DEFINITIONS

Definitions of Terms Used.

The ‘Contract’ means the documents forming the tender and acceptance thereof, together with the documents
referred to therein including these Additional Terms and Conditions, Schedules, and General Summary attached to
the form of tender, the M.E.S. Schedule and the Specifications as applicable taken together shall be deemed to form
one Contract and shall be complementary to one another,

(a) The ‘bid documents’ means the form of bids, the applicable Schedules and/or General
Summary, these Conditions, and the Specifications.

(b) The ‘Services’ means the nature of services described in the tender documents or as may
be communicated from time to time to the Contractor by the G.E. or the Engineer-in-Charge within the
powers conferred upon them, including all modified extra or additional services and obligations to
be carried out either on the Site or at any other location within the AOR of the CWE (Army) Jaisalmer. The
‘Site’ means the any location within the AOR of CWE (Army) and/or other places on, into or through
which required services are to be provided under the Contract or any adjacent land, path or street which
may be allotted or used for the purpose of carrying out the Contract.

(c) The ‘Contractor’ means the individual or firm or company, whether incorporated or not,
undertaking the contract and shall include the legal personal representatives of such individual or the
persons composing such firm or company, or the successors of such individual or firm or company
and the permitted assigns of such individual or firm or company.

(d) ‘Government’ means the President of India, his successors in office and assigns and the
‘Accepting Officer’ means the duly authorised officer who signs the contract on behalf of the
President. CWE (Army) Jaisalmer shall exercise the same powers in respect of contracts concluded by him
on behalf of President and subject as otherwise provided in this contract, all notices to be given and all actions
to be taken on behalf of Government in respect of such contracts may be given or taken by CWE (Army)
Jaisalmer.

(e) The letters ‘C.W.E.’ mean ‘Commander Works Engineers’ and the letters ‘G.E.’ mean
‘Garrison Engineer’.

(f) The ‘Engineer-in-Charge’ means the Assistant Garrison Engineer (A.G.E.) or the Assistant
Engineer (A.E.) appointed by the G.E. to supervise the services or part of the services.
(g) ‘Approved’ and ‘directed’ mean the approval or direction of the C.W.E. or G.E. or
person deputed by him for the particular purpose.
(h) ‘M.D.’ means the ‘Government of India (Ministry of Defence)’.
(j) ‘M.E.S.’ means the ‘Military Engineer Services’.
(k) ‘I.S.’ means ‘Indian Standards’ as issued by the Indian Standards Institution.
(l) The ‘Contract Sum’ means the total cost of the contract arrived at after extension of the
quantities shown in Schedule ‘A’ by the item rates quoted by the tenderer for the various items.

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(m) The ‘Final Sum’ means the amount payable under the contract by Government to the
Contractor for the full and entire execution and completion of the services.

(n) ‘Accepted Risks’ mean the risk on the Site accepted by the Accepting Officer or
the C.W.E. in case of Contracts accepted by [Link]., of riots (otherwise than among Contractor’s
employees), war, invasion, act of foreign enemies, hostilities, civil war, rebellion, revolution, insurrection,
military or usurped power, damage from air craft and acts of God such as earthquake, lighting,
unprecedented floods and tornado.

(i) The ‘Date for Completion’ is the date or dates for completion of the whole or any part
of the contract, set out or ascertained in accordance with the individual Work Orders or the tender
documents, or any subsequent amendment thereto as provided.
(ii)A ‘Week’ means seven days without regard to the number of hours worked or not
worked in any day in that week.
(iii) A ‘Day’ means a day of 24 hours irrespective of the number of hours worked or not
worked in that day.
(iv) A ‘Working Day’ means any day other than that prescribed by the Negotiable Instruments
Acts as being a holiday and consists of the number of hours of labour as commonly recognised by
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good employers in the trade in the district where the work is carried out.
(v) ‘Emergency Works’ mean any urgent measures which, in the opinion of the Engineer-in-
Charge, become necessary during the progress of the Works to obviate any risk of accident or failure
or which becomes necessary for security, or rectifications to essential services like water supply and
electrification during the maintenance period of the contract.
(vi) ‘Daywork’ means items of labour and/or materials which, in the opinion of the Engineer-
in-Charge, are not capable of being evaluated by the accepted methods of measurement or assessment.

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 SCOPE OF THE CONTRACT

2. Secrecy- The Contractor shall take all steps necessary to ensure that all persons employed on any
work in connection with the Contract have notice that the Indian Official Secrets Act, 1923 (XIX of 1923)
applies to them and will continue so to apply even after the execution of such works under the Contract.
3. Contract Documents – The Contract is confidential and must be strictly confined to the Contractor’s own use
(except so far as confidential disclosure to sub-contractors or suppliers is necessary) and to the purposes of the
Contract. The Accepting Officer or the Officer empowered to issue the Works Orders shall furnish to the Contractor
free of cost two copies of the signed the blank Bills of Quantities. The Contractor shall keep one copy of the
Specifications on the Site and the Engineer-in-Charge or his representative shall at all reasonable times have access to
them. All documents, copies thereof an extracts therefrom furnished to the Contractor shall be returned to the G.E. on
the completion of the Works or the earlier determination of the Contract.
4. The Contractor shall be deemed to have satisfied himself as to the nature of the Site, local
facilities of access and all matters affecting the execution and completion of the Works. No extra charges
consequent on misunderstanding or otherwise will be allowed.
5. Discrepancies and Adjustment of Errors - The several documents forming the contract are
to be taken as mutually explanatory of one another. In the case of discrepancy between Schedule ‘A’,
the Bills of Quantities, the Specifications, the following order of precedence shall be observed:-
(a) Description of Schedule ‘A’/Bills of Quantities.
(b) Particular Specification.
(c) General Specification.
If there are varying or conflicting provisions made in any one document forming part of the
Contract; the Accepting Officer shall be the sole deciding authority with regard to the intention of the
document and his decision in this respect shall be final and binding. Any error in description, quantity or
rate in Schedule ‘A’ and Bills of Quantities, or any omission therefrom shall not vitiate the Contract or
release the Contractor from providing services in whole or any part therein according to the Specifications
or from any of his obligations under the Contract. Any error in quantity, rate or amount in Schedule
‘A’/Bills of Quantities and general summary shall be adjusted in accordance with the following rules:-
(A) General:-
(a) In the event of a discrepancy between description in words and figures quoted by a tenderer the description
in words shall prevail.
(b) In the event of an error occurring in the amount column of Schedule ‘A’ or Bill of Quantities as a result of
wrong extension of unit rate and quantity, the unit rate whether inserted by M.E.S. prior to issue of tenders
or quoted by tenderers, shall be regarded as firm and the extensions shall be amended on the basis of the
rate.
(c) All errors in totaling in the amount column and in carrying forward totals shall be corrected.
(d) Any omissions to include in the totals or to carry forward shall be corrected.
(e) The totals of Bills of Quantities, as amended above, shall be carried over to Schedule ‘A’. Similarly, totals
of various sections of Schedule ‘A’ as amended shall be carried over to the General Summary and the
tendered sum amended accordingly. The tendered sum so altered shall, for the purpose of the tender, be
substituted for the sum originally tendered and considered for acceptance instead of the original sum quoted
by the Contractor. Any rounding off of totals in various sections of Schedule ‘A’ or in General Summary by
the tenderer shall be ignored.
6. Deviations – The contractor shall not make any alteration in, addition to or omission from the Works as
described in the tender documents except in pursuance of the written instructions of the G.E.
7. Emergency Works – If any Emergency Works become necessary and the Contractor is unable (in respect
whereof the decision of the Engineer-in-Charge shall be final and binding) or unwilling at once to carry
them out, the Engineer-in-Charge may by his own or other work-people, carry them out as he may consider
necessary. If the Emergency Works shall be such as the Contractor is liable under the Contract to carry out
at his own expense or which are included in the Contract rates for Works being executed by the Contractor,
all expenses incurred on them by Government shall be recoverable from the Contractor, and if necessary,
be adjusted or set off against any sum payable to

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 him under this or any other Contract.
8. Suspension of Works
a. The Contractor shall, on receipt of the order in writing of the Garrison Engineer, suspend the progress of the
services or any part thereof for such time and in such manner as the Garrison Engineer may consider
necessary for any of the following reasons :-
i. on account of any default on the part of the Contractor; or
ii. for proper execution of the services or part thereof for reasons other than the default of the Contractor; or
iii. for safety of the Services or part thereof.
The contractor shall, during such suspension, properly protect and secure the Works to the extent
necessary and carry out the instructions given in that behalf by the Garrison Engineer.

9. Materials
(A) Materials to be provided by the Contractor –
The contractor shall, at his own cost and expense, provide all materials required for the services which
have been mentioned in Schedule A are to be provided to the government. All materials to be provided by
the Contractor shall be new and in conformity with the specifications laid down in the Contract and the
Contractor shall, if requested by the Engineer-in- Charge, furnish proof, to the satisfaction of the Engineer-
in-Charge that the materials so comply. The Contractor shall, at his own cost and expense and without
delay, supply to the Engineer-in- Charge samples of materials proposed to be used in the subject contract.
The Engineer-in-Charge shall within seven days of supply of samples or within such further period as he
may require and intimate to the Contractor in writing inform the Contractor whether samples are approved
by him or not. If samples are not approved the Contractor shall forthwith arrange to supply to the Engineer-
in-Charge for his approval fresh samples complying with the specifications laid down in the Contract. The
Engineer-in-Charge shall have full powers to require removal of any or all of the materials brought by the
Contractor which are not new and in accordance with the Contract specifications or do not conform in
character or quality to samples approved by him. In case of default on the part of the Contractor in removing
rejected materials the Engineer-in-Charge shall be at liberty to have them removed by other means at the
Contractor’s expense and risk. The Engineer-in-Charge shall have full powers to require other proper
materials to be substituted for rejected materials and in the event of the Contractor refusing to comply he
may cause the same to be supplied by other means. All costs/charges and expenses which may attend upon
such substitution shall be borne by the Contractor.
The Contractor shall indemnify Government or any Agent, servant or employee of Government against
any action, claim or proceeding relating to infringement or use of any patent or design or any alleged patent
or design rights and shall pay any royalties or other charges which may be payable in respect of any article
or material or part thereof included in the Contract. In the event of any claims being made or action being
brought against government or any agent, servant or employee of Government in respect of any such
matters as aforesaid, the Contractor shall immediately be notified thereof. Provided that such indemnity
shall not apply when such infringement has taken place in complying with the specific direction issued by
Government but the Contractor shall pay any royalties or other charges payable in respect of any such use,
the amount so paid being reimbursed to the Contractor only if the use was the result of any drawing and/or
specifications issued after submission of the tender. All charges and taxes on account of GST, Octroi,
terminal or other duties on materials obtained for the services from any source shall be borne by the
Contractor.
The Contractor shall bear the cost of loading, transporting to Site, unloading, storing under cover as
required, assembling and joining the several parts together as necessary and incorporating materials in the
subject contract including all preparatory work of whatever description as may be required, and of closing,
preparing, loading and returning empty cases or containers to the place of issue; in case of said items having
been issued by the Government.
All materials issued to the Contractor by the Government (including preparatory work) shall, on
completion or on foreclosure of the works and before submission of bills, be returned by the Contractor at
his expense, at the place of issue, after making due allowance for actual consumption, reasonable wear and
tear and/or waste. If the Contractor is required to deliver such materials at a place other than the place of
issue, he shall do so and the transportation charges from the Site to such place, less the transportation
charges which would have been incurred by the Contractor had such materials been delivered at the place of
issue, shall be borne by Government.
If on completion of Works the contractor fails to return surplus materials out of those supplied by
Government, then in addition to any other liability which the contractor would incur, the Engineer- in-
Charge may, by a written notice to the Contractor, require him to pay within a fortnight of receipt of the
notice for such unreturned and surplus materials at double the prevailing market rate as decided by the GE.
If however, the contractor is not satisfied with the decision of the G.E. with regard to market rate, he shall
be entitled to represent the matter to CWE within seven days of receipt of G.E.’s decision and the decision
of the C.W.E. thereon shall be final and binding.

(B) General -
Materials required for the works, whether brought by the Contractor or supplied by Government,
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 shall be stored by the Contractor only at places approved by the Engineer-in-Charge. Storage and safe
custody of materials shall be at the risk and the responsibility of the Contractor.
Government officials concerned with the Contract shall be entitled at any time to inspect and
examine any materials intended to be used in or on the Works, either on the Site or at factory or workshop
or other place(s) where such materials are assembled, fabricated or manufactured or at any place(s) where
these are lying or from which these are being obtained and the Contractor shall give such facilities as may
be required for such inspection and examination.
All materials brought to the Site shall become and remain the property of Government and shall not
be removed off the Site without the prior written approval of the Engineer-in-Charge. But whenever the
Works are finally completed and advance, if any, in respect of any such materials is fully recovered, the
Contractor shall at his own expense forthwith remove from the Site all surplus materials originally supplied
by him and upon such removal the same shall revest in and become the property of the Contractor.

10. Time, Delay and extension –

(A) Time is of the essence of the Contract and is specified in the contract documents or in each
individual Works Order. The Contractor shall ensure that all the labour employed by him is paid on monthly
basis through bank transfer. Details of labour along with the bank account linked with the mobile number of
the employed labour shall be promptly provided by the contractor. Details of EPF, ESIC and eShram Card
shall be provided by the contractor through proper channel for the perusal of Accepting Officer within Three
weeks of issue of Work Order. Non adherence to the instructions or engaging into any practice which
compromises with the interest of the labour shall be considered as unethical and immoral practice and shall
constitute sufficient ground for banning the contractor from tendering for any other work in the AOR of
CWE (A) Jaisalmer thereafter.
If the Works be delayed.
(i) by force majeure, or
(ii) by reason of abnormally bad weather, or
(iii) by reason of serious loss or damage by fire, or
(iv) by reason of civil commotion, local combination of workmen, strike or lockout, affecting any of the trades
employed on the work, or
(v) by reason of delay on part of nominated sub-contractors, or nominated suppliers which the Contractor has,
in the opinion of G.E., taken all practicable steps to avoid, or reduce, or
(vi) by reason of delay on the part of Contractors or tradesmen engaged by Government in executing
works not forming part of the contract, or
(vii) by reason of any other cause, which in the absolute discretion of the Accepting Officer is beyond the
Contractor’s control;
then, in any such case the Officer hereinafter mentioned may make fair and reasonable extension in
the completion dates of individual items or groups of items of Works for which separate periods of
completion are mentioned in the contract documents or Works Order, as applicable.
Upon the happening of any such event causing delay, the Contractor shall immediately, but not later than
30 days of the happening of the event, give notice thereof in writing to the G.E. but shall nevertheless use
constantly his best endeavour to prevent or make good the delay and shall do all that may reasonably be
required to the satisfaction of the GE to proceed with the works. Extension of time shall be granted by the
Accepting Officer of the contract.
In case the Contractor fails to notify the G.E. of happening of an event(s) causing delay within the
period of 30 days stipulated in sub-para 3 above, he shall forfeit his right to claim extension of time for the
delay caused due to such event(s). Extension of time, as granted above, shall be communicated to the
Contractor by G.E. in writing and shall be final and binding. PROVIDED THAT in the case of contracts
accepted by the G.E., in the event of the Contractor not agreeing to the extension granted by the G.E., the
matter shall be referred to the C.W.E. whose decision shall be final and binding.
No claim in respect of compensation or otherwise, howsoever arising, as a result of extensions granted
under Conditions mentioned above shall be admitted.
11. Transport. – The Contractor shall at his own expense supply all transport required for the
execution of the Contract, which will be provided by Government. The Contractor shall be responsible for the
loading and unloading of vehicles and shall comply with such restrictions regarding weight-carrying capacities, nature
of materials to be transported and routes to be followed as may be notified to him by the Engineer-in-Charge from
time to time during the period of hire, as well as to observe reasonable precautions at all times to prevent damage to
and undue wear and tear of the vehicles. The Contractor shall indemnify Government against any loss or damage to
the person or property of Government, or any agent, servant, or employee of Government, or to any third party due to
any neglect or default of the Contractor, his agents, servants, or work-people, connected with the use by him of the
transport.
12. Assignment or Transfer of Contract. - The Contractor shall not without the prior written
approval of the Accepting Officer assign or transfer the Contract, or any part thereof or any share, or interest
therein. No sum of money to become payable under the Contract shall be payable to any person other than
the Contractor unless the prior written approval of the Accepting Officer to the assignment or transfer of
such money is given.
13. Sub-contracts - The Contractor shall not sub-let any portion of the Contract without the prior
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written approval of the Accepting Officer. The Contractor shall make good any loss or damage suffered by
Government by reason of any default, neglect or failure on the part of such person in relation to such work or
material. Nothing herein contained shall relieve the Contractor of his liabilities and obligations under the Contract or
in any way affect the Contractor’s direct responsibility to Government nor shall it render Government in any way
responsible to such sub-contractor.
14. Orders under the Contract.- All orders, notices, etc. to be given under the Contract shall be
in writing, typescript or printed and if sent by registered post to the last known place of abode or business of
the Contractor shall be deemed to have been served on the date when in the ordinary course of post it would
have been delivered to him. The Contractor shall carry out without delay all orders given to him.
15. Admission to Site.- The Contractor will not be permitted to enter on (other than for
inspection purposes) or take possession of the Site until instructed to do so by the G.E. The portions of the
Site to be occupied by the Contractor will be clearly defined and/or marked on the Site plan, and the
Contractor will on no account be allowed to extend his operations beyond these areas. In the event of the
areas of land so allotted for the purpose of Accommodation of Labour, erection of Temporary Workshops,
Stores, etc. Storage of Materials and the like being other than Class A-I land (which fact shall be ascertained
by the Contractor from the G.E.), the contractor shall pay a nominal rent of Re. 1 per year, or part of a year,
in respect of each and every separate area of land allotted to him.
The Contractor shall provide if necessary or if required on the Site all temporary access thereto and
shall alter, adapt and maintain the same as required from time to time and shall take up and clear away as
and when no longer required and make all good.
The G.E. shall have power to execute other Works (whether or not in connection with the Works) on
the Site contemporaneously with the execution of the Works and the Contractor shall give reasonable
facilities for such purpose. The Government reserves the right of taking over, at any time, any portion of the
Site which it may require and the Contractor shall at his own expense clear such portion forthwith. No
photographs of the Site or of the Works or any part thereof shall be taken, published or otherwise circulated,
without the prior written approval of the G. E. No such approval shall however exempt the Contractor from
complying with any statutory provisions in regard to the taking and publication of such photographs. Any
M.E.S. Officials connected with the Contract shall have right of entry to the Site at all times. The Engineer-
in-Charge shall have the power to exclude from the site any labour whose admission thereto may
in his opinion be undesirable for any reason whatsoever. The G.E. shall have the power to exclude from
the site any person whose admission thereto may in his opinion be undesirable for any reason
whatsoever. The Contractor shall not be allowed any compensation on
account of the foregoing.
16. Contractor’s Supervision – The Contractor shall either himself supervise the execution of the
Contract or shall appoint a competent Agent approved by the G.E. to act in his stead. The employment of
Agent as aforesaid shall be to the approval of the G.E. who may verify his qualifications and experience by referring
to original degree/diploma/testimonials which shall be made available to him by the Contractor or by the individual
employed or proposed to be employed. If the Contractor fails to appoint a suitable Agent on being ordered to do so,
the G.E. shall have full powers to suspend the execution of the Works until such date as a suitable Agent is appointed
and the Contractor shall be held responsible for the delay so caused to the Works. Orders given to the Contractor’s
Agent shall be considered to have the same force as if they had been given to the Contractor himself. The Contractor
or his Agent shall be in attendance at the Site during all working hours and shall superintend the execution of the
Works with such additional assistance in each trade as the G.E. may consider necessary. The Contractor or his
accredited Agent shall attend, when required and without making any charge for doing so, either at the office of the
Engineer-in-Charge or on the Works to receive instructions.
The G.E. shall have full powers, and without giving any reason, to require the Contractor
immediately to cease to employ in connection with this Contract any Agent, servant or employee whose
continued employment is in his opinion undesirable. The Contractor shall not be allowed any compensation
on this account.
17. Labour.- The Contractor shall employ labour in required numbers and of quality to ensure
workmanship of the degree required by the Specifications and to the satisfaction of the Engineer-in-Charge.
The Contractor shall remain liable for the payment of all wages or other moneys to his work- people or employees
under the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Employer’s Liability Act, 1938, Workmen’s
Compensation Act, 1923, or any other Act or enactments relating thereto and rules framed thereunder from time to
time. The Contractor shall work only on and during the hours of a working day unless he obtains the prior written
approval of the Engineer-in-Charge to do otherwise. If such approval is given no liability in respect of any excess
cost arising therefrom shall be incurred by Government.
The Contractor shall furnish to the Engineer-in-Charge every morning a distribution return of the
number and description by trades of his work-people employed on the Works. The Contractor shall during
the progress of the Works comply at his own expense with all the rules and provisions contained in the
M.E.S. Model Rules for the protection of health and sanitary arrangements for workers employed by
contractors (appended hereto as Annexure ‘C’) and shall at his own expense provide for all facilities in
connection therewith to the satisfaction of the Engineer-in-Charge and on his failure to do so, the Garrison
Engineer shall be entitled to provide the same and recover the cost thereof. The Contractor shall not employ
in connection with the Works any person who has not completed his Eighteenth year of age.
The Contractor shall at his own expense arrange for all the safety provisions as per the M.E.S. Safety
Code (appended as an Annexure ‘B’) and shall at his own expense provide for all facilities in connection
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 therewith to the satisfaction of the Engineer-in-Charge and on his failure to do so, the G.E. shall be entitled
to provide the same and recover the cost incurred in that behalf from the Contractor. Provided further that in
case of failure to arrange for the safety provisions as above the contractor should in addition be liable to pay
a penalty of Rs. 500 for each default.
18. Training of Apprentices.- The Contractor shall comply with the provisions of the
Apprentices Act, 1961 and the rules and orders issued thereunder from time to time. If he fails to do so, his
failure will be a breach of contract and the Accepting Officer may, in his discretion, cancel the contract.
The contractor shall also be liable for any pecuniary liability arising on account of any violation by him of
the provisions of the Act.
27A. Maternity Benefit Rules for Female Workers employed by Contractor.- Leave and pay
during leave shall be regulated as follows : -
a. Leave –
i. In case of delivery- Maternity leave not exceeding 8 weeks, 4 weeks upto and including the day of delivery
and 4 weeks following that day.
ii. In case of miscarriage.- Upto 3 weeks from the date of miscarriage.
b. Pay-
i. in case of delivery- Leave pay during maternity leave will be at the rate of the woman‟s average daily
earnings calculated on the total wages earned on the days when full time work was done during a period of
three months immediately preceding the date on which she gives notice that she expects to be confined or at
the rate of seventy five paise a day whichever is greater.
ii. In case of miscarriage.- Leave pay at the rate of average daily earnings calculated on the total wages earned
on the days when full time work was done during a period of 3 months immediately preceding the date of
such miscarriage.
c. Conditions for the grant of Maternity Leave-
No maternity leave benefit shall be admissible to a woman unless she has been employed for a total
period not less than six months immediately preceding the date on which she proceeds on leave.
19. Anti-malarial Precautions.- The Contractor shall, at his own expense conform to all anti-
malarial instructions given to him by the Engineer-in-Charge, including the filling up of borrow-pits.
20. Nuisance.- The Contractor will not at any time do, cause or permit any nuisance or the Site or
do anything which shall cause unnecessary disturbance or inconvenience to the owners, tenants or occupiers
of other properties near the Site and to the public generally and will secure the efficient protection of all
streams and waterways against pollution.
21. Water.- The Contractor shall be provided with water required for the use of Works by the
department however any water required by his employees along with all pipes and fittings, or other means
that may be necessary or required to ensure a proper and ample supply of water for all purposes for the
Works shall be the responsibility of the contractor.
In the event of a provision existing in the tender documents for M.E.S. Supply of water on

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 payment and the contractor desiring to buy it from M.E.S., he will be permitted to draw it
from
M.E.S. Water Supply System or other M.E.S. sources at such point or points as may be decided by the
Garrison Engineer on his sole discretion and the contractor shall make necessary arrangements at his own
cost for lifting, pumping, carrying or conveying water to the site of works as required.
Normally in all cases of water supplied from M.E.S. piped system, the supply shall be metered and
paid for by Contractor at the *All India Flat Rate per 1,000 gallons which includes hire charges for meter to
be provided by M.E.S. In exceptional cases where metering is not fessible, i.e., water from M.E.S. wells
or static tanks where the Contractor draws water not from any ONE source, the Contractor shall pay Rs.
3.75 per every Rs. 1,000 worth of work done priced at Contract rates. In the event of breakdown of M.E.S.
Supply of water or in the event of the said supply of M.E.S. water becoming intermittent, the Contractor
shall have no claim whatsoever on this account.
The water used for any or all requirements shall be subject to the prior written approval of the
Engineer-in-Charge.
22. Temporary Workshops, Stores, etc.- The Contractor shall during the progress of the Works
provide, erect and maintain at his own expense all necessary temporary workshops, stores, offices, etc., as
are required for the proper and efficient execution of the contract. The planning, siting and erection of these
buildings shall be to the approval of the Engineer-in-Charge and they shall at all times be kept tidy and in a
clean and sanitary condition to the entire satisfaction of the Engineer-in- Charge and at the Contractor’s
expense. On completion of the Works the whole of such temporary buildings shall be cleared away and the Site rein
stead and left clean and tidy to the entire satisfaction of the Engineer-in-Charge and at the Contractor’s expense.
Additionally, the G.E. may at his discretion permit the Contractor to occupy as workshops and stores
such Government buildings as may be available at the Site or Station for that purpose and, in the event of
the Contractor occupying such accommodation, the prescribed rent for the same shall be recoverable from
him. The Contractor undertakes to maintain such premises at his own expense in a clean and sanitary
condition and to deliver up the same on the completion of the Works or the termination of the Contract, or
in the event of the said buildings being required by the G.E. within one month of an order to that effect, in a
clean state complete in every particular (damage from the accepted risks and fair wear and tear excepted).

23. Tools and Plant on Site.- All tools, plant and equipment brought to the Site shall become the
property of Government and shall not be removed off the Site without the prior written approval of the
G.E. But whenever the Works are finally completed or the Contract is determined for reasons other than the
default of the Contractor, the Contractor shall forthwith remove from the Site all tools, plant and equipment
(other than such as may have been provided by Government) and upon such removal, the same shall revese
in, and become the property of the Contractor.
24. Precautions against Risks. – The Contractor shall be responsible at his own expense, for
precautions to prevent loss or damage from any and all risks other than for Accepted Risks and to minimize
the amount of any such loss or damage and for the provision of all protective works, casings, coverings, etc.,
required for the purpose, until the Works have been handed over complete to the Engineer-in-Charge. All
Government buildings rented to the Contractor for workshops or stores shall be insured by the Contractor in favour of
Government to their full value against risk of loss or damage from whatsoever cause arising other than the accepted
risk, and the policy of insurance and receipts for premiums shall be produced when required by the GE; provided
always that where part only of a building is rented to the contractor, he will be required to insure the building only if
used by him for the purpose of storing or using materials of a combustible nature, as to which the decision of the G.E.
shall be final and binding.
The Contractor shall provide all watchmen necessary for the protection of the Site, the Works and of
materials and plant and all things on the Site during the progress of the Works, and shall solely be
responsible for and shall take all reasonable and proper steps for protecting, securing, lighting and watching
all places on or about the Works and the Site which may be dangerous to any person whomsoever.
25. Notices and Fees.- The Contractor shall give all notices required by any statutory provisions or
by the regulations and/or bye-laws of any local authority and/or of any public service, company or authority
affected by the Works or with whose systems the same are or will be connected and he shall pay and
indemnify Government against any fees, or charges demandable by law under such acts, regulations and/or
bye-laws in respect of the Works and shall make and supply all drawings and plans

8
 required in connection with any such notices.
26. Execution of the Services- The Services shall be executed in a workmanlike manner and to
the satisfaction in all respect of the Engineer-in-Charge. In the case of special circumstances the Engineer-in-
Charge will communicate or confirm his instructions to the Contractor in respect of the execution of work in a ‘Works
Site Order Book’ maintained at his office and the Contractor shall visit this office daily and shall confirm receipt of
such instructions by signing the relevant entries in this book. Such entries will rank as orders or notices in writing
within the intent and meaning or these Additional Terms and Conditions.
27. Inspection of the Works.- M.E.S. Officers concerned with the contract shall have power at
any time to inspect and examine any part of the Works and the Contractor shall give such facilities as may
be required to be given for such inspection and examination. Should the G.E. consider, at any time during the
construction or reconstruction or prior to the expiration of period of a twelve calendar months after the works have
been handed over to Government (hereinafter referred to as the ‘defects liability period’) that any work has been
executed with unsound, imperfect or unskillful workmanship or of a quality inferior to that contracted for or not
otherwise in accordance with the Contract (in respect whereof the decision of the G.E. shall be final and binding), the
Contractor shall, on demand in writing from the G.E. specifying the fault notwithstanding that the same may have
been inadvertently passed, certified and paid for, forthwith rectify or remove and reconstruct the Work so specified, in
whole or in part as the case may require, at his own expense; and in the event of his failing to do so within a period to
be specified by the G.E. in his demand aforesaid, the G.E. may carry out the Work by other means at the risk and
expense in all respects of the Contractor. Provided always that the liability of the Contractor under this Condition
shall not extend beyond the defects liability period except as regards workmanship which the G.E. shall have
previously given notice to the contractor to rectify.
28. Responsibility for Buildings.- In the event of any building or part, of a building being handed
over to the Contractor for the execution of Works thereto under the provisions of the Contract, he shall give
a written receipt for all fixtures, glass etc., and he shall be required to make good at his own expense all
damage resulting from any cause whatsoever, accepted risks and fire excepted (unless such fire shall have
been caused through the negligence of the Contractor or any of his agents, servants or employees) while in
his charge and to deliver up the said building or part thereof to the Engineer-in- Charge in a clean state
complete in every particular, on the completion of the Works.
29. Damage and Loss.- (a) All plant, temporary building, equipment, and things on the Site
provided by or on behalf of the Contractor for the construction of, but not for incorporation in the Works
shall stand at the risk and be in the sole charge of the Contractor and the Contractor shall be responsible for,
and with all possible speed make good, any loss or damage thereto arising from any cause whatsoever,
including the accepted risk.
(b) Save as above, the works and all materials and things whatsoever including such as may have
been provided by Government on the Site in connection with and for the purpose of the Contract shall stand
at the risk and be in the sole charge of the Contractor and the Contractor shall be responsible for, and with
all possible speed make good, any loss or damage thereto arising from any cause whatsoever, other than the
accepted risks and shall deliver up all the Works to the Engineer-in-Charge in a clean state, complete in
every particular. Provided always that the Contractor shall not be entitled to payment under this Condition
in respect of so much loss or damage as has been occasioned by any failure on his part to perform his
obligations under the Contract.
(c) Save as provided above, the Contractor shall at his own expense reinstate and make good to the
satisfaction of the G.E. or make compensation for any injury, loss or damage occasioned to any property or
right whatever including property and rights of Government (or agents, servants, or employees of
Government) being injury, loss or damage arising out of or in any way in connection with the execution or
purported execution of the Contract and further, the Contractor shall indemnify Government against all
claims enforceable against Government (or any agent, servant or employee of Government) or which would
be so enforceable against Government were Government, a private person, in respect of such injury
(including injury resulting in death), loss or damage to any person whomsoever or property, including all
claims which may arise under the Workmen’s Compensation Act or otherwise.
30. Completion.- The Works shall be completed to the entire satisfaction of the G.E. and in
accordance with the Contractor’s forecast of time and progress where operative. All unused stores and
materials, tools, plant, equipment, scaffolding, temporary buildings, huts and things belonging to the
Contractor (other than such items as are required for rectification of defects) shall be removed and the Site
of Works cleared of rubbish and all waste materials by the Contractor, at his own expense and delivered up
clean and tidy to the satisfaction of the Engineer-in-Charge on or before the date for completion. All unused
or surplus stores and materials and other items out of those provided by the Government shall be returned by the
Contractor, at his own expense, within such period as may be notified by the Engineer-in-Charge, to the place of issue
against written receipts from the Engineer-in-Charge.
Soon after the rectification of defects, any stores and materials and other items mentioned above,
retained for rectification of defects shall also be removed and Site and Works cleared as above and delivered
to the Engineer-in-Charge in a neat state.
Immediately after completion of an item of Works or a group of items of Works for which a separate
period of completion has been mentioned in contract, the Contractor shall give notice thereof to the Garrison
Engineer.
In the case of groups of items of Works for which separate periods of completion are given in the
Contract, the G.E. may take over from the Contractor such individual items as are completed to his
9
 satisfaction before the completion of the entire group, but for all purposes of the Contract except for
compensation for delay, the completion of the entire group shall be taken into account.
The G.E. shall take over from the Contractor from time to time items or groups of items of Works
for which separate periods of completion have been mentioned in the contract and which have been
completed to the satisfaction of the G.E. The G.E. Shall certify to the Contractor the Date(s) on which the
items or group of items of Works are completed and taken over and the state thereof.
The G.E. shall also certify to the Contractor the state of items or groups of items of the Works at the
end of the defects liability period.

31. Compensation for Delay.- If the Contractor fails to provide the requisite manpower of necessary
strength, experience and skill for the duration of the period of contract; he shall, without prejudice to any
other right or remedy of Government on account of such breach, be liable to pay compensation as under:-
a. in the case of insufficient manpower; Three times the per day wages of the category of manpower for the
duration of absence calculated on daily basis;
b. in the case manpower of inadequate skill, Two times per day wages of the category of manpower for the
duration calculated on daily basis;
c. in the case manpower of inadequate experience; amount equal to per day wages of the category of
manpower for the duration calculated on daily basis;
32. Laws Governing the Contract:- This Contract shall be governed by the Indian Laws for the
time being in force.
33. Cancellation of Contract for Corrupt Acts: - The C.W.E. whose decision shall be final and
binding, shall, without prejudice to any other right or remedy which shall have accrued or shall accrue
thereafter to Government, cancel the Contract in any of the following cases and the Contractor shall be
subject to payment of any loss or damage resulting, from any such cancellation to the like extent as is
provided in the case of cancellation for default:
If the Contractor shall –
(a) offer or give or agree to give to any person in Government service any gift or consideration of any
kind as an inducement or reward for doing or forbearing to do or for having done or forborne to do any act
in relation to the obtaining or execution of this or any other Contract for Government service, or
(b) enter into a Contract with Government in connection with which commission has been paid or agreed
to be paid by him or to his knowledge, unless the particulars of any such commission and the terms of
payments thereof have previously been disclosed in writing to the Accepting Officer, or
(c) obtain a contract with Government as a result of ring tendering or other non bonafide methods of
competitive tendering without first disclosing the fact in writing to the Accepting Officer.
34. Cancellation of Contract for Insolvency, Sub-letting, etc.- The Accepting Officer may, without
prejudice to any other right or remedy which shall have accrued or shall accrue thereafter to Government,
cancel the Contract in any of the following cases: -
If the Contractor –
(a) being an individual or if a firm, any partner thereof shall at any time be adjudged insolvent or
have a receiving order or order for administration of his estate made against him or shall take any proceedings
for liquidation or composition under any Insolvency Act for the time being in force or make any conveyance or
assignment of his effects or composition or arrangement for the benefit of his creditors or purport so to do or if any
application be made under any Insolvency Act for the time being in force for the sequestration of his estate or if a trust
deed be granted by him for behalf of his creditors ; or
(b) being a company shall pass a resolution or the Court shall make an order for the liquidation of its affairs or a
receiver or manager on behalf of the debenture holders shall be appointed or circumstances shall arise which
entitle the Court or debenture holders to appoint a receiver or manager; or
(c) assigns, transfers, sub-lets or attempts to assign, transfer or sub-let, any portion of the Works without the
prior written approval of the Accepting Officer.
Whenever the Accepting Officer exercises his authority to cancel the Contract under this condition, he
may complete the Works by any means at the Contractor’s risk and expense provided always that in the
event of cost of completion or after alternative arrangements have been finalised by the Government to get
the Works completed, estimated cost of completion (as certified by G.E.) being less than the Contract cost,
the advantage shall accrue to the Government. If the cost of completion or after alternative arrangements
have been finalised by the Government to get the Works completed, estimated cost of completion (as
certified by G.E.) exceeds the moneys due to the Contractor under this Contract, the Contractor shall either
pay the excess amount ordered by G.E. or the same shall be recovered from the Contractor by other means.
The Government shall also be at liberty to hold and retain in their hands materials, tackle, machinery and
stores of all kinds on Site, as they may think proper and may at any time sell any of the said materials,
tackle, machinery and stores and apply the proceeds of sale in or towards the satisfaction of any loss which
may arise from the cancellation of the Contract as aforesaid.
The Government shall also be at liberty to use the materials, tackle, machinery and other stores on site of
the contractor as they think proper in completing the work and the Contractor will be allowed the necessary
credit. The value of the materials and stores and the amount or credit to be allowed for tackle and
machinery belonging to the Contractor and used by the Government in completing the work shall be
assessed by the G.E. and the amount so assessed shall be final and binding.
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 In case the Government completes or decides to complete the Works under the provisions of this
Condition the cost of such completion to be taken into account in determining the excess cost to be charged
to the Contractor under this Condition shall consist of the cost or estimated cost (as certified by G.E.) of
materials purchased or required to be purchased and/or the labour provided or required to be provided by the
Government as also the cost of the Contrator‟s materials used with an addition of such percentage to cover
superintendence and establishment charges as may be decided by the C.W.E. whose decision shall be final
and binding.
35. Cancellation of Contract in part or in full for Contractor’s Default.- If the Contractor-
a. makes default in commencing the Services within a reasonable time from the date of the handing over the
site, and continues in that state after a reasonable notice from G.E.
or
b. in the opinion of the G.E. at any time, whether before or after the date or extended date for completion,
makes default in proceeding with the Services, with due diligence and continues in that state after a
reasonable notice from G.E.
or
c. fails to comply with any of the terms and conditions of the Contract, or after reasonable notice in
writing with orders properly issued thereunder,
or
d. fails to complete the Services, Work order and items of Services, with individual dates for completion
and clear the Site on or before the date of completion.
The Accepting Officer may, without prejudice to any other right or remedy which shall have accrued
or shall accrue thereafter to Government, cancel the Contract as a whole or only such Work Order(s) or
items of Work in default from the Contract. Whenever the Accepting Officer exercises his authority to
cancel the Contract as a whole or in part under this Condition he may complete the Work by any means at
Contractor’s risk and cost, provided always that in the event of cost of completion or after alternative
arrangements have been finalised by the Government to get the Services completed, estimated cost of
completion (as certified by G.E.) being less than the Contract cost, the advantage shall accrue to the
Government. If the cost of completion or after alternative arrangements have been finalised by the
Government to get the Services, completed, estimated cost of completion (as certified by G.E.) exceeds the
moneys due to Contractor under this Contract, the Contractor shall either pay the excess amount ordered by
G.E. or the same shall be recovered from the Contractor by other means. The Government shall also be at
liberty to hold and retain in their hands materials, tackle, machinery and stores of all kinds on Site, as they
may think proper and may at any time sell any of the said materials, tackle, machinery and stores and apply
the proceeds of sale in or towards the satisfaction of any loss which may arise from the cancellation of the
Contract as aforesaid.
The Government shall also be at liberty to use the materials, tackle, machinery and other stores on
Site of the Contractor as they think proper in completing the work and the Contractor will be allowed the
necessary credit. The value of the materials and stores and the amount of credit to be allowed for tackle and
machinery belonging to the Contractor and used by the Government in completing the work shall be
assessed by the G.E. and the amount so assessed shall be final and binding.
In case the Government completes or decides to complete the Services or any part thereof under the
provision of this Condition, the cost of such completion to be taken into account in determining the excess
cost to be charged to the Contractor under this Condition shall consist of the cost or estimated cost (as
certified by G.E.) of materials purchased or required to be purchased and/or the labour provided or required
to be provided by the Government as also the cost of the Contractor’s materials used with an addition of
such percentage to cover superintendence and establishment charges as may be decided by the C.W.E.,
whose decision shall be final and binding.
36. Termination of Contract for Death - Without prejudice to any of the rights or remedies
under this contract, if the Contractor dies, the Accepting Officer shall have the option of terminating the
Contract without compensation to the Contractor.
37. Termination of Contract (Applicable only to Term Contracts). The Contract shall remain
in force for a period of not less than six months and may be terminated at the end of that period or at any
time thereafter provided that six weeks‟ notice in writing to that effect shall have previously been given by
either party. Any Services for which written orders are issued before the termination of the Contract shall be
deemed to be within the Contract although the time for completion is beyond the date of termination of the
Contract.
38. Fair Wage.-(a) The contractor shall pay not less than the ‘fair wage’ as defined below or the
minimum wage fixed under the Minimum Wages Act, whichever is higher to labourers engaged by him on
the Work. ‘ Fair Wage’ means wage whether for time or piece work notified at the time of inviting tenders for the
Work and where such wages have not been so notified the wages prescribed by the Chief Engineer for the stations at
which the Work is done.
(b) The Contractor shall notwithstanding the provision of any Contract to the contrary, cause to be
paid a „fair wage‟ or minimum wage fixed under the Minimum Wages Act whichever is higher to labourers
indirectly engaged on the Work including any labour engaged by his sub-contractors in connection with the
said Work, as if the labourers had been directly employed by him.

11
 (c) In repect of all labour directly or indirectly employed on the Services for the performance of the
Contractor‟s part of this Agreement, the Contractor shall comply with or cause to be complied with the
M.E.S. Contractor‟s Labour Regulations (appended hereto as Annexure „A‟ to these Additional
Terms and Conditions) in regard to all matters provided therein and with all other Labour Laws as may be
applicable.
(d) The Garrison Engineer concerned shall have the right to deduct, from the moneys due to the
Contractor, any sum required or estimated to be required for making good the loss suffered by a worker or
workers by reason of non-fulfilment of the Conditions of the Contract for the benefit of the workers, non-
payment of wages or of deductions made from his or their wages, which are not justified by the terms of the
Contract or non-observance of the Regulations.
(e) Vis-à-vis the Government, the Contractor shall be primarily liable for all payments to be made
under, and for the observance of the Regulations aforesaid without prejudice to his right to claim indemnity
from his sub-contractors.
(f) The Regulations aforesaid shall be deemed to be a part of this Contract and any breach thereof
shall be a breach of this Contract.
Records and Measurement.- All items having a financial value shall be entered in the
M.E.S. Measurement Book I.A.F.W.-2261 or on other approved Army Form, as applicable so that a
complete record is obtained of all Work performed under the Contract.
Work which falls to be measured in details shall be measured physically, without reference to any
local custom that may obtain, excepting where it may otherwise be directed in the tender documents. The
measurements shall be taken jointly by any person or persons duly authorized on the part of the M.E.S. and
by the Contractor. The Engineer-in-Charge shall give reasonable notice in writing to the Contractor of
appointment for measurement. The contractor shall, without extra charge, provide assistance with every
appliance and other things necessary for measurement.
The Contractor shall bear all the costs of his own measurement. Measurements shall be signed and
dated by both parties each day on the Site on completion of measurement. If the Contractor objects to any of
the Measurements recorded on behalf of the M.E.S. a note to that effect will be made in the M.E.S.
Measurement Book or other approved Army Form as applicable against the item or items objected to; and
such note shall be signed and dated by both parties engaged in taking the measurements.
If as a result of such objection, it becomes necessary to re-measure the Work wholly or in part the
expense of such re-measurement shall be borne by the party requiring the measurements to be retaken
provided that a net error is found by this re-measurement to amount to less than 5 per cent of the value as
recorded by the first measurements. But where the net errors amount to 5 per cent or over of the said value,
then the cost is to be borne by the other Party. In any case, if the net value of errors found exceeds Rs.500,
the expense of re-measurement is to be borne by the other party. If the Contractor’s representative fails to
attend when required, the Engineer-in-Charge shall have power to proceed by himself to take measurements
and in that case, these measurements shall be accepted by the Contractor as final.
(A) For all Contracts –
If any Work, the rate for which cannot be obtained by any of the methods referred to in paras (A) to (E)
above, has been ordered on the Contractor, the rate shall be decided by the G.E. on the basis of the cost to
the Contractor at Site of Services plus 10% to cover all overheads and profit. Provided that if the Contractor
is not satisfied with the decision of the G.E., he shall be entitled to represent the matter to the C.W.E. within
seven days of receipt of the G.E.‟s decision and the decision of the C.W.E. thereon shall be final and
binding.

If any alterations or additions (other than those authorized to be executed by day work or for an agreed
sum) have been covered up by the Contractor without his having given notice of his intention to do so, the
Engineer-in-Charge shall be entitled to appraise the value thereof and in the event of any dispute the
decision of the G.E. thereon shall be final and binding.

39. Re-imbursement/refund on variation in price. – If during the progress of the Services the
wages of labour increase as a direct result of the coming into force of any fresh law, or statutory rule or
order, the Contractor will thereupon necessarily and properly pay labour required for and engaged in the
execution of the work such increased wages. If during the progress of the Services, the wages of labour is
decreased as a result of coming into force of any fresh law or statutory rule or order. The Contractor shall, for the
purpose of this condition keep such books of account and other documents as are necessary to show the amount of any
increase and shall allow inspection of the same by a duly authorized representative of Government, and further shall,
at the request of the Garrison Engineer furnish, verified in such a manner as the Garrison Engineer may require, any
documents so kept and such other information as the G.E. may require.
The Contractor shall, within a reasonable time of his becoming aware of any alteration to the wages
of labour, give written notice thereof to the G.E. stating that the same is given pursuant to this condition
together with all information relating thereto.
40. Advances on Account – The contractor may at intervals of not less than 30 days submit claims on
I.A.F.W.-2263 for payment of advances on account of work done.
The G.E. shall from time to time certify the sums to which the Contractor is entitled after
retaining the reserve.
12
 Any certificate relating to Work done may be modified or corrected by any subsequent interim
certificate or by the final certificate and no certificate of the G.E. supporting an advance payment shall of
itself be conclusive evidence that any Work or materials to which it relates are in accordance with the
Contract.
41. Final Bill.- The Final Bills shall be submitted by the Contractor on IAFW-2262 in duplicate
within two months of physical completion of the services to the satisfaction of the Engineer-in-Charge. It
shall be accompanied by all abstracts, vouchers, etc., supporting it and shall be prepared in the manner prescribed by
the G.E. No further claims shall be made by the Contractor after submission of the Final Bill and these shall be
deemed to have been waived and extinguished. The Contractor shall be entitled to be paid the final sum less the value
of payments already made on account, subject to the certification of the final bill by the G.E.
No charges shall be allowed to the Contractor on account of the preparation of the final Bill.
forthwith, billed for final payment. No further claims shall be made by the Contractor after
submission of a Final Bill and these shall be deemed to have been waived and extinguished. The Contractor
shall be entitled to be paid the full measured value of the Services Order, less the value of payments made
on account and of any charges properly preferred under the Conditions of Contracts for Government Stores,
etc. supplied on repayment, subject to the certification of the final bill by the G.E.
When fractions of a rupee occur in the totals of bills fractions less than half a rupee shall be
disregarded and half a rupee and over taken as a rupee.
No charges shall be allowed to the Contractor on account of the preparation of a final bill.
42. Payments of Bills – Payment of those items of the Final Bill in respect of which there is no
dispute shall be made within the period specified hereunder, the period being reckoned from the date of
receipt of the Bill by the G.E.:-
a. Contract amount not exceeding Rs.5 lakhs – Four months
b. Contract amount exceeding Rs.5 lakhs – Six months
After payment of the amount of the final bill payable as aforesaid has been made, the Contractor, may if
he so desires, reconsider his position in respect of the disputed portion of the final bill and if he fails to do so
within 90 days, his disputed claim shall be dealt with as provided in the Contract.
43. Recovery from Contractor.- (a) Whenever any claim(s) for payment of sum of money
arise(s) out of or under this Contract against the contractor, the Contractor shall on demand make the
payment of the same or agree for effecting adjustment from any amounts due to him by the Government. If,
however, he refuses or neglects to make the payment on demand, or does not agree for effecting adjustment
from any amounts due to him, Government shall be entitled to withhold an amount not exceeding the
amount of the claim(s), from any sum when due or which at any time thereafter may become due to the
Contractor, under this or any other Contract with the Government or from any other sum due to the
Contractor from the Government (which may be available with the Government) or from the Contractor’s
Security Deposit or Security Bond amount, and retain the same by way of lien till such time, payment is
made by the Contractor or till the claim(s) is/are settled or adjudicated upon, or till the Contractor, at his
expense furnishes Fixed Deposit Receipt(s) duly endorsed as directed by the Accepting Officer, or a
Guarantee Bond from a Scheduled Bank for an amount equal to the amount of the claim(s) in the form as
directed by the Accepting Officer.
(b) It is an agreed condition of this Contract that the sum of money so withheld or retained as
and by way of lien under this condition by the Government, will be kept withheld or retained as such by the
Government, till the claim(s) arising out of or under this Contract is/are settled or adjudicated upon and that
the Contractor will have no claim for interest or damages whatsoever on any account in respect of such sum
so withheld.
(c) For the purpose of this Condition, where the contractor is a Partnership Firm, the
Government shall be entitled to withhold in whole or in part as may be necessary to cover the amount
claimed, any sum found payable to any partner of the Firm, whether in his individual capacity or otherwise.
(d) Any amount due to the Contractor under this contract may be withheld by way of lien against
any amount claimed or which may at any time hereafter be claimed by the Government from the contractor
on any account whatsoever, under this or any other contract between them and retained, till the claim(s)
is/are settled or adjudicated upon.
(e) Government reserve the right to carry out post-payment audit and technical examination of the
services and Final Bill, including all supporting vouchers, abstracts, etc. Government further reserve the
right to carry out the aforesaid examination and enforce recovery when detected, notwithstanding the fact
that the amount of the Final Bill may have been included by one of the parties as an item of dispute before
an Arbitrator appointed under the Arbitration clause of the Contract and notwithstanding the fact that the
amount of the Final Bill figures in the Arbitrator’s award.
(f) If, as a result of such audit and technical examination, any over-payment is discovered in respect
of the work done under this Contract, the contractor shall on demand make payment of a sum equal to the
amount of over-payment or agree for effecting necessary adjustment from any amounts due to him by
Government. If however, he refuses or neglects to make the payment on demand or does not agree for
effecting adjustment from any amounts due to him, Government shall be entitled to take action as in sub para (a)
hereinbefore. If as a result of such audit and technical examination any under payment is discovered, the amount of
under payment shall be duly paid to the Contractor by Government.
(g) Provided, that, nothing hereinbefore contained shall entitle the Government to recover any over
13
 payment in respect of any price agreed between the C.W.E. or the G.E. and the Contractor under the
circumstances specifically prescribed for such method of assessment and that the said right of the
Government to adjust over-payment from any sum due or from any sum which may become due to the
Contractor or from Security Deposit or Security Bond amount and adjust under payment, shall not extend
beyond a period of two years from the date of payment of the undisputed portion of the Final Bill or in the
case of a minus Bill, from the date, the net amount of the final bill is communicated to the Contractor.
(h) All notices under this condition shall be given by the G.E.
44. Refund of Security Deposit.- The Security Deposit mentioned above may be refunded to the
Contractor after the expiration of the defects liability period by the G.E. provided always that the Contractor
shall first have been paid the Final Bill and have rendered a No-Demand Certificate (I.A.F.A.-451)
The additional Security Deposit referred above may be refunded to the contractor, by the G.E. in two
stages, viz. 50% of the additional Security Deposit on payment of the undisputed portion of the Final Bill
provided there are no claims outstanding against the Contractor and the balance 50% after expiration of the
defects liability period, provided the contractor shall first have rendered a No-Demand Certificate
(I.A.F.W.- 451).
45. Issue of notices.- Subject as otherwise provided in this Contract, all notices to be given on
behalf of the President of India and all other actions to be taken on his behalf may be given or taken on his
behalf by the G.E. or any officer for the time being entrusted with the functions, duties and powers of the
G.E.
46. Arbitration.- All disputes, between the parties to the Contract (other than those for which the
decision of the C.W.E. or any other person is by the Contract expressed to be final and binding) shall, after
written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an
Engineer officer to be appointed by the authority mentioned in the tender documents.
Unless both parties agree in writing such reference shall not take place until after the completion or
alleged completion of the Work or termination or determination of the Contract.
Provided that such reference shall not take place until alternative arrangements have been finalized
by the Government to get the Services completed by or through any other Contractor or Contractors or
Agency or Agencies.
Provided always that commencement or continuance of any arbitration proceeding hereunder or
otherwise shall not in any manner militate against the Government’s right of recovery from the contractor as
provided hereof.
If the Arbitrator so appointed resigns his appointment or vacates his office or is unable or unwilling to
act due to any reason whatsoever, the authority appointing him may appoint a new Arbitrator to act in his
place.
The Arbitrator shall be deemed to have entered on the reference on the date he issues notice to both
the parties, asking them to submit to him their statement of the case and pleadings in defence.
The Arbitrator may proceed with the arbitration, exparte, if either party, inspite of a notice from the
Arbitrator fails to take part in the proceedings.
The Arbitrator may, from time to time with the consent of the parties, enlarge, the time upto but not
exceeding one year from the date of his entering on the reference, for making and publishing the award.
The Arbitrator shall give his award within a period of six months from the date of his entering on the
reference or within the extended time as the case may be on all matters referred to him and shall indicate his
findings, along with sums awarded, separately on each individual item of dispute.
The venue of Arbitration shall be such place or places as may be fixed by the Arbitrator in his sole
discretion.
The award of the Arbitrator shall be final and binding on both parties to the Contract.

14