Considering the present market scenario, economic conditions to the best of our knowledge, we would

like to iterate the following points pertaining to EPC model & DBFOT Model:-
1. The Non-Performing Assets (NPAs) of the Banks in India have been aggravated due to which
Financial Institutions are not able to finance effectively.
2. EPC model has the following advantages in respect to DBFOT Mode which enables in completing
the project adhering to the time schedule, with apex quality.
a. Single point of Responsibility.
b. Fixed time and quality
c. Fixed cost
d. High degree of risk for contractor
e. There is no possibility of cost variation.
f. Risk for client are minimized.
g. Better performance
h. More flexible and effective delivery method.
i. Innovative approach in contracting.
j. Minimizes the owner/ clients risks.
k. Project completion time is fixed.
l. Ensure steady cash flow for the Contractor, which enables the Contractor perform the
Contract Efficiently
3. In comparison to the EPC Model, DBFOT Model has been observed to have following
disadvantages
a. Project Cost may be exaggerated as the bidders may quote higher cost considering the
future risks
b. Reduces the opportunity of negotiation and reducing the cost
c. Reduces the Intervention of the client
d. In DBFOT mode, the prime contractor has the option to exit during the O&M phase,
which is not possible in case of EPC Model
e. In constraint financial availability, the risk of the Concessionaire increases manifold and
may even lead to bankruptcy consequently affecting the project
f. The no. of stakeholders in case of DBFOT are numerous, hence any issue in the project
will affect a large no. of Stakeholders