GAIL (India) Limited MECON LIMITED

No verbal agreement or inference from conversation with anyeffect or employee of the EMPLOYER either before, during orafter the execution of the CONTRACT agreement shall in any wayaffect or modify and of the terms or obligations herein contained.Any change in layout due to site conditions or technologicalrequirement shall be binding on the CONTRACTOR and no extraclaim on this account shall be entertained.24 Contract PerformanceSecurity:24.1 The CONTRACTOR shall furnish to the EMPLOYER, within 15days from the date of notification of award, a security in the sumof 10% of the accepted value of the tender or the actual value ofwork to be done whichever is applicable due to any additionalwork or any other reasons, in the form of a Bank draft/Banker’scheque or Bank Guarantee or irrevocable Letter of credit (as perproforma enclosed) as Contract Performance Security with theEMPLOYER which will be refunded after the expiry of DEFECTSLIABILITY PERIOD.24.2 CONTRACTOR can furnish the Contract Performance Security inthe form of Demand Draft or through a Bank Guarantee orthrough an irrevocable Letter of Credit from any Indian scheduledbank or a branch of an International bank situated in India andregistered with Reserve Bank of India as scheduled foreignbank. However, other than the Nationalised Indian Banks, thebanks whose BGs are furnished, must be commercial bankshaving net worth in excess of Rs. 100 crores and a declarationto this effect should be made by such commercial bank either inthe bank guarantee itself or separately on a letter head.The bank guarantee or the Letter of Credit shall be submitted inthe prescribed format.24.3 If the CONTRACTOR/SUB-CONTRACTOR or their employees orthe CONTRACTOR’s agents and representatives shall damage,break, deface or destroy any property belonging to theEMPLOYER or others during the execution of the CONTRACT,the same shall be made good by the CONTRACTOR at his ownexpenses and in default thereof, the ENGINEER-IN-CHARGEmay cause the same to be made good by other agencies andrecover expenses from the CONTRACTOR (for which thecertificate of the ENGINEER- IN-CHARGE shall be final).24.4 All compensation or other sums of money payable by theCONTRACTOR to the EMPLOYER under terms of thisCONTRACT may be deducted from or paid by the encashment orsale of a sufficient part of his Contract Performance Security orfrom any sums which may be due or may become due to theCONTRACTOR by the EMPLOYER of any account whatsoeverand in the event of his Contract Performance Security beingreduced by reasons of any such deductions or sale of aforesaid,the CONTRACTOR shall within ten days thereafter make good incash, bank drafts as aforesaid any sum or sums which may havebeen deducted from or realised by sale of his ContractPerformance Security, or any part thereof. No interest shall bepayable by the EMPLOYER for sum deposited as ContractPerformance Security.24.5 Failure of the successful bidder to comply with the requirements ofthis Clause shall constitute sufficient grounds for the annulment of