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SCOPE OF WORK AND TECHNICAL SPECIFICATIONS,

TECHNICAL PART OF SPECIAL CONDITIONS OF CONTRACT


& TERMS AND CONDITIONS

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SCOPE OF WORK AND TECHNICAL SPECIFICATION FOR HIRING OF GAS
DEHYDRATION & HC DPD SYSTEMS

1.0 INTRODUCTION:

1.1. NARSAPUR-GCS;
Narsapur GCS is located approximately 85 KMs away from Rajahmundry town located in the
West Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of
Narsapur field are connected to Narsapur GCS. The high-pressure gas generated in Narsapur
GCS will be fed into the inlet of Gas Dehydration unit for dehydration purpose and will be fed into
high-pressure pipeline network of GAIL. ONGC intends to hire dehydration &HC DPD units along
with manpower for dehydration of gas to meet this requirement.

1. MANDAPETA-GCS;
Mandapeta GCS is located approximately 35 KMs away from Rajahmundry town located in the
East Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of
Mandapeta field are connected to Mandapeta GCS. The low-pressure gas generated in
Mandapeta GCS is compressed and will be fed into the inlet of Gas Dehydration unit along with
high-pressure gas for dehydration purpose and will be fed into high-pressure pipeline network of
GAIL. ONGC intends to hire Gas dehydration & HC DPD units along with manpower for
dehydration of gas to meet this requirement.

2. PASARLAPUDI-GCS
Pasarlapudi GCS is located approximately 80 KMs away from Rajahmundry town located in the
East Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of
Pasarlapudi field are connected to Pasarlapudi GCS. The low-pressure gas generated in
Pasarlapudi GCS is compressed and will be fed into the inlet of Gas Dehydration unit along with
high-pressure gas for dehydration purpose and will be fed into high-pressure pipeline network of
GAIL. ONGC intends to hire Gas dehydration & HC DPD units along with manpower for
dehydration of gas to meet this requirement.

3. MORI-GCS
Mori GCS is located approximately 98 KMs away from Rajahmundry town located in the East
Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of Mori &
Kesavadasupalem fields are connected to Mori GCS. The low pressure gas generated in Mori
GCS is compressed and will be fed into the inlet of Gas dehydration unit along with high pressure
gas for dehydration purpose and will be fed into high pressure pipeline network of GAIL. ONGC
intends to hire Gas dehydration & HC DPD units along with manpower for dehydration of gas to
meet this requirement.

4. KESANAPALLI (W)-GGS
Kesanapalli (W) GGS is located approximately 100 KMs away from Rajahmundry town located in
the East Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells
of Kesanapalli field are connected to Kesanapalli (W) GGS. The low pressure gas generated in
Kesanapalli (W) GGS will be compressed and will be fed into the inlet of Gas Dehydration unit
along with high pressure gas for dehydration purpose and will be fed into high pressure pipeline
network of GAIL. ONGC intends to hire Gas dehydration & HC DPDunits along with manpower
for dehydration of gas to meet this requirement.

5. Tatipaka- GCS
Tatipaka GGS is located approximately 75 KMs away from Rajahmundry town located in the East
Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of Tatipaka
field are connected to Tatipaka- GCS. The low pressure gas generated in Tatipaka- GCS will be
compressed and will be fed into the inlet of Gas Dehydration unit along with high pressure gas for
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dehydration purpose and will be fed into high pressure pipeline network of GAIL. ONGC intends
to hire Gas dehydration & HC DPD units along with manpower for dehydration of gas to meet this
requirement.

6. Endamuru-GCS
Endamuru-GCS is located approximately 65 KMs away from Rajahmundry town located in the
East Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of
Endamuru field are connected to Endamuru-GCS. The high pressure gas generated in
Endamuru-GCS will be fed into the inlet of Gas Dehydration unit for dehydration purpose and will
be fed into high pressure pipeline network of GAIL. ONGC intends to hire Gas dehydration & HC
DPD units along with manpower for dehydration of gas to meet this requirement.

7. GOPAVARAM-GGS
Gopavaram GGS is located approximately 85 KMs away from Rajahmundry town located in the
East Godavari district in the State of Andhra Pradesh, India. Oil & Gas wells producing wells of
Gopavaram field are connected to Gopavaram GGS (Group Gathering Station). The low-pressure
gas generated in Gopavaram GGS is compressed and will be fed into the inlet of Gas Dehydration
unit for dehydration purpose and will be fed into high pressure pipeline network of GAIL. ONGC
intends to hire Gas dehydration & HC DPD units along with manpower for dehydration of gas to
meet this requirement.

2.0 BATTERY LIMIT CONDITIONS:

The Battery limit conditions of gas at inlet and outlet are specified in the data sheets. The ambient
conditions are also specified in the data sheets. The contractor should guarantee delivery of
dehydrated gas at the specified outlet conditions of GGS/GCS/EPT.
The contractor should incorporate necessary facilities required to prevent carryover of
free water /oil/condensate entrainment, if any, on inlet side of Gas Dehydration unit.
The typical composition for High Pressure gas as well as Fuel gas available in respective GGS /
GCS / EPT is specified in the data sheets. The gas composition indicated in the data sheet is on
dry basis. However, the gas is saturated with water with occasional carryover of hydrocarbon
liquid. The gas composition is typical and is subject to variation encountered in oil/gas fields. No
claims would be entertained on account of variation in gas composition.
The data sheets must be duly signed and stamped by Manufacturer/Packager of the
dehydration unit as well as the Bidder which confirms bidders acceptance to supply / install
Gas Dehydration & HCDPD unit along with all system / subsystems as required. In case the
Packager / Manufacturer do not agree to provide any of the equipment / systems /
subsystems / facilities, bidder should confirm separately to provide such equipment /
facilities. Such separate statement should explicitly reflect / identify OEM / supplier of
those systems / subsystems and be signed by bidder & OEM / supplier of those systems.

3.0 CAPACITY OF GAS DEHYDRATION UNITS & DESIGN BASIS:

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A. CAPACITY:

Minimum Contractual
Required Installed Capacity of
Quantity of Gas
INSTALLATION Gas Dehydration &HC DPD Unit
Dehydration &HC DPD unit
(LSCMD)
(LSCMD)
0.50
Narsapur GCS 1.50 (1x 1.5)
2.50
Mandapeta GCS 5.00(1x5)
1.50
Pasarlapudi GCS 3.50 (1 x 3.5)
4.00
Mori GCS 8.50 (1 x3.5 +1x 5)

Kesanapalli (W) GGS 5.00(1x 5 ) 2.00

Tatipaka - GCS 5.30(1x 3.5 +1 x 2.0) 4.00

Endamuru-GCS 1.50 (1 x 1.5) 0.50


Gopavaram 0.10
0.25
GGS(Optional)

On any single day during the operation, if the quantity of dehydrated gas is less than the minimum
contractual quantity of respective installation, the penalty will be levied on daily basis and settled
at the month end. The above gas dehydration capacity shall be measured at the outlet battery
limit.

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B. DESIGN BASIS:
REQUIREMENT FOR INSTALLATION OF HIRED Gas dehydration & HC DPD PLANTS
Sl. No. Installation Required Minimum Required Available Gas Maximum Maximum Availability of HP & LP Gas (LSCMD) & Requirement
Installed Contract Dehydration Pressure at the Trunk Temperatu of Gas Compressor
Capacity of ual System Inlet of the Line re at the
Dehydratio Quantity Dehydration Pressure Inlet of the
n Plant (LSCMD) Plant / (Kg/Cm2) Dehydratio
(LSCMD) Operating Pr. of n Plant
DHU(Kg/Cm2) (Deg C)
Total available gas at Mori is: Low Pressure gas: 5
LSCMD, High Pressure gas: 1-2 LSCMD; ONGC hired
Glycol Mori Gas Compressors are available at Mori to
Dehydration & compress LP gas to raise the pressure of LP gas to 50
Chiller System KSC. HP gas will be available at 50 KSC (without
compression). By mixing this compressed LP gas & HP
8.50 gas will be available to feed at the inlet of Gas
1 Mori GCS (1 x3.5 4.00 30-50 50 45
Dehydration &HC DPD Plant. The Gas dehydration
+1x 5) & HC DPD plant at Mori has to be designed for 8.5
LSCMD to process. Gas dehydration & HC DPD
plant is to be designed for operating at 30-55
KSC because GAIL Trunk line operating
pressure is maintained maximum at 50 KSC.
Glycol
Total Gas is HP gas & will be available at 50 KSC to
Dehydration &
Chiller System feed at the inlet of the Gas dehydration & HC
DPD plant. No gas Compressor is required. Gas
Narasapur 1.50 (1x 50 dehydration & HC DPD Gas dehydration &
2 30-50 45
GCS 1.5) HC DPD plant is to be designed for operating
0.50 at 30-55 KSC because GAIL Trunk line
operating pressure is maintained maximum
at 50 KSC.
Total LP gas: 1.0 LSCMD, HP gas :2-3 LSCMD; ONGC
Glycol hired Gas Compressors are to be used to compress LP
Dehydration & gas only to raise the pressure upto the required inlet
Chiller System pressure of the Gas dehydration & HC DPD. HP
Pasaralpudi 3.50 (1 x 55 gas will be available at 50 KSC(max.) at the Battery
3 30-50 45
GCS 3.5) limit. Gas dehydration & HC DPD plant is to be
designed for operating at 30-55 KSC
1.50 because GAIL Trunk line operating pressure
is maintained maximum at 50 KSC.

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Available gas LP: 2.0 LSCMD, HP:1.5-2 LSCMD;
ONGC's Own Gas Compressors will be used to
Glycol
compress LP gas to raise the pressure upto the
Dehydration &
required inlet pressure of the dehydration plant i.e. at
Chiller System
Mandapeta 50 KSC. HP gas will be supplied at 30-50 KSC (without
4 5(1 x 5) 2.0 30-50 50 45
GCS compression) mixing with the compressed LP gas to the
inlet of the Plant. Gas dehydration & HC DPD plant
is to be designed for operating at 30-55 KSC
because GAIL Trunk line operating pressure is
maintained maximum at 50 KSC.
5 Kesanapalli 5.0(1x5.0) 2.5 Glycol 30-50 55 45 Gas available at Kesanapalli GGS: 0.8 to 1.35 LSCMD
(W - GGS Dehydration & Low Pressure gas & around 2.0 to 3.5 LSCMD High
Chiller System Pressure gas. ONGC hired Gas Compressors will be
made available at Kesanapalli (W) GGS to compress
LP gas to raise the pressure of LP gas maximum upto
55 KSC. HP gas will be available at around 55 KSC
(without compression). Both the compressed LP Gas &
HP Gas will be available to feed at the inlet of Plant.
The Dehydration plant at Kesanapalli (W) GGS has to
be designed for 5 LSCMD to process at the Plant. After
dehydration& Dew point depression the gas is to be fed
directly into the GAIL Trunk Line whose pressure is
maintained upto 50 KSC. Hence the Dehydration &
Dew point depression plant may be required to be
operated at a pressure so that it can be fed directly into
the GAIL Trunk line. If dehydrated gas pressure goes
below 50 KSC, the bidder has to provide their own
arrangement (gas compressor) to raise pressure to
such an extent so that Treated gas can be fed into GAIL
Trunk line. The bidder has to include all cost (gas
compressor) in their bid & have to quote a single rate in
Rs./M3 (Inclusive of Service Tax) to treat the gas as per
PNGRB guide lines.
Glycol
ENDAMURU Total Gas is HP gas & will be available at around 50
6 1.5 0.5 Dehydration & 30-50 50 45
- GCS KSC to feed at the inlet of the Gas Dehydration & Dew
Chiller System
point Depression plant. No gas Compressor is required.

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Dehydration plant is to be designed for operating at
around 30-50 KSC so that directly dehydrated & Dew
point depression gas can be fed into the GAIL Trunk
line operating pressure is 45 KSC.
If dehydrated &DPD gas pressure goes below 45 KSC,
the bidder has to provide their own arrangement (gas
compressor) to raise pressure to such an extent so that
Treated gas can be fed into GAIL Trunk line. The bidder
has to include all costs in their bid & have to quote a
single rate in Rs. /M3 (Inclusive of Service Tax).
Glycol
Total Gas will be available at around 50 KSC to feed at
Dehydration &
the inlet of the dehydration plant. LP gas will be
Chiller System
compressed to the required pressure by ONGC owned
compressors at Tatipaka. Gas dehydration & HC
5.30 DPD plant is to be designed for operating at 30-55
TATIPAKA- KSC because GAIL Trunk line operating pressure is
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GCS
(1x 3.5 4.0 30-50 50 45
maintained maximum at 50 KSC. If Treatd gas pressure
+1 x 2.0) goes below 45 KSC, the bidder has to provide their own
arrangement (gas compressor) to raise pressure to
such an extent so that Treated gas can be fed into GAIL
Trunk line. The bidder has to include all cost in their bid
& thave to quote a single rate in Rs./M3 (Inclusive of
Service Tax).
Glycol
Total gas is LP gas. ONGC hired Gas Compressors at
Dehydration &
Gopavaram are to be used to compress total LP gas to
Chiller System /
Gopavaram raise the pressure upto the required inlet pressure of
Dryer & Chillier 50
8 GGS 0.3 0.15 30-50 45 the dehydration & HC DPD plant i.e. 30-50 KSC. Gas
system
(Optional) dehydration & HC DPD plant is to be designed for
operating at 30-55 KSC because GAIL Trunk line
operating pressure is maintained maximum at 50 KSC.
NOTE:
The Gas Dehydration & Dew Point Depression units are to be designed in such a way that the dehydrated& Dew point Depressed gas must achieve
1. the PNGRB specifications placed at Sl. No. D. below. ONGC may or may not opt for installation of Gas Dehydration and Dew point Depression unit at
Gopavaram GGS, in such case suitable compression system required to be provided at this location to transport the Gas to Pasarlapudi GCS for further
treatment at second location.
PROVIDE HIRING COST OF DEHYDRATION& HC DEW POINT DEPRESSION PLANTS CONSIDERING ALL UTILITIES INCLUDING POWER, MOBILIZATION,
2. INSTALLATION & COMMISSIONING, OPERATION & MAINTENANCE OF THE DEHYDRATION UNITS & ALL UTILITY PLANTS IF ANY. ONGC WILL PROVIDE
AVAILABLE LAND (DIMENSIONS GIVEN) TO INSTALL THE TOTAL PLANT & FREE GAS TO OPERATE THE PLANT UPTO THE LIMIT OF DECLARED FUEL
GAS CONSUMPTION FOR OPERATION OF THE COMPLETE DEHYDRATION & HC DEW POINT DEPRESSION PLANT.

C. GAS COMPOSITION: Gas Compositions of inlet gas to the dehydration unit of the fields are attached herewith.

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D. PNGRB Gas quality specifications as per Gazette of India (regulations 5(5).8(1)(b)(i) implemented for gas supply through pipeline
which is as follows:
Parameters Limit
Hydrocarbons dew point (Degree Celsius, max) * : 0
Water dew point (Degree Celsius, max) * : 0
Hydrogen Sulphide (ppm by wt.max.) : 5
Total Sulphur (ppm by wt.max.) : 10
Carbon dioxide (mole % max) : 6
Total inerts (mole%) : 8
Temperature (Degree Celsius, max) : 55
Oxygen (% mole vol. max) : 0.2
* At the pipeline operating pressure

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4.0 SCOPE OF WORK OF THE CONTRACTOR:
The contractor is required to Dehydrate & Dew Point Depression of the Natural Gas
available at the inlet of the gas dehydration & DPD unit and deliver the Treated Natural Gas
at the specified conditions at a point in ONGCs pipe line (as designated by ONGC) by
providing all necessary facilities, equipment, manpower, consumables, lubricants, spare
parts, etc.,
The contractors scope of work encompasses total Engineering, supply,
transportation, installation, commissioning and operation & maintenance of a
suitable Gas Dehydration & HC Dew Point Depression plant (i.e., TEG Based
Dehydration and Refrigeration chiller based Dew point depression) complete in all
respects.
Contractors scope of work shall include all civil / structural / mechanical / piping /
instrumentation / electrical works for the gas dehydration & HC DPD plant including but not
limited to the following:
i) Fencing with barbed wire along with gate(s) and security arrangements,
ii) It will be ONGCs endeavor to offer plain land for installation of Gas
Dehydration & HC Dew point Depression unit. However, if site development
requires land filling to fill up low lying areas etc., site grading, foundations,
approach roads foot paths, storm water drains, etc.as required, it will be in the
Contractors scope.
iii) Cabin / Shed / Room along with toilets etc. for contractors personnel / operators.
iv) Store room for consumables, lubricants, chemicals, spare parts, tool and tackles
etc.
v) Suitable shed of the plant (if requires) with proper illumination inside.
vi) Shed / room / protective covers for all equipment, electrical / instrumentation items
as deemed necessary.
vii) Supply / transportation / installation of skid mounted Gas Dehydration & HC DPD
unit complete as per data sheet including skid piping, pressure vessels, instruments
and control systems, electrical items, all utility systems including power etc., in all
respects.
viii) Supply / transportation / installation of common gas Inlet and treated gas outlet
Knock Out Drum (outside the package) with all instruments, level switches etc.,
ix) Supply / transportation / installation of Fuel Gas Conditioning System, if requires
including knock out drums, pressure reducing control valves, etc.
x) Supply / transportation / installation of suitable condensate handling system along
with suitable pump & integration with existing (ONGCs) condensate system for
return of condensate at specified pressure. Gas should not be used for transfer of
condensate.
xi) Supply of Instrument & starting air supply, as necessary will have to be arranged by
contractor at his own cost by providing suitable Instrument Air & Starting Air System.
ONGC will not allow any natural gas operated field instrument. Only
instrument air is to be used for the field instruments.
xii) All other Process & Utility Systems as required.
xiii) All lines laying, hook up and termination (both inlet & outlet) of gas line to & from the
gas dehydration & HC DPD units, condensate lines, all PSVs & flare lines, fuel gas
line etc. are to be done from & to the ONGC designated points. Ensuring PSVs for
all pressure vessels as required by prescribed standards.
xiv) Metering facilities for fuel gas line and Water & Hydrocarbon Dew Point Analyzer:
a) Fuel Gas meter: The measurement shall be as per practices recommended by
AGA (American Gas Association) Gas measurement Committee Report No.3 -
2000 with AGA8 and its subsequent additions & revisions (whichever is

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applicable) and shall be binding on the parties hereto. for accurate metering of
GAS
b) Water Dew Point: Water and hydrocarbon online dew point monitors should be
as per ASTM D 1142.

c) Hydrocarbon Dew Point: 0oC Max (Zero degree Celsius, Maximum).


xvii) Regular power supply: Electrical power will not be made available by ONGC.
Contractor shall make this own arrangement for continuous running of plant.
xviii) Area lighting and illumination including provision of lighting distribution board, etc.
xix) Arrangement for regular & emergency power (DG Set & UPS etc. as necessary).
xx) Disposal of flared / vent gas through a flare gas header and integration to existing
(ONGCs) flare header. Necessary measurement system to be arranged.
xxi) Successful commissioning of the Gas Dehydration & Dew Point Depression plant.
xxii) Operation & maintenance of the Gas Dehydration & Dew Point Depression plant
including deployment of trained manpower, supply of all consumables, chemicals,
lubricants, spare parts, tool & tackles and replacement of defective equipments,
components, parts etc.
xxiii) Maintaining sufficient inventory of spare parts, consumables, lubricants etc. for
smooth and continuous operation of the plant.
xxiv) Obtaining statutory approvals including the DGMS approval and performing work in
accordance with such approvals.
xxv) Providing and maintaining adequate firefighting and gas detection equipment viz.
Fire extinguisher, sand buckets, portable trolleys, Fire Network & its integration with
existing system etc.
xxvi) Dismantling and de-mobilization of the Gas Dehydration & Dew Point Depression
plant after completion of contract shall be completed in 30 days from the date of
expiry / termination of contract.
xxvii) Any other items / work / services not specifically listed above but required for safe,
reliable and desired operation of the Gas Dehydration & Dew Point Depression plant
and delivering the dehydrated & Dew point Depressed natural gas at the specified
conditions.

5.0 FACILITIES TO BE PROVIDED BY ONGC:


5.1 LAND:
Bidder will have to install the Gas Dehydration & Dew Point Depression units in a land
earmarked for each installation specified by ONGC inside / outside the respective
installation. To minimize the shutdown period, Bidders are advised to adopt the modular
approach and use prefabricated spools/modules and items. Land development is to be
carried out in above plot by the contractor including approach / access by road (Clause 4.0
(ii) of Scope of Work and 1.3 of Special Conditions of Contract).
The bidder must make a visit to the installation to see the designated land for
installation of Gas Dehydration & Dew Point Depression units before submission of bid.
Land will be handed over as is in available condition to the successful bidder. No
claims would be entertained on account of quality of land afterwards.

5.2 INLET GAS:


High Pressure Natural gas shall be made available at a point at the existing process facilities
(i.e., at the location designated by ONGC). Bidder has to lay pipe line from the ONGC
designated points to the inlet of the gas dehydration units.

5.3 OUTLET GAS:

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Dehydrated & Dew Point Depressed (Treated) gas shall be collected at an outlet point of
the Gas Dehydration & Dew Point Depression units. Bidder has to lay Pipe line from the
outlet of the Gas Dehydration & Dew Point Depression units to the ONGC designated points
for final dispatch.
5.4 FLARE GAS:
Vent gas and gas meant to be flared needs to be hooked up to a flare header and this flare
header has to be integrated with existing (ONGCs) flare header at point (location)
designated by ONGC. All required lines are to be laid and meters to be installed for gas
measurement by the contractor.
5.5 CONDENSATE RETURN:
Condensate / HC liquid collected from various points of the Gas Dehydration & Dew Point
Depression plant shall be diverted to a suitably designed condensate handling system and
further needs to be integrated with ONGCs existing condensate handling system.
It is to be ensured that the condensate separated at the battery limit of Gas Dehydration &
Dew Point Depression systems is stabilized and directly connected to Storage tanks of
respective installations or at a point designated by ONGC. Pumps are to be installed to
transport the condensate to the existing system. No gas is allowed to use for this purpose.
Dimensions of all available pipe lines to be hooked up at battery limit mentioned above at
5.2, 5.3, 5.4 & 5.5 are as follows:
INSTALLATION Existing Existing Outlet Gas Inlet Gas Flare Gas Condensat Approx.
Inlet Gas Gas line to line from line to Line (Inch) e Line Length
line to be which outlet Dehydration Dehydration from (Inch) of each
fed to pipe line of Plant of Plant of Dehydration Dehydration line
Dehydration plant to be Contractor Contractor Plant (Inch) Plant (Inch) (Mtrs)
Unit (Inch) connected (Inch) (Inch)
(Inch)
Kesanapalli Contractor Contractor Contractor Contractor 200 to
6 6 to decide to decide to decide to decide
(W) GGS 250
Narsapur Contractor Contractor Contractor Contractor 200 to
4.0 4.0
GCS to decide to decide to decide to decide 250
Mandapeta 12.0 12.0 Contractor Contractor Contractor Contractor 200 to
GCS to decide to decide to decide to decide 250
Pasarlapudi Contractor Contractor Contractor Contractor 200 to
12.0 12.0
GCS to decide to decide to decide to decide 250
Contractor Contractor Contractor Contractor 200 to
Mori GCS 12.0 12.0
to decide to decide to decide to decide 250
Contractor Contractor Contractor Contractor 500
KPDA-EPT 4 4
to decide to decide to decide to decide
Tatipaka Contractor Contractor Contractor Contractor 500
10 10
GCS to decide to decide to decide to decide
Endamuru Contractor Contractor Contractor Contractor 500
6 6
GCS to decide to decide to decide to decide
Gopavaram Contractor Contractor Contractor Contractor 200 to
GGS(optional 2 2 to decide to decide to decide to decide 250
)

ONGC will provide hot work permit during day time (up to stipulated time i.e., up to sun set
only) but prior intimation is required for the same. Contractor should also give assurance on
fire & safety precautions & abide by the safety standards for the same.

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5.6 UTILITIES:
The following utilities may be made available on chargeable basis by ONGC to bidder:
a) FUEL GAS & PROCESS GAS:
Fuel gas shall be made available at specified conditions free of cost up to the declared
consumption limit for operation of complete Gas Dehydration & Dew Point Depression unit
as per the data sheets of respective Manufacturer / Packager. However total gas
consumption for operation of Gas Dehydration & Dew Point Depression plant beyond the
limit of consumption shall be on chargeable basis @ Rs.6.35 SCM.

b) ELECTRICAL POWER:
Electrical power will not be made available by ONGC. Contractor shall make necessary
arrangement to ensure uninterrupted operation of Gas Dehydration & Dew Point
Depression plant. However, ONGC will provide NOC for availing power from State
Electricity Board if requested by bidder.
c) SERVICE WATER :
Service water will not be made available by ONGC. Contractor shall make necessary
arrangement to ensure uninterrupted operation of Gas Dehydration & Dew Point
Depression plant. However, Contractor will be permitted to drill bore well for service
water requirement if statutory requirement permits.
ONGC will provide NOC for availing water connection, if any, from local authority on bidders
request.
6.0 GENERAL REQUIREMENT:
6.1 Gas Dehydration & Dew Point Depression plant shall be designed, constructed and
operated so as to meet the requirements of applicable safety codes / standards.
6.2 All electrical apparatus, instrumentation items / system shall be suitable for the
hazardous area classification as per applicable National / International standards and
statutory regulations.
6.3 All pressure vessels of the Gas Dehydration & Dew Point Depression units need to be
tested and a proof of such test as certified by a reputed third party agency approved by
ONGC (as per list attached at Format-Appendix-IV) needs to be submitted prior to
commissioning of the Gas Dehydration & Dew Point Depression unit. Similarly, all PSVs
should be tested / calibrated and a proof of such test as certified by manufacturer (in
case of new PSVs) or certified by a reputed safety valve calibration agency for oil & gas
industry (in case of old PSVs) needs to be submitted prior to commissioning of the gas
dehydration unit.
6.4 All systems should be designed, constructed and operated for uninterrupted continuous
operation to supply gas at a point in ONGCs pipe line (as designated by ONGC) at the
specified pressure & temperature as per the specification of PNGRB
6.5 In case Contractor is not able to deliver the Contracted Quantity of Gas at the specified
outlet conditions, it shall be treated as failure on part of the contractor and dealt with in
accordance with the Compensation Clause.
6.6 All works / systems provided under this contract shall be designed and constructed in
accordance with the prevalent National / International codes and practices.

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6.7 ONGC shall have the right to inspect the facilities / equipment deployed by the contractor
and if any deficiencies are observed by ONGC, the contractor shall rectify such
deficiencies promptly upon receipt of such instructions from ONGC.

7.0 Gas Dehydration & Dew Point Depression SYSTEM :


a) The Gas Dehydration & Dew Point Depression units should be skid mounted, re-
locatable and suitable for continuous operation.
b) The Gas Dehydration & Dew Point Depression plant and its piping arrangement should
be designed suitably taking into account the design basis & other parameters (gas
composition, Treated gas specifications as per PNGRB guidelines etc.) brought out
above. Contractor should submit P&ID diagram of the entire arrangement up-to
tie-in points well in advance and get the same approved by ONGC prior to starting
of construction activity.
8.0 INSPECTION CONDITIONS AND ITS COMPLIANCE MECHANISM
8.1. INSPECTION BY THIRD PARTY ENGAGED BY ONGC OR ONGC
INSPECTION DEPARTMENT
8.1.1 OLD Gas Dehydration & Dew Point Depression UNIT
In case bidder has offered the old Gas Dehydration Unit, the TPI engaged by
ONGC shall certify the following:

Inspection and testing at Site:


1. TPI should do inspection of testing and commissioning of the gas dehydration
unit at site as per ONGC specifications, meeting all safety and statutory norms
and tender requirements.
2. The gas dehydration unit shall be run continuously for minimum 72 hrs.
3. TPI Agency shall issue inspection certificate on its letterhead confirming that the
gas dehydration unit meets the tender specifications. The certificate should
include minimum but not limited to the followings:
I.Inlet pressure and rated flow for natural gas.
II.Outlet pressure and rated flow for natural gas.
III.Achieved Water & Hydrocarbon Dew Point
IV. Manufacturer of gas dehydration unit with type, make, model, capacity,
month and year of manufacturing is in conformity with submitted documents.
V. Standards and codes under which gas dehydration unit has been
manufactured are in conformity with submitted documents.
VI. Name of the packager, Sr. no. of the package and year of packaging are in
conformity with submitted documents, if applicable
VII. The gas dehydration unit is capable of meeting gas dehydration capacity &
quality of dehydrated gas at the operating parameters specified in the
tender.

8.1.2 NEW GAS DEHYDRATION UNIT


In case bidder has offered the new Gas Dehydration Unit package, the TPI engaged
by ONGC shall certify the following:

After placement of order / Inspection and testing at Site:

13
1. TPI should do inspection of testing and commissioning of the Gas dehydration & HC
DPD unit at site as per ONGC specifications, meeting all safety and statutory norms
and tender requirements.
2. The Gas dehydration & HC DPD unit shall be run continuously for minimum 72 hrs.
without any interruption.
3. TPI Agency shall issue inspection certificate on its letterhead confirming that the Gas
dehydration & HC DPD unit meets the tender specifications. The certificate should
include minimum but not limited to the followings:
I.Inlet pressure and rated flow for natural gas.
II.Outlet pressure and rated flow for natural gas.
III.Water & Hydrocarbon Dew Points.
IV. Manufacturer of Gas dehydration & HC DPD unit with type, make, model,
capacity, month and year of manufacturing is in conformity with submitted
documents.
V. Standards and codes under which Gas dehydration & HC DPD unit have
been manufactured is in conformity with submitted documents.
VI. Name of the packager, Sr. no. of the package and year of packaging are in
conformity with submitted documents, if applicable
VII. The Gas dehydration & HC DPD unit is capable of meeting capacity & quality
of Treated gas at the operating parameters specified in the tender.

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The following systems / sub - systems should form part of the package

1. Gas dehydration & HC DPD Unit should be mounted on a skids as a fully self
contained package.
2. The packages should comprise of the following:

a) Gas Dehydration system


b) Dew point Depression system
c) Condensate handling system
d) Instrument Air System (Air Compressor, Volume bottle etc.)
e) Fuel Gas Conditioning System, if requires
f) All other items not specifically listed above to make the skid complete
g) Local Control Panel
h) Shut Down Instruments
i) Safety valves
j) Piping. (Process, fuel gas, air etc.)

3. Outside the Package:


a) Inlet Knock Out Drum
b) Outlet Knock Out Drum

4. The package should be designed for continuous operation in tropical ambient condition
and should be suitable for classified hazardous area.
5. Inlet Knock-Out Drum with all instruments to prevent carryover of hydrocarbon liquid to
Gas dehydration & DPD Unit and Outlet Knock-Out Drum with all instruments to prevent
carryover of Glycol / liquids in pipeline (these are external to gas dehydration Unit).
6. Bidder should categorically confirm to provide all the above systems along with the sub
- systems as detailed above.

----------------------

15
SPECIAL CONDITIONS OF CONTRACT (Technical)

1.0 These Special Conditions of Contract" shall over-ride the "General Conditions of
Contract" and "Technical specifications", wherever required.
1.1 At certain locations, like Group Gathering Station or Oil Wells the work may have to be
carried out in restricted area/conditions, the Contractor shall have to carry out such
works without any extra payment as per instructions of Engineer-In-Charge ensuring
and complying with all safety regulations and requirements. A flame arrester, attached
to the equipment/vehicles run by petroleum products, is mandatory in such
circumstances.

2.0 Failure & Termination / Liquidated Damages / Recovery / Compensation:

2.1. A) DELAY IN MOBILISATION AND LIQUIDATED DAMAGES:

(a) CONTRACTOR (successful bidder) shall mobilize and deploy the required
manpower and complete natural Gas dehydration & HC DPD unit, so as to commence
the services at the specified site within a maximum of 150 days from the date of Fax
order / LOA / NOA.
b) If the CONTRACTOR (successful bidder) fails to mobilize and deploy the required
manpower /equipment and / or fails to commence the services within the period
specified in sub clause (a) above, ONGC shall have, without prejudice to any other right
or remedy in law or contract including sub clause (c) below, the right to terminate the
contract.
c) If the CONTRACTOR is unable to mobilize / deploy and commence the services
within the period specified in sub clause (a) above, it may request ONGC for extension
of the time with unconditionally agreeing for levy and recovery of LD. Upon receipt of
such a request, ONGC may at its discretion, extend the period of mobilization and shall
recover from the contractor, as an ascertained and agreed Liquidated Damages, a sum
of equivalent to % of annual contract value, for each week of delay or part thereof,
subject to a maximum of 10% of the annual contract value.
d) The parties agree that the sum specified above is not a penalty but a genuine pre-
estimate of the loss/damage which will be suffered by ONGC on account of delay on
the part of the CONTRACTOR and the said amount will be payable without proof of
actual loss or damage caused by such delay.
e) LD will be calculated on the basis of annual contract value excluding duties and
taxes, where such duties/taxes have been shown separately in the contract.

B) COMPENSATION FOR NON- DEHYDRATION/DPD OF CONTRACTED


QUANTITY OF GAS:
During operation period of the contract, in the event contractor fails to deliver the
contracted quantity of Treated gas at the specified outlet for reasons attributable to the
contractor, the contractor shall pay compensation to ONGC on the basis of prevailing
Gas price payable to ONGC, Rajahmundry (i.e., Rs.6.35 per M3) for non-Treated
quantity of the gas calculated on per day basis to be settled on monthly basis.

16
LD clause for delay in mobilization and clause on compensation for non-Treatment of
gas during delayed mobilization are applicable simultaneously.
The total liability due to liquidated damages and/ or compensation due to non-
Treatment of gas shall not exceed 50% of the annualized contract value.
C) PENALTY FOR NOT ACHIEVING THE SPECIFIED QUALITY (PNGRB) OF THE
TREATED GAS
During operation period of the contract, online measurement and monitoring of water
& hydrocarbon dew points & other specified parameters shall be installed and
maintained.
In the event contractor fails to deliver the contracted quantity of Treated gas of specified
quality (PNGRB specifications) at the specified outlet dew point values (water and
hydrocarbon) for reasons attributable to the contractor, the contractor shall pay penalty
to ONGC on the basis of prevailing Gas price payable to ONGC, Rajahmundry (Rs.6.35
per M3) for non-Treated quantity of the gas calculated on per day basis to be settled
on monthly basis.
However, in every year maximum 15 days will be given for maintenance of the
plant & during the maintenance period no penalty will be imposed for less
quantity Treatment & low quality of the Treated gas and ONGC will not pay any
standby charge for the same. Unutilized maintenance days will be carried
forward to the next year.

2.2 Both Contractor and ONGC agree that this is a genuine pre-estimate of the loss/damage
which will be suffered on account of delay / breach on the part of the contractor and the
said amount will be payable to ONGC without there being any proof of the actual loss
or damages caused by such delay / failure / breach.
2.3 Liquidated damages for delay in mobilization as per clause 2.1 (A) above and / or
compensation for non- Treatment of contracted quantity of gas: as per clause 2.1 (B)
above, thus accrued will be recovered by ONGC from the bills / invoices submitted by
the Contractor, in accordance with terms & conditions of the Contract.
2.4 ONGC may without prejudice to its right to effect recovery by any other method, deduct
the amount of liquidated damages and / or compensation for non- Treatment of
contracted quantity of Gas from any money belonging to the Contractor in its hands
(which includes ONGCs right to claim such amount against the Contractors Bank
Guarantee (s)) or which may become due to the Contractor from the Contractors
monthly bills.
2.5 Any such recovery of Liquidated Damages and / or compensation for non- Treatment
of contracted quantity of Gas shall not relieve the Contractor from any other of his
obligations / liabilities under the Contract.

3.0 Conditions of Work Performance:


3.1 Contractors equipment shall be maintained by him in sound, safe and efficient
operational condition at all times. Should the performance of Contractors Gas
dehydration & HC DPD unit become unsatisfactory, ONGC shall give Contractor
written notice specifying the causes of its dissatisfaction and Contractor shall have
a reasonable time specified by ONGC for rectification of deficiencies failing which
ONGC shall have the right to temporarily suspend the operation and recover the
cost till such time the situation is rectified to the satisfaction of ONGC. Contractor
shall not be entitled to any payment during such suspended period. If the situation
is not rectified and continues for a period up to 30 days or repeated frequently, then

17
ONGC shall have the right to terminate this Contract by giving 15 (fifteen) days
advance written notice without prejudice to ONGCs right to levy liquidated damages
in accordance with clause No.2.1(A).

3.2 The safety of the plant of ONGC, Gas dehydration & HC DPD plant as well as that
of operating personnel deployed by the Contractor is of prime importance. In case
at any point of time it is found that the operational personnel deployed by the
Contractor do not have the requisite experience of operation of Natural Gas Process
unit or abide by safety rules, ONGC may ask Contractor to replace those persons
with experienced person as required in the agreement. Contractor shall replace
them immediately with experienced person(s).

3.3 DELETED

3.4 Contractor shall be responsible for all statutory approval including that of DGMS etc.

3.5 Contractor shall be responsible for providing First aid medical attention for
Contractors personnel at the Site and medical services for Contractors personnel.

3.6 Contractor shall be responsible for keeping and furnishing to ONGC an accurate
record of the Work performed on a Daily Progress Report Form acceptable to ONGC
both during installation & commissioning period and Gas dehydration & HC DPD
plant operating period (contract period).

3.7 Contractor shall be responsible for maintaining Gas dehydration & HC DPD plant &
other equipment including safety equipment in good condition at all times and using
all reasonable means to control and prevent fires and accidents.

3.8 Contractor shall be responsible for maintaining at its cost adequate stock levels of
Contractors items and replenishing as necessary, repairing of all Contractors items
and providing adequate spare parts and materials required thereof.

3.9 Contractor shall be responsible for furnishing, all lubricants chemicals, consumables
& spares for use in the Gas dehydration & HC DPD unit etc.

3.10 The above obligations are in addition to any other obligations set out in other terms
& conditions of this Contract Document.

4.0 Measurement:

4.1.0 The volume of natural gas Treated (dehydrated & DP Depressed) and delivered
under the Contract shall be measured by the flow-computer and recorder installed
by ONGC. Contractor to install its Check Flow Meters at inlet and outlet of the
unit.

4.1.1 In case the variation in measurement of flow between contractors Meter & ONGCs
Meters is 2% (Two percent) of ONGC Meter range, the reading of ONGC Meter shall
be taken as final. ONGC will install flow computer for accurate Gas metering.
Generally ONGC is using Daniel make Flow computers of FLOW BOS 107 or 503
models, accuracy is 0.5 %. If the variation exceeds 2% (Two percent) of ONGC
Meter range, the final reading shall be arrived as per the detailed procedure laid
down in article 4.1.3 below.

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The measurement shall include all correction in installations practice recommended
for accurate metering of GAS by AGA (American Gas Association) Gas
measurement Committee Report No.3 - 2000 with AGA8 and its subsequent
additional & revisions (whichever is applicable) and shall be binding on the parties
hereto.

The Gas flow meter of Contractor, Fuel Gas Meter and Dew Point Analyser (Water
Dew Point & Hydrocarbon Dew Point) of the Contractor shall be jointly calibrated as
& when required as per the instruction of ONGC.

4.1.2 In case Contractor has any doubt on the proper working of the Gas flow meter of
ONGC, it shall inform the same to the ONGC in writing and may request for checking
/ calibration of the flow meter. Cost of such special test shall be borne by the
Contractor if the percentage of inaccuracy is found to be within the limits stated in
clause No.4.1.1 above but the cost of such special test shall be borne by ONGC if
the percentage of in accuracy is found to be more than the ONGCs limits stated in
clause No.4.1.1 above. However, Scope of Supply of Calibrating equipment for
Calibrating the Flow Meter will be with ONGC.
4.1.3 If on calibration the ONGC Meter registers a variation of more than 2% (Two percent)
or if the ONGC Meter is out of service, the following procedure in order or priority
whichever is feasible for arriving at the computation and the present one shall be
followed.
i) By using the recording by Check-Meter of Contractor, if installed and accurately
registering: or
ii) If 4.1.3 (i) is not possible by correcting the error if the percentage of error is
ascertainable by calibration, test or mathematical calculations; or
iii) If neither 4.1.3 (i) nor (ii) is possible, by estimating the volume of Treated gas
delivered by comparing with the deliveries during the period under similar
conditions when the ONGCs Meter was registering accurately.
4.1.4 The period to which the above corrections will apply shall be as under: -
i) If any period, during which the ONGCs Meter has gone wrong, is known, or
agreed upon that will be the period to which the correction is to be applied.
ii) If the period is not known, the correction shall be made for a period equal to half
of the time elapsed since the date of preceding proving calibration test, provided
the correction period does not exceed 16 (Sixteen) days.
4.1.5 Upon written request of Contractor, the ONGC shall permit Contractor to examine
relevant records, charts, and calculations from its metering and measuring
equipment. The ONGC shall preserve all such charts, records and calculations till
such time the payment covered by the invoice of the Contractor has been paid by
ONGC. And likewise, upon written request of the ONGC. Contractor shall permit the
ONGC to examine relevant records, chart and calculation from its check meter.
Contractor shall preserve all such records, charts and calculations for a minimum
period of 30 days from the date of presentation of invoice by the Contractor.
Provided in the event of dispute regarding billing / payment relevant records shall
be preserved by the Contractor and ONGC till the dispute is finally settled.
Note:-The fuel gas is free of cost, up to rated consumption indicated by the bidder
supported by data sheet. Fuel gas conditioning system including metering facility

19
shall be installed by the contractor as mentioned in Clause 5.6(a) of Scope of Work.
Installation of Fuel gas conditioning system is optional to the Contractor but
installation of Fuel gas meter is mandatory. The fuel gas meter is to be calibrated as
& when required as per the instruction of ONGC.
5.0 Recommendatory Letter to Directorate General of Hydrocarbons (DGHC):
In terms of Notification No.12/2012 dated 17/3/2012, goods specified in list 13 under
Sl No 356 imported in connection with Petroleum operations will attract zero Custom
duty. The PML for Kesanapalli (W) GGS does not fall under notification No.
12/2012 mentioned above and hence, ONGC will not issue recommendatory
letter as per Government guidelines for issuance of Essentiality Certificate from
Director General of Hydrocarbon (DGH), Ministry of P&NG.
The PMLs for Tatipaka GCS & Endamuru-GCS fall under notification No.
12/2012 mentioned above and hence, ONGC will issue recommendatory letter
as per Government guidelines for issuance of Essentiality Certificate from Director
General of Hydrocarbon (DGH), Ministry of P&NG so as to enable the contractor to
import goods against 5% IGST or at prevalent tax rate provided these are specified
in the list 13 under Sl No 356 of said Customs notification.

The bidder shall do all imports and import clearance under the contract and ONGC
will not provide any assistance in this regard.
Notwithstanding what is stated above, the bidders should also consider the
position in regard to import of goods as specified in list No. 13 under Sl No 356
of above notification against 5% IGST or at prevalent tax rate. ONGC is not
liable in whatsoever manner, for the rejection of their claims for 5% IGST or at
prevalent tax rate by any of the authorities including the DGH.
Note: The recommendatory letter will be given only for those items, which are
either consumed during the execution of work, or for those equipment/tools,
which are undertaken to be re-exported by the bidder. The recommendatory
letter will not be issued when the bidder imports the equipment/tools on
acquisition basis and does not undertake to re-export the same after the
completion of the contract
It shall also be the sole responsibility of the contractor to avail concessional rate/NIL
rate of customs duty whenever made applicable on any terms which are not
considered while submitting the tender and in such cases the contractor shall take
immediate action to obtain Essentiality Certificate (EC) from the DGH to avail such
concessional rate/NIL rate and shall inform the ONGC the concessions so availed
to enable the ONGC to adjust the contractual payments proportionately to recover
the said amounts. Even in case the contractor failed to avail any concessional
rate/NIL rate of customs duty, still the ONGC shall have absolute right to adjust the
contractual payments to recover such amounts and the contractor shall have no
claim against ONGC as the ONGC as licensee in ML/PEL, area is entitled to have
the benefits of concessional rate/NIL rate of customs duty and it is the responsibility
of the contractor to take steps to pass on such benefits to ONGC irrespective of the
fact that such concessions were not considered at the time of submission of tender.
6.0 Equipment Acceptance: In case brand new Gas dehydration & HC DPD unit is
not offered, the bidder must submit along with the un-priced bid, a proof from
the manufacturer / packager in support of date of manufacture of the Gas
dehydration & HC DPD unit and declared fuel gas consumption etc. and submit

20
certificates from reputed third party inspection agency (as per attached list)
for conformance to tender specifications as mentioned in BEC Clause No. 3.2
7.0 In case the contractor offers new Gas dehydration & HC DPD unit, he shall produce
documents showing proof of purchase i.e. the copy of Invoice/invoices of the units
with type and month and year of manufacturing as proof of age from the
manufacturer / packager before shipment.
In case the Gas dehydration & HC DPD units are imported then copies Bill of lading
and custom paid or custom cleared bill of entry should also be provided.
8.0 The contractor shall not be allowed to use any of the existing facilities such as
fuel/structural/mechanical/piping/instrumentation/electrical works of ONGC. He is
required to build up all the related facilities on his own.
9.0 ONGC, at any point of time may depute Site-In-charge/Representatives for inspection
of the works being carried out for installation of the Gas dehydration & HC DPD unit
by contractor and insist for any documentary proof from the Manufacturer and
Packager for the offers made by him in the bid.
10.0 Concessions permissible under statues:
Contractor must take all necessary steps in order to equip themselves to avail all
concessions permissible under statutes including benefit under Central Sales Tax
Act 1956 failing which he will have to bear extra cost where contractor does not avail
concessional rates of levies like custom duty, sales tax, GST etc.,
11.0 Relocation of Gas dehydration & HC DPD Unit:
ONGC, at any point of time, during the operation of this contract, may require to
relocate the unit of any location of this tender to another ONGC specified location of
Rajahmundry Asset due to operational requirement. The Contractor has to mobilize
& commission the Gas dehydration & HC DPD unit within 60 days from the date of
order for relocation (including all civil & allied works). No Standby charge will be paid
during period of demobilization & mobilization under relocation.

12.0 Termination of Contract:


ONGC shall have, without prejudice to any other clause of the contract, the right to
terminate the contract with a notice period of one month.

21
TIME SCHEDULE

S
DESCRIPTION TIME SCHEDULE
NO.
1 Mobilization Period: Within 150 days from the
Mobilization & Commissioning of gas dehydration date of issue of FAX Order
Plant complete in all respects and commencement for Award of Work
of dehydration of Natural Gas in accordance with
Tender Document.
2 Operation Period:
The operation Period of Contract shall be for a period of 3 or 5 years from the
actual date of mobilization & commissioning or 150 days from the date of NOA,
whichever is earlier, and with a provision to shift during the currency of contract
based on requirement of ONGC.

Date : Bidders Signature.


Bidders Name:
Bidders Seal.

22
SPECIAL CONDITIONS OF CONTRACT (non-Technical)

1.0 LOCATION OF PLANT & SITE CONDITIONS:


i. Narsapur GCS is located approximately 85 KMs away from Rajahmundry town
located in the West Godavari district in the State of Andhra Pradesh, India.
ii. Mandapeta GCS is located approximately 35 KMs away from Rajahmundry town
located in the East Godavari district in the State of Andhra Pradesh, India.
iii. Pasarlapudi GCS is located approximately 80 KMs away from Rajahmundry
town
located in the East Godavari district in the State of Andhra Pradesh, India.
iv. Mori GCS is located approximately 98 KMs away from Rajahmundry town
located in the East Godavari district in the State of Andhra Pradesh, India.
v. Kesanapalli (W)-GGS is located approximately 100 KMs away from
Rajahmundry town located in the East Godavari district in the State of Andhra
Pradesh, India.
vi. Tatipaka - GCS is located approximately 75 KMs away from Rajahmundry town
located in the East Godavari district in the State of Andhra Pradesh, India.
vii. Endamuru GCS is located approximately 65 KMs away from Rajahmundry
town located in the East Godavari district in the State of Andhra Pradesh,
India.
viii. Gopavaram GGS is located approximately 85 KMs away from Rajahmundry
town located in the East Godavari district in the State of Andhra Pradesh, India.

1.2 Site Conditions:


The Contractor confirmed to have fully familiarized with the Site Conditions and has
conducted thorough studies of the Site as regards Site Conditions, Soil Conditions,
Climatic Conditions, Labour, Power, water, material and equipment availability,
transport and Communication facilities, the availability and suitability of borrow
areas, the availability of land for right of way and Temporary Office and quarters and
all other factors and facilities and things whatsoever necessary or relevant for
performing the Works.
1.3 Access by Road:
The contractor shall build access roads to the actual site at his own cost and risk.
Non availability of access roads inside the installation only for the use of contractor
shall in no case condone any delay in the execution of works not be the cause for
any claim for compensation against ONGC.
2.0 CONTRACTORS OFFICE AT SITE:
The Contractor shall provide and maintain an office at all the Sites for the
accommodation of his agent and staff and such office shall be open at all reasonable
hours to receive instructions, notices or other communications.
3.0 ACCIDENT OR INJURY TO WORKMEN:
ONGC shall not be liable for, in respect of any damages, compensation payable as
per Law in respect or in consequence of any accident death or injury to a workman
or other person in the employment of the Contractor or any Sub-Contractor
regardless of whether such accident, death or injury is resulting from any act or
default / negligence of ONGC, his agents or servants / employees and the
Contractor shall indemnify ONGC against all such damages and compensation and
against all claims, demands proceedings, costs, charges and expenses whatsoever
in respect or in regulation thereto.

23
4.0 SAFETY REGULATIONS:
4.1 General
In respect of all labour, directly or indirectly employed in the Works for the
performance of the Contractors part of this Agreement, the Contractor shall at his
own expense arrange for all the safety provisions as per safety codes of CPWD,
Indian Standard Institution, the Electricity Act, the Mines Act, Regulations, Rules and
Orders made there under and such other Acts as applicable.

4.2 Fire Safety:


The Contractor shall observe and abide by all fire and safety regulations.

4.3 First Aid & Industrial Injuries:


Contractor shall maintain first aid facilities for his employees and those of his Sub-
Contractors.
Contractor shall make outside arrangements for ambulance service and for the
treatment of Industrial injuries. Names of those providing these services shall be
furnished to Engineer-in-Charge prior to start of construction and their telephone
numbers shall be prominently posted in Contractors field office. All critical industrial
injuries shall be reported promptly to the Engineer-in-Charge and a copy of
Contractors report covering each personnel injury requiring the attention of a
physical shall be furnished to the Engineer-in-Charge.
4.4 General Rules:
Smoking within the battery area, tank farm, or dock limits or as specified by ONGC
/ Engineer-in-Charge is strictly prohibited. Violators of the no smoking rules shall be
discharged immediately.
5.0
i. Pre Employment Health Check Up: They should be medically fit to work at drill site /
plant/work centre. Bidder has to arrange and submit the pre-employment medical
examination reports at its own cost carried out by the Registered Medical
Practitioner/Government Hospital for all his workmen within 60 days from the date of
commencement of work of all his workmen as per procedure laid down in Mines Rules,
1955 under Mines Act, 1952.At any stage if ONGC deems fit, they are liable to be
checked by ONGC doctors.
Responsibility: Contractors Responsibility, at the cost of the contractor.
Penalty: In case the bidder fails to comply with Pre Employment check up along with
submission of reports to PE of all his workmen within 60 days from the date of
commencement of work as per procedure laid down in Mines Rules, 1955 under Mines
Act, 1952, Penalty will be levied @ Rs 50/- per head per week or part thereof beyond 60
days period.

ii. PME (Periodic Medical Examination) of the contractual employees is mandatory.

iii. MVT Clause:

The contractor shall ensure that every person employed by him, in Surface, Mines of the
Asset, has undergone Mines Vocational Training in accordance with MVT Rules-1966
AS SPECIFIED BY Chief Inspector of Mines Safety.

24
The bidder shall arrange MVT through RTI-ONGC / a Training centre approved by Chief
Inspector of Mines Safety.
The contractor shall depute the concerned contractual workmen to the said MVT training.
Responsibility: To be arranged by the bidder at their cost.
Contractor shall make all out efforts so that the MVT is completed within 180 days from
the date of LOI. Beyond this period if MVT training fees to the authority (RTI-ONGC) by
the Contractor or else equivalent amount will be withheld from the RA bills, till MVT is
completed progressively.
6.0 Necessary Requirements Related with HSE:

The contractor shall at his own cost comply necessary Health, Safety &
Environment (HSE) clauses based on following guidelines:
a. The Contractor shall comply with
i. All Central, State and Local Government Regulations applicable to the
Work.
ii. All applicable Company's and accepted industry HSE practices appropriate
for the Work.
iii. The requirements of the QHSE system based on ISO 9001, ISO 14001 &
OHSAS 18001 latest standards, wherever system is in place
iv. OISD standards, American Petroleum Institute (API) standards, BIS
standards and other relevant international practices. In case of conflict
between the requirements of the various specifications and/or the
requirements specified in the bid document, the more stringent
requirement shall be followed.

b. Safety/ fire protection

Contractor shall take all necessary measures to protect the work and
Workmen against accidents and occupational disease. They shall observe and
comply with all Governmental safety regulations as well as Companys and
accepted industry safety practices as required for this work. In case of any
emergency, Contractor should immediately mobilize all resources to combat
the emergency and co-ordinate with Company suitably.

The CONTRACTOR shall abide by all safety regulations of the plant as well
as ensure that safety equipment as stipulated in the Factory Act/ Mines Act
or the rules & regulations made thereof (latest edition) is issued to his
employees during the execution of the WORK.

The Engineer may also suspend all WORK at SITE, if he finds Contractors
workmen adopting unsafe practices. Suspension / stoppage of such work and
cost & time effect thereof shall be to Contractors account. Only steel
scaffolding shall be used wherever required.

c. Environment protection:
Contractor shall take all necessary measures to protect the environment and
shall observe and comply with all Governmental environmental regulations

25
as well as Companys and accepted industry environmental practices as
required for this work including safe disposal of waste.

d. The Contractor will be required to demonstrate that:

i. the management systems and the erection are adequate to ensure that
the design and the operation of the erection and the equipment are safe;
ii. the potential hazards of the erection and the risks to personnel and
environment have been identified and appropriate controls provided;
iii. adequate provision is made for ensuring, in the event of a major
emergency affecting the installation, the safe evacuation and rescue of
personnel and
iv. the statutory and Company requirements relating to safety and pollution
control measures are complied with.
e. Watching and Lighting
The Contractor shall, in connection with the works, provide and maintain
at his own cost all lights, guards, fencing, markers and watching when and
where necessary or required by the Company for the protection of the
Works or for the safety and convenience of the Public or others.
f. Safety Audits:
Contractor shall within 30 days of commencement of Contract and also once
every three months thereafter submit a safety report to the Head HSE of the
work centre with a copy to the Project Coordinator. Contractor shall
maintain a record of the relevant statutory and Company requirements
relating to safety and pollution control measures and compliance.
g. Accident/ incident reporting:
In the event of any accident or dangerous occurrence, the Contractor shall
forthwith send a notice of accident to the Head HSE of the work centre with
a copy to the Project Coordinator. Contractor shall also arrange for pickup
and immediate medical attention for the injured personnel. In case of death,
the Contractor shall be responsible for immediately notifying to the nearest
police station as well as to the Labor Officer. Near misses shall also be
reported as well as analyzed.
h. Safety procedure:
Contractor should submit a safety procedure prior to start of the activities
for Company review. The procedure should include the safety measures to
be taken during the work, firefighting / safety equipment available/ which
will be provided, in case of any emergency, number of safety / fire officers
and their role, periodical exercise on awareness of workers towards safety,
Familiarization of workers with safety equipment, teams for firefighting etc.
i. Training
Contractor should ensure that all the contractors personnel have undergone
the trainings as MVT, First Aid and Fire fighting
j. Permit to Work
Contractor shall obtain permit to work as per the statutory & ONGC
guidelines and shall strictly comply with all safety requirements of the work

26
permit during permit duration failing which Company's representative will
have the right to stop the work and all cost and time effect thereof shall be
to Contractor's account.
All hot works job in hazardous area shall be carried out in presence of the
contractors safety officer, who shall be directly responsible for carrying out
the hot work job in a safe and orderly manner.

k. PPE
Contractor shall provide all necessary PPE to their employees including
Safety Helmet, Safety shoes, dangari and other PPE as per requirement of
the job.
l. Safety audit by ONGC:
ONGC may conduct safety Audits at any stage of project execution and
before taking over the facilities. The audit shall be based on a protocol that
covers elements which can affect the safety during execution or the safe
operation of the facilities in the contractors scope of work. The protocol
shall cover documentation, process hazard analysis, fire detection and
suppression system, lifesaving appliances and escape routes, operating
procedures, pre-startup safety review, safe work practices, safety and shut
down devices, management of change, assurances of quality and mechanical
integrity, emergency response control investigation of accidents, personnel
protective equipments, audit team which could be conducted by the
companys personnel or any agency appointed by the Company for the
purpose, accord full access to site and provide all relevant information,
comply with the observations and recommendations of the audit.

27
SPECIAL TERMS AND CONDITIONS

Definitions:

1.1 Day shall mean a continuous period of twenty-four hours commencing from
00.00 hours at midnight.

1.2 Month means a constituting period, commencing from a particular day in a


calendar month and ending on the day immediately prior to the corresponding
day in the following month.

1.3 Week means a continuous period of seven days commencing from and
inclusive of a particular day.

1.4 Writing means any documents duly singed by a person authorized by the
Contractor or ONGC.

1.5 Letter of Award (LOA) or Letter of Acceptance of Bid or Letter of Intent


shall mean an Intimation by a letter / fax that the tender has been accepted
in accordance with the provisions contained in the said letter / fax.

1.6 Engineer-in-Charge shall mean the person nominated from time to time by
ONGC and shall include those who are expressly authorized by ONGC to act
for and on its behalf for operation of this Contract.

1.7 Plant means the complete gas dehydration plant to be set up by the
Contractor for dehydration of Natural Gas in accordance with the Contract
document.

1.8 Work or Works shall mean and include all works to be executed and all
services to be rendered in accordance with the Contract and shall include all
things, matters, structures and facilities at be engineered, designed,
procured, fabricated, installed, inspected, tested, hooked-up, pre-
commissioned, made good and operated / maintained / run by the Contractor
for ONGC including all incidental and Temporary Works.
1.9 Commissioning means the operation of all the systems of the plant on full
load after completion of erection, including clearance and removal of all
undesired materials from the Site.

1.10 Battery Limit(s) shall mean the limits of land designated by ONGC for the
said plant and facilities.

1.11 Annex / Annexure shall mean annexure attached to this Contract and they
shall form an integral part of this Contract.

1.12 Sub-Contract means any third party employed for the procurement, supply,
transportation, engineering, civil works, inspection, erection, testing,

28
commissioning services, operation, maintenance etc. covered under this
contract.
1.13 Specification shall mean all directions, various technical specification,
provisions and requirements attached to the Contract which pertain to the
method and manner of performing the Work or Works and the materials to
be furnished under the Contract for the Work or Works, as may be amplified
or modified by any drawing in the performance of the Contract in order to
provide the unforeseen conditions or in the best interests of the Work or
Works. It shall also include the latest edition including all addenda /
corrigenda or relevant Indian Standard Specifications and other relevant
codes.
1.14 Temporary Works shall mean all temporary works of every kind required in
/ or about the execution, completion or maintenance of the Works.

1.15 Site shall mean the land and waters and other places on, under in or through
which the Works are to be carried out and any other lands, water or places
approved by ONGC for the purpose of the Contract together with any other
place designated in the Contract as forming part of the Site.
1.16 Price Schedule shall mean the schedule of rates annexed to the Contract
and shall include any remuneration payable to the Contractor for any work,
determined in accordance with the conditions herein.

1.17 Contracted Quantity of Gas means the gas dehydration capacity specified
in the Scope of Work for dehydration of Natural Gas in accordance with
Contract Documents, in SM3/day (i.e. volume flow rate expressed in cubic
meter per day at an absolute pressure of 1.013 Bar and a temperature of
15.556 C).
1.18 Mobilization Period means the period specified in the time schedule for
mobilization and commissioning of Plant so as to commence dehydration of
natural gas of Contracted Quantity of Gas at the specified conditions.

1.19 Operation Period means the period specified in the time schedule during
which the natural gas shall be dehydrated and delivered on continuous basis
round the clock on all days in accordance with the Contract Document.

2.0 INTERPRETATIONS:

2.1 The several Contract Documents forming part of the Contract are to be read
together as a whole and are to be taken as mutually complementary.
2.2 Should there be any doubt or ambiguity in the interpretation of the Contract
Documents or error, omission or contradiction therein or in any of them, the
Contractor shall, prior to commencing the related work, apply in writing to the
Engineer-in-Charge for his decision in resolving the issue, ambiguity or
contradiction or correction of the error or omission, as the case may be.
Should the Contractor fail to apply to the Engineer-in-Charge for his decision,

29
as aforesaid prior to commencing the related work, the Contractor shall
perform the said work at his own risk.

2.3 The decision of the Engineer-in-Charge on any application under clause 3.2
hereof shall be in writing and shall be final and binding on the Contractor in
this behalf.

2.4 No verbal agreement, assurances, representations or understanding given


by any employee or officer of ONGC or so understood by the Contractor,
whether given or understood before or during or after the execution of the
Contract shall anyway bind ONGC or alter the Contract Documents unless
specifically given in writing and signed by the Engineer-in-Charge on behalf
of ONGC and given as an agreed variation to the relative term(s) in the
Contract Documents.

2.5 Clause headings given in this or any other Contract Document are intended
only as general guide for convenience in reading and segregating the general
subject of various clauses.

2.6 All headings and marginal notes to the clauses of the General Terms and
Conditions of Contract or of the specifications or any other Contract
Documents are solely for the purpose of giving a concise indication and not
the summary of the contents thereof and they shall never be deemed to be
part thereof or be used in the interpretation or construction thereof.

2.7 SINGULAR/ PLURAL WORDS: In these contract documents, unless


otherwise stated specifically, the singular shall include the plural and vice-
versa wherever the context so requires, words imparting persons shall
include relevant corporate companies / registered associations / body of
individuals / firm or partnership.

2.8 Reference to section, clause and article shall have the same meaning.

3.0 CONTRACTORS GENERAL OBLIGATIONS:

3.1 Contractor shall obtain his own information.


The Contractor shall be deemed to have examined the contract documents,
to have obtained his own information in all matters whatsoever that might
affect the carrying out of the Works at the scheduled rates and to have
satisfied himself to sufficiency of his contract documents. Any error in
description or Quantity or omission there from shall not vitiate the Contract or
release him from executing the Work comprised in the Contract according to
Contract Documents at the scheduled rate. He is deemed to know the scope,
nature and magnitude of Works and the requirement of the materials and
labour and the type of work involved, etc and as to what all works he has to
complete in accordance with the Contract Document whatever be the
defects, omissions or errors that may be found in the Contract Document.
The Contractor shall be deemed to have visited surroundings, to have

30
satisfied himself to the nature of all existing structures, if any and also as to
the nature and the condition of Railways, Road, bridge and culverts, means
of transport and communication whether by land, water or air and as to
possible interruptions thereto and the access to and egress from Site, to have
made enquiries, examined and satisfied himself as to the Sites, for obtaining
sand, stones, bricks and other materials, the accommodation as whatever
required, depots and such other buildings as may be necessary for executing
and completing their works, to have made local independent enquiries as to
the sub-soil, sub-soil water and variations thereof, storms, prevailing winds,
climatic conditions and all other similar matters affecting the Works. He is
deemed to have acquainted himself as to his liability for payment of
government taxes, customs duties and other charges.
Any neglect or failure on the part of the Contractor in obtaining necessary
and reliable information upon the foregoing or any other matters affecting the
Contract shall not relieve him from any risks or liabilities or the entire
responsibility from performance & execution of the Works at the Scheduled
rates and time strictly in accordance with the Contract Documents.

3.2 Forfeiture of Security Deposit :

Whenever any claim against the Contractor for the payment of a sum of
money arises out of or under the Contract, ONGC shall be entitled to recover
such sum by appropriating in part or whole of the Security Deposit of the
Contractor. In the event of the Security Deposit being insufficient then the
balance shall be deducted from any sum then due or which at any time
thereafter may become due to the Contractor. The Contractor shall pay to
ONGC on demand any balance remaining due.

If the Contractor, Sub-Contractor or their employees shall break, deface or


destroy the property belonging to ONGC or any other agency during the
execution of the Contract, the same shall be made good by the Contractor at
his own expenses and in default thereof, the Engineer-in-Charge may cause
the same to be made good by other agencies and recover the expenses from
the Contractor for which the certificate of the Engineer-in-Charge shall be
final.
All compensation or other sums of money payable by the Contractor to
ONGC and/or recoveries to be made under terms of this Contract may be
deducted from the Security Deposit and/or from any sums which may be due
or may become due to the Contractor by ONGC or on any account
whatsoever and in the event of his Security Deposit being reduced by
reasons of any such deductions as aforesaid, the Contractor shall within ten
(10) days thereafter make good in cash / bank drafts, any sum or sums which
may have been deducted from or realized from his Security Deposit or any
part thereof. No interest shall be payable by ONGC for the sum deposited as
Security Deposit.

3.3 Contractors office at Site :

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The Contractor shall provide and maintain an office at the Site for the
accommodation of his agent and staff and such office shall be open at all
reasonable hours to receive instructions, notices or other communications.
3.4 Time of Performance:
The work covered by the Contract shall commence from the date of issue of
the Letter of Intent and be completed and performed in accordance with Time
Schedule (Annexure-III) in respect of both Mobilization Period and Operation
Period. The Contractor should bear in mind that time is the essence of the
Contract and unless such time is extended pursuant to the provision of clause
No.3.5, the Contractor shall strictly adhere to the Time Schedule as
mentioned in this Contract.
3.5 Extension of Time:
The Contractor shall request for an extension of the time, if any, for
completion of the Work on the grounds of his having been unavoidably
hindered in its execution or any other grounds. He shall apply in writing to
the Engineer-in-Charge within ten (10) days of hindrance on account of which
he desires such extension as aforesaid and the Engineer-in-Charge may, if
in his opinion reasonable grounds have been shown, authorize such
extension of time as necessary or proper which shall be final and binding on
the Contractor. Whenever, such extension is granted by the Engineer-in-
Charge, this would be without prejudice to ONGCs right to impose liquidated
damage as per clause 2.0 of T echnical Part of Special Conditions of Contract
shall not put up claims for waiving such liquidated damages, if any.

3.6.1 Contractor Remains Liable to Pay Compensation even if action is not


taken:
In any case in which any of the powers conferred upon ONGC and shall have
become exercisable and the same had not been exercised, the non-exercise
thereof shall not constitute a waiver of any of the conditions hereof and such
powers shall notwithstanding be exercisable in the event of any further case
of default by the Contractor for which by any clause or clauses hereof he is
declared liable to pay compensation amount to the whole of his Security
Deposit and the liability of the Contractor for the past and future
compensation shall remain unaffected.

3.6.2 Director(s) etc. of ONGC not individually Liable:

No Director or official or employee of ONGC shall in any way be personally


bound or liable for the acts or obligation of ONGC under the Contract or
answerable for any default or omission in the observance or performance of
any of the facts, matters or things which are herein contained.

3.6.3 ONGC - Not Bound by Personal Representation:

32
The Contractor shall not be entitled to any increase in the scheduled rates or
any other right or claim whatsoever by reason of any representation,
explanation or statement on alleged representation, promise or guarantees
given or alleged to have been given to him by any person.

3.7 Contractors Subordinate Staff & Their Conduct:


The Contractor shall ensure that none of the Contractors or Sub-Contractors
agent, sub-agents, assistants, foremen or other employees shall in the
opinion of the Engineer-in-Charge be guilty of any misconduct or be
incompetent or insufficiently qualified or negligent in the performance of their
duties failing which ONGC will have the right to terminate the Contract without
prejudice to any other right or remedy available to it. The Contractor shall be
responsible for the proper behavior of all the staff, foremen, workmen and his
other employees and shall exercise a proper degree of control over them and
in particular and without prejudice to the said generality, the Contractor shall
be bound to prohibit and prevent any employees from trespassing or acting
in any way detrimental or prejudicial to the interest of the community of the
properties or occupiers of land and properties in neighborhood and in the
event of such employees so trespassing, the Contractor shall be responsible
therefore and relieve ONGC of all consequent claims or actions for damages
or injury or any other grounds whatsoever. The decision of the Engineer-in-
Charge upon any matter arising under this clause shall be final.
If and when required by ONGC, all Contractors personnel entering upon
ONGCs premises shall be properly identified by badges or identity cards of
a type acceptable to ONGC which must be worn at all times on ONGCs
premises which shall be obtained from the ONGC by the Contractor through
Engineer-in-Charge, at his own cost.
3.8 Sub-letting of Works:
No part of the Contract nor any share or interest therein shall in any manner
or degree, be transferred, assigned or sub-letted by the Contractor directly or
indirectly to any person, firm or corporation whosoever; without the consent
in writing of the Engineer-in-Charge of ONGC who may give such consent
subject to;
a) The submission of individual Sub-Contract before being entered into to
the Engineer-in-Charge. Any such consent shall not relieve the
contractor from any obligation, duty or responsibility under the contract.
b) The Contractor shall be responsible for performance of all Works and
obligations under the Contract in all respect as if the Sub-Contracting or
sub-letting has not taken place.
c) ONGC may withdraw such permission at any time and ask the
Contractor to terminate Sub-Contracts.
3.9 Pollution & Contamination:

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With regard to liabilities on account of pollution and contamination which
originate from spills of fuel lubricants oil fluids, and garbage in contractor's
possession and control and directly associated with contractors equipment
and facilities, because of contractors incompetence or negligence, ONGC
shall give contractor written notice specifying the causes and its
dissatisfaction and contractor shall rectify the same within the time specified
by ONGC failing which ONGC shall have right to temporarily suspend the
operation and recover for non operation of the plant till such time the situation
is rectified to the satisfaction of ONGC. If the situation is not rectified &
continues for a period up to 30 days or repeated frequently, then ONGC shall
have the right to terminate this contract by giving 30 ( thirty ) days advance
written notice.

4.0 Terms of Payment:


4.1.1 Billing and Payment:
The payment will become due and payable by ONGC within 21 (twenty one)
calendar days from the date of receipt of Contractors bill / invoice by ONGC,
provided the documents submitted by Contractor are complete and correct in
all respects.
The Contractor shall prepare three copies of the monthly invoice with all the
required supporting documents and details and submit the said invoice to
Engineer-in-Charge for certification of the said work in above invoice for
approval of the amount payable there under.
Recoveries shall be made from above payments as per the provisions of the
Contract and as may be considered necessary by ONGC.
ONGC shall arrange certification and approval of invoice within 07 days of
receipt thereof by Engineer-in-Charge objecting to any portion of the Work
covered by the said invoice.
ONGC shall arrange payment to the Contractor of the undisputed amount of
bill after making deductions as per provisions laid down in the contract and
as per the laws prevailing from time to time within 30 days of the receipt of
the invoice by Engineer-in-Charge.

In the event of ONGC noticing at any time that any amount has been
disbursed wrongly to the Contractor or any other amount is due from the
Contractor to ONGC, ONGC may without prejudice to its rights recover such
amount by other means, deduct such amount from any payment falling due
to the Contractor. The Contractor shall have the right to receive the payment
under subsequent invoice for any amount that has been omitted in previous
invoice by mistake on the part of ONGC or the Contractor.
ONGC shall not be responsible or obliged for making any payment or any
other related obligations under this Contract to the Contractors Sub-
Contractor / Personnel or Vendors. The Contractor shall be fully liable and
responsible for meeting all such obligations and all payments to be made to

34
its Sub-Contractors / Personnel / vendors and any other third party engaged
by the Contractor in any way connected with the discharge of the
Contractors obligations under the Contract and in any manner whatever.
4.1.2 Payment Authority :
The payment due to the Contractor shall be made by Manager (F&A)-Bills,
Surface Team, ONGC, Rajahmundry Asset, Rajahmundry.
4.2 Deleted.
4.3 Price Schedule & Contractors Remuneration:
4.3.1 The prices to be paid by ONGC to the Contractor for all the services to be
rendered by and for the whole of the Work to be done and for the performance
of all the obligations undertaken by the Contractor under this Contract shall
be ascertained by the application of the respective schedule of prices / rates
( the inclusive nature of which is more particularly defined by way of
application but not of limitations, with the succeeding sub-clause of this
clause ) and payment to be made according to the quantity of Natural Gas
actually dehydrated and delivered at the Battery Limit and certified by the
Engineer-in-Charge. The sum so ascertained shall, except only as and to the
extent expressly provided here in, constitute the sole and inclusive of
remuneration of the Contractor under the Contract and no further or other
payment whatsoever shall be or become due or payable to the Contractor
under the Contract.

4.3.2 The prices / rates shall remain firm till the expiry of the Contract and shall not
be subjected to any escalation. Schedule of prices / rates shall be deemed
to include and cover all costs, expenses and liabilities of every description
and all risks of every kind to be taken in executing, the Work. The Contractor
shall be deemed to have known the nature, scope, magnitude and the extent
of the works, services and materials required though the Contract Document
may not fully and precisely furnish them. He shall deemed to have made such
provision in the schedule of prices / rates as he may consider necessary to
cover the cost of such items of Work, services and materials as may be
reasonable and necessary to complete the Work. The opinion of the
Engineer-in-Charge as to the items of Work which are necessary and
reasonable for performance of Work shall be final and binding on the
Contractor, although the same may not be shown on or described specifically
in Contract Documents.

Generality of this present provision shall not be deemed to cut down or limited
in any way because in certain cases it may and in other cases it may not be
expressly stated that the Contractor shall do or perform a work or supply
articles or perform services at his own or without addition of payment or
without extra charge or works to the same effect or that it maybe stated or
not stated that the same are included in and covered by the schedule of
prices / rates.

4.3.3 Schedule of Prices / Rates to Cover Royalties, Rents & claims:

35
The Price Schedule shall be deemed to include and cover the cost of all
royalties and fees for the articles, processes, protected by letters patent or
otherwise incorporated in or used in connection with the Works, also all
royalties, rents and other payments in connection with obtaining materials of
whatsoever kind for the Works and shall include an indemnity to ONGC which
the Contractor hereby gives, against all actions, proceedings, claims,
damages, costs and expenses arising from the incorporation in or use on the
Works of any such articles, processes or materials, octroi or other municipal
or local body charges if levied on materials, equipments or machineries to be
brought to Site for use on Work.

4.3.4 Taxes & Duties to be paid:

No exemption or reduction of quay or any port duties, transport charges,


stamp duties or Central or State Government or local body or municipal taxes
or duties taxes or charges (from Government or any other body ) whatsoever,
will be granted or obtained, all of which expenses shall be deemed to be
included in and covered by the Price Schedule. The Contractor shall also
obtain and pay for all permits licenses or other privilege necessary to
complete the Work.

4.3.5 Schedule of Rates to cover Risks of Delay / Hindrance:

The Price Schedule shall be deemed to include and cover the risk of all
possibilities of delay and interference with Contractors conduct of Work
which occur from any cause including orders of ONGC in the exercise of its
powers and on account of extension of time granted due to various reasons
and for all other possible or probable causes of delay.

4.3.6 Liability of Taxes & Duties & Statutory Levies etc:

The Contractor agrees to and does hereby accept his full and exclusive
liability for payment of all taxes, duties, octroi, royalties, fees etc., present and
future including but not limited to Corporate Income Tax, Personal Tax, Sales
Tax, Excise duty, Customs duty, Work Contract tax, service tax etc. that may
be levied or leviable from time to time on Contractor, its Sub-Contractor and
their personnel in respect of Works, services and materials and all
contributions, and taxes for unemployment, compensation, insurance and old
age pensions or annuities now or hereinafter imposed by any Central or
State Government authorities and the Contractor shall be responsible for the
compliance with all obligations and restrictions imposed by the labour laws
or any other law affecting employer -employee relations and the Contractor
further agrees to comply and to secure the compliance with all Sub-
Contractor, with all applicable Central, State, Municipal and local laws and
regulations and requirements of any Central, State or Local Government
agency or authority.
The Contractor shall bear all Indian Taxes including but not limited to taxes on
income levied on the Contractor on account of payment received by it from

36
ONGCC for Work done under this Contract, its Sub-Contractors and personnel
taxes, if any levied shall be to Contractors account.
It shall be the responsibility of the Contractor to submit to the concerned Indian
authorities the returns and all other connected documents required for this
purpose.
The Contractor shall also provide ONGC such information, as it may be
required in regard to the Contractors income and expenditure under the
Contract for this purpose. If it is so required by applicable law in force at the
time of payments, ONGC will deduct income tax at the rates in force from the
amounts due to the Contractor and pay to the income tax authorities directly.

ONGC shall deduct at source any other taxes, levies or duties imposed by
Central Govt. / State Govt. / Statutory Authority at the applicable rates - present
or future from the sums payable to the Contractor.

The contractor shall indicate percentage and component of Service Tax, if any,
separately. Service Tax component shall not be included in the quoted price.

The Contractor further agrees to defend, indemnify and hold ONGC harmless
from any liability or penalty which may be imposed by the Central, State or
Local authorities by reason of any violation by Contractor or Sub-Contractor
or their personnel of such laws, regulations or requirements and also from all
claims, suits or proceedings that may be brought against ONGC arising under,
out of or by reasons of the Work provided for by this Contract, by third parties,
or by Central or State Government or local authority or any administrative sub-
division thereof.

4.4 Insurance:

Contractor shall at his own expense carry and maintain insurance with
reputable insurance companies as follows:

a) Workmens Compensation & Employers Liability Insurance :


Insurance shall be effected for all the Contractors employees engaged in
the performance of this Contract, if any of the Work is sub-let, the
Contractor shall require the Sub-Contractor to provide workmens
compensation and employees liability insurance for the latters employees,
if such employees are not covered under the Contractors insurance.
b) Fire & Other Insurance :
The Contractor shall at his own cost, insure the Works and keep them
insured until the virtual completion of the Contract against loss or damage
by fire, riots and civil commotion.

c) Any other Insurance Required Under Law or required by ONGC :


Contractor shall also carry and maintain any and all other insurance, which
may be required under any law or regulations from time to time.

37
d) Transit Insurance :
In respect of all items to be transported by Contractor to Site of Work, the
cost of transit insurance should be borne by the Contractor and the prices
indicated in the Price Schedule shall be inclusive of this cost.

e) Third Party Liability Insurance :


The Contractor shall take third party liability insurance with suitable
coverage so as to indemnify ONGC against all types of risks for the Works
being carried out by other agencies at the Site.

f) Damage to Property :
The Contractor shall be responsible for making good to the satisfaction of
the Engineer-in-Charge any loss or any damage to all structures and
properties belonging to ONGC or being executed or procured or being
procured by ONGC or of the other agencies within the premises of all the
Work of ONGC, if such loss or damage is due to fault and / or the
negligence or other acts or omission of the Contractor or of his Sub-
Contractor, agent, employees.
The Contractor shall indemnify and keep ONGC harmless of all claims for
damages to property other than of ONGC and property arising under or
by reason of this Contract if such claims result from the default and / or
negligence or other acts or omission of the Contractor, agents,
representatives or Sub-Contractor.
5.0 Labour Laws to be applied:

5.1.1 The Contractor shall make the payment of wages to every worker directly or
through other person duly authorized by him in this behalf in the presence of
the authorized representative of the Principal Employer on a working day
within the work premises and during the working time and on a date notified
in advance, without any deduction of any kind except those specified by the
Central Government, by general or special order in this behalf or permissible
under the payment of wages Act, 1936 All wages shall be paid in current coin
or in currency or in both. Wages of every person employed as contract labour
by the contractor shall be paid before the expiry of the seventh day of the last
day of the wages period in respect of which the wages are payable.
5.1.2 The Contractor agrees, at its own cost, to comply with the provisions of all
laws including all labour laws, rules, regulations and notifications issued
thereunder, whether Central or State or local, if applicable to him and to the
contract labourers employed by him or to this contract, from time to time and
shall submit documentary evidence in this regard to the entire satisfaction of
ONGC. Payment will be released every month only after contractor submit
necessary documentary evidence of having discharged all statutory
obligation pertaining to the contract.
5.1.3 The contractor shall obtain license in the prescribed format under the
Contract Labour (Regulation & Abolition) Act 1970 read with Rules framed

38
thereunder and furnish the same to ONGC within fifteen days of receipt of
letter of intent but before the signing of formal agreement, failing which the
letter of intent / contract shall be cancelled / terminated without any further
notice in this regard and / or performance bank guarantee shall be forfeited
without prejudice to any other rights and remedies available to ONGC under
the contract.
5.2 Payment of Wages to Workmen:
The Contractor shall pay the wages directly to the workmen without any
intervention of Jamadars / Thekedars. The Contractor shall also ensure that
no amount by way of commission or otherwise is deducted or recovered by
the Jamadars / Thekedars from the wages of workmen.

5.3 Contractor to Indemnify ONGC:


The Contractor shall indemnify ONGC and every Director, Officer and
employee of ONGC, claims, demands, costs and expenses whatsoever
arising out of or in connection with the matters referred to in clause 8.0 and
its sub clauses and elsewhere and all actions, proceedings, claims,
demands, costs and expenses which may be made against ONGC for or in
respect of or arising out of any failure by the Contractor in the performance
of his obligations under the Contract. ONGC shall not be liable for or in
respect of any demand or compensation payable by law in respect or in
consequence of any accident or injury to any workman or other person in the
employment of the Contractor or his sub-Contractor and Contractor shall
indemnify and keep indemnified the ONGC against all such damage and
compensation and against all claims, damages, proceedings, costs, charges
and expenses whatsoever in respect thereof or in relation thereto.

5.4 Payment of Claims & Damages:

Should ONGC have to pay any money in respect of such claims or demands
as aforesaid, amount so paid and costs incurred by ONGC shall be charged
to and paid by the Contractor and the Contractor shall not be at liberty to
dispute or question, the right of ONGC to make such payments
notwithstanding the same may have been made without his consent or
authority or in law or otherwise to the contrary.

5.5 In every case in which by virtue of the provisions of section 12, sub-section
(1) of Workmens Compensation Act, 1923 or other applicable provisions of
Workmens Compensation Act or any other Act, ONGC is obliged to pay
compensation to a workman employed by the Contractor in execution of the
Work, ONGC will recover from the Contractor, the amount of the
compensation so paid, and without prejudice to the rights of ONGC under
section 12 subsection (2) of the said Act, ONGC shall be at liberty to recover
such amount or any part thereof by deducting it from the security deposit or
from any sum due to the Contractor whether under this Contract or otherwise.
ONGC shall not be bound to contest any claim made under section12, sub
section (1) of the said Act, except on the written request of the Contractor

39
and upon his giving to full security for all costs for which ONGC might become
liable inconsequence of contesting such claim.

5.6 Rules & Regulations on Labour Health:

In respect of all labour directly or indirectly employed in the Works for the
performance of the Contractors part of this Agreement, the Contractor shall
comply with or cause to be complied with all the Rules and Regulations of
the local sanitary and other authorities or as framed by ONGC from time to
time for the protection of health and sanitary arrangements for all workers.

5.7 ONGC has adopted fair wage policy and the same is applicable for this.
Benefits under fair wage policy to employees of contractor are
Applicable minimum wage + 35% of min wage as additional wage +
Rs.50/- per working day + statutory EPF @ 12% of wages, on monthly
wage limit of Rs.6500/- + statutory ESI benefit (where applicable) +
statutory annual bonus @ 8.33% + statutory leave with wages @18 days
per year
Group insurance cover from LIC to the extent of Rs.5.00 lakh per
individual , with double accident benefit to be obtained by the contractor
Group gratuity cover through LIC to be obtained by the contractor as per
the terms of the model contract agreement and transferred to the
succeeding contractor in case of award of new contract for the service(s).
The bidder must furnish an undertaking (As per format Appendix-VII) with the
bid that the bidder shall comply with the Fair Wage Policy adopted by ONGC
and abide by the terms and conditions for implementing the said policy in
letter and spirit.
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40

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