दक्षिण मध्य रेऱवे / South Central Railway

दक्षिण मध्य रेऱवे / South Central Railway

ववजयवाडा मंडऱ / Vijayawada Division

Registered Post-Ack.-Due

मंडऱ कायााऱय/Divisional Office, काया शाखा/Works Branch, ववजयवाडा/Vijayawada,

सं.No.बीB/डबल्यू W.496/I/4/T.No.Zone-N-6/2016/T.North ददनाँक/Dt. 20-7.2016 To

Xxx X. Xxxxxx Xxxx,

Railway Contractor,

Mulakalapalli, Mudinepalli Mandalam Krishna District PIN 524 343

Sir,

ववषय/Sub:-Tender No Zone-N-6/2016 for the work “Annual Zonal contract works from “Kadiyam

(inclusive) to Hamsavaram (inclusive) and Branch Line Samalkot to Kakinada Port (inclusive) in ADEN/SLO Jurisdiction” from 01.7.2016 to 30.6.2017.

संदबा/Ref:- Your tender for the above work submitted on 20.06.2016.

***

1. The competent authority has accepted your Tender for the above work for a total value of Rs. 44,62,150/- (Rupees forty four lakhs, sixty two thousand one hundred and fifty only) at the following rates.

Rates:

(i) Schedule-A = (-)15% (Minus Fifteen percent only) on USSR-2010

(ii) Schedule-B = (-)12% (Minus Twelve percent only) on USSR-2010

(iii) Schedule-C =(-) 12% (Minus Twelve percent only) on the basic rate.

2. The sum of Rs.1,02,440/- submitted vide DD No.348491, dt.26.06.16 for Rs.102440/- issued by SBI, Poranki Branch, Vijayawada, (realized vide MCR No. 318799 dt. 30-06-2016) towards E.M.D has been adjusted as part amount of the security deposit. The balance security deposit of Rs. 1,20,668/- shall be recovered at the rate of 10% of the bill amount till the full security deposit of Rs. 2,23,108/- is recovered.

3. In terms of Special conditions of contract, you shall furnish a Performance Guarantee amounting to 5% of the contract value i.e., Rs. 2,23,108/- before signing of the agreement. The performance guarantee should be initially valid up to the stipulated date of completion plus 60 days beyond that. In terms of Special conditions of contract, you shall submit the Performance Guarantee (PG) within 30 (thirty) days from the date of issue of Letter of Acceptance (LOA) [excluding the date of LOA]. Extension of time for submission of PG beyond 30 (thirty) days and up to 60 days from the date of issue of LOA [excluding the date of LOA] may be given by the Authority who is competent to sign the contract agreement. However, a penal interest of 15% per annum shall be charged for the delay beyond 30 (thirty) days, i.e. from 31st day after the date of issue of LOA. In case of failure to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against the contract. The failed contractor shall be debarred from participating in re-tender for that work.

Contd . . .2

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4. Until a formal agreement is executed, acceptance of the Tender shall constitute a binding contract between you and the administration.

5. You have to abide by the Contract Labour (Regulations and Abolition Act 1970) and rules, regulations and amendments thereto that may be followed from time to time are binding on you in respect of this contract. You have to submit the application in the prescribed form (Form-V) in triplicate for license under Contract labour (Regulation and Abolition) Act for 20 or more workers and under BOCW Act for less than 20 Workers together with the demand draft towards security deposit and license fee to the undersigned to forward the same to the concerned Licensing Officer for issue of the license irrespective of the number of labour employed for the work. The work should not be executed without a valid labour license.

6. Failure to start the work within ten days, the contractor is liable for penal action as per clause 62 of the General conditions of contract.

Encl: 1)Tender schedule with special conditions,

2) Copy of Performance Guarantee.

आपका / Yours faithfully,

x.xxxxxxxx/उत्तर Divisional Engineer/North द.म.रेऱवे/S.C.Railway,

ववजयवाडा/Vijayawada

Copy to: Sr.DFM/BZA for information.

Copy to: ADEN/SLO & SSE/Works/SLO for information. Copy to: SSE(Drg)/Bldgs & OS/WA-North for information.

Copy to: Labour Enforcement Officer (Central), Xxxxxxx Xxxxx, Rajahmundry, East Godavari District, for kind information.

SOUTH CENTRAL RAILWAY VIJAYAWADA DIVISION

TENDER NO. N-6/2016

Open Tender Notice No. DRM/Works/BZA/ 10 /2016 dated 17-05-2016

Zone No. N-6

Name of work:- Kadiyam (inclusive) to Hamsavaram (inclusive) and Branch Line Samalkot to Kakinada Port (inclusive) in ADEN/SLO Jurisdiction for the period from 01-7-2016 to 30-6-2017.

Works considered similar works. Any building work or zonal maintenance works or repair to buildings.

Name of the Tenderer: - Xxx X. Xxxxxx Xxxx, Railway Contractor, Mulakalapalli, Bomminampadu Post, Mudinepalli Mandalam Krishna District PIN 524 343

Approximate value Rs.44,62,150-

SCHEDULE – A

Group	Description of work	Approximate Cash Value
A	Annual Zonal Contract for works under Chapter-11:- White wash/colour wash Chapter-12:-Painting, Polishing and varnishing. Chapter-23:- Road and Platform works. Item No.161520 or 161130( Jungle Clearance-where ever applicable) Item No.105010 to 105192 (Water Proofing) of USSR, 2010	Rs. 15,07,000/-
Percentage rate quoted in figures		(-) 15 %
Percentage rate quoted in words		Minus Fifteen percent only

SCHEDULE – B

Group	Description of work	Approximate Cash Value
B	Annual Zonal contract for works covering all other items of works under USSR, 2010 excluding works under Chapter 11 (White wash/ Colour wash), Chapter No.12 (Painting, polishing and varnishing), Chapter No.23(Road and Platform works) and item No.105010 to 105192(Water Proofing) and Item No.161130 (Jungle clearance) and Bridge work chapter Nos.19 to 22.	Rs.31,75,000/-
Percentage rate quoted in figures		(-) 12 %
Percentage rate quoted in words		Minus Twelve percent only

SCHEDULE – C

Group	Description of work	Approximate Cash Value
C	Annual Zonal Contract for NS Items as mentioned below.	Rs. 4,40,000/-
Percentage rate quoted in figures		(-) 12 %
Percentage rate quoted in words		Minus Twelve percent only

The list of NS items (Approved by PCE/SC vide letter No.W.416/Unified/SSR/NS items/Approval dt.19-10- 2011) which are proposed to be operated under Schedule „C‟ are at Annexure-I along with corresponding base rates. Either all items (or) only part of the items will be operated through work orders as per requirement.

Annexure-I

Sl. No	NS Item	Description of Item	Unit	Rate `
1	NS-2010-04	Finishing walls with water proofing cement paint of approved brand and manufacture and of required shade to given an even shade after thoroughly brushing the surface clean from dust, dirt etc., and remains of loose powdered materials and foreign matter like softened paint etc., cleaning the area after the work and including curing complete-One coat on decorated surfaces with all contractor‟s labour, materials , tools, equipment, lead & lift taxes etc, as directed by the Engineer-in-charge	Sqm	18.70
(Item one only)

Conditions:-

1. The Tenderers are required to quote a single percentage rate above/below/At par on USSR, 2010, NS items both in figures and words for Schedule-A, Schedule-B and Schedule-C separately. The percentage rate quoted must be firm and unconditional. If there is any difference between the percentage rate quoted in words and figures, the percentage rate quoted in words will be taken as correct and final.

2. Conservancy charges as applicable and as modified from time to time will be recovered from contractor‟s running bills.

3. The approximate cost indicated in the schedules is only for the guidance of the Tenderers to give an idea of the nature of works that may have to be executed. Railway however, reserves the right either to increase or decrease the value of the works under the chapters mentioned in the schedule depending upon the actual necessity. No claim shall be entertained for variation if any.

4. Performance of Contractor and Penalty for failure: (As per Engineering Standing Order No.79 circulated under CE/W/SC Letter No. W.496/Policy/Vol.VIII dt.14.03.2013)

a) Unless and otherwise specifically permitted by the executive, the contractor should complete all the work orders issued within the time period given for each work order.

b) If the contractor fails to execute any work order(s), penalty to the extent of the value of each of the work orders which were not completed by the contractor will be recovered from the contractor‟s bills/Security Deposit (SD) or Performance Guarantee (PG) or any other payment due to the contractor as the case may be.

c) The total penalty thus imposed, however, will not exceed the Security Deposit (SD) and performance Guarantee (PG) for the contract or the percentage of damages as specified in 17 (B) of GCC, whichever is higher.

d) The concerned DEN/Sr.DEN will inform the contractor, the penal action taken for failure, if any and the details of work orders in which the Contractor failed to execute successfully, at least one month prior to the expiry of contract period of Zonal Contract.

e) If the contractor has any objection on the penalty imposed, he should communicate in writing to the concerned DEN/Sr.DEN within 15 days of penalty advice.

f) Concerned DEN/Sr.DEN will put up Contractor‟s representation to ADRM/DRM for review of the penalty imposed. ADRM/DRM will review the penalty imposed by the executive and the decision taken by XXXX/DRM will be final and binding on the contractor and this shall not be an arbitrable matter.

5. No material will be supplied by Railways to contractor. Contractor has to mobilize materials from reputed manufacturers with the prior approval of Engineer-in-charge.

SPECIAL CONDITIONS OF CONTRACT

1. The rates include all lead and if the materials obtained by rail all freight charges including loading charges.

2. No material will be supplied by Railways to contractor. Contractor has to mobilize materials from reputed manufacturers with the prior approval of Engineer-in-charge.

3. Sales tax, Royalties and Octroi duties, if any, that may be payable under Provincial Government Sales Tax Act or Local Bodies Act or rules on any of the material that may be used or supplied by the contractor will be payable by the contractor. The Railway will neither pay the taxes or duties nor be bound to compensate the contractor for any amounts paid by him by way of these taxes or duties.

Sales Tax at 4% on the materials portion of the contract will be deducted from each on account bill where identifiable. Where the labour and material portion is not clearly identifiable, the labour element shall be taken as 30%. On the balance 70% of the value of the work, 4% shall be deducted pro-rata from each “on account bill” towards Sales tax.

4. Seigniorage charges recoverable from bills:-

Seigniorage charges for supply of earth, mooram, sand and other minerals as fixed by the State Government and payable to them as revised from time to time during the currency of contract will be recovered by Railway from the contractors “on account” and “final bills” and remitted to the state government. The rates quoted by the Tenderer shall be inclusive of these charges. Claims regarding revision of seigniorage charges and consequent enhancement of the accepted rate will not be entertained. However, no seigniorage charges / fee shall be recovered from the bills of the contractor, if the contractor produces documentary evidence e.g. “Transit Passes” issued by State Govt. Officials in token of having paid seigniorage fee. In such cases, the genuineness of such documentary evidence produced along with proof of payment of seigniorage charges, shall be got verified by the Railway from the concerned Mining and Geology Dept.

5. WATER:- A charge of One percent will be made by the Railway for the supply by the Railway of piped water from existing pipe lines and calculated on the amount of all items of work (SSR/NS items) appearing in the bills payable to the contractor in respect of which work such water has been issued to the Contractor and such charges should be deducted from sums due or payable by the Railway to the Contractor from time to time.

In the event of water having to be brought by the Railway to the site of the work in traveling tanks, the actual freight at Public Tariff rate and all other charges incurred therein including any demurrage that may be levied shall be payable by the Contractor and deducted from sums due or payable by the Railways to the Contractor from time to time.

In addition to the charges of one percent referred to above, if additional pipe lines to those already existing are called for by the contractor, the cost of the same and all charges incurred by the Railway in their laying including supervision charges will be paid by the contractor or the contractor provides and lay his own piping at the discretion of Divisional Engineer.

6. The Railway does not guarantee work under each items of the Master Schedule. For example if a gate- lodge or gang huts are to be built between stations and the work order issued to the sectional contractors additional payment on account of lead or freight charges for the materials that may have to be brought by rail or by road, will not be admissible.

7. If there arises any discrepancy between the printed Unified Standard Schedule of Rates 2010 (USSR, 2010) as amended by addendum and corrigendum slips issued from time to time upto the latest correction slips and the schedule attached to the Tender pertaining to this work, the former shall be treated as authentative and binding in all purposes.

8. Rubble masonry shall be first sum of Railways Specification No 503 according to South Central Railway Specification for materials and works. Contractor‟s attention is particularly invited to dressing of stone as laid down in the Railway‟s specification.

9. The Special conditions supplemented to the conditions of Tender and contracts the General conditions of contract and the notes appearing under the relevant chapter and sub chapters of the Unified Standard Schedule of Rates 2010 (USSR, 2010) should be considered as part of the contract papers where the provisions of these conditions are at variance with General Conditions of Contract these special conditions shall prevail.

10. Performance Guarantee (P.G.):-

a. The successful bidder shall have to submit a Performance Guarantee (PG) within 30 (thirty) days from the date of issue of Letter of Acceptance (excluding the date of LOA (Ref: CE/Works/SC Lr.W.148/P/GCC/Vil.II, dt.30.05.2014). Extension of time for submission of PG beyond 30 (thirty) days and upto 60 days from the date of issue of LOA may be given by the Authority who is competent to sign the contract agreement. However, a penal interest of 15% per annum shall be charged for the delay beyond 30 (thirty) days, i.e., from 31st day after the date of issue of LOA (excluding the date of LOA). In case the contractor fails to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that contract. The failed contractor shall be debarred from participating in re-tender for that work.

b. The successful bidder shall submit a Performance Guarantee (PG) in any of the following forms, amounting to 5% of the contract value:-

(i) A deposit of Cash,

(ii) Irrevocable Bank Guarantee,

(iii) Government Securities including State Loan Bonds at 5 percent below the market value,

(iv) Deposit receipts, Pay orders, Demand Drafts and Guarantee Bonds. These forms of Performance Guarantee could be either of the State Bank of India or of any of the Nationalized Banks;

(v) Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;

(vi) A Deposit in the Post Office Saving Bank;

(vii) A Deposit in the National Savings Certificates;

(viii) Twelve years National Defence Certificates;

(ix) Ten years Defence Deposits;

(x) National Defence Bonds; and

(xi) Unit Trust Certificates at 5 percent below market value or at the face value whichever is less.

Also FDR in favour of Senior Divisional Finance Manager, S.C.Railway, Vijayawada (free from any encumbrance) may be accepted.

1 The Performance Guarantee shall be submitted by the successful bidder after the Letter Of Acceptance(LOA) has been issued, but before signing of the contract agreement. This P.G. shall be initially valid up to the stipulated date of completion plus 60 days beyond that. In case, the time for completion of work gets extended, the contractor shall get the validity of P.G. extended to cover such extended time for completion of work plus 60 days.

1.0 The value of PG to be submitted by the contractor will not change for variation upto 25%(either increase or decrease). In case during the course of execution, value of the contract increases by more than 25% of the original contract value, an additional Performance Guarantee amounting to 5%(five percent) for the excess value over the original contract value should be deposited by the Contractor.

1.1 The Performance Guarantee (PG) shall be released after physical completion of the work based on the „Completion Certificate‟ issued by the competent authority stating that the contractor has completed the work in all respects satisfactorily. The security deposit, however, shall be released only after the expiry of the maintenance period and after passing the final bill based on „No Claim Certificate’ from the contractor.

1.2 Whenever the contract is rescinded, the security deposit shall be forfeited and the Performance Guarantee shall be encashed. The balance work shall be got done independently without risk and cost of the failed contractor. The failed contractor shall be debarred from participating in the tender for executing the balance work. If the failed contractor is a JV or a partnership firm, then every member/ partner of such a firm shall be debarred from participating in the tender for the balance work either in his / her individual capacity or as a partner of any other JV / partnership firm.

1.3 The Engineer shall not make a claim under the Performance Guarantee except for amounts to which the President of India is entitled under the contract (not withstanding and / or without prejudice to any other provisions in the contract agreement) and this shall be in the event of:

i) Failure of the contractor to extend the validity of the Performance Guarantee as described herein above, in which event the Engineer may claim the full amount of the Performance Guarantee.

ii) Failure of the contractor to pay President of India any amount due, either as agreed by the contractor or determined under any of the Clauses / Conditions of the agreement, within 30 days of the service of notice to this effect by Engineer.

iii) The contract being determined or rescinded under provision of the GCC the Performance Guarantee shall be forfeited in full and shall be absolutely at the disposal of the President of India.

11. Security Deposit:-

The scale of Security Deposit that is to be recovered from the contractor shall be as follows.

(i) Security Deposit should be 5% of the contract value.

(ii) The rate of recovery will be at the rate of 10% of the bill amount till the full Security Deposit is recovered.

(iii) Security Deposit will be recovered only from the running bills of the contract and no other mode of collecting SD such as SD in the form of instruments like Bank Guarantee, Fixed Deposit Receipt etc., shall be accepted towards Security deposit.

(iv) Conversion of Security Deposit into FDR after recovery of full stipulated SD (FA& CAO/SC letter No.AFX/EMD/Policy/ Vol.I dt.26.8.2010 circulated vide PCE/SC lr. No.W.148/ SCRCA dt.30.9..2010):- If the contractor so desires, the cash deposits in the form of security deposit may be allowed to be converted into FDRs(in favour of respective Accounts Officers and on account of contractor), after full recovery, at the discretion of the Railway, duly collecting necessary charges of conversion by the Railway Administration.

The security deposit shall be released only after the expiry of the maintenance period and after passing the final bill based on „No Claim Certificate‟.

After the work is physically completed, security deposit recovered from the running bills of a contractor can be returned to him if he so desires, in lieu of FDR/irrevocable bank guarantee for equivalent amount to be submitted by him.

In case of contracts of value Rs.50 crores and above, irrevocable bank guarantee can also be accepted as a mode of obtaining security deposit.

12. DEDUCTION OF INCOME TAX AT SOURCE

In terms of new Section 194-C inserted by the Finance Act 1972 , in the income tax Act 1961 the Railway shall at the time of arranging payments to the contractor and/or sub contractor(in the case of sub contractor only when the Railway is responsible for payment of consideration to him under the contract) for carrying out any work (including supply of labour for carrying out any work) under the contract be entitled to deduct income tax at source on Income comprised in the sum of such payments.

The deduction towards income tax to be made at source from the payments due to non-residents shall continue to be governed by Section 195 of the Income Tax Act 1961.

No Income Tax will be deducted by the Railway on payments made for supply of materials where such value of supply portion is distinct and ascertainable such as supply of Timber, tiles, bricks, ballast including track/ballast etc. The deductions towards Income Tax to be made at source from the payment due to non/residents shall continue to be governed by Section 195 of the Income Tax Act 1961.

13. VARIATION IN QUANTITIES:-

The quantities of each item of work furnished in the schedule are approximate and are intended for the guidance of Tenderer/ Contactor. In actual execution of work there may some increase in the quantities specified. Such variation should not exceed 25% of contract value or Two lakhs whichever is higher and shall in no degree affect the validity of the contact and it shall be performed by the contractor as provided therein and be subjected to the same conditions, stipulations and obligations originally and expressly included and provided for in specifications and drawings and the amounts to be paid therefore shall be calculated in accordance with the accepted Schedule of rates.

In the event of any reduction in the quantity to be executed for any reasons whatsoever, the contractor shall not be entitled to any compensation but shall be paid only for the actual amount of work done.

14. It shall be the responsibility of the contractor to keep in safe custody any Railway material plant or equipment issued for the work. The contractor shall at his own expense provide suitable temporary shed/sheds for this purpose on the Railway land made available by the Railway free of rent and shall remove the shed/sheds when no longer required in terms of clause 30 of General conditions of contract.

If due to any reason the Railway is not in a position to make available the Railway land the Railway Engineer-in charge of the work may permit the contractor to erect at his own cost shed/sheds or secure private accommodation outside the Railway premises. In such a case the contractor may be permitted to take the Railway material required for the works outside the railway premises and to store in the Shed so erected or private accommodation so secured. It shall be the responsibility of the contractor to keep the railway material in safe custody and the same should be kept entire separate from the contractors material and the Railway shall have liberty to inspect the same from time to time.

15. The code Nos. description and rates given in the schedule are based on the printed Unified Standard Schedule of Rates 2010 (USSR, 2010). Any discrepancy noticed during the execution of the work, in the working rates quantity of cement etc. should be rectified by reference to the printed schedule, which shall be treated as authoritative and binding on the contract. The relevant notes applicable to the respective sub chapters will apply to the items of the Tender schedule and should be considered as having been incorporated in the contract agreement and binding on the Contractor.

16. For any other items not specially shown in the schedule of rates appended to the tender document, the Divisional/Executive Engineer will offer rates as shown for the      zone in the Unified Standard Schedule of Rates 2010 (USSR, 2010) subject to the same percentage adjustment accepted in the contract being applicable to the additional items.

17. Railway shall not supply from its own quota to the contractors controlled or imported commodities. Assistance will, however given by recommending to appropriate authorities. Contractor applications for issue of import licenses and release of controlled commodities if the Engineer is satisfied that this material is actually required by contractor for carrying out the work and is not available in the country.

18. VARIATION OF COSTS. Price Variation Clause shall not be applicable for the Zonal Contracts, irrespective of contract value. (As per Engineering Standing Order No.79 circulated under CE/W/SC Letter No. W.496/Policy/Vol.VIII dt.14.03.2013.)

19. PERIOD OF COMPLETION: The Railway expects that a resourceful and experienced contractor should be able to complete the work in all respects from 01-7-2016 to 30-6-2017 from the date of letter of acceptance of the Tender. Each contractor must, however, fill in the appropriate place on page-1 of the Tender Document, the period within which he undertakes to complete the work.

20. MAINTENANCE PERIOD: (Not applicable to contracts for supply of materials): The work shall be maintained after completion for a period of six months or one monsoon period whichever is later by the contractor and he shall make good any defects, imperfections, shrinkages or faults which may appear at his own cost.

21. It is XXXXXX AGREED that it shall be the duty of the contractor to keep himself informed of all corrections, and amendments of the said General conditions of contract made up to the date of the execution of these presents and no objection shall be taken by the contractor on the ground that he was not aware of such amendments and corrections of the said General Conditions of Contract or to any of them.

22. Railway Contractors / Extension of Provident Fund Act to the Employees working under Railway Contractors:-

The Contractor shall comply with the provisions of EPF & MP Act, 1952 and obtain code number from the concerned authorities whenever workmen employed by him are 20 or more. He shall also indemnify Railways from and against any claim, penalties, recoveries under the above Act and Rules. Contractors to get the code number under the EPF so as to enable the PF Commissioners to extend the social security benefits to the workmen engaged by the Railway contractors. The first month‟s bill will be released only after code number is taken from the PF Office and a copy of coverage intimation produced. Subsequently for each month, bills will be released only on submission of challans & 12 A monthly return copy in proof of remittance of PF dues for previous month.”

23. Implementation of – the Building and other construction Workers (RECS) Act, 1996 and the Building and other Construction Workers Welfare Cess Act, 1996 in Railway Contracts.

“The Tenderer for carrying out any construction work in Andhra Pradesh (name of State) must get themselves registered from the Registering Officer under Section-7 of the Building and other Construction Workers Act, 1996 and rules made thereto by the Andhra Pradesh (name of State)Government and submit certificate of registration issued from the Registering Officer of the Andhra Pradesh(name of the State) Government (Labour Department). For enactment of this act, the Tenderer shall be required to pay cess @ 1% of cost of construction work to be deducted from each bill Cost of material shall be outside the purview of cess, when supplied under a separate schedule item.”

	SPECIAL CONDITIONS MODIFICATION TO CLAUSE 63 & 64 OF GENERAL CONDITIONS OF CONTRACT
1.	The Provision of Clause 63 and 64 of the General Conditions of Contract will be applicable only for settlement of claims /disputes, for values less than or equal to 20% of the original value (excluding the cost of materials supplied free by Railway) of the contract or 20% of the actual value of the work done (excluding the value of the work rejected) under the contract whichever is less. When claims/disputes are of value more than 20% of the value of the original contract or 20% of the value of the actual work done under the contract, whichever is less, the contractor will not be entitled to seek such disputes/claims for reference to arbitration and the provisions of Clause No; 63 &64 of the General Conditions of Contract will not be applicable for referring the disputes to be settled through arbitration.
2.	The Contractor shall furnish his monthly statement of claims as per Clause 43(1) of General Conditions of Contract. But the Contractor should seek reference to arbitration to settle the disputes only once, subject to the conditions as per Para 1.
3.	The Special conditions shall prevail over the existing Clause 63 & 64 of General Conditions of contract.