EPC Agreement

983 Pages·2017·37.4 MB·English

EPC Agreement

IN RELATION TO: REDEVELOPMENT OF GANDHINAGAR
RAILWAY STATION ALONG WITH THE DEVELOPMENT OF
300 ROOMS HOTEL BUILDING AT THE AIRSPACE ABOVE
STATION AT GANDHINAGAR, GUJARAT

Signed on ________________
Agreement No.: ________________________________________

BETWEEN

GANDHINAGAR RAILWAY & URBAN DEVELOPMENT CORPORATION
LIMITED

&

M/s. KUNAL STRUCTURE (INDIA) PVT. LTD.
Gandhinagar Railway & Urban Development Corporation Limited EPC Agreement

ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT

THIS AGREEMENT is entered into on this the ………………... day of ……. 20………. at Gandhinagar,
Gujarat, India.

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Gandhinagar Railway & Urban Development Corporation Limited EPC Agreement

BETWEEN

Gandhinagar Railway & Urban Development Corporation Limited, represented by its
__________________________________________________________________ and having its Registered Office at
Block no. 18, 8th floor, Udyog Bhawan, Sector 11, Gandhinagar, Gujarat, India
382017, Gandhinagar, Gujarat (hereinafter referred to as the “Authority” which
expression shall, unless repugnant to the context or meaning thereof, include its successors
and assigns) of the One Part;

AND

M/s. Kunal Structure (India) Pvt. Ltd. , means the selected bidder having its registered
office at Kunal House, Ganga Park, Plot No. 10, Opp. Sanskruti Apartment, Panchvati
Main Road, Rajkot-360001, Gujarat (hereinafter referred to as the “Contractor” or
“Developer”; either of which expression shall, unless repugnant to the context or meaning
thereof, include its successors and permitted assigns) of the Other Part.

WHEREAS:

A. The Authority intends to Redevelop the Gandhinagar Railway Station along with a Hotel in
the airspace above it comprising of 300 Rooms, on Engineering, Procurement, Construction
("EPC") basis, at the site on the Railway Station at Gandhinagar, Gujarat, India (“Project”).

B. After evaluation of the bids received, the Authority has accepted the bid of the selected
bidder and issued its Letter of Acceptance No. IRSDC/Gandhinagar/Tender/EPC/CT-
22/2016/3464 dated 03.01.2017 (hereinafter called the “LOA”) to the selected bidder for
construction of the Project, requiring the selected bidder to inter alia:

i. deliver to the Authority a legal opinion from the legal counsel of the selected bidder
with respect to the authority of the selected bidder to enter into this Agreement and
the enforceability of the provisions thereof, within 7 (seven) days of the date of
issue of LOA; and
ii. execute this Agreement within 30 (Thirty) days of the date of issue of LOA.

C. The Contractor has fulfilled the requirements specified in Recital (B) above.

NOW THEREFORE in consideration of the foregoing and the respective covenants and agreements
set forth in this Agreement, the sufficiency and adequacy of which is hereby acknowledged, the
Authority hereby covenants to pay the Contractor, in consideration of the obligations specified
herein, the Contract Price or such other sum as may become payable under the provisions of the
Agreement at the times and in the manner specified by the Agreement and intending to be legally
bound hereby, the Parties agree as follows:

The following documents attached hereto shall be deemed to form an integral part of this Contract:
:
a) The Agreement;
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Gandhinagar Railway & Urban Development Corporation Limited EPC Agreement

b) Letter of Award
c) Bid
d) Corrigendum(a) to the Agreement;
e) Addendum(a), if any, to RFP;
f) Reply to Pre-Bid Queries, if any;
g) Legal Opinion submitted by Contractor;

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Contents

1. ARTICLE 1: DEFINITIONS AND INTERPRETATION ...................................................................................... 12
1.1 Definitions ............................................................................................................................................................. 12
1.2 Interpretation ...................................................................................................................................................... 12
1.3 Measurements and arithmetic conventions ............................................................................................ 15
1.4 Priority of agreements and errors/discrepancies ................................................................................ 15
2. ARTICLE 2: SCOPE OF THE PROJECT .................................................................................................................. 17
2.1 Scope of the Project ........................................................................................................................................... 17
3. ARTICLE 3: OBLIGATIONS OF THE CONTRACTOR ........................................................................................ 18
3.1 Obligations of the Contractor ........................................................................................................................ 18
3.2 Obligations relating to sub-contracts and any other agreements .................................................. 19
3.3 Employment of foreign nationals ................................................................................................................ 20
3.4 Contractor’s personnel .................................................................................................................................... 20
3.5 Advertisement on Project ............................................................................................................................... 21
3.6 Contractor's care of the Works ..................................................................................................................... 21
3.7 Electricity, water and other services .......................................................................................................... 21
3.8 Unforeseeable difficulties ............................................................................................................................... 21
3.9 Training of Authority’s personnel ............................................................................................................... 22
3.10 Safety at work site .............................................................................................................................................. 22
3.11 Environmental Clearances ............................................................................................................................. 22
3.12 Operation of existing Station ......................................................................................................................... 22
4. ARTICLE 4: OBLIGATIONS OF THE AUTHORITY ............................................................................................ 23
4.1 Obligations of the Authority .......................................................................................................................... 23
4.2 Maintenance and operation of the existing facilities ........................................................................... 24
4.3 Environmental Clearances ............................................................................................................................. 24
4.4 Machinery and equipment.............................................................................................................................. 24
4.5 Provision of Power Blocks and Traffic Blocks ........................................................................................ 25
5 ARTICLE 5: REPRESENTATIONS AND WARRANTIES .................................................................................. 26
5.1 Representations and warranties of the Contractor ............................................................................. 26
5.2 Representations and warranties of the Authority ................................................................................ 27
5.3 Disclosure .............................................................................................................................................................. 28
6 ARTICLE 6: DISCLAIMER .......................................................................................................................................... 29
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6.1 Disclaimer.............................................................................................................................................................. 29
7 ARTICLE 7: PERFORMANCE SECURITY.............................................................................................................. 31
7.1 Performance Security ....................................................................................................................................... 31
7.2 Extension of Performance Security ............................................................................................................ 31
7.3 Appropriation of Performance Security ................................................................................................... 32
7.4 Release of Performance Security ................................................................................................................. 32
7.5 Retention Money ................................................................................................................................................ 32
8 ARTICLE 8: RIGHT OF WAY ..................................................................................................................................... 34
8.1 The Site ................................................................................................................................................................... 34
8.2 Procurement of the Site ................................................................................................................................... 34
8.3 Damages for delay in handing over the Site ............................................................................................ 35
8.4 Site to be free from Encumbrances ............................................................................................................. 36
8.5 Protection of Site from encroachments .................................................................................................... 36
8.6 Special/temporary Right of Way ................................................................................................................. 36
8.7 Access to the Authority and the Authority’s Engineer ........................................................................ 37
8.8 Geological and archaeological finds ........................................................................................................... 37
9 ARTICLE 9: UTILITIES AND TREES ...................................................................................................................... 38
9.1 Existing utilities and roads ............................................................................................................................. 38
9.2 Shifting of obstructing utilities ..................................................................................................................... 38
9.3 New utilities.......................................................................................................................................................... 38
9.4 Felling of trees ..................................................................................................................................................... 39
10 ARTICLE 10: DESIGN AND CONSTRUCTION OF THE PROJECT ........................................................... 40
10.1 Obligations prior to commencement of Works ..................................................................................... 40
10.2 Design and Drawings ........................................................................................................................................ 42
10.3 Construction of the Project ............................................................................................................................ 44
10.4 Intentionally Deleted ........................................................................................................................................ 45
10.5 Extension of time for completion ................................................................................................................ 45
10.6 Incomplete Works .............................................................................................................................................. 47
10.7 Equipment specific Maintenance Manual ................................................................................................ 47
11 ARTICLE 11: QUALITY ASSURANCE, MONITORING AND SUPERVISION ........................................ 48
11.1 Quality of Materials and workmanship ..................................................................................................... 48
11.2 Quality control system ..................................................................................................................................... 48
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11.3 Methodology ......................................................................................................................................................... 48
11.4 Inspection and technical audit by the Authority ................................................................................... 49
11.5 External technical audit ................................................................................................................................... 49
11.6 Inspection of construction records ............................................................................................................. 49
11.7 Monthly progress reports ............................................................................................................................... 49
11.8 Inspection .............................................................................................................................................................. 49
11.9 Samples .................................................................................................................................................................. 50
11.10 Tests .................................................................................................................................................................... 50
11.11 Examination of work before covering up ............................................................................................ 50
11.12 Rejection ........................................................................................................................................................... 51
11.13 Remedial work ................................................................................................................................................ 51
11.14 Delays during construction ....................................................................................................................... 52
11.15 Quality control records and Documents .............................................................................................. 52
11.16 Video recording .............................................................................................................................................. 52
11.17 Suspension of unsafe Construction Works ......................................................................................... 52
12 ARTICLE 12: COMPLETION CERTIFICATE ................................................................................................... 54
12.1 Tests on completion .......................................................................................................................................... 54
12.2 Provisional Certificate ...................................................................................................................................... 54
12.3 Completion of remaining Works .................................................................................................................. 55
12.4 Completion Certificate ..................................................................................................................................... 55
12.5 Rescheduling of Tests ....................................................................................................................................... 56
13 ARTICLE 13: CHANGE OF SCOPE...................................................................................................................... 57
13.1 Change of Scope .................................................................................................................................................. 57
13.2 Procedure for Change of Scope ..................................................................................................................... 57
13.3 Payment for Change of Scope ........................................................................................................................ 59
13.4 Restrictions on Change of Scope .................................................................................................................. 59
13.5 Power of the Authority to undertake works ........................................................................................... 59
14 ARTICLE 14: Intentionally Left Blank ............................................................................................................. 61
15 ARTICLE 15: Intentionally left blank .............................................................................................................. 62
16 ARTICLE 16: TRAFFIC REGULATION.............................................................................................................. 63
16.1 Traffic regulation by the Contractor .......................................................................................................... 63
17 ARTICLE 17: DEFECTS LIABILITY ................................................................................................................... 64
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17.1 Defects Liability Period .................................................................................................................................... 64
17.2 Remedying Defects ............................................................................................................................................ 64
17.3 Cost of remedying Defects .............................................................................................................................. 64
17.4 Contractor’s failure to rectify Defects ........................................................................................................ 64
17.5 Contractor to search cause ............................................................................................................................. 65
17.6 Extension of Defects Liability Period ......................................................................................................... 65
18 ARTICLE 18: AUTHORITY’S ENGINEER ......................................................................................................... 66
18.1 Appointment of the Authority’s Engineer ................................................................................................ 66
18.2 Duties and authority of the Authority’s Engineer ................................................................................. 66
18.3 Delegation by the Authority’s Engineer .................................................................................................... 67
18.4 Instructions of the Authority’s Engineer .................................................................................................. 67
18.5 Determination by the Authority’s Engineer ............................................................................................ 67
18.6 Remuneration of the Authority’s Engineer ............................................................................................. 68
18.7 Termination of the Authority’s Engineer ................................................................................................. 68
18.8 Interim Arrangement ....................................................................................................................................... 68
19 ARTICLE 19: PAYMENTS ..................................................................................................................................... 70
19.1 Contract Price ...................................................................................................................................................... 70
19.2 Intentionally Left Blank ................................................................................................................................... 70
19.3 Procedure for estimating the payment for the Works ........................................................................ 70
19.4 Stage Payment Statement for Works ......................................................................................................... 71
19.5 Stage Payment for Works ............................................................................................................................... 71
19.6 Intentionally Left Blank ................................................................................................................................... 72
19.7 Intentionally Left Blank ................................................................................................................................... 72
19.8 Payment of Damages......................................................................................................................................... 72
19.9 Time of payment and interest ....................................................................................................................... 72
19.10 Intentionally Left Blank .............................................................................................................................. 73
19.11 Intentionally Left Blank .............................................................................................................................. 73
19.12 Intentionally Left Blank .............................................................................................................................. 73
19.13 Final Payment Statement ........................................................................................................................... 73
19.14 Discharge .......................................................................................................................................................... 74
19.15 Final Payment Certificate ........................................................................................................................... 74
19.16 Intentionally Left blank ............................................................................................................................... 74
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19.17 Change in law .................................................................................................................................................. 74
19.18 Correction of Interim Payment Certificates ....................................................................................... 75
19.19 Authority’s claims ......................................................................................................................................... 75
19.20 Bonus for early completion ....................................................................................................................... 75
20 ARTICLE 20: INSURANCE .................................................................................................................................... 76
20.1 Insurance for Works ......................................................................................................................................... 76
20.2 Notice to the Authority .................................................................................................................................... 77
20.3 Evidence of Insurance Cover ......................................................................................................................... 77
20.4 Remedy for failure to insure .......................................................................................................................... 78
20.5 Waiver of subrogation ...................................................................................................................................... 78
20.6 Contractor’s waiver ........................................................................................................................................... 78
20.7 Cross liabilities .................................................................................................................................................... 78
20.8 Accident or injury to workmen .................................................................................................................... 79
20.9 Insurance against accident to workmen ................................................................................................... 79
20.10 Application of insurance proceeds ......................................................................................................... 79
20.11 Compliance with policy conditions ........................................................................................................ 79
21 ARTICLE 21: FORCE MAJEURE .......................................................................................................................... 81
21.1 Force Majeure ...................................................................................................................................................... 81
21.2 Non-Political Event ............................................................................................................................................ 81
21.3 Indirect Political Event..................................................................................................................................... 82
21.4 Political Event ...................................................................................................................................................... 82
21.5 Duty to report Force Majeure Event........................................................................................................... 83
21.6 Effect of Force Majeure Event on the Agreement ................................................................................. 83
21.7 Termination Notice for Force Majeure Event ......................................................................................... 84
21.8 Termination Payment for Force Majeure Event .................................................................................... 85
21.9 Dispute resolution ............................................................................................................................................. 85
21.10 Excuse from performance of obligations ............................................................................................. 85
22 ARTICLE 22: SUSPENSION OF CONTRACTOR’S RIGHTS ........................................................................ 87
22.1 Suspension upon Contractor Default ......................................................................................................... 87
22.2 Authority to act on behalf of Contractor ................................................................................................... 87
22.3 Revocation of Suspension ............................................................................................................................... 87
22.4 Termination .......................................................................................................................................................... 87
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23 ARTICLE 23: TERMINATION .............................................................................................................................. 89
23.1 Termination for Contractor Default ........................................................................................................... 89
23.2 Termination for Authority Default .............................................................................................................. 91
23.3 Termination for Authority’s convenience ................................................................................................ 92
23.4 Requirements after Termination ................................................................................................................. 92
23.5 Valuation of Unpaid Works ............................................................................................................................ 92
23.6 Termination Payment....................................................................................................................................... 93
23.7 Other rights and obligations of the Parties .............................................................................................. 94
23.8 Survival of rights ................................................................................................................................................ 94
24 ARTICLE 24: ASSIGNMENT AND CHARGES ................................................................................................. 96
24.1 Restrictions on assignment and charges .................................................................................................. 96
24.2 Hypothecation of Materials or Plant .......................................................................................................... 96
25 ARTICLE 25: LIABILITY AND INDEMNITY ................................................................................................... 97
25.1 General indemnity ............................................................................................................................................. 97
25.2 Indemnity by the Contractor ......................................................................................................................... 97
25.3 Notice and contest of claims .......................................................................................................................... 98
25.4 Defence of claims ................................................................................................................................................ 98
25.5 No consequential claims .................................................................................................................................. 99
25.6 Survival on Termination ................................................................................................................................. 99
26 ARTICLE 26: DISPUTE RESOLUTION ........................................................................................................... 100
26.1 MUTUAL DISCUSSION ................................................................................................................................... 100
26.2 FURTHER PROCEDURES .............................................................................................................................. 100
26.3 Arbitration ......................................................................................................................................................... 100
26.4 CONTINUED PERFORMANCE ..................................................................................................................... 100
27 ARTICLE 27: MISCELLANEOUS ...................................................................................................................... 101
27.1 Governing law and jurisdiction ................................................................................................................. 101
27.2 Waiver of immunity ....................................................................................................................................... 101
27.3 Delayed payments ........................................................................................................................................... 101
27.4 Waiver .................................................................................................................................................................. 102
27.5 Liability for review of Documents and Drawings .............................................................................. 102
27.6 Exclusion of implied warranties etc. ....................................................................................................... 102
27.7 Survival ................................................................................................................................................................ 103
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