LIDERAZGO EN LA GERENCIA COMERCIAL

11.1 The Contract Price shall be as specified in Article 2 (Contract Price and Terms of Payment) of the Form of Contract Agreement.

11.2 The Contract price for EPC Contract including Defects liability period shall

30MWp SOLAR POWER PROJECT IN KALPI (UP) remain firm till completion of Contract. However, the Contract Price for Comprehensive Operation & Maintenance Contract shall be adjusted in accordance with the provisions of Appendix 2 (Price Adjustment) to the Contract agreement.

12. Terms of Payment

12.1 The Contract Price shall be paid as specified in Appendix-1 (Terms and Procedures of Payment) to the Contract Agreement. The procedures to be followed in making application for and processing payments shall be those outlined in the same Appendix-1.

12.2 No payment made by the Employer herein shall be deemed to constitute acceptance by the Employer of the Facilities or any part(s) thereof.

12.3 In the event that the Employer fails to make any payment which has become due by its respective due date or within the period set forth in the Contract, the Employer shall pay to the Contractor interest on the amount of such delayed payment at the rate(s) shown in Appendix-1 (Terms and Procedures of Payment) to the Contract Agreement for the period of delay until payment has been made in full. The due date for payment shall be within 30 days of submitting invoices by the Contractor. Provided that, the documents/invoices etc. submitted are complete in all respects.

12.4 The currency or currencies in which payments are made to the Contractor under this Contract shall be specified in Appendix-1 (Terms and Procedures of Payment) to the Contract Agreement.

12.5 Delayed Payment

Omissions on the part of the Engineer to pay the amount due upon measurement or otherwise shall neither vitiate nor make the contract void. Further , no claim for interest or damages will be entertained or payable by the Employer upon

i). any Bank Guarantee or   ii). payments in arrears or  

iii). any balance which may become due on final settlement/re-conciliation of the account or  

iv). Withheld by the Employer owing to any dispute or difference between the parties. 

The Contractor shall be entitled to this payment without formal notice or certification, and without prejudice to any other right or remedy. Further no interest will be paid on disputed claim / amount.

13. Securities

13.1 Issuance of Securities

The Contractor shall provide the securities specified below in favor of the Employer at the times, and in the amount, manner and form specified below.

13.2 Advance Payment Security

The Contractor shall, within twenty-eight (28) days of the notification of contract award, provide a security in an amount equal to the one hundred ten (110) percent

30MWp SOLAR POWER PROJECT IN KALPI (UP) claim period in accordance with GCC Clause 24.

The security shall be in the form provided in the Contract or in any other form acceptable to the Employer. The security in the form of a Bank Guarantee for amounts expressed in Indian Rupee shall be acceptable if the same is issued by any Indian Nationalized Bank / Scheduled Bank or a foreign Bank notified as Scheduled Bank under the provisions of “Reserve Bank of India Act” through any of its branches in India. Guarantees for amounts in currencies other than that of India, shall be acceptable if these are issued by an international Bank of repute situated outside India or by an authorised dealer in India as per guidelines of RBI from time to time. The amount of the security shall be reduced in proportion to the value of the Facilities executed by and paid to the Contractor from time to time, and shall automatically become null and void when the full amount of the advance payment has been recovered by the Employer. The security shall be returned to the Contractor immediately after its expiration as per the procedure specified below.

The interest accrued on pro-rata value of billing shall be deducted/recovered at the time of supply and pro-rata advance amount shall be treated as adjusted in proportion to the value of Invoice raised by the Contractor as per ‘Terms of Payment’ and accepted by the Employer.

It should be clearly understood that reduction in the value of security for advance shall not in any way dilute the Contractor’s responsibility and liabilities under the Contract including in respect of the Facilities for which reduction in the value of security is allowed.

13.3 Performance Security

13.3.1 The Contractor shall, within twenty-eight (28) days of the notification of contract award, provide security for the due performance of the Contract(s) for an amount equivalent to 10(Ten) percent of Contract price for EPC works (i.e. sum of Contract Price for First Contract and Second Contract) in currency of the bid with a validity as under:

a) 5 % up to 30 days beyond the Defect Liability Period (2 Years).

b) Balance 5% up to 30 days beyond Completion of O&M Period.

Contractor shall have option to provide Bank Guarantee initially valid up to 5 years from the date of commissioning of the Plant, subsequently the bank guarantee shall be extended on five yearly basis Completion of O&M Period.

Further, if the Contract price of EPC works (i.e. sum of Contract Price for First Contract and Second Contract) is more than 83 % of the overall cost of the Project, the employer shall withheld the amount excess of 83 % from each payment certificate on prorate basis and release the same during the O&M stage at the end of each year on prorata basis. No interest shall be paid by the Employer on the withheld amount.

30MWp SOLAR POWER PROJECT IN KALPI (UP) Contract and shall be in the forms of bank guarantee attached hereto in the section on Forms & Procedures, or in any other form acceptable to the Employer. The security in the form of a Bank Guarantee for amounts in Indian Rupee shall be acceptable if the same is issued by any Indian Nationalized Bank/Scheduled Bank or a foreign Bank notified as Scheduled Bank under the provisions of “Reserve Bank of India Act” though any of its branches in India.

13.3.3 5% of the Performance Security submitted by the Contractor as per Sub-Clause 13.3.1 shall be written down after completion of Defect Liability Period and balance 5 % of Performance Security shall be released after Completion of O&M Period.

13.4 Claims under Security

The Performance Security is to be payable on the demand of the Employer for due and faithful performance of the Contract.

14. Taxes and Duties

14.1 Except as otherwise specifically provided in the Contract, the Contractor shall bear and pay all taxes, duties, levies and charges assessed on the Contractor, its subcontractors or their employees by all municipal, state or national government authorities in connection with the Facilities in and outside of the country where the Site is located.

14.2 Notwithstanding GCC Sub-Clause 14.1 above, the Employer shall reimburse to the Contractor, Excise Duty, VAT/Sales Tax/CST, as per actuals against documentary evidence in respect of direct transaction between the Employer and the Contractor as elaborated hereinafter, imposed on the Ex-works supply of all equipments and Specified Spare Parts and Tools & Devices specified in Price Schedule No. 1 for the setting up of 30 MW Solar PV Power Plant.

The payment / reimbursement of Excise Duty, VAT/ Sales Tax/CST shall be restricted to the extent of amount of tax and duties indicated by bidder in Schedule No. 4 Taxes & duties applicable subject to GCC Clause 14.4 & 36. Except above, no other taxes or duties shall be reimbursed. C-Form shall be issued.

However, the Prices in Schedule No. 2, &3 shall be inclusive of all Taxes, Duties, Levies & Charges, Octroi, Works/Service Tax etc. The Contractor shall provide information regarding taxes, duties, levies, charges, works/Service tax etc.

and its corresponding rates considered by them in their Bid prices in respective Price Schedules 2&3. All applicable Taxes/Duties including Service Tax as applicable and assessed on the Employer shall also be included in the prices/rates quoted by the bidder and the same shall be deducted from the Contractors bill and deposited to the concerned authority by the Employer

Any variation in taxes and duties shall be regulated as per GCC sub-clause 14.4 and GCC sub-clause 36. If Excise Duty/VAT/CST/Entry Tax is /are exempted for solar products then same shall not be payable and shall not be claimed for payment from NHPC Ltd. even though it has been indicated in the Price

30MWp SOLAR POWER PROJECT IN KALPI (UP) 14.4 For the purpose of the Contract, it is agreed that the Contract Price specified in

Article 2 (Contract Price and Terms of Payment) of the Form of Contract Agreement is based on the taxes, duties, levies and charges prevailing at the date twenty-eight (28) days prior to the date of bid submission in the country where the Site is located (hereinafter called “Tax” in this GCC Sub-Clause 14.4). If any rates of Tax are increased or decreased, a new Tax is introduced, an existing Tax is abolished, or any change in interpretation or application of any Tax occurs in the course of the performance of Contract, which was or will be assessed on the Contractor, in connection with performance of the Contract, an equitable adjustment of the Contract Price shall be made to fully take into account any such change by addition to the Contract Price or deduction therefrom, as the case may be, in accordance with GCC Clause 36 (Change in Laws and Regulations) hereof.

However, these adjustments would be restricted to direct transactions between the Employer and the Contractor and Bought out items (to be dispatched directly from the sub-vendor’s works to the employer’s site) .These adjustment shall not be applicable on procurement of raw materials, intermediary components etc. by the Contractor.