SPECIAL TERMS AND CONDITIONS (OFFSHORE)

1.0SCOPE

Supplier’s scope shall include

(a)Design, engineering, manufacture, testing, inspection and supply of equipment & spares with all the auxiliaries / accessories for complete installation and commissioning as per the Purchaser’s technical specifications and drawings for ( Project Name)

(b)supervision of commissioning, supply of spares (as applicable) and provision of documentation in the required number of copies;

(c)supply of commissioning spares along with any special tools and tackle which might be needed during erection, testing and commissioning;

(d)demonstration of performance of the equipment / system on commissioning and performance testing (wherever applicable).

2.0 PRICE AND PRICE BASIS

2.1Total Order value is currency. ______( Only) FOB(named port) inclusive of packing & forwarding to appointed freight forwarder.

The Order Value for the entire scope of work as aforesaid is fixed till completion of this order, including the Performance Test, including extensions, if any and is not subject to escalation for any reason, either explicit however not covered in commercial conditions or implicit, unknown or known to Purchaser, before / during or after the execution of this Order, whatsoever.

2.2Price is inclusive of supervision for erection & commissioning.

2.3Freight : The price is on FOB basis. Onward Freight charges after FOB are to Purchasers account.

3.0 PAYMENT TERMS:

3.1SECURITY BANK GUARANTEE

Immediately on receipt and acceptance of the Purchase Order, the Supplier shall present an unconditional and irrevocable Security Bank Guarantee in format enclosed as Annexure-I hereof equivalent to 10% of the Purchase Order Price to be issued by a reputed International bank towards due and faithful execution of the Purchase Order. The bank guarantee shall be kept valid till the execution of the complete Purchase Order.

3.290% of the total contact price will be paid through LC on pro rata FOB shipment against presentation of the following documents ( 1 Original + 3 copies ) :

  • Commercial invoice;
  • Non-negotiable copies of clean on board Bill of Lading.
  • Phytosanitary/fumigation certificates issued by the relevant authorities of the Seller’s country or non wooden material declaration issued by the manufacturer.
  • Packing list;
  • Certificate of origin issued by the relevant authorities in the exporting country.
  • Seller certificate stating that one set of non negotiable documents have been courier to Purchaser.
  • Final quality inspection certificate by manufacturer.
  • Quality Certificate issued by the manufacturer
  • Dispatch clearance certificate issued by the PURCHASER
  • Supplier Guarantee / Warranty Certificate
  • Copy of telefax transmitted to Purchaser and Insurance Company giving full particulars of dispatch of goods for covering transit insurance

3.3Balance 10% of the total contact price shall be paid through LC on successful commissioning of equipment against presentation of the following documents( 1 Original + 3 copies ):

  • Commercial invoice
  • Performance Bank Guarantee for 10% of value as per Purchasers Format from a reputed international bank acceptable to Purchaser with validity covering the agreed Guarantee / Warranty period
  • Final acceptance certificate issued by the Purchaser.

An irrevocable letter of credit for 100% of order value with usance period of 180 days from reputed international bank acceptable to the SELLER shall be established before 30 days of scheduled order delivery. Payment shall be released through ____ days usance letter of credit. The usance charges /interest charges over & above 30 days shall be borne by the Purchaser.

All Bank charges on account of direct remittances to supplier and opening of LC arising in UAE shall be borne by Purchaser. All bank charges arising outside UAE concerning direct remittances and / or towards L/c shall be borne by Supplier. LC confirmation charges if any shall be borne by Supplier.

4.0 INSURANCE

Comprehensive Insurance Policy no. ______dated has been taken by the Owner / Purchaser from ______to cover transit insurance risk. Kindly fax all dispatch details as mentioned in GTC at below mentioned address :

___ (Contact details of Insurance Company)Tel : Fax : Email :

5.0DELIVERY:

The delivery of all goods shall be completed within _____ days/Months _____ (incoterms) from the Effective Date. or by ______(date)

EFFECTIVE DATE: The effective date of PURCHASE ORDER shall be the date of Purchase Order

6.0 TAXES AND DUTIES

All taxes, duties and local levies payable and charged by Government or local bodies of countries other than UAE / India will be borne and paid by SUPPLIER. The SUPPLIER shall submit a certificate regarding country of origin and copy of Export License, if applicable.

All taxes, duties and local levies payable and charged by the Government and local bodies in------(country where project is located) on the Goods\ Plant are to be borne and paid by the Purchaser. The Supplier shall furnish all commercial and technical data / document / information required for the assessment of taxes, duties and levies. However, any additional costs, i.e. increase in amount of taxes, duties and levies arising from the reasons solely attributable to the SUPPLIER shall be recovered from the SUPPLIER, e.g. for wrong documentation, etc.

7.0 GUARANTEE / WARRANTY

7.1SUPPLIER warrants that GOODS under this PURCHASE ORDER will be new and of recent manufacture, of specified quality and free of all defects and all malfunctions, including latent defects, and compete and fit for the use for the specific purpose for which they are purchased and that they are in strict accordance with the drawings and SPECIFICATIONS, and all relevant codes as applicable to GOODS in India or any sub division thereof.

7.2The equipment warranty shall extend over a period of eighteen (18) months from the date of which the GOODS are successfully commissioned into operation or thirty (30) months from Date of delivery whichever occurs earliler. If repairs or replacements are necessary warranty will be extended/renewed for further period of 12 months from the date of such repair/replacement

8.0 LIQUIDATED DAMAGES (Not being a Penalty)

8.1 PRICE REDUCTION FOR DELAYED DELIVERY

Time is the essence of the contract. The Supplier shall deliver the supplies as per delivery schedule stated in the purchase order. In the event of delay in delivery due to any reasons except Force Majeure as mentioned elsewhere(vide GTC), the order price shall be reduced at the rate of 1% for delay of each full week or part thereof, subject to a maximum of 10% of the total order price. The actual date of last receipt of the consignment at site shall be reckoned as the date for the purpose of levying the liquidated damages (not being a penalty). The Purchaser right to receive liquidated damages shall be without prejudice to the other rights and remedies of the purchaser in law or in contract.

8.2NON-ACHIEVEMENT OF GUARANTEE PARAMETERS

In the event of supplies failing to meet the specified performance criteria, the supplies shall have to be rectified and/or replaced at Purchaser’s discretion by the Supplier at his cost, without any limitations so as to achieve the performance parameters within the minimum acceptable criteria.

The Purchaser, however, retains the option to impose charge towards liquidated damages (not being a penalty) for non-achievement of performance parameters subject to a limit of 10% of purchase order price. This shall be without prejudice to the other rights and remedies of the purchaser in law or in contract

The aggregate liability of the Supplier for liquidated damages (not being a penalty) for late delivery and towards non achievement of Guarantee warranty shall not exceed 20% of the PURCHASE ORDER Price.

In case, in spite of repeated trials the GOODS fail to achieve the minimum acceptable criteria then the GOODS\ Plant stands fully rejected. In such a case PURCHASER has the right to reject the Goods / Plant or negotiate the Price with the SUPPLIER.

In case of rejection of Goods / Plant by the PURCHASER, the SUPPLIER shall be responsible for all cost and expenses towards dismantling and removal of the Goods / Plant from the PURCHASER’s premises within 60 days from the date of such rejection by the PURCHASER

9.0DESPATCH INSTRUCTIONS :

PURCHASER will release dispatch instruction after inspection and acceptance of the ordered items by our inspection department. The supplier will dispatch the items strictly as per our dispatch instructions which shall be sent to you later.

10.0 PACKAGING & MARKING

The Goods shall be properly and carefully packed to avoid any damage during transportation, storage, and handling and protected against corrosion. The charge towards the same is included in the total order value. Any damage / loss due to improper packing shall be to Supplier’s account. Small Items should not be dispatched loose – They should either be in boxes / Skids / Pallets – To facilitate easy handling and storage. Fasteners fittings etc should be packed in cartons of standard nos / units and then further boxed. Please refer to Guidelines for Packing and Marking for further instructions

11.0 EXPEDITING:

11.1The Purchaser may depute its Engineer or appoint an agency for expediting the progress of the job. The Supplier shall extend all help and co-operation to the expeditor and provide access to all the relevant documents, drawings and reports as well as to the shop floors to carry out the assessment satisfactorily. Subsequently, expeditor shall prepare a report jointly with the Supplier and forward to the Purchaser. All post order expediting activities shall be coordinated by :

Mr. Amit Mehta – DGM, ECIL

Email id:

12.0 Billing Schedule ( Only for Package items)

Seller shall submit a detailed billing schedule for acceptance within 10 days of receipt of this Purchase order.

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