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TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION

From To
Er.K.KANNAN,B.E., M/s Aharini Associates
Executive Engineer, No.1, MBT Road, vazhgavalamudan.
O&M/Chengalpattu, Near Sekarajapuram
. Thiruvalam Post 632-515
Lr.No.EE/O&M/CGL/TA/ K2. 001 /17-18 Dt. 17.05 .2017.
Dear Sir,
Sub: TANGEDCO –Chengalpattu-Division- East/Thirukalukundram section – Rectification of
leaned poles/Replacing cut point Jumpers and replacing of worn out materials &
other improvement works as per schedule enclosed herewith- executing the works
through K2 Agreement – contract awarded – reg.
Ref :1. Letter no. AEE / O&M/TKM / CI / F. K2 / Enquiry. No.001/17-18. Dt.
02 .05 .2017.

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Acceptance:
With reference to your offer and other correspondences cited above, I acting for and
on behalf of the order and the direction of the Tamil Nadu Generation & Distribution
Corporation accept your offer for the execution of the Works contract for Rectification of leaned
poles/Replacing cut point Jumpers and replacing of worn out materials & other improvement works as
per schedule in EAST/Thirukalukundram Section Chengalpattu Division/CEDC/ Chengalpattu
subject to the terms and conditions stipulated in the specification and award the work to you for a
period of one year from the acceptance of agreement. The price accepted for this contract is
furnished in the schedule enclosed. Any increase or decrease in the quantities will not affect the
accepted unit rate of payment. The price shall remain same throughout the entire contract period.
1. The allotment of work shall be according to capacity of the contractor and may be varied from
time to time suit the exigencies and over all program of works. The contractor may have to work at
any place within the division’s jurisdiction and any other contractor will also be directed to execute the
work at any place which should not be objected by the contractor.
2. The contractor should enter into an agreement in the prescribed form by using Stamp
paper for an amount of Rs. 80 /- (Rupees Eighty only). The cost towards stamp paper
should be borne by the contractor. After execution of agreement within the time stipulated period, the
work should be taken over by you within 7 days from the date of intimation from this office failing
which the contract awarded to you will be liable to be terminated with levy of penalty. The quantity of
the work may vary based on field requirement in any of the items prescribed in the Schedule of work
within the total contract value.
3. The contractors have no claim for suspension of work for any short supply of materials
break down of machinery or any other cause.
4.Prices and rates quoted should include cost of Labour, Supervision, Machinery and Equipments,
transport charges etc.,
5.The contractor should fulfill strictly all the conditions stipulated in the contract labour regulation and
abolition act 1970) and rules made there under.
6. Service Tax at appropriate rate will be paid extra on labour charges against documentary proof for
having actually paid the service tax.
7. No suit or any proceeding in regard to any matter arising in any respect under this contract shall be
instituted in any court save in the City Civil Court of Chennai or the Court of Small cases in Mettur. It
is agreed that no other Court shall have jurisdiction to entertain any suit or proceedings even though
part of course of action might arise within their jurisdiction. In case any part of course of action rises
within their jurisdiction of any part of the Court in Tamilnadu and not in the Court within Tamil Nadu
and no other court outside Tamilnadu have jurisdiction even though any part of the cause of action
might arise within the jurisdiction of such courts.
8. Right of engineer to order withdrawal of labour: The Engineer shall be at liberty to object to
any representatives or other persons or labourers employed by the contractors, in the executions or
otherwise who shall misconduct himself or incompetent or negligent and the contractor shall remove
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the person so objected to upon on receipt from the Engineer of notice in writing requiring him so to
do, and shall provide in place a competent substitute at the contractor’s expenses.
9. Contractor responsibility:
The contractor shall be responsible for the materials issued for use in the works and the material
that is not used on the authorized work, shall be correctly returned to the TANGEDCO. All
extension works will be supervised by TANGEDCO personnel’s for its correctness and subject to
check measurement by the component authority. The working spot will be intimated time to time
depends on the work availability and as desired by the TANGEDCO Officials. The contractor is at
his liberty to engage any number of persons for execution of Work and the labourer so
engaged will not have any right to make any claim for Employment in TANGEDCO. The
contractor should not issue any certificate to the person engaged there who have worked for
him. An undertaking to this effect should also be executed by the contractor.
All safety measures should be observed at the work spot and necessary insurance should
be arranged only by the contractor. TANGEDCO will not pay any compensation in any
manner towards any unwanted things / accidents arising out during the course of contract.
10.Payment: Necessary bills in Triplicate may be claimed by the TANGEDCO Official after
completion of work at a particular place and after duly check measured and certified by the
concerned AEE , such bills should be countersigned by EE/O&M concerned and sent to
AAO/Bills/CO/Chengalpattu for processing 100% payment. The contractor should be sound enough
in financial position to bear the situation for any unforeseen delays in passing bills and payment. The
payment will be made by Superintending Engineer /TANGEDCO/ Chengalpattu EDC/Chengalpattu by
cheque on any of the Nationalized Banks or its branches in Tamil Nadu. Any bank commission will
have to be borne by the successful tenderer.
11.TANGEDCO reserves the right to alter / relax /waive any of the conditions stipulated
without assigning any reason .
12. The Income tax will be deducted it the rate of 2% on the Value of the work done
with surcharge of 2% as per circular No.613 F.No.275/138/91-II dt.4.11.91 of Govt of India Ministry
of Finance Department of Revenue Central Board of Direct Taxes New Delhi, as per rules in Vogue,
In addition other statutory levies wherever applicable will also be recovered.
13.Liquidated damages: If the contractors fails in the due performance of this contract within the
time fixed by the contract or any extension thereof and the Board shall have suffered any loss
from the delay occasioned by such failure.
The contractors is liable at the discretion of the Engineer, to liquidated damages /
penalty up to ½% of the contract price per completed week reckoned on the contract
value of such portion only of the works as cannot in consequence of the delay be used commercially
and efficiently during each month between the appointed or extended times as the case may be
and the actual time of acceptance or taking over of the work, and such penalty shall be in full
satisfaction of the contractor’s liabilities for delay but shall not in any case exceed 10 % of the
contract value of such portion of the work. In addition to this provision regarding levy of penalty
for slow progress of work and delay for not keeping up the interim and final completion periods
specified for various milestone activities as stipulated in the general condition of contract in Tamil
Nadu building practice for works would apply.
However in respect of contracts where supplies effected in part, of works executed in
part could not be beneficially used by the Board(due to such in complete execution) liquidated
damages shall be worked out on the basis of entire contract price for completed work only and not
on delayed portion .
The contractor is liable to the Board, in addition to liquidated damages for delay, the actual
difference in price wherever Board orders, the delayed quantity to be supplied / executed by other
agencies at a Higher rates.
14.Force majeure : If at any time during the continuance of this contract the performance in
whole or in part in any delegation under this contract shall be prevented of public enemy, acts of Civil
commotion strikes, Lockouts, Sabotages, fire, Floods, Explosions epidemic warranting restrictions of
other acts of GOD ( hereinafter referred to as Eventualities) then notice on the happenings of any
such eventualities shall be given by the tenderer to the board within 15 days from the date of
occurrence thereof neither party shall by reasons of such eventuality claim for damage against the
other in respect of such non-performance and deliveries under this contract shall be refunded as
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practicable after such eventuality has come to end and processed to exist, provided that if the
performance in whole or part by the Tenderer or any obligation under this contract is prevented or
delayed by reasons of any eventuality for a period exceeding 60 days, the Board at its option
terminate this contract by notice in writing.
15 .ACCIDENTS AND INSURANCE: It is incumbent on the part of the contractor to see
that it shall be his sole responsibility to protect the public and his employee against any
accidents from any cause and he shall indemnify the TANGEDCO against any claims there under by
way of accident risk insurance demand for all purpose of relief. Failing the same or otherwise
the contractor alone will be responsible to meet the compensation awarded under the said
ACT. The contractor should not commence the work without taking Insurance policy under the
name of the work for the schedule completion period and any extension there of from the date
of taking over of the site. The contractor should satisfy the Superintending Engineer/ that an accident
Risk Insurance Policy is taken before taking over the work. And also satisfy the field officers that
policy/policies is/are kept in force, till the work is completed and works are taken over by the Board on
the issue of completion certificate.
16.FIRST AID: At the work site there shall be maintained in readily accessible place, first aid
appliance and medicine including and adequate supply of sterilized dressing sterilized cotton wool. The
appliance shall be kept in good order. They shall be placed under the charges of responsible
person who shall be readily, available during working ours.
17. Power to recover dues to TANGEDCO: In case any loss to be compensated by the
contractor to the TANGEDCO, the TANGEDCO shall be entitled to retain or deduct the amount due to
the Board from any money that may be due or may become due to the contractor from any other
contract or any other amount what so ever.
18.Termination of contract for poor quality of works and poor performance: If any
contractor is found (i) not exercising adequate and ensure standard quality of workmanship and (ii)
not carrying out the work as per the required progress, resulting in slow progress of work, he
will be warned in writing. If he does not improve in spite of written warning, the contract will be
terminated.
19. Contractors claim: The contractors have no claim for suspension of work for any short
supply of materials, break down of machinery or any other cause.
20. Contract labour Act: The contractor should fulfill strictly all the conditions stipulated in the
contract labour (regulation and abolition act 1970) and rules made there under.
The receipt of this letter may be acknowledged.

Yours Faithfully,

EXECUTIVE ENGINEER/O&M
CHENGALPATTU

Copy to the Asst.Exe.Engineer/O&M/Thirukalukundram

Copy to the Assistant Engineer/O&M/East/Thirukalukundram