Service STC

Special Terms and Conditions

For Leasing-in of Commercial Properties

1. Preamble
2. All the Leasing-in of commercial properties Service contracts placed through GeM shall be governed by following set of Terms and Conditions:

1. General terms and conditions for Goods and Services.
2. Service STC contained in this document.

• BID / Reverse Auction specific ATC

1. The above terms and conditions are in reverse order of precedence i.e. ATC shall supersede Service specific S TC which shall supersede GTC, in case of any conflicting provisions.

1. This document represents a Special Terms and Conditions (“STC”) the Service Level Agreement (SLA) governing the contract between the Buyer and Service Provider.

1. The purpose of this document is to outline the scope of work, Stakeholder’s obligation and terms and conditions of all services covered as mutually understood by the stakeholders.

2. Objectives and Goal

The objective of this document is to ensure that all the contractual terms and conditions are in place to ensure consistent delivery of services to buyer by service provider. The goals of this agreement are to:

• Provide clear reference to service ownership, accountability, roles and responsibilities of both parties
• Present a clear, concise and measurable description of services offered to the buyer
• Establish terms and conditions for all the involved stakeholders, it also includes the actions to be taken in case of failure to comply with conditions specified
• To ensure that both the parties understand the consequences in case of termination of services due to any of the stated reasons

The document will act as a reference document that both the parties have understood the above-mentioned terms and conditions and have agreed to comply by the same

3. Stakeholders

The main stakeholders associated with this agreement are:

1. Buyer: Buyer is responsible to provide clear instructions, approvals and timely payments for the services availed as per the contractual terms.

1. Service Provider: Service provider is responsible to provide all the required services in timely manner and to the satisfaction of buyer or its authorized representative. Service provider may also include seller supplier/ bidder/contractor, any authorized agents, permitted assignees, successors and nominees as per the context and as described in the agreement.

The responsibilities and obligations of the stakeholders have been outlined in this document. The document also encompasses payment terms and penalties in case of non-adherence to the defined terms and conditions.

4. Service Definition

This service may be utilized for entering in to a contractual agreement wherein commercial properties are leased by the legal owner (the lessor) to the government buyers (the lessee) allowing its temporary use/possession in return of mutually agreed rental amount for a certain period.

Lessor-  A lessor (Service Provider) is an individual and/or legal entity who possesses a property and leases or rents it for temporary use/possession in return of mutually agreed rental amount for a certain period.

Lessee - The lessee(Government Buyer) is the participant of the lease who gets the right to temporarily use/possess the property for a specific period and makes periodic payments to the lessor based on the contractual agreement

Service Scope

• Infrastructure- All necessary infrastructure and facilities required by the buyers should be made available by the service provider
• Maintenance & Security –
• Maintenance of the property (Fire-fighting arrangements, lighting arrangements, pest control, etc.)
• Security to keep the property safe. Ensuring the property is safe from any kind of theft, deterioration, exploration etc.

Considering the wide range of domain and specifications required for different propertys, buyers have been provided with a provision to upload the SoW as per their specific requirements.

5. Terms & Conditions –

• Lessee Obligation

1. The lessor reserves the right to carry out inspection by a team of officials of the property premises at reasonable hours and at mutually convenient time, during the Lease Term.
2. All the maintenance charges incidental to the utilization of the property/ premises viz. electrical consumption, water supply, power back up etc. shall be borne by lessee.
3. The Lessee shall keep the premises/ property in good condition and shall carry out all minor repairs at his own cost and expenses. However, the Lessee shall not make any material addition or alteration to the property without the previous consent of the Lessor in writing.
4. The timely payment shall be made by the lessee as per the payment schedule as defined by the lessee in the tender/bid.

• Lessor Obligation

1. During the Lease Term, the Lessor cannot, without the prior written consent of the Lessee, sub-let, sell, assign, transfer, mortgage, or charge its rights in the asset as a whole or in part or parts thereof to any other person.
2. In the event of the property infrastructure not complying with the requisite requirements as mentioned by the lessee in the scope of work, the non-compliance/ defect shall be rectified or a resolution be provided to the satisfaction of the lessee by the Lessor within a period not exceeding fifteen days or any other time period as mentioned by the Lessee, , failing which, the lessee reserves the right to terminate the lease  at the risk and cost of the Lessor.
3. The Lessor, at its cost and expenses, shall comply with and cause the property to with all the applicable laws including municipal laws, rules, orders, regulations and ordinances affecting the property. The Lessor shall indemnify and keep indemnified the Lessee against all actions, proceedings, suits, claims, demands, losses, damages, costs, charges, and expenses incurred or suffered by the Lessee as a reason of any non-compliance of such laws by the Lessor.
4. The property area offered should have construction approval/clearances from all Central/State Government Departments as may be necessary by the local authorities and should be legally free from all encumbrances
5. The Lessor, at its own cost and expense, shall be solely and exclusively responsible for timely payment of all the applicable (existing and future) taxes/charges/fees including stamp duty, registration charges etc. in respect of the property.
6. The Lessor, at its own cost and expense, shall ensure that the property and the fit-outs are insured during the period of lease to cover all kinds of risks including structural damage, damage by fire, earthquake, riots and other risks. In the event of default i.e. failure of the Lessor to maintain the adequate insurance, the Lessor agrees and undertakes to indemnify and hold the Lessee harmless against any and all liabilities, losses, damages, claims, expenses suffered by the Lessor.
7. The lessor is responsible for managing the activities of its personnel and will hold itself responsible for any misdemeanours.
8. The security of the property and running of lifts with requisite manpower for operation shall be the responsibility of the lessor. The cost of deployment of External Security for property will be met by the lessor, at its cost and expense.
9. The lessor is responsible for managing the activities of its personnel and will hold itself responsible for any misdemeanours.
10. The property should have the provision for 24 Hrs running water supply and utility facilities viz. electricity continuity, electricity back-up, sufficient arrangements for public utilities (toilets etc.), all necessary electrical fixtures such as switches, power points, provision for Air Conditioners etc., unless specified otherwise.
11. Lessor must ensure upkeep of the property including the aesthetics. All the expenses so incurred in activities viz. painting of the property, boundary walls, the entire exterior façade, painting or polishing of all doors, windows,

ventilators, grills, etc. every 3 years or otherwise specified. shall be borne by the lessor.

12. The lessor shall attend all the complaints, if any during the leasing period without any cost chargeable to the lessee. All the costs for Maintenance, Major repairs as and when necessary by the lessee to be carried out by the lessors as and when required.
13. The cost of repair and maintenance of civil/electrical installation including Air Conditioning plant, power backup (generator sets), lifts and common areas etc. will be the responsibility of the lessor. Routine replacement of electrical fittings like bulbs, tubes and other consumables will be done by the lessee.
14. Once the possession of the property is returned to the Lessor, the Lessor shall refund and repay to the Lessee, if there is any Security Deposit after deduction all the dues and liabilities categorically attributable to the Lessee at mutually agreed rate, if any.
15. During the lease term, lessors shall not allow display of any hoardings/posters on the part of the property without due permission from the lessee
16. Lessee shall have the right to incorporate/install any equipment’s viz. electrical fittings and fixtures, counters, safes, safe deposit lockers, cabinets, strong room, partitions, furniture etc. to meet the functional requirement.

Lessee shall have the right to remove all such equipment’s while returning the possession of the property to the lessor.

6. Payment Terms

i.The Payment Procedure shall be as specified in the General Terms and Conditions of GeM and the Payment Schedule will be as defined by the buyer.

ii.The payment will be made to the service provider as defined by the buyer on submission of the bill by the service provider and after deducting penalty amount, if any.

7. Formula Used –

Total Price = A*B*C

Where,

A = Number of months for leasing of property

B= Rate per month (to be quoted by the service provider)

C= Number of units

8. Breach of Contract and Penalties

(i) Breach of SLA is defined as performance lower than requisite performance in this agreement.

(ii)  The cumulative penalty cannot exceed 10% of the contract value. The contract may be terminated by the Buyer once this limit is breached without any prejudice to other contractual remedy.

(iii) Penalties will be levied on the service provider, for the violation of Service Level Agreement of the contract as mentioned below: