Ref: - POW/VA/010 Date: - 27 TH JUNE,2014 TO, IMPERIAL HEIGHT WADHWA GROUP, GOREGAON (WEST) Kind Attn: - MR. DINESH KUTE/8879324272 Email Id:- dinesh.kute@wadhwadevelopers.com Sub: -Annual Maintenance Service Contract for attending your Cummins Make Engine Consisting with Alternator & Control Panel. 1) Model: -VTA 28 G5 ESN: - 25368857 KVA: - 625 KVA 2) Model: -VTA 28 G5 ESN: - 25374493 KVA: - 625 KVA Dear Sir, This is with reference to the above subject. Thank you for showing your interest for entering into Annual Service Contract with us as you aware we are the only Authorized OEM and Service Dealer of Cummins India Ltd. (Distribution Business Unit), for providing after sales services to the Cummins Engine. We have full Fledge Service Center at Taloja (Raigad), where we repair Engine / Engine sub Assemblies/test overhauled Engines, calibration of Injectors and Fuel Pumps are carried out. To offer our after sales service, we have a team of Service Engineers, who are trained from our Principals Training School at Cummins. We assure, our Service Engineer s visits can help you to maintain your Engine in proper working conditions. We are enclosing herewith our Service contract Format, which is self-explanatory along with our scope of work. Page 1
ANNUAL MAINTENANCE SERVICE CONTRACT Ref: - POW/VA/010 Date: - 27 TH JUNE,2014 Contract made between IMPERIAL HEIGHT,WADHWA GROUP,GOREGAON (WEST) 1) Model: -VTA 28 G5 ESN: - 25368857 KVA: - 625 KVA 2) Model: -VTA 28 G5 ESN: - 25374493 KVA: - 625 KVA Hereinafter referred to as Customer which expression shall unless otherwise provided its Executors, Successor, Administrators and Permitted assignees of the One Part, And M/s. () having its Head Office at 101, Dakshana Bldg, Next to Raigad Bhavan, Sect-11, CBD Belapur, Navi Mumbai 400 614, who is the Authorized OEM / Dealer of Cummins India Limited (Distribution Business Unit), Pune-411 038, hereinafter referred to as the Service Dealer which expression shall unless otherwise provided includes its Executors, Successors, Administrators and Permitted Assignees of Another Part. WHEREAS Customer is the owner of Diesel Generating Set comprising of Cummins Diesel engine coupled with Stamford/Equivalent alternator more particularly described in Schedule I attached herewith and has approached the Service Dealer for entering into a Service Contract for Cummins Diesel, Engine/Alternator/Diesel Generator Control Panel. Now, therefore both the parties hereto agree to the conditions mentioned here in below: DEFINITION Diesel Generating Set means D.G. Set fitted with Cummins engine, Stamford or equivalent and control panel of the D.G. Set only. The scope of the terms Diesel Generator Set is limited to above definition only and excludes any other system connected to DG set or any cooling tower, special exhaust piping, exhaust fans, blower fans, fuel tank etc. As such the same maintenance/repair or replacement of the aforesaid components shall not be covered under this contract and hence the same will not be in scope of work. OBJECTIVES 1. The objective of our AMC programme is : a) To obtain high equipment availability and minimize down time. b) To lower operating costs. Page 2
SCOPE OF WORK The Service Engineers calling on you during the contract period will carry out : 1. All routine maintenance service, as and when it becomes due. 2. Visual inspection of the engine. 3. Inspection of the engine operation. 4. Regular maintenance checks on engine including B & C checks whenever these checks are due, for B and C checks, customer will ensure that necessary kits, oil and any other spares recommended, are available for use to carry out the required checks. 5. Training for your staff on operation and maintenance of the engine. 6. To carry out inspection of the said D.G. Set, to carry out minor adjustment & repairs if (any) required. To give expert advice guidance to operator for the proper maintenance & efficient working of D.G. Set 7. Following will be checked during AMC Visit a) Engine will be checked as per our standard format. b) Alternator and D.G. Control Panel: i) Insulation resistance of all the windings of the alternator twice in a year. ii) Healthiness of the connection of AVR Assly. iii) Cell conditions/capacity of the battery v) Connections and setting of the instruments such as Relays, timer etc, of the panel. vi) All relevant parameters connected with the performance of the alternator will be checked in both load and no load conditions. 8. We undertake to maintain and give you a copy of the Fields Service Reports (FSR) made by the calling service engineer, which will be a complete record of maintenance, failures / breakdowns are attended along with the effective action taken. We shall also provide recommendations for improved performance of the engine. It is the onus of the customer comply with the recommendations as these will be based on the engine manufacture s (Cummins) recommendations. 9. Our service engineer are equipped with all Cummins Special tools as and when required for the routine servicing or repair of the engine. 10. Following repairs to DG Set shall beyond the purview of this contract (Out of Scope Work) : Any failures arising out of operational faults, failures due to wrong grade of fuel, accidents due to external factors, damage or excess wear to the maintained equipment or parts resulting from unusual or special operating environments, such as airborne contaminants or corrosive atmosphere. Replacement / reworking of acoustic enclosure / canopy, exhaust silencer, fuel tank, exhaust piping, replacement of battery and KWH / Energy meter, AVM pads and cleaning of diesel tank will be charged extra. Replacement of radiator / core. Engine Major overhauling and any repairs involving replacement of cylinder block, crankshaft, camshaft, cylinder head, piston, piston rings, fuel pump, nozzle, turbocharger. Alternator Rewinding. Control Panel Replacement of breaker / Power Contactors, AMF controller, PLCs, Bus Bar and power cables. Repairs of sub assemblies like Calibration of pump, injector, Repairs to governor, turbocharger, radiator electrical accessories fitted on the engine such as starting motor, generator / dynamo for changing batteries etc. & transportation / octroi charges etc. are at actual will be paid by the customer. Catastrophic failure. Page 3
Fault & complaint: low fuel level tank, no distilled water in batteries, emergency stop switch in pressed conditions, wrong operating problem will be charge extra. The contract does not include carrying out major repairs or major parts replacement such as Cylinder head, Gear case cover, Oil pump, Flywheel housing, Fuel injectors, Fuel pumps, Radiator etc. for such requirements separate quotations and advice will be given and repairs carried out with due notice / convenience to the customer. Although Radiator / Heat exchanger and Electrical accessories such as starter motor, battery charging alternator, alternator, panel board etc. are not included in this contract, we can arrange on request, for repairs / maintenance the Authorized dealers for your requirement as a paid service. The contract does not include any calibration / reconditioning / alignment services or major overhauls. Such works if required to be carried out will be charged at rates as laid down by Cummins India Ltd. (D.B.U.) This also is applicable in the case as major breakdown caused by accident, misuse, fire, etc. SERVICE DEALER SHALL: 1. SERVICE CHARGES : We inform to you that Annual Maintenance Service Contract covered 12 visits (i.e. one visit per month) excluding normal breakdowns 2-3 times if required. Annual Maintenance Contract is treated as only purely Labor Charges. If we provide more visits other than above, it will be considered as on chargeable basis. 2. Send service Engineer to visit the site once in a month as per contract terms, on working days and during normal working hours. 3. Sent quotation for required spares and supply the spares against P.O. as per term and conditions. 4. Undertake repairs of sub assemblies of engine i.e. fuel pump injectors etc, and major repairs to the engine, alternator, control panel will be charged extra. 5. We will timely educate to the operator or authorized person. CUSTOMER SHALL: 1. The customer shall provide the engine carrying out the routine servicing for which our service engineer has been called for under this contract. 2. The customer shall ensure that all requisite parts carrying out routine servicing under this contract are made available at the time of our service engineer s visit. 3. The customer shall ensure that fuel, lubricants and cleaning agents / coolant water / coolant raw water etc. required for operation and maintenance of the engine is provided as per Manufacturer s recommendation at the installation site. 4. a) It is also onus of the customer to bring to the notice of the contractor the following mandatory periodical maintenance (as and when) they become due (based on hours run / days lapsed) whichever is earlier. Page 4
Type of maintenance check : A B C D PERIODICITY *In engine operation hours Daily 300hrs. 1500 hrs. 5000 hrs. * Period in months 6 months 1 year 2 years (*whichever is earlier) b) All the required oil, filter parts to be procured from us by placing an order with our Service Department at least a week in advance. 5. Any failure damage or production loss due to the non adherence of the above maintenance checks due to parts / information / or any other reason will be to customer s account. 6. For D checks, it will be advisable to plan well in advance, so as not to upset your production schedule, and necessary spares ready for use. We will advise you of the duration your engine will be under such a check. 7. The customer shall ensure that necessary skilled / unskilled labour as required to assist our service engineer is provided as and when required. It is the customer s responsibility to stringently follow the operation and daily maintenance of the engine and its accessories as per manufacturer s recommendation and our advice. In case such instruction / advise are not followed, the contract can be terminated without prior notice. 8. Customer will ensure D.G. room cleanliness upkeep as per Cummins standards. 9. It is the customer s responsibility to implement any recommendations made by our Service Engineer to improve / correct the installation and operation of the engine to the entire satisfaction of our Service Engineer. 10. Check and maintain engine oil level, coolant level, fuel level, distill water level in battery, before starting the DG set. 11. Take care of DG set in accordance with the following: a) Not to load DG set beyond its rated capacity. b) In case of any abnormality observed by the customer, the customer shall forthwith stop the DG Set immediately, inform to the service dealer about the abnormality. c) Allow only the trained person to operate the DG set. d) Keep all electrical gauges on electric panel in good condition e) Duly maintain the log book for Generating set. 12. Allow the representative of the service dealer to enter the premises of the customer where DG set is located at all reasonable timed for the purpose of carrying out maintenance / repairs. 13. Not to shift the DG set from the existing location (i.e. location at which the said DG set is located at the time of signing of this contract) to any other location within or outside the factory premises without prior written approval of the service dealer. 14. Spare the DG set for carrying out the inspection as per service contract visit report. 15. Pay to the service dealer any sum or sums in a respect of extra visit/s (if any) and actual conveyance charges, immediately after receipt of the invoice for the same. 16. Honour and accept any or all the decisions taken by the service dealer from time to time. Page 5
17. Not to purchase spares, components assemblies from any other person other than the authorized Service Dealer. 18. Procure and make available all spare parts and other consumable maintenance spares required for repairs / replacement on the Engine /Alternator /Control Panel on the day scheduled for Service Engineer s visit from Authorized Service Dealer. 19. Provide all necessary skilled and unskilled labors, tools, crane facility, lifting tackle and other facilities as those may be required for completing the repairs. 20. Provide suitable decent accommodation for Service Engineer at such locations/sites where no alternative facilities/ accommodation is available. 21. Maintain record of maintenance, failures and its corrective action taken (if any). Suggestions/ recommendation for improved performance of the DG Set shall be implemented by the customer with immediate effect. 22. Not get the Engine/ Alternator / Control Panel repaired/serviced by any other Person other than authorized Service representative of the Service Dealer during the currency of this contract. 23. Not to reinstall or replace any Engine / Alternator / Panel board installed on the D.G. set, whether the same is in working condition or not, with any other engine, alternator, control panel whether removed from any other equipment of same type or application Or otherwise without prior approval of the Service Dealer. Any such Reinstallation or replacement shall be carried out by any at the instance of the service Dealer only. 24. If in emergency D.G. set fails to start in auto mode then customer should start the DG set in manual mode. 25. For any type of Major problem (If it will arise in future) during that condition customer should arrange Hiring D.G. Set (as a standby arrangement). BOTH THE PARTIES AGREE THAT 1. The services provided under this contract are guarantee for good workmanship. 2. This agreement is for periodical visits in respect of repair and routine maintenance of the engine / alternator / control panel only and the service dealer shall not be responsible for any failure / down time of the DG set. 3. This contract does not mean that the service dealer will maintain the DG set. The DG set will be checked by our representatives periodically and routine maintenance will be your responsibility. However, record of the routine maintenance carried out by you can be scrutinized by our service engineer during his visit. 4. Since major repairs cannot be taken up and completed in a day, you will have to give Prior notice for such work with our paid service terms and conditions forms, duly signed. So that the programme of our service engineers can be arranged. 5. Any statement made by our Service Engineer will be binding on us only if confirmed in writing by us. 6. Visit of our service dealer engineer will have to be acknowledged by the customer by signing the service reports without any delay. 7. Any major breakdown necessitating shifting of any of the components to the repair shop etc. does not fall within the purview of this contract. The loading, transporting and insuring of the components from your works to designated repair shop will be carried out by customers. 8. Timely payment of charges by the Customer to the Dealer shall the essence of this Contract. If not then service will be stopped with immediate effect. Page 6
9. Parts supply / Fitment and repairs: The customer shall purchase all Cummins spares recommended invoiced by us from our parts dept. as and when required Quotation for supply of such parts will be provided on request. The contract become null and void if the necessary parts are not purchased from us/ Authorized source and repairs carried out by any unauthorized source. 10. Free breakdown visits will be limited to 4 for 24 visits contract and 2 visits for 12 visits contract only and beyond these free breakdown visits, other breakdown visits will be either charged extra or same will be adjusted / considered as AMC visit from total number of AMC Visit. 11. If CUSTOMER required standby engineer for supervision while dg is running continuously during power shut down, same will be charged extra. For Restoration The various locations of the installed DG s duly graded as A, B & C depending upon the distance from our nearest branch while giving Service Calls, maximum available information with respect to the problems will be provide by Customer s Maintenance Personnel to enable our Service Engineer come prepared with necessary tools, drawings and spares. The Service Levels for reporting at site against breakdown call will be as follows: CATEGORY DISTANCE LEAD TIME FOR REPORTING A < 50km radius within 4 hours B 51-200 km radius within 12 hours C > 201 km radius within 24 hours Timelines for DG Set Restoration: Minor Breakdowns: Minor Breakdowns in AMC Scope shall be rectified and the equipment restored to normal operation within 24 hours of reporting. In Frame major Breakdowns: Major Breakdowns in AMC Scope shall be rectified and the equipment restored to normal operation within 240 hours after your approval /P.O Major break downs : out of Frame Repairs & Overhauling Major jobs like Engine overhauling, Alternator Re-Winding will be carried out within 4 to 5 weeks and 18 days respectively of reporting the Failure. Charges: 1) The charges for the above contract will be Rs.70,787/-,(Including service tax) for 12 visits in a year. 2) Charges for extra visit will be Rs. 4,500/- per day per engineer. ( Each Engines). Taxes / Levies : All taxes / Works contract tax, or any other taxes or statutory levies applicable to this contract shall be entirely borne and paid by the customer at actual and the same shall be in addition to the amount mentioned under the head of Charges. Page 7
Payment : 100% Advance payment along with firm order. All the statutory payments vi: Service Tax, VAT, ESIC, PF, PT for the said order will be our liability & responsibility. We will not provide any challan copies of the same. Validity : This contract will be effective from and will be valid for one year. Termination : a Either party has got a right to terminate this agreement by giving 60 days notice in writing and in such cases proportionate advance amount paid to dealer for the unexpired period shall be returned by the service dealer. b. This service contract will automatically cease to exist in the event of change of ownership of location of the aforesaid DG set from the said location and advance paid will be forfeited. c. No alteration or amendment to this agreement shall be treated as valid unless the same has been duly signed by a person duly authorized by the dealer. d. In the event of any other person other than authorized representative of the dealer dealing with the Diesel Genset in whatever manner for repairing the same then Service Dealer shall not be responsible for any of the obligations and conditions as stated in this contract and shall have right to terminate this contract forthwith and entire amount under the contract. e. In the event of customer purchasing any spares, components, assemblies from any other person, other than service dealer the service Dealer shall not be responsible for any of the obligations and conditions as stated herein above and shall have right to terminate this contract forthwith and forfeit the amount received under the contract. f. This contract shall become null and void if the above DG set is shifted from original location to elsewhere i.e. factory premises without consent of the dealer. FORCE MAJEURE Service Dealer shall not be liable in any manner whatsoever to the customer in the event of dealer being prevented or delayed in the performance of any of his obligation under this agreement due to conditions constituting force majeure which shall include but not limited to strikes, lock outs, concerted action of workman, breakdown of communication etc. Page 8
LIQUIDATED DAMAGES Service dealer shall not be responsible for: 1. Any consequential damages, losses, to the property of the customer. 2. Losses (if any) caused to the person or any other individual. 3. Expenses of whatsoever nature incurred by the customer directly or indirectly due to no availability/ failure of the DG set. 4. During the period of contract in all events the liability of the service dealer is restricted to repair of failure of the DG set only and our liability under this contract will be limited to 5% of value of the contract. ARBITRATION Any dispute or difference whatever between the parties or any other person or persons claiming thorough them arising out of or connection with this contract or regarding right or liabilities of the parties or regarding interpretation of this contract or any clause thereof including interpretation of this clause shall be referred to arbitration or to arbitrator one each to be appointed by service-dealer and other by customer respectively. The Arbitration proceedings shall be held at Mumbai, in accordance with the Indian arbitration act 1940 and any statutory modification or re-enactment thereof. Only competent Court at Mumbai shall have jurisdiction over the arbitration proceedings in respect of the matters required to be dealt with the court in accordance with the Indian Arbitration Act 1940 except the Court s exercising jurisdiction under the Arbitration. Save and except as above, no other court, tribunal commission or forum (including Consumer, Forum, commission or tribunal) shall have any jurisdiction over. Any dispute and that such jurisdiction is hereby specifically excluded. JURISDICTION All disputed arising out of this agreement shall be subject to jurisdiction of Mumbai Court s only. This contract is entered on this date 26 TH JUNE, 2014. Customer s Signature For () Designation Page 9
Service Charges are as follows:- Description Model Rates Total Visits VTA 28 G5 63,000/- 63,000/- 12 VISITS Annual Maintenance Contract VTA 28 G5 Charges For 2 X 625 KVA DG Sets ADD: service tax (12.36%) 7,787/- TOTAL RS.70,787 /-(Including Service Tax) Terms & Conditions:- 1) 100% advance payment against our Performa Invoice. 2) AMC Offer is valid only for 15 days from the date of submissions. 3) Service Tax, statutory tax rates will be applicable as on the date of invoice. 4) Interest @24% P.A. will be charged for all delayed payments. 5) Order once accepted cannot be cancelled. 6) All disputes will be subject to Mumbai Jurisdiction. 7) During the period of contract in all events the liability of the service dealer is restricted to repair Of failure of the DG set only & our maximum liability under this contract will be limited to 5% of Value of this contract. 8) Powerica will not be liable for any consequential or incidental loss or damages resulting from the Completed service event / supply of parts, anticipated profits or performance of the related equipments. 9) Your PO / WO will be only accepted as per the point mentioned in Powerica AMC Offer Letter. We hope you will find our offer competitive and release your P.O. /W.O to enter our Annual Maintenance Service Contract. Thanking You, Yours faithfully, Rajendra Waingankar Asst. Service manager C.S.T. NO : 27910330848C VAT. NO : 27910330848V SERVICE TAX Excise Reg : AAACP 3812 EST001 : AAACP3812EXM004 Page 10