LETTER OF INTENT

FOR CONSTRUCTION WORK

Ref: No DHS/HAROHALLI/BUILDING 01 /24-25-001 DT 24/MAR /2025

To,

M/S GINA ENTERPRISES

# 45, 11th Cross,
1st Stage, Indira Nagar
Bangalore – 560038
GST No: 29AABFT1699P1ZA
PAN No: AABFT1699P

Dear Sir,
Sub: Proposed construction of Building -01 Hostel Blocks at Sy No 45/1 and 45/2 of
Devarakaggalahalli Village, Harohalli Hobli, Kanakapura Taluk, Ramanagara District.
Ref:
1) Reference various negotiation meetings on proposed construction held at our office.
2) Your final offer dated 20.03.2025, the final agreed Amount of Rs. 33, 75, 01,611/- (Rupees Thirty
three Crores Seventy Five lacks one thousand six hundred and Eleven only) (inclusive of GST and
all other taxes) for construction of Dr. D. Hemachandra Sagar Hostel Block -01, followed by Signed
Priced Bill of Quantities. The rates for the quoted BOQ provided are accepted & final value will be
considered as per the actual measurement and quantity
We have pleasure in appointing you as the Main Contractor for the construction of the proposed Hostel
block – Building 1 at the proposed site at Sy No 45/1 & 45/2, Devarakaggalahalli Village, Harohalli Hobli,
Kanakapura Taluk, Ramanagara District.

1. Scope of Work:
Civil, Structural works for Hostel block – Building 01, as per priced BOQ annexed -01
2. Terms & Conditions of Contract:
The Work Order is subject to the Specific Conditions of the Contract Annexure -02, General
Conditions of Contract annexed at Annexure -3 and Summary Terms & conditions annexed at
Annexure-4

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3. Specifications:
The details of the specifications are provided in Specific Terms and Conditions annexed as
Annexure – 4

4. Project Completion Period:

16 Months (16 month for bare shell) from the date of this Work Order or from the date on
which the site is handed over, whichever is later.

5. Performance Guarantee

The terms & conditions of Performance Guarantee are provided at Clause 4 of the Summary of
Terms & Conditions of the Work Order annexed as Annaxure-4

6. Drawings:
The details of the drawings provided / to be provides are at Annexure - 5

7. Accepted Contract Value:

Particulars Gross Value in SGST @9% CGST @9% Total Value incl
INR GST
Effective contract amount for
Civil Works of Hostel block 28,60,18,315/- 2,57,41,648/- 2,57,41,648/- 33,75,01,611/-
Building 01

(Total Accepted Contract Value of Rupees Thirty Three Crore Seventy Five Lack One Thousand and
Six hundred and Eleven Only)
(*) Based on the items and quantities provided in the enclosed BOQ and provisional sums which
may vary with quantity while implementing the project subject to relevant terms and conditions
of the contract documents provided with all the rates quoted are firm for the entire tenure of
the contract except as expressly provided for any adjustment in the contract.
8. Labour Cess:
Labour Cess is excluded in the above contract value and shall be remitted to the appropriate
authority by us.

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 9. Taxes:
Any changes in taxes and duties and levy of new taxes shall be adjusted suitably in accordance
with the terms of the contract.

Agreed Project 16 Months from the date of work order or from the date on
1 :
Completion Period which the site is handed over, whichever is later.

From the date of issue of work order or handing over the site
2 Date of Commencement :
whichever is later.
Construction of Civil, Structural & architectural works of
3 Scope of work :
Hostel block Building 1 as per BOQ - Annexure 1.

4 Performance guarantee : Nil

Mobilization Advance @ 10% of the Contract value will be

5 Mobilization advance : released along with Work order and recovered on Pro rata
basis from 2nd running account bills.

5% of the Contract value in the form of bank Guarantee valid

up to virtual completion shall be submitted progressively in
lieu of cash retention. Bank Guarantee to the tune of @ 2.5%
6 Retention money :
of the final bill value to be provided on virtual completion up
to expiry of Defect Liability period. There shall no cash
retention.

7 max total RA bills : 19 Nos ( Minimum value of 40 Lakhs, except first bill)

The running Account bills are required to be submitted once

in a month, 60% (sixty percent) of the bill value may be paid
within 10 days and balance of certified value will be paid
8 Running Bill Certification :
within 25 days from the date of submission of the bill, after
the acceptancy of the bills by the Employer with all the
necessary supporting documents.

9 Materials Advance : No materials advance will be paid

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10 Water & Electricity : Water - The Employer shall provide water free of the cost
and the supply shall be made up to one point, Further
distribution shall be managed for the work by the contractor
at his own cost. In case if the stated bore well does not yield
water due to scarcity, then the contractor shall arrange for
water on its own ( suitable for construction purpose for
which test certificate shall be submitted to the Employer) for
all purposes at their cost
Electricity - : Power shall be provided on chargeable basis
with sub meter, while the necessary power distribution for
the work to be carried out by the contractor. In case of
authorities power failure, then necessary power backup shall
be arranged by the contractor without any claim to the
employer.
The contractor shall supply the water and electricity to other
sub -contractor appointed by the employer directly at
mutual agreed rates.
virtual Completion Certificate will be issued by Engineer,
Virtual completion
11 : upon handing over all contract works, to the Employer /
Certificate
Engineer by the Contractor

24 Months from the date of issue of Virtual Completion

12 Defect liability period :
Certificate

Gantt Charts highlighting the millstones such as details

13 Project work schedule : program of works ( with work breakdown schedule) shall be
submitted along with the work

A detailed cash flow chart shall be submitted by Contractor

14 Cash flow :
along with work

Quoted rates to include all applicable taxes and duties,

15 Work rates including : Except GST, GST which has to be mentioned separately at
the end of the abstract cost

16 Non tendered Item rate : As detailed in clause 1.2 Special Terms of Contract.
17 Liquidated Damages & : Liquidated Delay damages for the works shall be 0.5% (Zero
time extension Point Five) of the Accepted Contract Amount per week
subject to a maximum of 5% of the accepted contract sum,
after which the employer is entitled to terminate the
contract.

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 Liquidated Damages will be applicable for delay in achieving
the contractor interim milestone dates as in Annexure 2 and
such computed amount will be deducted in the progress
payments. However, if the lapsed interim millstone is
achieved only within the next millstone target, then the
liquidity damages held amount will be released accordingly.

Kindly proceed with the mobilization and commence with the works in co-ordination with our project &
PMC team accordingly. The Project Kick-Off meeting date will be intimated accordingly.
We are issuing this order in duplicate with a request to return duplicate copy signed as a token of
acceptance.

Thanking you,

Dr. D. Hemachandra Sagar

Received and Accepted

For M/s. Gina Enterprises

Authorized Signatory