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E4E4--E5 CIVIL E5 CIVIL ((TECHNICAL)TECHNICAL)
Important BSNL Contract ClausesImportant BSNL Contract Clauses(Session(Session--2) 2)
WELCOME• This is a presentation for the E4-E5 Civil Technical
Module for the Topic: Important BSNL Contract Clauses
Session-2
• Eligibility: Those who have got the Upgradation from E4
to E5.
• This presentation is last updated on 21-4-2011.
• You can also visit the Digital library of BSNL to see this
topic.
For internal circulation of BSNL only
For internal circulation of BSNL only
AGENDA
Important BSNL Contract Clauses.
Provisions under various Contract Clauses.
Actions Thereof.
Clause 13
Clause 13:-Foreclosure of Contract:-(1)Foreclosure of contract due to abandonment or reduction
in scope of work.
(2)The contractor shall have no claim for payment or
compensation for reduction in scope of work; changes in
drawings, specifications, designs or any alternations as desired
by Engineer –in- Charge.
(3)Even in case, work is abandoned, this clause is applicable
thus no compensation payable.
For internal circulation of BSNL only
CLAUSE 14 & 15
Clause 14:- Suspension of work by
BSNL
It could be either due to default of contractor or due to
for reasons other than this, then specific provisons
exist in the clause for the same.
CLAUSE 15:-Inspection and supervision of work:-
Work open to inspection by QA/CTE etc & contractor
to be present for receiving instructions.
For internal circulation of BSNL only
CLAUSE 16
Clause 16 Rectification of defects:-
(1)If either E-in-C or the Sr. DDG(BW) or QA or CTE finds that
any work has not been executed properly as per contract, the
contractor shall (which shall be intimated to contractor within
six months of the completion of the work not withstanding
that the same may have been passed, certified and paid for)
forthwith rectify the work.
(2)If contractor fails, then get it done at his risk & cost &
decision of E-in-C will be final & binding.
(3) Provision of acceptance of item at Reduced rates is also
there in this clause.
For internal circulation of BSNL only
CLAUSE 17
Clause 17:-Contractor liable for defects/
damages during maintenance period:-
(1)If any damage happens to the work while in progress
from any cause or any faults appear in the work within 6
months for the contract value up to Rs.15 Lakhs
excluding road work and 12 months for the work more
than Rs.15 Lakhs, from the date of completion of work,
the contractor shall make the same good at his own
expense.
(2)The S.D. shall not be refunded before the expiry of the
above maintenance period, subject to the condition That
final bill is prepared and passed whichever is later.For internal circulation of BSNL only
CLAUSE 19
Clause 19 Labour Laws Compliance by Contractor:-
(1)Contractor to hold valid Labour license till work is
completed.
(2)Labour reports to be given on 4th & 19th of every month.
Penalty at a rate of Rs 200 for each default may be levied.
(3)Contractor to keep bldg. free from unauthorised occupancy
till it is taken over by deptt. Failure to enusre means penalty
upto 5% of tender value by SE.
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CLAUSE-25
Clause-25 Settlement of Disputes & Arbitration:-
What is a Dispute ?
(1) If the contractor considers that he is entitled to any extra
payment over and above the amounts admitted to be paid by
the BSNL.
(2)If the contractor wants to dispute the validity of any
recoveries made or proposed to be made from the contract.
The disputes which can be referred to arbitrator?
(1) The meaning of the specifications, design, drawings and
instructions.
For internal circulation of BSNL only
CLAUSE-25 Contd..
(2)The quality of workmanship or materials used on the work.
(3) Any other question, claim, right, matter or thing whatsoever
in any way arising out of or relating to the contract,
designs, drawings, specifications, estimates, instructions,
orders. Arising during the progress of the work or after the
cancellation, termination, completion or abandonment.
Process of settlement of dispute:-
(1)The contractor shall give notice in writing of his claim to the
E-in-C within 30 days from the date of any disallowance.
(2)The contractor shall be deemed to have extinguished all his
For internal circulation of BSNL only
CLAUSE-25 Contd..
rights in respect of any claims not notified to the E-in-C within
30 days.
(4)If the contractor is not satisfied with the decision of the
E- in-C, he may within 15 days of the receipt of the
decision of the E-in-C submit his claims to the conciliating
authority along with all details.
Conciliation Proceedings:-
(1)Conciliatory Authority-CE for NIT’s of powers of CE(C). SE
for NIT’s of powers of SE/EE/SDE.
(2)The party initiating conciliation shall send to the other party
a written invitation to conciliate.
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CLAUSE-25 Contd..
(3)Conciliation proceedings shall commence when the other party
accepts in writing the invitation to conciliate.
(4)If the other party rejects the invitation, or does not reply within
30 days, there will be no Conciliation Proceedings.
(5)Settlement agreement [ it has same effect as of arbitral award]
shall be drawn, if both parties are agreeing to settle the
dispute as per formulated terms of Conciliator.
(6)If a settlement does not appear possible, the Conciliator, after
consultation with the parties shall terminate the Proceedings .
(7) On failure of Conciliation Proceeding, the party, which initiated
the Conciliation shall, within a 30 days of termination
For internal circulation of BSNL only
CLAUSE-25 Contd..
give a notice to the Chief Engineer for appointment of
arbitrator.
Arbitration Proceedings:-
(1)The party invoking arbitration shall give a list of disputes
with amounts claimed in respect of each dispute along-
with the notice for appointment of arbitrator.
(2)The CE shall appoint a sole arbitrator within 30 days of
receipt of notice.
(3)The arbitration shall be conducted in accordance with the
provisions of the A & C Act 1996.
(4)The arbitrator shall adjudicate on only such disputes which
are referred to him by the appointing authority.
For internal circulation of BSNL only
CLAUSE-25 Contd..
(5) Arbitrator shall give separate award against each claim
referred to him.
(6) The arbitrator shall give reasons for the award for each dispute
referred to him.
(7) If any fees are payable to the arbitrator these shall be paid
equally by both the parties.
(8) Arbitrator shall be deemed to have entered on the reference
on the date he issues notice to both parties, calling
statement of claims and counter statement of claims.
(9) The venue of arbitration shall be fixed by arbitrator.
(10) The cost of reference and the award shall be as per the
discretion of the arbitrator.
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CLAUSE 28
CLAUSE 28:-Action where no specifications are
specified.
Action in works, where specifications are not
specified Then Follow This Sequence:-
(1)BIS specifications.
(2)Manufacturer’s specifications.
(3)District specifications.
(4)As per directions of E-IN-C.
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Clause 29
Clause 29 :-Lien/Withholding sum due
from contractor:-
(1) Lien and withholding of contractor’s payments in
respect of sum due from the contractor as per this
clause.
(2) Engineer – in - Charge is Competent to withhold
contractor ’s Payment/S.D.--- for payments/claims due
from him subject to final decision of arbitrator/courts.
Clause 29A :-Lien in respect of claims in other
contracts Payments can be withheld (lien kept) in
respect of claims, in other contracts also.
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Clause 31
Clause 31 Water and Power Supply :-
(1)Contractors shall make his own arrangement for water
and power supply and nothing extra shall be paid.
(2) He will submit No-dues certificate in the last.
Clause 31 A Departmental water/power supply:-
(1) If Departmental water supply is given for work:-1%
water charges on gross amount of work done shall be
recovered.
(2) Similarly contractor to install sub meter and extend
power supply from tapping point & cost will be recovered
from his bills.
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CLAUSE 36
CLAUSE 36 Employment of Technical Staff and
employees:-
(1) The technical representative and/or the contractor shall be
actually available at site on at least 2 working days,
every week.
(2)There shall be no objection if the representative/agent
looks after more than one work and not more than three
works at the same station.
(3)Further if the contractor fails to appoint a suitable
technical representative, the E-in-C shall have full powers
to suspend the execution of the work until such
date.
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CLAUSE 36 Contd..
(4) Contractor to submit Certificates with every bill.
(5) If the contractor who himself has such qualifications,
it will not be necessary for the said contractor to appoint
such a principal technical representative but the
contractor shall designate and appoint a responsible
agent to represent him and to be present at the work
whenever the contractor is not in a position to be
present.
All the provisions applicable to the principal
technical representative under the Clause will also
be applicable in such a case to contractor or his
responsible agent.For internal circulation of BSNL only
CLAUSE 36 Contd..
Employment of Technical staff by contractor shall be as
per following:-
Works costing Technical Staff
(1)More than Rs. 5.0 lacks but less--- Diploma in Civil Engg.
than Rs. 10.00 lacks.
(2)Rs. 10 lacks and above but ----B.E. Or Retired A.E( with
less than Rs. 60.00 lacks D.C.E.)
(3)Rs. 60.00 lacks and above ----Pr. Tech. Representative of
organization should be minimum Graduate Civil Engineer
with ________ Years minimum experience or Retired E.E.
(at least with D.C.E.).Experience should be decided by NIT
issuing authority.
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CLAUSE 36 Contd..
Contractor before commencement of work shall give the Name,
Age, Experience, Qualification, Address, and Certificates for
Engineers/Technical staff employed for the work. If contractor
himself is a qualified engineer-not necessary to employ site
engineer.
Recovery for not employing --a) Rs.4000/- month
Site Engineer for Graduate Engineer.
b) Rs. 2000/- month
for Diploma holder.
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CLAUSE 36 Contd..
CLAUSE 42:-Recovery for inadequate consumption of
Materials:-
As per Schedule ´F´
Return of Material & for Excess Materials.
Store materials issued to contractor (cement, steel etc. )
have to be returned by the contractor after completion of work.
For theoretical calculations of materials - Variation in
quantities allowed as per Schedule F.
Cement :
For works not more than Rs. 5.0 lacs - 3% minus
For works more than Rs.5.0 lacs - 2% minus
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CLAUSE 36 Contd..
Steel reinforcement & Sections:- 2% minus.
(1)In case of steel 3% wastage due to cutting into
pieces is (on plus side) allowed for calculating
theoretical quantities.
(2)For the balance materials, if not returned by
the contractor, recovery at the rate specified in
schedule F is made.
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CLAUSE 45
CLAUSE 45:- Release of S.D. After Labour Clearance:-
(1)Contractor produces a clearance certificate from the
Labour Officer.
(2) If no complaint is pending, on record till after 3
months after the completion of the work and/or no
communication is received from the Labour Officer to
this effect till six months after the date of
completion, it will be deemed to have received the
clearance certificate and the Security Deposit will be
released, if otherwise due.
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CLAUSE-46
CLAUSE-46 Insurance:-
Main Provisions:-(1)The Contractor shall at his own cost
take insurance in the joint names of the BSNL and
the contractor.
(2)With any of the subsidiary of the GIC of India.
(3)To cover for all time during contract i.e. Stipulated,
extended and the defect liability period.
(4)The contractor shall submit the insurance policies to the
E in-C within 1 week of signing of the agreement along
with the receipt of premium.
For internal circulation of BSNL only
CLAUSE-46 Contd..
(1)Contractor’s All Risks:-
The contractor shall insure the work for a sum of
Contract value against ALL RISKS claims,
proceedings, loss or damages, costs, charges and
expenses from whatsoever cause arising out of or
in consequence of the execution and maintenance
of the work for which the contractor is responsible
under the contract.
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CLAUSE-46 Contd..
(2)Workman Compensation & Employers Liability
Insurance:-
(1)This insurance shall be effected for all the
contractor’s employees engaged in the
performance of the contract
(2)The BSNL shall not be liable in respect of any
damages or compensation payable at law in
respect of or in consequence of any accident or
injury to any workman or any other person in the
employment of the contractor .
For internal circulation of BSNL only
CLAUSE-46 Contd..
(3)Third Party Insurance.:-
(1)Against damages or injuries of BSNL Property and
Employees where he is working.
(2)Against damages to BSNL Properties, or any third party
occurred during movement of T&P and Materials.
(3)Contractor should indemnify the BSNL against all
claims, compensations under the provisions of
Payment of Wages act, Minimum wages act,
Employer’s Liability act, The Workman’s
Compensation act, Industrial Dispute act and Maternity
Benefit act.
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CLAUSE-46 Contd..
(4)Remedy on the contractor’s failure to insure:-
If the contractor fails to keep in force the insurance
referred, E-in-C may keep in force any such
insurance and pay such premiums and deduct the
amount so paid from the contractor.
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