GENERAL CONDITIONS OF CONTRACT Tender/work Order No. : GSO/ENG/ Dated.___/___/_______ INDEX S. PAGE HEADING NO NO 1. Section – 1 : Definitions 02 2. Section – 2 : General 06 3. Section – 3 : Materials, Labour & Equipment 19 4. Section – 4 : Performance of Work 29 5. Section – 5 : Inspection, Testing & Quality Assurance 42 6. Section – 6 : Measurements & Payments 52 7. Section – 7 : Termination 63 8. Section – 8 : Miscellaneous 68 9. Section – 9 : Arbitration & Alternative Dispute Resolution Machinery 77 10. Section – 10 : Safety Code 80 11. Appendix – I to General Conditions of Contract : Contractors” Labour 85 Regulations 12. Appendix – II to General Conditions of Contract : Model Rules for Labour 91 Welfare 13. Instructions to Tenderers 95 14. Proforma of Declaration of Blacklisting/Holiday Listing 103 15. Equipment Questionnaire 104 16. Experience Questionnaire 105 17. Form of Tender (For Price Bid) 106 18. Form of Tender (For Commercial Bid) 108 19. Information about Tenderer 110 20. Form of Contract 111 21. Form of Bank Guarantee in lieu of EMD 114 22. Form of Bank Guarantee in lieu of Security Deposit/ Initial Security Deposit 117 23. Form of Bank Guarantee to cover Lumpsum Advance (Mobilisation) 120 24 Appendix- III to GCC of Contract: Safety Practices during Construction. 1- 36 Signature, name and office seal with date of Tenderer/Contractor Page 1 of 121 GENERAL CONDITIONS OF CONTRACT Tender/work Order No. : GSO/ENG/ Dated.___/___/_______ GENERAL CONDITIONS OF CONTRACT SECTION 1 DEFINITIONS 1.0.0.1 The following expressions hereunder and elsewhere in the Contract Documents used, unless repugnant to the subject or context thereof, shall have the following meanings hereunder respectively assigned to them, namely : 1.1.0.0 “Acceptance of Tender” shall mean the Acceptance of Tender issued by the OWNER to the CONTRACTOR. And shall include a letter, telegram or fax of acceptance or other notification of award of work ,and a detailed Letter of Acceptance. 1.2.0.0 “Approval” shall mean the written and signed approval of the OWNER or OF engineer-in-Charge or Consultant authorized in this behalf by the OWNER, and with respect to a plan or drawing shall include an approval in Code 2, subject to the limitation(s) specified in such approval. 1.3.0.0 “Approval in Code 2” shall mean an approval to proceed with the work covered by plans or drawings subject to certain limitation(s) as specified in such approval. 1.4.0.0 The “Contract” shall mean the agreement between the parties as derived from the Contract Documents. 1.5.0.0 The “CONTRACTOR” shall mean Individual, agency, Firm or Company (whether incorporated or not) selected by the OWNER for the performance of the Contract and shall include its legal representatives, successors and permitted assigns. 1.6.0.0 The “Contract Documents” shall mean the contract documents as defined in Article 1 in the From of Contract. 1.7.0.0 “Completion” or “Final Completion” shall mean the successful provision of all material and inputs and the successful completion and conclusion of all activities required in all respects to complete the contractual works in accordance with the contact, but shall not include the obligation to rectify defects during the Defect Liability Period. 1.8.0.0 “Completion Certificate” shall mean the Completion Certificate issued by the Engineer-in-Charge in accordance wit the provisions thereof. 1.9.0.0 “Commissioning” of a Plant or Unit shall mean pressing into service the unit(s) equipment(s), vessels, pipeline(s), machinery and systems and sub-systems comprising the Plant, in accordance with the approved Operation manual and as per procedures recommended by the Designer/Process Licensor or Supplier thereof, and approved by the OWNER, after successful trial runs of the Plant/Unit. 1.10.0.0 “Consultant” shall mean the Consultant appointed by the owner for the Project or the Works. 1.11.0.0 “Consumables” shall mean all Items which are consumed in the execution of the work without being directly incorporated in the Work, such as fuel, electricity, water, POL, welding rods, electrodes and utilities. 1.12.0.0 “Defect Liability Period” shall mean the defect liability period as specified in the contract. 1.13.0.0 The “Engineer-in-Charge” shall mean the .Engineer or other officer of the OWNER, Consultant or other organisation for the time being nominated by the OWNER in writing to act as Engineer-in-Charge for the purpose of the Contract Signature, name and office seal with date of Tenderer/Contractor Page 2 of 121 GENERAL CONDITIONS OF CONTRACT Tender/work Order No. : GSO/ENG/ Dated.___/___/_______ or any specific works. 1.14.0.0 “Final Certificate” shall mean the final certificate issued by the Engineer-in- Charge in accordance with the provisions hereof. 1.15.0.0 “General Manager” shall mean the Executive Director, General Manager or other Chief Executive (howsoever designated) of the Project to which the Contract relates, and if there is no such separate Chief Executive, shall mean the Executive Director (if any) or the General Manager, as the case may be, of the Refinery, Unit or Department of the OWNER to which the Project relates. 1.16.0.0 “Guarantee tests” shall mean all tests, undertaken after the Plant goes into operation and has stabilized, for ensuring that the functioning of the Plant meets all guarantees, as regards throughput, quality and magnitude/quantity of output, at the final stage as well as at the stipulated interim stages of operation/process, as well as in respect of consumption of utilities, chemicals and catalysts, etc. 1.17.0.0 “Job Site” shall mean any site at which the work is to be performed by the CONTRACTOR, and shall include a part or portion of the job site. 1.18.0.0 “Manuals” shall mean the Erection arid Installation Manual of the various equipment and machinery forming part of the Work(s) or Plant(s)/Unit(s) as well as the Operation and Maintenance Manuals thereof. 1.19.0.0 “Materials” shall mean all materials, plant, machinery, instruments, components, equipments, sub-assemblies and assemblies, parts, spares and other items or things required for permanent incorporation in the works. 1.20.0.0 “Mechanical Completion”, as applied to a Plant or Unit, shall mean the completion of civil works, erection, aligning and grouting of all mechanical and electrical equipment and piping, hydrostatic and other testing of all storage tanks, vessels, piping etc., all electrical and all utility connections to the equipment, mounting and fixing of all instruments, control systems and connecting them as required, testing and trial runs of all equipment on “no-load” and bringing the Plant to a state of readiness for pre-commissioning. 1.21.0.0 “Notified Claim” shall mean a claim of the CONTRACTOR notified in accordance with the provisions of Clause 6.6.1.0 hereof. 1.22.0.0 “Order” and “Instruction” shall respectively mean any written Order or Instruction given by the Engineer-in-Charge or Site Engineer within the SCOPE of their respective powers in terms of the Contract. 1.23.0.0 The “OWNER” shall mean Indian Oil Corporation Limited, a company incorporated in India and having its registered office at G-9, Au Yavar Jung Marg, Bandra (East), Mumbai-400 051 and shall include its successors and assigns. 1.24.0.0 “Plans” and “Drawings” shall mean and include all technical documentation such as maps, sketches, designs, drawings, plans, details, charges, schedules, tracings, prints, computer outputs, printouts, and manuals, relating to the work forming the subject matter of the contract, including but not limited to those forming part of the tender Documents, Offer Documents, and working drawings and details, together with amendments/ alterations/ revisions/ modifications thereto, as may have been approved by and/or furnished by the OWNER, the Engineer-in-Charge and/ or THE consultant, as well as “As Built” drawings to be submitted by the CONTRACTOR, as required under the contract. 1.25.0.1.1 “Pre-commissioning” shall mean the activities to be taken up before the taking up of Start-up, Commissioning and trial runs of the Plant/Unit, and shall include, without being limited to, all operations such as checking of all systems, subsystems, piping and vessels, flushing with air, water and steam, air-blowing and steam-blowing, system pressure and leak tests, purging with inert gas as Signature, name and office seal with date of Tenderer/Contractor Page 3 of 121 GENERAL CONDITIONS OF CONTRACT Tender/work Order No. : GSO/ENG/ Dated.___/___/_______ required, checking all electrical equipment for earthing, resistances, operability tests and cold run on all operating equipment, vessels and systems individually and in combination, integration of all control systems with one another and with the main control system, and completion of all operations detailed under the head, “COMPLETION OF CONSTRUCTION” in API-700. 1.26.0.0 “Progress Schedule” shall mean the Progress Schedule established by the CONTRACTOR and approved by the Engineer-in-Charge for completion of the work(s) within the time schedule in accordance with the provisions hereof and failing such Progress Schedule, shall mean the Progress Schedule established by the Engineer-in-Charge in accordance with the provisions hereof. 1.27.0.0 “Performance Test(s)” shall mean all tests meant to ensure that the Plant(s)/Unit(s) is/are in all respects in accordance with the requirements of the Contract and that the Plant functions properly and smoothly, in all respects as per the approved design parameters, within the permissible tolerances, and satisfies all the stipulated operating parameters, and will include the Guarantee Tests.