APPENDIX - A-10

MILESTONE PAYMENT FORMULA

NANDASAN SURFACE FACILITIES PROJECT (NSFP), MEHSANA ASSET
(A) MILESTONE PAYMENT FORMULA (NSFP)

Sl. No. Heads % Milestone (%) Milestone for Payment

Upon submission of declaration by the contractor along with cover note that Insurance Policies have
85% been taken as per contractual terms and verification of cover note with the checklist provided in
Insurance 100% clause 7.3.13 of GCC and proof of 100% premium paid to Insurance Company.
1 15% On acceptance of insurance policies in all respects by ONGC.
Note: In case the bidder quotes for insurance charges more than 1.5% of the contract value, then the reimbursement shall be initially restricted to 1.5% of contract value and
balance towards the insurance charges shall be payable after completion of the project in all respects and accepted by ONGC.

Upon completion of Pre Engineering Surveys and acceptance of the same by Company and submission
10%
of all licenses of AOPMT as per the details provided in scope of work.
2 Design & Engineering 5% 80% Upon progressive completion of Design and Engineering and acceptance by Company.

10% Upon submission of As-built drawings and vendor dossier/ Operating manuals.

Upon progressive placement of LOIs/purchase orders and acceptance by Vendors. The contractor to
5%
submit copies of LOIs /purchase orders & acceptance by Vendor

10% Upon progressive approval of PS (Purchase specification)

3 Procurement 45% Upon progressive dispatch from vendor works and submission of supporting documents thereof as
40%
listed in GCC 3.2.10
Upon progressive Arrival of material at site/ fabrication yard and submission of supporting documents
40%
thereof as listed in GCC 3.2.10

5% Upon completion of all miscellaneous items required for the project.

On progressive completion of civil jobs (foundation wise/structure wise as per approved planning
35%
package)

Upon progressive completion of mechanical erections (equipment/package wise as per approved

30%
planning package)

Upon progressive erection/installation of piping, valves etc. (piping loop wise as per approved planning
Fabrication/ Construction/ Erection/ 15%
4 25% package)
Installation
Upon progressive completion of electrical jobs (equipment/module/system/package wise as per
10%
approved planning package)

Upon progressive completion of instrumentation jobs (equipment/module /system/package wise as

5%
per approved planning package)

5% On completion of Insulation, Painting & Fire Proofing

Upon progressive completion (equipment wise) of hook up, Testing & pre-commissioning (as per
75%
approved planning package)
5 Hook up, Testing, pre-commissioning 15%
Upon submission of required statutory certificates for the equipment/ system/ facilities supplied
25%
under LSTK scope
75% Upon successful completion of PGTR of facilities
6 Commissioning 10%
25% Upon completion of punch point
5% Upon progressive start of dismantling activities

Dismantling/ Demolition of existing 25% Upon progressive completion of dismantling/demolistion of existing facilities
facilities, Site filling and levelling of
Upon progressive disposal of dismantled/ demolished facilities at identified location (Provided in the
7 existing Nandasan GGS (refer Vol-II and 100% 30%
Special Conditions of the Contract for bid doscument)
details)
Upon Completion of filling and site grading after dismantling/ demolition of equipment at existing
40%
Nandasan GGS (as per bid requirements)

50% Upon Delivery of Software licenses (as defined in Special Conditions of the Contract)
Mobile Application Based Online 30% Upon Finalization of Planning Package
8 100%
Project Monitoring Tool (AOPMT) 10% Upon Commissioning of the Surface Facilities
10% Upon completion of dismantling/ demolition, site filling levelling of existing Nandasan GGS
Note:
The percentage indicated against individual heads of milestone pertaining to surface facilities i.e. Design & Engineering, Procurement, Fabrication/ erection/ laying/
1 installation, Hook up, testing, pre commissioning and commissioning are w.r.t. the amount quoted in Item A-1(i) & A-1(ii) of price schedule for combined value of Material plus
Services for each facilities.
The Percentage indicated against the individual head of milestones for "Dismantling/ Demolition of existing facilities, site filling and levelling of existing Nandasan GGS" are
2 w.r.t the amount quoted for combined value of Material plus services quoted under A2 .
The Percentage indicated against the individual head of milestones for "Mobile Application Based Online Project Monitoring Tool (AOPMT)" are w.r.t the amount quoted for
3 combined value of Material plus services quoted under A3.
The Milestones pertaining to 'Procurement' (LOI & PS) is applicable where the selected vendor is from ONGC’s vendor list or where PQD has already been approved by ONGC
before placement of LOI. For others, where PQD is not approved before LOI, payment against these milestones (i.e. upon placement of LOI and approval of Purchase
4 specification/ data Sheets by company) will be issued together and contractor will get 15% subsequent to combined completion of both the milestones i.e. LOI+PS.

Further breakup in above Milestone Weightage i.e. Design & engineering, Procurement, site job and Hook up, testing, pre commissioning & commissioning etc. (in work
5
breakdown level 2, 3, 4 etc., as per requirement) shall be finalized with mutual discussion with contractor during Planning package/ billing break up finalization.

Further Breakdown of milestones weightages pertaining to "Dismantling/ Demolition of existing facilities, site filling and levelling of existing Nandasan GGS" shall be done
6 based on weightages decided for equipment, foundation, pavments, roads, etc. in the detailed dismantling/ demolition plan. Please refer Part-IV Vol-II and SOW for details.

Basis of milestone achievement shall be contractual quantities (or quantity/details as given in preliminary MTO for procurement wherever contractual quantities are not
7
provided. However, if revised MTO is available, same shall be considered).
8 The definition of Punch Point & Punch list shall be taken as mutually explanatory of one another and dealt with as defined at para 1.1.30 of GCC.
In line with note 12 of Price Schedule (Appendix A-3), if the price quoted against A2, of I-Lumpsum of price schedule i.e. Appendix A-3, is less than …. % of the value quoted
9 against A1 of I-Lumpsum of price schedule i.e. Appendix A3, the combined value of material & services quoted against A1 and A2 shall be redistributed in a manner to make
the ratio as brought out at note 12 of price schedule i.e. Appendix A-3
 (B) TAXES/DUTIES REIMBURSEMENT TABLE

Sl. No. Description Percentage

Reimbursable to actual limited to the amount indicated herein on

submission of documentary proof viz invoice, challan and return etc. as
IGST/ CGST the case may be containing the particulars as per relevant GST Act,
1 and SGST/ 100% alongwith relevant supporting documents for assessment and payment of
UTGST tax as subject to provisions of change in law as per as per clause 7.6
(subsequent legislation) of GCC.

Note: Taxes & duties shall be paid only in Indian Rupees.