Document - irpmu.railnet.gov.in

irrevocable bank Guarantee (issued by SBI/ any nationalized / Schedule banks) for an
amount equal to 5% of the contract value and valid up to the expiry of maintenance
period of the contract. The successful bidder shall have to submit a Performance Guarantee
(PG) within 30 (Thirty) days from the date of issue of letter of Acceptance (LOA). Extension of
time for submission of PG beyond 30 (thirty) days and up to 60 days from the date of issue of
LOA may be given by the Authority who is competent to sign the contract agreement. However, a
panel interest of 15% per annum shall be charged for the delay beyond 30 (thirty) days, i.e. from
31 st day after the date of issue of LOA. In case the contractor fails to submit the requisite PG even
after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD
and other dues, if any payable against that contract. The failed contractor shall be debarred from
participating in re-tender for that work
(b) Performance guarantee will be released after satisfactory completion of work
and maintenance period. The procedure for the release of performance guarantee
will be the same as for security deposit i.e. after certification of satisfactory
completion of work as well as maintenance period by the contract signing
authority but not less than the rank of JA grade officer after receipt of
unconditional and unequivocal “No Claim” certificate” duly signed by the
contractor.
(c) Whenever the contract is rescinded the security deposit will be forfeited and
performance guarantee en-cashed and balance work shall be got done separately
and independently without any risk and cost on the original contractor. The
original contractor will however be debarred from participating in the tender for
executing the balance work. In case the failed contractor is a joint venture or a
partnership firm then each member/ partner of such firm would be debarred from
participating in the tender for the balance work, either in his/her individual
capacity or as a partner of any other joint venture/partnership firm. The contractor
cannot make any legal claims against the same.
(d) Renewal of Bank guarantee: The bank guarantee submitted towards
performance guarantee shall be renewed from time to time as per the extension of
contract granted to the contractor either on Railway account or contractor’s
account s otherwise same will be deducted in full from the dues of the contractor.
4. CONTRACTOR'S OFFICE & STORES DEPOT
The Contractor shall, within a month of issue of letter of acceptance of tender,
establish an office and stores depot at a convenient place for receiving and
storing equipments and materials and progressing field work expeditiously in
consultation and with the approval of the purchaser. He shall intimate the
purchaser and address thereof to which all correspondence should be sent. Any
communication sent to the contractor by post at his said address shall be deemed
to have reached the contractor duly and in time. Important documents shall be
sent by Registered post.
Signature of contractor Page 53 of 104 Dy CSTE/Proj/IRPMU/CNB