CONTENTS - Central Public Works Department

202 SECTION 33
33.4 Clause 3A of CPWD Form No 7 and 8 (Closure of the contract)
If the work cannot be started due to reasons beyond the control of the contractor within 1/8 th of the
stipulated time for completion of the work, either party may close the contract. In such an eventuality, the
earnest money deposit, and the performance security/guarantee of the contractor shall be refunded.
Interest, loss of profit, damages, etc. shall not be payable to the contractor.
Tender accepting authority as defined in Schedule F of the contract shall be the competent
authority to approve final action to close the contract under provision of clause 3A of the contract.
(Added vide OM/MAN/169)
33.5 Clause 5 of Forms no. CPWD 7 and 8 clause 4 of Form no. CPWD 9
Under clause 2, time is deemed to be the essence of the contract on the part of the contractor. The
time allowed for execution of the work as specified in Schedule ‘F’ of the contract, or the extended time in
accordance with the conditions in the contract, shall be the essence of the contract. It is, therefore,
necessary for a contractor to complete the job within the stipulated period.
33.5.1 Action on failure to commence the work
If contractor fails to start the execution of the work, the earnest money and performance guarantee
shall be forfeited by engineer-in-charge with the prior approval of tender accepting authority as defined in
Schedule – F. (Added vide OM/MAN/169)
33.5.2 Progress of work as per milestones
As soon as possible after the contract is concluded, the contractor shall submit a time and progress
chart for each milestone and get it approved from the Department. The chart shall be prepared in direct
relation to the time stated in the contract documents for completion of the items of the work. It shall
indicate the forecast of the dates of commencement and completion of various trades of sections of the
work and may be amended as necessary by agreement between the Engineer-in-charge and the contractor
within the limitations of time imposed in the contract documents, and further to ensure good progress
during the execution of the work. The contractor shall in all cases in which time allowed for any work
exceeds one month (save for special jobs for which a separate program has been agreed upon) complete
the work as per milestones given in Schedule ‘F’.
The maximum amount that is to be withheld in case of non-achievement of milestones shall not exceed
5% of tendered value of the work. (Added vide OM/MAN/169)
33.5.3 Re-scheduling of milestones
(1) If however, he cannot complete the work against any of the milestone(s) due to having been
unavoidably hindered in execution thereof, or on any other ground, he can apply for re-scheduling
of the milestone(s) and extension of time within 14 days of the happening of the event causing
delay, on the prescribed form. The contractor may also, if practicable, indicate in such a request
the period for which extension of time is desired. The detailed procedure of granting extension of
time under this clause has been dealt under secton 29 of this Manual - “Extension of Time”.
(2) Extension of time is also justified to the contractor for additional work that is required to be worked
out as provided in clause 12 of the agreement [para 33.11.1 may be referred to].
(3) The Engineer-in-charge shall give a fair and reasonable extension of time and re-schedule the
milestone(s) for completion of the work. Rescheduling the milestones will include changing the
number of milestones also.
(4) Even after rescheduling of milestones total percentage of tendered amount which can be withheld
in case of non achievement of milestones shall remain unchanged as decided under clause 5 of
Schedule –F. (Added vide OM/MAN/169)