GAIL (India) Limited New Delhi Job Number: A095

Special Conditions of Contract Composite Works-II (Offsites & Utilities) Sheet 2 of 6

TERMS OF PAYMENT Progress Payments shall be released to Contractor against monthly running account bills duly certified by Engineer-in-charge after affecting the necessary deductions / recovery of mobilisation advance including interest charges accrued thereon. The basis for payment against various items shall be below: 1. PIPING AND RELATED WORK 1.1 U/G PIPING 1.1.1 For piping materials supplied by OWNER/ EIL as free issue a) b) c) d) e) 30% on fabrication. 30% on wrapping, coating. 20% on laying in position, welding, jointing, radiography and ready for flushing. 15% after flushing, hydro-testing and back filling of trenches. 5 % after completion of all works in all respects and acceptance by Engineer-in- Charge. 60% on fabrication & laying in position. 35% Hydro-testing and backfilling of trenches. 5 % after completion of all works in all respects and acceptance by Engineer-in- Charge. A. CARBON STEEL

B. GALVANIZED STEEL a) b) c)

1.2 ABOVE GROUND PIPING 1.2.1 For materials supplied by OWNER/ EIL as free issue a) 40% after fabrication of piping (welding should be completed as per the directions of the Engineer-in-Charge). b) 20% after site erection, alignment, welding, radiographic and other examination, repairs of welds, if any, repeat radiography and other examination etc. c) 10% after providing supports, vents, drains and complete to obtain erection completion. d) 10% after lines are flushed, hydro-tested, drained, dried by compressed air and obtaining statutory approvals, (if applicable). e) 15% after achieving mechanical completion. f) 5 % after completion of all works in all respects and acceptance by Engineer-in-Charge.

1.2.2

For materials supplied by Contractor a) 60% after supply of pipes at site and acceptance of the same.
Engineers India Limited New Delhi

GAIL (India) Limited New Delhi Job Number: A095

Special Conditions of Contract Composite Works-II (Offsites & Utilities) Sheet 3 of 6

b) 20% after site erection, including providing of supports, vents, drains, alignment, welding, radiographic and other examination, repairs of welds, if any, repeat radiography and other examination etc. complete to obtain erection completion. c) 15% after flushing, testing and back filling of trenches. d) 5 % after completion of all works in all respects and acceptance by Engineer-in- Charge. 1.2.3 Payment towards fabrication of respective piping items in Inch Dia shall be as follows: a) 75% after welding of joints & its acceptance. b) 20% after successful NDT as per respective piping spec. c) 5% after completion of all works in all respect and acceptance by Engineerin-Charge. 1.2.4 Payment towards erection of piping items to be paid in IM basis (fabricated in Inch dia as per 1.2.3 above) shall be as follows: a) 60% after site erection, field welding, radiographic and other examination and repair of field welds, if any, repeat radiography and other examination etc. b) 20% after providing supports, alignment, providing vents, drains and complete to obtain erection completion. c) 10% after lines are flushed, hydrotested, drained, dried by compressed air and obtaining statutory approvals (if applicable). d) 5% after achieving mechanical completion. e) 5% after completion of all works in all respect and acceptance by Engineerin-Charge. 1.3 OTHER PIPING RELATED WORKS 1.3.1 Fabrication of Specials, Mitres etc. a) 80% after fabrication and DP/MP test. b) 15% after hydro testing and final approval. c) 5 % after completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.3.2 Erection of Valves, Orifice plates a) 80% after transportation and erection. b) 15% after flushing and testing. c) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.3.3 Erection of valves including Supply a) 80% after supply, erection and welding. b) 15% after hydro-testing and final approval.

Engineers India Limited New Delhi

GAIL (India) Limited New Delhi Job Number: A095

Special Conditions of Contract Composite Works-II (Offsites & Utilities) Sheet 4 of 6

c) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.3.4 Radiography/ DP/ MP Tests (except for Piping Specials) a) 95% on submission of reports and acceptance thereof by Engineer-inCharge. b) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.3.5 Stress Relieving a) 95 % after successful completion, providing records and acceptance thereof by Engineer-in-Charge. b) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.4 EQUIPMENTS 1.4.1 Columns, Vessels, Filters, Tanks,, Drums, etc. (at all levels) a) 50% after transportation and erection on foundation. b) 30% after alignment and grouting c) 15% after Mechanical completion d) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.4.2 Internals a) 95% after transportation, cleaning, placing, bolting/welding, testing within equipment, inspection and liquidating all check list points. b) 5 % on completion of all work in all respects and acceptance thereof by Engineer-in-Charge. 1.4.3 Heat Exchangers, Header Boxes for Air Fin Coolers a) 50% after transportation and erection (including inserting sliding plate). b) 30% after alignment and grouting c) 15% after Mechanical completion d) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.4.4 Machineries (Pumps, Drivers, Compressors etc.) a) 40% after transportation and placing in position. b) 30% after initial alignment, levelling and grouting. c) 10% after final alignment. d) 15% after Mechanical completion e) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 1.5 TANKS a) 5% after design and submission of approved drawings. b) 40% after supply, fabrication and erection.
Engineers India Limited New Delhi

GAIL (India) Limited New Delhi Job Number: A095

Special Conditions of Contract Composite Works-II (Offsites & Utilities) Sheet 5 of 6

c) 30% after alignment grouting welding and radiography. d) 5% after hydraulic testing. e) 15 % after achieving mechanical completion. f) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge.

1.6 INSULATION/ REFRACTORY WORKS a) 70% progressive payment after receipt of material and installation at site. b) 25% after achieving mechanical completion. c) 5 % on completion of all works in all respects and acceptance thereof by Engineer-in-Charge. 2. CIVIL / ARCHITECTURAL WORKS a) 95% on completion of work on prorata basis as certified in monthly progress bill. b) 5% on completion of all works in all respects and acceptance thereof. 3. I. STRUCTURAL STEEL WORKS In case of Contractor supplied material: a) 5% on finalisation of quantities, plan and submission of approved fabrication drawings. b) 55% on supply and acceptance of the material at site. c) 15% on completion of fabrication. d) 20% on erection, alignment, welding grouting, painting (as applicable) etc. e) 5% on completion of all work in all respect and acceptance thereof. II. In case of Owner supplied material (FIM) : a) 5% on finalisation of quantities, plan and submission of approved fabrication drawings. b) 40% on transportation of material and fabrication. c) 50% on erection on all alignment, welding grouting, mechanical completion, painting (as applicable) etc. d) 5% on completion of all work in all respect and acceptance thereof 4. I. Electrical Works For Supply Items a) b) c) II. 90% on receipt of material at site and inspection. 5% on installation. 5% after successful completion and commissioning.

For Erection Items

Engineers India Limited New Delhi

GAIL (India) Limited New Delhi Job Number: A095

Special Conditions of Contract Composite Works-II (Offsites & Utilities) Sheet 6 of 6

a) b) c) III. a) b) c) d) 5. a) b)

80% on completion of installation. 15% on testing. 5% on completion of works in all respects and acceptance thereof. 60% on receipt of material at site and inspection. 20% after erection and alignment. 15% after testing and commissioning. 5% after completion of all works in all respects and acceptance thereof. 95% on completion of work on prorata basis as certified in monthly progress bill. 5% on completion of all works in all respects and acceptance thereof.

For Items involving both Supply & Erection

For All Other Works

PAYMENT METHODOLOGY a. GAIL has introduced the computerized Bill Watch system whereby the contractor will be issued a receipt at the time of the submission of the bills. The contractor can see the status of their bill on GAIL website. s b. Employer will release payment through e-payments only as detailed in the Bidding Document. c. Further break-up of Lumpsum Prices, if deemed necessary for any progressive payment of individual item may be mutually arrived at between Engineer-in-Charge and the Contractor.

(STAMP & SIGNATURE OF BIDDER)

Engineers India Limited New Delhi