THE SALEM CO-OPERATIVE SUGAR MILLS LTD.

,
MOHANUR - 637015.
NAMAKKAL DISTRICT.
Phone : 04286 255221 / 255224
Grams : SALEMSUGAR

Fax : 04286 255264

E-Mail:sacos07@yahoo.co.in

TENDER DOCUMENT FOR DESIGN, ENGINEERING,

MANUFACTURING,
SUPPLY, ERECTION, TESTING & COMMISSIONING OF
DECANTER WITH ALL NECESSARY ACCESSORIES
FOR

THE SALEM CO-OPERATIVE SUGAR MILLS LTD.,

MOHANUR 637015.
NAMAKKAL DISTRICT.
TAMIL NADU.

THE SALEM COOPERATIVE SUGAR MILLS LTD.,

MOHANUR-637 015, NAMAKKAL DISTRICT,TAMILNADU
Rc.No.14155/CC/09-10

Dt. 20.08.2011
TENDER NOTICE

Sealed tenders in prescribed Tender Document forms are invited by

SALEM CO-OPERATIVE SUGAR MILLS LTD., Mohanur-637 015, Namakkal
Dist., Tamil Nadu from the reputed Manufacturers / Dealers who have supplied and
commissioned minimum in two sugar mills in India for Decanters for Filteration of
Sugarcane muddy juice for a capacity of not less than 2500 TCD Sugar Plant in
India during the past three years.
ii)

iii)

iv)

v)
vi)

Tender Forms are available at SALEM CO-OPERATIVE SUGAR MILLS

LTD., Mohanur-637 015, Namakkal Dist., Tamil Nadu during working days
except holidays from 22.08.2011 upto 05.09.2011 12.00 pm at the cost of
Rs.10,000/- (inclusive of VAT) payable by way of Demand Draft or Bankers
Cheque in favour of Special Officer, Salem Cooperative Sugar Mills Ltd.
payable at Namakkal/Mohanur. The tender form can also be obtained by post
by making written request to the Special Officer, Salem Cooperative Sugar
Mills Ltd., along with postal charges of Rs.100/- in addition to the cost of
tender form. And also download the same from the website
www.tenders.tn.gov.in from 22.08.2011. In case the bidders downloading
the tender form from website, they shall enclose D.D. for the above amount
along with EMD.
Earnest money deposit of Rs.1,00,000.- (Rs. One lakh only) is payable by
demand draft or Bankers cheque in favour of The Special Officer, Salem
Cooperative Sugar Mills Ltd., Namakkal Dist. on any Nationalised Bank
payable at Namakkal/Mohanur and to be submitted in separate envelope.
Tender in complete shape should reach The Commissioner of Sugar, EVR
Building, 690, Anna Salai, Nandanam, Chennai-600 035 on or before
05.09.2011 at 2.30 p.m. and the technical bid will be opened on the same day
at 3.00 p.m.
The detailed technical specification of the machinery are mentioned in the
Tender form.
The State Level Advisory Committee (SLAC) which is the Tender Accepting
Authority reserve the right to accept or reject the tender without assigning any
reason thereof.
The Salem Cooperative Sugar Mills Ltd.
Namakkal Dist., Tamil Nadu

Special Officer

THE SALEM CO-OPERATIVE SUGAR MILLS LTD.,

MOHANUR - 637015.
NAMAKKAL DISTRICT,TAMIL NADU.
Phone : 04286 255221 / 255224
Grams : SALEMSUGAR

Fax : 04286 255264

email:sacos07@yahoo.co.in

TENDER DOCUMENT FOR DESIGN, ENGINEERING,

MANUFACTURING,
SUPPLY, ERRECTION, TESTING & COMMISIONING
DECANTER WITH ALL NECESSARY ACCESSORIES
FOR
THE SALEM CO-OPERATIVE SUGAR MILLS LTD.,
MOHANUR 637015.
NAMAKKAL DISTRICT, TAMIL NADU.
EMD

Rs.1.00 lakh

Due date for submission

Of tender

05.09.2011 at 2.30 P.M

Due date for opening of

Part I tender

05.09.2011 at 3.00 P.M

Due date for opening of

Part II tender (Price bid)

will be announced at the time

of opening of Part I tender.

Price Rs.10,000/-

Sl.No
1
2
3

Contents
Instructions to Tenderers
General Terms & Conditions
Technical Specifications

Page No.
05 13
14 43
44 47

DECANTER-SALEM CSM

INSTRUCTION TO TENDERERS
1.0
1.1

Introduction :
These instructions to Tenderers provide necessary guidelines to be followed
by tenderers when submitting their tenders.

2.0
2.1

Cost of Tender :
Tenderer shall bear all costs associated with the preparation and submission
of tender including visits, if need be, for personal inspection of the Sugar Mill
Project site and for acquaintance of relevant Indian Standard and Regulations
etc. and Salem Co-operative Sugar Mills will in no case be responsible or
liable for those costs, regardless of the conduct or outcome of the tendering
process.

3.0

TENDERER TO HAVE NO CLAIM ON SALEM CO-OPERATIVE SUGAR

MILLS ON THE OUTCOME OF THE TENDERING PROCESS.

3.1

Submission of any tender against the Invitation for Tenders shall constitute
an agreement and that Tenderer shall have no claim or cause of action
against Salem Co-operative Sugar Mills or its Officers, employees,
successors or assignees, regardless of the outcome of the tendering process.

3.2

Salem Co-operative sugar mill reserves the right to accept, in its sole and
unfettered discretion, any tender or reject any tender. No claim for
compensation etc. will be entertained by Salem Co-operative Sugar Mills for
rejected tenders on any ground whatsoever.

4.0
4.1

CONTENT OF TENDER DOCUMENT :

Equipment, spare parts and erection, start-up and commissioning, supervisory
services for erection, start-up and commissioning required, tendering
procedures and contract terms are prescribed in the tender document. In
addition to the Invitation for Tenders tender document includes
a.
b.
c.
d.

4.2

Instructions to Tenderers
General Terms & Conditions of Contract
Technical Specifications and Scope of Tender
Price Schedule

Tenderer is expected to examine all instructions, forms, terms and

specifications in the tender document. Failure to furnish all information
required in the tender document or submission of a tender not substantially
responsive to the tender document in any respect will be at the tenderers risk
and may result in the rejection of tender.

5.0

CLARIFICATION ON TENDER DOCUMENT

A prospective Tenderer requiring any clarification on the tender document
may notify Salem Co-operative Sugar mills in writing or by telex to the Salem
Co-operative sugar mills mailing address. The Salem Co-operative Sugar
mills will respond in writing to any request for clarification on the tender
document which it receives before 48 hours of the due time for opening of the
Part I tender prescribed by The Salem Co-operative Sugar Mills.

6.0

AMENDMENT TO TENDER DOCUMENT:

6.1

At any time after issue of tender document and before the opening of the Part
I tender, The Salem Co-operative Sugar Mills may make any changes,
modifications or amendments to the tender document and shall send
intimation of such changes to all those who have purchased the original
tender document.

6.2

In order to afford prospective tenderers reasonable time to take the

amendment into account in preparing their tender, The Salem Co-operative
Sugar Mills may at its discretion, extend the due time for submission of
tender.

7.0

PREPARATION OF TENDER (LANGUAGE):

Tender prepared by tenderer and all correspondence and documents relating
to the tender exchanged by tenderer and The Salem Co-operative Sugar
Mills, shall be in English language, provided that any printed literature
furnished by tenderer may be in another language so long as it is
accompanied by an English translation of its pertinent passages in which
case, for purpose of interpretation of the tender, the English translation shall
govern. All particulars shall be legible, written in ink or typewritten or printed.

8.0

SUBMISSION OF TENDER :

8.1

The Tenderers shall submit three separate sealed covers consisting of EMD,
Technical and Commercial Bid (Part-I) and Price bid (Part-II). All the three
sealed covers should be put in an outer envelop. The tender should not be
addressed to Personal name of the Officers.

8.2

Technical & Commercial Bid (Part-I) :

The cover should be labelled as Technical & Commercial bid (Part-I). This
shall contain only the Technical and Commercial terms of the Tender and
shall accompany the following documents.

8.3
8.3.1
8.3.2
8.3.3
8.3.4

a) Earnest Money Deposit for Rs.1.00 lakh(Rupees One lakh only) as

specified under clause 11.0
b) Tender terms & conditions in original duly signed in each page affixing
seal of the Company agreeing to abide by the various terms and
conditions of The Salem Co-operative Sugar Mills.
c) Xerox copy of the Manufacturing license for manufacturing of Decanter
which is valid on the date of tender / Authorized Dealership Certificate.
d) Documentary evidence for Design, Engineering , Manufacturing,
Supply, Erection, Testing and Commissioning of a minimum two sets of
Decanter Units with all necessary accessories Sugar mill in India
during the accounting years 2007 -08, 2008 -09 and 2009- 10. (Xerox
copies of purchase orders/ contract placed/ executed with the
tenderers should be enclosed)
e) Credentials and performance certificate in original obtained after
01.04.2006 from any two sugar mills in India where Decanter units
were supplied and commissioned.
f) The average turnover of the tenderer per annum should be minimum
Rs.2.0 crores during the past 3 years i.e. from 1.4.2007 to 31.3.2010.
g) Xerox copies of the registration certificates under the State Sales Tax
Act/VAT act and/or Central Sales Tax Act.
h) Copies of the latest Assessment orders under the State Sales Tax/VAT
and/ or Central Sales Tax Act.
i) Audited accounts for the year 2009-10 or provisional accounts duly
certified by the Chartered Accountant.
j) Authorization letter nominating a responsible officer of the organization
to participate in the tender.
k) A check list as per annexure-II for the list of documents enclosed with
the page no. The documents should be serially arranged and shall be
securely tied and bound.
Price Bid (Part-II) :
The cover should be labeled as Price Bid. The Price Bid should be
furnished as per the format prescribed in this Tender document without any
changes/omission/lapses. This should be furnished in triplicate.
All the pages of the offer should be signed in ink legibly by the Tenderer or by
a person holding authorization from the Tenderer. All signatures should be
dated.
If there is any correction/overwriting in the offer the same should be attested
without any omission.
Unsigned/incomplete/obscure/irregular Tenders are liable for rejection.

9.0
9.1

9.2
9.3
9.4
9.5
10.0
10.1
10.2

10.3

10.4

Price :
Tenderer should furnish/quote the rates strictly in the prescribed format. Split
up details for each column in the format should be furnished without any
omission. Any offer not conforming to the format prescribed is likely to be
rejected.
The price shall be quoted including all duties, taxes, insurance, installation
and Commissioning charges etc.
The details of duties and taxes and other statutory levies as applicable should
be invariably be indicated in the offer.
The prices quoted by the Tenderer shall remain firm and fixed during
performance of contract and will not be subject to variation on any account.
Tenders not complying with these conditions are liable for rejection.
DUTIES AND TAXES :
The Tenderer should indicate Excise Duty and Sales Tax, if any applicable in
the prescribed column of the Price Format.
Subject to their applicability/admissibility, excise duty, sales tax and other
similar statutory levies on the supply Erection and Commissioning of the
machinery under the proposed contract shall alone be borne by the Mills. The
excise duty, sales tax and similar statutory levies shall be paid initially by the
contractor and the amount so paid shall be reimbursed to the Contractor by
the sugar mills against the commercial invoice sent on despatch duly
supported by relevant documentary evidence/declaration, whenever
necessary.
Sugar mills shall not, however be responsible for reimbursement of Excise
Duty, Sales tax and other similar statutory levies paid by Contractor on raw
materials, components, equipment, etc. purchased by the contractor for
employment in manufacture/assembly/and spares to be supplies
under this contract as such items would form part of manufacture/ assembly
for the contractor.
If there is any variation in statutory levies, (excise duty, service tax, work
contract tax etc.) after acceptance of the tender, but prior to the date of
deliveries, the corresponding variation shall be settled between the purchaser
and seller on production of documentary evidence.

11.0

EMD :

11.1

All tenderers should furnish an E.M.D for an amount of 1.00 lakh by means of
a Demand Draft or Bankers Cheque or irrevocable bank Guarantee from a
Nationalized Bank, or specified small savings investments drawn in favour of
The Salem Co-operative Sugar Mills payable at Namakkal/Mohanur in a
separate cover. The E.M.D should be in any one of the above forms failing
which the tender will be summarily rejected.

11.2

Exemption from payment of EMD can be given to the following tenderers.

a) Tenderers who are enlisted with NSIC.
b) Tenderers who are registered as a SSI unit with the Director of Industries
and Commerce, Tamil Nadu provided they execute an agreement
indemnifying themselves to pay equal amount to the Sugar mills in case of

11.8

any breach of contract, (Draft agreement format given in the Annexure),

SSI units registered with other
States Director of Industries and Commerce can not be considered for
exemption of EMD.
c) The SSI Registration certificate issued by NSIC and the Director of
Industries and Commerce, Tamil Nadu should specifically indicate that the
Tenderer is having the capacity to supply and install and commissioning
the Machinery.
The tenderer who desires to claim exemption from EMD should enclose valid
registration certificates issued by NSIC or SSI. Tenders received without
EMD or the valid NSIC / SSI Registration Certification will be summarily
rejected.
EMD should be furnished a fresh for this tender. Requisition to adjust the
EMD from the pending bills or previous EMD remitted against any other
tender for any amount will not be entertained.
Unsuccessful Tenderers EMD will be returned as promptly as possible but
not later than 30 days after the expiry of the validity period of the Second
stage Tender/Offer.
The successful Tenderers EMD will be refunded after satisfactory completion
of the Contract. Hence the irrevocable bank guarantee if any, produced by
the successful tenderer as EMD, the period of the guarantee shall be
extended for a period upto the date of proving the performance of the
equipment.
The EMD will stand forfeited, if the tenderer withdraws his tender during the
period of validity specified in the Tender, Non-acceptance of order and Non
performance of contract.
The EMD will not bear interest.

12.0

SECURITY DEPOSIT :

12.1

The successful tenderer on whom the order will be placed shall have to remit
a Security deposit of 5% of the value of orders placed by means of DD or
Bankers Cheque or irrevocable Bank Guarantee obtained from a Nationalized
Bank of specified small savings investments in favour of Sugar Mill with in 10
days from the date of receipt of Purchase Order.

12.2

Security deposit carries no interest.

12.3

Failure to furnish the Security Deposit within the above specified time will be
considered as breach of contract which would give the mill the right to
terminate the contract and forfeit the EMD in addition to the right to imposing
risk purchase at the cost of suppliers /tenderers.
The mill reserves the right to adjust security deposit towards any amount due
to it from the successful tenderer and in such an event a successful tenderer
on receipt of intimation from the mills shall make further deposit to restore the
security deposit to the full amount.

11.3

11.4
11.5
11.6

11.7

12.4

12.5

The security deposit shall be liable to be forfeited wholly or partially at the sole
discretion of the mill should the successful tenderer either fail to deliver

supplies as per delivery schedule or to fulfill their contractual obligation or to

settle in full their dues to the mill. This will be in addition to the mills right to
make risk purchases from the open market by tender or by any other mode of
purchase at the risk and cost of the supplier in respect of such quantities that
the supplier fails to deliver in accordance with the delivery of schedule agreed
to.
12.6

The mill is empowered to deduct from the security deposit or any other
outstanding amount any sum that may be fixed by the mill as being the
amount of losses or damages suffered by it due to delay in performance or
non-performance of any of the condition of the tender/contract.

12.7

The mills shall have a lien on all or any money that may become due and
payable to the suppliers under this contract or any other contract or
transaction of any other nature either all alone or jointly with other suppliers
and unless the supplier pays and clear the claim of the mill immediately on
demand, the mill shall be entitled at all times to deduct the said sum of debt
due by the supplier from any money/security deposit which may have to
become payable to the supplier under this contract or any other contract or
transaction whatsoever between the suppliers and the mill without prejudice
and in addition to the other rights of the mill to recover the amount of any such
claim by other remedies legally available.

12.8

The Security Deposit will be refunded after satisfactory completion of the

Contract.

13.0

PERIOD OF VALIDITY OF TENDERS :

13.1

The first and second stage tenders/offers shall have a validity of 90(Ninety)
days from the date of opening of the respective tenders/offers.
Tenders/Offers with validity for a shorter period is liable for rejection by the
Tender Accepting Authority as non-responsive.

13.2

In exceptional circumstances, Tender Inviting Authority may solicit the

Tenderers consent to an extension of the period of validity. The request and
the responses thereto shall be made in writing. A tenderer may refuse the
request without forfeiting his EMD. A tenderer who accepts the request will
not be permitted to modify his Tender.

14.0

DUE DATE AND TIME FOR SUBMISSION OF TENDERS/OFFERS :

14.1

The tender must be submitted in person or by post at Commissioner of

Sugars office, 690, Anna Salai, Chennai 600035 at 2.30 PM on
05.09.2011.

14.2

The technical bid will be opened on the same day at 3.00 PM in the presence
of the tenderers who are present.

14.3

The Salem Cooperative Sugar Mills may, at its discretion, extent this due
date and time for submission of Tenders / Offers by amending this Tender

Document in which case all rights and obligations of The Salem Cooperative
Sugar Mills and Tenderers will thereafter by subject to the due date and time
as extended.
14.4

Any Tender / Offer received after the prescribed due date, and time for
submission of Tender / Offer, will be rejected and / or returned unopened to
the Tenderer.

15.0
15.1

OPENING AND EVALUATION OF TENDERS/OFFERS :

The sub committee/Tender scrutiny committee will first open the cover
containing the two separate bids and then the Part-I bid in the presence of
Tenderers Representative on the date specified in this Tender document.
Tenderers Representatives (totally not exceeding two per tenderer) who are
present shall sign a register evidencing their attendance. Tenderers
Representative should submit a duly executed Authorization letter issued by
the Tenderer.
The representative who will be attending the Tender
proceedings should be competent to discuss on Technical, Commercial and
price aspects and negotiate if necessary and also bind their company on such
decision.

15.2

Tender Scrutiny Committee will examine the First Stage Tender to determine
whether they are complete; whether all documentary evidences
and EMD have been furnished whether the documents have been properly
signed and whether Tenders/Offers are generally in order.

15.3

Tender Scrutiny Committee will proceed with a detailed evaluation of the

tenders to determine whether the technical and commercial parts (without
price schedule) comprising the tender are substantially responsive to the
requirement set forth in this Tender Document. In order to reach such a
determination, Tender Scrutiny Committee will examine and compare the
technical / financial capability of the tenderes for the execution of the contract
based on the information supplied by the tenderers, taking into account of the
following factors in the matter and to the extent indicated.
a) Conformity to the Technical Specifications and scope of Tender,
Specified in the Tender document.
b) Conformity to the required delivery Schedule, specified in this Tender
document.
c) Conformity to the General Terms and Conditions of the contract,
specified in this Tender document.
d) Conformity to the submission of EMD.

15.4

Tender Accepting Authority will either

a) Accept the tender without any change in the Technical & Commercial
bid.
(or)
b) Reject a Tender that is substantially non-responsive and shall not open
Part-II

15.5

PRICE BID(PART-II):
a) In case the technical bids are satisfactory, Part-II Price bid of eligible
tenderers shall be opened.
b) Tender Accepting Authority will evaluate and compare the tenders
previously determined to be substantially responsive.
c) The evaluation of price tender shall include all Central duties such as
customs duty and central excise duty and sales tax as a part of the
price as detailed below:
1. The evaluation of price of an imported item will include the
custom duty.
2. In evaluation of the price of articles which are subject to excise
duty, the price will be determined inclusive of such excise duty.
The CENVAT
benefit will not be taken into account for
evaluation of price.
3. In a tender where all the tenderers are from within the State of
Tamil Nadu, or where all the tenderers are from outside
the State of Tamil Nadu, the VAT/Sales Tax/CST shall be
included for the evaluation of the price and
4. In Tender where the tenderers are both from the State of Tamil
Nadu as well as from outside the State of Tamil Nadu, the VAT
Act shall be excluded for evaluation of the price.

15.6

The evaluation and comparison shall include fifteen percent price preference
for domestic Small Scale Industrial Units and ten percent price preference for
the public sector undertakings of the Government of Tamil Nadu in respect of
products and quantities manufactured by them.

15.7

For determination L1 price, the total price offered for Design, Engineering,
Manufacturing, Supply, Erection and Commissioning of the equipment will be
taken into account.

15.8

Arithmetical errors will be rectified on the following basis:

a) In case of discrepancy between the prices quoted in words and figures
lower of the two shall be considered.
b) In case of discrepancy between the unit price and the total price that is
obtained by multiplying the unit price and quantity, the unit price shall
prevail and the total price shall be corrected.
c) In case of discrepancy between the rate of duties and taxes and the
amount of duties and taxes, the rate of duties and taxes shall prevail
and the amount shall be corrected.

16.0

DELIVERY SCHEDULE :

16.1

The delivery of the machinery and equipment ordered shall be completed

within 150 days from the date of issue of purchase order and erection and
commissioning of the machinery shall be completed within 60 days thereafter.
The time and date of delivery are the essence of the contract and the goods
must be despactched within the time and subject to the conditions specified,
otherwise the mill will have the option to cancel the whole or any part of the
order and purchase the materials from alternative sources at the risk,
responsibility and cost of the supplier.
If extension of delivery period is allowed, it will be considered as extended
delivery period for all purposes of levying liquidated damages.

16.2

16.3
17.0

AWARD OF CONTRACT :

17.1

The Salem Co-operative Sugar Mills will award the contract to the successful
tenderer whose tender has been determined to be substantially responsive
and has been determined as the lowest evaluated tender.
Tender Accepting Authority reserves the right to accept or reject any tender,
to annul the tendering process and reject all tenders at any time prior to award
of contract.

17.2

18.0

NOTIFICATION OF AWARD :

18.1

Prior to the expiry of the validity period The Salem Co-operative Sugar Mills
will notify the successful tenderer in writing by registered letter or by fax to be
confirmed by writing by registered letter, that his tender has been accepted.

18.2

The Notification of the Award will constitute the formation of the contract.

19.0

SIGNING OF CONTRACT :

19.1

At the same time as The Salem Co-operative Sugar Mills notifies the
successful tenderer that his tender has been accepted, The Salem Cooperative Sugar Mills will send the formal contract incorporating all documents
between the parties.

19.2

Within 10 days of receipt of the formal contract, the successful tenderers shall
sign the contract with the concerned Sugar mills.

19.3

Failure of the successful tenderers to comply with the requirement of the

clause shall constitute sufficient grounds for the annulment of the award and
forfeiture of EMD.

ANNXURE I
ANNUAL TURNOVER STATEMENT
The Annual Turnover of M/S.
of the past three years are given below and certified that the statement is true and
correct.

Sl.No
1
2
3

Year
2007-2008
2008-2009
2009-2010
Total
Average Turnover per annum

Turnover (Rs. in Lakhs)

Date

Signature of Auditor/
Chartered Accountant.

Seal

(Name in Capital)

Signature of the tenderer with seal.

ANNEXURE II
1.
2.

3.

4.
5.
6
7
8
9
10
11

Technical and Commercial Offer

A Demand Draft or Bankers Cheque No:
. Dated for Rs.1.00 lakh(Rupees one
lakh only)drawn in favour of The Salem Cooperative Sugar Mills drawn on any
Nationalized Bank payable at Namakkal
towards the Earnest Money Deposit.
Tender terms & Conditions in original duly
signed in each page affixing seal of the
Company agreeing to abide by the various
terms and conditions of The Salem Cooperative Sugar Mills.
Xerox copy of the Manufacturing license issued
by Statutory Authority which is valid on the date
of tender / Authorized Dealership Certificate.
Documentary evidence for Supply, Erection
and Commissioning of Decanter units (two
numbers)
Credentials and performance certificate in
original obtained after 01.04.06 from any two
sugar mills.
Annual turnover statement for the last three
Accounting Year viz.2006-07,2007-08,2008-09
as per annexure I duly certified by the auditor.
Xerox copies of the registration certificates
under the State Sales Tax Act/VAT and the
Central Sales Tax Act.
Copies of the latest Assessment orders under
the State Sales Tax Act/VAT and the Central
Sales Tax Act.
Audited accounts for the year 2008-09
Authorization letter nominating a responsible
Officer of the Organization to participate in the
Tender.

Signature of the tenderer with seal.

Page No.
Page No.

Yes
Yes

No
No

Page No.

Yes

No

Page No.

Yes

No

Page No.

Yes

No

Page No.

Yes

No

Page No.

Yes

No

Page No.

Yes

No

Page No.

Yes

No

Page No.
Page No.

Yes
Yes

No
No

Name of the Machinery

Basic Price in Rs.
P & F in Rs.
MillsTransport charges from tenderers Works to Sugar
Insurance in Rs.
Total Price excluding ED/Taxes
ED(%) in Rs.
S.T.&S.C (%) in Rs.
Erection & Commissioning charges
Others
Total price inclusive of all

PART-II

PRICE BID FOR DESIGN, ENGINEERING, MANUFACTUTING, SUPPLY,

ERECTION, TESTING & COMMISSIONING OF DECANTER UNIT WITH ALL
ACCESSORIES TO SUGAR MILL.

1
2
3
4
5
6
7
8
9
10
11

Signature of the tenderer with seal.

GENERAL TERMS & CONDITIONS OF CONTRACT

1. DEFINITIONS :
1.1
Words and phrases listed below, as used in these General Terms and
Conditions of Contract and in the instructions to Tenderers and Tender
Specifications shall have the meaning specified against each word or phrase.
Contract

The agreement entered into between SUGAR MILL and Successful

Tenderer, based on the tender document and the tender submitted by
Successful Tenderer and will include subsequent amendments thereto,
if any, and supersede and cancel any and all previous correspondence,
whether written, oral or implied between the parties.
Contractor Sole Proprietor, Firm or Company/ Corporation, Society whose tender
has been accepted and shall include its Executors, Administrators,
Legal Representatives, Successors and Permitted Assigns.
Site Existing premises of SUGAR MILL at which Equipment are to be supplied
under the Contract or are to be erected and/or service is to be
performed under the Contract.
Tenderer
A Sole Proprietor or Firm or Corporation/Company submitting a tender
against the Invitation to Tender and shall include its Executors,
Administrators, Legal Representatives, Successors and Permitted
Assigns.
Equipment Plant, machinery, equipment and any part thereof to be supplied under
the Contract by Contractor at Site. (Decanter with Accessories.)
Spare Spare parts to be supplied under the Contract by Contractor direct to Sugar
mill.
Delivery
Sugar Mill site.
Contract}
For sugar mill site which includes excise duty, packing and
Price
}
forwarding, transport charges, insurance charges taxes payable to
Contractor for the full and proper performance of his contractual
obligations under the contract and including price for erection, start-up
and commissioning and all other services specifically provided for in
the Contract.
Erection
Putting up in position, alignment and proper installation of equipment
supplied under the Contract and shall include auxiliaries and
accessories.
Start-up

First operation of the equipment after erection, cleaning, reassembly, if

any and completion of initial adjustments and trials to get the
equipment ready for commissioning.
CommissCommencement of continuous commercial operation of the
ioning equipment after successful start-up.
Tender
Inviting
Authority

The Special Officer, The Salem Co-operative Sugar Mills Ltd.,

Mohanur, who have floated this tender.

Tender
Accepting
Authority

The State level Advisory Committee Constituted by Government of

Tamil Nadu for accepting tender based on the evaluation report of
the Tender Scrutiny Committee.

Tender

The Sub Committee appointed by the State Level Advisory Scrutiny

Committee for Scrutiny and evaluation of tenders which will Committee
scrutinize the tender and submit its recommendation to the Tender
Accepting Authority.

1.2

Clause Titles :
The Clause titles and sub-titles used in the contract are given for guidance
and convenience and shall not be deemed to be part of the clause of the
contract to be taken into consideration in the interpretation of the contract.

2.

SUPPLY OF EQUIPMENT AND SPARES

2.01

Extent and Scope of Supply:

Extent and Scope of supply of equipment and spare parts shall be as per this
tender document and as finally included in the contract with or without
modifications, if any, after discussions between Sugar Mill and Contractor.

2.2

Inspection at Contractors Work:

2.02.01
Sugar mill or its duly authorized representative shall at all reasonable times
have access to Contractors premises or work and also the power to examine,
inspect and call for tests of the materials and workmanship during the
manufacture and assembly in Contractors premises or works.
2.02.02
Where a part of Equipment and Spare parts is under manufacture, not at
Contractors premises but at other premises, Contractor shall obtain
permission for Sugar mill or its duly authorized representative to examine,
inspect or test as if such Equipment and Spare Parts were being
manufactured at Contractors own premises.
2.02.03
Contractor on being requested shall present sufficient documentary evidence
that all materials used in the manufacture of Equipment and spare parts will
meet the specification requirements. Contractor shall produce requisite test
certificates along with specimen and test pieces on which tests were carried
out by the manufacturer, at the time of examination.
2.02.04
Sugar mill or its duly authorized representative shall have the right to be
present at all the tests carried out and arranged by Contractor. If called for
samples and specimens shall become sugar mills property. Contractor shall
notify sugar mill in an appropriate manner as to the progress of the executing
order so that the inspections or tests can be carried out, as may be required
to ascertain without prejudice to the Contractors liability, whether the
materials and/or services are in conformity with the requirements of the
Contract.

2.02.05
Sugar mill shall be at liberty to reject all or any Equipment and Spare Parts or
workmanship, which are not in accordance with the Contract or do not fulfill
the requirements of the Contract.
2.02.06
Prior to signing of Contract, Contractor shall communicate to Sugar mill
details of the tests contemplated and obtain its agreement of the tests to be
conducted. Contractor shall thereafter give such reasonable notice as may be
acceptable to sugar mill but not less than fifteen days in advance of any
material being ready for inspection and/or testing, specifying the period likely
to be required for such testing, and sugar mill shall (unless the inspection or
test is voluntarily waived by Sugar Mill) on giving 24 (Twenty four) hours
previous notice in writing to Contractor to attend at Contractors or his
subcontractors works as the case may be attended and witness the testing
as soon as possible from the date on which the material is notified as being
ready for testing or inspection failing which visit, Contractor shall proceed with
the test and shall forthwith forward to Sugar Mill duly certified copies of the
test reports.
2.02.07
In all cases, where examination, inspection and testing are to be carried out
either at the premises of Contractor or of any sub-contractor, Contractor
except where otherwise specified, shall provide, free of charge to Sugar Mill,
such labour, materials, electricity, fuel, water, stores, apparatus and
instruments as may be reasonably required to carry out efficiently such tests
of equipment, in accordance with the Contract and shall give facilities to
Sugar Mill to accomplish and/or witness such testing.
2.02.08
When the tests have been satisfactorily completed at Contractors or subcontractors work, Sugar mill shall forthwith issue a certificate to that effect. If
a final certificate cannot be issued, a preliminary or provisional certificate shall
be issued. If the tests were not witnessed by Sugar mill, the certificate shall
be issued in receipt and scrutiny of the test reports from Contractor but not
later then 15(fifteen) days after the receipts of the test reports by Sugar mill,
no equipment and spare parts shall be despactched before such certificates
have been issued. The satisfactory completion of these tests or the issue of
the certificate shall not absolve the responsibility of Contractor, should it on
further tests, after erection, start-up and commissioning be found not to
comply with the requirements under the Contract.
2.02.9
Sugar mill shall bear all expenses of travel, boarding and lodging and other
incidental expenses of the representative(s) deputed by them for
inspection/witnessing inspection.

2.3
PROGRESS REPORT :
2.03.01
Contractor shall submit to Sugar mill monthly progress reports on or after the
seventh day of every month, giving the status of the contract work along with
adequate number of photographs, indicating the various stages of execution
of this Contract. However if sugar mill requires any additional information, the
same shall be provided as supplementary information in the reports by
contractor.
2.03.02
For this purpose, Contractors work shall be subdivided and numbered into
major categories and arranged in such a manner as to describe the normal
sequence of the work. Progress shall be reported by these major categories
in all reports along with Critical Path Network and a contract completion bar
chart showing the starting and completion dates of all major categories for
engineering, purchasing, procurement of raw materials, manufacture,
inspection and despatch along with the percentage completion of each of the
above.
2.03.03
Progress report shall include a drawings status report containing a listing of all
drawings and documents as together with the related reference number and
titles and giving the schedule completion dates, dates when the drawings and
documents have been/will be submitted and date of receipt of approval etc.
2.03.04
Progress report shall also include a manufacturing status report detailing the
progress of procurement of raw materials, manufacture, when the particular
item or subassembly is expected to be ready for inspection, status of
inspection , delivery etc both for the contractors work and those of his subcontactors.
2.03.05
Contractor shall submit one original and five copies of such reports, including
photographs to Sugar Mill. Mill will have the right to depute its representatives
to ascertain the progress of work at the premises or works of contractor or of
any of his sub-contractor. Submission, receipt and acceptance of such
progress reports shall not prejudice the rights of sugar mill under this contract,
nor shall operate as estoppels against mill, merely by reason of the fact that
sugar mill has not taken notice of or subjected to test any information
contained in such reports.
2.4
TIME SCHEDULE
2.04.01
Contractor shall complete delivery of any and all items of Equipment and
spare parts within the period specified in the contract. However, in order to
enable site preparation, erection, start-up and commissioning to proceed
smoothly, all items of Equipment and Spare parts shall be delivered ahead of
the schedule, in a sequential order in which they will be required for erection
at site.

2.04.02
Sugar Mill plans to complete the erection, start-up and commissioning of the
Equipment as per the schedule included in the Contract.
2.04.03
Technical information shall be provided by Contractor by the dates specified
in the Contract Information to be provided by Sugar Mill, if any, will be
provided in sufficient time to enable Contractor to meet his obligations under
his Contract and in any case not later than the dates given in the Contract.
2.04.04
If Contractor has delayed in performing any of his obligations under the
Contract by any act or neglect of Sugar Mill or any of its servants, agents of
sugar mill other Contractors or by any changes ordered by Sugar Mill, then
the time for performing such obligations thereby affected will be extended by
such time as is reasonable in the circumstances.
2.5

DELIVERY

2.05.01
Equipment/part thereof and spare parts shall be delivered at sugar mill site.
2.05.02
The date of completion of delivery shall be the delivery date as defined in
clause 2.05.01 as applicable, of the last consignment of any and all items of
Equipment/part thereof and spare parts due under the contract.
2.6

OWNERSHIP AND RISK

2.06.01
Ownership and risk in equipment shall pass to sugar mill upon delivery as
defined in Clause 2.05.01 regardless of the delivery of documents of title to
sugar mill for the purpose of securing payment under the contract and
regardless of any such payment by sugar mill.
2.06.02
The passage of ownership and risk as provided in clause 2.06.01 above shall,
however, be without prejudice to Contractors liability for due fulfillment of any
and all of the post delivery obligation/responsibilities to be undertaken by him
under the Contract vide clause 2.07 hereof.
2.7

POST DELIVERY OBLIGATIONS/ RESPONSIBILITIES OF CONTRACTOR

Not withstanding the delivery of Equipment or part thereof and Spare parts by
Contractor to sugar mill at FOR point as referred to in Clauses 2.05.01 and
2.05.02 hereof and the passing of ownership risk in all such equipment to
sugar mill at that point of time of delivery as referred to in clause 2.06.01
hereof. Contractor shall be wholly and exclusively responsible for rendition of
timely services for startup, commissioning and for demonstration of the
guaranteed performance of any and all items of Equipment supplied by him
and of the various process parameters. Contractor shall also be responsible

for fulfillment of his liabilities under the Contract during the warranty period of
twenty four (24) months reckoned from the date of commissioning of any and
all items of Equipments supplied by them.
2.8
STORAGE OF EQUIPMENTS
2.08.01
The Contractor will endeavor to store each consignment of Equipment /part
thereof and spares as and when received at site to protect it from damage,
dust, corrosion etc.
2.09

PERFORMANCE GUARANTEE

2.09.01
Guarantee: Contractor shall guarantee the performance of the equipment to
be supplied and also the various process parameters in accordance with the
provisions that may be stipulated in the Contract.
2.09.02
Demonstration of Guaranteed Performance
2.09.02.01
For purposes of demonstration of guaranteed performance of each equipment
and also the process parameters, performance guarantee runs shall be
arranged and carried out by Contractor in the presence of Mills officials during
the first season for a continuous period of 30 days when the factory is
operated to its capacity.
2.09.02.02
Performance guarantee runs shall be carried out in accordance with the
procedure that may be detailed in the contract which will also define the
consequences of success or failure to achieve the guaranteed performance.
2.10

VARIATIONS:

2.10.01
Sugar mill shall have the power and authority to make any alterations or
omissions or substitution or additions to form the original specifications,
drawings, designs and instructions, which may be considered necessary
during the progress of work and Contractor shall carry out the supply/ work in
accordance with the instructions which may be given to him in writing duly
signed by Sugar Mills Chief Executive. Such alterations, omissions, additions
or substitutions shall not invalidate the contract. Any altered, added or
substituted supply/ work which Contractor may be directed to do in the
manner above specified as part of supply/work, shall be carried out by

Contractor at the existing terms and conditions. Any price adjustment on this
account shall also be subjected to mutual agreement of both the parties.
2.11

PATENTS

2.11.1 Contractor shall indemnify sugar mill against all costs and damages
awarded against or incurred by sugar mill in any suit based on a claim that
Equipment/part thereof constituted on infringement of letters/patent or
registered design of Republic of India or of any other country provided always
that this indemnify shall not apply to any infringement which is due to
contractor having followed a design or instruction furnished by sugar mill and
its servants and agents or to the use of Equipment/part thereof not supplied
by Contractor and provided also that this indemnity is conditional on :
a) Sugar mill giving to Contractor notice in writing of any claim being made or
suit threatened or brought against Sugar mill not later than ten days after
sugar mill learns of such a claim or suit.
b) Sugar mill not making any admission prejudicial thereto
c) Sugar mill permitting Contractor at Contractors expense to conduct any
litigation that may ensue and all negotiations for a settlement of the claim
or suit.
d) Sugar mill for the purpose of contesting any such claim provided all
available assistance to Contractor who will reimburse Sugar mill for all
reasonable expenses incurred in so doing.
2.11.02
The above shall be the entire liability of Contractor for infringement or alleged
infringement of letters patent or registered design of Equipment/part thereof.
2.12 PACKING
2.12.01
All equipment shall be carefully and properly packed for inland rail/road
movement as the case may be and Contractor shall be responsible for its
quality.
2.12.02
All packing shall be sufficient to prevent damage in transit and suitable to
withstand rough handling.
3.

SERVICE IN CONNECTION WITH ERECTION, START-UP &

COMMISSIONING
3.01 Services for Complete Erection, Start-up and Commissioning
3.01.01
When this Contract requires contractor to undertake complete erection, startup and commissioning of Equipment supplied under this contract, the
conditions specified in this clause will apply.
3.01.02
The responsibilities of Contractor shall include but not be limited to the
following.

3.01.02.01
Ensuring the correctness of materials and Equipment in the order in which
they will be required for erection.
3.01.02.02
Taking delivery of materials and equipment from Sugar mills store/ stock yard
at site and moving it to Contractors storage area and/or erection site unless
otherwise provided in this contract.
3.01.02.03
Opening of crates and packing cases, inspection and checking of
Equipment/materials.
3.01.02.04
Repairing and replacement of Equipment/materials damaged or lost in transit
or at site and assisting sugar mill in filing and processing of insurance claims
for damaged/loss of Equipment/materials.
3.01.02.05
Ensuring that adequate qualities of correct commissioning/ spares and
supplies are available at site for the purpose of the start-up of Equipment.
3.01.02.06
Making arrangements to draw electricity and water to the erection site from
locations at site where electricity and power shall be provided by Sugar mill at
such terms and conditions as stipulated in this contract.
3.01.02.07
Checking foundations as constructed, including final adjustment of foundation
levels of chipping and dressing, checking locations, elevations etc for anchor
bolts and base plates, connecting up electric power supply and water supply
and carrying out all minor civil work as may be required in connection with the
erection work.
3.01.02.08
Complete erection of all materials and equipment supplies by contractor as
well as those that may be procured from/frabricated by others based on
contractors drawings, specifications or bills of materials. This shall include
complete erection of equipment, piping, hangers, structures etc supplied
under this contract including aligning, lining and leveling and grouting of
anchor bolts and base plates, connecting up electric power supply, water and
utilities, applying, including touching up of approved final painting to all
equipment, piping hangers, structures etc supplied under this contract.
3.01.02.09
Starting up and operating equipment to meet specified performance
guaranteed and handing over equipment to sugar mill on the issue of the
Provisional Acceptance Certificate.

3.01.02.10
Providing all consumable materials and stores required for the work.
3.01.02.11
Providing all ladders, platforms, temporary supports and other necessary
facilities required for the handling and erection of equipment supplied under
the Contract as well as those that may be procured from/ fabricated by others
based on Contractors drawings, specifications or bills of materials.
3.01.02.12
Unless otherwise provided in this contract, providing all construction/ erection
equipment, welding equipment, tools and tackles, instruments and appliances
required for the erection, testing and commissioning of Equipment.
3.01.02.13
Providing necessary supervisory personnel, staff, skilled and unskilled labour,
to ensure that the whole of the erection work is completed in all respects
within the period specified in this contract. Contractor shall ensure, when
local laws require, that the concerned employees obtain and hold certificates
of competency for their work from the competent authority.
3.01.02.14
On completion of the erection work and connecting up of electric power
supply, water and utilities, Contractor shall promptly notify sugar mill of the
proposed date of the commencement of the startup operations. The duration
of the start-up period shall be established in a schedule which shall be part of
this contract. Sugar mill will provide requisite, such as fuel, power, water and
utilities to Contractor as required for operating equipment during the start-up
period, and during this period equipment shall be operated under the
supervision of Contractor.
3.01.02.15
Should the start-up period extend beyond the schedule period due to
difficulties encountered with equipment supplied under this contract or due to
inadequacy of Contractors personnel or due to any other reason for which
Contractor is responsible, Sugar Mill will have the right to charge such amount
from Contractor as may be reasonable by Sugar mill for the facilities provided
by Sugar Mill as specified in clause 3.02.02 hereof during the extended
period.
3.2

Additional Conditions for Complete Erection, Star-up and

Commissioning of Equipment.
3.02.01
When this contract requires Contractor to undertake complete erection, startup and commissioning of equipment supplied under this contract, additional
conditions specified in this clause will apply.
3.02.02
Contractor shall be solely responsible for satisfactory erection, start-up and
commissioning of Equipment supplied under this contract, including
demonstration of performance guarantees, notwithstanding that Contractor

may have been assisted by sugar mill or his authorized representative in

doing so.
3.02.03
Supervision by Chief Engineer and Chief Chemist of Sugar Mills.
Erection work shall be carried out by Contractor under the general supervision
and to the satisfaction of the Chief Chemist/Chief Engineer of the Sugar mills.
Contractor shall receive instructions and directions from the Chief
Chemist/Chief Engineer of the Sugar mills in connection with the work and
shall strictly abide by the same. If contractor performs any work in a manner
contrary to this contract without the written approval of the Chief Executive,
the Contractor shall bear all the costs and losses arising there from 3.03.05
Programme and Particulars of work and Progress Reports.
3.02.04
Programme and Particulars of Work & Progress Reports:
3.02.04.01
Contractor shall submit to sugar mill for approval before the commencement
of erection work and subsequently, at such times as may be required by sugar
mill, the programme and order in which Contractor proposes to carry out the
work, with the dates and completion times for various parts and phases of the
work, including particulars regarding Contractors arrangements for carrying
out the work and of the erection and transportation equipment and tools and
category wise staff and labour which contractor shall engage on the work.
Such programmes shall within the overall time schedule of completion of
erection of equipment as specified in this contract. The submission to and
approval by sugar mill of such programme or the furnishing of such particulars
shall not relieve contractor of any of his duties of responsibilities for
satisfactory erection, start-up and commissioning under this contract.
Whenever sugar mill desires the contractor to take up a particular job
expeditiously on priority, in the overall interest of the project, contractor shall
forthwith proceed with accordingly, without demur.
3.02.04.02
During the progress of the work, contractor shall submit to sugar mill one copy
each of fortnightly progress report and such other reports on the erection
work.
3.02.05
Contractors Agent and Personnel
3.02.05.01
In order to carry out his responsibilities under this clause, contractor shall
employ and post one competent Project Manager having qualification, Degree
in Mechanical Engineering and minimum 5 years experience in erection of
process industry, whose name shall be previously communicated in writing by
Contractor to Salem Co-operative Sugar mill to superintend in erection work.

3.02.05.02
Contractor, on the request of Engineer, shall remove forthwith from site any
person employed thereon by him who may, in the opinion of Sugar mill, be
incompetent or misconduct himself. In such cases, contractor shall provide
immediately a competent person in replacement.
3.02.06
Reconciliations Return of Surplus Materials.
3.02.06.01
Notwithstanding anything contained to the contrary anywhere in this contract,
wherever any materials for the execution of the work are procured with the
assistance of sugar mill, either by issue from sugar mills stocks or purchase
made under orders or permits or licenses issued by sugar mill, Contractor
shall use the said materials economically and solely for the purposes of the
work and shall not dispose them off without the written permission of sugar
mill and after reconciliation shall return to sugar mill all such surplus
serviceable materials that may be left with contractor after the completion of
this contract or at its termination for any reason whatsoever, on being paid for
or credit such price as sugar mill shall determine, having due regard to the
initial cost and the condition of the materials at the time of such return thereof.
The price to be allowed to Contractor however shall not exceed the amount
charged to him, excluding the storage charge if any. The decision of sugar
mill in this regard shall be final and conclusive. In the event of a breach of
the aforesaid condition, contractor shall (in addition to making himself liable
for action for contravention of other terms of the license or permit and/or for
criminal breach of trust) be liable to sugar mill for payment of double the cost
of materials not returned as determined by sugar mill plus all moneys, or
profits resulting or which in the usual course, would have resulted to sugar mill
by reason of such breach.
3.02.07
Accident or Injury to Workmen:
3.02.07.01
Contractor shall be solely liable for any accident or injury that may happen to
any of his personnel engaged in connection with the erection work covered
under this contract. Sugar mill shall not be liable for, or in respect of any
damage or compensation payable at all in respect of or in consequence of
any accident or injury to any personnel in the employment of contractor and
contractor shall indemnify and keep indemnified the sugar mill against all such
claims, damages, compensations and proceedings, in case sugar mill,, for
any reason, is made liable therefore.
3.02.07.02
Contractor shall forthwith report to Chief Engineer/Chief Chemist of the Sugar
mill all cases of accidents to any of his personnel and shall make every
arrangement to render all possible assistance and aid to the victims of the
accident that may occur during erection work.

3.02.08
Compliance with Statutory and Other Regulations.
3.02.08.01
Contractor shall in all matters arising in the performance of this contract,
conform, at his own expense, with the provision of all Central and State
Statues, ordinance or laws and the rules, regulations or byelaws of any local
or other duly constituted authority and shall keep sugar mill indemnified
against all penalties and liabilities of every kind of breach of any such statute,
ordinance, law, rule, regulation or bye-law by contractor or his agents, subcontractors, employees/workmen.
3.02.08.02
Contractor shall give all notices and pay all fees and taxes required to be
given or paid under any Central or State statutes, ordinances or other laws or
any regulations or bye-laws of any local or other duly constitutes authority in
relation to the erection work. If on account of his failure to so comply with, the
sugar mill is to pay the same and the contractor shall forthwith reimburse the
same to Sugar mill.
3.02.09
Travelling Expenses: All traveling expenses for Contractors personnel be
borne by contractor.
3.02.10
Compliance with Labour Laws and Rules
3.02.10.01
In respect of all labour, directly or indirectly, employed by Contractor for the
erection work, contractors shall comply with the provision of the Contract
Labour (Regulation and Abolition) Act 1970. Payment of Wages Act, 1936,
Workmens Compensation Act, 1923 and other related Acts including their
amendments from time to time.
3.02.10.02
Accommodation for Contractors Personnel: No quarters shall normally be
provided by sugar mill for the accommodation of contractor or any of his staff
employed in connection with the erection work. Anyhow, the accommodation
will be provided to the Erection crew, subject to availability or free of cost
3.02.10.03
Medical Facilities at Site: Contractor shall provide medical facilities at site as
per rules in force in relation to the strength of Contractors staff and workmen.
3.02.10.04
Age Limit of Labour: Contractor shall not employ persons below the age of
18 as labour for the erection work.
3.02.10.05
Observance by Sub-Contractors: Contractor shall be responsible for the
observance of the provisions of Clause 3.0210.01 to 3.02.10.04 hereof by any
sub-contractor employed by him in the execution of this contract.

3.02.11
Time of Completion for Erection Work and Delays
3.02.11.01
The Date of Commencement of Erection Work: The date of
Commencement for erection work shall be reckoned from the day on which
contractor is given possession of site to commence erection, which will be
indicated to him in writing by Sugar Mill.
3.02.11.02
Time of Completion of Erection Work: Time is the essence of this contract,
subject to any requirement in this contract as to the completion of any portion
of the erection work before the completion of the whole of the erection
work, including conducting performance test to demonstrate performance
guarantees to the satisfaction of sugar mill, shall be completed within the time
stipulated in this contract as per the Clause 16.1.
3.02.11.03
Extension of Time of Completion for Erection Work: Additional work of
any kind or other circumstances of any kind whatsoever, which may occur, be
such as fairly to entitle contractor to an extension of time for the completion of
the erection work, the sugar mill shall determine the extent of such extension.
3.02.11.04
Liquidated Damages for Delay in Erection Work: If contractor fails to
complete the whole of the erection work within the time as per the Clause
16.1 contractor shall be liable to pay to sugar mill as liquidated damages for
such default, a sum calculated at the rate of % of the contract price for
erection, start-up and commissioning of Equipment for every weeks delay
subject to a maximum of five percent of the contractor price for erection, startup and commissioning of equipment. Once the liquidated damages reaches
maximum limit of 5% the contract will be terminated automatically and the
work will be carried out at the cost and risk of the defaulter (Supplier).
3.02.12
Subletting/Sub-Contract: Contractor shall not sub let/ sub-contract the
whole or any part of the erection work without the written consent of sugar
mill, and such consent, if given, shall not establish any contractual relationship
between the subcontract(s) and sugar mill and shall not relieve the contractor
of any responsibility or liability or obligation under this contract. Contractor
shall be entirely responsible for the acts, defaults and negligence of any subcontractor of his agents or workmen as if they were the acts, defaults and
negligence of contractor or his agents or workmen provided always that
execution of details of erection work by petty contractors under the direct and
personal supervision of contractor or his agent shall not amount to sub-letting
within the meaning of the clause.
3.02.13
Damage to Persons or Property: Contractor shall indemnify and keep
indemnified sugar mill against all losses and claims for injuries or damages to
any person or any property whatsoever which may arise out of or in the

course of the work at site carried out by Contractor, his servants or agents or
sub-contractors and/or lack of inadequacy of safety devices on the equipment
supplied under the contract until the expiry of the warranty period and against
all claims, demands, proceedings, damages, costs charges and expense
whatsoever in respect thereof or in relation thereto. There shall be no
restriction on the monetary limit of the liabilities.
3.02.14
Third Party Insurance: Before the commencement of the erection work,
contractor shall insure (but without limiting his obligation and responsibilities)
against any damages, loss or injury which may occur to any property
(including that of the sugar mill) or to any person (including any employee of
the sugar mill) by or arising out of this contract. Such insurance shall be
effected in the joint names of sugar mill and contractor with an insurer for an
amount with a maximum indemnity for any single accident, in accordance with
the terms to be stipulated by sugar mill, and contractor shall, whenever
required by sugar mill submit to sugar mill the
policy or policies of insurance and the receipts for payment of the current
premiums.
3.02.15
Site to be cleared on Completion of Work: During erection, contractor shall
at all times keep the working and storage area used by him free from
accumulation of waste materials and/or rubbish; immediately after the
completion of erection. Contractor shall remove or dispose of all temporary
structures, waste, debris, rubbish etc and leave the site in a clean condition to
the satisfaction of sugar mill
3.02.16
Possessions Prior to Completion: Sugar mill shall have the right to take
possession of or use any completed or partially completed part of the work.
Such possession or use shall not be deemed to be in acceptance of any work
done not in accordance with this contract.
3.02.17
Suspension of Erection Work:
3.02.17.01
Contractor shall on the written order of sugar mill, suspend the progress of the
whole of the erection work or any part thereof, for such times or times and in
such manner as sugar mill consider necessary and shall during such
suspension, properly protect and secure the work as far as necessary in the
opinion of Sugar mill, if such suspension is:
Provided for in this contract; or
Necessary for the proper execution of the erection work or on account
of some default on the part of contractor; or
Necessary for the safety of the work or thereof.
Contractor shall not be entitled to the extra costs (if any) incurred by him
during the period of suspension of the erection work, but, in the event of any
suspension ordered by sugar mill for reasons other than aforementioned and
when each such period of suspension exceed fourteen days. Contractor shall
be entitled to such extension of time for completion of the erection work as
sugar mill may consider proper, having regard to the period of such
suspension.

4.

PRICES

4.1

Contract Price of Equipment and Spares: Contract price of Equipment and

spares shall be on FOR Sugar Mills site.

4.2

Insurance

4.02.01
Insurance shall be arranged by contractor in accordance with conditions
contained in the Tender Document. Charges for unloading Equipment
and Spares at site will be to Contractors account.
Sugar mill shall be responsible for provision at its cost, storage-cum-erection
insurance coverage of all items of Equipment to be supplied under this
contract.
4.3
Duties and Taxes
4.03.01
Subject to clause 4.03.02 hereof and their applicability/admissibility, excise
duty, sales tax and other similar statutory levies only on equipment and
spares to be supplied under this contract shall be to sugar mills account on
submission of sufficient documentary evidence (in respect of
Excise duty and other similar statutory levies) and declaration (in respect of
sales tax)for such claims having been remitted by him direct to
Government/collected for remittance direct to Government.
Sugar mill shall not however, be responsible for reimbursement of excise
duty, sales tax and other similar statutory levies paid by contractor on raw
materials, components, equipment etc purchased by contractor for
employment in manufacture/assembly/sale of equipment and spares to be
supplied under this contract as such items would form part of the cost of
manufacture/assembly/sale to contractor.
Also, sugar mill shall not be responsible for payment of any and all costs,
expenses, charges etc in connection with the import by contractor of raw
materials,
components,
equipment
etc
for
employment
in
manufacture/assembly/sale of equipment and spares to be supplied under
this contract as such items would form part of the cost of
manufacture/assembly/sale to contractor.
4.03.02
In respect of equipment involving assembly at sugar mills site subject of
permission for sub-contracting being granted by sugar mill, contractor shall
arrange wherever possible, dispatch of equipment/part thereof, components,
bought outs etc direct from the sub-contractors/other manufacturers
premises and treat such sales as:

a) Sales by transfer of documents of title while goods are in transit under

Section 6(2)(b) of the central sales tax act, 1956 if the movement to
site is from another State;
b) Second Sales if the movement is within the State of Tamil Nadu and if
the items also are not eligible Levies in respect of such sales.
4.03.03
Sugar mill shall provide C Form where necessary/applicable.
4.03.04
If it is ultimately found that excise duty, sales tax and other similar statutory
levies on equipments and spares supplied under this contract are not eligible
for such incidence, either fully or partly, the amount of such excise duty, sales
tax and other similar statutory levies actually paid by sugar mill shall be
refunded by contractor promptly to sugar mill without even waiting for a
demand by sugar mill for refund of such amount.
4.04
Contract Prices to Remain Firm and Fixed: Contract price of equipment
and spares, contract price for complete erection, start-up and commissioning
of equipment are and shall remain firm and fixed during the currency of this
contract. They shall not be subject to any variation as a result of changes in
cost of materials, labour etc or for any reason whatsoever during the currency
of this contract, except as a result of modification requested/caused by sugar
mill. Any modification that may have to be carried out by contractor for
demonstration and fulfillment of the performance guarantees shall be solely to
contractors account.
5.

Terms of Payment:

5.1
For supply of equipment and spare parts:
5.01.01
All payments in connection with the contract will be made by the Special
Officer of the Sugar mill as follows:
a) Advance of 10% on the basic price is payable against production of
irrevocable bank guarantee for equal amount obtained in any of the
Nationalized Bank.
b) Next 70% on basic price along with excise duty, taxes, transport charges
etc. is payable as per the agreement for purchase order with in 15
working days from the date of receipt of materials. The 10% paid as an
advance will be adjusted.
c) 20% against erection of Plant and Machinery and after successful trials
certified by the purchaser.
d) 10% after successful commissioning and performance trial for Decanter
against the production of irrevocable Bank Guarantee from any
Nationalised Bank equivalent to 10% value valid for 24 months from the
date of successful performance trial.

5.2

Sugar mills Right to Withhold Payment:

Sugar mill shall have the right to withhold or nullify the whole or a part of any
application of contractor for payment or any approval for payment to such
extent as may be necessary to protect sugar mill from sustaining any loss on
account of:
Short supply not made good by contractor
Defective supply not rectified /made good by contractor
Defective work not remedied/replaced by contractor
Failure of contractor to fulfill and discharge promptly all his monetary
obligations to his sub-contractors either for material and/or for labour
and/or other account.
Unauthorized deviations by contractor from the specifications, terms
and conditions of supply/service.
Erroneous statements or invoices of contactor for the value of supply
made/work done.
Non-payment by contractor of any of his dues to sugar mill on any
account whatsoever.
and release the amount withheld only after satisfactory fulfillment by
contractor.

5.3

No Interest for Delayed Payments for supply of equipment and spare

parts/services rendered: No claim for interest will be entertained by sugar
mill in respect of any moneys or balance which may be in sugar mills hand
owing to any dispute or difference or misunderstanding between sugar mill
and contractor or due to reasons beyond the reasonable control of sugar mill
will however make its best efforts to effect payments as per agreed terms and
conditions.

5.4

Taxes in respect of Payments for Services:

All payments are subject to deduction of taxes, surcharge, educational cess
etc. if any applicable at source as per the provisions of various acts. For
deduction of taxes etc at source wherever applicable, from payments made to
contractors, sugar mill shall provide contractor necessary tax deduction
certificates.

Returns of Bank Guarantees:

The Bank Guarantee for Advance payment shall be returned by the Sugar
mill direct to contractor not later than thirty (30) days after completion of all
obligations of contractor under the said guarantee and upon a request in
writing by contractor.
The Bank Guarantee for Performance of Contract and Warranty shall be
returned by the Sugar mill direct to contractor not later than thirty (30) days
following the date of completion of contractors obligation and upon a request
in writing by contractor.
5.5
Bank Guarantee:
5.05.01
The Bank Guarantee or guarantees required to be furnished by the contractor
to secure the performance of the equipments supplied by the contractor or for
any other purpose under the contract shall be on the form of set out by the
purchaser and shall invariably include the following provisions.
a) The decision of The Salem co-operative sugar mill for ascertaining the
loss or damage or default and/ or negligence on the part of the
contractor shall be final and binding on the guarantor.
b) The right of the sugar mills shall not be affected or suspended by
reason of the fact that any dispute or disputes have been raised by the
contractor with regard to their liability or merely because the
proceedings are pending before any Tribunal, Arbitrators or Court with
regard thereto or in connection therewith.
c) The guarantor shall pay to the sugar mills at the instance of the
invoking the guarantee for enforcing the legal remedy that may be
available to them.
d) It shall not be open to the guarantor to know the reasons of or
investigate or to going to the merits of the demand or to question or to
challenge the demand or to know any fact affecting the demand or to
require proof of the liability of the contractor before parting the amount
demanded by the sugar mills under the guarantees.
5.05.02
The Bank guarantee or guarantees required to be furnished by the contractor
under the contract to secure the timely delivery or performance or warrantee
of the equipments supplied by the contractor or for any other purposes under
the contract shall be such period as may cover the period of complete supply,
performance and warrantee respectively as the case may be and as
stipulated in the contract.

6.

LIQUIDATED DAMAGES

6.01

Liquidated Damages for Delay in the supply of Equipments and spare

parts/ completion of Services.
Should there be delay either in the delivery of equipment/part thereof or spare
parts and/ or in rendition of services as may be undertaken by contractor and
included in the contract, contractor shall pay as liquidated damages, and not
as penalty, 1/2% (one half of one percent) of the total contact price of
equipment and spare parts for each week of delay or part
thereof subject to a maximum of 5% (five percent) of such total contract price.
For purpose of computing liquidated damages in the event of delay in delivery
of equipment and spare parts, mere dispatch of equipment and spare parts
within the agreed date of delivery which are not in accordance with the
specification/standards found acceptable by sugar mill would not amount to
delivery within the agreed delivery date.
Equipment and spare parts shall also be deemed to have been delivered
within the agreed delivery date only when all its component parts also are
delivered. If certain components of equipment are not delivered in time,
equipment shall be deemed to have not been delivered until such time the
undelivered parts are delivered.
Should sugar mill be exposed to additional cost arising out of any increase in
the incidence of excise duty, sales tax and other similar levies on the
equipment/part thereof delivered beyond the agreed delivery date, such
additional cost will be to the account of contractor at actuals. This shall be in
addition to the liquidated damages specifies in Para I of this clause.
Notwithstanding anything stated in the foregoing paragraphs of this clause,
should contractor succeed in the commissioning to the satisfaction of sugar
mill of any and all items of equipment covered by the contract with in the time
limit that would be specified in the contract. Sugar mill may, at its sole
discretion, considered condonation of the delay either in the delivery of
equipment or in the rendition of each of the other various services covered
by the contract and also waiver either in full or in part levy and collection of
liquidated damages which would have otherwise been payable by contractor.
This waiver, either in full or in part, shall not however be applicable in respect
of the costs arising on account of the increase in the incidence of excise duty,
sales tax/VAT and other similar levies at actuals as provided in Para 4 of this
Clause.

6.2

Liquidated Damages for Failure to Achieve Guaranteed Performances

In case Contractor is unsuccessful in demonstrating the performance of any
all items of Equipment covered by the contract and process parameters within
one crushing season from the date of completion of commissioning of
equipment, then contractor shall pay sugar mill as liquidated damages and
not as penalty such amount as may be given below. In any case, the total of

all the liquidated damages for failure of the percentage guarantees will not
exceed 5% (Five percent) of the total contract price.

For every increase in 0.2% Pol of Filter Cake above 2.0%, 0.5% of
contract value will be levied subject to a maximum of 2.5%.

For every 3% reduction in solid removal 0.5% of contract value will be

levied subject to a maximum of 2.5%.

6.3

Non-Payment of Liquidated Damages

In the event pf non-payment, by contractor, of the liquidated damages and the
costs referred to above, sugar mill shall, without prejudice to any other mode
of recovery, deduct the total amount of the dues from any money owing to
contractor. In the event no amount is due to contactor, the Performance Bank
Guarantee will be invoked to recover the amount without prejudice.

7.

REPRESENTATIONS, WARRANTIES AND REPLACEMENTS.

7.01

Warranty Period: The warranty period shall be twenty four (24) months from
the date of commissioning of equipments.

7.2
Contract represents and warrants to Sugar mill
7.02.01
The design of all items of equipment will be modern, approved and of the
latest type as developed by recent experience and that each item of
equipment shall be capable, under normal use, operation and maintenance of
accomplishing the purposes for which it is supplied.
7.02.02
Each item of equipment shall comply with the relevant drawings and other
description furnished thereof by sugar mill or contactor as the case may
be. Equipment and spares supplied under this contract shall be new
and unused.
7.02.03
Materials, workmanship, fabrication and construction of equipment shall be of
high quality and shall conform to the latest relevant standards and
engineering practice.
7.02.04
Equipment when erected and assembled at site will constitute a complete,
efficient, functioning unit capable of practical operation on a commercial scale
at the rate and capacity set forth in the specifications hereof.
7.02.05
Equipment including any extras, will in all respects comply with the
specifications hereof and the specifications for any such extras and the
representations and warranties set forth herein.

7.02.06
Contractor at the time of delivery to sugar mill of Equipment and spares will
own the same free and clear of all liens and encumbrances.
7.03
During the aforesaid warranty period, contractor shall at his own expense,
upon written demand by sugar mill, promptly repair or replace free of cost to
sugar mill at site any item of Equipment/part thereof and spares.
a) Which may not comply with the specifications hereof and the
representations and warranties set forth herein; or
b) Which may be defective or incorrect design; or
c) Which under normal and proper use and maintenance proves defective
in workmanship or materials.
7.04

If contractor fails to repair or replace any defective items of Equipment/part

thereof and spares promptly sugar mill may repair or replace the same at the
contractors risk and expense without prejudice to any other rights which
sugar mill may have against contractor. Prior to taking such remedial action,
Sugar mill will give fifteen days notice to contractor to review the situation and
advise steps to be taken. Failure to reply or take steps to repair or replace the
defective item within fifteen days after the receipt of notice by contractor shall
constitute authority for sugar mill to proceed with the repairs or replacements
of contractors risk and expense.

7.05

Where replacements for defective parts which are to be repaired or replaced

under this warranty are available in sugar mills own spares store. Sugar mill
shall make such parts available as replacements and contractors shall provide
repaired or new parts in replacement thereof or pay for the cost within the
specified time limit acceptable to sugar mill.

7.06

All repairs and replacements carried out by Contractor to rectify defects shall
be made to the satisfaction of sugar mill.

7.07

Any and all repaired/replaced items Equipment/part thereof and spares and
any portion of the work which might have been affected by such defect shall
be covered by this warranty on the same conditions that apply
to original Equipment and spares for a period of twelve months from the date
of ouch repair/replacement.

7.08

In case contractor is also required to undertake erection, start-up and

commissioning of Equipment, then if any portion of the work of erection, startup and commissioning of Equipment proves to be defective, within the
aforesaid warranty period, of all items Equipment to be supplied under this
contract due to any fault in erection, start-up and commissioning, contract, if
promptly notified defects in such erection, start-up and commissioning and
complete to the satisfaction of sugar mill.
a) The commissioning of all items of equipments; and
b) Performance guarantee tests of all items of equipment.

7.9

Subject to the limitation specified in Clause 14 hereof,

Contractors liability for warranty under this Clause is in addition to and
independent of any other liability undertaken by contractor to sugar mill under
any other provisions of this contract.

7.10 Responsibility for Performance of Contract

7.10.01
Contract is entirely responsible for due performance of this contract in all
respects according to the intent and meaning of the drawings, specifications
and all other documents referred to in this contract. Any approval which sugar
mill/sugar mills authorized representative may have given in respect of stores
or materials or other particulars or work or the workmanship involved in the
execution of this contract (with or without test carried out by contract or sugar
mill) shall not bind sugar mill and not withstanding any approval or acceptance
given by sugar mill/consultant/mills authorized representative, it shall be
lawful for sugar mill to reject any item of equipment and spares on arrival at
site or any work of erection supervision/erection if it is found that the item
supplied or erection supervision/erection work carried out by contractor is not
in conformity with the terms and conditions of this contract in all respects.
7.10.02
Contractor shall procure and/or fabricate all equipment and shall undertake
erection as provided in this contract in accordance with all requirements of
Central and State Enactments, rules and regulations governing such work and
codes and standards specified in this contract and normal considerations of
quality and good workmanship.
8.

ASSIGNMENT/SUB-CONTRACTING

8.01

Contractor shall not assign or sub-let this Contract or any part thereof without
the prior written consent of Sugar Mill. This consent shall not, however be
denied unreasonably.

8.02

Any sub-contracting by Contractor shall not relieve him of his

responsibility for performance of his obligations under this contract.

9.

ACCESS TO CONTRACTORS DOCUMENTS

9.01

Contractor when required by sugar mill shall produce all necessary

documents to prove that the Equipment/Part thereof supplied by him are in
conformity with the specification laid down in the Contract.

10.

CONFIDENTIALITY

10.01 All process details, engineering data, drawings, documents, correspondence,

decisions and orders concerning the Contract shall be treated as confidential
and/or restricted in nature by both parties and they shall not divulge or allow
access to them by any unauthorized person.

11.

TEMPORARY SUSPENSION AND CANCELLATION OF CONTRACT.

11.01 Temporary Suspension: Sugar mills may at any time temporarily suspend
or stop the execution of the contract or any part thereof by notice in writing to
contactor.
All works so suspended or stopped shall be resumed by
Contractor based on a schedule to the mutually agreed upon between sugar
mill and contractor.
11.01.02
Sugar mill will not pay contractor for any work which is performed during such
an interval of suspension/stoppage and sugar mill shall not be liable to
contactor for any damage or loss caused by suspension/stoppage of work.
11.2 Cancellation of Contract
11.02.01
Sugar mill may, at its option and without prejudice to its rights under the
contract, cancel the contract either in full or in part at any time by simple
written notice to contractor in case of contractors non-compliance with the
various obligations/responsibilities undertaken by him under the contract and
more particularly in case of any of the following circumstances.
If contractor shall become bankrupt or insolvent; or assign or sublet the
contract or any part thereof, or abandon the contract ; or without reasonable
cause fail to commence execution of the contract within the stipulated period
or suspend the progress of the execution of the contract after receiving from
sugar mill written notice to proceed; or fail to proceed with the execution of the
contract with due diligence according to the agreed time schedule; or if during
the work, it appears that the design, specifications, recommendations or
supplies provided by contractor do not conform to good engineering or
fabrication/manufacturing practices; or fail to employ competent staff and
labour; or disregarded the instructions of sugar mill in relation to the execution
of the contract; or fail to execute the contract in accordance with the agreed
terms or neglect to carry out his obligations and responsibilities under the
contract.
11.02.02
In case of cancellation of the unexecuted portion of the contract in part,
contractor shall continue performance of the contract to the extent not
cancelled by sugar mill. In case of cancellation of the unexecuted portion of
the contract in full, the contractor shall immediately stop all work in the
contract. Sugar mill shall be at liberty to obtain the balance of the
Equipment/part thereof without prejudice from any other agency and also
carry out the residual portion of the services with its own personnel and/or
through any other agency even if it be in excess of the original contract price,
at the risk and cost of contractor.
11.02.03
In addition to the rights provided under this Clause, Sugar mill may exercise
any other rights or remedies provided by Law or under the contract for any
breach or default of contractor.

12.

WAIVER

12.01
Failure on any occasion of either party to insist upon strict adherence to any
of the provisions of the contract or to enforce any of his rights under the
contract or to report to or enforce any of his rights under the Laws shall not be
constructed to be waiver of such provisions or right in any manner. A waiver
by either party shall not be effective unless given in writing. An effective
waiver shall not extend to or affect any provision or right not expressly waived
nor shall an effective waiver on one occasion operate as a waiver of any
provision or right in the event of the occurrence
on a future occasion of the same cause which gave rise to such effective
waiver.
13.
AMOUNTS DUE FROM CONTRACTOR
13.01
Any and all costs, charges, damages or expenses which sugar mill may have
paid for which contractor is liable under the contract shall be recovered/
adjusted by sugar mill from any money due or becoming due by sugar mill to
contractor under the contract or from any other contract which sugar mill may
have entered into with contractor.
13.02
In the event of recovery/ adjustment to the extent necessary becoming
impossible owing to insufficient of the amount realizable by sugar mill on
enforcement of the Bank Guarantee for Performance of Contract and the
amounts already withheld, the balance amount dueby contractor shall be
recovered by action of Law or in any other manner Sugar mill may deem fit.
14.
LIMITAION OF DAMAGES
14.01 Total of all damages calculated in accordance with and payable under Clause
6 (excluding of course the costs arising on account of the increase in the
incidence of excise duty, sales tax and other similar levies at actuals referred
to in Clause 6.01) of the contract as a result of any failure by Contractor
and/or his sub-contractor(s) to fulfill by contractual liabilities in the manner and
within the time that would be specified in the contract shall not exceed 10(ten)
percent of the total contract price and payment of
such damages shall be in full and final settlement of contractors liability for
the aforesaid failure.
15.
LIABILITY FOR ACCIDENTS AND DAMAGE
15.01
Contactor shall indemnify sugar mill against any loss, damage, any injury to
any person or to any property and against any other liability or obligation and
against all the actions, suits, claims, de mands, changes and expenses
arising in connection with such damage, injury, liability or obligation resulting
from:

a) The negligence of contractor and its employee, agents and subcontractors; and/or
b) The lack of inadequacy of safety devices of Equipments supplied under
this contract; and
c) Non-compliance of safety regulations.
15.02
In the event of any claim being made against sugar mill by reason of any
matter and in respect of which contractor is liable under that Clause, sugar
mill shall promptly notify contractor, who may at his own expenses conduct all
negotiations for the settlement of the same and any litigation that may arise
thereform, sugar mill shall at the request of contractor, extent all available
assistance for the above purpose and shall be reimbursed by contractor with
all reasonable expenses incurred by sugar mill in this behalf. Sugar mill,
however, will not make any admission which might be prejudicial to the
interests of contractor.
16.
FORCE MAJEURE
16.01
Should force majeure circumstances intervene after the issue of letter of
intent/ purchase order and impede, prevent or delay the execution thereof,
then the proper time for performance under the Contract of any obligation of
the parties shall be automatically extended by the actual delay in performance
of such obligation caused by such circumstances.
16.02
For purpose of this Clause Force Majeure means an event beyond the
control of contractor and not involving contractors fault or negligence and not
foreseeable. Such events may include, but are not restricted to act of wars or
revolutions, fires, floods, epidemics, quarantine restrictions and freight
embargoes. However the reasons of strikes and lockouts will not be covered
under this clause.
16.03
The party wishing to claim relief by reason of such circumstances shall notify
the other party in writing without delay and in any case within fifteen days at
the intervention and within fifteen days of the cessation of such
circumstances.
16.04
Both parties should make every reasonable effort to minimize as far as
possible the effects of such circumstances upon the contract, including
consideration of the use of the manufacturing facilities of Contractors
associate companies, if any and of the opportunities which will be available for
changing contractors of sub-contracted equipment/part thereof.

17.
ARBITRATION
17.01
If at any time, any question, dispute or difference whatsoever shall arise
between sugar mill and contractor arising out of or in connection with the
contract, the parties thereto shall use their best efforts, to settle such
question, dispute or difference amicably by mutual negotiations.
17.02
Should such agreement not be reached, either party may forthwith give to the
other notice in writing of the existence of such question, dispute or difference
and the same shall be referred to arbitration by two arbitrators, one of whom
will be nominated by contractor and the other by sugar mill. The said two
arbitrators will, before entering upon arbitration, appoint an umpire, to decide
on questions of disputed or differences on which the arbitrators may differ.
Award by the Arbitrators/umpire shall be final and binding on both the parties.
17.03
Having regard to the nature of the dispute and attendant circumstances, the
arbitrators/umpires shall decide the place or place where proceedings shall be
held and the parties shall comply with such decisions.
17.04
Arbitration shall be in accordance with the provisions of Indian Arbitration Act,
1940.
18.
LANGUAGE/COMMUNICATION
18.01
All written correspondence between sugar mill and contractor shall be in
English language. Specifications, texts on drawings and the text of any other
engineering information shall also be in English language.
18.02
All correspondence shall be sent in triplicate by speed post or other quicker
means o f transmission.
18.03
All telefax, telex and telegrams shall be confirmed by letters.

19.

GOVERNING LAW

19.01
The Contract shall be governed and construed in accordance with Indian
Laws and Regulations and all matters arising out of the Contract will the
Jurisdiction of Courts at Chennai.
20.

CONTRACT BINDING ON SUCCESSORS

20.01
Unless repugnant to the context or meaning hereof the Contract shall be
binding upon the successors and permitted assigns of the parties to the
Contract.
************

THE SALEM CO-OPERATIVE SUGAR MILLS LTD., MOHANUR.

MUD REMOVAL SYSTEM (DECANTER)
SPECIFICATION:
Process Brief:
1) Capacity

2500TCD + Extra 20%

2) Mud Juice % Cane

15 %

3) Muddy juice flow rate

15 20 M3 / Hr.

4) pH

6.9 0.1

5) Temperature

97 2o C

1.) Equipments:
S.No
1

2
3

5
6

Item
Decanter (Drive with
planetary Gearbox)
Muddy juice receiving tank
with agitator/ gearbox and
motor
Mud 1st stage receiving
tank with agitator/ gearbox
and motor
Mud feed pump with
standby with VFD
Flocculant preparation
tank with agitator /
gearbox and motor
Flocculant holding tank

Qty.

Specification

20 M3/hour

Not less than 10 M3

Not less than 10 M3

Cap: 30 M3/hour
Head:30 M
Motor HP as per pump
Type: Screw, S.S rotor

Not less than 10 M3

Not less than 10 M3

Motor: 1HP, RPM-1440,
Capacity :1800 LPH
Type : Screw, S.S rotor

Flocculant dosing pump

with motor with standby

Strainers for flocculant

dosing pump

S.S

2.) Instrumentation:
S.No Item

Qty.

Magnetic flow meter with

transmitter (for muddy juice)

Magnetic flow meter with

transmitter (for water)

3
4

Magnetic flow meter with

Indicator and totaliser (for
Centrate 1 & 2)
CONTROL VALVE for
muddy juice flow control

2
2

VFD for flocculant dosing

control (stage I & II )

Control valve with

Positioner (for Water)

I/P Converter

Resistance Temperature
Detector (RTD)

Level Transmitter

10

PLC with Analog & Digital

cards & Display-Suitable for
hook up with DCS

11

Digital Indicator

12

Rotometer for flocculant

13

Control Consol

14

Temperature. Pressure
gauges

15

Instrument cable/fittings etc

Specification
Make: ABB/ Donfoss/ Forbes
Marshall, Range :0-25m3/hr,
Suitable Size
Make :ABB/ Donfoss/ Forbes
Marshall, Range :0-10m3/hr,
Suitable Size
Make :ABB/ Donfoss/ Forbes
Marshall, Suitable Size
Make :Crane, Butterfly valve,
Suitable Size
Make: ABB/ Donfoss,
3 I/P, 3 O /P,
HP-as per pump
Make: Crane
Butterfly valve
Suitable Size
Make : ABB / Forbes
Marshall/ Donfoss
Make : Donfoss/Forbes
Marshall
Make : Emerson/ABB
/Siemens
Make: Schneider/ABB
Make : Alpha
Engineering/Masibus
Make : Alpha Engineering
/ABB/ Donfoss
With facility of Muddy juice
flow control Flocculant Dosing
Control (Stage I & II)

As
requ
-ired
As As required. 2 core shielded
requ cable with copper tube,
ired fittings etc.

3).Scope of the Supplier:

a. Supply, Erection, Testing and Commissioning.
b. Inter connecting pipes (MS)/Valves (CI/SS), fitting (MS) etc., for the above
equipments.
c. Technical Services :
Process design specifications & dimensioned layout drawings
for decanter operating & maintenance manual for Decanter
System.
Structural foundation details.
Layout and load details.
Pumps & foundation detail
Detailed process description and process parameters
Process flow sheet
P & I Diagrams
Instrumentation loop detail.
Training of mill personnel
d.

Electrical:
All electricals, MCC, cabling for the above equipments.

e.

Local Measuring Instrument:

Field mounted, local measuring instruments for various parameters like

flow, temperature, pressure etc. for the complete system shall be provided.
All instruments as required for complete automation of the system should be
covered.
f.

Rubber Belt Conveyor:

An endless rubber belt conveyor with drive, to transfer re-rejected cake

upto delivery point for discharging.

g. Terminal Points/Battery limits :

1. Mud

:Mud line from Dorr to Muddy juice

recovery tank inlet flange.
:Centrate pump delivery flange to mill
house
:Washout line to trench near to
respective equipment/tanks
:Incomers of centralized control panel

2. Second Centrate
3. Drain
4. LT Power
5. Cold Water
6. Hot Water
7. Air line
8. Mud from decanter

:At one point nearer to decanter in the

boiling house.
: At one point nearer to decanter in the
boiling house.
: At one point nearer to decanter in the
boiling house.
: To discharge belt-10 mtrs. outside the
Building

h.

Loading/Unloading shifting of equipments.

i.

Any other items related to the decanter erection not mentioned

above.

4. Supply and erection of all Structures, Staging, Roofing with AC sheet coverage
and lighting, platforms, ladders, lagging, etc. as required for the erection and
installation of all the plant and machinery.
5. Performance guarantee:
Capacity

Solid Removal
Mud Pol

:
:

To handle Treated Cane Juice of 2500 to 3000

TCD plant
>90%
<2.0

6. Civil foundation works are excluded from the scope of supplier. However
drawings for foundation related to equipments, pumps, etc. with load details to be
given to mills.

Special Officer