GCC for Works - New
clause - Bonus for early completion of
work
· Contractor
is entitled a Bonus for early completion of work i.e., before the prescribed
date for completion.
·
New
clause in GCC for works
·
Para No. 17 C of GCC – General Conditions
of Contracts for Works
·
Bonus - 1 % of Contract value
for each 30 days early completion of work.
·
Less
than 30 days shall be ignored for working out the Bonus
·
The
completion date reckoned - the date of
issuance of completion certificate by the Engineer.
·
Maximum Bonus is 3 % of the
original contract value.
·
Conditions for availing
Bonus by Contractors are :
1.
Open Tenders having value of more than Rs. 20 Crores
2.
Original period of completion is 12 months or more
3.
No reduction in original scope of work by more than 10 %
·
This
clause is very good. Because it
encourages the contractors for early completion of work for availing the Bonus
to the extent of 3 % of Contract value. Also avoids the time over runs and cost
over runs in Projects.
Example:
A work costing 25 Crores whose
completion period is 18 months was awarded to the Contractor ABC Co, ltd on
01.10.2019. The completion date for this
work is 31.03.2021. The scope of work is not reduced during the contract
period. If the contractor completes the work on 15.12.2020, what is the
eligible amount of Bonus entitled to the Contractor?
Answer:
Saving period: 31.03.2021
Minus 15.12.2020 = 116 days.
Bonus is 1 % for every 30 days
subject to maximum of 3 %
Bonus calculation = 3 % of 20 Crores = Rs. 60 Lakhs
Suggestions:
1.
The
limit of Rs. 20 Crores can be reduced to Rs. 5 Crores or any reasonable limit
2.
The
Bonus shall be 0.25 % for every one week in lieu of 1 % for every 30 days
period.
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