PRE BID QUERIES PERTAINING TO HIRING OF SERVICES OF A TUG FOR A&N ISLANDS

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1 Sl. No Page No. 5 5 Tender Clause SECTION I GENERAL INFORMATIONS CLAUSE NO. 1 The period of hiring may be extended depending on the performance and requirement. SECTION I GENERAL INFORMATIONS CLAUSE NO. 1 The period of hiring may be extended depending on the performance and requirement SECTION I GENERAL INFORMATIONS CLAUSE NO. 1 The total estimate cost of the proposal is Rs crores. 4. SECTION I - GENERAL INFORMATIONS CLAUSE NO. 2 Cost of tender document in the form Clarification sought by M/S Sea Sparkle Pvt. Ltd. 1) Reference to Clause 1 on page 5, we further understand that extension shall be purely based on performance of services by the contractor and shall not be discretionary. 2) We may request that the intention of extension shall be communicated at least 90 days prior to the date of expiry of initial contract tenure which would allow the contractor to look for alternate jobs in case, contract is not extended. 1) Reference to Clause 1 on page 5, we further understand that extension shall be purely based on performance of services by the contractor and shall not be discretionary. 2) We may request that the intention of extension shall be communicated at least 90 days prior to the date of expiry of initial contract tenure which would allow the contractor to look for alternate jobs in case, contract is not extended. Since the bidder is required to quote exclusive of service tax, we understand that the estimated cost is exclusive of Service Tax. Clarification sought by M/S Pragati Marine Service Pvt. Ltd. Clarification sought by M/S KNK Ship Management Page 1 of 21 Departmental Comments Yes We request that the Tenderer shall allow to bid that they can pay the cost Yes, Payable :

2 4 of Draft/Pay order for Rs.1000/- payable to Accounts Officer, Port Management Board, payable at Port Blair towards the cost of tender document if the Bidder has been downloaded from the website OR copy of the payment receipt, if the tender has been purchased from the Department SECTION I GENERAL INFORMATIONS CLAUSE NO. 1 The tender is invited for hiring of 1 No. Tug of not less than 25 T BP Capacity for a period of 02 Yrs SECTION I GENERAL INFORMATIONS CLAUSE NO Experience of having successfully completed Supply of Tugs/OSV on hire basis to any Port or any other private organizations during last seven years from the last date of Submission of Bids in the format prescribed at Annexure III. The work value should meet following criteria. i. Three works, each costing not less than Rs.5.18 crores. ii. Two works, each costing not less than Rs.7.78 crores. iii. One work, each costing not less than Rs crores. The firm requested also to incorporate the below mention criteria in the essential qualification:- Bidders who have the experience of Manning, operations and Technical Management of Tugs/OSVs and other ships and Port Crafts in the last 7 Yrs. are also eligible to bid for the tender. of Tender document by RTGS payment Page 2 of 21 Name of the A/c Holder: Senior Accounts Officer, PMB Type of Account: Current Account A/c No IFSC Code: SBIN

3 7. 5 SECTION I GENERAL INFORMATIONS CLAUSE NO Proof of ownership of the Tug. If bidder is not the owner, appropriate document to establish that the tug is actually in control of bidder SECTION I GENERAL INFORMATIONS CLAUSE NO Certificate from Statutory Auditor and/or Chartered Accountant 9. 6 SECTION I GENERAL INFORMATIONS CLAUSE NO Experience of having successfully completed Supply of Tugs/OSV on hire basis to any Port or any other private organizations during last seven years from the last date of Submission of Bids The clause is open ended and not definitive. As per the standard Major Port tenders for hiring of Tug boats, the Bidders are allowed to participate in the tender only with following arrangements: Tenderer should either own the Tug or bidder should have entered into a legally enforceable Charter Agreement with the owner of the Tug for deploying them at Port Blair for the duration of the contract period. Bidder shall submit this signed Charter Party agreement along with the Bid submission, failing which the bid would be disqualified. We request you to kindly incorporate the above in this tender to allow only credible tug operators. Since, Bidders are required to submit Audited Financials for three years, the requirement of Certificate from Statutory Auditor and/or Chartered Accountant towards financial turn over may please be exempted. Kindly confirm We bring to your kind attention that the tender does not specify the documents required to be submitted by the Bidders in support of their claim meeting minimum experience criteria. In line with Major Port tenders, we request you to kindly add the following in this clause, Page 3 of 21 Tender Condition Prevail. Experience of having successfully completed Supply of Tugs/OSV on hire basis to any Port or any other private organizations during last seven years from the last date of Submission of Bids as per

4 10. 6 SECTION I GENERAL INFORMATIONS CLAUSE NO The price bid should be inclusive of all taxes and duties but exclusive of service tax. Copies of the work orders /Agreement /LOI along with satisfactory completion certificates issued by the clients are to be submitted by the Bidders in support of their claim for eligibility. Kindly confirm (1) We understand that the bidder shall quote the basic charter rates exclusive of all existing taxes and duties like Service Tax etc. which shall be reimbursed by PMB upon submission of documentary evidence. Kindly confirm. Page 4 of 21 the formate ANNEXURE III. Satisfactory work completion certificate must be enclosed with the technical bid. Yes SECTION I GENERAL INFORMATIONS CLAUSE NO. 6.1 Bidders are required to submit EMD for amount of Rs lakhs (Rupees twenty five lakhs Ninety Two Thousand only) along with their bids. The EMD may be submitted in the form of Account Payee Demand Draft/ Fixed Deposit Receipt OR Bank Guarantee from any of the scheduled Bank in favour of Accounts Officer, Port Management Board, Port Blair in the format prescribed at Annexure V (Section IX) SECTION I GENERAL INFORMATIONS CLAUSE NO. 14 SERVICE TAX / VAT/ANY OTHER TAX: The quoted price should be inclusive of all taxes. However, Service Tax will (2) Further, we request that in case of introduction of any new taxes (ex: GST etc.), duties, levies and / or increase in existing taxes and duties applicable after the Bid submission date shall be on PMB s account. Kindly confirm Submission of big Earnest Money of INR Lakhs will restrict minimum participation. It is requested that, the submission of Earnest Money may please be exempted up to the monitory limit for which the enterprise q=with NSIC- under single point Registration for Govt. purchase. We request that the Tenderer shall allow to bid that they can pay the cost of Tender document by RTGS payment The firm registered with NSIC for tender scope of work is exempted for submission of EMD. EMD can also be submitted through RTGS in PMB. Name of the A/c Holder: Senior Accounts Officer, PMB Type of Account: Current Account A/c No IFSC Code: SBIN Yes

5 be paid extra SECTION I - GENERAL INFORMATIONS - CLAUSE 5. the tug should be provided with calibrated flow Meter in the fuel lines to Diesel Engines including DG sets to maintain the fuel consumption (OR) fuel will be calculated by sounding the fuel tanks(class approved). The calibrated scale should be provided by the Contractor SECTION I - GENERAL INFORMATIONS - CLAUSE EMD The EMD may be submitted in the form of Account Payee Demand Draft/ Fixed Deposit Receipt OR Bank Guarantee from any of the scheduled Bank in favour of Accounts Officer, Port Management Board, Port Blair in the format prescribed at Annexure V (Section IX) SECTION I - GENERAL INFORMATIONS - CLAUSE 6.4 EMD EMD of the unsuccessful Bidders will be refunded after finalization of the tender SECTION I - GENERAL INFORMATIONS - CLAUSE 6.7 EMD.such an act shall amount to We wish to draw your attention that as a standard industry practice fuel tank sounding table is provided by the Shipyard and it would be available on board the tug at all times. Since, the fuel tank sounding table is based on various drawings already approved by Class; no such specific approval is warranted. We therefore, request you to kindly delete the words Class Approved. We draw your attention to Annexure-V which has provided format for Performance Bank Guarantee, not EMD as stated. We request you to kindly provide a format for EMD, which is to be submitted at the time of Bid submission or else kindly confirm a standard Bank Guarantee format used by other Major Ports would be acceptable to you. Since the finalization of the tender is an open ended time period and not acceptable to banks, we request amendment in the clause as follows: EMD of the unsuccessful Bidders will be refunded after finalization of the tender or after the expiry of Bid validity period whichever is earlier. We draw your attention that this clause imposes an unlimited liability to the Bidder which is not a standard Page 5 of 21 When the vessel is class approved its tanks/ drawings are also treated as class approved. No separate approval will be required. Standard Bank Guarantee format of nationalized banks shall be acceptable for EMD. EMD of the unsuccessful Bidders will be refunded after finalization of the tender or after the expiry of Bid validity period whichever is earlier.

6 be construed as the Successful Bidder's calculated and willful breach of contract, the cost and consequence of which shall be to the sole account of the Bidder and upon such an event, the PMB shall have full right to claim damages thereof in addition to the forfeiture of Earnest Money Deposit SECTION I - GENERAL INFORMATIONS - CLAUSE 7.1 PBG The Performance Guarantee should remain valid for a period of 60 days beyond the date of completion of all contractual obligations. It should be submitted through the Bank. Tender clause in Govt/ Major Ports. The bidders liability is always limited to the extent of EMD submitted. Therefore, we request that the sentence to be modified as follows: upon such an event, the PMB shall have full right to claim damages thereof in addition to the forfeiture of Earnest Money Deposit. Kindly confirm. (1) Please note that most of the Nationalized Banks like our Bank, State Bank of India, do not issue PBG having no certain expiry date. Thereby, successful Bidder shall submit a Bank Guarantee having expiry date of initial contract tenure of 2 years (starting from acceptance of tug) plus a claim period of 60 days Page 6 of 21 Tender condition Prevails SECTION I GENERAL INFORMATIONS CLAUSE NO. 7.1 PBG The successful Bidder will be required to furnish a Performance Guarantee for a sum equivalent to 5% of the total contract price We draw your attention that various clauses stipulate Performance Bank Guarantee amount differently and we request that in line with other Major port Trust tenders, the PBG shall be fixed for an amount equivalent to 10% of the Annual Contract Value. Kindly confirm the same. The successful Bidder will be required to furnish a Performance Guarantee for a sum equivalent to 10% of the total contract price.

7 19. 7 SECTION I - GENERAL INFORMATIONS - CLAUSE 7.5 PBG The said Performance Guarantee shall not in any way be construed as a limitation of the Successful Bidder's responsibility or liability pertaining to his obligations and/or guarantees under the contract and shall be without prejudice and in addition to any other remedies available to the PMB in terms of the contract and/or the laws of the land SECTION I - GENERAL INFORMATIONS - CLAUSE 7.7 PBG The Performance Guarantee will be released only on satisfactory completion of the entire scope of works contemplated in this contract SECTION I - GENERAL INFORMATIONS - CLAUSE 8 - DELIVERY SCHEDULE: The Tug shall be delivered at Port Blair for Acceptance Trials as mentioned at clause 1 (Section VI) within 30 days from the date of issuance of Letter of Acceptance. (1)We wish to bring to your kind attention that the said clause exposes the successful bidder to an unlimited liability which is not covered by insurances. Thereby risk profile of the project is high and financing of the Tug from the financial institutes would be difficult. As per standard industry practice, the overall liability of the contractor /successful bidder is always limited to the Performance Bank Guarantee amount apart from the Insurable claims as per the standard P&I cover taken by the Tug owner. Kindly make suitable amendments in the clause. We draw your attention unlike works contract, time charter of tugs has certain time lines (contract tenure). Thereby, we request that the PBG shall be returned to the Tug Owner after expiry of claim period. Kindly confirm. We wish to draw your attention that the stated clauses do not give uniform timelines and hence, ambiguous. We request to kindly give a minimum of 90 days delivery period from the date of issue of LOI which is in line with your last tug tender in Page 7 of 21 Tender condition Prevails The Tug shall be delivered at Port Blair for Acceptance Trials as mentioned at clause 1 (Section VI) within 90 days from the date of issue of Letter of Indent.

8 22. 8 SECTION I - GENERAL INFORMATIONS - CLAUSE 20 - SUB CONTRACTING: No sub contracting will be allowed. Disobeying the clause will attract termination of the contract SECTION II: CLAUSE NO: 1 ESSENTIAL DETAILS OF THE SERVICES REQUIRED GENERAL: The contract involves Supply of Services of a Tug of not less than 25 Ton Bollard Pull capacity for Port Management Board, ANI for a period of two years and extendable for another one year for Port operations SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 5.3 TUG REQUIREMENT: The Tug under contract presently may be offered with precondition that the Bidder shall offer the Tug for Acceptance Trials within 3 months (90 days) from the date of issue of LOI. As a normal shipping industry practice, we trust manning /crewing portion is allowed to be subcontracted. Kindly confirm 1) We understand that the present tender terms stipulate a contract tenure of two years which is further extendable by one more year. Kindly confirm. Since the Marine Assets are capital intensive, although the Vessels are identified at the time of the Tender, they would be acquired and mobilized only upon being successful in the Tender. The process of Acquiring, Mobilization, Registration, Customs Clearance etc., takes at least three months and it is therefore requested that the Delivery period/mobilization time shall be 90 Days from the date receipt of LOI. It may please be noted that the successful bidder may mobilize the tug anytime within the above 90 days depending upon readiness of the tug for deployment at your Port. Page 8 of 21 Yes

9 25. 9 SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 2 DAMAGES TO TUGS: The Port will not be responsible for any damage suffered by the tug due to failure of the tug or errors of the Tug Master and crew or any reason whatsoever SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 5.1 TUG REQUIREMENT: In case of any dispute regarding the Bollard Pull of the tug, during the period of contract, a fresh Bollard Pull test should be conducted at the cost of the Successful Bidder in the presence of the Classification Surveyor and Port Authorities. With regard to Indemnity and liability, we wish to mention that many of the Major Ports like Paradip port, Vishakhapatnam Port etc. have allowed the protection and indemnity available to the Port owned tugs are extended to the hired Tug while tug is under charter with the Port. We request the clause of these major port contracts shall be included in this tender which is as follows: whilest tug is engaged on duties as instructed by the Port, the said Tug enjoys the protection and indemnities available to the Tugs/ Marine Crafts owned by the Port provided under Major Port trust Act and the bye-laws of Port. (i)while we agree that the Port shall have the right to ask for Bollard Pull test at its discretion, we are of the opinion that all Bollard pull tests during tenure of contract whenever required by the Port will be carried out by the Port at his cost and time. However, if the tug fails to deliver the required bollard pull, the cost of such test shall be borne by the Contractor. We request amendment in the respective clauses. SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 5.1 TUG REQUIREMENT: In case of any dispute regarding the Bollard Pull of the tug, during the period of contract, a fresh Bollard Pull test will be conducted by the port at its cost and time in the presence of the Classification Surveyor and Port Authorities. If the tug fails to deliver the required Page 9 of 21 Yes, it is clarified that the tug on duty with Port shall be treated to be port craft for all legal purposes.

10 bollard pull, the cost of such test will be borne by the Contractor. Page 10 of SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 6.5 SERVICE REQUIREMENT: In the event, the tug being unable to perform any of the operations no hire charges will be paid by the Port to the Successful Bidder. However, charges during the permissible downtime period shall be released SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 8.1 INSURANCE CHARGES: During the hire period, the vessel shall be kept insured by the Successful Bidder at his expense against all including total loss and salvage, personal injury and loss of life. Such insurance shall be comprehensive are covering all risks including these related to third parties. No claim in this regard shall be entertained by For clarity purpose, we request you to kindly confirm that hire charges would not be paid to contractor on prorate basis after adjusting the permissible downtime period. (i)for clarity purpose, we request modification of clause as follows: During the hire period, the vessel shall be kept insured by the Successful Bidder at his expense against all including total loss and salvage of Tug, personal injury and loss of life. Such insurance shall be comprehensive are covering all risks including these related to third parties. No claim in this regard shall be entertained by PMB (ii) Further, we wish to draw your attention that unlike a port, Tender condition Prevails

11 PMB SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 9 DOWNTIME: The Contractor must take prior approval from Chief Port Administrator before laying up the tug to carry out any maintenance work or repairs or surveys etc. Comprehensive Insurance cover is not available for the Tug owner. The Tugs and manpower provided by the contractor would covered under following: 1) H & M and War Risk (2) P & I ( covering third party liability, to the extent limited by the P&I club rules) 3) Workmen Compensation or equivalent for shore staff / workers (which covers injury or death of contractors employees only) We trust the same is acceptable to you. (i)we request you to allow the Contractor to use permissible downtime available with the Contractor for the dry docking also which is in line with the standard industry practice. Kindly confirm (ii) Further, we request insertion of the following clause: Incase, Propeller of hired Tug is fouled due to some floating debris such as Tyre or Ropes during on hire period inside the port, the vessel should not be treated as off hire. From the time Tug reports breakdown till she is brought back to normalcy shall be treated as on hire. We are of the opinion that it is the sole responsibility of the Port to give safe working condition to the Tug to operate and in such cases Page 11 of 21 Yes, clarified.

12 Page 12 of SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 9 DOWNTIME: No down time balance at the end of the year will be carried forward to the subsequent next year and will lapse SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 9 DOWNTIME: the entire period for which tug was idle after last operation till her coming back to operation shall be treated as down time of the Tug SECTION II ESSENTIAL DETAILS OF THE SERVICES REQUIRED CLAUSE 5.1 SERVICE REQUIREMENT: The Tug is to be used for various services required by the Ports including towing, docking, and undocking of vessel at all Ports of ANI round the clock (24 hours a day) and throughout the contract period of three years We request you to kindly allow the contractor to carry forward the down time to subsequent year since the contractor can only use these down time with prior approval of PMB. Since the scheduling the next operation is at the discretion of PMB and time gap between the tug intimates readiness until next operation can be substantial, we request modification in the clause as follows: the entire period for which tug was idle after last operation till her intimation of readiness shall be treated as down time of the Tug. We may also bring to your kind attention that for Tug to transit to different Island Jetties/ Ports outside the port limits of Port Blair would require the tug to be manned as per Coastal Manning as per the DG shipping regulations. The cost for such coastal Manning like Master NCV/ FG,NWKO, Chief Engineer etc. will be expensive than crew required for operating in harbor limits. Thereby, please advise if the requirement of tug is to operate in It is to clarify that coastal manning may be considered.

13 SECTION III BROAD SPECIFICATION OF THE TUG CLAUSE g BOLLARD PULL: The Certified true copy of BP test certificate (not older than 4 months) should be from any IACS member SECTION III BROAD SPECIFICATION OF THE TUG CLAUSE J : Max. sustained speed of vessel: Not less than 10 Knots other ports beyond Port limits of Port Blair is continuous or occasional. In case the requirement is continuous/frequent, then the Tugs would have to be manned as per Coastal Manning and hence, would call for a higher estimated cost for the contract. If the requirement is planned and occasional, additional manning is to be arranged on case to case basis given adequate time and all incidental costs to be reimbursed by PMB including mobilization cost for crew, additional insurance etc. Kindly clarify and confirm. We bring to your kind attention that the Tug to be offered is currently deployed under a contract and pulling out the Tug to conduct Bollard Pull Test is rather difficult. Therefore, we request you to kindly consider a Bollard Pull test Certificate not more than 1 year old to be submitted along with the Technical Bid. However, the successful bidder shall submit a BP test certificate of not more than 4 months old at the time of delivery of the tug. We request you to modify the clause as follows: Max. sustained speed of vessel in normal sea conditions: Not less than 10 Knots Page 13 of 21

14 SECTION III BROAD SPECIFICATION OF THE TUG CLAUSE P (iii) MANNING: The successful bidder shall however arrange to keep standby staff to meet contingencies such as sudden sickness, absenteeism, leave reserve etc. for which no extra payment will be made by the Port SECTION IV PERSONNEL CLAUSE MINIMUM RECOMMENDED MANNING: Standby Master/crew: In the event of non-availability of the Master/crew for any reason, the contractor will provide qualified standby Master/crew immediately SECTION IV PERSONNEL CLAUSE MINIMUM RECOMMENDED MANNING: Master and Crew: The Master & crew shall posses the requisite classification to operate the Tug in Ports of ANI SECTION IV PERSONNEL CLAUSE 2 - MINIMUM RECOMMENDED MANNING: All Crew will be Indian Nationals and are to have necessity/police clearance SECTION IV PERSONNEL CLAUSE 6 The vessel may be required to carry out salvage, anti-pollution operations, (1) Please clarify that all the Bidders shall include the cost of a set of standby crew which shall be stationed at Port Blair at all points of time and the same can be audited by the Port at its discretion. We bring to your kind attention that this will significantly increase the daily charter rate and hence, we request for revision of estimated cost. 2) As an alternative, we suggest that only an additional tug handler shall be kept on standby to meet the exigencies. (i) Kindly clarify if the clause means the Master and crew shall meet the requirement as stated in the Safe Manning Document issued by D G Shipping for Harbor operations. We request that in case of emergency crew change, Police clearance shall be exempted. However, contractor shall always be responsible for their crew. (1) We bring to your kind attention that the tug required under the tender is a harbor tug, not equipped or designed as a salvage tug. Salvage jobs are Page 14 of 21 Yes

15 in harbour/port limits under the instructions of the Port Management Board. Neither the Successful Bidder nor the vessel s master/crew will have any claim for reward or compensation for undertaking or assisting in such operation against Lloyd s Salvage form. However, in case of the Port authority entering into an agreement related to salvage, the contractor shall be intimated and the contractor has to arrange for salvage insurance accordingly SECTION V CLAUSE 1.2 Joint Survey will be done by a committee comprising of Tug Owner, Representative from PMB and IRS surveyor for Bollard Pull, Speed, Maneuvering Tests and any other tests as required by the IRS Surveyor and PMB. specific in nature and many a time beyond the safe capabilities of these harbour tug and her crew. Hence, all such specialized operations shall be undertaken always with the prior consent of the contractor. Kindly confirm. (2)We request you to kindly include the following standard salvage clause: All salvage rendered shall be for the Port and Contractor s equal benefit after deducting all lawful expenses including additional manning and insurance, if any and the hire paid under the agreement for the period of salvage and other repairs or damage and fuel consumed. No salvage shall be undertaken without the explicit orders of the PMB and consent of the contractor. PMB shall take all measures to secure payment of salvage and the CPA shall enter into agreement for salvage on behalf of the PMB and the Contractor and protect the Contractor from all risks of Salvage. Since, the successful Bidder would submit a Bollard Pull test certificate of less than 4 months old at the time of delivery of tug, we request exemption on carrying out a fresh bollard pull test at the time of on hire. Page 15 of 21 Yes, it is to confirm that salvage operation shall be entrusted only with prior consent of the contractor. Tender Condition Prevails

16 SECTION V CLAUSE 1.6 The tug will be declared on hire from the time, the Chief Port Administrator declaring after pursuing the report of Joint survey and verification of all the relevant certificates viz., various documents, classification certificates, record of safety equipment, test certificate of rope, list of crew and site staff etc. and satisfy the Port of all other requirements SECTION V CLAUSE 3 HIRE CHARGES AND PAYMENT TERMS: The Port Management Board to pay hire charges as agreed per day or part thereof on pro-rata basis at the end of each calendar month after submission of bill by the Successful Bidder. The monthly bill shall be submitted along with the certificate of satisfactory performance service issued by the Harbour Master or his authorized representative SECTION V - CLAUSE 8 SUCCESSFUL BIDDER TO MAKE GOOD THE LOSS IN CASE OF DAMAGE TO PORT/ OTHER PROPERTIES AND Since, the tender does not stipulate the site staff requirement, kindly delete the word site staff. (i)we request that the payment should be released within Ten (10) days from the date of submission of the bill. (ii)in case of dispute, the undisputed amount shall be released promptly. (iii) Failure to pay in time would entitle the Contractor to claim an interest 01% per month. In case the payment is delayed for more than 2 months, the contractor has the absolute right to withdraw the Tug from operations or terminate the contract. However obligations of payment of the outstanding amount would remain on the Port until all the payments are released to the Contractor. We trust the above is acceptable to the Port and request confirmation on the same In line with Industry practice, we request that neither of the parties shall be liable for any indirect losses and Consequential liabilities i.e. loss of Page 16 of 21 Yes, treated to have been deleted. Tender Condition Prevails Tender Condition Prevails

17 POLLUTION OF PORT WATERS SECTION V - CLAUSE 11 (a) & 11 (b) - CONTRACTOR TO INDEMNIFY PMB: a. Contract shall indemnify PMB and every member, worker and employee of the PMB against all action, proceedings, claims, demands costs and elsewhere and expenses.. claims, damages, proceedings costs, charges and expenses whatsoever in respect so thereof or in relation thereto. b. Notwithstanding that all reasonable and proper precautions may have been taken by the Contractor at all times during the period of agreement, the Contractor shall be nevertheless be wholly responsible for all damages caused by the Tugs (Supplied by the Contractor under this agreement to the Port), to the property of PMB during the period of agreement SECTION V CLAUSE 11 (A) - CONTRACTOR TO INDEMNIFY PMB: Contract shall indemnify PMB and every member, worker and employee of the PMB against all action, proceedings, claims, demands costs and elsewhere and expenses which may be made against PMB for or in respect of or arising out of any failure by contractor in the performance of the obligations under the contract profit, loss of use etc. In line with Industry practice, we request that neither of the parties shall be liable for any indirect losses and Consequential liabilities i.e. loss of profit, loss of use etc. There are some typo errors in this clause and since this is a liability and indemnity clause, we request you to kindly amend the clause as follows: Contractor shall indemnify PMB and every member, worker and employee of the PMB against all action, proceedings, claims, demands costs and elsewhere and expenses which may be made against PMB for or in respect of or arising out of any failure by contractor in the performance of the Page 17 of 21 Tender Condition Prevails Correction incorporated and corrected para to be read as Contractor shall indemnify PMB and every member, worker and employee of the PMB against all action, proceedings, claims, demands, costs and expenses which may be made against PMB for or in respect of or arising out of

18 shall not be liable for or in respect of any damages or compensation payable by law SECTION VI CLAUSE 1.1 RATE OF PENALTY: Penalty will be levied from the time and date of such in operation / unavailable after showing any down time to the credit of the Contractor upto the time and date of break down/ in operation as follows, in addition to non-payment of hire charges SECTION VI CLAUSE 1.2 RATE OF PENALTY: If the Port ascertains that there is substantial breach of the Agreement or Contractor has confirmed to fail in performing the Contractual obligation or there is willful misconduct by the Contractor or gross negligence by the Contractor, the contract shall be cancelled on one month notice to the hirer without assigning any reason. obligations under the contract. PMB shall not be liable for or in respect of or any damages or compensation payable by law.. We understand that both loss of hire and penalty will be charged o on prorata basis. We request you to kindly modify the clause as under: Penalty will be levied from the time and date of such in-operation / unavailable after showing setting off any down time available to the credit of the Contractor upto the time and date of break down/ in- operation as follows, in addition to non-payment of hire charges on pro-rata basis. We wish to inform you that the Tug procured for performing the contract is highly capital intensive in nature and is procured exclusively for this specified contract and thereby, any earlier termination of the contract would adversely affect the financials of the project. Thereby we request that Contractor is to be given atleast one month time period to rectify the default, failing which the contract will be terminated with One Months notice. Page 18 of 21 any failure by contractor in the performance of the obligations under the contract. PMB shall not be liable for or in respect or any damages or compensation payable by law.. Typographic error corrected. The corrected clause may be read as Penalty will be levied from the time and date of such in operation / unavailable after setting off any down time to the credit of the Contractor upto the time and date of break down/ in operation as follows, in addition to non-payment of hire charges

19 SECTION VII CLAUSE 1 FORCE MAJEURE: Delay on account of force majeure shall be understood to be permissible delay and is to be distinguished from non permissible delays. The permissible delays in this case comprises of the following (i) If the IRS Surveyor is not available for conducting the inspection and survey of the works. However on each and every occasion such delays should invariably be informed to PMB in writing failing which such claim will not be entertained. (ii) If any other work crops up during the course of the works ANNEXURE V SPECIMEN FORM OF BANK GUARANTEE BOND.. it shall continue to be enforceable till all the dues of the Port under or by virtue of the said Agreement have been fully paid and its claims satisfied or discharged or till the Chief Port Administrator, Port Management Board certifies that the terms and conditions of the said Agreement have been fully and properly carried out by the said successful Bidder(s) and accordingly discharges this guarantee. ANNEXURE V SPECIMEN FORM OF We draw your attention that the Clause is about Force Majeure which has no relationship with listed permissible delays like unavailability of IRS surveyor, etc. We request you to kindly modify the highlighted sentence as follows: The other permissible delays in this case comprises of the following (2) Refer to our above request, we request deletion of sub clause 5. Instead, we request you to kindly modify the clause as follows: The performance Bank Guarantee shall continue to be enforceable till (date). (note: this date will include 60 days claim period beyond the contract expiry date) (3) We further understand that PMB requires a PBG having initial 2 years contract plus a claim period of 60 days and also, PMB cannot directly request Page 19 of 21 Yes

20 BANK GUARANTEE BOND Unless a demand or claim under this guarantee is made on us in writing within six months from the date of expiry of the validity of the guarantee period we shall be discharged from all liability under this guarantee thereafter provided further that the Bank shall at the request of the Port but at the cost of contractors renew or extend this guarantee for such further period or periods as the Port may require ANNEXURE VI SPECIMEN CONTRACT AGREEMENT. submission of Performance Guarantee (i.e. 10% of the Contract value) as per clause 7 of Section I Instructions to Bidders SECTION IX PRICE SCHEDULE SL NO. 1: Fuel consumption of the Tug = lit/hour/engine Bank for extension of PBG as Bank issues BG on behalf of the Bidder. Therefore, request that the sentence is to be modified as follows: Unless a demand or claim under this guarantee is made on us in writing within six months from the date of expiry of the validity of the guarantee period we shall be discharged from all liability under this guarantee thereafter provided further that the Bank shall at the request of the Port but at the cost of contractors renew or extend this guarantee for such further period or periods as the Port may require. Kindly confirm. We draw your attention that various clauses stipulate Performance Bank Guarantee amount differently and we request that in line with other Major port Trust tenders, the PBG shall be fixed for an amount equivalent to 10% of the Annual Contract Value. Kindly confirm the same. (i)we understand that operational fuel consumption shall be include Auxiliary Engine fuel consumptions. Request the sentence is to be modified as Fuel consumption of the Tug = lit/hour Kindly confirm (ii) Further, we request that during the idling hours/ non-operational hours, tug shall be allowed to run on Auxiliary Page 20 of 21 Yes, fuel consumption of the Tug will be lit/hour.

21 engines if shore power is not available and fuel is to be on PMB s account. Page 21 of 21