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Section 8 – Particular Conditions of Contract 8-1

Section 8 - Particular Conditions of Contract


The Conditions of Contract comprise the:
• "General Conditions" of Contract (GCC), which form part of the "Conditions of Contract for
Design, Build and Operate Projects”(First Edition 2008) published by the Fédération
Internationale des Ingénieurs-Conseils (FIDIC), and
• The “Particular Conditions” of Contract (PCC) which comprise:
o The "Particular Conditions Part A – Contract Data”, which include main data
pertaining to the Contract,
o "Particular Conditions Part B – Special Provisions", which include amendments and
additions to such General Conditions, as well as the following Appendices:
 Appendix 1 – Schedule of Payments
 Appendix 2 – Performance Damages
 Appendix 3 – Eligible Source Countries

The provisions to be found in the Particular Conditions Part B – Special Provisions take
precedence over the equivalent provisions found under the same Sub-Clause number(s) in the
General Conditions, and the provisions of the Particular Conditions Part A – Contract Data take
precedence over the Particular Conditions Part B – Special Provisions.

Any reference to Clauses and Sub-Clauses provided in the Particular Conditions shall be
construed as reference to the same Clauses and Sub-Clauses in the General Conditions.

Contract Package: WBDWSIP/DWW/NCB/BKP/01/2017-18


Section 8 – Particular Conditions of Contract 8-2

Particular Conditions Part A: Contract Data


Sub-Clause Data to be given Data
1.1.1 Amount of Asset Replacement Not applicable
Fund

1.1.2 Asset Replacement Fund Not applicable

1.1.3 Asset Replacement Schedule Not applicable

1.1.24 Where the Contract allows for 10%


Cost Plus Profit, percentage
profit to be added to the Cost:
1.1.26 Cut Off Date(number of days 90 days
after the Time for Completion
of Design-Build):
1.1.32 Employer’s name and address Public Health Engineering Department
Government of West Bengal
New Secretariat Building,1.K.S.Roy Road,
Kolkata 700001, secy@wbphed.gov.in
1.1.35 Employer’s Representative’s Project Director
name and address West Bengal Drinking Water Sector
Improvement Project
Public Health Engineering Department
Government of West Bengal
1st Floor, Utility Building, Tank No.-3
Action Area-IA, New Town,
Kolkata 700156
E-mail: pd.pmu.adb@wbphed.gov.in
1.1.66 Retention Period The Retention Period shall be 365 days from
the date of issue of the Commissioning
Certificate
1.1.70 Parts of the Works that shall Not applicable
be designated a Section for
the purposes of the Contract
1.1.78 Time for Completion of 1095 days
Design-Build
1.3 Agreed methods of electronic Only by facsimile or electronic mail.
transmission
1.3 Address of Employer for Project Director
communications: West Bengal Drinking Water Sector
Improvement Project
Public Health Engineering Department
Government of West Bengal

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Section 8 – Particular Conditions of Contract 8-3

Sub-Clause Data to be given Data


1st Floor, Utility Building, Tank No.-3
Action Area-IA, New Town,Kolkata 700156
E-mail: pd.pmu.adb@wbphed.gov.in
1.3 Address of Employer’s Project Director
Representative for West Bengal Drinking Water Sector
communication Improvement Project
Public Health Engineering Department
Government of West Bengal
1st Floor, Utility Building, Tank No.-3
Action Area-IA, New Town, Kolkata 700156
E-mail: pd.pmu.adb@wbphed.gov.in
1.3 Address for communications Project Implementation Unit (PIU), Bankura
West Bengal Drinking Water Sector
Improvement Project
Rabindra Sarani, Jail More, Patpur, Tamlibundh
P.O.: Bankura, Bankura-722101
Phone: +91 (03242) 241008, Fax: +91 (03242)
250695
E-mail id: piubankura.adb@wbphed.gov.in
1.4 Contract shall be governed by The laws of the state of West Bengal, India.
the law of
1.4 Ruling Language English.
1.4 Language for communications English.
2.1 After receiving the Letter of 7 days from the date of the Letter of Acceptance
Acceptance, the Contractor for surveys and design. Right of access to
shall be given right of access complete site will be given progressively based
to all or part of the Site within: on the contractor’s approved work schedule
after the submission of Performance Security
and the required Insurance Cover.
4.2 Performance Security Ten (10) percent of the Accepted Contract
Percent and currency Amount in the currencies and proportions of the
Accepted Contract Amount in the Letter of
Acceptance.
5.1 Period for notification of errors, 120 days from the Commencement Date.
faults and other defects
5.2 Contractor’s documents As detailed in Section 6 Employer’s
requiring approval Requirements
5.2(a,i) Contractor’s Documents Documents are to be reviewed within 42 days of
review and approval period receipt.
6.5 Locally recognized days of As per regulation of state of West Bengal, India
rest As necessary to fulfill the requirements of the
Normal working hours on the Contract, subject to the Indian and state of West

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Section 8 – Particular Conditions of Contract 8-4

Sub-Clause Data to be given Data


Site Bengal’s Labour Laws and Regulations.
8.2 Period of the Operation 730 days from the issue of the Commissioning
Service Certificate
9.2 Time for Completion of As defined above under Sub-Clause 1.1.78
Design-Build
9.6 Delay damages (percent of the 0.05%
Accepted Contract Amount per
day of delay):
9.6 Maximum amount of delay 10%
damages (percent of the
Accepted Contract Amount)
10.6(a) Maximum compensation 100% of the Accepted Contract Amount for
payable by the Contractor Operation Service
10.6(b) Maximum compensation 100% of the Accepted Contract Amount for
payable by the Employer Operation Service
10.7 Performance damages See Part B, Appendix 2
The maximum amount of
damages payable by the 20% of the Contract Amount for Operation
Contractor in respect of failure Service
to meet the standards
specified in the Schedule of
Guarantees shall not exceed
13.5 Percentage rate to be applied As defined in the Price Schedules.
to Provisional Sums
14.2 Amount of Advance Payment As stated in Appendix 1 (Schedule of
(percent of Accepted Contract Payments) to the PCC Part B
Amount)

14.2 Percentage deductions for As stated in Appendix 1 (Schedule of


repayment of Advance Payments) to the PCC Part B
Payment
14.2 Currencies of payment if As stated in Appendix 1 (Schedule of
different to the currencies Payments) to the PCC Part B
quoted in the Contract
14.3 Percentage of Retention 5%
14.3 Limit of Retention Money 5% of the Accepted Contract Amount
14.6 (b) (i) Plant and Materials No Payment shall be made for Plant and
Materials when shipped, except for progress
payments as set out in Schedule of Payments.
14.6(c) (i) Plant and Materials for No Payment shall be made for Plant and
payment when delivered to the Materials when delivered to the Site, except for
Site progress payments as set out in Schedule of
Payments.

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Section 8 – Particular Conditions of Contract 8-5

Sub-Clause Data to be given Data


14.7 Minimum Amount of Interim 2% (Two percent) of the Accepted Contract
Payment Certificate Amount for the Works
Monthly payment for operation and
maintenance services of the plant (s)
14.9 Financing charges for delayed 9%
payment (annual rate
expressed in percentage):
14.17 Currencies for payment of Indian Rupees
Contract Price
14.17 Proportions of Local and Not applicable
Foreign Currencies are:
14.17 Payment of damages shall be: As stated in Sub-Clause 9.6 above and in
Appendix 2 (Performance Damages) to the PCC
Part B
14.17 Rate of Exchange Not applicable

14.19 Maximum amount of 5% of the Accepted Contract Amount


Maintenance Retention Fund
17.1 b (iii) Operation of forces of nature None
allocated to the Contractor
17.8 Total liability of the Contractor 100% of the Accepted Contract Amount
shall not exceed
19.2 (a) (i) Deductible Limits Not greater than 5 % of Accepted Contract
Amount for the Design-Build part
19.2 (a) 4 Additional sum to be insured Nil
19.2 (a) 5 Additional sum to be insured Nil
19.2 (b) Insurance for Contractor 100% of equipment replacement value
Equipment (amount required):
19.2 (c) Amount of professional liability 100% of the Accepted Contract Amount for the
insurance Design-Build
19.2 (c) Period for which professional From Commencement Date until two (2) years
liability insurance required following issuance of Contract Completion
Certificate
19.2 (d) Amount of insurance required INR 35 million
for injury to persons and
damage to property
19.2(f) Other insurances required Cargo Insurance, in the amount of 110% of the
from the Contractor CIF value of items to be imported covering loss
or damage occurring while in transit from the
supplier’s or manufacturer’s works or stores
until arrival at the Site, to the Works (including
spare parts therefore) and to the construction

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Section 8 – Particular Conditions of Contract 8-6

Sub-Clause Data to be given Data


equipment to be provided by the Contractor or
its Subcontractors.
An Insurance in the amount of 110% of the CIF
value of items to be imported in currency(ies)
the Contract Price is payable covering physical
loss or damage to the Facilities at the Site,
occurring prior to completion of the Facilities,
with an extended maintenance coverage for the
Contractor’s liability in respect of any loss or
damage occurring during the defect liability
period while the Contractor is on the Site for the
purpose of performing its obligations during the
defect liability period.
19.3 (a) Amount of fire extended cover 10% of the Accepted Contract Amount
insurance required
19.3 (d) Other insurances required by Third party insurance
law from the Contractor (give
details):
19.3 (e) Other optional insurances Nil
required from the Contractor
20.3 Date for appointment of DAB 28 days from the Commencement Date
20.3 The DAB shall comprise Three (3) members
20.4 Appointing entity (official) for President of the Indian Council of Arbitration.
DAB members, if not agreed
between Parties
20.8 Language used forarbitration Language for communications defined under
proceedings Sub-Clause 1.4
20.8(a)(i) Arbitration institution Indian Council of Arbitration
20.8(a)(ii) International arbitration in Not applicable
accordance with the arbitration
rules of the UNCITRAL

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Section 8 – Particular Conditions of Contract 8-7

Part B -Specific Provisions

Sub-Clause No. Sub-Clause title Sub-clause contents

CLAUSE 1 – GENERAL PROVISIONS

1.1.66 Retention Period Replace this Sub-Clause in its entirety by the following:
"Retention Period" means the period of 1 year after the
date stated in the Commissioning Certificate.”

1.1.72 Site At the end of subparagraph 1.1.72, add:


The Site shall also include the area of facilities provided
to Employer’s Representative and areas for storage of
Plant and Materials for the Works.

1.1.84 ADB Add new Sub-Clause as follows:


“’ADB’ means the Asian Development Bank, the
institution financing the Contract.”

1.1.85 Price Schedules Add new Sub-Clause as follows:


“‘Price Schedules’ means those Schedules incorporated
in the Contract showing the manner in which the Contract
Price is broken down into Rates and Prices.”

1.1.86 Schedule of Add new Sub-Clause as follows:


Performance
“‘Schedule of Performance Guarantees’ means the
Guarantees
Schedule incorporated in the Contract detailing the
performance standards to be achieved by the Contractor
under the Contract.”

1.13 Confidential Delete Sub-Clause 1.13 and substitute:


Details
The Contractor’s and the Employer’s Personnel shall
disclose all such confidential and other information as
may be reasonably required in order to verify the
Contractor’s compliance with the Contract and allow its
proper implementation.
Each of them shall treat the details of the Contract as
private and confidential, except to the extent necessary to
carry out their respective obligations under the Contract
or to comply with applicable Laws. Each of them shall not
publish or disclose any particulars of the Works prepared
by the other Party without the previous agreement of the
other Party. However, the Contractor shall be permitted
to disclose any publicly available information, or
information otherwise required to establish his
qualifications to compete for other projects.

1.2 Interpretation Add the following sub-paragraphs, after sub-paragraph

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Section 8 – Particular Conditions of Contract 8-8

Sub-Clause No. Sub-Clause title Sub-clause contents


(f):
“(g) The word ‘Tender’ or ‘tender’ is synonymous with
‘Bid’ or ‘bid’, and the words ‘Letter of Tender’ are
synonymous with ‘Letter of Bid’, and ‘tender documents’
with ‘bidding documents’; and
(h) The words ‘Contractor’s Proposal’ are synonymous
with ‘Contractor’s Technical Proposal’.”

1.9 Care and Supply Replace the entire third paragraph with the following
of Documents
“If a Party becomes aware of an error or defect in a
document which was prepared for use in executing the
Works, the Party shall promptly give notice to the other
Party of such error or defect.”

Inspections and Add new Sub Clause as follows:


audit by the ADB
1.16 “The Contractor shall permit the ADB and/or persons
appointed by the ADBto inspect the Site and/or the
Contractor’s accounts and records relating to the
performance of the Contract and to have such accounts
and records audited by auditors appointed by the ADBif
required by the ADB.

CLAUSE 3 – THE EMPLOYER’S REPRESENTATIVE

Management Add new Sub-Clause as follows:


Meetings
3.6 “The Employer’s Representative shall convene
management meetings in accordance with the Employer’s
Requirements, which the Employer’s Representative and
the Contractor shall attend, and which the Employer may
attend as the case may be. Minutes of the management
meetings shall be made by the Employer’s
Representative and issued to the Employer and
Contractor within 7 days of each meeting”

CLAUSE 4 – THE CONTRACTOR

4.2 Performance Replace the fourth paragraph in its entirety by the


Security following:
“The Contractor shall obtain at his cost the Performance
Security for proper performance of the Design-Build
Period, in the amounts and currencies set out in the
Contract Data.
The Contractor shall deliver the Performance Security to
the Employer within 28 days after receiving the Letter of
Acceptance, and shall send a copy to the Employer's
Representative. The Performance Security shall be
issued by an entity and from within a country (or other

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Section 8 – Particular Conditions of Contract 8-9

Sub-Clause No. Sub-Clause title Sub-clause contents


jurisdiction) approved by the Employer, and shall be
based on the sample form included in the tender
documents, or in another form approved by the Employer.
The entity shall have its origin in any eligible source
country listed in Appendix 4 to these Particular Conditions
Part B.
Without limitation to the provisions of the rest of this Sub-
Clause, whenever any portion of the Contract Price
payable in a specific currency increases by more than 25
percent, because of one increase or multiple increases as
a result of Variations, the Contractor shall, at the
Employer’s Representative's request, promptly increase
the value of the Performance Security in that currency by
an equal percentage.
The Contractor shall ensure that the Performance
Security is valid and enforceable until the end of the
Retention Period. If the terms of the Performance Security
specify its expiry date, and the Retention Period has not
come to an end by the date 28 days prior to the expiry
date, the Contractor shall extend the validity of the
Performance Security until the end of the Retention
Period. Failure by the Contractor to maintain the validity
of the Performance Security shall be grounds for
termination in accordance with Sub-Clause 15.2
[Termination for Contractor's Default].
The Employer shall not make a claim under the
Performance Security except for amounts to which the
Employer is entitled under the Contract in the event of:
failure by the Contractor to extend the validity of the
Performance Security as described in the preceding
paragraph, in which event the Employer may claim the full
amount of the Performance Security;
failure by the Contractor to pay the Employer an amount
due, as either agreed by the Contractor or determined
under Sub-Clause 3.5 [Determinations] or Clause 20
[Claims, Disputes and Arbitration], within 42 days after
this agreement or determination;
failure by the Contractor to remedy a default within 42
days after receiving the Employer's Notice requiring the
default to be remedied; or
circumstances which entitle the Employer to terminate
under Sub-Clause 15.2 [Termination for Contractor's
Default], irrespective of whether Notice of termination has
been given.
The Employer shall indemnify and hold the Contractor
harmless against and from all damages, losses and
expenses (including legal fees and expenses) resulting

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Section 8 – Particular Conditions of Contract 8-10

Sub-Clause No. Sub-Clause title Sub-clause contents


from a claim under the Performance Security which the
Employer was not entitled to make.
The Employer shall return the Performance Security to
the Contractor within 21 days after the end of the
Retention Period.”

4.2A Parent Company Add new Sub-Clause as follows:


Guarantee
“The Contractor shall arrange for his ultimate parent
company (or any other parent company as the Employer
may approve in his absolute discretion, acting
reasonably) to provide to the Employer a parent company
guarantee in the sample form set out in the tender
documents, or in another form approved by the Employer,
within 28 days after receiving the Letter of Acceptance,
and shall send a copy to the Employer's Representative.
Where the Contractor comprises a consortium of two or
more entities, they shall all cause their respective ultimate
parent companies (or other parent company or parent
companies approved by the Employer in his absolute
discretion, acting reasonably) to provide a joint and
several parent company guarantee in accordance with
this Sub-Clause.
The Contractor shall, if requested by the Employer in his
absolute discretion, provide to the Employer financial or
other information the Employer may require to satisfy
himself that the parent company is an appropriate entity
with sufficient means to satisfy the parent company
guarantee.”

4.3 Contractor’s Add the following at the end of this Sub-Clause:


Representative
“If the Contractor’s Representative or such persons are
not fluent in the said language, the Contractor shall make
competent interpreters available during all working hours
in a number deemed sufficient by the Employer’s
Representative, acting reasonably.”

4.4 Subcontractors Add the following at the end of this Sub-Clause:


“The Contractor shall ensure that the requirements
imposed on the Contractor by Sub-Clause 1.12
[Confidential Details] apply equally to each Subcontractor.
Where practicable, the Contractor shall give fair and
reasonable opportunity for contractors from the Country to
be appointed as Subcontractors.
The Contractor shall only employ person from any eligible
source country as listed under Appendix 3to these
Particular Conditions Part B.

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Section 8 – Particular Conditions of Contract 8-11

Sub-Clause No. Sub-Clause title Sub-clause contents


The Contractor shall not employ any person which is
listed either on:
The United Nations Security Council Sanctions Lists, or
The Asian Development Bank Anticorruption Sanctions
List
both accessible on the related organization Internet Web
sites, and as amended from time to time.
In case of failure by the Contractor to comply with this
requirement, and, for the avoidance of doubt, irrespective
of whether the Employer’s Representative has given prior
consent under this Sub-Clause, the Contractor shall
forthwith cease any business dealing with any ineligible
Subcontractor and replace such Subcontractor by one
having its origin in an eligible source country, all at the
Contractor’s risk and cost. Additionally, the Employer, at
his own election, shall be entitled to terminate the
Contract in accordance with Sub-Clause 15.2
[Termination by Employer].”

4.7 Setting Out At the end of first paragraph in Sub-Clause 4.7, add:
When setting out any part of the Works, the Contractor
shall give the Employer’s Representative sufficient notice
(not less than 24 hours) to enable the Employer’s
Representative also to satisfy itself to the correctness of
the setting out, before the Contractor commences
construction of the part concerned. However, this will not
relieve the responsibility of the Contractor for the correct
positioning of all parts of the Works.

4.12 Unforeseeable Add the following at end of the Sub-Clause:


Physical
In addition to notice of any unforeseeable physical
Conditions
conditions, the Contractor shall provide the Employer’s
Representative with a written notice of any unanticipated
environmental or resettlement risks or impacts that arise
during construction, implementation or operation of the
Plant or Permanent Works, which were not considered in
the updated and approved Initial Environmental
Examination (IEE), and/or the Environmental Impact
Assessment, the Environmental Management Plan
(EMP)(draft attached in Section 6 Annex 5), or the
updated and approved Resettlement Plan (RP)(draft
attached in Section 6 Annex 6).

4.14 Avoidance of Insert following additional paragraphs at the end of Sub-


Interference Clause 4.14:
The Contractor shall acquaint himself with the locations of
all existing services including drains, telephone and

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Section 8 – Particular Conditions of Contract 8-12

Sub-Clause No. Sub-Clause title Sub-clause contents


electricity lines and poles, water mains, irrigation ditches
and the like, in the vicinity, before any excavation or other
work (which are likely to affect the existing services) is
commenced. The Contractor shall relocate any utilities
which obstruct their work in accordance with the relevant
authority.
In the case of any accidental damages being caused to
existing utilities due to its operations, the Contractor shall
promptly bring it to the notice of the Employer’s
Representative and to the relevant utility service
organization.
The Contractor will be held liable for all damage (including
consequential damage) to roads, irrigation structures,
ditches, water mains, and electric or telecommunication
cables, lines or ducts of any kind caused by it or its
Subcontractors in the execution of the Works. The
Contractor shall make good any damage without delay
and, if necessary, carry out any further work ordered by
the Employer’s Representative. The Contractor shall also
ensure that its Third-Party Insurance Cover shall include
provisions to fully settle any Claims which may be made
by the utility service organizations, consequent to such
damages.
When works on the public roads necessitate diversion,
obstruction or closure of any road, or any other right of
way, the written approval of the Employer’s
Representative and relevant authorities shall be obtained
in advance by the Contractor.
The method of working on public roads shall be in
compliance with the Specifications and in accordance
with procedures approved by the Employer’s
Representative, and complying with stipulations of the
relevant road authority and / or Local Authority, and
security forces.
The Contractor shall not deposit any equipment on
material in any waterway adjacent to the Works. Where
temporary works obstruct any waterway, the Contractor
shall be responsible for obtaining any approvals from the
relevant authorities for such purpose and for rectifying
any damages caused by consequential flooding and shall
remove all temporary works to the satisfaction of the
Employer’s Representative on completion of his
operations.

4.16 Transport of Insert at the end of Sub-Clause 4.16:


Goods
If it is found necessary for the Contractor to move loads of
heavy constructional equipment and machinery, materials
or prefabricated units or parts of units of work over roads,

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Section 8 – Particular Conditions of Contract 8-13

Sub-Clause No. Sub-Clause title Sub-clause contents


highways, bridges, waterways and sea, on which area
such oversized and overweight items are not normally
allowed to be moved for safety considerations, the
Contractor shall obtain prior permission from the
Employer’s Representative and the relevant Authorities.
Payments to be made to relevant Authorities for
complying with their requirements, if any, for protection of
or strengthening of the roads, highways or bridges shall
be made by the Contractor and such costs shall be
deemed to be included in his Contract Price.

4.18 Protection of Add the following as first sentence of this Sub-Clause:


Environment
“Without prejudice to any other obligation under or in
connection with the Contract, the Contractor shall comply
with all environmental requirements stated in the
Employer’s Requirements, and in particular with those
which may be set forth in the initial environmental
examination and/or an environmental impact assessment
and an environmental management plan, as well as in
any safeguards monitoring report which may be included
in the Employer’s Requirements.
Upon completion of detailed design, and prior to
commencement of any works, Contractor shall update
drafts IEE and RP provided in Annexes 3 and 4 of Section
6, in accordance with government’s and ADB’s applicable
safeguards policies, and submit these for Employer’s
approval. The Employer will seek ADB’s no objection on
these prior to commencement of any works.
The Contractor shall allocate a budget for compliance
with all measures, requirements and actions outlined in
the approved IEE and RP.”

4.21 Progress Reports Insert following after Sub-Clause (h):


Monitoring of the obligations in Sub-Clauses 4.18, 6.4,
6.7, 6.12, 6.13 and 6.14.
These reports shall be taken up for discussion at the
Management Meetings specified under Sub-Clause 3.6.

4.23 Contractor’s Insert at the end of Sub-Clause 4.23:


Operations on Site
If the Contractor fails to attend to any of the above
requirements within 28 days of the issue of the
Commissioning Certificate, then the Employer may
dispose of same and/or take any appropriate measures
by other means and shall after deducting from the
proceeds the costs, charges and expenses of and in
connection with such disposal and pay the balance, if
any, to the Contractor.

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Section 8 – Particular Conditions of Contract 8-14

Sub-Clause No. Sub-Clause title Sub-clause contents


The Contractor shall not sell or otherwise dispose of or
remove, except for the purpose of the Works, any sand,
stone, clay, ballast, rock or other substances or materials
which he obtains from any excavation made for the
purpose of the Works or any buildings or produce upon
the Site during the time he is in the possession of the
Site, and all such substance, materials, buildings and
produce shall be the property of the Employer or the
relevant Government Authority, provided that the
Contractor may with the permission in writing of the
Employer’s Representative use any of the same for the
purposes of the Works or dispose of them off the Site at
approved locations.

4.26 Demolition of Add new Sub Clause:


existing structures
The Contractor shall not demolish nor modify the existing
permanent structures on the Site except to the extent
permitted in the Employer’s Requirements or otherwise
approved in advance in writing by the Employer’s
Representative.

4.27 Compliance with Add new Sub-Clause as follows:


ADB Safeguard
“The Contractor shall comply with:
Policy Statement
(i) the measures and requirements set forth in any
environmental management plan and/or resettlement
action plan that may be included in the Employer’s
Requirements; and
(ii) any corrective or preventive actions set out in
safeguards monitoring reports that the Employer will
prepare from time to time.”

4.28 On-Site Log Book Add new Sub-Clause as follows:


“The Contractor shall maintain on Site a log book, in a
form approved by the Employer’s Representative and
which shall integrate the fields required in the Employer’s
Requirements. It will be used to record the Contractor’s
activities on a daily basis, and any instruction from the
Employer’s Representative given on Site. The Employer’s
Personnel shall have the right of access to this document
at all times, and one copy of each daily record shall be
promptly provided by the Contractor to the Employer’s
Representative.”

CLAUSE 5 – DESIGN

5.1 General Design Insert at the end of Sub-Clause 5.1:


Obligations
The site measurements and other data furnished by the
Employer and drawings are approximate and provided for

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Section 8 – Particular Conditions of Contract 8-15

Sub-Clause No. Sub-Clause title Sub-clause contents


the information of Contractor to make its own
interpretations. The Employer does not take any
responsibility for its accuracy and correctness of the data
at Site. Contractor is advised to carry out own checks to
ensure adequacy and accuracy of the same before using
such data.

5.2 Contractor’s In the third paragraph of this Sub-Clause, replace:


Documents
“The Contractor's Documents which require approval from
the Employer's Representative shall be as listed in the
Contract Data.”
by
“The Contractor's Documents which require approval from
the Employer's Representative shall be as listed in the
Employer’s Requirements.”

5.6 Operation and Amend the Sub-Clause as:


Maintenance
28 days prior to the commencement of the
Manuals
Commissioning Period for any Section of Works, the
Contractor shall supply to the Employer's Representative
two copies of all operation and maintenance manuals and
commissioning plans in sufficient detail for the Employer
to operate, maintain, dismantle, reassemble, adjust and
repair the Plant and the Works. The Contractor shall
supply the balance of the required operation and
maintenance manuals prior to the issue of the
Commissioning Certificate. The Works or any Section
shall not be considered to be completed for the purposes
of issuing the Commissioning Certificate under Sub-
Clause 11.7 [Commissioning Certificate] until the
Employer's Representative has received these
documents.

CLAUSE 6 – STAFF AND LABOUR

6.1 Engagement of Add the following at the end of this Sub-Clause:


Staff and Labour
“The Contractor shall, to the extent practicable and
reasonable, employ staff and labour with appropriate
qualifications and experience from sources within the
Country.”

6.2 Rates of Wages Add the following at the end of this Sub-Clause:
and Conditions of
“The Contractor shall inform the Contractor’s Personnel
Employment
about their liability to pay personal income taxes in the
Country in respect of such of their salaries, wages,
allowances and any benefits as are subject to tax under
the Laws of the Country for the time being in force, and
the Contractor shall perform such duties in regard to such

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Sub-Clause No. Sub-Clause title Sub-clause contents


deductions thereof as may be imposed on him by such
Laws.”

6.7 Health and Safety Insert the following at the end of the Sub-Clause:
The Contractor shall conduct health and safety programs
for workers employed under the project, and shall include
information on the risk of sexually transmitted diseases,
including HIV/AIDS in such a program.
Add the following as first sentence of this Sub-Clause:
“Without prejudice to any other obligation under or in
connection with the Contract, the Contractor shall comply
with all health and safety requirements stated in the
Employer’s Requirements.”
Add the following at the end of this Sub-Clause:
“HIV-AIDS Prevention. The Contractor shall conduct an
HIV-AIDS awareness programme via an approved service
provider, and shall undertake such other measures as are
specified in this Contract to reduce the risk of the transfer
of the HIV virus between and among the Contractor’s
Personnel and the local community, to promote early
diagnosis and to assist affected individuals.
The Contractor shall throughout the Design-Build Period:
(i) conduct information, education and consultation
communication campaigns, at least every other month,
addressed to all the Site staff and labour (including all the
Contractor's Personnel and Employer’s Personnel) and to
the immediate local communities, concerning the risks,
dangers and impact, and appropriate avoidance
behaviour with respect to, of Sexually Transmitted
Diseases (STD) - or Sexually Transmitted Infections (STI)
in general and HIV/AIDS in particular; (ii) provide male or
female condoms for all Site staff and labour as
appropriate; and (iii) provide for STI and HIV/AIDS
screening, diagnosis, counselling and referral to a
dedicated national STI and HIV/AIDS programme, (unless
otherwise agreed) of all Site staff and labour.
The Contractor shall include in the programme to be
submitted under Sub-Clause 8.3 [Programme] an
alleviation programme for Site staff and labour and their
families in respect of Sexually Transmitted Infections
(STI) and Sexually Transmitted Diseases (STD) including
HIV/AIDS. The STI, STD and HIV/AIDS alleviation
programme shall indicate when, how and at what cost the
Contractor plans to satisfy the requirements of this Sub-
Clause and the Employer’s Requirements. For each
component, the programme shall detail the resources to
be provided or utilized and any related sub-contracting

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Sub-Clause No. Sub-Clause title Sub-clause contents


proposed. The programme shall also include provision of
a detailed cost estimate with supporting documentation.
Payment to the Contractor for the preparation and
implementation of this programme shall be made through
the Provisional Sum dedicated for this purpose, in
accordance with the Employer’s Representative
instructions under Sub-Clause 13.5 [Provisional Sums].”

Add the following Sub-Clauses 6.12 to 6.24

6.12 Foreign Personnel “The Contractor may bring in to the Country any foreign
personnel who are necessary for the design, the
execution of the Works and/or the provision of the
Operation Service to the extent allowed by the applicable
Laws. The Contractor shall ensure that these personnel
are provided with the required residence visas and work
permits. The Employer will, if requested by the
Contractor, use his best endeavors in a timely and
expeditious manner to assist the Contractor in obtaining
any local, state, national or government permission
required for bringing in the Contractor’s personnel.
The Contractor shall be responsible for the return of these
personnel to the place where they were recruited or to
their domicile. In the event of the death in the Country of
any of these personnel or members of their families, the
Contractor shall similarly be responsible for making the
appropriate arrangements for their return or burial.”

6.13 Supply of “The Contractor shall arrange for the provision of a


Foodstuffs sufficient supply of suitable food as may be stated in the
Employer’s Requirements at reasonable prices for the
Contractor’s Personnel for the purposes of or in
connection with the Contract.”

Supply of Water “The Contractor shall, having regard to local conditions,


provide on the Site an adequate supply of drinking and
6.14
other water for the use of the Contractor’s Personnel.”

Measures against “The Contractor shall at all times take the necessary
Insect and Pest precautions to protect the Contractor’s Personnel
6.15
Nuisance employed on the Site from insect and pest nuisance, and
to reduce the danger to their health. The Contractor shall
comply with all the regulations of the local health
authorities, including use of appropriate insecticide.”

Alcoholic Liquor or “The Contractor shall not, otherwise than in accordance


Drugs with the Laws of the Country, import, sell, give, barter or
6.16
otherwise dispose of any alcoholic liquor or drugs, or
permit or allow importation, sale, gift, barter or disposal
thereof by Contractor's Personnel.”

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Section 8 – Particular Conditions of Contract 8-18

Sub-Clause No. Sub-Clause title Sub-clause contents

Arms and “The Contractor shall not give, barter, or otherwise


Ammunition dispose of, to any person, any arms or ammunition of any
6.17
kind, or allow Contractor's Personnel to do so.”

Festivals and “The Contractor shall respect the Country's recognized


Religious Customs festivals, days of rest and religious or other customs.”
6.18

Funeral “The Contractor shall be responsible, to the extent


Arrangements required by local regulations, for making any funeral
6.19
arrangements for any of his local employees who may die
while engaged upon the Works.”

Forced Labor The Contractor shall not employ forced labor, which
consists of any work or service, not voluntarily performed,
6.20
that is exacted from an individual under threat of force or
penalty, and includes any kind of involuntary or
compulsory labor, such as indentured labor, bonded labor
or similar labor-contracting arrangements.”

“The Contractor shall not employ children in a manner


that is economically exploitative, or is likely to be
hazardous, or to interfere with, the child’s education, or to
be harmful to the child’s health or physical, mental,
6.21 Child Labour spiritual, moral, or social development. Where the
relevant labour laws of the Country have provisions for
employment of minors, the Contractor shall follow those
laws applicable to the Contractor. Children below the age
of 18 years shall not be employed in dangerous work.”

6.22 Employment “The Contractor shall keep complete and accurate


Records of records of the employment of labor at the Site. The
Workers records shall include the names, ages, genders, hours
worked and wages paid to all workers.
During the Design-Build Period, these records shall be
summarized on a monthly basis and submitted to the
Employer’s Representative, and these records shall be
available for inspection by the ADB’s auditors during
normal working hours. These records shall be included in
the details to be submitted by the Contractor under Sub-
Clause 6.10 [Records of Contractor’s Personnel and
Equipment].”

6.23 Workers’ “In countries where the relevant labor laws recognize
Organization workers’ rights to form and to join workers’ organizations
of their choosing without interference and to bargain
collectively, the Contractor shall comply with such laws.
Where the relevant labor laws substantially restrict
workers’ organizations, the Contractor shall enable
alternative means for the Contractor’s Personnel to

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Sub-Clause No. Sub-Clause title Sub-clause contents


express their grievances and protect their rights regarding
working conditions and terms of employment. In either
case described above, and where the relevant labor laws
are silent, the Contractor shall not discourage the
Contractor’s Personnel from forming or joining workers’
organizations of their choosing or from bargaining
collectively, and shall not discriminate or retaliate against
the Contractor’s Personnel who participate, or seek to
participate, in such organizations and bargain collectively.
The Contractor shall engage with such workers’
representatives. Workers’ organizations are expected to
fairly represent the workers in the workforce.”

6.24 Non- “The Contractor shall not make employment decisions on


Discrimination and the basis of personal characteristics unrelated to inherent
Equal Opportunity job requirements. The Contractor shall base the
employment relationship on the principle of equal
opportunity and fair treatment, and shall not discriminate
with respect to aspects of the employment relationship,
including recruitment and hiring, compensation (including
wages and benefits), working conditions and terms of
employment, access to training, promotion, termination of
employment or retirement, and discipline. In countries
where the relevant labor laws provide for non-
discrimination in employment, the Contractor shall comply
with such laws. When the relevant labor laws are silent on
nondiscrimination in employment, the Contractor shall
meet this Sub-Clause’s requirements. Special measures
of protection or assistance to remedy past discrimination
or selection for a particular job based on the inherent
requirements of the job shall not be deemed
discrimination.”

CLAUSE 7 – PLANT, MATERIALS AND WORKMANSHIP

7.9 Origin of Goods Add the following new Sub-Clause


“Goods shall have their origin in any eligible source
country listed in Appendix 3 to these Particular Conditions
Part B. In case of failure by the Contractor to comply with
this requirement, he shall forthwith remove the ineligible
Goods from the Site and replace those with Goods having
their origin in an eligible source country, all at the
Contractor’s risk and cost. For the avoidance of doubt, the
Employer’s Representative shall be entitled to withhold
corresponding payment certification in accordance with
Sub-Clause 14.7 [Issue of Advance and Interim Payment
Certificates] until such time replacement Goods are
provided in accordance with the Contract.”

CLAUSE 8 – COMMENCEMENT DATE, COMPLETION AND PROGRAMME

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Sub-Clause No. Sub-Clause title Sub-clause contents

8.3 Programme Add the following sub-paragraph after sub-paragraph (e):


“ (f) the STI, STD and HIV/AIDS alleviation programme in
accordance with Sub-Clause 6.7 [Health and Safety]”

8.6 Contract Replace in its entirety the 1st sentence in the 2nd
Completion paragraph by the following:
Certificate
“The Employer's Representative shall, subject to Sub-
Clause 11.8 [Joint Inspection Prior to Contract
Completion], Sub-Clause 10.8 [Completion of Operation
Service], Sub-Clause 14.18 [Asset Replacement Fund]
and Sub-Clause 4.23 [Contractor's Operations on Site],
issue the Contract Completion Certificate to the
Contractor, with a copy to the Employer, within 21 days
after the last day of the Contract Period.”

CLAUSE 9 – DESIGN-BUILD

9.1 Commencement Add the following after the last sentence of this Sub-
of Design-Build Clause:
“There shall be no work authorized to proceed on Site
until such time the Contractor has effected the insurances
defined under Sub-Clause 19.2 [Insurances to be
provided by the Contractor during the Design-Build
Period] in accordance with the provisions under Sub-
Clause 19.1 [General Requirements].”

Add the following after the last sentence of this Sub-


Clause:
“As an example, and without limitation to other possible
causes, any suspension of work caused by any failure
from the Contractor to comply with the obligations stated :
under Sub-Clause 4.8 as to safety procedures,
Suspension of
9.7
work under Sub-Clause 4.9 as to the quality assurance,
under Sub-Clause 4.18 as to the protection of the
environment, or
under Sub-Clause 6.7 as to health and safety,
shall be considered as cause of suspension which is the
responsibility of the Contractor”.

CLAUSE 10 – OPERATION SERVICE

10.2 Commencement Add the following after the second paragraph:


of Operation
“The Operation Service shall not commence until such
Service
time the Contractor has effected the insurances defined
under Sub-Clause 19.3 [Insurances to be provided by the

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Section 8 – Particular Conditions of Contract 8-21

Sub-Clause No. Sub-Clause title Sub-clause contents


Contractor during the Operation Service Period]in
accordance with the provisions under Sub-Clause 19.1
[General Requirements].”

10. 3 Independent Replace the first sentence of first paragraph with the
Compliance Audit following:
At least 182 prior to the commencement of the operation
services the Employer will engage the Technical Auditing
Body through Project Management Consultants to carry
out an independent and impartial audit during the
operation services.
Please delete the last sentence of first paragraph.

10.6 Delays and Add the following at the end of Sub-Clause 10.6 (a):
Interruptions
If an interruption or delay in the Operation Service results
during the
in a breach of the standards specified in the Schedule of
Operations
Guarantees, then the provisions of Sub Clause 10.7 will
Service
apply.
This Sub Clause shall include any applicable performance
damages as specified in the Appendix 7 (Functional
Guarantee) to the Contract Agreement.

10.7 Failure to Reach Replace this Sub-Clause in its entirety by the following:
Production
“In the event that the Contractor fails to achieve any of the
Outputs
performance standards defined in the Schedule of
Performance Guarantees, the Parties shall jointly
establish the cause of such failure.
If the cause of the failure lies with the Employer or any of
his servants or agents, then, after consultation with the
Contractor, the Employer shall give written instruction to
the Contractor of the measures which the Employer
requires the Contractor to take.
If the Contractor suffers any additional cost as a result of
the failure or the measures instructed by the Employer,
the Employer, subject to Sub-Clause 3.5 [Determinations]
and Sub-Clause 20.1 [Contractor's Claims], shall pay the
Contractor his Cost Plus Profit.
If the cause of the failure lies with the Contractor then,
after due consultation with the Employer, the Contractor
shall take all steps necessary to restore the output to the
levels required under the Contract.

The Contractor, subject to Sub-Clause 3.5


[Determinations], shall pay the Employer the performance
damages specified in Appendix 2 to these Particular
Conditions Part B for this failure.

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Section 8 – Particular Conditions of Contract 8-22

Sub-Clause No. Sub-Clause title Sub-clause contents


These performance damages shall be the only damages
due from the Contractor for such failure, other than in the
event of termination under Clause 15 [Termination by
Employer] and of failure to pass Tests Prior to Contract
Completion under Sub-Clause 11.11 [Failure to Pass
Tests Prior to Contract Completion].

The payment of such performance damages shall not


relieve the Contractor of any duties, obligations or
responsibilities he has under the Contract, including, for
the avoidance of doubt, the obligation to ensure that the
Works remain in accordance with the Contract during the
Operation Service Period.

If the failure continues for a period of more than 84 days


and the Contractor is unable to achieve the required
production output, the Employer may either:
(i)continue with the Operation Service at a reduced level
of compensation determined in accordance with Sub-
Clause 3.5 [Determinations], in lieu of applying the
performance damages defined above; or,
(ii) if the production outputs fail to reach the minimum
values required in the Schedule of Performance
Guarantees, give Notice to the Contractor not less than
56 days prior to terminating the Contract, in accordance
with Sub-Clause 15.2 [Termination for Contractor's
Default]. In such an event, the Employer shall be free to
continue the Operation Service himself or by others.”

CLAUSE 11 – TESTING

11.1 Testing of the Replace “Schedule of Guarantees” by “Schedule of


Works Performance Guarantees”.

11.4 Failure to Pass Replace this Sub-Clause in its entirety by the following:
Tests on
“If the Works, or a Section, fail to pass the Tests on
Completion of
Completion of Design-Build repeated under Sub-Clause
Design-Build
11.3 [Retesting of the Works] the Employer's
Representative shall be entitled to:
order further repetition of Tests on Completion of Design-
Build under Sub-Clause 11.3 [Retesting of the Works];
issue a Notice under Sub-Clause 15.1 [Notice to Correct];
or
issue the Commissioning Certificate to the Contractor
subject to the payment of performance damages as per
the provisions of Sub-Clause 10.7 [Failure to Reach
Production Outputs], in which case the Employer shall
also be entitled to forthwith apply the provisions found
under Sub-Clause 10.7(b)(ii) without waiting for the

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Section 8 – Particular Conditions of Contract 8-23

Sub-Clause No. Sub-Clause title Sub-clause contents


prescribed period expiry.”

11.11 Failure to Pass Replace sub-paragraph(c) in its entirety by the following


Tests Prior to
“(c) issue a Contract Completion Certificate, if the
Contract
Employer so requires. The Contractor, subject to Sub-
Completion
Clause 3.5 [Determinations] and to Contractor’s
adjustments or modifications as laid down below, shall
pay the Employer the performance damages specified in
Appendix 2 to these Particular Conditions Part B for this
failure. These performance damages shall be the only
damages due from the Contractor for such failure.”

New sub-clause Completion of Add a new Sub-Clause as under:


outstanding work
12.1(a) (iii) (iii) on the completion of construction, the Contractor shall
and Remedying
fully reinstate pathways, other local infrastructure, and
the Defects
agricultural land to at least their pre-project condition as
recorded by the Contractor in consonance with its
obligation in Sub-Clause 4.16

CLAUSE 13 – VARIATIONS AND ADJUSTMENTS

13.1 Right to Vary Replace “Schedule of guarantees” by “Schedule of


Performance Guarantees”.

13.3 Variation Replace “reasonable profit” by:


Procedure
“reasonable profit which shall be the percentage profit
applicable to the Cost as stated in the Contract Data for
Cost Plus Profit under Sub-Clause 1.1.24”

13.5 Provisional Sums Add the following at the end of this Sub-Clause:
“As an exception to the above, the Provisional Sum for
the cost of the DAB, shall be used to pay by the
Contractor of the Employer's one-half share of the
invoices of the DAB for its fees and expenses, in
accordance with Clause 20 [Claims, Disputes and
Arbitration]. No prior instruction of the Employer’s
Representative shall be required with respect to the work
of the DAB. The Contractor shall produce the DAB
invoices and satisfactory evidence of having paid the
entirety of such invoices as part of the substantiation of
those Statements submitted under Sub-Clause 14.3
[Application for Interim Payment Certificates]. The
Employer’s Representative certification of such
Statements shall be based upon such invoices and such
evidence of their payment by the Contractor. No sum for
Contractor’s overhead charges and profit shall apply in
addition to the DAB invoice amounts.”

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Section 8 – Particular Conditions of Contract 8-24

Sub-Clause No. Sub-Clause title Sub-clause contents

CLAUSE 14 – CONTRACT PRICE AND PAYMENT

14.1 The Contract Price Add the following at the end of this Sub-Clause
“Notwithstanding the above, the Contractor’s Equipment,
including essential spare parts therefor, imported by the
Contractor for the sole purpose of executing the Contract
shall be exempt from the payment of import duties and
taxes upon importation.”

14.2 Advance Payment Replace the entirety of this Sub-Clause by the following:
“The Employer shall make an advance payment, as an
interest-free loan for the Design-Build Period, when the
Contractor submits an advance payment guarantee in
accordance with this Sub-Clause. The amount of the
advance payment and the applicable currencies shall be
as stated in the Schedule of Payments. The advance
payment is paid as one-off instalment.
The Employer's Representative shall issue an Interim
Payment Certificate for the advance payment under Sub-
Clause 14.7 [Issue of Advance and Interim Payment
Certificates] after receiving an application under Sub-
Clause 14.3 [Application for Advance and Interim
Payment Certificates] and after the Employer receives (i)
the Performance Security in accordance with Sub-Clause
4.2 [Performance Security] and the parent company
guarantee in accordance with Sub-Clause 4.2A [Parent
Company Guarantee] and (ii) an advance payment
guarantee in amounts and currencies equal to the
advance payment. This guarantee shall be issued by an
entity and from within a country (or other jurisdiction)
approved by the Employer, and shall be based on the
sample form included in the tender documents or in
another form approved by the Employer.
The Contractor shall ensure that the guarantee is valid
and enforceable until the issue of the Commissioning
Certificate for the whole of the Works. If the terms of the
guarantee specify its expiry date, and the Contractor has
not become entitled to receive the said Commissioning
Certificate by the date 28 days prior to the expiry date, the
Contractor shall extend the validity of the guarantee until
the Contractor has been entitled to receive the
Commissioning Certificate. Failure by the Contractor to
maintain the validity of the guarantee in accordance with
this Sub-Clause shall entitle the Employer’s
Representative to withhold the issue of the
Commissioning Certificate.
The Employer shall not make a claim under the advance
payment guarantee except for amounts to which the

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Section 8 – Particular Conditions of Contract 8-25

Sub-Clause No. Sub-Clause title Sub-clause contents


Employer is entitled under the Contract in the event of:
failure by the Contractor to pay the Employer an amount
due, as either agreed by the Contractor or determined
under Sub-Clause 3.5 [Determinations] orClause 20
[Claims, Disputes and Arbitration], within 42 days after
this agreement or determination;
failure by the Contractor to remedy a default within 42
days after receiving the Employer's Notice requiring the
default to be remedied; or
circumstances which entitle the Employer to terminate
under Sub-Clause 15.2 [Termination for Contractor's
Default], irrespective of whether Notice of termination has
been given.
The Employer shall indemnify and hold the Contractor
harmless against and from all damages, losses and
expenses (including legal fees and expenses) resulting
from a claim under the advance payment guarantee
which the Employer was not entitled to make.
The Employer shall return the advance payment
guarantee to the Contractor within 21 days from the date
of issue of the Commissioning Certificate for the whole of
the Works.”

14.3 Application for Replace the sub-paragraph (d) by the following:


Advance and
“(d) any amounts to be added for the advance payment in
Interim Payment
accordance with Sub-Clause 14.2 [Advance Payment].”
Certificates

14.6 Payment for Plant This Sub-Clause is deleted as not applicable under the
and Materials Contract.
intended for the
Works

14.7 Issue of Interim Add the following sentence at the end of subparagraph
Payment (b):
Certificate
The amount to be withheld for such non-compliance shall
be as reasonably determined by the Employer’s
Representative

14.10 Payment of Replace this Sub-Clause in its entirety with the following:
Retention Money
“The Contractor shall be entitled to include the first half of
the Retention Money in the Final claim of Design-Build
part.
The Contractor shall be entitled to include the second half
of the Retention Money in the Final claim of Operation
Service part.”

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Section 8 – Particular Conditions of Contract 8-26

Sub-Clause No. Sub-Clause title Sub-clause contents

14.18 Asset Not Applicable


Replacement
Fund

CLAUSE 15 – TERMINATION BY EMPLOYER

15.2 Termination for Replace sub-paragraph (a) in its entirety by the following:
Contractor’s
“(a) fails to comply with Sub-Clause 4.2 [Performance
default
Security] or with Sub-Clause 4.2A [Parent Company
Guarantee] or with a Notice under Sub-Clause 15.1
[Notice to Correct],”
Add the following sub-paragraph, after sub-paragraph (h):
“ (i) subcontracts any work to any person sanctioned by
the United Nations or debarred by the ADB, in breach of
Sub-Clause 4.4 [Subcontractors]”
Replace the paragraph, after sub-paragraph (i), in its
entirety with the following:
“In any of these events or circumstances, the Employer
may, not less than 14 days after giving Notice to the
Contractor, terminate the Contract and expel the
Contractor from the Site unless the Contractor cures the
event or circumstance within the said 14 days. However,
in the case of sub-paragraph (f) or (g) or (i), the Employer
may by Notice terminate the Contract immediately.”

15.8 Corrupt or Add Sub-Clause as follows:


Fraudulent
“If the Employer determines, based on reasonable
Practices
evidence, that the Contractor has engaged in prohibited
practices, in competing for or in executing the Contract,
then the Employer may, after giving 14 days’ notice to the
Contractor, terminate the Contract and expel him from the
Site, and the provisions of Clause 15 shall apply as if
such termination had been made under Sub-Clause 15.2
[Termination for Contractor’s Default].
Should any employee or subcontractor of the Contractor
be determined, based on reasonable evidence, to have
engaged a prohibited practice during the execution of the
Contract then that employee shall be removed in
accordance with Sub-Clause 6.9 [Contractor’s Personnel].
The prohibited practices referred to above include are any
of the following:
(i) “corrupt practice” means the offering, giving,
receiving, or soliciting, directly or indirectly, anything of
value to influence improperly the actions of another party;

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Section 8 – Particular Conditions of Contract 8-27

Sub-Clause No. Sub-Clause title Sub-clause contents


(ii) “fraudulent practice” means any act or omission,
including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to
obtain a financial or other benefit or to avoid an obligation;
(iii) “coercive practice” means impairing or harming, or
threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly
the actions of a party;
(iv) “collusive practice” means an arrangement
between two or more parties designed to achieve an
improper purpose, including influencing improperly the
actions of another party;
(v) “obstructive practice” means
a. deliberately destroying, falsifying, altering, or
concealing of evidence material to an ADB investigation;
b. making false statements to investigators in order
to materially impede an ADB investigation;
c. failing to comply with requests to provide
information, documents or records in connection with an
ADB Office of Anticorruption and Integrity (OAI)
investigation;
d. threatening, harassing, or intimidating any party to
prevent it from disclosing its knowledge of matters
relevant to the investigation or from pursuing the
investigation, or
e. materially impeding ADBʼs contractual rights of
audit or access to information; and
(vi) “integrity violation" is any act which violates ADB’s
Anticorruption Policy, including (i) to (v) above and the
following: abuse, conflict of interest, violations of ADB
sanctions, retaliation against whistleblowers or witnesses,
and other violations of ADB's Anticorruption Policy,
including failure to adhere to the highest ethical standard.
(a) In this context, “party” refers to a participant in the
Contract procurement process or execution.”

CLAUSE 18 – EXCEPTIONAL RISKS

18.2 Notice of an Replace the first sentence of this Sub-Clause by the


Exceptional Event following:
“If a Party is or will be substantially prevented from
performing his obligations under the Contract due to an
Exceptional Event, then it shall give Notice to the other
Party of such event or circumstance and shall specify the
obligations, the performance of which is or will be

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Section 8 – Particular Conditions of Contract 8-28

Sub-Clause No. Sub-Clause title Sub-clause contents


prevented”

18.4 Consequences of Replace


an Exceptional
“If the Contractor is prevented from performing any of his
Event
obligations under the Contract”
by
“If the Contractor is substantially prevented from
performing his obligations under the Contract”

CLAUSE 19 – INSURANCE

19.1 General Add the following at the end of the first paragraph:
Requirements
“The Contractor shall take out any insurance under or in
connection with the Contract with insurers from any
eligible source country listed in Appendix 3 to these
Particular Conditions Part B. In case of failure by the
Contractor to comply with this requirement, and
irrespective of any former approval from the Employer, he
shall forthwith take replacement insurance(s) from
insurers having their origin in an eligible source country
and in terms both subject to approval by the Employer, all
at the Contractor’s risk and cost. For the avoidance of
doubt, the Employer’s Representative shall be entitled to
withhold corresponding payment certification in
accordance with Sub-Clause 14.7 [Issue of Advance and
Interim Payment Certificates] until such time replacement
insurance(s) are provided in accordance with the
Contract.”

CLAUSE 20 – CLAIMS, DISPUTES AND ARBITRATION

20.3 Appointment of the Replace the fifth paragraph in its entirety by the following:
Dispute
“The agreement between the Parties and either the sole
Adjudication Board
member ("adjudicator") or each of the three members
shall be based on the sample form included in the tender
documents, and incorporate by reference the General
Conditions of Dispute Adjudication Agreement in these
General Conditions, with such amendments as are
agreed between them.”

20.5 Avoidance of Insert the text below after the first paragraph and before
Disputes the second paragraph of this Sub-Clause:
“The DAB shall act, as far as reasonable and practicable,
in the spirit of preventing potential problems or claims in
between the Parties from becoming Disputes. The DAB
shall take reasonable and relevant initiatives in this
respect, including, but not necessarily limited to,
suggesting the Parties to refer a matter to the DAB in

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Section 8 – Particular Conditions of Contract 8-29

Sub-Clause No. Sub-Clause title Sub-clause contents


accordance with this Sub-Clause. The DAB shall however
not act in a way which may be inconsistent with its
obligations under the agreement referred to in Sub-
Clause 20.3 [Appointment of the Dispute Adjudication
Board] and under Sub-Clause 20.6 [Obtaining Dispute
Adjudication Board’s Decision], and which may render
any of its decision unenforceable for breach of natural
justice or any other procedural shortcoming or matter. In
particular, when acting under this Sub-Clause 20.5, the
Dispute Board shall accordingly always meet the Parties
jointly, and shall not meet a Party in the absence of the
other Party.”

20.6 Obtaining Dispute Replace the first paragraph of this Sub-Clause by the
Adjudication following:
Board’s Decision
“If a Dispute (of any kind whatsoever) arises between the
Parties in connection with, or arising out of, the Contract
or the execution of the Works during the Design-Build
Period, including any Dispute as to any certificate,
determination, instruction, opinion or valuation of the
Employer’s Representative, either Party may refer the
Dispute in writing to the DAB for its decision, with copies
to the other Party and the Employer’s Representative.
Such reference shall state that it is given under this Sub-
Clause. The other Party shall then have 21 days to send
a response to the DAB with copies to the referring Party
and the Employer’s Representative.”

20.7 Amicable Delete Sub-Clause 20.7 and substitute:


Settlement
Where a Notice of Dissatisfaction has been given under
Sub-Clause 20.6 above, both Parties shall attempt to
settle the dispute amicably before the commencement of
arbitration. However, unless both Parties agree otherwise,
the Party giving a Notice of Dissatisfaction in accordance
with Sub-Clause 20.6 above shall commence arbitration
after the fifty-sixth day from the day on which a Notice of
Dissatisfaction was given, even if no attempt at an
amicable settlement has been made.

20.8 Arbitration Replace the Sub-Clause in its entirety by the following:


“Unless settled amicably, and subject to Sub-Clause 20.9
[Failure to Comply with Dispute Adjudication Board's
Decision], any Dispute in respect of which the DAB's
decision (if any) has not become final and binding shall be
finally settled by arbitrationas per the procedures of Indian
Arbitration Act.
The arbitration shall be conducted in the language for
communications defined in Sub-Clause 1.4[Law and

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Section 8 – Particular Conditions of Contract 8-30

Sub-Clause No. Sub-Clause title Sub-clause contents


Language]unless otherwise stated in the Contract Data.
The arbitrator(s) shall have full power to open up, review
and revise any certificate, determination, instruction,
opinion or valuation of the Employer’s Representative,
and any decision of the DAB, relevant to the Dispute.
Nothing shall disqualify representatives of the Parties,
including the Employer’s Representative, from being
called as a witness and giving evidence before the
arbitrator(s) on any matter whatsoever relevant to the
Dispute.
Neither Party shall be limited in the proceedings before
the arbitrator(s) to the evidence or arguments previously
put before the DAB to obtain its decision, or to the
reasons for dissatisfaction given in its Notice of
Dissatisfaction. Any decision of the DAB shall be
admissible in evidence in the arbitration.
Arbitration may be commenced prior to or after
completion of the Works. The obligations of the Parties,
the Employer’s Representative and the DAB shall not be
altered by reason of any arbitration being conducted
during the progress of the Works.”

20.10 Disputes Arising Replace the Sub-Clause in its entirety by the following:
during the
“Disputes arising during the Operation Service Period
Operation Service
which cannot be resolved between the Parties shall be
Period
settled by a one-person DAB ("Operation Service DAB").
Such person shall be jointly agreed and appointed by the
Parties by the date 28 days after one Party has given
Notice to the other Party of its intention to refer a Dispute
to a DAB in accordance with this Sub-Clause.
If the Parties cannot agree on the person who shall be the
Operation Service DAB, then the person shall be
appointed according to the provisions of Sub-Clause 20.4
[Failure to Agree Dispute Adjudication Board].
The agreement between the Parties and the Operation
Service DAB shall be based on the sample form included
in the tender documents, and incorporate by reference
the General Conditions of Dispute Adjudication
Agreement in these General Conditions, with such
amendments as are agreed between them.
The terms of remuneration of the Operation Service DAB
shall be mutually agreed upon by the Parties when
agreeing the terms of appointment. Each Party shall be
responsible for paying one-half of this remuneration.
The procedure for obtaining a decision from the Operation
Service DAB shall be in accordance with the provisions of
Sub-Clause 20.6 [Obtaining Dispute Adjudication Board's

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Section 8 – Particular Conditions of Contract 8-31

Sub-Clause No. Sub-Clause title Sub-clause contents


Decision], and the DAB shall give its decision no later
than 84 days after receiving the other Party’s response or,
if no such response is received, within 105 days after
receiving the reference and the supporting documentation
from the Party referring the Dispute.
The appointment of the Operation Service DAB shall
expire 28 days after it has given its decision in writing to
both Parties.
If either Party is dissatisfied with the decision of the
Operation Service DAB, the provisions of Sub-Clauses
20.6 [Obtaining Dispute Adjudication Board’s Decision],
20.7 [Amicable Settlement], 20.8 [Arbitration] and 20.9
[Failure to Comply with Dispute Adjudication Board's
Decision] shall apply.”

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Section 8 – Particular Conditions of Contract 8-32

Appendices to the Particular Conditions of Contract Part B

The Particular Conditions of Contract Part B include the following Appendices:

• Appendix 1: Schedule of Payments, which include:

- Payment installments

- Payment procedures

• Appendix 2: Performance Damages

• Appendix 3 – Eligible Source Countries

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Section 8 – Particular Conditions of Contract 8-33

Appendix 1 - Schedule of Payments

In accordance with the provisions of:

• GCC Sub-Clause 14.3 [Application for Advance and Interim Payment Certificates], 14.4
[Schedule of Payments], the Contractor shall apply for payment,

• GCC Sub-Clause 14.7 [Issue of Advance and Interim Payment Certificates], the
Employer’s Representative shall certify for payment, and

• GCC Sub-Clause 14.8 [Payment], the Employer shall pay the Contractor as per the
following installments, based on the Contract Price breakdown given, and the currencies
stated, in the Price Schedules.

The installments provided below for Schedules No.1 to No.4 serve the purpose of providing values
according to sub-paragraphs (a) and (d) (as the case may be) of GCC Sub-Clause 14.3.

The installments provided below for Schedules No.5 and 6 serve the purpose of providing values
according to sub-paragraph (g) – Operation Service - of GCC Sub-Clause 14.3.

The installments provided below for Schedules No.7 serve the purpose of providing values
according to sub-paragraph (h) – Asset Replacement Fund - of GCC Sub-Clause 14.3.

For the avoidance of doubt, other items of GCC Sub-Clause 14.3 shall also apply and be used by
the Contractor when preparing his Statements, and by the Employer’s Representative when
preparing his Payment Certificates.

For example, Retention Money under sub-paragraph (c), or adjustments for the Maintenance
Retention Fund under sub-paragraph (i) of GCC Sub-Clause 14.3 shall accordingly apply to these
installments.

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Section 8 – Particular Conditions of Contract 8-34

(A) Payment Installments

Payments during the Design-Build Period


The subtotal for the Design-Build of the Works is the sum of the components A to C
In respect of the Design-Build of the Works, except for Provisional Sums, the following payments
shall be made:
• Ten percent (10%) of the subtotal amount as an advance payment made in accordance
with the provisions of Sub-Clause 14.2 [Advance Payment].

• Eighty percent (80%) of the measured value of work of the subtotal amount as certified by
the Employer’s Representative in accordance with the provisions of GCC Sub-Clause 14.7
[Issue of Advance and Interim Payment Certificates]. The measured value of work will
follow the breakdown given in the tables below.
• Ten percent (10%) of the subtotal amount for the Design-Build of the Works upon issue of
the Commissioning Certificate.
Provisional Sums shall be certified and paid as and when used in accordance with Sub-Clause
13.5 [Provisional Sums].
The measured value of work will follow the breakdown as indicated in the following tables.

Component A: Design, build, supply, install and commission raw water Intake well cum pumping
station, including approach Bridge and supply installation of raw water transmission main from raw
water pump house upto raw water inlet at WTP with all ancillary Civil, Mechanical, Electrical,
Instrumentation and SCADA system all complete.
% subtotal for the
Sl.
PARTICULARS GRAND SUMMARY Design-Build of
No.
the Works
1 Survey, Soil investigation, planning, design, drawing, and approval as
2.0%
per scope
2 Construction of Civil Works for Raw water intake well cum pump house
30.0%
in all respect as per scope
3 Supply and Installation Electrical, Mechanical, Instrumentation
14.0%
equipment for raw water intake well cum pump house as per scope
4 Construction of approach bridge from shore line to the Intake all
25.0%
complete as per scope
5 Supply and Installation of raw water main including necessary
14.0%
interconnection all complete as per scope in totality
6 Beginning Trial Run of the entire raw water Intake cum pump house
5.0%
and raw water transmission main with complete scope
7 Commissioning of the entire scope of component A 10.0%
Total 100.00%
Notes:
1. The breakup of payment of each component shall be as per Appendix the following tables.
2. The Employer’s Representative shall have full powers to fix interim rates within the components
and modification with mutual consent.

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Section 8 – Particular Conditions of Contract 8-35

Component B: Design, build, supply, install and commission from Inlet of WTP, Water Treatment
Plant with all treatment units and associated buildings including clear water reservoir and pumping
station with all ancillary Civil, Mechanical, Electrical and Instrumentation and the SCADA system all
complete.
% subtotal for the
Sl.
PARTICULARS GRAND SUMMARY Design-Build of
No.
the Works
1 Survey, Soil investigation, planning, design, drawing, and approval as
1.00%
per scope all complete
2 Construction of all Civil works related to Water Treatment Units like
comprising of but not limited to Stilling Chamber, Inlet Channel-
Parshall Flume, Flash Mixer, Clariflocculator, Rapid gravity filter, Clear
25.00%
Water Reservoir cum pump house, Sludge sump cum pump house,
Sludge lagoon including Electrical Sub-station etc as per scope all
complete
3 Construction of all Civil Works related to Buildings in Water Treatment
Plant comprising of but not limited to Administrative Building, Staff
10.00%
Quarters, Chemical house, Filter Annex Building etc including
boundary wall, landscaping, drainage etc as per scope all complete
4 Supply of Electrical, Mechanical, Instrumentation and SCADA
40.00%
equipment for WTP and clear water pump house
5 Installation of all Electrical, Mechanical, Instrumentation and SCADA
10.0%
equipment for WTP and clear water pump house
6 Trial Run and Commissioning of the entire WTP with complete scope 7.00%
7 Operationalization of Instrumentation and SCADA system to cover the
7.00%
WTP and whole of the bulk water supply system
Total 100.00%
Notes:
1. The breakup of payment of each component shall be as per Appendix in the following tables.
2. The Employer’s Representative shall have full powers to fix interim rates within the components
and modification with mutual consent.

Component C: Design, build, supply, install and commission of clear water transmission main from
outlet of WTP to the Intermediate Ground level Storage reservoir (GLSR) including construction of
GLSR and associated infrastructure with all ancillary Civil, Mechanical, Electrical and
Instrumentation and SCADA equipment all complete.
% subtotal for the
Sl.
PARTICULARS GRAND SUMMARY Design-Build of
No.
the Works
1 Survey, Soil investigation, planning, design, drawing, and approval for
3.0%
GLSR Site and Clear water transmission main as per scope
2 Completion of all Civil structures at the GLSR Site as per scope 7.0%
3 Supply of the Clear water transmission main from Outlet of CWR (In
45.0%
WTP) to Inlet of GLSR as per scope
4 Laying, testing and commissioning of the entire Clear water
transmission mains from Outlet of CWR (In WTP) to Inlet of GLSR 25.0%
5 Beginning Trial Run including Commissioning of the entire pipeline
10.0%
upto GLSR with complete scope
6 Operationalization of Instrumentation and SCADA system to cover the
10.0%
whole of the bulk water supply system, including Components A and B

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Section 8 – Particular Conditions of Contract 8-36

% subtotal for the


Sl.
PARTICULARS GRAND SUMMARY Design-Build of
No.
the Works
Total 100.00%
Notes:
1. The breakup of payment of each component shall be as per Appendix the following tables.
2. The Employer’s Representative shall have full powers to fix interim rates within the components
and modification with mutual consent.

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Section 8 – Particular Conditions of Contract 8-37

Component D: Payments during the Operation Service Period


Price Schedule No. 5 – Operation Service
In respect of the Operation Service, for both the foreign and local currency portions, the following
payments shall be made:
No advance payment applies.
Payments for the Operation Service comprise the Contractor’s Fixed Fee under Price Schedule
5.1, and the Contractor’s Variable fee (CVF) under Price Schedule 5.2 and the Contractor’s
Electricity Payment in Price Schedule 5.3.
1) Schedule 5.1: The Employer shall pay the Contractor’s Annual Fixed Fee in 24 equal
monthly instalments.
2) Schedule 5.2: The Employer shall pay the Contractors Variable Payment in accordance
with the following formula:
CVP = CVF x Vp
Where:
CVP is the Contractor’s Variable Payment (pre-indexation), and
CVF is the Contractor’s Variable Fee in Price Schedule 5.2, and
Vp is the measured monthly volume of production as measured at the inlet of the
intermediate GLSR based on the cumulative total of the recorded discharge as measured
in the flow-meter during that period as specified in the Employer’s Requirements.

3) Schedule 5.3: The Employer will pay the plant electricity costs directly to the Electricity
Supplier.

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Section 8 – Particular Conditions of Contract 8-38

(B) Payment Procedures

When applying for certification and making payments, the procedures shall be as follows:

The bill shall be submitted by the Contractor by 10th day of each month, payment of this bill shall be
effected as per provision of Payment Schedule.

The Contractor whose price bid has been accepted shall be required to submit component wise
detailed schedule of payment, based on and limited to the provisions shown in the Payment
Schedule of Payment Appendix 1.

The payment shall be released only as per work done and respective component of work has been
completed and/or levels are achieved.

Measurements will be recorded by the Contractor for the finished designed section of work only for
which all tests are conducted and work done in accordance with specifications and Contract
conditions by using the materials specified in the Contract.

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Section 8 – Particular Conditions of Contract 8-39

Appendix 2 - Performance Damages

1. Introduction and scope of application of performance damages


This Appendix defines the performance damages which are to be paid by the Contractor in case
the Contractor does not comply, during the Operation Service Period, with the Key Performance
Indicators (KPI) values defined under the Schedule of Performance Guarantees.
Such performance damages apply in furtherance to the provisions contained in:
a) GCC Sub-Clause 10.7 [Failure to Reach Production Outputs], and
b) GCC Sub-Clause 11.11 [Failure to Pass Tests Prior to Contract Completion]

These performance damages shall be the only damages due from the Contractor for such default,
other than in the event of termination under Clause 15 [Termination by Employer]. The payment of
such performance damages shall not relieve the Contractor of any duties, obligations or
responsibilities he has under the Contract, including, for the avoidance of doubt, the obligation to
ensure that the Works remain in accordance with the Contract during the Operation Service Period.

2. General
This Appendix sets out:
(a) the Performance Guarantees
(b) any qualifications or reliefs that apply to the Performance Guarantees
(c) the method of calculating Performance Damages for Performance Guarantee non-
conformances

3. Failure to Reach Production Outputs

(a) Output Water Quality


The Water Quality Standard to be used for this project is the Indian Drinking Water Specification
BIS 10500, Second Revision, May 2012. In addition, the residual chlorine at the intermediate
GLSR should not be less than 0.2 mg/l (ppm).
The contracted Water Supply Quality shall be measured at:
(i) the inlet to the clear water reservoir (within the WTP) and
(ii) For residual chlorine at the Inlet of the intermediate Ground level Storage reservoir.
In determining the Performance Damages the following will apply:
• The distinction is made between health parameters and aesthetic parameters. Health
parameters are considered to be turbidity, free residual chlorine, pH and e coli
• Relief from this guarantee may be provided to the Contractor for a period where the
cause of water quality non-compliance was clearly outside of the control of the
Contractor. An example would be a force majeure event or an unforeseeable abnormal
event severely impacting on the raw water quality.
• Relief or partial relief from this guarantee may also be provided where the non-
conformance was in an aesthetic (rather than health) parameter, where the Contractor
took immediate actions to minimise the impact of the non-conformance (including
promptly reporting it) and subsequently has eliminated the cause, and where the non-
conformance itself was of a minor nature.

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Section 8 – Particular Conditions of Contract 8-40

• Conversely relief will not be provided where there is a persistent non-conformance in one
or more of the parameters, where the Contractor is not addressing the underlying
cause(s), or where the non-conformance is in a health parameter.

The following Performance Damages shall apply:


(i) If there are more than five non-conformances in a calendar month, the Performance
Damages shall be 0.5% of the Contractor’s total monthly Operation Service payment
(excluding electricity charges)for each day or part day of the non-conformance
(ii) If there are non-conformances in two consecutive days, the Performance Damages
shall be1.5% of the Contractor’s monthly total Operation Service payment (excluding
electricity charges)
(iii) If there are continuous lapses beyond two days, the Performance Damages will be
4.0% of the Contractor’s Operation Service monthly payment for each day or part
thereof of the non-conformance. If this event arises the Contractor will be required by
the Employer’s Representative to rectify the underlying cause(s) of the non-
conformance. The Contractor will be required to full meet the costs of the rectification.
(iv) These Performance Damages listed above compound

(b) WTP Production Capacity


The quantity of potable water produced will be measured at the inlet of the Clear water reservoir.
Non-conformances shall be measured as the shortfall in potable water produced as compared to
the design capacity of the WTP and or the production demand communicated by the Employer,
whichever is less.
In determining the Performance Damages the following will apply:
• The duration of the non-conformances shall be measured by the day.
• Relief from this guarantee will be provided to the Contractor for a period where the cause
of water quantity non-compliance was clearly outside of the control of the Contractor. An
example would be a force majeure event or a power failure to the site.
• Relief or partial relief from this guarantee may also be provided where the non-
conformance was of a minor nature.
• Conversely relief will not be provided where there is a persistent non-conformance or
where the Contractor is not addressing the underlying cause(s)
• The maximum amount of Performance Damage that shall be applied in any one month
shall be limited to 20% of the total monthly Operation Service payment (excluding
electricity charges)
• The maximum water that is required to be produced over any duration is the equivalent to
the capacity of the WTP, for which it is designed.
• The production demand for every month will be communicated by the Employer.

Performance Damages shall apply @ Rs 25 per Kl of potable water that is produced less than the
design capacity of the WTP and or the production demand communicated by the Employer,
measured on a daily basis.

(c) Water Loss in raw water conveyance and Treatment (at WTP) to be limited to 5%
The quantity of water abstracted will be measured at the Outlet of the raw water rising main from
the intake well cum pumping station (On the Mukutmanipur reservoir) and after treatment will be
measured at the Inlet to the clear water reservoir in the WTP premises.

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Section 8 – Particular Conditions of Contract 8-41

The difference in flow measured at the point of abstraction and after treatment should be assessed
as the Water Loss. The estimated water loss assessed on a monthly basis should not be more
than 5% of the water abstracted(measured at the outlet of the raw water pumping main).
Non-conformance shall be measured in case the monthly recorded volumes between water
abstracted and water produced is more than 5% of the water abstracted and Performance
damages shall apply.
In determining the Performance Damages the following will apply:
• The duration of the non-conformances shall be measured on a monthly basis.
• Relief from this guarantee will be provided to the Contractor for a period where the cause
of non-compliance was clearly outside of the control of the Contractor. An example would
be a force majeure event or in case of pipe burst due to reasons not attributable to the
design, construction and or workmanship.
• Relief will not be provided where there is a persistent non-conformance or where the
Contractor is not addressing the underlying cause(s)
• The maximum amount of Performance Damage that shall be applied in any one month
shall be limited to 10% of the total monthly Operation Service payment (excluding
electricity charges)

The following Performance Damages that shall apply:


In case the monthly recorded volumes between water abstracted (measured on the rising main at
the outlet of the raw water intake well cum pumping station) and potable water produced after
treatment (measured at the inlet to the clear water reservoir) is more than 5% of the water
abstracted, the performance damage shall be applied on the additional water lost @ Rs 10 per Kl.

(d) Water Loss in conveyance of potable water to be limited to 1.5% (of water pumped)
The quantity of potable water pumped will be measured at the (1) Outlet of the clear water rising
main in the WTP and at the (2) Inlet to the intermediate ground level storage reservoir.
The difference in the monthly recorded volumes between potable water pumped from the clear
water reservoir (In WTP) and water that is received at the (Inlet pipe of the) Intermediate ground
level storage reservoir, should be limited to 1.5%. In case the difference between the measured
volumes is more than 1.5%, non-conformance to performance parameter for water lost in
conveyance of potable water will be considered and performance damages shall apply.
In determining the Performance Damages the following will apply:
• The duration of the non-conformances shall be measured on a monthly basis.
• Relief from this guarantee will be provided to the Contractor for a period where the cause
of non-compliance was clearly outside of the control of the Contractor. An example would
be a force majeure event or in case of pipe burst due to reasons not attributable to the
design, construction and or workmanship.
• Relief will not be provided where there is a persistent non-conformance or where the
Contractor is not addressing the underlying cause(s)
• The maximum amount of Performance Damage that shall be applied in any one month
shall be limited to 20% of the total monthly Operation Service payment (excluding
electricity charges).

The following Performance Damages that shall apply:


In case the monthly recorded volumes between potable water produced and pumped (measured at
the outlet of the clear water rising main) and water received (measured at the inlet to the

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Section 8 – Particular Conditions of Contract 8-42

intermediate ground level storage reservoir) is more than 1.5% of the water pumped, the
performance damage shall be applied on the additional water lost @ Rs 25 per Kl.

4. Failure to meet input targets

The power consumption is the sum of the power consumed by the raw water intake well cum pump
station, water treatment plant, clear water reservoir cum pumping stations and all associated
facilities and equipment.

The Employer will pay electricity costs directly to the Electricity Supplier. However, the cost of the
amount of power used beyond the Performance Guarantee amount will be deducted from
Contractor’s total Operation Service payment.

5. Reporting Requirements
All records shall be compiled for the monthly progress report to be submitted to the Employer. The
monthly reports shall be submitted on the fifth day of the next month. The monthly report shall
generally contain information in prescribed formats that shall be finalized in consultation with
Employer.
Non-compliance to submission of the Monthly reports or in maintaining the records shall result in a
deduction of 5% of the monthly Operation Service charges.
The Contractor is required to submit a Monthly Progress Report by the fifth day of the next month.
The Monthly Progress Report is to contain the information in the required format as agreed
between the Employer and the Contractor prior to the commencement of the Operation Service
period. The Contractor is required to also maintain all the data that supports the information in the
Monthly Progress Report.
The failure to submit the Monthly Progress Report by the fifth day of the next month or the
submission of the Monthly Progress Report in the incorrect format or with missing information will
be deemed a reporting non-conformance.
The following Performance Damages that shall apply:
(a) For each reporting non-conformance a Performance Damage equal to 5% of the total
monthly Operation Service payment shall apply

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Section 8 – Particular Conditions of Contract 8-43

Appendix 3: Eligible Source Countries

As in website link https://www.adb.org/about/members

Contract Package: WBDWSIP/DWW/NCB/BKP/01/2017-18

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