05-IMPORTANT CLAUSES



IMPORTANT CLAUSES

IN STATE PWD DEPARTMENTS

Clause 50 : Contractors Risk and insurance:

The work executed by the contractor under the contract shall be maintained at the contractors risk until the work is taken over by the Executive Engineer. The contractor shall accordingly arrange his own insurance against fire and other usual risks during such period unless otherwise specified.

Provided however that the contractor shall not be liable for all or any loss or damage occasioned by or arising out of acts of God, and in Particular unprecedented flood volcanic eruption, earthquake or other convulsion or nature invasion, the act of foreign enemies hostilities or warlike operations (before or after declaration of war) rebellion, military or usurped power.

Clause : 58 : Date of Commencement and Completion:

On notification or possession of the Site (or premises) being given to the contractor by letter registered for acknowledgment as provided in paragraph 10 Supra, he shall forthwith begin the work, shall regularly and continuously proceed with them, and shall complete the same (except for painting or other work which, in the opinion of the Executive Engineer, it may be desirable to delay) by the date of completion as defined 1n "Articles of Agreement", subject, nevertheless, to the provisions of extension or lime mentioned in the next clause. The contractor shall under no circumstances be entitled to claim any damages from Government if he incurs any expense or liabilities to payment under the contract before the dale of commencement defined above. The contractor shall have the right to withdraw from the contract and obtain refund of his security deposit is such 1nllmallon of handling over the site is delayed more than two months from the date of acceptance of the agreement by competent authority.

Clause : 59 Delays and extension of time:

No claim for compensation on account of delays or hindrances to the work from any cause whatever shall lie, except, as hereinafter defined. Reasonable extension of time will be allowed by the Executive Engineer or by the officer competent to sanction the extension for unavoidable delays, such as may result from causes, which in the opinion of the Executive Engineer, are undoubtedly beyond the control of the contractor. The Executive Engineer shall assess the period of delay or hindrance caused by any written instructions Issued by him, at twenty five percent in excess of the actual working period so lost.

In the event of the Execu1ive Engineer failing to Issue necessary instructions and thereby causing delay and hindrance to the contactor, the latter shall have the right to claim and assessment of such delay by the Superintending Engineer of the Circle whose decision will be final and binding. The contractor shall lodge in writing with the Executive Engineer as statement of claim for any delay or hindrance referred to above, within fourteen days from its commencement, otherwise no extension of time will be allowed.

Whenever authorized alterations or additions made during the progress of the work are of such a nature in the opinion of the Executive Engineer as to justify and extension of time in consequence thereof, such extension will be granted in writing by the Executive Engineer or other competent authority when ordering such alterations of additions.

Clause 60: Delays In commencement or progress or neglect of work and forfeiture of earnest money, security deposit and withheld amounts:

(a) Time shall be considered as of the essence of the contract If, at any time the Executive Engineer shall be of the opinion that contractor is delaying commencement of the work or violating any of the provisions of the contract or is neglecting or delaying the progress of the work as defined by the tabular statement "Rate of progress" in the “Articles of Agreement", he shall so advise the contractor in writing and at the same time, demand compliance. If the contractor neglects to comply with such demand within seven days after receipt of such notice, it shall then or at any lime thereafter, be lawf ul for the Executive Engineer to determine the contract, which determination shall carry with it the forfeiture of the Security Deposit and the total of the amount  withheld under Clause 68 below, together with the value of such work as may have been executed and not paid for, or such proportion of such total sums, as shall be assessed by the Executive Engineer.

(However, any authorities higher in rank than the Executive Engineer may, in his absolute discretion, waives or modify any penalty or forfeiture imposed by the Executive Engineer, under the provisions of the clause).

(b) If, however, the Executive Engineer notwithstanding the failure of the contractor to comply with the demand referred to in sub- clause (a) of this clause or failure to maintain the “Rate of progress” specified in the ‘Articles of Agreement” plus any extension in Clause 59, shall permit the whole or such part of the work, such permission shall not be deemed to be a waiver in any respect by the Executive Engineer of the right of forfeiture under this clause:

Provided however that any such forfeiture under this sub-clause shall not exceed 5 per cent of the total of the contract amount.

Provided however that any authority higher in rank than the Executive Engineer may in his absolute discretion waive or modify any penalty or forfeiture imposed by the Executive Engineer under the provisions of this clause.

(c) It shall be further right of the Executive Engineer, under this clause, at any time that “Rate of Progress” in the agreement is not maintained to give any part of the work to any other contractor at his discretion, in order to maintain the “rate of Progress” upon the completion of that part of the work that is withdrawn, the Executive Engineer shall certify the amount of expenditure incurred by the department for getting it competed by another contractor or which would have been due to contractor on the completion of that part of the work by him, the difference shall not be paid to the contractor. [Should, however the former executed the latter, the difference shall be recovered from the contactor by the Government, provided however that such a recovery shall not exceed 5% of the total contract amount.

[Note : The Contractor who makes a standing security deposit of Rs. 1,00,000 9rs. One Lakh) with the Chief Engineer under whom he wishes to tender for works is eligible for concessional rates of Earnest Money Deposit and detention from bills. However, for the purpose of forfeiture under the above clause, security deposit will be reckoned at the normal rate, assuming that there is no standing security and not at the concessional rate].

Clause  61 : Suspension of the works by the Contractor :

If, the contractor  (except on account of  any legal restraint not occasioned by his own willful act or default or orders from Government preventing  the continuance  of  act or  default or  orders from Government preventing the continuance of the extension of time has been sanctioned by competent authority) shall suspend the works. or sublet the work or a portion thereof without sanction of the Executive  Engineer, or in  the opinion of the  Executive Engineer  shall neglect or fail to proceed with due diligence in the performance of  his part or the contract  as laid down In the schedule rate of progress, or if he shall continue as default or repeat such default in the respects mentioned in Clause 27, the Executive Engineer shall have power to give notice in writing to the contractor requiring that the works be proceeded with in accordance with the terms of the contract. Such notice shall not  be unreasonable, or  vexatiously given and must signify that it purports to be a notice under the provisions of this clause, and must specify that act or default on the part of the contractor upon which it is based. After such notice shall have been given, the contractor shall not be at liberty to remove from the site or the works, or  from the ground contiguous thereto, any plant or materials belonging to him, which shall have been placed thereon for the purpose of the  work; and Government shall have a lien upon all such plant and materials, to subsist from the date of such notice being given until the notice shall have been complied with. The Government shall have power to post watchman at the site of the works and or the ground contiguous thereto in order to prevent the removal of any plant or materials upon which the Government shall have a lien. If the contractor shall fail, for fourteen days after such notice has been given to comply with the same to the satisfaction of the Executive Engineer as certified by him in wiring, Government may enter upon and take possession of the works and site, and of all such plant and materials thereon (or any ground contiguous thereto) and all such plant and materials as above mentioned shall thereupon be at the disposal of Government absolutely, for the purpose of completing the work.

If Government shall exercise the above power to enter upon the works and take possession of the works, plant and materials they may engage any other person to complete the works, and exclude the contractor, his agents and servants from entry upon or access to the same, except that the contractor or any person nominated by him may have access at all reasonable limes to inspect, survey and measure the works already executed by him. And Government shall thereupon take such steps as they may consider necessary for completing the works without  undue delay or expense, using, for that purpose the plant and materials above mentioned and obtain such additional plant and materials as the Executive Engineer shall decide is necessary for the prosecution and competition of the work. Upon the completion of the works, the Executive Engineer shall certify the amount of the expenses property incurred consequent on, and incidental to, the default of the contractor as aforesaid and in having the works completed by other persons having credited the contractor with the value of the materials utilized as aforesaid.  Should the amount so certified be less than the amount which would have been due to the contractor on the completion of the works by him the difference shall not be paid to the contractor by Government, should the amount of the former exceed the latter, the difference shall be paid by the contractor to Government. Government shall not be liable such plant for the completion of the works under the provisions here before contained. Government may at any time give notice in writing to the contractor to remove any of his plant or materials are not removed within fourteen days after notice shall have been so given Government may remove and sell the same. 

Holding the proceeds less the cost of removal and sale, to the credit of the contractor.

Incase Government shall exercise the power contained in this clause and shall Complete the works by any other person as therein provided, the Executive Engineer, after instituting such inquiries as he may deem fit, with or without notice to the contractor, shall certify what amount (If any) had at the time or the Government exercising such power as aforesaid, been reasonably earned or would reasonably accrue to the contractor in respect or work then actually done by him in the premises and such certificate shall be final and binding on the contractor.

 Notwithstanding anything contained 1n Clause 50 above, when possession or the work and site is taken by Government in exercise or the power contained in this clause the portion or the work actually completed by the contractor in the premises shall be maintained by Government as the risk and expense of the contractor until the whole or the work is completed by other agency and possession thereof taken by Government.

Clause 72 : Contractor dying, becoming insolvent, insane, or imprisoned

In the event of the death or insanity or insolvency or imprisonment of the contractor or where the contractor being a partnership or firm becomes dissolved or being corporation goes into liquidation, voluntary or otherwise, the contract may at the option of the Executive Engineer, be terminated by notice in writing posted at the site of the works and advertised in one issue of the local District Gazette, and all accepted and acceptance works shall forthwith be measured up and paid for at the rates provided in the contract schedule where such apply, or otherwise by the most recent schedule of rates of the division approved by competent authority, to the person or persons entitled to receive and give a discharge for the payment.

Note:Please refer any Latest  Ammendments in the Above Clauses by the respective Governments.

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