Document Fragment View

Matching Fragments

5. The total estimated awarded value of the Contract in favour of the Petitioner was Rs. 6,64,55,55,021/-.

6. Under Clause 4.1 of the FIDIC Conditions read with COPA, Petitioner was permitted to sub-contract the work, awarded to it by NTPC. Petitioner, thereafter, subcontracted the work in respect of Sections 5, 8 & 9 to the Respondent herein and issued a Letter of Award on 10.03.2004 (hereinafter referred to as „LOA‟). Value of work, so awarded was Rs.2,32,55,61,050/- i.e. 12% less than the amount at which these Sections of work were awarded by NTPC to the Petitioner. Under the LOA the scope of work to be executed by the Respondent included:

7. Certain Provisions of the LOA which are necessary for the present petition are as under:

i. "Clause 3.2 of the Letter of Award required that the scope of work subcontracted to the Respondent/Claimant be completed in accordance with the specifications, terms and conditions contained in the FIDIC Conditions read with the NTPC COPA. Further, Clause 14 required the Respondent/Claimant to ensure that the work is completed in accordance with the Technical Specifications prescribed by NTPC.
ii. Clause 4 provided that the subcontract was for a total consideration of Rs. 232,55,61,050. Clause 5 further provided that this consideration was subject to price adjustment in accordance with the formula specified in Clause 73 of the NTPC COPA.
iii. Clause 8 stipulated that time is of the essence of the contract as far as the Respondent/Claimant's obligations are concerned and required the Respondent/Claimant to complete its works m accordance with the timeline prescribed by the NTPC in its Letter of Award dt. 12.12.2003. Clause 9 further stipulated the amount of compensation to be paid by the Respondent/Claimant in the event of delay.