GAIL (India) Limited MECON LIMITED

the bidding documents. The Contract Performance Security shall be in the form of eitherBanker’s Cheque or Demand Draft or Bank Guarantee or Letter of Credit and shall be inthe currency of the Contract.40.2 The contract performance security shall be for an amount equal to 10% of the value ofthe contract towards faithful performance of the contractual obligations andperformance of equipment. This Bank Guarantee/ DD/ Letter of Credit shall be from anyIndian scheduled bank or a branch of an International bank situated in India andregistered with Reserve bank of India as scheduled foreign bank. However, in case ofbank guarantees from banks other than the Nationalized Indian banks, the bank mustbe a commercial bank having net worth in excess of Rs. 100 crores and a declaration tothis effect should be made by such commercial bank either in the Bank Guarantee itselfor separately on its letterhead. This Bank Guarantee shall be valid for a period as statedin Article-24 of General Conditions of The Contract.40.3 Failure of the successful bidder to comply with the requirements of this article shallconstitute sufficient grounds for the annulment of the award and forfeiture of the bidsecurity, in which event GAIL may award the order to the next lowest evaluated bidderor call for new bids.41. Corrupt or Fraudulent Practices41.1 GAIL/ MECON requires that bidders/ contractors observe the highest standard of ethicsduring the execution of contracts. In pursuance of this policy, the Employer :a) defines, for the purposes of this provision, the terms set forth below as follows :i) “corrupt practice” means the offering, giving or soliciting of anything ofvalue to influence the action of a public official in the procurementprocess or in contract execution; andii)“fraudulent practice” means a misrepresentation of facts in order toinfluence a procurement process or the execution of a contract to thedetriment of the Employer, and includes collusive practice among bidders(prior to or after bid submission) designed to establish bid prices atartificial non-competitive levels and to deprive thc Employer of thebenefits of free and open competition;b) will reject a proposal for award if it determines that the bidder recommended foraward has engaged in corrupt or fraudulent practices in competing for thecontract in question;c) will declare a firm ineligible and put on holiday, either indefinitely or a for astated period of time if it at any time determines that the firm has engaged incorrupt or fraudulent practices in competing for, or in executing a contract.\\Rajesh\RAJESH\Cavery\Tender\Construction Tender-Vol - I of II.doc