FORM DP-35 (REVISED 2002)

GOVERNMENT OF PAKISTAN
MINISTRY OF DEFENCE
DEFENCE PRODUCTION DIVISION

GENERAL CONDITIONS GOVERNING

CONTRACTS OF
DEFENCE EQUIPMENT/ STORES

DIRECTORATE GENERAL DEFENCE PURCHASE

RAWALPINDI

Revised April 2002

 FOREWORD
Procurement is a specialized activity. It covers*'awareness
of financial regulations, thorough knowledge of procurement
procedures and acumen to implement rules. The aim of
Procurement Agency is to attain competitive prices and procure
the quality equipment in time. The foundation stone in the process
is certainly the procedures and rules which have to be clearly
comprehensive and updated from time to time and implemented in
letter and spirit.
An attempt has been made to revise the earlier edition of
DP-35 (Revised in 1960), to bring it in line with the changing
environment/conditions related to defence procurement of stores
through our defence suppliers. During revision process input was
gleaned from all concerned agencies like Procurement
Directorates, Military Finance, Controller Military Accounts (DP),
Military Accountant General, Attache Defence Procurement and
Defence Production Division.
Efforts have been concentrated on compiling DP-35 in a
way that it covers all possible general conditions governing the
contracts. It is hoped that this revised edition of DP-35 will serve
the Procurement Agencies to efficiently handle purchases of all
types of defence equipment and provide better guidelines to the
Suppliers to cater for the requirements of defence services.
I am aware that such documents can never be final and
complete and, therefore, changes when necessitated because of
the changed environments and conditions will continue to be
incorporated after approval of the competent authority.

Air Vice Marshal

Director General Defence Purchase
(M Arif Pervaiz)

Revised April 2<H>2

 LIST OF CONTENTS

S.NO. SUBJECT PAGE NO.

PART-I
PRELIMINARIES TO CONTRACTING

1. Issue of ITs 1
2. Response to ITs 4
3. Extension in Opening Date 7
4. Reasons for Not Quoting 8
5. Opening of ITs 8
6. Rejection of Offers 11
7. Validity of Offers 11
8. Availability of Raw Material 12
9. Import License 12

PART-II
CONDITIONS GOVERNING CONTRACTS

1. Definitions/Terminologies 13
2. Laws Governing the Contracts 21
3, Variations 21
4. Parties to the Contract 21
5. Person Authorized for Signing 21
Documents/ Contracts
6. Notices on Behalf of Purchaser 21
7. Contracts with Rates Subject to Confirmation 22
8. Import License (Material) 22
9. Raw Material 23
10. Pre-Inspection Check of Stores by Supplier 25
11. Inspection and Allied Matters 25
12. Return of Specifications 37
13. Quotation of Rates by the Suppliers 37

\piil 20(12
14. Clause Regarding Warranty as to Quality 40
15. Delivery Period 40
16, Non-Delivery of Stores Within N 41

Scheduled Delivery Period.

17. Extension of Delivery Period. 43
18. Recoveries 45
19. Duties and Taxes 50
20. Freight and Shipment 52
21. Insurance 54
22. Discrepancies-Responsibility for Acceptance of 54
23. Insolvency and Breach of Contracts 56
24. Packing 57
25. Marking 59
26. Documents 59
27. Handling Charges 66
28. Publications and Catalogues 66
29. Licenses 66
30. Subletting 66
31. Security Deposit 67
32. Return of Earnest Money 71
33. Indemnity 72
34. Gratuities/ Commission/ Gifts 72
35. Official Secret Act - 1 9 2 3 73
36. Termination of Contract 73
37. Book Examination 75
38. Correspondence 76
39. Furnishing of Information by the Supplier 76
40. Force Majeure 76
41. Terms of Payment 78
42. Schedule of Payment 81
43. Arbitration 81
44. Court Jurisdiction 82
45. Appeal Procedure 83

April 20(12
 PART-III
ANNEXES

1. Annex A 84
2. Annex B n 85
3. Annex C 87
4. Annex D 96
PART-IV
ABBREVIATIONS

1. Abbreviations 98

Note:- For complete copy of DP-35 please contact AD-Registration at

adregn@dgdp.gov.pk