33.2 The notification <strong>of</strong> award will constitute the formation <strong>of</strong> the Contract, subject only to thefurnishing <strong>of</strong> a performance security in accordance with the provisions <strong>of</strong> Clause 34.33.3 The Agreement will incorporate all agreements between the Employer and the successful Bidder.It will be signed by the Employer and kept ready for signature <strong>of</strong> the successful bidder in the<strong>of</strong>fice <strong>of</strong> employer within 28 days following the notification <strong>of</strong> award along with the Letter <strong>of</strong>Acceptance. Within 21 days <strong>of</strong> receipt, the successful Bidder will sign the Agreement and deliverit to the Employer.33.4 Upon the furnishing by the successful Bidder <strong>of</strong> the Performance Security, the Employer willpromptly notify the other Bidders that their Bids have been unsuccessful.34. Performance Security34.1 Within 21 days <strong>of</strong> receipt <strong>of</strong> the Letter <strong>of</strong> Acceptance, the successful Bidder shall deliver to theEmployer a Performance Security in any <strong>of</strong> the forms given below for an amount equivalent to 5%<strong>of</strong> the Contract price plus additional security for unbalanced Bids in accordance with Clause 29.5<strong>of</strong> ITB and Clause 52 <strong>of</strong> Conditions <strong>of</strong> Contract:- a bank guarantee in the form given in Section 8; or- Bank draft, in favour <strong>of</strong> Executive Engineer, Chopal Division, HPPWD Chopal, payableat Chopal.34.2 If the performance security is provided by the successful Bidder in the form <strong>of</strong> a Bank Guarantee,it shall be issued either (a) at the Bidder's option, by a Nationalized/Scheduled Indian bank or (b)by a foreign bank located in India and acceptable to the Employer or (c) by a foreign bank througha correspondent Bank in India [scheduled or nationalized].34.3 Failure <strong>of</strong> the successful bidder to comply with the requirements <strong>of</strong> sub-clause 34.1 shallconstitute a breach <strong>of</strong> contract, cause for annulment <strong>of</strong> the award, forfeiture <strong>of</strong> the bid security,and any such other remedy the Employer may take under the contract, and the Employer mayresort to awarding the contract to the next ranked bidder.35 Advance Payment and Security35.1 The Employer will provide an Advance Payment on the Contract Price as stipulated in theConditions <strong>of</strong> Contract, subject to maximum amount, as stated in the Contract Data.36. Adjudicator36.1 The Employer proposes that Sh. S.P Negi (Retd. ENC) be appointed as Adjudicator under theContract, at a daily fee <strong>of</strong> Rs.2500 plus reimbursable expenses as admissible to the grade I <strong>of</strong>ficer<strong>of</strong> HP Govt. If the Bidder disagrees with this proposal, the Bidder should so state in the Bid. If inthe Letter <strong>of</strong> Acceptance, the Employer has not agreed on the appointment <strong>of</strong> the Adjudicator, theAdjudicator shall be appointed by Secretary General , Indian Roads Congress New Delhi at therequest <strong>of</strong> either party.37. Fraud and Corruption:37.1 It is the Bank’s policy to require that Borrowers (including beneficiaries <strong>of</strong> Bank loans), as well asBidders, Suppliers, and Contractors and their subcontractors under Bank-financed contracts,observe the highest standard <strong>of</strong> ethics during the procurement and execution <strong>of</strong> such contracts 1 . Inpursuance <strong>of</strong> this policy, the Bank:(a) defines, for the purposes <strong>of</strong> this provision, the terms set forth below as follows :(i) “corrupt practice” 2 is the <strong>of</strong>fering, giving, receiving or soliciting directly or indirectly, <strong>of</strong>anything <strong>of</strong> value to influence improperly the actions <strong>of</strong> another party;1 In this context, any action taken by a bidder, supplier, contractor, or a sub-contractor to influence theprocurement process or contract execution for undue advantage is improper.2 “another party” refers to a public <strong>of</strong>ficial acting in relation to the procurement process or contractexecution]. In this context, “public <strong>of</strong>ficial” included World Bank staff and employees <strong>of</strong> otherorganizations taking or reviewing procurement decisions.Contractor EE 20
(ii) “fraudulent practice” 3 is any act or omission, including a misrepresentation, thatknowingly or recklessly misleads, or attempts to mislead, a party obtain a financial orother benefit or to avoid an obligation;(iii) “collusive practices” 4 is an arrangement between two or more parties designed to achivean improper purpose, including to influence improperly the actions <strong>of</strong> another party;(iv) “coercive practices” 5 is impairing or harming, or threatening to impair or harm, directlyor indirectly, any party or the property <strong>of</strong> the party to influence improperly the actions <strong>of</strong>a party;(v) “obstructive practice” is(aa) deliberately destroying, falsifying, altering or concealing <strong>of</strong> evidence material to theinvestigation or making false statements to investigators in order to materially impede aBank investigation into allegations <strong>of</strong> a corrupt, fraudulent, coercive or collusivepractice, and / or threatening, harassing <strong>of</strong> intimidating any party to prevent it fromdisclosing its knowledge <strong>of</strong> matters relevant to the investigation or from pursuing theinvestigation, or(bb) acts intended to materially impede the exercise <strong>of</strong> the Bank’s inspection and audit rightsprovided for under sub-clause 37.1 (e) below.(b) will reject a proposal for award if it determines that the Bidder recommended for awardhas, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercivepractices in competing for the contract in question;(c) will cancel the portion <strong>of</strong> the loan allocated to a contract if it determines at any time thatrepresentatives <strong>of</strong> the Borrower or <strong>of</strong> a beneficiary <strong>of</strong> the loan were engaged in corrupt,fraudulent, collusive or coercive practices during the selection process or the execution <strong>of</strong>the contract, without the Borrower having taken timely and appropriate actionsatisfactory to the Bank to remedy the situation.(d) will sanction a firm or individual, including declaring the them ineligible, eitherindefinitely or for a stated period <strong>of</strong> time, to be awarded a Bank-financed contract if atany time determines that the they have, directly <strong>of</strong> through an agent, engaged in corrupt,fraudulent, collusive or coercive practices in competing for, or in executing, a Bankfinancedcontract; and(e)will have the right to require a provision be included in Bidding Documents and incontracts financed by the Bank loan, requiring Bidders, Suppliers, Contractors andConsultants to permit the Bank to inspect their accounts and records and other documentsrelating to the bid submission and contract performance, and have them audited byauditors appointed by the Bank.37.2 Furthermore, Bidders shall be aware <strong>of</strong> the provision stated in sub-clause 23.2 and sub-clause 59.2<strong>of</strong> the Conditions <strong>of</strong> Contract.3 a “party” refers to a public <strong>of</strong>ficial; the terms “benefit” and “obligation” related to the procurementprocess or contract execution; and the “act or omission” is intended to influence the procurement process orcontract execution.4 “parties” refers to participants in the procurement process (including public <strong>of</strong>ficials) attempting toestablish bid prices at artificial, non competitive levels.5 a “party” refers to a participant in the procurement process or contract execution.Contractor EE 21