If the rates/prices quoted by the
successful Bidder
for certain items of the Schedule of
quantities
(wherever such rates/prices have been
called for in
the bids) are found to be having a
variation of +/-
25% or above in relation to the
Employer's
estimate of the cost of work to be
performed
under the Contract, then such items of
works shall
be identified as abnormally high rate
(AHR) or
abnormally low rate (ALR). After
evaluation of the
rate/price analysis which includes
early cash flow
analysis, Employer/NTPC may require
that the
amount of Performance be increased
at the
expense of the recommended Bidder
by 25% of
the value of variation in respect of ALR
item, to
protect Employer against financial loss
in the event
of default by the Contractor under the
Contract, to
carry out such low rated items of
work, if award is
placed on such recommended bidder.
Further the
Employer/ NTPC may require the
contractor to
provide a suitable undertaking to
execute the
items of works to complete the entire
work under
the contract. The items for which
performance
security is enhanced shall be identified
separately
in the contract. Upon execution of
such identified
items, the enhanced value of
Performance security
will be reduced every three months on
a pro-rata
basis.