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ON
WIDENING AND STRENGTHENING OF EXISTING SL/IL TO TWO LANE
CARRIAGE WAY WITH PAVED SHOULDERS INCLUDING GEOMETERIC
IMPROVEMENT FROM KM 68/260 TO 118/370 OF NH - 59
EPC CONTRACTOR
PREPARED FOR
STATE BANK OF INDIA, IFB
KG MARG, NEW DELHI
PREPARED BY
ITCOT CONSULTANCY AND SERVICES LIMITED
(Formerly Industrial and Technical Consultancy Organization of Tamil Nadu Limited)
Joint Venture of ICICI, SIDBI, IFCI, SIPCOT, TIIC, SIDCO & BANKS Delhi Office: 407, Akashdeep
Building, 26-A, Barakhamba Road, New Delhi - 110001 Phone: 011 23327226, 23752989
Registered Office: 50-A, Greams Road, Chennai 600 006
Phone 044-282903 24, 044-28294365
LIE Report of M/S. JKM INFRA PROJECTS LTD.
DECEMBER-2016
Contents
1 SALIENT FEATURES OF THE PROJECT...............................................................
2 ABOUT THE COMPANY......................................................................................
2.0 THE PROJECT..................................................................................................
2.0.1 SCOPE OF WORK FOR CONTRACTOR AS LISTED IN THE AGREEMENT......
2.0.2 SCOPE OF THE WORK PHYSICAL QUANTIFICATION................................
2.0.3 SCOPE OF WORK FOR AUTHORITY.........................................................
3 PHYSICAL PROGRESS OF THE PROJECT..........................................................
3.0 PHYSICAL PROGRESS ROAD WORKS..........................................................
3.1 PHYSICAL PROGRESS STRUCTURE WORKS................................................
3.2 Site Visit Observations.................................................................................
3.3 UTILITIES SHIFTING AND OTHER HINDRANCES.............................................
4 FINANCIAL PROGRESS....................................................................................
4.0 PROJECTED WORK PROGRAM.......................................................................
4.0.1 COMPARISON PROJECTED WORK SCHEDULE DECEMBER 2016 TO
MARCH 2016......................................................................................................
5 COMMENTS ON STOCK OF MATERIAL, MACHINERY AND MANPOWER........
5.0 STOCK OF MATERIAL....................................................................................
5.1 MACHINERY AVAILABLE................................................................................
5.2 MANPOWER DEPLOYED................................................................................
6 COMMENTS ON CASH FLOW OF THE COMPANY..............................................
7 CLAUSE FROM THE AGREEMENT....................................................................
7.0 PERFORMANCE SECURITY AND RETENTION MONEY.....................................
7.0.1 PERFORMANCE SECURITY......................................................................
7.0.2 RETENTION MONEY................................................................................
7.1 RIGHT OF WAY..............................................................................................
7.2 UTILITIES AND TREES...................................................................................
7.3 FORCE MAJEURE EVENTS.............................................................................
8 COMMENTS BY AUTHORITY............................................................................
9 CONCLUSION..................................................................................................
10 Annexure: I Projected Construction Program..................................................
Sr.
No. Particulars Details
Defects Liability
7 Period 2 Years commencing from the date of Provisional Certificate
Date of
8 Appointment 06-Sept-2014
Current Date of
9 Completion
Contract Value
(Rs. In Lakh) 14900.00
Performance
9 Guarantee 7.5% of the Contract Amount
Performance
Guarantee
10 (Rs. In Lakh) 1117.5
11 Retention Money Maximum Shall not increase 5% of the Contract Price
Retention Money
12 (Rs. In Lakh) 745.00
Mobilization
13 Advance 10% of the Contract Amount
Amount of
Mobilization
Advance
14 (Rs. In Lakh) 1490.00
The ministry of Road Transport and Highways had accordingly invited proposals by
Request for Annual Qualification, for short listing of bidders for NH works to be taken
up on EPC mode.
After the evaluation of the bids the authority had accepted the bid of M/s. JKM
Infraprojects Limited, and issued its Letter of Acceptance No. 5595 dated 29.05.14 for
widening and strengthening of existing single lane/ intermediate lane to two lane
carriage way with paved shoulder including geometrics improvement from Km 68/260
to Km 118/370 of NH 59 in the State of Orissa on EPC basis.
Subject to and on the terms and conditions of this Agreement, the Contractor shall
undertake the survey, investigation, design, engineering, procurement, construction,
and maintenance of the Project Highway and observe, fulfill, comply with and
perform all its obligations set out in this Agreement or arising hereunder.
The Contractor shall comply with all Applicable Laws and Applicable Permits
(including renewals as required) in the performance of its obligations under this
Agreement.
The Contractor shall discharge its obligations in accordance with Good Industry
Practice and as a reasonable and prudent person.
The Contractor shall remedy any and all loss or damage to the Project Highway from
the Appointed Date until the end of the Construction Period at the Contractor's cost,
save and except to the extent that any such loss or damage shall have arisen from
any default or neglect of the Authority.
The Contractor shall remedy any and all loss or damage to the Project Highway
during the Defects Liability Period at the Contractor's cost.
The Contractor shall remedy any and all loss or damage to the Project Highway
during the Maintenance Period at the Contractor's cost, save and except to the extent
that any such loss or damage shall have arisen on account of any default or neglect
of the Authority or on account of a Force Majeure Event.
The Contractor shall, at its own cost and expense, in addition to and not in derogation
of its obligations elsewhere set out in this Agreement:
(f) Support, cooperate with and facilitate the Authority in the implementation and
operation of the Project in accordance with the provisions of the agreement.
(g) Ensure that the Contractor and its Sub-contractors comply with the safety and
welfare measures for labour in accordance with the Applicable Laws and Good
Industry Practice;
(h) Keep, on the Site, a copy of this Agreement, publications named in this
Agreement, the Drawings, Documents relating to the Project, and change of
Scope Orders and other communications given under this agreement. The
Authority's Engineer and its authorized personnel shall have the right of access
to all these documents at all reasonable times;
(I) cooperate with other contractors employed by the Authority and personnel of
any public authority; and
(j) Not interfere unnecessarily or improperly with the convenience of the public, or
the access to and use and occupation of all roads and footpaths, irrespective of
whether they are public or in the possession of the Authority or of others.
The Contractor shall not sub-contract any Works in more than 70% (Seventy
Percent) of the total length of the Project Highway and shall carry out Works
directly under its own supervision and through its own personnel in at least
(thirty per cent) of the total length of the Project Highway. Provided, however,
that in respect of the Works carried out directly by the Contractor, it may enter
into contracts for the supply and installation of Materials, Plant, equipment,
road, furniture, safety devices and labour, as the case may be, for such Works.
For the avoidance of doubt, the Parties agree that the Contractor may sub-
divide the aforesaid length of 30% (thirty per cent) in no more than 5 (five)
sections of the Project Highway. The Parties further agree that all obligations
and under this Agreement for the entire project Highway shall at all times
remain with the Contractor. In the case of a Consortium the Parties also agree
obligation of the Contractor to carry out Works directly in at least 30% (thirty
percent) of the total length of the Project Highway shall be discharged solely by
the Lead Member.
In the event any sub-contract for. Works, or the aggregate of such sub-
contracts with any Sub-contractor, exceeds 5% (five percent) of the Contract
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Price; the Contractor shall communicate the name and particulars, including
the relevant experience of the sub-contractor, to the Authority prior to entering
into any such sub-contract. The Authority shah examine the particulars of the
sub-contractor from the national security and public interest perspective and
may require the Contractor, no later than 15 (fifteen) business days from the
date of receiving the communication from the Contractor, not to proceed with
the sub-contract, and the Contractor shall comply therewith.
In the event any sub-contract relates to a sub-contractor who has, over the
preceding 3 (three) years, not undertaken at least one work of a similar nature
with a contract value exceeding 40% (forty per cent) of the value of the sub-
contract to be awarded hereunder and received payments in respect thereof for
an amount equal to at least such 40% (forty per cent), the Authority may, no
later than 15 (fifteen) business days from the date of receiving the
communication from the Contractor, require the Contractor not to proceed with
such sub-contract, and the Contractor shall comply therewith.
It is expressly agreed that the Contractor shall, at all times, be responsible and
liable for all its obligations under this Agreement not withstanding anything
contained in the agreements with its Sub-contractors or any other agreement
that may be entered into by the Contractor, and no default under any such
agreement shall excuse the Contractor from its obligations or liability
hereunder.
The Contractor shall ensure that the personnel engaged by it or by its Sub-
contractors in the performance of its obligations under this Agreement are at all
times appropriately qualified, skilled and experienced in their respective
functions in conformity with Good Industry Practice.
The Authority's Engineer may, for reasons to be specified in writing, direct the
Contractor to remove any member of the Contractor's or Sub-contractor's
personnel. Provided that any such direction issued by the Authority's Engineer
shall specify the reasons for the removal of such person.
The Project Highway or any part thereof shall not be used in any manner to
advertise any commercial product or services.
The Contractor shall bear full risk in and take full responsibility for the care- of
the Works, and of the Materials, goods and equipment for incorporation therein,
from the Appointed Date until the date of Provisional Certificate (with respect to
the Works completed prior to the issuance of the Provisional Certificate) and/or
Completion Certificate (with respect to the Works referred to in the Punch List),
save and except to the extent that any such loss or damage shall have arisen
from any default or neglect of the Authority.
The Contractor shall be responsible for procuring of all power, water and other
services that it may require.
Sr.
No. Particulars Details Remarks, If any
Location yet to be
12 Toll Plaza Nos. 1 finalized
13 Major Intersection Nos. 2
14 Minor Junction KM 23
Pedestrian/ Cattle
Underpass/Elephant
15 Underpass Nos. 7
16 Vehicle Underpass Nos. 0
The above mentioned scope of work has been further broken up, road wise and
structure wise and state wise as well.
Road Works
Structure Works
4 Box Culverts 84
5 Bus Bay 16
6 Toll Plaza 1
7 Major Intersection 2
8 Minor Junction 23
The Authority shall, at its own cost and expense, undertake, comply with and perform
all its obligations set out in this Agreement or arising hereunder.
The Authority shall be responsible for the correctness of the Scope of the Project,
Project Facilities, Specifications and Standards and the criteria for testing of the
completed Works.
(a) Upon receiving the Performance Security, the Right of Way, within a period of
15 (fifteen) days from the date of this Agreement, on no less than 90% (ninety
per cent) of the total length of the Project Highway;
(b) Approval of the general arrangement drawings (the "GAD") from railway
authorities to enable the Contractor to constrict road over-bridges/ under-
bridges at level crossings on the Project Highway in accordance with the
Specifications and Standards, and subject to the terms and conditions specified
in such approval, within a period of 60 (sixty) days from the Appointed Date,
and reimbursement of all the costs and expenses paid by the Contractor to the
railway authorities for and in respect of the road over-bridges/under bridges;
and
(c) All environmental clearances as required
the Damages payable by the Authority under the aforesaid - shall not be
additive if they arise concurrently from more than one cause but relate to the
same part of the Project Highway.
Both the parties agree that payment of these Damages shall be full and final
settlement of all claims of the Contractor and such compensation shall be the
sole remedy against delays of the Authority and both parties further agree this
as final cure against delays of the Authority.
(a) Upon written request from the Contractor, and subject to the Contractor
complying with Applicable Laws, provide reasonable support to the Contractor
in procuring Applicable Permits required from any Government Instrumentality
for implementation of the Project;
(b) Upon written request from the Contractor, provide reasonable assistance to the
Contractor in obtaining access to all necessary infrastructure facilities and
utilities, including water and electricity at rates and on terms no less favorable
than those generally available to commercial customers receiving substantially
equivalent services;
(c) Procure that no barriers that would have a material adverse effect on works are
erected or placed on or about the Project Highway by any Government
Instrumentality or persons claiming through or under it, except for reasons of
Emergency, national security, law and order or collection of inter-state taxes;
(d) Not do or omit to do any act, deed or thing which may in any manner be
violative of any of the provisions of this Agreement;
{e) Support, cooperate with and facilitate the Contractor in the implementation of
the Project in accordance with the provisions of this Agreement; and
(f) Upon written request from the Contractor, provide reasonable assistance to the
Contractor and any expatriate personnel of the Contractor or its Sub-
contractors to obtain applicable visas and work permits for the purposes of
discharge by the Contractor or its Sub-contractors of their obligations under this
Agreement and the agreements with the Sub-contractors.
The Authority shall, prior to the Appointed Date, maintain the Project
Highway, at its own cost and expense, so that its traffic worthiness and safety
are at no time materially inferior as compared to its condition 10 (ten) days
prior to the last date for submission of the Bid, and in the event of any
material deterioration or damage other than normal wear and tear, undertake
repair thereof. For the avoidance of doubt, the Authority shall undertake only
routine maintenance prior to the Appointed Date, and it shall undertake
special repairs only in the event of excessive deterioration or damage caused
due to unforeseen events such as floods or earthquake.
1 Major Bridges 3 0 0 0 3
2 Minor Bridges 6 0 0 0 6
3 HPC 11 8 8 0 3
4 Box Culverts 84 13 28 15 56
5 Bus Bay 16 0 0 0 16
6 Toll Plaza 1 0 0 0 1
7 Major Intersection 2 0 0 0 2
8 Minor Junction 23 0 0 0 23
Pedestrian/ Cattle
Underpass/Elepha
9 nt Underpass 7 0 0 0 7
As reported by the project in charge Brig. Dhatt, the company has been able to open
work front till chainaige number 105+000, i.e. approximately 36.740 KM.
As observed during the site visit, most of the Road Work has been carried out in
patches. The company is presently focusing on joining these patches to obtain a
continuous work front.
The details as tabulated above have been depicted in the maps as attached.
From the foregoing table it can be established that, throughout the length of the project,
due to the presence of hindrances and structures to be constructed and even in some
cases due to land acquisition problem, the construction work has been done in patches
only.
The data of road construction as quantified under the point no. 3.0 and 3.1 of this report,
majorly corresponds to the construction activity undertaken between chainaige no.
68+260 (zero point at Amath Chowk) to 97+700 (Rampur Junction), however the
company has been able to open up work front till chainaige no 105+000.
It was observed during the site visit, that there was minimal deployment of the labour on
the site for carrying out the construction work, the same is also evident from the
quantified physical progress under point no. 3.0 and 3.1, the analysis of the same is
provided below:
Work Completed
as per last Progress Month Progress
Length to Submitted Report Achieved s achieved
Sr. be Laid March - 2016 between March & Elapse per Month
No. Particulars (Km) (Km) December 2016 d (KM)
Sub Grade
1 Top 50.11 21.51 8.99 9 0.999
2 GSB - Top 50.11 14.325 13.225 9 1.469
3 WMM - Top 50.11 13.75 9.25 9 1.028
4 DBM 50.11 4.785 11.485 9 1.276
Bituminous
5 Concrete 50.11 0 0 9 0.000
The company has only been able to lay a maximum of 1.276 KM of road in a month,
that too up to DBM level.
The progress in structure works is also discouraging, as the company has only been
able to cast 15 box culverts in a period of nine months, as illustrated below:
Work
Completed as
per last Progress
Submitted Achieved Month Progress
Report March - between March s achieved
Sr. Quantity 2016 & December Elapse per Month
No. Particulars (Nos.) (Nos.) 2016 d (Nos)
1 Major Bridges 3 0 0 9 0.000
2 Minor Bridges 6 0 0 9 0.000
3 HPC 11 8 0 9 0.000
4 Box Culverts 84 13 15 9 1.667
5 Bus Bay 16 0 0 9 0.000
6 Toll Plaza 1 0 0 9 0.000
7 Major Intersection 2 0 0 9 0.000
8 Minor Junction 23 0 0 9 0.000
Pedestrian/ Cattle
Underpass/Elepha
9 nt Underpass 7 0 0 9 0.000
2 69+000 70+000 B/S 370 Boundary Wall, Crossing Elec. Line, Tree
3 70+000 71+000 B/S 330 Crossing Elec. Line, Tree
4 71+000 72+000 B/S 60 Tree
Against the mentioned list of hindrances and utilities to be shifted, the company has reported
the following lengths as the remaining lengths to be executed:
Against an overall length of 18630 meters, marred with hindrances the company has been
able to clear 7290 meters, however, still approximately 62% of the initial length reported to
be marred with hindrances and utility shifting still lies not cleared.
4 FINANCIAL PROGRESS
This section deals with the projected work program shared by the company, and also
compares the projected work program with the financial data, as submitted by the
company.
The schedule date of completion for the project is September 5 th, 2016, as reported
by the company, a provisional EOT has been granted to the company till, December
23rd, 2016, however the projected work program which has been shared by the
company has been projected till December 2017.
The Company has shared the latest Interim Payment Application No 6, for the period
of June 2016 to July 2016, the company had submitted a bill amounting to Rs.
35904733/-, which translates into a total work completed as per the IPA as Rs.
338372998/-.
However, a point to be highlighted here is that, as reported, the above discussed IPA
is the latest IPA with the company, where as in normal parlance a bill would be raised
every month, hence, it can be deduced that after July 2016, little or no work has been
undertaken in the subject project.
From the foregoing analysis, it can be clearly established that the current projected
work program, which is currently the fourth revision, is less aggressive as compared
to the last shared work program, however, as observed during the site visit, and
discussed with Sh. P S Dhatt during the site visit, the company might need to ask for
at least one more time extension, and might need to revise the work program again,
as the alignment under the subject project has a higher number of Structure work,
which might take more time than December 2017, as projected in the current
projected work schedule.
Following is the Stock Availability as shared by the Company during the visit to the
project site as on December 3rd, 2016.
The analysis is has been carried out to determine the sufficiency of material to lay 1
Kilomete of various layers of the road to be laid and certain assumptions. The
assumptions are as following:
Assumptions
The width of the Carriage way has been considered as 7 Meters all through
the length of the road
Depth of GSB layer has been considered as 0.2 Meters
Depth of WMM layer has been considered as 0.25 Meters
Depth of the DBM Layer has been considered as 0.06 Meters
Loose density of each of the aforementioned layers has been considered as
1.60 MT/Cum
GSB layer is divided into - 40 MM Aggregate: 24%
- 20 MM Aggregate: 20%
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- 10 MM Aggregate: 26%
- Sand: 30%
WMM Layer has been divided into - 40 MM Aggregate: 24%
- 20 MM Aggregate: 23%
- 10 MM Aggregate: 24%
- Dust: 29%
DBM layer has been divided into - 20 MM Aggregate: 39%
- 10 MM Aggregate: 17%
- Dust: 44%
- Bitumen: 4.65%
Based on the above assumptions, for laying 1 Kilometer length of GSB layer,
following is the material requirement
GSB
WMM
(in
A Width of the Road Meters) 7
(in
Depth (Widening) Meters) 0.125
(in
Depth (Over laying) Meters) 0.125
(in
B Total Depth Meters) 0.25
(in
C Length to be laid Meters) 1000
(MT/Cum
Density (comp) ) 2.279
(MT/Cum
D Density (Loose) ) 1.6
WMME Contents 40 MM (E = A x 20
Quantity of WMM Material Required B xMM
C) 10 MM
(In Cum) 1750Dust Total
Break
F Up 24% (F=E/D) 23%
Quantity of WMM Material Required (In MT)24% 280029% 100%
Requirement (Cum) 420.00 402.50 420.00 507.50 1750.00
Available (Cum) 2019.82 769.00 274.12 2362.33
DBM
DBM
Content Bitume
s 20 MM 10 MM Dust Total n
Break Up 39% 17% 44% 100% 4.65%
Requirement 163.8
(Cum) 0 71.40 184.80 420.00 19.53
366.5 1854.8 2221.3
Available (Cum) 0 0.00 3 3 60.00
202.7 - 1670.0 1801.3
Remaining (Cum) 0 71.40 3 3 40.47
Based on the foregoing analysis, it can be established that for laying 1 Kilometer of GSB,
the company is not having Sand, for laying 1 kilometer of WMM and DBM, the company is
having a short fall of 10 MM aggregate.
Based on the aforementioned analysis and the remaining lengths of the various layers of the
road to be laid as discussed under the Physical Progress of the project, the approximate
quantity of the material required to complete the construction based on the assumptions is
as following:
However, following is the machinery which has been observed during the
site visit to the project as on December 3rd, 2016.
Excavators (2 Nos.)
Based on the aforementioned observations, the plant and machinery observed during the
site visit has been compared with the list of machinery as shared during the site visit
20 Helper 5
21 Cook 5
22 Office Boy 2
23 Security 7
Total 74
Security and within the time specified therein or such extended period as may be
provided by the Authority, the Authority may encash the Bid Security and appropriate
the proceeds thereof as Damages, and thereupon all rights, privileges, claims and
entitlements of the Contractor under or arising out of this Agreement shall be deemed
to have been waived by, and to have ceased with the concurrence of the Contractor,
and this Agreement shall be deemed to have been terminated by mutual agreement
of the Parties.
In the event the Contractor fails to provide the Performance Security within 10 (ten)
days of this Agreement, it may seek extension of time for a period not exceeding 20
(twenty) days on payment of Damages for such extended period in a sum calculated
at the rate of 0.05% (zero point zero five per cent) of the Contract Price for each day
until the Performance Security is provided.
The Authority Representative and the Contractor shall, within 15 (fifteen) days of the
date of this Agreement, inspect the Site and prepare a memorandum containing an
inventory of the Site including the vacant and unencumbered land, buildings,
structures, road works, trees and any other immovable property on or attached to the
Site. Such memorandum shall have appended thereto an appendix (the "Appendix")
specifying in reasonable detail those parts of the Site to Which vacant access and
Right of Way has not been given to the Contractor. Signing of the memorandum, in
two counterparts (each of which shall constitute an original), by the authorized
representatives of the Parties shall be deemed to constitute a valid evidence of giving
the Right of Way to the Contractor for discharging its obligations under and in
accordance with the provisions of this Agreement and for no other purpose
whatsoever.
Whenever the Authority is ready to hand over any part or parts of the Site included in
the Appendix, it shall inform the Contractor, by notice, the proposed date and time
such of handing over. The Authority Representative and the Contractor shall, on the
date so notified, inspect the specified parts of the Site, and prepare a memorandum
containing an inventory of the vacant and unencumbered land, buildings, structures,
road works, trees and any other immovable property on or attached to the Site so
handed over. Signing of the memorandum, in two counterparts (each of which shall
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The Authority shall provide the Right of Way to the Contractor in respect of all land
included in the Appendix by the date specified in Schedule-A for those parts of the
Site referred to therein, or no later than 90 (ninety) days of the Appointed Date for
those parts of the Site which have not been specified in Schedule-A, and in the event
of delay for any reason other than Force Majeure or breach of this Agreement by the
Contractor, it shall pay to the Contractor, damages.
For the avoidance of doubt, the Parties expressly agree that the Appendix shall in no
event contain sections of the Project. Highway the cumulative length of which
exceeds 10% (tell per cent) of the total length of the Project Highway.
The Site shall be made available by the Authority to the Contractor pursuant hereto
free from all Encumbrances and occupations and without the Contractor being
required to make any payment to the Authority on account of any costs,
compensation, expenses and charges for the acquisition and use of such Site for the
duration of the Project Completion Schedule. For the avoidance of doubt, it is agreed
that the existing rights of way, easements, privileges, liberties and appurtenances to
the Site shall not be deemed to be Encumbrances. It is further agreed that, unless
otherwise specified in this Agreement, the Contractor accepts and. undertakes to
bear any and all risks arising out of the inadequacy or physical condition of the Site.
On and after signing the memorandum and/or subsequent memorandum and until
the issue of the Completion Certificate, the Contractor shall maintain a round-the-
clock vigil over the Site and shall ensure and procure that no encroachment thereon
takes place. During the Construction Period, the Contractor shall protect the site from
any and all occupations, encroachments or Encumbrances, and shall not place or
create nor permit any Sub-contractor or other person claiming through or under the
Agreement to place or create any Encumbrance or security threat over all or any part
of the Site or the Project Assets, or on any rights of the Contractor therein or under
this Agreement, save and except as otherwise expressly set forth in this Agreement.
In the event of any encroachment or occupation on any part of the Site, the
The Contractor shall, in accordance with Applicable Laws and with assistance of the
Authority, cause shifting of any utility (including electric lines, water pipes and
telephone cables) to an appropriate location or alignment, if such utility or obstruction
adversely affects the execution of Works or Maintenance of the Project Highway in
accordance with this Agreement. The actual cost of such shifting, as approved and
communicated by the entity owning the utility, shall be paid by the Contractor and
reimbursed by the Authority to the Contractor. In the event of any delay in such
shifting by the entity owning the utility beyond a period of 180 (one hundred and
eighty) days from the date of notice by the Contractor to the entity owning the utility
and to the Authority, the Contractor shall be entitled to Damages.
The Contractor shall allow, subject to such conditions as the Authority may specify,
access to, and use of the Site for laying telephone lines, water pipes, electric cables
or other public utilities. Where such access or use causes any financial loss to the
Contractor, it may require the user of the Site to pay compensation or damages as
per Applicable Laws. For the avoidance of doubt, it is agreed that use of the Site
under this Clause shall not in any manner relieve the Contractor of its obligation to
construct and maintain the Project Highway in accordance with this Agreement and
any damage caused by such use shall be restored forthwith at the cost of the
Authority. The Authority may, by notice, require the Contractor to connect any
adjoining road to the Project Highway, and the connecting portion thereof falling
within the Site shall be constructed by the Contractor at the Authority's cost.
The Authority may by notice require the Contractor to connect, through a paved road,
any adjoining service station, hotel, motel or any other public facility or amenity to the
Project Highway, whereupon the connecting portion thereof that falls within the site
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shall be constructed by the contractor on payment of the cost. The cost to be paid
by the Authority to the Contractor shall be determined by the Authority's Engineer.
For the avoidance of doubt, in the event such road is to be constructed for the benefit
of any entity, the Authority may require -entity to make an advance deposit with the
Contractor or the Authority, as the case may be, of an amount equal to the estimated
cost as determined by Authority's Engineer and such advance shall be adjusted
against the cost of construction as determined by the Authority's Engineer hereunder.
In the event the construction of any Works is affected by a new utility or works-
undertaken in accordance with this Clause, the Contractor shall be entitled to a
reasonable Time Extension as determined by the Authority's Engineer.
The Authority shall assist the Contractor in obtaining the Applicable Permits for felling
of trees to be identified by the Authority for this purpose if and only if such trees
cause a Material Adverse Effect on the construction or maintenance or the Project
Highway. The cost of such felling shall be borne by the Authority in the event of any
delay in felling thereof for reasons beyond the control of Contractor; it shall be
excused for failure to perform any of its obligations hereunder if such failure is a
direct consequence of delay in the felling of trees. The Parties hereto agree that the
felled trees shall be deemed to be owned by the Authority and shall be disposed in
such manner and subject to such conditions as the Authority may in its sole
discretion deem appropriate. For the avoidance of doubt, the Parties agree that if any
felling of trees hereunder is in a forest area, the Applicable Permit thereof shall be
procured by the Authority within the time specified in the Agreement.
Non Political Act of God, epidemic, extremely adverse weather conditions, lighting, earthquake, landslide, cyclone,
Force flood, volcanic eruption, chemical or radioactive contamination or ionizing radiation, fire or explosion
Majeure originating from a source external to the site
Events
Strikes or boycotts (other than those involving the Concessionaire, Contractors or their respective
employees/representatives, or attributable to any act or omission of any of them) interrupting
supplies and services to the Project Highway for a exceeding 7 (Seven) days in an Accounting Year
Any judgment or order or any court of competent jurisdiction or statutory authority made against the
Concessionaire in any proceedings for reasons other than (i) failure of the Concessionaire to comply
with any Applicable Law or Applicable Permit, or (ii) on account of breach of any Applicable Law or
Applicable Permit or of any contract, or (iii) enforcement of this Agreement, or (iv) exercise of any of
The discovery of geological conditions, toxic contamination or archaeological remains on the site that
could no reasonable have been expected to be discovered through a site inspection
Indirect An act of war (whether declared or undeclared) , invasion, armed conflict or act foreign enemy,
Political blockade, embargo, riot, insurrection, terrorist or military action, civil commotion or politically
Force motivated sabotage
Majeure
Events
Industry-wide or State wide strikes or industrial action for a continuous period of 24 (twenty four)
hours and exceeding an aggregate period of 7 (Seven) days in an Accounting Year
Any civil commotion, boycott or political agitation which prevents collection of Fee by the
Concessionaire for an aggregate period exceeding 7 (Seven) days in an Accounting year
Unlawful or unauthorized or without jurisdiction revocation or, or refusal to renew or grant without
valid cause, any clearance, license, permit, authorization, no objection certificate, consent, approval
or exemption required by the Concessionaire or any of the Contractors to perform their respective
obligations under this Agreement and the Project Agreements, provided that such delay, modification,
denial, refusal or revocation did not result from the Concessionaires or any Contractors inability or
failure to comply with any condition relating to grant, maintenance or renewal of such clearance,
license, authorization, no objection certificate, exemption, consent, approval or permit
Any failure or delay of a Contractor but only to the extent caused by another Political Event and
which does not result in any offsetting compensation being payable to the Concessionaire by or on
behalf of such Contractor
The following table deals with the various conditions regarding the occurrence of
Force Majeure events
Allocation of costs Upon occurrence of a Force Majeure Event after notice to proceed, the costs arising out of
during subsistence of such event shall be allocated as per Concession Agreement. However in any case
Force Majeure Contractor shall not be paid any amount in excess of the amount payable by NHAI to the
Concessionaire under the same clause.
Termination Notice If a Force Majeure Event subsists for a period of 180 (one hundred eighty) days or more,
either Party may in its sole discretion terminate this Agreement by giving 30 (thirty) days
Termination Notice in writing to the other Party without being liable in any manner
whatsoever.
Termination Payment for Upon Termination of the Contract Agreement Termination Payment to the Contractor shall
Force Majeure Events be made as per the Concession Agreement. However in any case Contractor shall not be
paid any amount in excess of the amount payable by NHAI to the Concessionaire under
the same clause.
Dispute Resolution In the event that the Parties are unable to agree in good faith about the occurrence or
existence of a Force Majeure Event, such dispute shall be finally settled in accordance with
the Dispute Resolution Procedure, provided however that the burden of proof as to the
occurrence or existence of such Force Majeure Event shall be upon the Party claiming
relief and / or excuse on account of such Force Majeure Event
Liability for other losses, Save and except as expressly provided in this clause, neither Party hereto shall be liable in
damages etc. any manner whatsoever to the other party in respect of any loss, damage, cost, expense,
claims, demands and proceeding relating to or arising out of occurrence or existence of
any Force Majeure Event or exercise of any right pursuant to this Article
Excuse from If the Affected Party is rendered wholly or partially unable to perform its obligations under
performance of this Agreement because of a Force Majeure Event, it shall be excused from performance
obligations of such of its obligations to the extent it is unable to perform on account of such Force
Majeure Event provided that:
The Affected Party shall make all reasonable efforts to mitigate or limit damage to the
other Party arising out of or as a result of the existence or occurrence or such Force
Majeure Event and to cure the same with due diligence, and
When the Affected Party is able to resume performance of its obligations under this
Agreement, it shall give to the other Party written notice to that effect and shall promptly
resume performance of its obligations hereunder.
All the above clauses of Force Majeure Event shall be in line with the Force Majeure
clause in the concession Agreement. No additional payment shall be made to the
Contractor other than as mentioned in the Concession Agreement. All the clauses shall be
back to back to the Concession Agreement
8 COMMENTS BY AUTHORITY
The aforementioned observations and discussions with the Company, which has been
reproduced in the aforementioned sections of the report, have been verified through a
discussion with the Executive Engineer of National highway Division, Public Works
Department, Kesinga (Orissa). The same has been reproduced in this section.
Following are the items on which the comments from the personnel from the Authority
were requested are as following:
2. The physical progress of the project, which has been shared by the Company,
and which has also been made a part of the present report has been verified by
Sh. Maharana, and the quantified physical status of the road construction is as
following:
7 Box Culverts 84 28
As reported elsewhere, the road stretch does not have a continuous stretch of
road length completed, the reason for the same as reported by Sh. Maharana, is
the higher number of culverts in the alignment, which have not been completed
by the company, with regards to the culverts, Sh. Maharana, has also illustrated
a fact that, culverts which have been shown as completed by the company have
not been paid for by the authority, owing to the fact that the protection works have
not been completed by the company.
Also, the date of the project completion, as proposed by the company in their
projected construction schedule was also commented upon by the Executive
Engineer, Sh. Maharana is of the opinion that the Company might be able to
complete road works by then, but would not be able to complete structure works.
5. As stated above, the company is not carrying out the construction activity
themselves, but the same has been sub contracted to some other party,
presently, as stated by Sh. Maharana, in terms of the manpower, the Company
has only deployed Machine Operators to the project site.
9 CONCLUSION
The Company, M/s. JKM Infra Projects Limited, had been appointed as EPC Contractor
for Widening & strengthening of existing SL/IL to two lane carriage way with paved
shoulder including geometric improvement from Km 68/260 to 118/370 on NH 59, on
September 6th, 2014, and was supposed to complete the project in 730 days from the
date of appointment, however, the project has not been completed till the date of the
preparation of this report, and the company planned to finish the project by December
2017, which the LIE, based on the observations during the site visit and discussions
with the Executive Engineer of the Public Works Department, National Highways
Division, Kesinga (Orissa), is of the opinion, would be revised again.
The LIE report was submitted to the Lenders in the Month of March 2016, after which,
very little work has been undertaken on the project, as illustrated in the table below:
Work
Completed
as per last
Submitted
Report Cumulative
Length to be March - Progress as Progress Achieved Balance
Sr. Laid 2016 in December between March & Work
No. Particulars (Km) (Km) - 2016 (Km) December 2016 (Km)
1 Sub Grade Top 50.11 21.51 30.5 8.99 19.61
2 GSB - Top 50.11 14.325 27.55 13.225 22.56
3 WMM - Top 50.11 13.75 23 9.25 27.11
4 DBM 50.11 4.785 16.27 11.485 33.84
Bituminous
5 Concrete 50.11 0 0 0 50.11
6 Major Bridges 3 0 0 0 3
7 Minor Bridges 6 0 0 0 6
8 HPC 11 8 8 0 3
9 Box Culverts 84 13 28 15 56
10 Bus Bay 16 0 0 0 16
11 Toll Plaza 1 0 0 0 1
Major
12 Intersection 2 0 0 2
13 Minor Junction 23 0 0 23
Pedestrian/
Cattle
Underpass/Ele
phant
14 Underpass 7 0 0 0 7
It can be clearly established from the physical progress as represented in the above table,
that on an average the company has only been able to lay approximately 1.276 kilometers of
ITCOT Consultancy & Services Limited
LIE Report of M/S. JKM INFRA PROJECTS LTD.
road length, that too up to DBM level. Regarding the physical progress of the structure
works, it has been brought to the notice of the LIE, by the Executive Engineer of National
Highways Division, Kesinga, that, the culverts which have been shown by the company as
completed have not been paid for by the authority, as the protection works for the Culverts
has not been completed by the Company.
The company has not been able to clear approximately 62% of the project length which was
marred by the hindrances, trees, utility shifting e.t.c.
The lenders should be aware of the fact that, the Public Works Department, National
Highways Division, Kesinga, has encashed the Bank Guarantee furnished against the
Mobilization Advance, issued by HDFC Bank, also, as reported by the Executive Engineer,
National Highways Division, Kesinga (Orissa), the company itself is not undertaking the road
construction activity, the same is being carried out by a subcontractor, the company is only
providing machinery and machinery operators to the subcontractor, hence the manpower
and total machinery which the company claims to have deployed on the project site, as per
the list shared, is debatable. Also, the projected construction program and the cash flow
shared by the company is not on congruence in terms of the monthly work done, hence the
planning regarding the project completion is also undecided at the Companys end.
Conclusion:
The work has been started till first thirty kilometers of the road length. The earth
work has been completed till 30 Kilometers of the road length. The first thirty
kilometers of the road complete at the intersection of Bhawanipatna
Madanpur-Rampur Highway.
It was observed that tree and electric pole were the major hindrances towards
the progress of the project.