Para 9.4 — NONCONSULT_MANUAL
Original Rule Text
2. If stipulated in the contract, the Procuring Entity shall have the right to exercise the following options, by written notification to the contractor no later than thirty (30) days before Contract end:
9.4. Time Control 9.4.1. Contract Period and Options: 1. Unless otherwise stipulated in the contract, the contract Period for which the Service shall be provided shall be one year from the effective date of the contract, unless completed earlier or terminated as per the contract.
a) extend the contract Period only once (unless otherwise stipulated in the contract) by four months period (unless otherwise stipulated in the contract). b) increase the ordered quantum of Services upto the percentage specified therein (or 25% if not specified) at any time, till the completion date of the contract, by giving reasonable notice and providing a reasonable extension in delivery period for increased quantum, even though the quantum ordered initially has been delivered in full before the completion Period. 9.4.2. Delays in Performance of Services:
1. Service Provider shall be required to adhere to the delivery schedule (including any incidental Work/ Goods) specified in the Contract (or as extended) and, if there is a delay in performance of services, it amounts to breach of contract, since ‘Time is the Essence of the Contract’. The service provider should notify the Procuring Entity and explain the causes of such delays. Non-consultancy services may be delayed for a variety of reasons, including sometimes delays in discharge of its obligations by the Procuring Entities.
2. Delays Attributable to the Service Provider: In case of delays in performance of services (including delay in rectification of a defective service within the time specified in the Procuring Entity’s notice) attributable to the Service Provider, the Procuring Entity may without prejudice to his other rights:
a) recover from the contractor liquidated damages as per para 9.4.6 below, or b) treat the delay as a breach of contract as per para 9.8.1 below and avail all the remedies therein, although it is in purchaser’s interest to resort to this provision only as a last resort, in case of inordinate delays.
3. Delay in Performance for which Service Provider is not Responsible: a) In cases where there is a delay for which the Service Provider is not responsible, the delivery period needs to be re-fixed without imposing any penalty (i.e. without LD and without a denial clause). If corrective action requires extra work and the delay cannot be attributed to the service provider, the extra work should be reimbursed in accordance with the contract. Normally, in the following circumstances, the Service Provider may not be considered to be responsible for the delay:
i) Cases where the Service Provider is dependent on the approval/ decision of the Procuring Entity, and the delay occurs in such approval/ decision, though requested by the Service Provider in time; ii) Where extension in the delivery period is granted on account of some omission on the part of the purchaser, which affects the due performance of the contract by the Service Provider, iii) Cases where the service delivery has been affected by Force Majeure or statutory change or specific executive instructions issued by Govt.
b) There may be delays for which both buyer and contractor may be responsible to a different extent. In such cases, the levy of LD and Denial clause may be decided on merits.
4. Inordinate Delays: Inexcusable delays of more than one-fourth (25%) of the total completion period shall be treated as inordinate delays. Such inordinate delays may be treated as breach of contract and shall be noted as deficient performance and be held against the contractor in future tenders. A show-cause notice shall be issued to the contractor before declaring it a deficient performance. In case Procuring Entity decides to allow performance of contract, after inordinate delays, maximum limit on LD shall be 10% (instead of 5%) of the total contract value, as per para 9.4.7-1 and 9.4.9 below.