GAIL (India) Limited MECON LIMITED

CONTRACTOR shall be liable to pay compensation at the rate of 1% (One percent) of the estimated cost of the whole WORK, forevery week limited to a maximum of 10% (ten percent) of the valueof the whole WORK, while his failure to do so shall continue and inthe case of any such failure the ENGINEER-IN-CHARGE may onexpiry of notice period rectify or remove and re-execute the WORKor remove and replaced with others, the materials or articlescomplained of to as the case may be at the risk and expense in allrespects of the CONTRACTOR. The decision of theEngineering-in-charge as to any question arising under this clauseshall be final and conclusive.77 Suspension of works: 77.1 i) Subject to the provisions of sub-para (ii) of this clause, theCONTRACTOR shall, if ordered in writing by theENGINEER-IN-CHARGE, or his representative, temporarilysuspend the WORKS or any part thereof for such writtenorder, proceed with the WORK therein ordered to besuspended until, he shall have received a written order toproceed therewith. The CONTRACTOR shall not beentitled to claim compensation for any loss or damagesustained by him by reason of temporary suspension of theWORKS aforesaid. An extension of time for completion,corresponding with the delay caused by any suchsuspension of the WORKS as aforesaid will be granted tothe CONTRACTOR should he apply for the same providedthat the suspension was not consequent to any default orfailure on the part of the CONTRACTOR.ii)In case of suspensions of entire WORK, ordered in writingby ENGINEER-IN-CHARGE, for a period of more thantwo months, the CONTRACTOR shall have the option toterminate the CONTRACT.78 Employer may do part ofwork:78.1 Upon failure of the CONTRACTOR to comply with any instructionsgiven in accordance with the provisions of this CONTRACT theEMPLOYER has the alternative right, instead of assuming chargeof entire WORK, to place additional labour force, tools, equipmentsand materials on such parts of the WORK, as the EMPLOYER maydesignate or also engage another CONTRACTOR to carry out theWORK. In such cases, the EMPLOYER shall deduct from theamount which otherwise might become due to the CONTRACTOR,the cost of such work and material with ten percent (10%) added tocover all departmental charges and should the total amount thereofexceed the amount due to the CONTRACTOR, the CONTRACTORshall pay the difference to the EMPLOYER.79 Possession prior tocompletion:80 (Defects liability period)twelve months period ofliability from the date of79.1 The ENGINEER-IN-CHARGE shall have the right to takepossession of or use any completed or partially completed WORKor part of the WORK. Such possession or use shall not be deemedto be an acceptance of any work completed in accordance with theCONTRACT agreement. If such prior possession or use bythe ENGINEER-IN- CHARGE delays the progress of WORK,equitable adjustment in the time of completion will be made and theCONTRACT agreement shall be deemed to be modifiedaccordingly.80.1 The CONTRACTOR shall guarantee the installation/WORK for aperiod of 12 months from the date of completion of WORK ascertified by the ENGINEER-IN-CHARGE which is indicated in the