Common use of Construction Works Clause in Contracts

Construction Works. (i) The Developer is required to commence Construction Works only on or after the approval of the Development Plan by JTDCL. (ii) Unless otherwise permitted by JTDCL, no Construction Works shall begin until the Third Party Inspector is in place and has assumed charge. The Developer shall immediately upon commencement of Construction Works notify the Third Party Inspector and JTDCL of the same. (iii) The Developer shall adhere to the approved Developer Plan, Detailed Project Report, Construction Requirements and achieve COD on or before the Scheduled Project Completion Date. If the Developer fails to achieve COD on or before the Scheduled Project Completion Date for any reason other than conditions constituting Force Majeure or for reasons attributable to JTDCL, the Developer shall pay to JTDCL, damages calculated at the rate of 6% (six percent) of the Performance Security, for every month of delay till COD. (iv) The Developer shall, before commencement of Construction Works have requisite organisation and designate and appoint suitable officers / representatives as it may deem appropriate to supervise the Project, to deal with the Third Party Inspector/JTDCL and to be responsible for all necessary exchange of information required pursuant to this Agreement; (v) For the purposes of determining whether the Construction Works are being undertaken in accordance with the Detailed Project Report, Development Plan and Construction Requirements, the Developer shall with due diligence carry out all necessary and periodical Tests at its cost in accordance with the instructions and under the supervision of the Third Party Inspector and the Construction Requirements. (vi) If, as a result of such tests, JTDCL and/or the Third Party Inspector decides that any plant, materials, consumables, design, process, software or workmanship relating to the Project Facility is defective or otherwise not in compliance with the Detailed Project Report, Development Plan, Construction Requirement and Good Industry Practice, JTDCL and/or the Third Party Inspector may reject such materials, consumables, process or workmanship and shall forthwith notify the Developer with reasons for rejection and require correction of such defects within the stipulated time. (vii) The Developer shall make good such notified defects within the stipulated time, and undertake re-testing, if any, at its cost that may be required by JTDCL and/or the Third Party Inspector. In the event that the Developer fails to repair, replace or rectify such defects within a period of 7 (Seven) days from the date of notice issued by the Third Party Inspector in this behalf, JTDCL shall be entitled to get the same repaired, replaced or rectified at the Developer’s risk and cost so as to ensure that the Project Facility is in conformity with the Construction Requirement. All costs incurred by JTDCL in this behalf shall be reimbursed by the Developer to JTDCL within 7 (Seven) days of receipt of demand on this behalf. (viii) The Developer shall maintain proper record of such Tests and the remedial measures taken to cure the defects or deficiencies, if any, indicated by the Test results. (ix) If the Tests are successful and it is ascertained that the Project Facilities can be safely and reliably opened for operation as the case may be, the Third Party Inspector shall issue the Completion Certificate in consultation with JTDCL. (x) The Third Party Inspector, may, by written notice, require the Developer and with the consent of JTDCL, to suspend forthwith the whole or any part of the Construction Works, if in its reasonable opinion the same is being carried on in a manner that is not in conformity with the Construction Requirements. (xi) The Project shall be deemed to be complete and ready for operations only when the Completion Certificate is issued by the Third Party Inspector in accordance with the provisions hereof. Provided, if the issue of the Completion Certificate is delayed beyond 30 days of the Scheduled Project Completion Date, JTDCL shall, subject to the provisions of Article 5.10, be entitled to terminate this Agreement and to appropriate the Performance Security.

Construction Works. (i) The Developer is required to commence Construction Works only on or after the approval of the Development Plan by JTDCL. (ii) Unless otherwise permitted by JTDCL, no No Construction Works shall begin until the Third Party Inspector is in place and Construction Supervisor has assumed charge. The Developer shall immediately upon commencement of Construction Works notify the Third Party Inspector and JTDCL of the same. (iiiii) The Developer Concessionaire shall adhere to the approved Developer Plan, Detailed Project Report, Construction Requirements and achieve COD on or before the Scheduled Project Completion Date. If Provided that, on the Developer fails written request by the Concessionaire for extension of Scheduled Project Completion Date due to reasons solely attributable to the Concessionaire, Construction Supervisor / ULB may consider such a request, subject to the Concessionaire agreeing to pay an amount of 0.5% of the Capital Grant per week of extension as liquidated damages. However, such extension shall in no case exceed 90 (ninety) days from Scheduled Project Completion Date. In order to ensure good progress of the works to achieve COD on or before the Scheduled Project Completion Date for any reason other than conditions constituting Force Majeure or for reasons attributable to JTDCLas prescribed in this Agreement, the Developer Concessionaire shall pay be bound to JTDCL, damages calculated at the rate of 6% (six percent) complete one fourth of the Performance Securitywhole of the works before one fourth of the whole time allowed for construction under this Agreement has elapsed, for every month one half of delay till CODthe works before one half of such time has elapsed and three fourth of such work before three fourth time as elapsed. In the event of the Concessionaire failing to comply with this condition he shall still be liable to pay as compensation the liquidated damages as mentioned above. In the event Concessionaire is not able to achieve COD within such extended period, it shall be treated as a Concessionaire Event of Default. (iii) The Concessionaire may undertake Construction Works by itself or through a Contractor possessing requisite technical, financial and managerial expertise/ capability; but in either case, the Concessionaire shall remain solely responsible to meet the Construction Requirements. Prior to commencement of construction, renovation/ repair of any of the Project Facilities, the Concessionaire shall have obtained all such Applicable Permits as are necessary to commence construction/ renovation/ repair of such facilities. (iv) The Developer Concessionaire shall, before commencement of during the Construction Works have requisite organisation Period be well organized and designate and appoint suitable officers / officers/ representatives as it may deem appropriate to supervise the Project, to deal with the Third Party Inspector/JTDCL Construction Supervisor/ ULB and to be responsible for all necessary exchange of information required pursuant to this Agreement; (v) For the purposes of determining whether the Construction Works are being undertaken in accordance with the Detailed Project Report, Development Plan and Construction Requirements, the Developer shall with due diligence carry out all necessary and periodical Tests at its cost in accordance with the instructions and under the supervision of the Third Party Inspector and the Construction Requirements. (vi) If, as a result of such tests, JTDCL and/or the Third Party Inspector decides that any plant, materials, consumables, design, process, software or workmanship relating to the Project Facility is defective or otherwise not in compliance with the Detailed Project Report, Development Plan, Construction Requirement and Good Industry Practice, JTDCL and/or the Third Party Inspector may reject such materials, consumables, process or workmanship and shall forthwith notify the Developer with reasons for rejection and require correction of such defects within the stipulated time. (vii) The Developer shall make good such notified defects within the stipulated time, and undertake re-testing, if any, at its cost that may be required by JTDCL and/or the Third Party Inspector. In the event that the Developer fails to repair, replace or rectify such defects within a period of 7 (Seven) days from the date of notice issued by the Third Party Inspector in this behalf, JTDCL shall be entitled to get the same repaired, replaced or rectified at the Developer’s risk and cost so as to ensure that the Project Facility is in conformity with the Construction Requirement. All costs incurred by JTDCL in this behalf shall be reimbursed by the Developer to JTDCL within 7 (Seven) days of receipt of demand on this behalf. (viii) The Developer shall maintain proper record of such Tests and the remedial measures taken to cure the defects or deficiencies, if any, indicated by the Test results. (ix) If the Tests are successful and it is ascertained that the Project Facilities can be safely and reliably opened for operation as the case may be, the Third Party Inspector shall issue the Completion Certificate in consultation with JTDCL. (x) The Third Party Inspector, may, by written notice, require the Developer and with the consent of JTDCL, to suspend forthwith the whole or any part of the Construction Works, if in its reasonable opinion the same is being carried on in a manner that is not in conformity with the Construction Requirements. (xi) The Project shall be deemed to be complete and ready for operations only when the Completion Certificate is issued by the Third Party Inspector in accordance with the provisions hereof. Provided, if the issue of the Completion Certificate is delayed beyond 30 days of the Scheduled Project Completion Date, JTDCL shall, subject to the provisions of Article 5.10, be entitled to terminate this Agreement and to appropriate the Performance Security.