Para 9.6 — NONCONSULT_MANUAL

2. While making the final payment to the contractor and before releasing the PBG, it should be ensured that there is nothing outstanding from the contractor, because it would be difficult to retrieve such amounts after releasing the bank guarantee/ final payment. Before the bank guarantee is released a “no claim certificate” may be taken from the contractor as per the format given in Annexure 20.

3. The contract shall stand closed upon a) successful performance of all obligations by both parties, including completion of warrantee obligations and final payment. b) termination and settlements after that, if any.

4. At least in large contracts (above Rs. 50 (Rupees Fifty) lakhs), it should be ensured that before the release of the bank guarantee (final payment, if there is no bank guarantee), the following reconciliations should be done across Departments involved in the execution of the contract:

5. Materials Reconciliation: The stores and/ or the indentor should confirm that all services agreed to in the contract have been fully and satisfactorily delivered by the service provider. Where the contract involved the supply of materials, tools, parts, or consumables by the service provider or issued to them by the Procuring Entity, a complete reconciliation shall be undertaken to ensure that all tools, assemblies, consumables, or other items provided to the service provider have been properly accounted for; wastage, surplus, scrap, or off-cuts have been returned or disposed of in accordance with the contract provisions.

6. Reconciliation with the User Department: Besides material reconciliation, the user Department should certify in writing that the following activities (wherever applicable) have been completed by the contractor, to the Department’s satisfaction, as per the contract:

9.6. Concluding the Assignment and Post Contract review 1. The contract is normally considered closed on the day after the completion date listed in the contract. Any expenditure incurred after the completion date are unlikely to be paid. It is, therefore, important, under all types of assignments, for the service provider to request an extension of the completion date if it appears that additional items will need to be billed after the completion date. The service provider should submit the final claim promptly after completing the assignment. The standard service provider contract states that the claim must be submitted within 60 (sixty) days of completion.

a) Delivery of services in compliance with the defined performance standards and service levels; b) Completion of support services during the warranty period, which ended on ___________; c) Training of operators/maintenance staff; d) Vacation and restoration of site for use by the department; e) Return of all ID cards, gate passes, documents, drawings, protective gear, material, equipment, facilities, and assets loaned to contractor; and f) Fulfilment of obligations under the Annual Maintenance Contract (if part of the contract), which ended on ______.

7. Payment Reconciliation: The indenting/ materials management Departments may reconcile payments made to the contractor to ensure that there is no liability outstanding against the contractor on account of:

a) Liquidated Damages (LD); b) Price reduction enforced on account of shortfall in performance of service quality/ material/ equipment; c) Variations/ deviations from the scope of the contract; d) Overpayments/ duplicate payments, if any; e) Services availed from Procuring Entity and vacation thereof such as accommodation, electricity, water, security, transport, cranes, and other machinery, and so on, f) Demurrage, insurance premiums or claims, customs duties, and so on; g) Material reconciliation; h) Price and exchange rate variations; i) Statutory duties paid on behalf of the contractor by Procuring Entity; and j) Inspection charges or loss of material in testing.

8. On satisfactory reconciliation and against a “no claim certificate” from the contractor, the bank guarantee may be released, and its acknowledgement taken from the contractor.

9. On completion of all activities against a contract, the purchase file should be preserved for a period of five years in the record room and then destroyed after expiry of the applicable mandatory retention period with the approval of the CA. However, Procuring Entity, at its discretion, may retain important records for future reference.