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Issues of Contract Closing

Issues of Contract Closing. Contract Closing : Contract Closing is the mile stone which symbolizes that liabilities of either parties stand settled. No claims from both parties. Contract Closing :

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Issues of Contract Closing

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  1. Issues of Contract Closing

  2. Contract Closing : • Contract Closing is the mile stone which symbolizes that liabilities of either parties stand settled. • No claims from both parties.

  3. Contract Closing : • A contract shall be considered to be closed only after the warranty period is successfully completed. • CPG / SD of the contractor is returned or discharged.

  4. Activities to be completed for Contract Closing : • Receipt of drawings, QA documents and O&M Manuals. • Pre-commissioning checks. • Physical completion of scope of work. • Commissioning and taking over certificate. • Material Reconciliation.

  5. Activities to be completed for Contract Closing : • Performance Guarantee Test. • Processing of scope variation, extra items and issuance of final amendment. • Time Extension and settlement of LD. • Extra claims and settlement of disputes. • Processing and release of final bill. • Successful completion of warranty. • Release of CPG.

  6. Liquidated Damages for delay in completion • If you fail to complete the successful commissioning of the substation covered under the contract within 18 months from the date of LOA, you shall pay to POWERGRID as Liquidated Damages not as penalty a sum of 0.5% of the contract price for each calendar week of delay or part thereof. The total amount of LD shall be limited to 5% of contract price.

  7. Liquidated Damages for non-performance of Auto Transformers and LT Transformers : • If the maximum losses are more than the losses guaranteed by the contractor, he shall pay the rate per KW of differential loss (Copper loss, Iron loss, Cooler loss).

  8. Calculation of LD : • The delay in the performance of contract may be on account of (a) Reasons attributable to the owner (b) Reasons due to force majeure conditions (c) Reasons attributable to contractor. • Delay attributable to Contractor = Z • Z = A – (B+C-X) wherein • A = Total delay that has occurred in a contract. • B = Cumulative delay on account of Force majeure. • C = Cumulative delay on account of POWERGRID. • X = Concurrent cumulative period in B & C.

  9. Calculation of LD : • To arrive at the amount of token LD, the ratio L = Z/T, where T is the total completion period, shall be the basis. • If L is ≥ 1, the amount of token LD shall be 10% of the amount of LD as worked out for a period of delay Z based on the provisions of contract. • If L is < 1, the amount of token LD shall be L x 10% of the amount of LD as worked out for a period of delay Z based on the provisions of contract.

  10. Demonstrable Loss : • Demonstrable loss may be due to • (a) extra payment to other contractors on account of delay • (b) cost of transportation for diversion of material • (c) payment of additional insurance premium • (d) loss on account of delay in return on investment • (e) compensation payable to a Generating Company in a situation when despite readiness of all other associated system, power flow could not taken place. • Fluctuation of exchange rate. • Loss on account of IDC & IEDC.

  11. Contract Performance Guarantee • C.P.G. to be reduced to half after issue of TOC • Execution site to send the proposal along with contractor’s request. • CC packages – AGM/GM to approve Site packages – DGM to approve • Due to considerable recovery if reduction is not possible to obtain approval of ED(Region) for CC packages and AGM/GM for site packages. • Release immediately after warranty period. • All efforts to be made to complete all contract closing formalities before warranty / defect liability period. • If any formalities pending and contractor is not responsible, CPG to be released with approval of ED or AGM/DGM. • The above is only for cases where the formalities takes more than three months after warranty period.

  12. PROFORMA OF CERTIFICATE OF FINAL AMENDMENT TO THE CONTRACT (To be issued by Contract Services) CERTIFICATE NO. CCP 01 NAME OF PACKAGE : Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that amendments have been issued to the aforesaid contract as per the details below mentioned : Amendment No.Date 1. Amendment-I (Supply & Erection) 15.07.2003 2. Amendment-II (Supply & Erection) 08.03.2004 3. Amendment-III (Supply) 16.09.2004 4. Amendment-III (Erection) 14.06.2005 This is to certify further that Amendment-III is the last amendment issued. Date: 21.08.2006 (Signature) Place: Sec’bad (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  13. PROFORMA FOR DRAWINGS RECEIPT CERTIFICATE (To be issued by Engineering) CERTIFICATE NO.CCP-02 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty &Neelamangala S/Ss PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that we have received all the drawings which were to be submitted by the Contractor in requisite number along with the reproducibles as detailed in Annexure enclosed herewith as per provisions stipulated in the above mentioned LOA/Contract. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  14. PROFORMA FOR QA DOCUMENTS RECEIPT CERTIFICATE ( To be issued by Corp. QA&I ) CERTIFICATE NO.CCP-03 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that the QA documents as per the list enclosed, in respect of the above mentioned LOA/Contract has been received in line with the provisions of the contract. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  15. PROFORMA FOR O&M MANUALS RECEIPT CERTIFICATE ( To be issued by Engineering ) CERTIFICATE NO. CCP-04 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala S/Ss PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that we have received from the contractor all the necessary O&M Manuals in requisite number including the list of spare parts along with the names of vendors in respect of the above LOA/Contract. The consolidated list of such manuals received is enclosed along with the distribution as marked on the list. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  16. PROFORMA FOR SCOPE COMPLETION CERTIFICATE ( To be issued by Site Erection ) CERTIFICATE NO: CCP – 05 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala S/S PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited 1. This is to certify that the scope of the above contract has been completed in line with the contract read in conjunction with the following documents: a. Final Amendment No._____ ( As per CCP - 01 ) b. Approved drawings including site run piping schemes, if any. c. Approved Bill of Materials d. MDCCs e. Measurement Book f. As Built Drawings g. Any other documents ( Specify ) 2. It is further certified that the following have been supplied, as per the details given in the contract Documents and the same have been taken over by POWERGRID. a. Mandatory Spares b. Recommended Spares c. Special Tools & Tackles. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  17. PROFORMA FOR LIQUIDATED DAMAGES FOR DELAY CERTIFICATE (Tto be issued by site erection or by Corporate Contracts) CERTIFICATE NO: CCP – 06 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala S/Ss PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that the issue regarding liquidated damages for delay as per the provisions of the above contract/LOA has been resolved with the approval of the Competent Authority vide note __________________ dt. ________ (Copy of Letter / note enclosed). Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  18. PROFORMA FOR SHORTFALL IN EQUIPMENT PERFORMANCE CERTIFICATE (to be issued by Corp. OS for site performance test and by Corp.QA&I for shop test) CERTIFICATE NO.CCP-07 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala S/S PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that the following shortfall in equipment performance as compared to the guaranteed parameters have been assessed and agreed to with the contractor in respect of the above mentioned LOA/Contract. SlNo.Guarantee ParameterGuaranteed ValueAssessed ValueShortfall, if any.12345 Further, it is also confirmed that liquidated damages for shortfall in equipment performance in respect of above items, have been recovered fully from the contractor and no other dues are outstanding for shortfall in equipment performance. Date: (Signature) Place: (Name) (Designation) Note: Any special approval is to be enclosed.

  19. PROFORMA OF "MATERIAL RECONCILIATION" CERTIFICATE (To be issued by site materials management & site erection) CERTIFICATE NO. CCP-08 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT :Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that the materials issued to the contractor in respect of the above mentioned LOA/Contract have been reconciled with the stipulations under the contract documents and no other recovery of material is pending with the contractor. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  20. PROFORMA OF "PAYMENT RECONCILIATION" CERTIFICATE ( To be issued by Site Accounts ) CERTIFICATE NO.CCP-09 NAME OF PACKAGE : Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that all the payments released to the contractor in respect of the above mentioned LOA/Contract have been reconciled with the provisions of the contract documents and statement of Accounts and or other Certificates of Contractor. It is observed that there are no recoveries pending under any of the items noticed and listed overleaf. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  21. Enclosure to CCP - 09 The list of recoveries and claims should include all recoveries and claims on any account whatsoever, including the following: 1.Liquidated damages for delay. 2.Liquidated damages for shortfall in performance as observed during shop-testing (by Inspection Deptt.) 3.Liquidated damages for shortfall in performance as observed during performance guarantee tests conducted at site and other site tests. 4.All recoveries/claims on account of variations/deviations to scope of contract permitted or otherwise taken place during execution of the contract as listed as certificate No.CCP-05 for contract closing ( certificate by site Erection for contract closing ). 5.Recoveries on account of reconciliation of payments made under the contract. 6.All the claims against the contractor regarding clearance of materials from site and vacation of the premises allotted for site office, stores. 7.All claims in respect of Training/Transportation/Accommodation/Services provided by site in respect of above mentioned LOA/Contract. 8.Recoveries on account of settlement of insurance claims. 9.Recoveries on account of reconciliation of materials issued to the Contractor. 10.All recoveries on account of demurrage, transportation, insurance premiums etc. and other recoveries as informed by T&CC group on account of port clearance, transportation etc. 11.All recoveries on account of wastage and scrap. 12.All recoveries/claims (if any) on account of maintenance of value. 13.All recoveries/claims ( if any ) on account of price variation. 14.All recoveries/claims (if any) on account of statutory dues paid on behalf of the contractor by POWERGRID. 15.Royalty charges. 16.All recoveries/claims (if any) on account of hiring out of POWERGRID's plant and equipment. 17.All recoveries/claims (if any) on account of water and electricity charges (if applicable) 18.Customs Reconciliation has been done by the Contractor/All documents required for custom reconciliation and to be submitted by the contractor have been submitted by the Contractor. 19.Any other recoveries/claims against specific instructions.

  22. PROFORMA OF CERTIFICATE REGARDING LABOUR PAYMENTS AND STATUTORY REQUIREMENTS TO BE FURNISHED BY CONTRACTOR ( To be issued by the Contractor ) CERTIFICATE NO. CCP-10 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that we have made all labour payments including PF Liabilities in respect of the above mentioned LOA/Contract and no other payments in this regard is pending from us. Further we confirm that all statutory requirements have been complied with by us and in case any default is reported against us, we shall be solely responsible for the same. It is also certified that no refund has been received / is envisaged to be received on account of taxes and duties paid by POWERGRID in respect of this contract. In case any refund is received in future, the same will be passed on to POWERGRID. Date: (Signature) Place: (Name) (Designation) (Not below Manager) Through: (Name) (Designation) (Not below Chief Manager)

  23. PROFORMA OF "NO DEMAND CERTIFICATE" BY CONTRACTOR ( To be issued by Contractor ) CERTIFICATE NO.CCP-11 NAME OF PACKAGE :Bay Extensions at Kurnool, Gooty & Neelamangala substations PROJECT : Ramagundam Stage-III Transmission System LETTER OF AWARD/ CONTRACT No.& Dt : C-55206-S948-7/LOA-I&II/944&945 Dt.28.06.2002 NAME OF CONTRACTOR : Tata Projects Limited This is to certify that we have received all payments due to us in respect of the above referred LOA / Contract and we have no claims whatsoever pending with POWERGRID for this contract. We further confirm that we shall have no claim against this contract in future also. Date: (Signature) Place: (Name) Designation) (Not below Manager) Through: (Name) (Designation) Not below Chief Manager)

  24. RECOVERY FOR SUPPLY OF TRANSFORMER OIL BY M/S BHEL

  25. RECOVERY FOR SUPPLY OF TRANSFORMER OIL BY M/S BHEL

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