CONTRACT AGREEMENT
THIS CONTRACT NO. _______________________ made this ______________ Day of February, Two thousand seven at Rourkela.
BETWEEN
STEEL AUTHORITY OF INDIA LIMITED, a Company incorporated under the Companies Act, 1956 and having its registered office at Ispat Bhavan, Lodi Road, New Delhi 110 003, India, having one of its plants Rourkela Steel Plant at Rourkela (hereinafter referred to as the "Employer") which term or expression unless excluded by or repugnant to the context or the meaning thereof, shall be deemed to include its successors and permitted assigns, OF THE ONE PART,
AND
M/s.Sinosteel Engineering Design & Research Institute, a Company incorporated and existing under the laws of China and having its Registered Office at 108 Huaian East Street, Shijiazhuang, Hebei Province, 050021 China(hereinafter referred to as "Contractor"), which term or expression unless excluded by or repugnant to the context or meaning thereof, shall be deemed to include its successors and permitted assigns, OF THE OTHER PART
AND WHEREAS
a) The Employer has decided to set-up Coal Dust Injection unit in Blast Furnace #4
at Rourkela Steel Plant, (hereinafter referred to as the " Facilities "), and
b) The Contractor has declared that the Contractor has valuable and specialised knowledge and
expertise for design & engineering, civil engineering work, dismantling of buildings, structures & equipment, fabrication & supply of steel structures, manufacture & supply of plant and equipment, manufacture & supply of refractories, intermediate storage, insurance & handling, erection work, testing, pre-commissioning, start-up & commissioning and demonstration & establishment of performance guarantee parameters of the Facilities on divisible turnkey basis, and
c) The Contractor has declared that the Contractor is in a position to disclose, impart, deliver and
transfer the requisite engineering data, drawings and documents of those items which are in the scope of the Contractor in this Contract, to the Employer for the engineering of the Facilities and for erection, start-up and commissioning of the Facilities with the aim to manufacture product as specified in the Contract, and
d) The Contractor has obtained clarifications on technical and commercial aspects, inspected the site
and surroundings of Facilities and has examined and considered all other matters, conditions and things, probable contingencies including delays, hindrances and interferences and generally all matters incidental thereto and ancillary thereof, affecting the execution and completion of the Facilities, and
e) The Contractor has agreed to undertake design & engineering, civil engineering work, dismantling of
buildings, structures & equipment, fabrication & supply of steel structures, manufacture & supply of plant and equipment, manufacture & supply of refractories, intermediate storage, insurance & handling, erection work, testing, pre-commissioning, start-up & commissioning and demonstration & establishment of performance guarantee parameters of the Facilities, and
f) SAIL, Centre for Engineering & Technology, Ranchi shall be the Consultant for the Facilities.
NOW IT IS HEREBY AGREED as follows :
Article 1. Contract Documents 1.1
1.2
Definitions (Reference GCC Clause 1)
Contract Documents (Reference GCC Clause 2)
The following documents shall constitute the Contract between the Employer
and the Contractor, and each shall be read and construed as an integral part
of the Contract :
(a) This Contract Agreement and Appendices hereto
(b) Special Conditions of Contract and Annexures hereto
(c) General Conditions of Contract and Annexures hereto
(d) Technical Specifications
(e) General Technical Specifications
(f) Safety Code
(g) Wage circular
1.3 Order of Precedence (Reference GCC Clause 2)
In the event of any ambiguity or conflict between the Contract Documents
listed above, the order of precedence shall be the order in which the Contract
Documents are listed in Article 1.2 (Contract Documents) above.
Article 2. Contract Price and Terms of Payment 2.1 Contract Price (Reference GCC Clause 11 & Appendix-1)
The Employer hereby agrees to pay to the Contractor the Contract Price in
consideration of the performance by the Contractor of its obligations
hereunder. The Contract Price shall be the aggregate of US Dollar Four
Million Eight Hundred Sixteen Thousand and Four Hundred Fifty only
[ US$ 4,816,450.00] and Indian Rupees Two Hundred Twenty One Million
Nine Hundred Thirty Seven Thousand and Five Hundred Seventy Six
only [ Rs. 221,937,576.00]or such other sums as may be determined in
accordance with the terms and conditions of the Contract.
2.2 Terms of Payment (Reference GCC Clause 12 & Appendix-3)
The terms of payment are given in Clause 12 of GCC and Appendix-3.