SOUTHERN RAILWAY Divisional Office, Works Branch, . No.U/W.496/I/ 13/2013/ 8 Dt: 25 .03 .14

Letter of Acceptance

K.Karuppasamy, Railway Contractor, Opposite to Railway Station, Vanchimaniyachci

Sir,

Sub: - (BG) Section: Anticorrosive paints to the rail in the main line and all loop lines in between Tirunelveli –Tenkasi stations in SSE/PWay/ Tirunelveli and Sengottai section for a length of 70kms.

Ref: T.No.MDU / 13 / 13 of 12.12.13 (Item No. 8) Tender opened on 22.1.14

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1. a)The tender submitted by you on 22.1.14 for the above work has been accepted by the Competent Authority at the rates as quoted by you for Schedule ‘B’ as below.

SCHEDULE - B (List of works which are not covered in the printed Unified Standard Schedule of Rates - 2011 of Madurai Division)

Sl. App. Unit of Item Description Rate Amount No. Qty. Payment 1 Supply of Bituminous black paint 11200 1 Litre conforming to IS - 9862 - 1981, 80 896000 2 Painting of new rails (Perimeter of the 79940 1 Sqm 19.7 1574818 rails, except gauge face and rail head) Total of Schedule - B 2470818

b) The total approximate value of the contract works out to Rs. 24,70,818/- (Rupees Twenty four lakhs seventy thousand eight hundred and eighteen only). The Security Deposit fixed for the work is Rs. 1,23,541 /- (Rupees One lakhs twenty three thousand five hundred and forty one only)

2. a) The work should be completed within SIX months from the date of issue of this letter of acceptance.

b) The letter of acceptance issued is a binding contract between the Railway Administration and the Contractor and the date of completion will be reckoned from the date of issue of this letter only and therefore, you may please make necessary arrangements to commence the work immediately. 2 3. The letter of acceptance shall also be treated as Work order for the purpose of commencement of work immediately, in consultation with ADEN/ TEN and SE/P/ TEN & SCT

4. This letter of acceptance shall remain operative till the normal agreement is executed after which it will merge with the said agreement.

5(a) EMD Paid vide Indian Bank/TEN DR No: 0008473 of 21.1.14 for Rs.61,000/- (Rupees Sixty one thousand only)

(b). After adjusting the above EMD of 5(a), the Balance Security Deposit is Rs.62,541/- (Rupees Sixty two thousand five hundred and forty one only) and it will be recovered only from the running bill. The recovery should be at the rate of 10% of the bill amount till the full security deposit is recovered.

(c) It shall be noted that, you should submit a Performance Guarantee (PG) amounting to 5% of the Contract value i.e Rs.1,23,541/- (Rupees One lakhs twenty three thousand five hundred and forty one only) in the form of an irrevocable Bank Guarantee or Demand Draft or Deposit receipt, in favour of Sr.DFM/S.Rly/Madurai .It should be furnished within 30(thirty) days from the date of issue of this Letter of Acceptance (LOA) .

Extension of time for submission of PG beyond 30 (thirty) day and upto 60 (sixty) days from the date of issue of LOA may be permitted by the Authority who is competent to sign the contract agreement. However a penal interest of 15 % per annum shall be charged for the delay beyond 30 (thirty) days, i.e from 31st day after the date of issue of LOA .

Failure on your part to submit the requisite PG even after 60 days from the date of issue of LOA, will result in termination of the contract duly forfeiting EMD and other dues, if payable against that contract. In addition to the above you shall also be debarred from participating in re-tender for the above work.

6. It shall be noted that the Price variation will be applicable as per tender condition Clause No: 46A-Price Variation Clause and Variation in Quantities will be applicable as per the conditions available under “Special conditions on Variation in Quantities in works contract’’.

7. Having fulfilled the above requirements, please attend this office within fifteen days from the date of receipt of this letter with requisite PG to execute the agreement.

8. It shall be noted, you should depute qualified experienced Engineer to be available at site all the time during the progress of work to facilitate communication and compliance of the instructions that may be given by the Engineer-in-charge or his representative. The name and bio-data of such Engineer engaged at site may please be furnished to this office before commencement of the work.

9. Income Tax @ 2% (Two percentage only) of the bill amount plus 10% Surcharge of the Income Tax shall be deducted at source from each of the running bills. The rates at which Income Tax would be deducted may however vary according to the notification of the Income Tax Department issued from time to time.

10. Sales Tax at 2% of the bill amount for Civil Works Contract and 4% of bill amount for All other works shall be deducted at source from each of the running bill. The rate of deduction may vary according to the notification of Sales Tax Department issued from time to time.

11.It shall be note that, the conservancy cess charges to be recovered as per clause 59(4) of GCC.

12 . It shall be noted that, this LOA is the due notice for submission of PG and that no further communication will be sent to you reminding for submission of PG. In case of 3 failure to submit PG within stipulated date, action will be taken under Clause 16(4) of GCC, is final and binding.

13. In addition to the above, the other terms and conditions given in the tender document submitted along with your offer will also be applicable and the contract agreement to be signed by you will be replica of the same.

14.In case of failure of the contract at any stage, your contract will be terminated under Clause 62 of General Conditions of Contract and EMD/Performance Guarantee and Security Deposit will be forfeited.

15. Please acknowledge the receipt of this letter of acceptance.

Yours faithfully,

Sd: Sr.Divisional Engineer / South Madurai For and on behalf of the President of .

Copyto: CVO/MAS, Sr.DFM/MDU, ADEN/ TEN, SE/P/ TEN & SCT OS/Budget, WA Acceptance file copy, SSE/Drawing Section, The Labour Enforcement officer, 5 Lady Doak College Road, Madurai-2. The Assistant Labour Commissioner, (Central) 5Lady Doak College Road,Madurai-2.