bid document for the work - IDCO

CLAUSE - I
CONDITIONS OF CONTRACT
All compensation/penalty or other sums of money payable by the Contractor to Corporation under
the terms of this contract may be deducted from, or paid by, the sale or a sufficient part of his
security deposit or from the interest arising there from, or from any sums which may be due or may
become due to the Contractor by the Corporation on any account whatsoever and in the event of
his security deposit being reduced by reason of any such deduction or sales as aforesaid the
Contractor shall within ten days thereafter make good in cash or Bank Draft any sum or sums
which may have been deducted from, or raised by, sale of the security deposit or any part thereof.
CLAUSE - II
PENALTY FOR DELAY :
Time is deemed to be essence of the contract on the part of the Contractor. The time allowed for
carrying out the work as entered in the tender shall be strictly observed by the Contractor and shall
be reckoned from the date on which the written order to commence the work is given to the
Contractor. On receipt of the work order, the Contractor will give a schedule of construction and
stick to the time schedule during execution. In case he fails to observe the approved time schedule
during the intermediate period of the execution of work, penalty will be levied and will be recovered
@ 0.5 % on the value of work lagging behind for every week delay in execution of the portion or
component of work for which programme is given in the time schedule subject to maximum of 10%
of the contract price.
The penalty thus recovered at different stages may be waived in full or part if the authorized person
of IDCO in-charge of the work is satisfied that the Contractor has made up the delay at subsequent
stages and the work proceeds as per original time schedule. The decision of the authorized officer
in charge of the work is final and binding as regards recovery and waive of penalty at the
intermediate stages of the execution of the work.
If the work is delayed at the completion stage the penalty levied cannot be considered for waiver
unless the work is finished in all respect within the time schedule. The work should not be
considered as finished until such date as the Corporation shall satisfy as the date on which the
work is finished after necessary rectification of defects as pointed out by the Corporation or its
authorized officer are fully complied with by the Contractor to the satisfaction. The entire amount of
penalty to be paid under provision of this Clause shall not exceed 10% of the contract value of the
work.
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