Section-II

SPECIAL CONDITIONS OF CONTRACT

Outsourcing of Operation and Maintenance activities of 765/400 kV

transmission lines of Powergrid Parli Transmission Limited(PPTL)

1.0 General Information

1.1 Power Grid Corporation of India Limited (A Govt. of India Enterprise) with its
registered office at B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi- 110
016 (hereinafter referred to as ‘POWERGRID’/ ‘Owner’/Employer’) invites bids
from eligible bidders for Outsourcing of Operation and Maintenance
activities of 765/400 kV transmission lines of Powergrid Parli
Transmission Limited(PPTL) on Domestic Competitive Bidding basis.

1.2 The requirements condition, appendices etc., stated in Volume II shall apply to and
shall be considered to supplement this Special Conditions of Contract (SCC). In
case of any discrepancy between the provisions of SCC and these Volumes of, the
provisions of SCC shall prevail.

1.3 Unless brought out clearly, the bidder shall be deemed to conform strictly to
bidding documents. All deviations from the specifications shall be clearly brought
out in the respective schedule of deviations.

1.4 The word ‘POWERGRID’ or ‘Owner’ or ‘Employer’ wherever appearing in the

contract documents shall mean ‘Power Grid Corporation of India Ltd.

1.5 The Bidder is expected to examine all instructions, forms, terms, specifications and
other information in the Bidding Documents. Failure to furnish all information
required by the Bidding Documents or submission of a bid not substantially
responsive to the Bidding Documents in every respect will be at the Bidder’s risk
and may result in rejection of its bid.

1.6 Before proceeding with the bidding process of the aforesaid work under the subject
package, the bidder shall fully familiarize himself with the site conditions. It shall
be responsibility of the bidder to arrange all inputs required for detailed
engineering and execution. The bidders are advised to visit the sites, collect all
necessary inputs and acquaint themselves with the topography, infrastructure etc.
The Contractor shall be fully responsible for providing all equipment, materials,
system and service specified or otherwise which are required to complete the
aforesaid works under the package.

1.7 Bids from Joint Venture is not permitted for the instant tendering package.

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1.8 The contractor shall not sublet any portion of the contract

2.0 Scope of Work

2.1 The scope of work shall be as indicated in the Contract Document.

3.0 Engineer – in – Charge

Engineer-in-charge(s) for the respective line sections shall be DGM, Parli SS .

Engineer-in-charge(s) may authorise any of his officers as his representative for the
execution of the subject work.

4.0 Location
The work shall be carried out near to POWERGRID PARLI SS of POWERGRID
PARLI TRANSMISSION LIMITED.

Power Grid Corporation of India Limited,

400/220 KV Parli Substation
Village- Shepwadi, Taluka-Ambajogai
Dist. Beed (Maharashtra) – 431 517

5.0 Price Basis

5.1 The rates indicated shall be firm throughout the currency of the contract and shall
not be subject to any Price Adjustment.

6.0 Taxes and Duties

6.1 The charges indicated for services to be performed under the contract shall be
exclusive of GST.

7.0 Contract Price

7.1 For the scope of service as given in BOM and shall be as per the rates quoted by the
bidder in GeM.

7.2 E-Reverse auction is applicable & governed as per terms & condition
available in GeM.

8.0 Contract Duration

8.1 The period of Contract shall be 3 (Three) Years from the effective date of contract.

8.2 If Services provided by contractor are found to be satisfactory, the contract may be
extended for a further period of (02) Two Year on the basis of performance
evaluated by the Owner and subject to acceptance of extension by Contractor with
an escalation of 3.51% per year is applicable on contract price beyond 3 years of
contract period. However, this will be the sole prerogative of Owner and contractor
shall have no right to ask for extension.

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A period of 15 (Fifteen) days shall be provided to successful bidder for

mobilization. The effective date of the contract shall be after completion of the
mobilization period of 15 (Fifteen) days from the date of issue of Notification of
Award (NOA)/ Letter of Award (LOA).

During the mobilization period, the contractor shall obtain/apply for all the
requisite insurance policies, licenses/clearances from appropriate authorities such
as Labour Authorities, Provident Fund Commissioner etc. A copy of all such
documents will be provided to Owner before commencement of work. After
completion of mobilization period, work shall be started immediately at site. The
contractor shall not be allowed to work without having labour license, electrical
license, workmen compensation, insurance policy etc.

9.0 Terms of Payment

9.1 Contractor shall submit Invoice to Site-in-charge/ office-in-charge in the first week
of every month for services rendered during the previous month along with the
applicable GST and the same shall be paid by POWERGRID within 15 days from
the date of invoice, after certification by Site -In-Charge / officer-in-charge.

9.2 All the payments to be made directly to Contractor under the contract shall be
made by POWERGRID through bank/electronic payment mechanism (e-payment)
for which necessary details shall be tied up during execution of the contract.

9.3 Applicable Income tax, as per the rules in India, shall be deducted at source from
the above payments and only the net payment shall be released. Necessary Tax
Deducted at Source (TDS) certificate shall be issued to you.

9.4 The bills are required to be submitted to the Site -In-Charge/Officer-in-charge at

respective site, for verification and processing. Following shall also be submitted by
the Contractor along with the bill

(i) Actual deployment of personnel & their attendance;

(ii) Proof of the payment by Contractor to its employed personnel for that month
through account payee cheque/ ECS/ RTGS only and
(iii) Challan/ receipt for deposit of PF, ESI and GST Identification No. (GSTIN) with
concern authorities and certificate towards compliance of other statutory provisions
for the previous months along with copy of Form 12A submitted by him to the PF
authority and Form 5, i.e. Return of ESI contribution.

However, with the bill for the first month, certificates (except GSTIN) mentioned at (ii) &
(iii) above shall not be applicable. Contractor has to deduct and submit PF and ESI
compulsorily for all the employees deployed by him irrespective of statutory requirements

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(i.e. even if total Number of employees deployed by him are less than 20).

9.5 The payment will be released by F&A department at POWERGRID, Nagpur after
certification by the Engineer-in-Charge.

9.6 The first payment under the Contract shall be released only after submission of
following documents by the Contractor

(a) Unconditional acknowledgment of Notification Of Award/ Brief LOA

(b) Signing of Contract Agreement.
(c) Statutory Insurance policies/certificate’s.
(d) Contract Performance Guarantee.

9.7 POWERGRID may verify from EPF/ESI authorities, the details/ status of payment
made by the Contractor, before making payment of the last bill of the Contractor.
In case, the information furnished by the Contractor is found to be incorrect,
POWERGRID shall take appropriate action against the contractor.

9.8 The Contractor shall promptly make payment to Regional Provident Fund
Commissioner in respect of provident fund contribution of Contractor and the
amount deducted from salary/wages of its employed personnel towards their
contributions to Provident Fund. Contractor shall obtain PF/ESI code for himself
and all its employed personnel for remittance/deposit of PF/ ESI deductions.
Further. Contractor shall fulfil all other statutory requirements.

9.9 The payment shall be regulated as per accepted & awarded rate only. Contractor
shall not be entitled to any extra payment compensation or remuneration relating to
work done during unfavourable weather or relating to any special arrangements
made to the work as per the schedule of items.

9.10 No extra payment shall be made to the Contractor for working on holidays and
during odd hours.

9.11 No advance payment shall be admissible under any circumstances whatsoever.

10.0 BTS (Bill Tracking System)

10.1 Prior to submission of bills in physical form, the Supplier shall submit its bills using
POWERGRID’s Vendor Bill Tracking System as per procedure detailed herein
below. Further, the Supplier may also track the status of its bills using
POWERGRID’s ‘On-line Vendor Bill Tracking System’. To use this system the
Supplier is required to get itself registered once online at POWERGRID’s ERP
Portal with the link URL ([Link] Once registered,
the Supplier may track status of bills submitted, passed and paid by POWERGRID’s
Corporate Centre and Regional Office(s) under this Contract and other Contracts

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awarded on it by POWERGRID by following the method detailed herein below:

10.2 Once registered, the Supplier can log-in to POWERGRID’s Vendor Bill Tracking
System (BTS) with Vendor Log-In ID and Password.

10.3 After login as at (a) above, Supplier is required to make the entry on
POWERGRID’s ERP Portal under the tab “Submit New Invoice” and shall fill all
details along with the MSE status. Upon submission, a 16 digit unique BTS number
will be generated and the Supplier will receive an automated e-mail forwarding the
unique BTS number.

10.4 The physical bills alongwith printed copy of e-mail received from BTS (unique BTS
number) shall be submitted by the Supplier.

10.5 On receipt of physical bill, concerned POWERGRID’s official shall online

acknowledge the receipt of bill. This action will trigger an automated mail to the
Supplier intimating that the physical copy of the bill has been received and is under
verification / processing. However, on receipt of incomplete bill and/or non-
receipt of physical bill by POWERGRID official, the incomplete bills/ digital entry
in BTS (as the case may be) shall be returned to the Supplier by POWERGRID,
which can be viewed under the tab “Invoice Returned”.

10.6 The day the payment is made, a mail stating the “Bill number, net payment amount
and details of the bank from where the payment has been made” will be sent to the
Supplier.

10.7 The status of Bill submitted by the Supplier can be checked through the BTS
number under tab “Invoice Submitted”.

11.0 Quantity Variation

Not applicable

12.0 Contract Performance Guarantee

12.1 The Contractor shall submit Contract Performance Guarantee (CPG) as a guarantee
towards the faithful performance of the Contract in any of the following forms:

(a) Po-rata deduction at the rate of 10% from the bills of the contractor (Contractor)
shall be made towards Security Deposit. Or

(b) Alternatively, the contractor (Contractor) may submit Bank Guarantee equal to
three percent (03%) of the Contract Price with format being followed in
POWERGRID from (a) by a Public Sector Bank located in India, or (b) a Scheduled
and commercial Private Indian Bank as per list mentioned below only in favour of
the POWERGRID, within 28 days from the date of Notification of Award. The Bank
Guarantee shall be valid up to ninety (90) days after the date of completion of

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Work.

List of Eligible Scheduled Commercial Private Indian Banks

1. Axis Bank Limited
2. Development Credit Bank Limited
3. Federal Bank Limited
4. HDFC Bank Limited
5. IndusInd Bank Limited
6. ING Vysya Bank Limited
7. Karnataka Bank Limited
8. Karur Vysya Bank Limited
9. Kotak Mahindra Bank Limited
10. Ratnakar Bank Limited
11. South Indian Bank Limited
12. Yes Bank Limited
13. ICICI Bank Limited

12.2 Bank Guarantee towards CPG shall be returned to the Contractor on successful
completion of the works under the Contract.

12.3 No interest shall be payable to the Contractor against Security Deposit/CPG.

12.4 Forfeiture of Security Deposit / CPG:

In case the contractor fails to carry out the work or perform or observe any of the
conditions of the contract/ letter of award or the contractor terminates the contract
as per 22.0 below for the default not attributed to POWERGRID, the BG towards
CPG shall be encash without prejudice to any other right or remedy of
POWERGRID to which it is entitled.

13.0 Liquidated Damages

13.1 Insufficient Manpower: Contractor to ensure availability of the manpower as per

the minimum manpower requirement to manage the Operation & Maintenance
efficiently. In case of resignation, absconding of the manpower from their duties,
contractor should bring the same in notice of the Owner within 4 days of incident
and should arrange a suitable replacement within one week.

The Manpower deployment shall be 100% of the minimum Man-power as defined

at clause 2.0 in Scope of Work.

Total presence required in a month for all personnel: 26 days

Mandatory presence required in a Month for all personnel: 24 days

Failing Mandatory presence required in a Month, proportionate deduction for the

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relevant month shall be applicable as per table below:

Sl. No. Description of manpower Deduction in INR per day per person on
non-deployment less than Mandatory
presence

1 Site In-charge 4,000

2 Engineer 2,400

3 Junior Engineer 2,000

4 Fitter/Technician 1,400

Absences of personnel for any reasons shall be duly made up by deploying alternate staff
on a best endeavor basis. Contractor to arrange a suitable replacement against the staff
member going to avail a planned leave more than 10 Days in succession in a month.

Routine patrolling of transmission lines shall cover patrolling of transmission lines

under the project as per the technical specifications. Contractor has the obligation to
complete the incomplete patrolling activity in the next month schedule and same shall be
included in calculation of Maintenance Activities compliance.

Contractor is expected to complete 100% of patrolling of lines as per the schedule given
in technical specification. The liquidated damages (LD) shall be imposed as per table
below.
S. No. KPI Desired level Penalty

1 Completion of 100 % Penalty of 0.5% of the

patrolling of monthly bill for every
transmission lines as per 1% less achieved limited
the schedule given in to 10% of monthly bill. *
technical specification

* Amount withheld against shortfall in Monthly Patrolling activity completion in previous month
shall be payable along with the monthly bill in which the pending patrolling is completed.

Incentive/ Dis-incentive for Annual Availability:

Contractor shall be responsible for effective & efficient operation and maintenance of the
Assets and scope of work so as to minimize forced outages and for ensuring the
availability and reliability of assets as per Owner expectations. Incentive/Dis-Incentive

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shall be as per below:

The Contractor shall be required to achieve the ‘Target Annual Availability’ of not less
than 99.0%, during each financial year. The Contractor shall be entitled for incentive for
increase in Availability over the Target Annual Availability Value (99%). However, the
said incentive shall be limited to an overall Annual availability of 99.75% and no
incentive shall be paid over and above 99.75%. The incentive shall be calculated as per
the formula mentioned below:

Incentive = 0.02 * Annual Contract Price * (Actual Availability – 99%).

The incentive shall be disbursed to the Contractor annually. The Contractor shall be
similarly dis-incentivized if the annual availability falls below the Cut off value of
Annual Availability of 98.5% computed as per the formula mentioned below:

Dis-incentive = 0.02 * Annual Contract Price * (98.5% – Actual Availability)

The dis-incentive shall be applied for availability loss on account of outage attributable
to Contractor’s scope. However, the disincentive shall be limited to maximum of 5% of
the annual contract price.
14.0 Defect Liability Period
14.1 Defect Liability period shall be NIL.

15.0 Cyber Security:

Contractor’s manpower shall not indulge in unauthorized access of the Owner’s
PCs /Workstations.

16.0 The photographs taken by contractor during patrolling/ maintenance activities and
drawings, specifications, diagrams, technical, operational & other information
provided by owner shall not be shared by contractor with any Agency/ person
other than that authorized by Employer.

17.0 The Contractor shall be responsible for the care and custody of spares during
handling.

18.0 Insurance
18.1 Insurance policy as per Workmen Compensation Act shall be taken by the
Contractor for its employed personnel for the work, as applicable. Workmen
compensation Insurance policy shall be taken by the contractor in the joint name
with POWERGRID as principal employer and shall be project/ site specific. The
Contractor shall also be responsible for compliance of all the provisions under
Workmen Compensation Act and shall furnish a copy of the insurance policy to
POWERGRID before commencement of work.

18.2 The Contractor at his cost shall arrange, secure and maintain all insurance as may

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be pertinent to the works and obligatory in terms of law against all perils and the
responsibility to maintain adequate insurance coverage at all times during the
period of contract shall be of the Contractor alone. The Contractor’s failure in this
regard shall not relieve him of any of his contractual responsibilities and
obligations.

18.3 The perils required to be covered under the insurance shall include all risks, but not
limited to fire and allied risks, miscellaneous accidents, workman compensation
risks, loss or damage in transit, theft, pilferage, riot and strikes and malicious
damages, civil commotions, weather conditions, accidents of all kinds etc. The
Contractor shall be responsible for the safety and security of the employees of the
Contractor & his Sub-contractors throughout execution of the works.

18.4 In the event of there being any increase of workmen compensation insurance
premium under any law or any additional or new liability under the Employees
laws being imposed on the contractor after the date of submission of the tender, the
additional expenditure incurred by the Contractor shall be borne by him and no
claims shall be entertained by POWERGRID on any account.

18.5 All costs on account of insurance liabilities covered under the Contract will be on
Contractor’s account and will be included in Contract Price.

18.6 In absence of valid Workmen compensation Insurance policy, compensation as

decided by the labour commissioner/authority shall be payable by the contractor in
case of any accidental death/injury. POWERGRID shall not be liable for any such
payments. In the event of failure on the part of the Contractor to deposit the
compensation with the concerned labour authorities, within the stipulated period of
one month from the date of accident (if any), POWERGRID shall take necessary
action to deposit the same with the concerned authorities and shall recover/ adjust
the amount deposited from the bills submitted by the contractor anywhere in
POWERGRID.

18.7 The contractor shall take adequate Group Insurance and Workman Compensation
as per act applicable for the said work for its deployed manpower during execution
of contract. The expenditure incurred towards premium for such policies shall be
borne by the contractor without any additional cost to the Owner. It shall be
obligatory on the part of the contractor to provide a copy of group insurance/
Workman Compensation policy for the manpower deployed before commencement
of work to the Engineer In-¬Charge of Owner. The above policies should be valid
throughout the duration of the contract.

18.8 The Contractor shall ensure that all legal dues, including Employees Compensation
against workmen Compensation Policy, is paid to the legal heir of the
deceased/injured within the time frame as per Employee (Workmen)
Compensation Act. If Contractor failed to deposit the Compensation amount to the

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concerned Compensation Commissioner, equivalent amount shall be with-held

from running bills of Contractor and submitted the same to Commissioner ate office
without delay.

18.9 Erection All Risk Policy/Contractor All Risk Policy:

The policy should cover all physical loss or damage to the facility at site during
storage, erection and commissioning covering all the perils as provided in the
policy as a basic cover and the add on covers as mentioned at Sl. No. (a) below.

The Contractor shall take the policy in the joint name of Owner and the
Contractor. All these policies shall indicate Owner as the beneficiary. The policy
shall be kept valid till the date of the Operational Acceptance of the project and
the period of the coverage shall be determined with the approval of the Engineer
In-Charge of Owner

a) The following add-on covers shall also be taken by the Contractor:

Third Party Liability cover with cross Liability within Geographical limits of India
as on ADD-on cover to the basic EAR cover:

The third party liability add-on cover shall cover bodily injury or death suffered
by third parties (including the Owner’s personnel) and loss of or damage to
property (including the Owners’ property and any parts of the Facilities which
have been accepted by the Owner) occurring in connection with supply and
installation of the Facilities.
If during the execution of Contract, the Owner requests the Contractor to take any
other add-on cover(s)/ supplementary cover(s) in aforesaid insurance, in such a
case, the Contractor shall promptly take such add-on cover(s)/ supplementary
cover(s) and the charges towards such premium for such add-on cover(s)/
supplementary cover(s) shall be reimbursed to the Contractor on submission
documentary evidence of payment to the Insurance company. Therefore, charges
towards premium for such add-on cover(s)/ supplementary cover(s) are not
included in the Contract Price.

18.10 Automobile Liability Insurance: The Contractor shall ensure that all the vehicles
deployed by the Contractor (whether or not owned by them) in connection with the
scope of work are duly insured as per RTA act. Further the Contractor may also
take comprehensive policy (own damage plus third-party liability) of each
individual vehicle deployed in the project on their own discretion in their own
name to protect their own interest.

19.0 Liability for Accidents and Damages

19.1 Contractor shall be fully responsible for safe handling of the material/equipment.
Any loss or damage during the above operations will be to the account of the

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contractor. POWERGRID shall have the right to deduct the amount or estimated
damages on loss from the bills of the contractor

19.2 If the damage/theft is caused to the POWERGRID asset/ property/office

equipment/ Tools and Plants by the personnel employed by the contractor, than
the contractor shall bear the cost of repair or replacement, as per direction of
Engineer-in-Charge. Further in case of any miss happening with the employed
personnel during the contract period POWERGRID will not be responsible for
same.

19.3 The Contractor shall be responsible for any compensation whatsoever to its
employed personnel in case of any omissions on the parts of its employed
personnel and POWERGRID shall not be held responsible for such omissions of
workers.

20.0 Compliance with Labour Regulations

The Contractor shall provide and employ skilled, semi-skilled and unskilled labor
as is necessary for the proper and timely execution of the Contract. Labour having
“Recognition of Prior Learning” (RPL) Certification (under Pradhan Mantri
Kaushal Vikas Yojana (PMKVY)) can also be employed by the Contractor.

The Contractor is encouraged to use local labor preferably from weaker sections of
society particularly SC & ST persons, that has the necessary skills.

20.1 Contractor shall in respect of Employees employed by them comply with all labour
laws applicable to the personnel engaged for carrying out work including the
registration under following as applicable to respective sites such as Contract
Labour (Regulation & Abolition) Act 1970 (37 of 1970) with State Amendments
along with The Contract Labour (Regulation & Abolition) Central Rules 1971; The
Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Services) Act, 1979 (30 of 1979) along with The Inter-State Migrant Workmen
(Regulations of Employment and Conditions of Services) Central Rules,1980. The
agency should submit the applicable aforesaid licenses with first RA Migration
Certificate wherever applicable.

POWERGRID shall bear no liability whatsoever towards any violation by the

contractor in this regard.

20.2 The Salient features/ Instructions regarding compliance of some major Laws by the
Contractor are given as under. However, the Contractor is bound to comply with
all the provisions of applicable labour laws even though not expressly mentioned
herein.

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a) Employees Compensation Act 1923: The Act provides for compensation in case of
injury by accident arising out of and during the course of employment.

i) The Contractor shall be liable to deposit the compensation as prescribed under this
Act with the Commissioner of Workman Compensation within one month from the
date of accident, in case of fatal injury.

ii) The contractor shall be liable to disburse the compensation as prescribed under this
Act within the stipulated time frame, in case of non-fatal injury.

iii) The Contractor shall bear all the expenses incurred in connection with the medical
treatment of the workers.

iv) The Contractor shall make a payment of Rs.15,000/- towards funeral expenses and
bear the expenditure towards sending the dead body to the home town of the
deceased or the actual place of cremation.

v) The Contractor shall take an Insurance policy covering for risks under this Act at
the time of commencement of contract and submit proof of the same to the
Engineer-in-charge of POWERGRID, failing which, the Contractor shall not be
allowed to commence the work.

b) Employees Provident Fund and Miscellaneous Provisions Act 1952:

i) The contractor shall be required to obtain a PF code from the concerned PF
authority immediately after award of the contract and submit documentary proof to
the effect to POWERGRID.

ii) The contractor shall ensure opening an individual Provident Fund account for the
worker engaged and submit documentary proof to the effect to POWERGRID.

iii) The contractor shall remit monthly provident fund contribution of employees and
employers within 15 days from the date of disbursement of wages.

iv) The contractor shall submit a copy of Form 3A submitted by him to PF Authority, to
POWERGRID.

v) The contractor shall submit a copy of Form 12A submitted by him to the PF
Authority on monthly basis (details of PF deposited/deducted in respect of
employees and employers to the Engineer-in-charge of POWERGRID.

vi) The Contactor shall submit a copy of Form 6A submitted by him to the PF
Authority on an Annual basis/ on expiry of contract, to POWERGRID.

c) Contract Labour (Regulation & Abolition) Act 1970:

i) The Contractor shall obtain labour license under the provisions of the Act.

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ii) The Contractor shall display Notice in English & Hindi of Rates of Wages, Hours of
Work, Wages Period, Date of payment of wages, Name & Address of the Inspector,
Date of payment of unpaid wages.

iii) The Contractor shall submit the Return regarding commencement and completion
of contract in Form VIA.

iv) The Contractor shall maintain Register of workmen employed by him in

POWERGRID in Form XIII.

v) The Contractor shall issue an Employment Card to the workers engaged by him in
POWERGRID in Form XIV, within 3 days of employment of the worker.

vi) The Contractor shall issue Service Certificate in Form XV to the workmen whose
services have been terminated by him.

vii) The Contractor shall maintain Muster Roll in respect of the workers engaged by
him in POWERGRID in Form XVI.

viii) The Contractor shall maintain Wage Register in respect of the workers engaged by
him in POWERGRID in Form XVII.

ix) The Contractor shall maintain Register of Wage-cum-Muster Roll in respect of

workers engaged by him in POWERGRID in Form XVIII.

x) The Contractor shall issue Wage slip to all the workers engaged by him in
POWERGRID.

xi) The Contractor shall maintain Register of Deductions (Form XX), Register of Fines
(Form XXI), Register of Advances (Form XXII), Register of Overtime (Form XXIII) in
respect of the workers engaged by him in POWERGRID.

xii) The Contractor shall send half yearly return in Form XXIV in duplicate to the
Licensing Officer concerned within prescribed time limit.

xiii) The Contractor shall issue Photo Identity Card to the workers engaged by him in
POWERGRID under his seal and signature.

d) Minimum Wages Act 1948:

i) The workers engaged by the Contractor for carrying out the operations as
mentioned in the BOQ shall be paid Minimum wages as notified by the Appropriate
Authority from time to time.

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ii) The workers engaged by the Contractor shall be paid wages for 8 hours of normal
work per day. In case any worker is required to work beyond 48 hours in a week or
more than 9 hours in a day, he shall be paid Overtime at the prescribed premium
rates by the Contractor.

iii) The workers engaged by the Contractor shall be provided a day of rest in every
period of seven days with remuneration.

iv) The workers engaged by the Contractor shall be issued Wage Slip.

v) The Contractor shall display Notice containing minimum rates of wages, name and
address of the inspector in English and Hindi.

vi) The Contractor shall send annually a Return in Form III to the concerned authority.

e) Payment of Wages Act 1936 :

i) The Contractor shall pay wages to the workers engaged by him by 7th day of the
following month.

ii) The Wages shall be paid to the workers either by online ECS transfer or direct
transfer to their bank account or through A/C Payee cheque in the presence of
Engineer-in-charge or his authorized representative without deduction of any kind
except those that are authorized under this Act.

f) Equal Remuneration Act 1976:

i) The Contractor shall not pay to any worker engaged by him, remuneration at rates
less favourable than those at which remuneration is paid by the Contractor to the
workers of the opposite sex for performing any job at POWERGRID premises.

g) Child Labour (Regulation and Abolition) Act 1986:

i) The Contractor shall not be allowed to engage child labour as defined under the law
in the premises of POWERGRID for carrying out any work under the contract.

21.0 Social Accountability

The bidder shall stand committed to comply all requirements of Social
Accountability Standards i.e., SA8000 (latest Standard available at [Link])
and maintain the necessary records.

22.0 Safety
It is mandatory for the Contractor to observe during the execution of the works,
requirements of Safety Rules which would generally include but not limited to
following:

Safety Rules
a) Each employee shall be provided with initial indoctrination regarding safety

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by the Contractor, so as to enable him to conduct his work in a safe manner.

b) No employee shall be given a new assignment of work unfamiliar to him

without proper introduction as to the hazards incident thereto, both to himself
and his fellow employees.

c) Under no circumstances shall an employee hurry or take unnecessary chance

when working under hazardous conditions.

d) Employees must not leave naked fires unattended. Smoking shall not be
permitted around fire prone areas and adequate firefighting equipment shall
be provided at crucial location.

e) Employees under the influence of any intoxicating beverage, even to the

slightest degree shall not be permitted to remain at work.

f) There shall be a suitable arrangement at every work site for rendering prompt
and sufficient first aid to the injured.

g) The staircases and passageways shall be adequately lighted.

h) The employees when working around moving machinery, must not be

permitted to wear loose garments. Safety shoes are recommended when
working in shops or places where materials or tools are likely to fall. Only
experienced workers shall be permitted to go behind guard rails or to clean
around energized or moving equipment.

i) The employees must use the standard protection equipment intended for each
job.

j) Each piece of equipment shall be inspected before and after it is used.

k) Requirements of ventilation in underwater working to licensed and

experienced divers, use of gum boots for working in slushy or in inundated
conditions are essential requirements to be fulfilled.

l) The Contractor has to provide sufficient quantity of Personal Protective

Equipment (PPE)/ safety equipment conforming to Indian / International
standards and provide this equipment to it’s manpower at site as per the
work requirement. The Contractor's Site In-charge has to ensure that all
deployed manpower must use requisite Personal Protective Equipment /
safety equipment at site.

m) The Contractor shall submit relevant test certificates as per IS/IEC/

International standard as applicable to PPEs & T&Ps to the Owner before its

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usage.

n) Owner may issue warning letter to Site In-charge of Contractor in violation of

above norms.

o) If the contactor does not take adequate safety precautions and / or fails to
comply with the safety rules as prescribed under the applicable law for the
safety of the equipment and for the safety of personnel or the contactor does
not prevent hazardous conditions which causes injury to his own employees
or the employees of the Owner or employees of the other contractors /
agencies or any other person who are at site or adjacent thereto It may be
noted that in case, accident involves a manpower deployed by Contractor at
work site or general public, then Contractor site In-charge shall report/inform
the accident immediately to the Owner and to all the concerned Statutory
Authorities i.e.

p) The officer In-charge of the nearest Police Station of the associated Police
Station.

q) District administration (District Magistrate/ Sub-Divisional Magistrate)

r) The Regional Labour Commissioner

s) Commissioner of Employee Compensation (State) with which the person

involved was registered as beneficiary, and

t) The next of kin or other relative of the person involved in the accident.

Insurance company
u) In case of an accident happens, the affected person(s) must be administered
first-aid and all efforts made to immediately shift to nearby Hospital or any
other such place for medical treatment. It should be the responsibility of the
Contractor to furnish all details in this regard to the Owner in writing. Failure
to comply with requirement may entitle the Owner to withhold any dues or
suspend the work that is being carried out by the Contractor and recover the
damages / costs arisen from such non-compliance by the Contractor.
Contractor site In-charge ensure compliance of the same.

v) In case of any accident (fatal/ non-fatal), the contractor shall provide the
required compensation to the affected person/family as per the The
Code/Act On Social Security and the Occupational Safety, Health & Working
Conditions Code/Act. The contractor’s failure in this regard shall not relieve
him of any of his contractual responsibilities & obligations and the owner will
not entertain any claim in this regard.

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22.1 The Contractor shall follow and comply with all POWERGRID Safety Rules,
relevant provisions of applicable laws pertaining to the safety of workmen,
employees, plant and equipment as may be prescribed from time to time without
any demur, protest or contest or reservations. In case of any discrepancy between
statutory requirement and POWERGRID Safety Rules referred above, the latter
shall be binding on the Contractor unless the statutory provisions are more
stringent.

22.2 If the Contractor fails in providing safe working environment as per POWERGRID
Safety Rules or continues the work even after being instructed to stop work by the
Engineer, the Contractor shall promptly pay to POWERGRID, on demand by the
Owner, compensation at the rate of Rs 10,000/- (Ten Thousand) per day of part
thereof till the instructions are complied with and so certified by the Engineer.
However, in case of accident taking place causing injury to any individual, the
provisions contained in documents shall also apply in addition to compensation
mentioned in this para.

22.3 If the Contractor does not take all safety precautions and/or fails to comply with
the Safety Rules as prescribed by POWERGRID or under the applicable law for the
safety of the equipment and plant and for the safety of personnel and the
Contractor does not prevent hazardous conditions which cause injury to his own
employees or employees of other Contractors or POWERGRID employees or any
other person who are at Site or adjacent thereto, the Contractor shall be responsible
for payment of compensation of a sum as indicated below, to be deposited with
POWERGRID, which will be passed on by POWERGRID to such person or next to
kith and kin of the deceased.

a Fatal injury or accident causing death Rs. 15,00,000/- per person

b Major injuries or accident causing 25% or Rs. 5,00,000/- per person
more permanent disablement

Permanent disablement shall have same meaning as indicated in Workmen’s

Compensation Act. The amount to be deposited with POWERGRID and passed
on to the person as mentioned above, shall be in addition to the compensation
payable under the relevant provision of the Workmen’s Compensation Act and
rules framed there under or any other applicable laws as applicable from time to
time. In case the contractor does not deposit the above mentioned amount with
POWERGRID, such amount shall be recovered by POWERGRID from any
monies due or any other on-going contract.

23.0 Termination
23.1 In the event of any of the lapses mentioned below at (a) to (f), POWERGRID shall
issue notice of default to the Contractor (Contractor in present case) with an advice
to rectify/remedy the lapses within 7 days. If Contractor fails to rectify/remedy the
lapses and adhere to the terms and conditions of the contract/Letter of Award,

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POWERGRID shall terminate the contract/cancel the Letter of Award and forfeit
the Security Deposit/encash the bank guarantee towards Contract Performance
Guarantee.

a)
Failure of contractor to comply with any of the terms of the Contract/Letter of
Award.
b) Failure to render services as per the specifications/ scope of work.
c) Contractor becomes bankrupt
d) Contractor goes into liquidation
e) Contractor makes general assignment for the benefit of the creditor or any
receiver is appointed for the property owned by the Contractor
f) Any other reason in which POWERGRID deems fit to cancel the letter of
award.
23.2 Notwithstanding anything contained above, contract can be terminated/ letter of
award can be cancelled by either of the parties by giving 30 days’ notice to the other
party. However, if the contract is terminated by Contractor, for the default not
attributed to POWERGRID, the applicable Security Deposit shall be forfeited by
POWERGRID/ bank guarantee towards Contract Performance Guarantee submitted
by Contractor shall be encashed by POWERGRID.

23.3 Notwithstanding anything contained above, contract can be terminated/ letter of

award can be cancelled by either of the parties by giving 30 days’ notice to the other
party. However, if the contract is terminated by Contractor, for the default not
attributed to POWERGRID, the applicable Security Deposit shall be forfeited by
POWERGRID/ bank guarantee towards Contract Performance Guarantee
submitted by Contractor shall be encashed by POWERGRID.

23.4 In case the contract is terminated / letter of award is cancelled as per 23.1 or 23.2
above, the charges, as per the awarded rates, for services actually rendered by
Contractor up to the date of termination shall be payable to Contractor.

24.0 Short Closing of Contract due to Transfer of Asset

Owner may short close this contract with sixty (60) days prior written notice to
contractor, upon the occurrence of: Sale or transfer by owner of its rights in the
project or a sale or transfer of all or substantially all of the assets of or interests in
Owner.

25.0 Indemnification
25.1 Contractor shall keep Owner indemnified against all claims/ liability whatsoever
on account of statutory payments, costs, damages and charges arising out of
personal injury / disability or death of contractor's employees caused by any reason
whatsoever. Owner will not be responsible for any injury, damage etc. caused to
any of the Employee put on the job by the contractor directly or indirectly. In the

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event of any claim Contractor will be solely responsible to meet such claims and
Owner will not entertain any claim whatsoever in this regard.

25.2 The Contractor shall keep the Owner indemnified in case any action is taken against
the Owner by the competent authority on account of contravention of any of the
provisions of any Act or rules made there under, regulations or notifications
including amendments.

25.3 The Contractor shall indemnify the Owner, its officers and employees from and
against all actions, claims, demand, suits and proceedings by the third party for the
acts/omissions of the Contractor and all costs, charges, expenses, losses, damages,
duties, taxes, penalties, levies, and all other liabilities which the Owner may be
liable to pay, incur or sustain as a result of performance or non-performance,
observance or non-observance by the Contractor of any of the terms and conditions
of the Contract.

26.0 Arbitration
26.1 All disputes or differences in respect of which the decision, if any, of the Engineer-
in-charge and/or the Head of the Implementing Authority has not become final or
binding as aforesaid shall be settled by arbitration in the manner provided herein
below:

26.2 The arbitration shall be conducted by a sole arbitrator in case the amount of claim is
less than Rs. 25 Crore and by three member arbitral tribunal in case the amount of
claim is greater than Rs. 25 Crore.

Sole Arbitration

The sole Arbitrator shall be chosen from a panel of empanelled Arbitrators

maintained by POWERGRID. The same shall comprise of retired Judges and retired
Senior executives of PSUs other than POWERGRID. Further, the choice of sole
Arbitrator shall be governed by the amount of claim in the following manner:

Sl. Claim amount Work Experience/ Qualifications

no.
1 < Rs. 10 Crore Sole arbitrator-Retired Senior Executives
of PSUs other than
POWERGRID/Retired Distt Judges/
High Court Judges.
2 Rs.10 Crore- Rs.25 Sole arbitrator- Retired High
Crore Court/Supreme Court Judges

(a) In case of invocation of arbitration by POWERGRID, POWERGRID shall, within

30 days, send a list of names of 3 arbitrators from its list/database of Arbitrators
and the contractor shall within the period of further 30 days select any one person

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to act as “Sole Arbitrator”, which will be confirmed by POWERGRID and matter

will be referred to such appointed Arbitrator for further arbitration proceedings.

(b) In case of invocation of arbitration by the Contractor, the Contractor shall

request POWERGRID for its database of Arbitrators/ chose from the list of
Arbitrators available on POWERGRID’s website, and the contractor shall, within 30
days, select any one Arbitrator from the above to act as “Sole Arbitrator”, which
will be confirmed by POWERGRID within 30 days and matter will be referred to
such appointed Arbitrator for further arbitration proceedings.

If the parties fail to appoint sole arbitrator within sixty (60) days after receipt of a
notice from the other party invoking Arbitration, the appointment of sole arbitrator
shall be done by Courts as per the provisions of Indian Arbitration and Conciliation
Act, 1996 or any statutory modification thereof.

Three member arbitral tribunal

The arbitration shall be conducted by three arbitrators, who are retired High
Court/Supreme Court Judges, one each to be nominated by the Contractor and the
Employer and the third to be appointed by both the arbitrators in accordance with
the Indian Arbitration & conciliation Act. If either of the parties fails to appoint its
arbitrator within sixty (60) days after receipt of a notice from the other party
invoking the Arbitration clause, the arbitrator appointed by the party invoking the
arbitration clause shall become the sole arbitrator to conduct the arbitration. In case
of failure of the two arbitrators appointed by the parties to reach upon a consensus
regarding appointment of presiding Arbitrator, within a period of 30 days from the
appointment of the arbitrator appointed subsequently, the presiding arbitrator shall
be appointed by Courts as per the provisions of Arbitration & conciliation Act.

The cost of arbitral proceedings inter-alia including the Arbitrators’ fee, logistics
and any other charges shall be equally shared by both parties.

In case of Sole Arbitrator, the fees to be paid to the sole Arbitrator shall be as per
the terms of empanelment in POWERGRID whereas in case of the three member
tribunal, the Arbitrator’s fees shall be as agreed upon by the Arbitrators in line with
the Arbitration & Conciliation Act. However, the expenses incurred by each party
in connection with the preparation, presentation, etc. of its proceedings shall be
borne by each party itself

The language of the arbitration proceedings and that of the documents and
communications between the parties shall be English. The arbitration shall be
conducted in accordance with the provisions of the Indian Arbitration and
Conciliation Act, 1996 or any statutory modification thereof. The venue of
arbitration shall be New Delhi.

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The decision of the sole arbitrator/ the majority of the arbitrators, as the case may
be, shall be final and binding upon the parties. In the event of any of the sole
arbitrator/ any of the aforesaid arbitrators dying, neglecting, resigning or being
unable to act for any reason, it will be lawful for the parties to nominate another
sole arbitrator/ another arbitrator in place of the outgoing arbitrator.

Notwithstanding the above, in case the contractor is a Central Public Sector

Enterprise (CPSE)/Government Organization or Department then the dispute or
difference between the Employer and the Contractor shall be settled through
Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) as
mentioned in DPE OM No. 4(1)/2013-DPE(GM)/FTS-1835 dated 22.05.2018. The
decision through AMRCD will be final and binding on all the concerned.

During settlement of disputes and arbitration proceedings, both parties shall be

obliged to carry out their respective obligations under the contract.

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