GAIL (India) Limited MECON LIMITED

The decision of the ENGINEER-IN-CHARGE in regard toapplicability of Price Reduction Schedule shall be final andbinding on the CONTRACTOR.27.2 All sums payable under this clause is the reduction in price due todelay in completion period at the above agreed rate.27.3 Bonus For EarlyCompletion (*)27.3 BONUS FOR EARLY COMPLETIONIf the Contractor achieves completion of Works in all respect priorto the time schedule stipulated in the SCC, the Employer shallpay to the Contractor the relevant sum, if mentioned specificallyin SCC, as bonus for early completion. The bonus for earlycompletion, if provided specifically in SCC, shall be payable tothe maximum ceiling of 2 ½ % of the total contract price.(*) Partial earlier completion may not always produce net benefits tothe Employer, for example where utilization of the completedWorks requires (a) the fulfillment of all parts of the Contract (e.g.the training of personnel); or (b) the completion of all Sections(e.g. in pipeline laying, where early completion of the laying ofpipeline would not be useful if the compressor is still underinstallation); or (c) certain seasonal effects to take place (e.g.onset of the rainy season, for impounding a reservoir); or (d)other circumstances. Also a more rapid drawdown of budgetedfunds may be required. All such factors should be consideredprior to the inclusion of a bonus clause in the Contract.28 Rights of the employer toforfeit contractperformance security:28.1 Whenever any claim against the CONTRACTOR for the paymentof a sum of money arises out or under the CONTRACT, theEMPLOYER shall be entitled to recover such sum byappropriating in part or whole the Contract Performance Securityof the CONTRACTOR. In the event of the security beinginsufficient or if no security has been taken from theCONTRACTOR, then the balance or the total sum recoverable,as the case may be shall be deducted from any sum then due orwhich at any time thereafter may become due to theCONTRACTOR. The CONTRACTOR shall pay to theEMPLOYER on demand any balance remaining due.29 Failure by the contractorto comply with theprovisions of thecontract:29.1 If the CONTRACTOR refuses or fails to execute the WORK orany separate part thereof with such diligence as will ensure itscompletion within the time specified in the CONTRACT orextension thereof or fails to perform any of his obligation underthe CONTRACT or in any manner commits a breach of any ofthe provisions of the CONTRACT it shall be open to theEMPLOYER at its option by written notice to the CONTRACTOR:a) TO DETERMINE THE CONTRACT in whichevent the CONTRACT shall stand terminated and shallcease to be in force and effect on and from the dateappointed by the EMPLOYER on that behalf, whereuponthe CONTRACTOR shall stop forthwith any of theCONTRACTOR's work then in progress, except suchWORK as the EMPLOYER may, in writing, require to bedone to safeguard any property or WORK, orinstallations from damage, and the EMPLOYER, for itspart, may take over the work remaining unfinished by theCONTRACTOR and complete the same through a fresh