GENERAL TERMS & CONDITIONS

10 PREAMBLE:

GPT-Rahee JV has been awarded the work of fabrication of 17×123m + 2×64m Span
Steel Girders for Rail-cum-Road Bridge over River Ganga at Patna (South Blank) by M/s
IRCON International Limited for East Central Railway. The total quantum of fabrication
work involved is approximately 36,000 MT.

Given the volume of work and limited time frame, we intend to deploy at least 4 agencies
to enable us to complete the work on time. Each agency shall be required to deploy
adequate workers and other resources to achieve an average capacity of approximately
300 MT of steel components per month. The work allocated to you shall have to be
completed within 32 months from the date of start. It is intended that the work will be
started by February 2009.

GPT-Rahee JV is in the process of establishing a fully-equipped workshop at site to

complete the work. All required machinery and equipments shall be provided by us.

20 SCOPE OF WORK:

2.1 To achieve the intermediate milestones required by our end-client, we intend to

Divide the work into 4 packages as detailed below:
S Span Components Type of steel Approx.
L. Quantity
1. 123M Bottom Chords High Tensile 5600 MT
Verticals High Tensile 2600 MT
2. 123M Top Chords High Tensile 4300 MT
Rail Level Diagonals High Tensile 4300 MT
3. 123M Rail Cross Girders & Stringers Mild Steel 4500 MT
Road Level Diagonals High Tensile 2400 MT
4. 123M Road Cross Girders & Stringers Mild Steel 2900 MT
Bottom, Sway, Knee Bracings Mild Steel 2100 MT
64M Entire Span Mild Steel 700 MT
5. 123M Top Lateral Bracings Mild Steel 300 MT

Please note that the above scope of work includes the related gussets along with
the components, which shall be detailed separately in case required. All gussets
are to be of High Tensile Steel.

You shall quote your separate rates for the 5 packages, and we shall award each
agency one package as found economical / suitable by us. Package 5 shall be
awarded to one of the 4 agencies.

You shall be required to manufacture the jigs / master plates / templates for your
own scope of work, and cost of the same shall be demand to be included in your
rates.

Please note that the above scope of work is tentative and subject to change
depending on actual progress achieved by you / other agencies.
2.2 You shall deploy adequate qualified and experienced engineers / supervisors at
site for planning, supervision and monitoring progress of the work.

2.3 The engineers shall also provide necessary assistance in setting up of site
facilities and installation of machineries, etc. so as achieve desired capacity of
production at the earliest.

2.4 You shall provide labour for unloading of row materials and consumables, as
required with the help of cranes and handling materials to be provided by us,
including handling, stacking, re-stacking, as required. Separate payment for
unloading of only raw steel shall be made. No separate payment shall be made
for shifting of steel of fabricated components from one place to another within
the fabrication yard.

2.5 Fabrication of templates & Jigs: To be manufactured to achieve accuracy and

tolerance limits given in the IRS / relevant specifications. Fabrication works shall
be using relevant jigs approved by the inspecting agency. Periodic checking of
jigs as well as necessary rectification of wear and tear shall be included in your
scope of work.

2.6 Fabrication of the girder members, gussets, stringers, bracings, etc. by properly
marking, cutting and drilling of steel sections including straightening and end
milling if required.

2.7 Shifting of fabricated components to the sandblasting and metalizing yard shall
be included in your scope of work, and no extra payment shall be made for this
work. Handling equipments and trailers, etc. required for the purpose shall be
provided by us.

2.8 Assembly of fabricated members and shop-riveting of the components: Contact

area shall be painted before assembly. All the fabricated items shall be stored
component wise having identical shipping mark at a location adjoining the
fabrication yard. Loading on trailers / dip lorry for dispatch is included in the
scope of work.

2.9 The workmanship shall conform to the Indian Railways’ Standard Specification
No. B1-2001. Quality Assurance plan shall be prepared and approved before
start of the work, and work shall be done strictly as per approved QAP. All
welding works shall be done by tested and approved welders only. If deviation
from the provisions of the specifications is desired, the details of such departure
proposed shall be explained, and such deviations shall be carried out only after
approval by the component authority.

2.10 It is contemplated that trial assembly of all spans be done by erection /

launching
agency, for which supervisory and technical assistance, as required, shall be
provided by you. In case complete trial assembly is required to be done by you,
the rate for the same shall be finalized after discussion with you.

2.11 The work in the fabrication shop shall at all times be available for inspection by
 us, Railways or their agencies. All facilities as required for carrying out the
inspection shall be provided to the Inspecting Authority. The fabricated materials
shall be dispatched after Inspection Certificates are issued. Defects, if any
noticed during inspection in the execution of the work, shall be rectified/
replaced as per the decision of the client. No extra claim whatsoever shall be
entertained on this account.

2.12 You shall maintain proper records for the steel supplied by us, and provide us
with periodic reconciliation of steel supplied and consumed. We shall provide
you an enclosed area for storage of scrap / off-cuts generated by you. However
it shall be your responsibility to ensure safety of the same till the same is
returned to us.

2.13 Raw steel supplied shall be cut strictly in accordance with the approved cutting
plan provided by us. In case of any deviation in the same due to change in size
of raw steel, you shall take advance clearance from our authorized
representative for such deviation.

30 MATERIALS & FACILITIES TO BE PROVIDED BY GPT-RAHEE (JV)

3.1 All raw materials will be supplied by GPT-Rahee (JV) free of cost.

3.1.1 Raw Steel: steel reconciliation will be based on maximum allowable

burning loss of 2%. You shall cut all sections strictly as per cutting list
provided to you, and periodically return all cutpieces and offcuts, as
generated. Reconciliation shall be based on weight of materials Issued by
us, after accounting for quantity of fabricated materials, offcuts returned
by you as per actuals, and burning loss. In case of any shortfall in the
steel issued, recovery shall be done at the following rates:

(i) Mild Steel Structures & Plates: Rs. 50,000/- per MT

(ii) High Tensile Structures & Plates: Rs. 65,000/- per MT

1.1.1 Rivets and bushes etc. will be supplied by us. The limit of wastage for
rivets shall be maximum 3%. For wastage beyond 3% the cost of rivets
will be recovered from you. However, if any defective rivet is supplied, the
same will be replaced if pointed out before use. Blots, nuts, drifts required
for fabrication shall be supplied by us chargeable basis at fixed issue rate,
as below.

1.1.2 All machineries required for the works shall be provided by us at site.
However, you shall be responsible for routine maintenance and minor
repairs (i.e. repairs costing less than Rs. 2500)/-) in the machinery
provided by us.

1.1.3 Power and fuel for all equipments shall be provided by us free-of-cost.
However, you shall ensure that no wastage of fuel or power occurs on
account of non-productive operation of equipments.
 1.1.4 Consumables:
Consumable as required for the works shall be issued to you free-of-cost.
However, you shall quote your rate for the labour portion only on per MT
basis, and also indicate your upper ceiling for cost of consumables per
MT, based on the issue rates of various consumables indicated in
Annexure-A. In case the cost consumables exceeds the upper ceiling as
noted in your order, the cost of the same shall be recovered from you.
However, no extra payment / bonus shall be paid in case consumption is
less than the upper ceiling.

Any other items not included in Annexure-A shall be recovered at 105%

of the landed purchase price of the item, inclusive of excise duties and
VAT /CST. The recovery rates for the consumables shall be frozen for the
period of the contract, and any increase/ decrease in prices shall be to
our account.

It is clearly understood by you that your rates for the work are based
on the above issue rates for consumables, and that you shall not
purchase any consumables for the work directly, even if they are
available at a lower price in the market.

1.2 Other facilities:

1.2.1 Power supply and compressors with fuel (if required for shop rivets) and
operators will be supplied by us for all fabrication works.

1.2.2 Leveled concrete platform of required length for layout.

1.2.3 Security, fencing and lighting arrangement for fabrication yard.

1.2.4 Suitable covered space for fabrication and mobile crane for handling of
materials will be provided.

1.2.5 Site accommodation for your supervisors & engineers, and labour
hutments as required will be provided near the site.

1.2.6 We shall provide raw steel for fabrication of jigs, fixtures, stallages,
templates, etc. However, fabrication labour and consumables required for
the same shall made. Your rate shall be deemed to be inclusive of the
cost of fabrication and consumables for such items. The fixtures and
stallages fabricated are to be returned to us after completion of the work.

20 OBLIGATION OF FABRICATION AGENCY

4.1 You shall arrange workmen’s compensation insurance coverage and fulfill
 all statutory obligations for all your labour engaged at the site. You shall
be responsible for all kinds of medical/ accident treatment of any of your
workers.

4.2 You shall be responsible for payment of wages to all your workers as per
provision of minimum wages act of Bihar. Weekly / fortnightly master roll
of the payment made shall have to be furnished regularly, and you shall
indemnify us from any liabilities arising out of non-payment of wages to
your workers by you.

4.3 You shall register yourself with PF department, and furnish us with your
registration number so what we do not recover any sum towards PF your
workers, and you shall indemnify us from PF liabilities, if any in the future.

4.4 You shall be required to place a written indent for consumables and raw
materials with our Project Manager, well in advance of their requirement,
so that work is not held up / hindered on this account.

4.5 No claim for compensation on account of idle labour for any reason
whatsoever shall be entertained.
4.6 Since there shall be other agencies working in the same fabrication yard,
you shall be required to co-operate with other agencies in the interest of
the work, including sharing of workshop space, machineries, jigs,
templates, etc. as required.

4.7 Before start of work, you shall submit us a list of manpower and
supervisory staff to be deployed by you. After mobilization of workers, you
shall submit us a list of workers, for issuance of ID cards. No personnel
shall be allowed entry into our fabrication workshop area, without proper
authorization.

4.8 You shall not retain the services of any workers or contractors working for
other agencies without the express written consent of the agency.

4.9 If there is any misconduct by any of the workers/ staff, he should be

removed from site immediately. In this regard, the decision of our site
representative will be final and binding.

4.10 Your workers shall observe safety procedures and use safety equipments
at all times. In this connection, you shall provide all necessary safety
equipments to your workers, including helmets, safety belts, safety shoes,
jackets, goggles, etc. Any safety equipments, if issued by us will be
debited to your account. In case of any violation of safety norms laid
down by any of your workers, you shall be fined Rs. 100/- (Rupees One
Hundred Only) per worker per instance. Repeat offenders shall also be
subject to disciplinary action, including expulsion from site.

30 COMPLETION PERIOD

The total time of completion for the work shall be 32 months from the date of start. It is
intended that the work will be started by February 2009.
40 RATE & QUANTITY SCHEDULE

4.1 Your quoted rates for the work shall be filled out by you separately under
Annexure-B, duly indicating your offer for the labour portion only, as also your
upper ceiling for consumption of consumables.

4.2 The above rates are inclusive of all taxes and duties, as may be applicable on
you. Service tax, if applicable shall be paid in addition to the above rates.
However, at present, no service tax is applicable, as the work is for a new railway
bridge. In case service tax is applicable in the future, we shall be at liberty to split
the contact to account for the labour portion separately.

4.3 The quantities in the schedule are indicative. These may vary during the course
of work, according to progress made.

50 TERMS OF PAYMENT

5.1 You shall raise monthly progress bills by the 10th of every month for the work
done the previous month. We shall release interim payment amounting to 60% of
your invoice value within 10 days and balance amount shall be released within
45 days subject to final certification by our engineers.

5.2 Measurement as received by us from our principal client for your portion of the
work shall be passed on to you.

5.3 Mobilization Advance of Rs. 2.50 Lakhs (Rupees two Lakh Fifty Thousand Only)
will be paid after full mobilization of work force at site. This amount will be
recoverable in 6 equal installments from the progress bills.

5.4 The terms of payment shall be as follows:

5.4.1 45% (Forty five Percent) shall be paid upon completion of marking,
cutting, drilling & tag welding of steel sections of the relevant component
(s), in accordance with the following terms and conditions:

Basis of weight
Sl. Component Payable After calculation
i) Loose items like Marking, Cutting, Weight of relevant item
gussets, etc. Straightening (if
required), Drilling.
ii) Bott. Chord, Marking, cutting, Total weight of relevant
Diagonals, Verticals, Straightening (if component subject to
Horizontals, cross required) and diaphragm, battens,
Girder, Stringers I/Channel/box etc. having been
formation with tack marked and cut
welding
iii) Top chord, End Raker, Marking, cutting, Total wt. of relevant
End Verticals. straightening (if component, subject to
required) along with
tack welding of
 I/Channel/Box section
iv) Other components May be left to the site
engineer to decide on
the same general
principles

5.4.2 50% (Fifty Percent) shall be paid after assembly and final welding of the
components, and approval of the same by inspecting agency.

5.4.3 5% (Five Percent) shall be paid after submission of monthly steel

reconciliation statement in prescribed format, and its verification by our
Project Manager. Scrap will be returned to us once a month. Scrap thus
returned will be weighed and credited to your total steel reconciliation.

60 PRICE VARIATION CLAUSE

6.1 This being a long duration contract, price variation on labour shall be paid as per
the following norms:

8.1. Price variation shall be effected once a year, and revised prices
ascertained in January of the year shall remain valid for the entire year.
The first price variation shall be calculated in January 2010.

8.1.2 Since consumables are being issued free-of-cost, no price variation shall
be applicable on consumables. 70% of your accepted rate for labour
portion shall be subject to price variation as per following formula:

Qr = 0.70 × Q0 × [Ln / L0] + 0.30 × Q0

Where,

Qr = Revised rate valid for the entire year staring from January of the year

Q0 = Accepted rate as per original order

Ln = Price index for Industrial Workers – All India as published by the

Ministry of Labour, Government of India for the month of December in the
year preceding the year for which the revised rates are being calculated.
Thus, for January 2010, price index of December 2009 shall be used, and
so on.

L0 = Price index for Industrial Workers – All India as published by the

Ministry of Labour, Government of India for the base month, i.e.
December 2008.

6.2 In case of any delays in completion of work attributable to the non-performance /

negligence of the agency, PVC shall not be paid for the delayed period and
payment shall be made as per last revised rate.
 exceeds the accepted ceiling rate, the difference shall be deducted from your
running account bill.

3. It is clearly understood by you that your rates for the work are based on the
above issue rates for consumables, and that you shall not purchase any
consumables for the work directly, even if they are available at a lower price in
the market.
 ANNEXURE-B

SCHEDULE OF ITEMS AND RATES

PACKAGE-1

Type of Approx. Labour Rate per Ceiling Rate for

Spa Components Steel Quantity MT Consumables per MT
n
123M Bottom Chords High 5600 MT
Tensile
Verticals High 2600 MT
Tensile

NOTE:

1. GPT-Rahee (JV) reserves the right to award you any one of Packages 1 to 4, as well as
Package-5, as found economical / suitable to us.

2. Above scope of work is tentative and subject to change.

3. Work includes fabrication of gussets connecting above members, which shall be detailed
separately in case required.

4. Please note that all gussets and shop / field rivets are expected to be High Tensile,
irrespective of Type of steel used for above components.
 ANNEXURE-B

SCHEDULE OF ITEMS AND RATES

PACKAGE-2

Type of Approx. Labour Rate Ceiling Rate for

Spa Components Steel Quantity per MT Consumables per MT
n
123M Top Chords High Tensile 4300 MT

Rail Level High Tensile 4300 MT

Diagonals

NOTE:

1. GPT-Rahee (JV) reserves the right to award you any one of Packages 1 to 4, as well as
Package-5, as found economical / suitable to us.

2. Above scope of work is tentative and subject to change.

3. Work includes fabrication of gussets connecting above members, which shall be detailed
separately in case required.

4. Please note that all gussets and shop / field rivets are expected to be High Tensile,
irrespective of Type of steel used for above components.
 ANNEXURE-B

SCHEDULE OF ITEMS AND RATES

PACKAGE-3

Type of Approx. Labour Rate Ceiling Rate for

Spa Components Steel Quantity per MT Consumables per MT
n
123M Rail Cross Mild Steel 4500 MT
Girders &
Stringers
Verticals High Tensile 2400 MT

NOTE:

1. GPT-Rahee (JV) reserves the right to award you any one of Packages 1 to 4, as well as
Package-5, as found economical / suitable to us.

2. Above scope of work is tentative and subject to change.

3. Work includes fabrication of gussets connecting above members, which shall be detailed
separately in case required.

4. Please note that all gussets and shop / field rivets are expected to be High Tensile,
irrespective of Type of steel used for above components.
 ANNEXURE-B

SCHEDULE OF ITEMS AND RATES

PACKAGE-4

Type of Approx. Labour Rate Ceiling Rate for

Spa Components Steel Quantity per MT Consumables per MT
n
123M Road cross Mild Steel 2900 MT
Girders &
Stringers
Bottom, Sway, Mild Steel 2100 MT
Knee Bracings

64M Entire Span Mild Steel 700 MT

NOTE:

1. GPT-Rahee (JV) reserves the right to award you any one of Packages 1 to 4, as well as
Package-5, as found economical / suitable to us.

2. Above scope of work is tentative and subject to change.

3. Work includes fabrication of gussets connecting above members, which shall be detailed
separately in case required.

4. Please note that all gussets and shop / field rivets are expected to be High Tensile,
irrespective of Type of steel used for above components.
 ANNEXURE-B

SCHEDULE OF ITEMS AND RATES

PACKAGE-5

Type of Approx. Labour Rate Ceiling Rate for

Spa Components Steel Quantity per MT Consumables per MT
n
123M Top Lateral Mild 2900 MT
Bracings Steel
consisting of pipe
structures

NOTE:

1. GPT-Rahee (JV) reserves the right to award you any one of Packages 1 to 4, as well as
Package-5, as found economical / suitable to us.

2. Above scope of work is tentative and subject to change.

3. Work includes fabrication of gussets connecting above members, which shall be detailed
separately in case required.

4. Please note that all gussets and shop / field rivets are expected to be High Tensile,
irrespective of Type of steel used for above components.