EE44--E5 CIVIL E5 CIVIL...

For internal circulation of BSNL only

E4E4--E5 CIVIL E5 CIVIL ((TECHNICAL)TECHNICAL)

Important BSNL Contract ClausesImportant BSNL Contract Clauses(Session(Session--2) 2)

WELCOME• This is a presentation for the E4-E5 Civil Technical

Module for the Topic: Important BSNL Contract Clauses

Session-2

• Eligibility: Those who have got the Upgradation from E4

to E5.

• This presentation is last updated on 21-4-2011.

• You can also visit the Digital library of BSNL to see this

topic.



AGENDA

Important BSNL Contract Clauses.

Provisions under various Contract Clauses.

Actions Thereof.

Clause 13

Clause 13:-Foreclosure of Contract:-(1)Foreclosure of contract due to abandonment or reduction

in scope of work.

(2)The contractor shall have no claim for payment or

compensation for reduction in scope of work; changes in

drawings, specifications, designs or any alternations as desired

by Engineer –in- Charge.

(3)Even in case, work is abandoned, this clause is applicable

thus no compensation payable.


CLAUSE 14 & 15

Clause 14:- Suspension of work by

BSNL

It could be either due to default of contractor or due to

for reasons other than this, then specific provisons

exist in the clause for the same.

CLAUSE 15:-Inspection and supervision of work:-

Work open to inspection by QA/CTE etc & contractor

to be present for receiving instructions.


CLAUSE 16

Clause 16 Rectification of defects:-

(1)If either E-in-C or the Sr. DDG(BW) or QA or CTE finds that

any work has not been executed properly as per contract, the

contractor shall (which shall be intimated to contractor within

six months of the completion of the work not withstanding

that the same may have been passed, certified and paid for)

forthwith rectify the work.

(2)If contractor fails, then get it done at his risk & cost &

decision of E-in-C will be final & binding.

(3) Provision of acceptance of item at Reduced rates is also

there in this clause.


CLAUSE 17

Clause 17:-Contractor liable for defects/

damages during maintenance period:-

(1)If any damage happens to the work while in progress

from any cause or any faults appear in the work within 6

months for the contract value up to Rs.15 Lakhs

excluding road work and 12 months for the work more

than Rs.15 Lakhs, from the date of completion of work,

the contractor shall make the same good at his own

expense.

(2)The S.D. shall not be refunded before the expiry of the

above maintenance period, subject to the condition That

final bill is prepared and passed whichever is later.For internal circulation of BSNL only

CLAUSE 19

Clause 19 Labour Laws Compliance by Contractor:-

(1)Contractor to hold valid Labour license till work is

completed.

(2)Labour reports to be given on 4th & 19th of every month.

Penalty at a rate of Rs 200 for each default may be levied.

(3)Contractor to keep bldg. free from unauthorised occupancy

till it is taken over by deptt. Failure to enusre means penalty

upto 5% of tender value by SE.


CLAUSE-25

Clause-25 Settlement of Disputes & Arbitration:-

What is a Dispute ?

(1) If the contractor considers that he is entitled to any extra

payment over and above the amounts admitted to be paid by

the BSNL.

(2)If the contractor wants to dispute the validity of any

recoveries made or proposed to be made from the contract.

The disputes which can be referred to arbitrator?

(1) The meaning of the specifications, design, drawings and

instructions.


CLAUSE-25 Contd..

(2)The quality of workmanship or materials used on the work.

(3) Any other question, claim, right, matter or thing whatsoever

in any way arising out of or relating to the contract,

designs, drawings, specifications, estimates, instructions,

orders. Arising during the progress of the work or after the

cancellation, termination, completion or abandonment.

Process of settlement of dispute:-

(1)The contractor shall give notice in writing of his claim to the

E-in-C within 30 days from the date of any disallowance.

(2)The contractor shall be deemed to have extinguished all his


CLAUSE-25 Contd..

rights in respect of any claims not notified to the E-in-C within

30 days.

(4)If the contractor is not satisfied with the decision of the

E- in-C, he may within 15 days of the receipt of the

decision of the E-in-C submit his claims to the conciliating

authority along with all details.

Conciliation Proceedings:-

(1)Conciliatory Authority-CE for NIT’s of powers of CE(C). SE

for NIT’s of powers of SE/EE/SDE.

(2)The party initiating conciliation shall send to the other party

a written invitation to conciliate.


CLAUSE-25 Contd..

(3)Conciliation proceedings shall commence when the other party

accepts in writing the invitation to conciliate.

(4)If the other party rejects the invitation, or does not reply within

30 days, there will be no Conciliation Proceedings.

(5)Settlement agreement [ it has same effect as of arbitral award]

shall be drawn, if both parties are agreeing to settle the

dispute as per formulated terms of Conciliator.

(6)If a settlement does not appear possible, the Conciliator, after

consultation with the parties shall terminate the Proceedings .

(7) On failure of Conciliation Proceeding, the party, which initiated

the Conciliation shall, within a 30 days of termination


CLAUSE-25 Contd..

give a notice to the Chief Engineer for appointment of

arbitrator.

Arbitration Proceedings:-

(1)The party invoking arbitration shall give a list of disputes

with amounts claimed in respect of each dispute along-

with the notice for appointment of arbitrator.

(2)The CE shall appoint a sole arbitrator within 30 days of

receipt of notice.

(3)The arbitration shall be conducted in accordance with the

provisions of the A & C Act 1996.

(4)The arbitrator shall adjudicate on only such disputes which

are referred to him by the appointing authority.


CLAUSE-25 Contd..

(5) Arbitrator shall give separate award against each claim

referred to him.

(6) The arbitrator shall give reasons for the award for each dispute

referred to him.

(7) If any fees are payable to the arbitrator these shall be paid

equally by both the parties.

(8) Arbitrator shall be deemed to have entered on the reference

on the date he issues notice to both parties, calling

statement of claims and counter statement of claims.

(9) The venue of arbitration shall be fixed by arbitrator.

(10) The cost of reference and the award shall be as per the

discretion of the arbitrator.


CLAUSE 28

CLAUSE 28:-Action where no specifications are

specified.

Action in works, where specifications are not

specified Then Follow This Sequence:-

(1)BIS specifications.

(2)Manufacturer’s specifications.

(3)District specifications.

(4)As per directions of E-IN-C.


Clause 29

Clause 29 :-Lien/Withholding sum due

from contractor:-

(1) Lien and withholding of contractor’s payments in

respect of sum due from the contractor as per this

clause.

(2) Engineer – in - Charge is Competent to withhold

contractor ’s Payment/S.D.--- for payments/claims due

from him subject to final decision of arbitrator/courts.

Clause 29A :-Lien in respect of claims in other

contracts Payments can be withheld (lien kept) in

respect of claims, in other contracts also.


Clause 31

Clause 31 Water and Power Supply :-

(1)Contractors shall make his own arrangement for water

and power supply and nothing extra shall be paid.

(2) He will submit No-dues certificate in the last.

Clause 31 A Departmental water/power supply:-

(1) If Departmental water supply is given for work:-1%

water charges on gross amount of work done shall be

recovered.

(2) Similarly contractor to install sub meter and extend

power supply from tapping point & cost will be recovered

from his bills.


CLAUSE 36

CLAUSE 36 Employment of Technical Staff and

employees:-

(1) The technical representative and/or the contractor shall be

actually available at site on at least 2 working days,

every week.

(2)There shall be no objection if the representative/agent

looks after more than one work and not more than three

works at the same station.

(3)Further if the contractor fails to appoint a suitable

technical representative, the E-in-C shall have full powers

to suspend the execution of the work until such

date.


CLAUSE 36 Contd..

(4) Contractor to submit Certificates with every bill.

(5) If the contractor who himself has such qualifications,

it will not be necessary for the said contractor to appoint

such a principal technical representative but the

contractor shall designate and appoint a responsible

agent to represent him and to be present at the work

whenever the contractor is not in a position to be

present.

All the provisions applicable to the principal

technical representative under the Clause will also

be applicable in such a case to contractor or his

responsible agent.For internal circulation of BSNL only

CLAUSE 36 Contd..

Employment of Technical staff by contractor shall be as

per following:-

Works costing Technical Staff

(1)More than Rs. 5.0 lacks but less--- Diploma in Civil Engg.

than Rs. 10.00 lacks.

(2)Rs. 10 lacks and above but ----B.E. Or Retired A.E( with

less than Rs. 60.00 lacks D.C.E.)

(3)Rs. 60.00 lacks and above ----Pr. Tech. Representative of

organization should be minimum Graduate Civil Engineer

with ________ Years minimum experience or Retired E.E.

(at least with D.C.E.).Experience should be decided by NIT

issuing authority.


CLAUSE 36 Contd..

Contractor before commencement of work shall give the Name,

Age, Experience, Qualification, Address, and Certificates for

Engineers/Technical staff employed for the work. If contractor

himself is a qualified engineer-not necessary to employ site

engineer.

Recovery for not employing --a) Rs.4000/- month

Site Engineer for Graduate Engineer.

b) Rs. 2000/- month

for Diploma holder.


CLAUSE 36 Contd..

CLAUSE 42:-Recovery for inadequate consumption of

Materials:-

As per Schedule ´F´

Return of Material & for Excess Materials.

Store materials issued to contractor (cement, steel etc. )

have to be returned by the contractor after completion of work.

For theoretical calculations of materials - Variation in

quantities allowed as per Schedule F.

Cement :

For works not more than Rs. 5.0 lacs - 3% minus

For works more than Rs.5.0 lacs - 2% minus


CLAUSE 36 Contd..

Steel reinforcement & Sections:- 2% minus.

(1)In case of steel 3% wastage due to cutting into

pieces is (on plus side) allowed for calculating

theoretical quantities.

(2)For the balance materials, if not returned by

the contractor, recovery at the rate specified in

schedule F is made.


CLAUSE 45

CLAUSE 45:- Release of S.D. After Labour Clearance:-

(1)Contractor produces a clearance certificate from the

Labour Officer.

(2) If no complaint is pending, on record till after 3

months after the completion of the work and/or no

communication is received from the Labour Officer to

this effect till six months after the date of

completion, it will be deemed to have received the

clearance certificate and the Security Deposit will be

released, if otherwise due.


CLAUSE-46

CLAUSE-46 Insurance:-

Main Provisions:-(1)The Contractor shall at his own cost

take insurance in the joint names of the BSNL and

the contractor.

(2)With any of the subsidiary of the GIC of India.

(3)To cover for all time during contract i.e. Stipulated,

extended and the defect liability period.

(4)The contractor shall submit the insurance policies to the

E in-C within 1 week of signing of the agreement along

with the receipt of premium.


CLAUSE-46 Contd..

(1)Contractor’s All Risks:-

The contractor shall insure the work for a sum of

Contract value against ALL RISKS claims,

proceedings, loss or damages, costs, charges and

expenses from whatsoever cause arising out of or

in consequence of the execution and maintenance

of the work for which the contractor is responsible

under the contract.


CLAUSE-46 Contd..

(2)Workman Compensation & Employers Liability

Insurance:-

(1)This insurance shall be effected for all the

contractor’s employees engaged in the

performance of the contract

(2)The BSNL shall not be liable in respect of any

damages or compensation payable at law in

respect of or in consequence of any accident or

injury to any workman or any other person in the

employment of the contractor .


CLAUSE-46 Contd..

(3)Third Party Insurance.:-

(1)Against damages or injuries of BSNL Property and

Employees where he is working.

(2)Against damages to BSNL Properties, or any third party

occurred during movement of T&P and Materials.

(3)Contractor should indemnify the BSNL against all

claims, compensations under the provisions of

Payment of Wages act, Minimum wages act,

Employer’s Liability act, The Workman’s

Compensation act, Industrial Dispute act and Maternity

Benefit act.


CLAUSE-46 Contd..

(4)Remedy on the contractor’s failure to insure:-

If the contractor fails to keep in force the insurance

referred, E-in-C may keep in force any such

insurance and pay such premiums and deduct the

amount so paid from the contractor.



Date post:	21-May-2020
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