BID DOCUMENT - IDCO

CONDITIONS OF CONTRACT
CLAUSE - I
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 @ 1 / 2 % 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.
The penalty thus recovered at different stages may be waived in full or part if the authorized person of IDCO incharge
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 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 Corporations
satisfaction provided all ways that entire amount of penalty to be paid under provision of this Clause shall not
exceed 10% of the contract value of the work.
Penalty levied for any delay which will occur during the last 3 months of the contract period can not be considered
for waiver by any Authority other than the Managing Directors of the Corporation. Subject to the consideration that
the application for waiver or penalty to the Managing Director of the Corporation can only be considered if work gets
finally finished within time schedule.
It is mutually agreed by both the parties that in case of any dispute arising out of the provisions of this clause, the
decision of the Managing Director of the Corporation is final and binding on both the parties and the decision is
neither arbitrable or changeable within the court of law.
CLAUSE - III
ACTION WHEN WHOLE SECURITY DEPOSIT IS FORFEITED :
57