Para 9.7.2 — GOODS_MANUAL

2. An amendment can concern any of the clauses of the contract, but in supply contracts, amendments often relate to the following:

9.7.2 Amendment to the Contract 1. Once a contract has been concluded, the terms and conditions thereof should not be varied. No amendment to the contract should be made that can lead to a vitiation of the original tender decision or bestow an undue advantage on the contractor. No change in the price quoted shall be permitted after the purchase order has been issued, except on account of price variation, ERV and statutory variations. However, due to several reasons, changes and modifications are needed in the contract. Where necessary/ inescapable, any modification will be carried out with the prior approval of the CA. Any amendment to the contract may have, inter alia, financial/technical/legal implications. The indentor may be consulted regarding the technical implications. Associated/ integrated Finance’s concurrence should be obtained before issuing any amendment that has financial implications/repercussions. Further, if considered necessary, legal opinion may also be sought.

9.7.3 Safeguards for Handing over Procuring Entity Materials/Equipment to Contractors For the performance of certain contracts, the Procuring Entity may have to loan stores, drawings, documents, equipment, and assets (such as accommodation, identity cards, gate passes, and so on) to the contractor. In certain situations, the contractor may also be supplied electricity, water, cranes, and weighing facilities on a payment/hire basis. Whenever stores or prototypes, or sub-assemblies are required to be issued to the firm/contractor for guidance in fabrication, these should be issued against an appropriate bank guarantee. In addition to the bank guarantee, appropriate insurance may be asked for if it is considered necessary. For low-value items of less than Rs. 1,00,000 (Rupees One Lakh) or for sending spares for repairs to the OEMs, this stipulation of the bank guarantee may be waived and, if feasible, an indemnity bond may be taken. The Contractor shall use such property for the execution of the contract and no other purpose whatsoever. These assets shall remain the property of the Procuring Entity, and the contractor shall take all reasonable care of all such assets. The contractor shall be responsible for all damage or loss from whatever cause caused while such assets are possessed or controlled by the contractor, staff, workers, or agents. As a measure of transparency, the possibility of provision of such resources by Procuring Entity should have been announced in the tender document or at least requested by the contractor in the tender and written in the contract. Before the final payment or release of PBG/SD, a certificate may be taken from the concerned Department that the contractor has returned all documents, drawings, protective gear, material, equipment, facilities, and assets loaned, including all ID cards and gate passes, and so on, in good condition. Further, it should be certified that payment from the contractor has been received for the usage of electricity, water, crane, accommodation, weighing facility, and so on.

a) Increase or decrease in the quantity required, exercise of quantity option clause; b) Changes in the schedule of deliveries and terms of delivery; c) Changes in inspection arrangements; d) Changes in terms of payments and statutory levies; and e) Change due to any other situation not anticipated.

3. Amendment of the contract can be done only with the consent of both parties, except for those changes for which right of Purchaser for suo-moto amendment (i.e., penalties etc.) is reserved in the Contract. Requests for such changes and modifications mostly emanate from the supplier. However, in a few cases, it may be necessary to amend the contract suo motu in the interest of the administration. In such cases, it is legally necessary to obtain clear acceptance of the amendment from the supplier. If the contractor does not raise objections within 14 days to any suo-moto modifications/ amendments made by the Procuring Entity, it shall be assumed that the contractor has consented to the amendment.

4. No amendment shall be binding on the Procuring Entity unless and until the same is written and signed/ authorised by a competent authority.