2. CPWD CONTRACTS
Clause 2 (compensation for delay)
Fails to maintain progress
Fails to complete work as per schedule
Liable to pay agreed compensations
Amount
Compensation for delay:
@ 1.5% per month of delay to be computer on
per day basis
Not more than 10% of tendered value
3. compensation for delay
Amount of compensation may be adjusted or
set off against any some payable
With holding amount if fails to achieve mile
stone. Withheld amount to be adjusted against
the compensation levied at the final grant of
extension
If make up the progress subsequently,
withheld amount to be released
4. INCENTIVE FOR EARLY
COMPLETION
Clause 2A
Complete the work ahead of schedule
Bonus @ 1% of tendered value per month
computed on daily basis payable to contractor
Not more than 5 of tendered value
Amount of bonus payable along with final bill
on completion of work.
5. DETERMINATION OF
CONTRACT (before completion
date)
Clause -3
Causes – delay
- inferior workmanship
- claims for damages
- violation of any other promise of contract
Determination of contract – after giving notice:
i) Omit to comply with the notice given to contractor to rectify,
reinstruct or replace any defective work.
ii) Suspended the progress of work without any reasonable
cause and unable to secure completion of work and
continues even after notice.
iii) Fails to complete the work within stipulated date
Contd.
6. DETERMINATION OF
CONTRACT (before completion
date) contd.
iv) Persistently neglects to carry out his obligations
under the contract/commits default
v) Contractor offers or give or agree to give any
person any gift or inducement to favour him
vi) Commission has been paid or agreed to be paid
by him unless they are previously disclosed
vii) Secured contract by wrong tendering or by any
other non-bonafide methods
viii) Becomes insolvent /company woundup
ix) Asignes, transfers or sublets or attempts to do
so.
7. DETERMINATION OF
CONTRACT (before completion
date)
Consequences
To determine the contracts
SD & PG liable to be forfeited
Measure the work and get the balance work
executed through other contractor
Liability of contractor
SD & PG liable to be forfeited
No claim for compensation
Only certified work by the E-in-C is payable.
8. CLOSURE OF CONTRACT NOT
STARTED
Clause 3A
Work not started for reasons not with in the
control of contractor within
1/8 of time of completion or 1 month
whichever is more
Either partly may close the contract PG of the
contractor to be returned
Works up to Rs. 45 lacs – 15 days
45 lacs and upt to Rs. 2.5 crore – 21 days
More than 2.5 crore – 30 days
9. CLOSURE OF CONTRACT NOT
STARTED
Consequences:
PG not returned, simple interest @ 0.25% per
month payable to contractor
Compensation for damages @ 0.25% of
tendered amount & max upto Rs. 10 lacs
10. COMPENSATION
Clause 4
If powers under clause (3) not exercised
E-in-C if he so desires after giving notice
May use as on hire all tools, plants, materials,
stores belonging to the contractor on work & pay
to the contractor at contract rates/market rates
Remove such tool plants materials etc. at the
contractor's expenses or sell them by auction or
private sale on account of the contractors
certification of E-in-C as to expresses of proceeds
shall be final
11. PROGRESS MONITORING
Clause – 5
Time/extended time essence of contract
If failure to start govt. may be forfeit PG and EM
Clause – 5.1
Contractor to submit time and progress chart
and get approved.
More than 5 crores use PM Software
5 crores to 20 crores – MS projects
More than 20 crores use Primevera software
12. PROGRESS MONITORING
Clause 5.1
Programme chart:
a) Sequence of activities
b) PERT/CPM/BAR Chart
c) Procurement of materials
If progress is lacking, E-in-C may ask revised PC contractor
to submit within 7 days
For delays recovery @ 2500/perday for contracts upto Rs. 20
crores
Recovery @ 5000/perday for contracts above Rs. 20 crores
Submit proper report monthly failure impose recovery of
2500/5000
13. EXTENSION OF TIME
Clause 5.2
Work delays by
i) Force majure/act of God
ii) Abnormally bad weather
iii) Fire
iv) Commotion
v) Delay attributable to government
vi) Beyond the control of contractor
Contractor to give notice to Govt.
Request for rescheduling and extension of time
Govt. (authority) to give fair and reasonable extension of time
Authority to take a balance view and delays attributable to both
parties should be mentioned in EOT
14. FORECLOSURE (Clause -13) (due
to abandonment or reduction in
scope of work)
On reduction of scope of work E-in-C shall
give notice to contractor
Contractor to act accordingly
Contractor not entitled for compensation for
contractor’s profit
He will be paid for work executed
15. FORECLOSURE (Clause -13) (due
to abandonment or reduction in
scope of work)
He will be paid further:
a) On prepatary works 9nuts, roads)
b) Govt. will take over materials and cost shall be paid
c) Govt. materials will be taken back giving allowance for
wastage, paid for transportation
d) For T&P from site to permanent stores
e) Reasonable compensation for repatriation of staff
Contractor to submit books of accounts and relevant
documents
(a+b+c+d+e) not more than 2% of the work remain
incomplete
Compensation for damages will be paid @ .5% of the work
remaining incomplete.
16. Carrying out part work at risk and
cost of contractor (clause – 14)
Contractor makes defaulter doesn't execute any part
of work
Continues to do so after notice
Violates term and condition of contract
Fails to complete/the work/part of the time with
stipulated period
Gives notice to contractor to take the part work/part
incomplete work and of hands of contractor
E-in-C have power to
Take possession of site, materials, T&P
Carryout part work/incomplete work at risk & cost of
contractor
17. Carrying out part work at risk and
cost of contractor (clause – 14)
E-in-C will determine
Recoverable amount from contractor
Contractor liability on account of loss and damage
suffered by government not more than 10% of
tendered value
If the expenses by government is less than the
amount payable to contract (@ agreement rates)
difference not payable.
Excess expenditure to be recovered from contractor
If contractor fails to pay within 30days, e-in-C shall sell
any or all the contractor’s material and T&P etc.
Balance as per T/C of contract
No compensation to contractor
18. SUSPENSION OF WORK (Clause-
15)
E-in-C gives in writing to suspend work for reasons
a) Default of contracts
b) Reasons other than default of contractor
c)For safety of work
Contractor shall protect the work during this period
For b) and c) above
Contractor entitled for extension of time for such period +25%
If exceeds 30 days contractor entitled for wages of
staff/labour sitting idle
+ 2% indirect expenses
Contractor to submit claim with in 15 days
19. SUSPENSION OF WORK (Clause-
15)
If work is suspended for 90 days for reasons b)
and c) the contracts to give notice to government
within 10 days after expiry of 15 days
Contractor if treats it as abandonment by Govt,
shall have no claim for compensation on account
of loss of profit.
Contractor is entitled for:
a) Salaries and wages of employees/labours at site
remaining idle
b) +2% indirect charges.
20. Compensation for delay in supply
of Govt. materials (Clause 15 A)
No compensation if delay is beyond the
control of Govt.
Extension of time to be granted
21. DEFECT LIABILITY PERIOD
(Clause – 17)
Defect liability period 6 month, less than work
Rs. 10 lacs
Defect liability period 12 month, more than
work Rs. 10 lacs
Liable for damages during defect liability
period
All defects to be made good during the period
If not firm the SD of the contractor
For road work 50% of SD to be refunded after
six months
22. SETTLEMENT OF DISPUTES
(Clause – 25)
Arbitration clause:
All questions and disputes during the progress of work, after
cancellation, terminiation, completion/abandonment
Any dispute, refer it to SE within 15 days, SE to reply within
30 days
If SE fails or contractor is dissatisfied appeal to CE within 30
days, CE will hear the contractor. Give his decision within 30
days.
If dissatisfied, appeal before the DRC (Dispute Redressal
committee). DRC will give decision within 90 days.
Dissatisfied with the decision of DRC, either party may give
notice to CE(C) within 30 days for appointments of arbitrator
failing which decision shall be final/binding.
23. SETTLEMENT OF DISPUTES
(Clause – 25)
CE(C) shall refer the matter to sole arbitrator
Contractor to give list of disputes with amounts
claimed
If the contractor does not request for
appointment of arbitrator after 120 days of
receiving intimation of final bills, the claims
becomes time barred.
Arbitration and conciliation Act- 1996
applicable
Where claim exceeds Rs. 1 lakh, arbitrator to
give reasons.