated as follows:

(1) Leave:

(i) In case of delivery, maternity leave not exceeding 8 weeks 4 weeks upto and including the day of delivery and 4 weeks following that day.

(ii) In case of miscarriage upto 3 weeks from the date of miscarriage.

(2) Pay:

(i) In case of delivery leave pay during maternity leave will be at the rate of the woman’s average Daily earnings, calculated on the total wage earned on the days when full time work was done during a period of 3 months immediately proceeding the date on which she give notice that she expects to be confines or at the rate of rupee one a day whichever is greater.

(ii) In case of miscarriage leave pay at the rate of average daily earnings calculated on the total wage earned on the days when full time work was done during a period of 3 months immediately preceding the date of such miscarriage.

(3) Conditions for the grant of maternity leave:

No maternity leave benefit shall be admissible to woman unless she has been employed for a total period of not less than 6 months immediately proceeding the date on which she proceeds on leave.

(4) The Contractor shall maintain a register of Maternity (benefit) in the prescribed form at Annexure – III and the same shall be kept at the place of work.

CLAUSE 33: In the event of the contractor (s) committing a default or breach of any of the provisions of the contractor’s committing a default or breach of any of the provisions of the contractor’s labour Regulations and Model Rules for the protection of health and sanitary arrangements for the workers as amended from time to time or furnishing any information or submitting or filing any statement under the provisions of the above regulations and rules which is materially incorrect, he/they shall without prejudice to any other liability pay to the Cochin Shipyard Limited a sum not exceeding Rs. 50/- for every default, break or furnishing, making, submitting, filing such materially incorrect statements and in the event of the contractor (s) defaulting continuously in this respect, the penalty may be enhanced to Rs. 50/- per day for each day of default subject to a maximum of 5% of the estimated cost of the work put to tender. The decision of the Engineer-in-charge shall be final and binding of the parties.

Should it appear to the Engineer-in-charge that the contractor (s) is / are not properly observing and complying with the Model Rules for the production of health and sanitary arrangements for work people employed by the contractor (s) (herein after referred to as “the said Rules”) the Engineer-in-charge shall have powers to give notice in writing to the contractor (s) requiring that the said rules be complied with the amenities prescribed therein be provided to the work people within a reasonable time to be specified in the notice. If the contractor (s) shall fail within the period specified in the notice to comply with and / observe the said rules and to provide the amenities to the work – people as aforesaid the Engineer-in-charge shall have the power to provide the amenities hereinbefore mention at the cost of the contractor (s). The contractor (s) shall erect, make and maintain at his/ their own expense and to approve standards all necessary huts and sanitary arrangements required for his/their work people in connection with the execution of the works and if the same shall not have been erected or constructed, according to approved standards, the Engineer-in-charge shall have power to give notice in writing to the contractor (s) requiring that the said huts and sanitary arrangements be remodeled and / or reconstructed according to approved standards and if the contractor (s) fail to remodel or reconstruct such has and sanitary arrangement according to approved standards within the period specified in the notice, the Engineer-in-charge shall have the power to remodel or reconstruct such huts and sanitary arrangements according to approved standards at the cost of the contractors.

CLAUSE 34: The contractor (s) shall at his / their own cost provide his / either labour within a sufficient number of huts (hereinafter referred to as the camp) of the following specifications on a suitable plot of land to be approved by the Engineer-in-charge. No land however will be made available by the Cochin Shipyard for the purpose of erecting huts or any other type of accommodation for contractors labourers.

1(a) The minimum height of each hut at the eye level shall be 7’ and the floor area to be provided will be at the rate of 3 sq.m for each member of the worker’s family staying with the labour.

(b) The contractor (s) shall in addition construct suitable cooking places having a minimum area of 6’ x 5’ adjacent to the hut for each family.

(c) The contractor (s) shall also construct temporary latrine and urinals for the use of the labourers each on the scale of not less than four per each one hundred of the total strength, separate latrines and urinals being provided for women.

(d) The contractor (s) shall construct sufficient number of bathing and washing places, one unit for every 25 persons residing in the camp. These bathing and washing places shall be suitably screened.

2(a) All the huts shall have walls of sun-dried or burnt bricks laid in mud mortar or other suitable local materials as may be approved by the Engineer-in-charge. In case of sun dried bricks, the walls should be plastered with mud gobri on both sides. The floor may be katch but plastered with mud gobri and shell be at least 6” above the surrounding ground. The roofs shall be laid with thatched or any other materials as may be approved by the Engineer-in-charge and the contractor shall ensure that throughout the period of their occupation the roofs remain watertight.

(b) The contractor (s) shall provide each hut with proper ventilation.

(d) There shall be kept an open space of at least 8 yards between the rows of huts which may be reduced to 20 ft. according to the availability of site with approval of the Engineer-in-charge, back to construction will be allowed.

3. WATER SUPPLY: The contractor (s) shall provide adequate supply of water for the use of labourers. The provisions shall not be less than 2 gallons of pure and wholesome water per head per day for drinking purpose and 3 gallons of clean water per head per day for bathing, washing purposes, where pipe water supply is available, the supply shall be at stand pots and where the supply is from well or river, tanks which may be metal or masonry shall be provided. The contractor (s) shall also at his / their own cost make arrangements for laying pipelines for water supply to his / their labour camp from the existing main whatever available and shall pay all fees and charges therefore.

4. The site selected for the camp shall be high ground removed from jungle.

5. Disposal of Excreta- The contractor (s) shall make necessary arrangements for the disposal of excreta from the latrines by trenching or incineration which shall be according to the requirements laid down by the local Health Authorities. If trenching or incineration is not allowed, the contractor (s) shall make arrangements for removal of the excreta through the Municipal Committee / Authority and inform it about the number of labourers employed so that arrangements may be made by such committees / authority for the removal of the excreta. All charges on this account shall be borne by the contractor and paid direct by him to the Municipal / Authority. The contractors shall provide one sweeper for every 8 scats in case of dry system.

6. Drainage - The contractor (s) shall provide efficient arrangements for draining away sullage water so as to keep the camp neat the tidy.

7. The contractor (s) shall make necessary arrangements for keeping the camp area sufficiently lighted to avoid accidents to the workers.

8. Sanitation - The contractor (s) shall make necessary arrangements for conservancy and sanitation in the labour camps according to the rule of the Local Public Health and Medical Authorities.

CLAUSE 35: The Engineer-in-charge may require the contractor to dismiss or remove from the site of the work any person or persons in the Contractor shall forthwith comply with such requirements.

CLAUSE 36. The contract shall not be assigned or subject without the written approval of the Engineer-in-charge. And if the contractor shall assign or sublet his contact, or attempt so to do, or become insolvent or commence any insolvency proceedings or make any composition with his creditors or attempt so to do or if any bride gratuity gift, loan for perquisite, reward or advantage pecuniary or otherwise, shall either directly, be given promised or offered by the contractor, or any of his servants or agents to any public officer or person in the employee of Cochin Shipyard Limited in anyway relating to his officer or employment, or if any such officer or person shall become in anyway relating to his officer or employment, or if any such officer or person shall of the Cochin Shipyard Limited shall have power to adopt any of the courses specified in Clause 3 as he may deem best suited to the interest of Cochin Shipyard Limited and in the event of these courses being adopted the consequences specified in the said Clause 3 shall ensure.

CLAUSE 37: All sums payable by way of compensation under any of these conditions shall be considered as reasonable compensation to be applied to the use of Cochin Shipyard Limited without reference to the actual loss of damage sustained and whether or not any damage shall have been sustained.

CLAUSE 38: where the contractor is a partnership firm, the previous approval in writing of the Engineer-in-charge shall be obtained before any change is made in the constitution of the firm. Where the contractor is an individual or a Hindu undivided family business concern such approval as aforesaid shall likewise to be obtained before the contractor enters into any partnership agreement where under the partnership firm would have the right to carry out the work hereby undertaken by the Contractor, if previous approval as aforesaid in not obtained the contract shall be deemed to have assigned in contravention of Clause 36 hereof and the same action may be taken, and the same consequences shall ensure as provided in the said Clause 36.

CLAUSE 39: All works to be executed under the contract shall be executed under the direction subject to the approval in all respects of the Engineer-in-charge who shall be entitled to direct at what points and in what manner they are to be commenced, and from time to time carried on.

CLAUSE 40: All questions disputes or difference or differences arising under, out of, or in connection with the contract shall be subject to Indian laws for the time being in force and the exclusive jurisdiction of the courts at Cochin.

CLAUSE 41: The contractor shall fully indemnify the Cochin Shipyard Limited against any action, claims or proceedings relating to infringement or use of any patent or design or any alleged patent or design rights and shall pay any royalties which may be payable in respect of any article or part thereof included in the contract. In the event of any claims made under or action brought against Cochin Shipyard Limited in respect of any such matters as aforesaid the contractor shall be immediately noticed thereof and the contractor shall be at liberty, at his own expense to settle any dispute or to conduct any litigation that may arise there from provided that the Contract shall not be liable to indemnify the Cochin Shipyard Ltd. if the infringement of the patent or design or any alleged patent or design rights is the direct result of an order passed by the Engineer-in-charge in this behalf.

CALUSE 42: When the estimate on which a tender is made includes lump sums in respect parts of the work, the contractor shall be entitled to payment in respect of the items of work involved or the part of the work in question at the same rates as are payable under this contract for such items, or if the part of the work in question is not, in the opinion of the Engineer –in-charge capable of measurement, the Engineer-in-charge may at his discretion pay the lump sum amount entered in the estimate, and the certificate in writing of the Engineer-in-charge shall be final and conclusive against the contractor with regard to any sum payable to him under the provisions of the Clause.

CLAUSE 43: In the case of any class of work for which there is no specification such work shall be carried out in accordance with the instructions and requirements of the Engineer-in-charge.

CLAUSE 44: (1) Whenever any claim or claims for payment of a sum money arises out of or under the contract against the contractor, Cochin Shipyard Limited shall be entitled to withhold and also have a lien to retain such sum or sums firstly from the security deposited with the Cochin Shipyard Limited, secondly if insufficient or if no security taken, to withhold and have a lien to retain to the extent of the claimed amount from any sum found payable or becoming payable to the contractor whether under the same contract any other contract with Cochin Shipyard Limited. Should this sum be not sufficient to cover the full amount recoverable, the contractor shall deposit with Cochin Shipyard Limited, on demand the balance remaining due.

It is an agreed term of the contract that the sum of money or moneys so withheld or retained under the lien referred of above, by Cochin Shipyard Limited will be kept withhold or retained as such by Cochin Shipyard Limited till the claim arising out or under the contract is determined by the arbitrator or by the competent Court or otherwise settled by mutual agreement and that the contractor will have no claim for interest and damage whatsoever on any account in respect of such withholding under the lien referred to supra and duly notified in respect of such to the contractor. For the purpose of this clause, where the contractor is partnership firm or a limited company Cochin Shipyard Ltd. shall be entitled to withhold and also have a lien to retain towards such claimed 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.

(2) Cochin shipyard Limited shall have the right to cause an audit and technical examination to the works and the final bills of the contractor including all supporting vouchers, abstract etc. to be made after payment of the final bill and if as a result of such audit and technical examination any sums found to have been overpaid in respect of any work done by the contractor under the contract or any work done by the contractor claimed by him to have been done by him under the contract and found not have been executed, the contractor shall be liable to refund the around of overpayment and it shall be law full for Cochin Shipyard Limited to recover the same from him in the manner prescribed in the sub-clause (1) of this clause or in any other manner legally permissible and if it is found that the contractor was paid less than what was due to him under the contract in respect of any work executed by him under it, the amount of such underpayment shall be duly paid by Cochin Shipyard Limited to the contractor.

Provided that Cochin Shipyard Limited shall not be entitled to recover any sum overpaid, nor the contractor shall be entitled to payment of any sum paid short where such payment has been agreed upon between the Engineer-in-charge on the one hand and the contractor on the other under any term of contract permitting payment for work after assessment by the Engineer-in-charge.

CLAUSE 45: Any sum of money due and payable to the contractor (including Security Deposit returnable to him) under this contract may be withheld or retained by way of lien by Cochin Shipyard Limited and set off against any claim of the Cochin Shipyard Ltd., for the payment of a sum of money arising out of under any other contractor made by the contractor with the Cochin Shipyard Ltd

It is an agreed term of the contract that the sum of money or moneys so withheld or retained under the lien referred to above, by Cochin Shipyard Limited will be kept withheld or retained as by Cochin Shipyard till the claim arising out of or under the contract is determined by the arbitrator or by the competent Court or otherwise settled by mutual agreement and that the contractor will have no claim for interest and damages whatsoever on this account or on any other ground in respect of any sum of money withheld or retained under this clause and duly notified as-such to the Contractor.

CLAUSE 46: Water required for the work shall be given free of cost by Cochin Shipyard Ltd. Water connection shall be given at a point within 100 meters of the work site. Contractor has to make his own arrangements for tapping and extending the water line to the work site after getting approval from the Engineer-in-charge.

Cochin Shipyard cannot guarantee un-interrupted water supply due to reasons beyond its control. Hence contractor is advised to make suitable arrangements to store water in advance for at least a days work. Contractor shall also take maximum care to avoid wastage of water.

CLAUSE 47: Notwithstanding anything contained to the contrary in any or all of the clause of this contract, where any materials for the execution of the contract are procured with the assistance of Cochin Shipyard Limited either by issue from Cochin Shipyard stocks or purchase made under orders or permits or licenses issued by Cochin Shipyard the Contractor shall hold the said materials economically and solely for the purpose of the contract and not dispose of them without the permission of the Cochin Shipyard and return, if required by the Engineer-in-charge, all surplus or unserviceable materials that may be left with him after the completion of the contractor or at its termination for any reason whatsoever on being paid or credited such price as the Engineer-in-charge shall determine having due regard to the condition of the materials. The price allowed to the contractor however shall not exceed the amount charged to him excluding the storage charge, if any, the decision of the Engineer-in-charge shall be final and conclusive. In the event of breach of the aforesaid condition the contractor shall in addition to throwing himself open to action for contravention of the terms of the license or permit and / or for criminal breach of trust be liable to Cochin Shipyard Limited for all moneys, advantages or profit resulting or which in the usual course would have resulted to him by reason of such breach.

CLAUSE 48: the contractor shall give or provide all necessary superintendence during the execution of the works and all long thereafter as the Engineer-in-charge may consider necessary for the proper fulfillment of the Contractor’s obligations under the contract. The contractor or a competent and authorised agent or representative approved in writing by the Engineer-in-charge (which approval may at any time be withdrawn) is to be constantly on the works and shall give his whole time to the superintendence of the same. If such approval shall be withdrawn by the Engineer-in-charge, the contractor shall as soon as is practicable, after receiving written notice of such withdrawal, remove the agent from the site and shall not thereafter employ him again on the site in any capacity and shall replace him by another agent approved by the Engineer-in-charge. Such authorised agent or representative shall receive on behalf of the Contractor directions and instructions from the Engineer-in-charge or his representatives.

CLAUSE 49: The whole work may be split up between two or more contractors or accepted in part and not in entirely, if considered expedient.

CLAUSE 50: Sale tax or any other tax on materials/ service in respect of this contract shall be payable by contractor and Cochin Shipyard shall not entertain any claim whatsoever in this respect.

CLAUSE 51: Without prejudice to any of the rights or remedies under this contract, if the contractor dies the Engineer-in-charge on behalf of the Cochin Shipyard shall have the option of terminating the contract without compensation to the contractor.

CLAUSE 52: The contractor shall not be permitted to tender for works in Cochin Shipyard Limited if any of his near relative is posted as Accountant or as an Officer in any capacity between the grades of Asst. General Manager, Sr. Manager (both inclusive) in that Office. He shall intimate the names of persons who are working with him in any capacity or are subsequently employed by him any capacity or are subsequently employed by him and who are near relatives to any Officer in the Cochin Shipyard Limited, Cochin. Any breach of this condition by the Contractor would render him liable to be removed from the approved list of contractors of this company.

Note: By the term “near relative” is meant wife husband, parents and grand parents, children and grand children, brother and sisters unless and cousins and their corresponding in-laws.

CLAUSE 53: No Engineer of Gazetted rank or other Gazetted Officer employed in Engineering or Administrative duties in an Engineering Department of the Government of India/Cochin Shipyard Limited is allowed to work as a contractor for a period of two years of his retirement from Government/ Cochin Shipyard service without the previous permission of Government of India/ Cochin shipyard service without the previous permission of Government of India /Cochin Shipyard Limited. This contract is liable to be cancelled if either the contractor or any of his employee is found at any time to be such person who had not obtained the permission of Government of India/Cochin Shipyard Limited as aforesaid before submission of the tender or engagement in the contractor’s service as the case may be.

CLAUSE 54: (i) The contractor shall see that only the required quantities of materials are get issued. Any such material remaining unused and in perfectly good condition at the time of completion or determination of the contract shall be returned to the Engineer-in-charge at a place where directed by him, if by a notice in writing under his hand, he shall so require Credit for such materials will be given at the prevailing market rate not exceeding the amount charged from him, excluding the storage charges levied at the time of issue o materials to him. The contractor shall also not be entitled to cartage and incidental charges or returning the surplus materials from and to the stores where from they were issued.

(ii) After the completion of the work, the theoretical quantity of cement to be used on works shall be calculated on the basis or relevant statement approved by the DGM (Civil Engg.) Cochin Shipyard Limited, showing the quantities of cement to be used in different items of work, over this theoretical quantity of cement shall be allowed a variation upto 5% plus/ minus for works the estimated cost of which as put to tender is more than Rs. 2lakhs but upto Rs. 5lakhs upto 3% plus/minus for works the estimated cost of which put to tender is above Rs. 5lakhs. The difference in the quantity including authorised variations if not returned by the contractor shall be recovered at twice the issue rate including the storage charges, without prejudice to the provision of the relevant conditions regarding return of materials governing the contact. In the event of its being discovered that the quantity of cement used is less than the quantity ascertained as hereinbefore provided (allowing variations on the minus side as stipulated above) the cost of the quantity of cement not so used shall be recovered from the contractor on the basis stipulated issue rates including storage charges and cartage to site.

(iii) The Provision of the foregoing sub-clause shall apply in the case of steel reinforcement or structural steel section except that the theoretical quality of steel shall be taken as the quantity required as per design or as authorised lap pages, plus 5% wastage due to cutting into pieces over this theoretical quantity, plus 5% and minus 4% shall be allowed as variation due to wastage being more or less.

(iv) The provisions made above are without prejudice to the right of the Cochin Shipyard Limited to take action against the contractor or under the condition, of the contract for not doing the work according to the prescribed specifications.

CLAUSE 55: The work (whether fully constructed or not) and all materials, machines, tools and plant, scaffolding, temporary buildings and other things connected there with shall be at the risk of the contractor until the work has been delivered to the Engineer-in– charge and a certificate from him to that effect obtained. In the event of the work or any materials or properly brought to the site for incorporation in the work being damaged or destroyed in consequences of hostilities of warlike operations, the contractor shall when ordered in writing by the Engineer–in–charge remove any debris from the site collect and properly stack or remove in store all serviceable materials salvage from the damaged work and shall be paid at the contractor rates, in accordance with provision of this agreement for the work of cleaning the site of debris, stacking or removed of serviceable materials and for the reconstruction of all work, ordered by the Engineer–in–charge such payments being damaged or destroyed but not already measured and paid for, the compensation shall be assessed by the Engineer–in–charge which shall be binding on the contractor. The contractor shall be paid for the damage, destruction suffered and for restoring the materials at the rates based on the analysis of rates tendered for in accordance with provisions of this agreement. The certificate of the Engineer–in–charge regarding the quality and quantity of materials and the rupees for which they were collected shall be final and binding on all parties this contract.

Provided always that no compensation shall be payable for any loss in consequence or hostilities or warlike operations (a) unless the contractor had taken all such precaution against Air Raid as are deemed necessary by the ARP officer or the Engineer–in–charge (b) for any materials etc. Not on the site of work or for any tools, plant, machinery, scaffolding temporary buildings and other things not intended for the work.

In the event of the contractor having to carry out reconstruction as aforesaid, he shall be allowed such extension of time for its completion as is considered reasonable by the Engineer–in–charge.

CLAUSE 55 A: If the contractor receives instructions from the Cochin Shipyard Limited to insure against War risk, such insurance shall be effected with the life Insurance Corporation of India or with such other Government Agency which might be issuing appropriate cover for the special risk at the cost of the Cochin Shipyard Ltd; and shall be in the joint names of the Contractor and the Cochin Shipyard Limited.

CLAUSE 56: The security deposit should not be refunded till clearance certificate from the Labour Officer is obtained by the contractor.

CLAUSE 57: For the following items of works theoretical requirement of cement will be calculated at the rates given below: -

Cement concrete

1:3:6

Using 40mm metal

221