VDC Agreement
VDC Agreement
BY
ARTICLES OF AGREEMENT
1. COST OF CONTRACT:
The total cost of the work (here in after referred to as the “Total b cost”) is Rs. 3.026 Lakhs
(Rupees Three lakh Two thousand six hundred only)
As reflected in Schedule ‘A’
3.2 These Successful User Group Leader should however pay the EMD i.e., the EMD calculated
at 2.5% at the time of Ist bill payment for the work costing up to Rs. 10.00 Lakhs Ist bill or
Unconditional and irrevocable bank guarantee as per the standard format to be valid for a
period of 36 months (i.e. period of completion plus defect liability period of 24 months)
And whereas the contractor has agreed to the retention by the Government of the
carnets money of Rupees……………………………………………………………………
And whereas the contractor has also signed the copy of the Andhra Pradesh standard
specification and addenda volume there to maintained in the ………………………………...
Irrigation Division, Mulugu office in acknowledgement of being bound by all the conditions
of the clauses of the standard preliminary specifications and all the standard specifications
for items of works described by a standards specification number is schedule ‘A’
And Whereas contractor has agreed to executive upon and subject to the conditions
set forth in the preliminary specification of the Andhra Pradesh standard specifications and
such other conditions as are contains in all specification forming part of this contract (herein
after referred to as the said conditions the work shown upon the drawing and described in
the said specifications and set for the in Schedule ‘A’ as the probable Quantities and
specification describing the work to be done
4.2 In the event of any misuse of funds, the first shall have the right to freeze the bank
account of the second party after such enquiry as may be deemed necessary.
3. COMPLETION TIME:
The work should be completed in one months/days from the date of conclusion of this
agreement in exceptional circumstances, the time period stated in this clause may be
extended in writing mutual consent of both the parties.
4.1 The first party shall be responsible for providing regular and frequent supervision and
guidance to second party for carrying out works as per specifications. This will include
written guide lines and regular site visit of the authorized personnel of the first party For
checking quality of material and construction to ensure that it is as per the norms.
6.2 The first party shall have the right to instruct to stop or suspend the construction at any
stage if there is any deviation from the specification of violation of any of the terms of this
agreement
7. QUALITY CONTROL.
There should be a separate quality control inspection to the execution of work done a
certificate has to be obtained for every payment from the Executive Engineer/Q&C
Division Warangal as per the Chief Engineer, Minor Irrigation, Hyderabad instruction
issued earlier.
a) Take up the work and arrange for its completion within the time period stipulated
b) Employee suitable skilled persons to carry out the works
c) Make labour payment as per the schedule of labour payments for different items of
work duly followed the guide lines of F.D.R. programme
d) Ensure that all material required and procured for the works are of good quality (with
ISI Certification mark for the manufactured items obtained from the approved
quality)
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e) Regularly supervise and monitor the progress of work
f) Abide by the Technical suggestion/directions of supervisory personnel of the first
party regarding construction.
g) Be responsible for bringing any discrepancy to the notice of the representative of the
first party as soon as noticed by it.
h) Ensure that the work is carried out in accordance with specifications Drawing and
also within the total sanctioned amount with out any cost escalation.
i) Ensure that there is no mis-utilisation of the money/materials during the
construction.
If any dispute arises between the two parties relating to any aspect of this agreement. The
party shall first attempt to settle the dispute through mutual and amicable consultation if the
dispute is not settled through such consultation, the matter may be referred for settlement to
the Executive Engineer, Irrigation Division, Mulugu and higher authorities and the 1st party
has right to terminate the Agency on failure to execute the work as per specification and
according the time fixed in the clause 59 and 60 of APDSS and also the 1st party can
conclude the agreement with any other job works for the balance work to be done.
26.17 As per contract labour (Regulation and abolition Act, 1970) the User Group has to furnish
the license obtained from the Licensing Officer of the Labour Department along with the
tender or at the time of Agreement.
For sales tax/tax on work contract contractors are given an option to up for the composite
schemes under sections 5 (g) of the A.P.G.S.T. Act and these opting for it are subject to the
deduction of 4% at source on the total value of the contract. In such case the department
will not insist on production of clearance certificate and no assessment of tax will be needed
and regarding AP.VAT 2005 may be proposed according to the guidelines issued at the time
of payments.
26.19 In order to prepare realistic estimate, the following provisions are added in the estimate.