STANDARD
CONDITIONS OF CONTRACT GOVERNING (Short Title : INSCOCIS-96) Definitions 1.
The ‘Purchaser’ is the President of India acting through
the authority issuing the purchase order. Application 5.
These standard conditions of contract (SCOC) shall apply to all contracts
concluded by the Director of Procurement, Indian Navy or his representatives.
The terms contained in the SCOC may be modified by the contract concluding
authority to the extent stated in the tender enquiry or in the acceptance
of tender. 6. The Purchaser may reject a tender without assigning reason. 7. The Purchaser may not accept the lowest tender. Contract 8. The contract shall deem to have been concluded by the ‘acceptance of tender’ issued in the form of a purchase order. The acceptance may be communicated to the Supplier by fax or registered/speed post. The Supplier is required to acknowledge receipt of the acceptance within 7 days. However, non-acknowledgement on the part of the Supplier does not affect the ‘acceptance of tender’ or the conclusion of contract. 9. All communications by the Purchaser to the Supplier will be deemed to have been made if sent by fax, telex or registered/speed post to the number or address furnished by the Supplier. 10. The Supplier shall not alienate his rights and responsibilities under the contract to any one. 11. The Purchaser shall not be liable for any obligation, monetary or otherwise, that has not been expressly stated in the contract. 12. The Supplier shall deem to have indemnified the Purchaser against all claims by third parties relating to the contract, including but not limited to intellectual property rights. 13. The Supplier shall not disclose any information provided to him by the Purchaser except to the extent required to execute the contract. Specifications 14. The specifications governing the item to be supplied will be provided with the tender enquiry. A quote received against a tender enquiry shall be deemed to commit the Supplier to those specifications, unless explicitly stated otherwise in the quote. 15. Where an aspect is not covered in the specifications, the Supplier shall be required to conform to the highest quality standards that he had provided in the past to the Purchaser or to any other buyer. 16. The specifications contained in the tender enquiry may be modified if requisite specifications are not available, by mutual consent, before the contract is accepted. Price 17. When quoting against a tender enquiry, all components of the price such as the basic price and different types of taxes and charges shall be listed separately. Where ‘rates’ are applicable, they shall be explained clearly. 18. Prices quoted in the tender shall be fixed. In exceptional circumstances where a price variation clause becomes unavoidable, the conditionalities of price variation must be explicitly stated. 19. The Purchaser shall not be liable for any payment that has not been included in the tender. 20. The Supplier should quote to the Purchaser the lowest price at which he is supplying the item of similar quality to other buyers. Security Deposits 21. The Supplier shall make a security deposit of 2.5% of the order value, towards due performance of the contract, in the form of a bank guarantee in favour of he President of India, within 30 days of he issue of the purchase order. The security deposit shall be refunded after 90 days from the date of receipt and acceptance of the last consignment at the consignees premises, provided no claims against he contract are outstanding. 22. The Purchaser, based entirely on his judgement, may appropriate the security deposit o make deductions from it should the Supplier fail to discharge any contractual obligation. Inspection 23. An item shall be inspected as specified in the purchase order. Normally, items shall be inspected before dispatch from the Supplier’s premises. The inspection may be in stages if so stipulated in the contract. 24. The decision of the Inspector with regard to when, how and where the inspection is carried out shall be binding on the Supplier. The Supplier shall bear all expenses in connection with the inspection including those of outside testing, but excluding those incurred on the Inspector by the Purchaser. The Supplier shall have no claim on the Purchaser on matters arising out of inspection. Packing 25. It shall be the Supplier’s responsibility to so pack the consignment that it arrives undamaged at the consignee’s premises. The stores should be properly preserved before packing. Each package must contain a packing note listing the contents in detail. Consignments must be palletized. Delivery Documents 26. As soon as a consignment is despatched, the Supplier should forward to the Purchaser copies of all documents concerning delivery and payment, by speed post or courier. A duplicate set must accompany the consignment if delivery is made by road. Delivery 27. The delivery, unless otherwise specified in the contract, shall be by road at the consignee’s premises. The delivery shall be made on or before the date stipulated in the contract. Extension of the delivery date will be deemed to have been made only if communicated in writing by the Purchaser. Unless otherwise stated in the purchase order, the delivery shall be deemed to have been made only if the consignment had been inspected by an Inspector prior to dispatch. Consignee’s Right of Rejection 28. Notwithstanding the fact that an item may have been inspected prior to dispatch, the consignee will have the right to reject it, in whole or part, if it is observed that the item supplied does not conform to the specifications or has been damaged. Such rejection shall be communicated to the Supplier within 30 days of the item reaching the consignee’s premises. 29. If an item is rejected , the Supplier is required to replace the rejected item within a period determined by the Supplier, failing which he shall make financial restitution based on the order value. If the Supplier does not remove the rejected item from Purchaser’s premises within the period stipulated by the Purhaser, which shall not be less than 45 days, the Supplier shall have no claim on the rejected items and the Purchaser shall be free to dispose them as he deems fit. e may, if he so chooses, dispatch the items to the Supplier at the expense and risk of the Supplier. Payment 30. Payment will be made by the Supplier by the concerned Controller of Defence Accounts or any of the offices designated after the item has been accepted as satisfactorily received by the consignee. The payment will normally be made within 30 days of such acceptance of bills. 31. In case a consignment is contracted to be dispatched by rail, the Purchaser shall pay 95% of the price to the Supplier submitting the inspection note and clear railway receipt. The remaining 5% shall be paid after delivery acceptance. 32. If any advance payment is made to the Supplier by the Purchaser before the delivery of the item, the Supplier shall provide a bank guarantee equal to the amount paid for a period valid upto 30 days beyond the fulfillment of the contract. Liquidated Damages 33. In the event of the Supplier’s failure to deliver on time, the Purchaser at his sole discretion, and not by way of penalty, may deduct from the payment 1%of the contracted price of the undelivered stores for each month or part thereof till the item is delivered, subject to a maximum of 5% of the price of the stores not delivered on time. Risk Purchase 34. Should the Supplier fail to deliver an item within the contracted delivery period or repudiate the contract before the delivery date, the Purchaser, without prejudice to his right to recover damages for breach of contract, may cancel the contract in part or in whole and many purchase elsewhere, on the account and at the risk and cost of the Supplier, the item not delivered, within 12 months of the breach of contract. He may purchase another item of similar general description, in case the item exactly conforming to the particulars of the contracted item is not readily procurable. The Purchaser shall be entitled to recover from the Supplier all costs incurred by the Purchaser during the Risk Purchase that are in excess of the costs he would have had to incur as per the original contract. 35. The Purchaser shall have the right to ignore the tender of he original Supplier during the Risk Purchase. The manner of carrying out the Risk Purchase shall be entirely at the discretion of the Purchaser shall serve a notice of such purchase. However , the Purchaser shall serve a notice of such purchase on the defaulting Supplier. Warranty 36. The supplier is deemed to have guaranteed, the purchaser that the item supplied by him shall continue to confirm to the specifications and quality standards prescribed in the the contract for a period of 12 months from the date the item has reached the consignee’s premises, not withstanding the fact that the item may have been inspected and accepted. 37. Should the item be found not conforming to the required specifications and quality during the 12 months period, the Supplier shall, at the sole discretion of the Purchaser, either replace the item or make full financial restitution. If the item is replaced, the above mentioned conditions of warranty shall also apply to the replaced item. Short Clossure or Termination 38. Ther contract may be shortclosed or terminated, at the discretion of the Purchaser, on the following grounds; ·
The Supplier fails to deliver the item by the contracted delivery date. Force Majeure 39. Each contracting party shall be excused for the non performance or delayed performance of this contractual obligation to the extend it is caused by the supervention of Force Majeure, provided that the party so effected notifies the other party immediately. Force Majeure shall cover fire, natural disasters, war, civil strife, strike, sabotage, epidemic and such other occurrences beyond the control of the party. In the event the performance of contract being delayed beyond 60 days for reasons of Force Majeure the Purchaser may terminate the contract with out prejudice to either party. Validity 40. The standard conditions of contracts stipulated hereunder, except to extend agreed to be modified by the Purchaser in writing, shall supersede conditions stipulated by the Supplier. Arbitration 41. In the event of any dispute arising out of the contract, it shall be referred to the sole arbitrator, Secretary, Ministry of Defence, Govt. of India or his nominee. The award of the arbitrator shall be final and binding on both parties to the contract. Law 42. The contract shall be governed by the laws of India. The contract shall be deemed to have been made at the place from where the purchase order is issued and only the courts of that place shall have jurisdiction to decide on any dispute arising out of the contract |