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Showing contexts for: engineering contract in A.K. Das Associates Limited vs Odisha Power Transmission on 2 December, 2022Matching Fragments
2.1 As per the Instruction to Bidder (ITB), a joint venture or consortium of two qualified firms as partners can bid in the tender. Accordingly, the petitioner entered into a joint venture agreement with M/s Siemens Limited and participated in the tender process, besides seven other bidders including opposite party no.4-M/s Bharat Heavy Electrical Limited (BHEL), pursuant to the NIT No. 36/2020-21 dated 24.12.2020 under Annexure-2. 2.2 Under clause-4.1.1(i) of the NIT it was provided that to be qualified for the tender, the bidder must have successfully executed and commissioned two numbers of 400 KV or higher voltage class GIS (SF6) Grid sub-station on turnkey contract basis including Engineering, Design with Supply, Erection and Commissioning and the said work should have been completed during the last seven years reckoned from the date of the opening of bid in India. Opposite party no.4-M/s Bharat Heavy Electrical Limited (BHEL) in its bid submitted the documents in the Schedule-
4.1.1 The bidder, as a Principal Contractor must have successfully executed and Engineering, Design, Erection and commissioned of:
(i) Two nos. of 400 KY or higher voltage class GIS (SF6) Grid sub-station with minimum 3 (Three) Bays in each S/S on Turnkey Contract-
// 28 //
(ii) Erection and Commissioning of at least one no.
of ICT of capacity 315 MVA (400/220 KV) or above.
(iii) Must have successfully executed and Commissioned of Two nos. of 400 KV or higher voltage class Bay (AIS) on Turnkey Contract basis including Engineering, Design with Supply, Erection and Commissioning.
8.10 In Hudson's Building and Engineering Contracts, 11th Ed., para 3.029 at p. 428, the essential conditions of a turnkey contract are enumerated as under :
// 42 // "Thus, in these contracts the essential feature is that the owner does not employ his own professional advisers to produce the design of the building or project which he requires. Either by negotiations or by outline specification to tendering contractors, the owner makes known his requirements and the contractor then produces the design, in the form of drawings, a specification and sometimes schedules of rates to cover possible variations. Bills are not usually used in such contracts, which will almost invariably be lump 'sum, since clearly there would be unacceptable pricing risks for an owner if bills were to be prepared by a contractor for use in a measured contract....."
8.11 In FIDIC- An analysis of International Construction Contracts (Edited by Robert Knutson, p.
127-28, it has been stated :
"In India the concept of Turnkey is understood in the same way as it is in most of the other countries. Generally speaking, it relates to that aspect of Construction Con-tracts where the contractor takes 'complete responsibility' for an engineering project. Complete responsibility would include furnishing of all plant, labour materials, supplies, equipment transportation, super-vision, technical, professional and other services. The contractor is under an obligation to perform all operations relating to design, manufacture, delivery installation and the design and execution of building or engineering works as contracted. In the case of Turnkey Contract or a product-in-hand con-tract, the general description of a scope of construction may be contemplated by additional contractual provisions, obligating the contractor to effect all construction which, although not specifically described is nevertheless necessary or usual, having regard to the agreed operational capabilities of the works. Such a provision may avoid disputes as to who is to supply all items of material or perform minor items of construction either forgotten during the negotiation or not considered worthy or special mention. The mere use of the term Turnkey may not be sufficient to impose such an obligation on the contract."