ANALYSIS TO CLAUSE 2 OF CPWD CONTRACTS
Clause:2 Compensation for Delay
This clause deals with liquidated compensation to be imposed on the contractor in case of delay. The compensation is predefined (liquidated) @ 1.5% per month to be computed on per day basis subject to maximum of 10% of the contract value. The decision of the authority imposing compensation is final and binding and it is not open to Arbitration. Following important points are to be learnt.
Read MoreANALYSIS OF CLAUSE 3 OF CPWD CONTRACTS
1. Under this clause contract can be determined not rescinded and there is only risk of earnest money, Security deposit already recovered and Performance guarantee and there is no risk and cost.
2. There is a subtle difference between determination of contract and recession of contract.
3. It is not compulsory that EMD, Security and P.G. are compulsorily to be forfeited but it is discretion of the department. However this forfeiture is illegal and not in accordance with In
Read MoreANALYSIS OF CLAUSE 12 CPWD CONTRACTS
Clause 12:
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This clause deals with following situations:
This clause gives following powers to Engineer-in-Charge for which the contractor shall be bound to carry out the works:-
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to make alteration in
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to make omissions from
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to make additions to or substitutions for the original specifications, drawings, designs and instructions that may ap Read More