The Sand Supply Contract Agreement is a crucial document for businesses operating in India's construction and infrastructure sectors. It is specifically designed to formalize the commercial relationship between sand suppliers and purchasers while ensuring compliance with India's complex regulatory framework. The agreement becomes necessary when parties need to establish a structured supply arrangement for sand, whether for construction projects, manufacturing, or infrastructure development. It addresses critical aspects such as supply quantities, quality specifications, delivery schedules, and pricing mechanisms, while incorporating compliance requirements with various Indian laws including the Mines and Minerals (Development and Regulation) Act, environmental regulations, and state-specific mining rules. The document is particularly important given the increasing focus on regulated and sustainable sand mining practices in India, and the need to maintain proper documentation for regulatory compliance.
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1. Parties: Details of the supplier and purchaser, including registered addresses and company registration numbers
2. Background: Context of the agreement, including supplier's authority to extract and supply sand, and relevant permits/licenses held
3. Definitions: Definitions of key terms used throughout the agreement
4. Supply Terms: Core obligations regarding quantity, quality, and specifications of sand to be supplied
5. Delivery Terms: Details of delivery schedule, location, transportation arrangements, and associated responsibilities
6. Price and Payment: Pricing structure, payment terms, invoicing, and payment mechanisms
7. Quality Control: Sand quality specifications, testing procedures, and rejection rights
8. Compliance Requirements: Obligations regarding environmental laws, mining regulations, and necessary permits
9. Representations and Warranties: Warranties regarding quality, legal compliance, and authority to supply
10. Term and Termination: Duration of agreement and circumstances for termination
11. Force Majeure: Events excusing performance and related procedures
12. Dispute Resolution: Mechanism for resolving disputes including jurisdiction and governing law
13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Environmental Management Plan: Detailed procedures for environmental protection during extraction and transportation, required when supplying from environmentally sensitive areas
2. Insurance: Specific insurance requirements and coverage details, recommended for high-value contracts
3. Performance Security: Details of bank guarantees or performance bonds, typically included for large supply contracts
4. Sustainability Practices: Specific requirements for sustainable mining practices, important for government contracts or environmentally conscious buyers
5. Sub-contracting: Terms governing use of sub-contractors for extraction or transportation, relevant when supplier uses third parties
6. Price Adjustment Mechanism: Formula for price adjustments based on market conditions or input costs, useful for long-term contracts
1. Schedule 1 - Sand Specifications: Detailed technical specifications of sand including grain size, quality parameters, and testing methods
2. Schedule 2 - Delivery Schedule: Detailed timing and quantity requirements for deliveries
3. Schedule 3 - Price Schedule: Detailed pricing structure including any volume-based discounts
4. Schedule 4 - Compliance Documents: Copies of relevant permits, licenses, and environmental clearances
5. Schedule 5 - Quality Testing Procedures: Detailed procedures for sampling and testing sand quality
6. Schedule 6 - Site Details: Details of extraction sites and delivery locations
7. Appendix A - Environmental Compliance Checklist: Checklist of environmental compliance requirements and documentation
8. Appendix B - Safety Procedures: Safety procedures for handling and transportation of sand
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