A BOOKLET ON SALIENT

FEATURES OF ENGINEERING
PROCUREMENT AND
CONSTRUCTION (EPC) CONTRACT
SYSTEM
(As per MODEL EPC AGREEMENT of MoRT & H, GoI, for NH’s
and Centrally sponsored road works)

Prepared by:
Bilal Ahmed Barbhuiya
Assistant Engineer, PWD, Nagaon N.H. Division, Nagaon
 CONTENTS
1. INTRODUCTION
• What is an EPC Contract
• Need for EPC mode of Contract
• Salient features of FWD
• Object of EPC Contract

2. MODEL EPC AGREEMENT OF MoRT&H

3. SALIENT ARTCLES & CLAUSES OF THE MODEL EPC AGREEMENT

ARTICLE-2: Scope of the Project

ARTICLE-3: Obligations of the Authority

ARTICLE-4: Obligations of the Contractor

ARTICLE-8: Right of Way

ARTICLE-9: Utilities & Trees

ARTICLE-10: Design & Construction of the Project Highway

ARTICLE-11: Quality Assurance, Monitoring & Supervision

ARTICLE-12: Completion Certificate

ARTICLE-13: Change of Scope

ARTICLE-14: Maintenance

ARTICLE-15: Supervision & Monitoring during maintenance

ARTICLE-17: Defect Liability

ARTICLE-18: Authority’s Engineer

ARTICLE-19: Payments

ARTICLE-21: Force Majure

ARTICLE-23: Termination
 PREFACE
Ministry of Road Transport & Highways (MoRT& H), Govt. of India vide its Circular No.
RW/NH-24035/4/2008-P&M/PIC Vol.ll dated: 23/02/2018 on subject- “Delegation of
powers to Chief Engineer-Regional Officer (CE-RO)/ SE-RO/ ELO at MoRT &H Regional
Office” para-3 (sub-para 3.3) directed that all the civil works including
strengthening/widening/IRQP/PR/pre-construction activities etc. costing more than 5
(five) Crores, classified as major works NH(M), shall be undertaken through EPC or PPP
mode of Contract. EPC mode of Contract is to be adopted where project is not viable to
be undertaken through PPP mode and vice-versa. Ministry, accordingly, published
Standard Document on Request for Proposal (RFP) and EPC Agreement for
implementation of National Highways & Centrally sponsored road works thorough the
EPC mode of contract and incorporates amendments to the Standards time to time.
State PWDs, NHIDCL, NHAI, Borders Roads etc., are therefore to seek proposal and
implement major project, costing above 5 (five) Crores, under funding by the Ministry,
at par with the above standard RFP and Model Agreement and modifications issued to
the aforesaid documents time to time through circulars relevant to the said standards
for projects which are not viable to be implemented through PPP mode.
This booklet or handbook on salient features of Engineering Procurement and
Construction (EPC) Contract system is prepared based on the on Ministry’s latest revised
Standard EPC Agreement for NH’s and Centrally Sponsored Project published vide
Circular No. RW/NH-37010/4/2010-EAP (Printing) Vol.-IV, Dated-05.03.2019. The
booklet is prepared capturing only the salient Articles and Clauses of the Standard EPC
Agreement of MoRT & H which are frequently needed to be refer during the preparation
of project proposal as well as in course of implementation of a project and is intended
to be used as handy reference only. It does not constitute a standard, specification or
regulation or alternative to the Standards Documents of the MoRT&H or any other
Organization/Agency relevant to the purpose. Readers are advised that the Model
document of the Ministry and relevant circulars published time to time be referred in
conjunction with this booklet for detail understanding of the articles and associated
clauses, explanatory notes and flow charts etc. presented in the booklet.
This edition of the book is concise in nature in certain parts and may require detail
presentation and further improvement to be more user friendly. Readers are well come
to suggest any modification, correction and criticism which will be of immense help to
the Author for correcting and updating the contents of this edition of the handbook and
for effectiveness of its use.
The booklet is not for sale and distribution by any Publisher/Agency. It is only intended
to be a ready reference of the Model EPC Agreement, for use by the Civil Engineers,
Professionals etc., in the field Highway Construction, management and Contracting.

No part of this book shall be transmitted in any form or by any means, electronic,
mechanical, photocopying or otherwise for sale and distribution by any publisher or any
other agency and it shall not, by way of trade or otherwise be sold, re-sold, lent and
hire out, or otherwise circulated.

The Author gratefully acknowledge the use of the MoRT & H Standard Documents on
EPC mode Contract and other relevant circulars and guidelines while preparing the
contents of the book.

Nagaon, Assam-782001 Bilal Ahmed Barbhuiya

February, 2020
 INTRODUCTION
What is an EPC contract?
▪ EPC means Engineering, Procurement & Construction.
▪ EPC Contract is a prominent form of contract system for Public Funded Projects
preferred over the conventional Lump-sum (% rate contract) and Item-rate contract
system.
▪ In Contrast to Lump-sum and Item Rate Contract, in EPC mode of Contract,
Contractor carries out the
Detailed Engineering design of the project………….…………...……………………. E
Procures all the equipment & materials necessary……….…....................................P
Construct to deliver a Project to the Client. ………...………………………………….C
Maintenance of the Project on completion …….……………………………………….M

▪ In EPC Project, Owner:

Defines the Scope of Project, Specifications & Standards,
Provides required land (Right of Way)
Obtains statutory clearances & permission for Environmental / Forest / GAD approval
for ROB/RUB & Utility shifting etc. from external entities.
▪ Owner awards the Project to a lowest bidder [called as EPC Contractor] quoting a fixed
lump-sum value [Contract Price] for Engineering, Procurement and Construction of the
Project within a certain defined period [Project Completion Schedule] by executing an
Agreement [EPC agreement]; and also containing the terms for defects liability and
maintenances of the Project by the Contractor up to a certain period [called as Defect
liability period and Maintenance Period respectively] on completion of the project.
▪ Owner appoints a Consulting Engineering Firm/ Project Monitoring Committee (PMC)/
Officer for overall supervision and monitoring of the execution of the Project on behalf of
the owner to act as Engineer [the “Authority Engineer”].

What is an EPC Agreement?

An EPC Agreement contains certain recitals- defining the scope of the project,
obligations as well as representations and warranties of the Client and the
Contractor, Construction, maintenance and financial covenants etc. and for the
aforesaid purpose a set of schedules [EPC Schedules] and other provisions as
may be necessary for development and maintenance of a Project.
 NEED FOR EPC MODE OF CONTRACT SYSTEM IN R & B PEOJECT
ADVANTAGES OVER ITEM RATE CONTRCAT

▪ Conventional Item-rate contracts are generally prone to time & cost overrun due
to
a. Delays in acquiring and handing over of land to Contractor.
b. Delays in removal and shifting of obstructing utilities.
c. Delays in getting Project clearances for Environmental, forest and approval of
GAD for RUB/ROB etc. from Railway
d. Delays in preparation, modifications and approval of Design and Drawing,
specially for major projects.
e. Frequent variations in quantities of items & additions of new items etc.
(Cost /Risk in variation is borne by the Employer)
▪ Cost overruns delaying payments to contractors at times.
▪ Time overruns involving payments of price-escalation over extended time.
▪ Changes in scope often leads to disputes between parties
▪ Difficulties in monitoring of execution, QA & QC works for major Projects due to
want of expertise and technical staffs.
▪ Item-wise measurement, exhaustive recording and preparation of Bills leads to
substantial consumption.
 OBJECTIVE OF EPC CONTRACT
▪ Well defined system of obligation associated with damages both for Client and
Contractor.
▪ Assigning risk to the party who is in a better position to mitigate it. For example,
Land, statutory clearances assigned to client whereas responsibility for
Investigation, Design, Site uncertainty, sub-contracting are assigned to the
Contractor.
▪ Implementation of project to specified standards with a fair degree of certainty
relating to time & cost.
▪ Engagement of professionals for design, proof checking, safety audit and
supervision of the project.
▪ Well defined maintenance obligation and payment system.
▪ Payments for work done is linked to completion of specified stages of
construction rather than completion of a particular item of works. E.g., Stage-
Toll Plaza, Culvert, Bridge etc. on unit completion.

Sound contractual frame work allocating risk and rewards equitably

between Client and the Contractor
MODEL EPC AGREEMENT OF MoRT & H, GoI, FOR NH’s
AND CENTRALLY SPONSORED ROAD WORKS
▪ Ministry of Road Transport & Highways (MoRT & H), GoI prepared Standard RFP and
EPC Agreement for implementation of National Highways & Centrally sponsored road
works thorough the EPC mode of contract and incorporates amendments time to time
where required to the Standards.
▪ The Standard RFP Document and EPC Agreement are made available on Ministry’s Web
Portal (www.morth.nic.in)
▪ This presentation/note on EPC mode Contract System is based on Ministry’s latest
revised Standard EPC Agreement for NH’s and Centrally Sponsored Project published
vide Circular No. RW/NH-37010/4/2010-EAP (Printing) Vol.-IV, Dated-05.03.2019.
▪ Presentation/note captured the important aspects of EPC Agreement briefly. For detail,
references shall be made to the latest Standard EPC Agreement.
▪ As per above Standard EPC Agreement ‘Owner’ of the Project is referred as “Authority”
and EPC Contractor as “Contractor”
▪ Authority as per Ministry's Standard EPC Agreement, any one of the following-
i. Director General (Road Development) & Special Secretary, Ministry of Road
Transport & Highways, New Delhi 110001
ii. Chief Engineer, (NH) State PWD
iii. Chairman, National Highways Authority of India
iv. Managing Director, NHIDCL
v. Director General Border Roads
▪ “Contractor” is the selected bidder, either a single entity or a group of entities (Joint
Venture) represented by a lead member, who executes the EPC Agreement with the
Authority.
▪ Ministry vide its Circular No. RW/NH-24035/4/2008-P&M/PIC Vol.ll dated: 23/02/2018
directed that all the civil works including strengthening/widening/IRQP/PR/pre-
construction activities etc. costing more than 5 (five) Crores, classified as major
works NH(M), shall be undertaken through EPC or PPP mode.

▪ PWD (NH works), Assam is now implementing all NH (M) works of Strengthening and or
widening works, PR works etc. in EPC mode under Annual Plan, where PPP mode is not
viable.
▪ For Monitoring of Execution Projects, which are costing up to Rs. 300 Crore, State PWD
is acting as ‘Authority Engineer” vide Ministry’s Circular No. RW-NH-34048/7/2013-
S&R(B), GoI, dated: 29/10/2018 and appoints Officer of the Department as ‘Authority
Engineer” for supervision of the EPC Contract.
 MAIN FEATURES OF THE STANDARD EPC AGREEMENT

▪ Authority and the Contractor are bind by certain time limits for discharge of their
obligations as set forth in the Agreement, beyond which they are liable to pay
damages to other at the rate and extent specified in the agreement. except
approval for appointments of Contractor’s persons and review of design &
drawing by the Authority and Authority Engineer.
▪ Contractor remains responsible for design, drawing, construction & maintenance
of the Project. Review & approval by the Authority & Authority’s Engineer’s does
not relive his responsibilities for correctness of the same.
▪ Contractor has scope for adopting best practices and alternative technology to
optimize on efficiency and economy for construction of the Project within the
scope of Contract Price, specification and Standards of Agreement.
▪ Core requirements of Project are specified through a set of schedules in the
Agreement [18 (eighteen) nos. of schedules from A to R.]
 ARTICLE-2
SCOPE OF THE PROJECT
SCOPE OF THE PROJECT MEANS:
❑ Construction of the Project Highway on the Site set forth in Schedule-A and as specified
in Schedule-B together with provision of Project Facilities as specified in Schedule-C,
and in conformity with the Specifications and Standards set forth in Schedule-D;
❑ Maintenance of the Project Highway in accordance with the provisions of the Agreement
and in conformity with the requirements set forth in Schedule-E; and
❑ Performance of all other obligations of the Contractor and matters incidental thereto in
accordance with the provisions of this Agreement.

Sch.-A

Sch.-E Sch.-B

SCOPE

Sch.-D Sch.-C

There are 18 (eighteen) nos. of schedules from A to R that defines the overall
requirement of the EPC Contract Project. However, Schedules From ‘A’ to ‘E’
essentially defines the scope of the project. Schedules are mentioned below for
reference.
▪ SCHEDULES OF THE PROJECT:
1. SCHEDULE ‘A’ Site of the Project
• Annexure-I Site
• Annexure-II Dates for providing Right of Way of Construction Zone
• Annexure-III Alignment Plans
• Annexure-IV Environment Clearances
2. SCHEDULE ‘B’ Development of the Project Highway
• Annexure-I Description of [2/4/6 lanning]
• Schedule B-1 Shifting of utilities and felling of trees
3. SCHEDULE ‘C’ Project Facilities
4. SCHEDULE ‘D’ Specifications and Standards
• Annexure-I Specifications and Standards for Construction
5. SCHEDULE ‘E’ Maintenance Requirements
• Annexure-I Repair/rectification of Defects and deficiencies
6. SCHEDULE ‘F’ Applicable Permits
7. SCHEDULE ‘G’ Bank Guarantee
• Annexure-I Form of Bank Guarantee
• Annexure-II Form for Guarantee for Advance Payment
8. SCHEDULE ‘H’ Contract Price Weightages
9. SCHEDULE ‘I’ Drawings
• Annexure-I List of Drawings
10. SCHEDULE ‘J’ Project Completion Schedule
11. SCHEDULE ‘K’ Tests on Completion
12. SCHEDULE ‘L’ Completion Certificate
13. SCHEDULE ‘M’ Payment Reduction for Non-Compliance
14. SCHEDULE ‘N’ Selection of Authority’s Engineer
Annexure-I Terms of Reference for Authority’s Engineer
15. SCHEDULE ‘O’ Forms of Payment Statements
16. SCHEDULE ‘P’ Insurance
17. SCHEDULE ‘Q’ Tests on Completion of Maintenance Period
18. SCHEDULE ‘R’ Taking Over Certificate
 ARTICLE-3
OBLIGATION OF THE AUTHORITY
❑ Authority at its own cost perform all its obligation as set in the Agreement

❑ 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.
❑ Authority within a period of 30 (thirty) days from the date of Agreement shall provide
no less than 90% (ninety per cent) of the required Right of Way of the Construction
Zone of total length of the Project Highway, which shall be in contiguous stretches of
length not less than 5 (five) kilometer. Cl. 3.1 (iii). (a)
❑ Authority within a period of 60 (sixty) days from the Appointed Date, shall provide
approved GAD of ROB/RUB, if any, from railway authorities and shall reimburse all
the cost and expenses paid by the Contractor to the railway authorities. Cl.3.1 (iii). (b)
❑ In case of delay in providing the RoW and GAD, as aforesaid, Authority shall provide
damage and Time Extension as per Agreement Cl. 8.3 & 10.5. Cl. 3.1 (iv)
❑ Upon written request from the Contractor, Authority shall provide reasonable
assistance/support to the Contractor in procuring Applicable Permits and in obtaining
access to all necessary infrastructure facilities and utilities, water and electricity,
applicable visas and the requisite work permits for expatriate personnel of the
Contractor or its Sub-contractors
❑ The Authority shall, prior to the Appointed Date, undertake routine maintenance for
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 it shall also undertake special repairs
only in the event of excessive deterioration or damage caused due to unforeseen
events such as floods or earthquake.
❑ Deemed Termination upon delay Cl. 3.4
In the event the Appointed Date does not occur, for any reason whatsoever, within 90
days of signing of the Agreement and submission of the full Performance Security by
the Contractor, the Agreement shall be deemed to have been terminated.
The Authority shall pay damages to the Contractor equivalent to 1% of the Contract
Price (3% in case of standalone bridge projects).
 ARTICLE-4
OBLIGATION OF THE CONTRACTOR
❑ Contractor shall undertake the survey, investigation, design, engineering, procurement,
construction and maintenance of the Project Highway at par with the terms and condition
of the Agreement.
❑ The Contractor shall remedy any and all loss, defects, or damage to the Project Highway
during Construction Period as well as during Defects Liability Period & Maintenance
Period at his own cost for which he is attributable.
❑ The Contractor shall undertake maintenance of the Project Highway as per the
maintenance requirement as set forth in Schedule-E for the period and per annum rate
as sated in Agreement (Cl.14.1).
❑ The Contractor shall undertake all necessary superintendence for project works and
carry out all tests, for the proper fulfilling of the Contractor's obligations, with the
appointment of competent persons for the satisfactory and safe execution of the Works
at his own cost.
❑ The Contractor shall obtain and maintain a project related bank account
operational at site where all transactions related to the payment of work will be
done.
The Contractor shall submit a monthly account statement and a detailed report on
utilization of funds transferred to this project related bank account to Authority’s
Engineer.
Authority has the right to audit such bank accounts to ensure that there is no diversion
of funds from this project specific account to any other project being implemented by
the Contractor. Cl.4.1 (ix)
❑ Site Data Cl. 4.11- Contractor shall be deemed to have inspected and examined the
Site and its surroundings and to have satisfied himself before entering into the
Agreement in all material respects including but not limited to:
1) Surface and sub-surface, Geotechnical, hydrological and climatic conditions for
suitability and the adequacy of the Site for the execution of the Works
2) Materials, permits, operation & maintenance required for the execution and
completion of the Works.
3) Extent and nature of the works already completed and remedying of any defects
that includes already executed part also.
❑ Unforeseeable difficulties Cl.4.8
Contractor accepts complete responsibility for having foreseen all difficulties and costs
of successfully completing the Works; that the Contract Price and Scheduled Completion
Date shall not be adjusted to take account of any unforeseen difficulties or costs.
❑ Sub-Contracting [Cl.4.2]
1) The Contractor, whether Joint Venture or sole, shall not sub- contract any Works in
more than 49% (forty-nine per cent) of the Contract Price
2) In case of Joint Venture, Lead Member shall carry out Works directly in at least 51%
(fifty-one per cent) of total length of the Project Highway.
3) The Contractor at all time shall remain responsible and liable for its Sub-Contractor’s
performance and shall also ensure and procure that its Sub-contractors comply
with all Applicable Permits and Applicable Laws including himself in the performance
by them of any of the Contractor’s obligations under this Agreement
4) Authority may disqualify the Sub-Contractor(s) engaged by the Contractor in case
credential and criteria for sub-contracting, as laid down in the agreement are not
met.
❑ Contractor’s personnel [Cl.4.4]
1) The Contractor and its Sub-contractors shall ensure that personnel engaged by them
are at all times appropriately and adequately qualified, skilled and experienced in their
respective functions in conformity with Good Industry Practice.
The Contractor will try to hire at least 10% (ten percent) trained workmen as per the
National Skills Qualifications Framework.
[If necessary, the requisite workmen may be got trained by the Contractor at his cost
through authorized training centers of the Directorate General of Training (DGT)]

2) Contractor shall ensure removal of any of its personnel and its sub-contractor’s when
Authority Engineer issues order by writing, specifying the reason for removal of such
personnel.
The Contractor shall further ensure that such persons have no further connection with
the Works or Maintenance under this Agreement. The Contractor shall then appoint a
replacement
❑ Co-ordination of the Works [Cl.4.9]
The Contractor acknowledges that in addition to the Agreement, it is also aware of
terms of the other Project Contracts and other agreements the Authority has entered
into for performance of its obligations under the Agreement. And any breach by the
Contractor leading to breach and imposition of any liability on the Authority to any or
all of the other Project contracts, the Contractor shall take steps to mitigate or
neutralize the liability and indemnify the Authority against any such liability and
compensate the Authority to that extent.
 ARTICLE-8

HANDING OVER OF RIGHT OF WAY (ROW) /

“Handover Memorandum”
➢ Ministry (MoRT&H, GoI) vide its Circular No. NH-15017/181/2014-P&M, Dated-
29.12.2014 directed that for EPC Projects, availability of encumbrance free ROW in 90%
length of the Highway Project and 100% land for Toll Plaza must be ensured before
signing of agreement.

➢ Standard EPC Agreement states that Authority within a period of 30 (thirty) days from
signing of Agreement, shall provide no less than 90% of the required Right of Way of the
Construction Zone of total length of the Project Highway, which shall include contiguous
stretches at least of 5 (five) Km of length.
➢ Therefore, in the light of the above, Authority shall ensure possession of above minimum
extent of encumbrance free land before signing of agreement and shall indicate the said
quantum of project land in Schedule-A(Annex-II) and remaining 10% of the Project
length shall be provided within 150 days after appointed date.

➢ For the purpose of handing over of ROW to Contractor, The Authority Representative,
the Contractor and Authority’s Engineer shall prepare a detailed memorandum, called as
“Handover Memorandum” within 10 (ten) days of the date of signing Agreement after
conducting a joint site inspection. [Cl.8.2 (i)]

➢ Handover Memorandum shall contain:

1) An inventory of site including the vacant and unencumbered land, buildings,

structures, road works, trees and any other immovable property on or attached to the
Site
2) An “Appendix” furnishing -
i. Extent of encumbrance free RoW handed over to the Contractor by the date
specified in Schedule-A.
ii. Parts of Site where vacant access and ROW could not be given to the Contractor
along with details of hindrances in the Construction Zone.

Handover
Memorandum

Inventory of Existing Site Appendix

Land, building, strcutures,

Road Works, CD works, Details of ROW Details of ROW
utilities Handed Over not handed over
➢ Handover Memorandum shall be signed by three counterparts-
1) Authority Representative (Executive Engineer of the Division)
2) Authority Engineer (AEE/ Officer appointed by the Authority)
3) Contractor or Authorized signatory in case Contractor (JV)
➢ Handover Memorandum executed between parties constitute a valid evidence of giving
RoW to the Contractor for discharging its obligations under and in accordance with the
provisions of the Agreement and for no other purpose whatsoever.
➢ Whenever the Authority is ready to hand over any balance part or parts of the Site,
within the dates as specified in Schedule-A, which were not handed over to the
Contractor and included in the Appendix, it shall prepare a Handover Memorandum
jointly with respect such part or parts of the Site

APPOINTED DATE- The date of commencement of project

➢ Upon successful handing over of the site as per the requirement as stated in the
Agreement vide execution of “Handover Memorandum”, the Authority, with the consent
of the Contractor, shall declare the “Appointed Date” as the date of commencement of
the Project.
➢ If “Appointed Date” does not occur within 90 days of signing of agreement, and
submission of the full Performance Security by the Contractor, the Agreement shall be
deemed to have been terminated. The Authority shall pay damages to the Contractor
equivalent to 1% of the Contract Price (3% in case of standalone bridge projects).
(Cl.3.4)

Signing of the Agreement

Execution 'Handover
Memorandum" within 10 days
(minimum 90% land to be
handed over )

Declaration of "Appointed before expiry of 90 days

Date"
 DAMAGES FOR DELAY IN HANDING OVER THE SITE [Cl.8.3]

➢ After declaration of Appointed date, Contractor shall submit to the Authority’s Engineer,
a monthly land possession report till expiry of 180 (one hundred and eighty) days from
Appointed Date, in respect of those parts of the site to which vacant access (hindrance
free) and right of way was not given to the contractor and included in Appendix to the
Handover Memorandum.
➢ In event Authority is unable to hand over the land (ROW) to the extent and date as
specified in Schedule-A and in respect of those parts of the site to which vacant access
(hindrance free) and right of way was not given to the contractor as specified in the
Appendix to the Handover Memorandum, Authority shall pay damages as per following
formula:
𝟏 𝟏
Amount of Damages in Rs. Per day per meter = 𝟎. 𝟎𝟓 × 𝑪 × ×
𝐋 𝐍
where, C = Contract Price,
L = length of the Project Highway in ‘m’
N = Project scheduled completion period in days

TIME EXTENSION FOR DELAY IN HANDING OVER THE SITE [Refer Cl.10.5]

➢ In addition to payment of damages for delay in providing the Right of Way to the
Contractor, Authority shall also provide Extension of Time (EOT) to the Contractor equal
to the period for which the Damages have become due and payable.
➢ Time Extension for the purpose shall be computed for the parts of the work that were
affected by delay in proving the Right of Way and shall not be made additive in case
any overlaps.
➢ Damages and Time Extension for delay in proving the Right of Way shall be restricted
to “Construction Zone” only, which shall comprise the following components:
▪ Main Carriageway
▪ Median (for 4 lane carriageway or more)
▪ Paved and Earthen shoulders
▪ Area for Structures including ROBs/RUBs.
▪ Safety measures including Roadside Drains and Furniture.
▪ A parallel working space for accommodating slopes/retaining structures etc.
DEEMED DESCOPING OF PROJECT WORKS [Cl. 8.3 (iii) (b)]

➢ If any works cannot be undertaken for stretch(es) of project area falling within a
municipal limits of a town or a reserved forest or wildlife sanctuary or any other
stretches, where ROW could not be handed over within 180 days of the Appointed
Date, due to delay in acquisition of land or clearances of encroachment or hindrances
or failure to obtain statutory clearance, such stretches or land parcel shall be deemed
to be withdrawn (deemed descoped) without involving any ceiling to the value of
works in terms of Contract Price.
➢ If effected land parcel or stretches, where deemed descoping involved, can be handed
over to the Contractor before the expiry of the Original Schedule Construction Period of
the Project Highway and the Contractor agrees to take up the work, the same may be
allowed to be executed by him with the provision of extension of time for the works of
effected land parcels only and subject to no any financial claims or damages in
respect of delay in handing over of such stretches of Project length.

WITHDRAWL OF PARTS OF WORKS (Limited) [Cl. 8.3 (iii) (a)]

➢ Authority may at any time withdraw any works which has already commenced or yet to
be commenced unless covered under deemed descoping, subject to such works not
exceeding an aggregate value equal to 10 (ten) percent of the Contract Price, such
value to be determined in accordance with Schedule-H.
➢ In the event of withdrawal of any works, other than the deemed descoping, which has
yet not commenced, the Contract Price shall be reduced by an amount equal to 90
(ninety) per cent of the value of the works withdrawn and the Contractor shall not be
entitled to any other compensation or Damages for the withdrawal of such works.
➢ If any works, other than the deemed descoping, are withdrawn after commencement of
the Construction of such works, the Authority shall pay to the Contractor 110% (one
hundred and ten per cent) of the fair value of the work done, as assessed by the
Authority’ Engineer. For remaining works as withdrawn, Contract Price shall be reduced
by an amount equal to 90 (ninety) per cent of the value of the works withdrawn.
 ARTICLE-9

Utilities and Trees

 SHIFTING OF OBSTRUCTING UTILITIES: [Cl. 9.1, 9.2, 9.3]

▪ Authority during the DPR/estimate preparation stage, shall investigate thoroughly and
prepare strip chart for all utilities (including electric lines, HT Tower, Water Pipe line,
Gas and OIL pipeline, OFC/telephone lines, Irrigation structures etc.) running along and
across the proposed and existing project alignment and falling within the proposed
ROW or Construction Zone, as the case may be, that will adversely affects the execution
of works or maintenance of the Project Highway.
▪ The estimated cost for removing and shifting of such utilities, any protection measures
viz., cushioning, barricading, railing etc., as per the direction and estimates furnished
by the entity owning the utility shall be included in the DPR for inclusion of scope of
such works in Schedule-B of the Agreement.
▪ The list of obstructing utilities indicating quantities and location shall be indicated in
Schedule-B1, appending preferably Strip Chart of such utilities for carrying out of scope
of such work by the Contractor.
▪ The work of shifting of Utilities can be taken up by the Contractor any time after signing
of the Agreement.
▪ Authority shall, immediately on signing of the Agreement, assist Contractor in obtaining
required permission and cost estimates from the respective entities, owning the utilities,
after conducting joint site inspection for commencement of utility shifting.
▪ On completion of the required work for shifting of utilities as per estimate furnished by
the respective entities and scope of agreement, Authority or Authority Representative
shall reimburse the cost of shifting of such to the Contractor after production and
approval of the Bills/Invoice for the same.
▪ In the event of any delay of such shifting on the part of the contractor, no extension of
time for completion of the project and no claims, in any manner, shall be admissible on
this account against the Authority.
▪ Contractor shall allow use of site for laying of any new utilities, undertake works for
construction of any feeder road or service road for connecting any public facility or
amenity to the Project Highway for the portion falling within the site as asked by the
Authority. Damages, if any, and cost of construction and time extension will be provided
by the Authority.
 FELLING OF TREES: [Cl. 9.4]

▪ Authority shall specify the nos. of Trees falling in non-forest areas of required
Construction Zone of ROW of project highway in Schedule-B1 of the agreement for
felling of the same by the Contractor by engaging the entity owning the same.
▪ For the purpose of felling of trees in non-forest areas, as an obligation of Contractor, the
Authority shall assist Contractor in obtaining applicable permit and borne the cost for
feeling of the such trees as per the estimate furnished by the Entity owning the utilities.
▪ For part(s) of project falling within the reserved forest, the Authority shall take requisite
steps for obtaining statutory clearance before issue of LOA and borne the cost for
diversion and compulsory afforestation as per applicable laws.
▪ For any delay in obtaining statutory clearance for execution of works in stretches falling
within the reserved forest areas, the said works may qualify for deemed descoping.
▪ Authority shall specify the nos. of trees to be planted by the Contractor in Schedule-B
for requirement of Compulsory afforestation.
▪ Contractor may start the activities for feeling of trees and planting of trees for compulsory
afforestation any time after signing of the agreement on obtaining of applicable permits
and procuring of statutory clearance, as the case may be.
▪ No time extension and damages will be paid to the Contractor for delay of obtaining of
applicable permits and felling of trees or compulsory afforestation to be undertaken by
the Contractor or for effected works.
▪ For any delay in obtaining statutory clearance for execution of works in stretches
falling within the reserved forest areas, the said works may qualify for deemed
descoping.
SCHEDULE-B1 (An annexure to Schedule-B for listing of utilities):
DISMANTLING OF STRCUTURES ON ACQUIRED LAND [Cl. 9.5]

▪ Contractor, at its own cost, shall undertake dismantling of structures and disposing of
dismantled materials falling on the land acquired by the Authority and handed over to the
Contractor for construction of the Project Highway.
▪ In the event of any delay in dismantling of structures thereof for reasons beyond the
control of the Contractor, because of want of requisite permission and paying of
compensation, Contractor shall be entitled to Damages and time extension for the time
period for which delay become due.
DEVELOPMENT PERIOD FOR COMMENCING OF CONSTRUCTION [Cl. 9.6]
▪ Contractor immediately on signing of agreement may take up any pre-construction
activities, utility shifting, boundary wall construction or any other works assigned by the
Authority and shall complete such works, to the extent feasible, before declaration of
appointed date. The period is defined as Development Period.
▪ No claim for damages and time extension for delay is applicable during development
period against the Authority.
 ARTICLE-10
DESIGN AND CONSTRUCTION OF THE
PROJECT HIGHWAY
➢ The Authority shall, appoint an engineer (the “Authority’s Engineer” in short ‘AE’) before
the Appointed Date as per the terms of Appointment as indicated in Agreement and
direction of Ministry. Cl.10.1 (ii)

➢ Within 20 (twenty) days of the Appointed Date, Contractor shall Cl.10.1 (i)
▪ Appoints its “Authorized Representative” to deal with the Authority.
▪ Appoints its “Design Director” who will head the Contractor’s design unit
▪ Make arrangement for quarrying of materials needed for the Project Highway
▪ All Mobilization works that may be necessary or required before commencement
of Works
➢ Within 30 (twenty) days of the Appointed Date, Contractor shall submit a work
programme (the “Programme”) containing the followings details in parts: Cl.10.1 (iii)

PART-I:
This part shall contain the following chapters:
1) Contractor’s organization for the Project
2) Methodology for design & construction for all works
3) Quality Assurance Plan (QAP)
4) Environment Management Plan (EMP)
5) Traffic Management and Safety Plan during construction
6) Contractor’s key personnel and equipment.

PART-II:
This part shall furnish Progaramme for all stages of works as stated in Schedule-H
keeping in parity with the Project Completion Schedule-J, prepared in following
manners:
1) Sequence in which works is intended to be carried out.
2) Date of submission of Design & Drawing for each activity
3) Period for reviews of Design & Drawing as per Agreement
4) Sequence and timing of inspections and tests specified in Agreement.
5) The particulars for the pre-construction reviews and for any other
submissions, approvals and consents specified in the Agreement.

PART-III: Monthly cash flow forecast.

 FLOW CHAERT OF “WORK-PROGRAMME”

Contractor's Organization

Methodology of design &

works

QAP
Part-I
EMP

Traffic Managment Plan

Safety Plan

Programme Swquence for Stages of

works ,

Design & Drawing

Part-II
submission, review

Test & Inspections, others

Part-III Cashflow Forecast

➢ Contractor shall appoint a “Safely Consultant” and a “Proof Consultant” and their
Key-personnel with prior consent of Authority before the date of submissions Design &
Drawing as shown in “WP” or as early as possible after declaration of Appointment as
per the procedure laid down in the agreement to carryout safety audit and proof check
respectively at the design stage of the Project Highway. Cl.10.1 (iv) & Cl.10.2 (ii)

All the design and drawings prepared by the Contractor shall have the approval of its
Design Director and invariably be proof checked by the Proof Consultant and safety
audited by the Safety Consultant. Design and Drawings shall be signed by the above
three personnel for its acceptance by the Authority and Authority’s Engineer.

Contractor shall furnish along with design and drawings, the recommendations made by
the Safety Consultant in the Safety Audit of the Design of Project Highway and a
certificate of compliance to this effect. In the event that any works required by the Safety
Consultant shall fall beyond the scope of Schedule-B, Schedule-C or Schedule-D, the
Contractor shall make a report thereon and seek the instructions of the Authority for
Change in Scope.
Safety Consultant to be engaged by the Contractor shall be independent of the design
and implementation team of the Contractor.
 PROCEDURE FOR APPOINTMENT OF ''PROOF CONSULTANT'' & "SAFETY CONSULTANT”

Submission of a Panel of
three (3)
Within 15 days from the
firms/consultant for
date of submision,
each to the Authority
Authority shall chose
immediately on
Appointment of ''Proof one as ''Proof
declaration of
Consultant'' & "Safety Consultant'' & "Safety
Appointed date (before
Consultant" by Consultant" from
submission of Design &
Contractor respective panels for
Drawing) with detail of
subsequent
qualification and
appointment by the
experience including
Contractor
detail of associated key
personnel

Within 15 days from the

Contractor will Submit
revise Panels of 03 firms
In Case Panels are not
for each from
accppetable
empanelled list of the
MoRTH, GoI
date of revise
submision, Authority
will chose one as ''Proof
Consultant'' & "Safety
Consultant" from
revised panels for
appointment by the
Contractor

Submission of Design and Drawing by the Contractor Cl.10.2

➢ The Contractor shall prepare and submit the design and drawings for all works, including
those furnished in Schedule-I, on before the date as shown in the work-progaramme for
review, commencement and completion of the said works as per as per the date as
shown in the work progaramme, consistent with the Project Completion Schedule.
Design & Drawing shall be submitted in three (3) copies each, duly certified by the Proof
Consultant and appending the recommendation of the Safety Consultant and certificate
to this effect by the Contractor. Cl.10.2 (iv) (a)
➢ Authority’s Engineer may by notice inform the Contractor to submit additional drawings
(including major bridges and Structures) or additional copies other than those listed in
Schedule-I to be required for work. Contractor shall accordingly furnish such drawings
deemed included in Schedule-I. [ Ref: Schedule-I, Para-2]
➢ Contractor shall submit “Quantity Statement” based on the drawings prepared and
approved by the Authority in respect of all stages of work specified in Schedule-H for
estimating interim payments to be paid on completion of such works subject to the sum
of payments to be computed in respect of all the items of work shall not exceed the
Contract Price. Cl.10.1 (iv)
➢ Time period for Review and Approval by the Authority’s Engineer

▪ For Work Programme- as early as possible or within 15 (fifteen) days from date of
submission.
▪ For Appointment of Safety and Proof Consultant- within 15 (fifteen) days receiving
proposal, else, Contractor may proceed with engaging of personnel as per his

▪ proposal.
For Design and Drawings- within 15 (fifteen) days from date of submission.

▪ For Design & Drawings of Major Bridge and Structures- within 30 (thirty) days from
date of submission.
▪ For Revised Design and Drawings- within 10 (ten) days from date of submission.
➢ No review/approval and/or observation of the Authority’s Engineer and/or its failure to
review/approval and/or convey its observations on any Drawings shall relieve the
Contractor of its obligations and liabilities nor shall the Authority’s Engineer or the
Authority be liable for the same [Cl.10.2 (e)]
➢ In case of no review/approval and/or observation of the Authority’s Engineer and/or its
failure to review/approval and/or convey its observations on any Drawings, Contractor
may proceeded with the Construction of the same, provided that Contractor shall obtain
approval of Authority’s Engineer within 90 days (ninety) from the Appointed Date
and shall undertake all corrections to the drawings and construction made thereof, if
any arises thereafter. [Cl.10.2 (h)]
➢ In case Contractor fails to revise and resubmit Drawings as required to the Authority’s
Engineer for review/approval, the Authority’s Engineer may withhold the payment
for the affected works in accordance with the provisions of Clause 19.5 (iv)
(withholding stage payment) [Ref: Cl. 10.2(d)]
➢ Contractor shall indemnify the Authority against any damage, expense, liability, loss or
claim, which the Authority might incur, sustain or be subject to arising from any breach
of the Contractor’s design responsibility and/or warranty set out in the Agreement.
Cl.10.2 (g)

➢ Contractor shall be responsible for delays in submitting the Drawing as set forth in
Schedule-I and additional drawings. Any cost or delay in construction arising from
review/approval by the Authority’s Engineer shall be borne by the Contractor. Cl.10.2 (f)
PROJECT COMPLETION SCHEDULE (SCHEDULE-H)
➢ Contractor shall construct the Project highway as per the following Project Completion
Schedule w.r.t requirement of each Project Milestone and Scheduled Completion Period
and report to the Authority within 15 (fifteen) days of the date of each Project Milestone.

➢ Upon extension of any or all of the aforesaid Project Milestones or the Scheduled
Completion Date, as the case may be, the Project Completion Schedule shall be
amended accordingly.

No. of years for completion of work shall be selected as per following: criteria:
 DAMAGES FOR FAILURE TO ACHIEVE PROJECT MILESTONE

➢ In the event Contractor fails to achieve any of the Project Milestone or the Scheduled
Completion Date within a period of 30 (thirty) days from the date set forth in Schedule-J,
unless such failure has occurred due to Force Majeure or for reasons solely attributable
to the Authority, it shall pay Damages to the Authority of a sum calculated at the rate of
0.05% (zero point zero five percent) of the Contract Price for delay of each day reckoned
from the date specified in Schedule-J and until such Project Milestone is achieved or the
Project Highway is completed
➢ Authority shall however refund the damages paid by the Contractor in case Contractor
complete the work before the Scheduled completion period including any time extension
provided for a section or particulars works, however, without any interest.
➢ For calculation of achievement or delays in completion of the Project milestone or Project
on due date, time extension and damages already paid for non-handing over or delay in
providing of ROW of a Project section shall be excluded.
➢ When Authority decide to impose damages on account of delay or failure to achieve any
or all milestone of a project, Contractor shall be notified by giving 20(twenty) days
period for his representation (#Curing Period)

➢ Total amount of Damages for delay in completion of work or failure to achieve Project
Milestone(s) shall not exceed 10% (ten percent) of the Contract Price. If the damages
exceed 10% (ten percent) of the Contract Price, the Contractor shall be deemed to be in
default of this agreement having no cure and the Authority shall be entitled to terminate
this Agreement by issuing a Termination Notice in accordance with the provisions of
Clause 23.1 (ii).
➢ For a Project costing above 300 Crore, if Contractor fails to achieve the Project
Completion within a period of 90 (ninety) days from the Schedule Completion Date for
reasons solely attributed to him, then the Contractor will be debarred from bidding any
future projects of the Authority both as the sole party or as one of the parties of Joint
Venture/Consortium during the period from Scheduled Completion Date to issuance of
Completion Certificate.

# “Cure Period” means the period specified in the EPC Agreement for curing any
breach or default of any provision of the Agreement by the Party (Authority or
Contractor) responsible for such breach or default.
 # “Cure Period” shall:
a) commence from the date on which a notice is delivered by one Party to the other
Party asking the latter to cure the breach or default specified in such notice;
b) not relieve any Party from liability to pay Damages or compensation under the
provisions of this Agreement; and
c) not in any way be extended by any period of Suspension under this Agreement;
provided that if the cure of any breach default by the Contractor requires any
reasonable action by the Contractor that must be approved by the Authority or
the Authority’s Engineer hereunder, the applicable Cure Period shall be extended
by the period taken by the Authority or the Authority’s Engineer to accord their
approval;

EXTENSION OF TIME (EOT) [CL.10.5(I)]

➢ Contractor will be entitled for Time Extension in Project Completion Schedule to the extent
that completion of any Project Milestone is or will be delayed by any of the following,
namely:
▪ Delay in providing the Right of Way of Construction Zone, environmental clearances
or approval of railway authorities, specified in Clause 3.1 (iv);
▪ Change of Scope (unless an adjustment to the Scheduled Completion Date has been
agreed under Article 13);
▪ Occurrence of a Force Majeure Event;
▪ Any delay, impediment or prevention caused by or attributable to the Authority, the
Authority's personnel or the Authority's other contractors on the Site; and
▪ any other cause or delay which entitles the Contractor to Time Extension in
accordance with the provisions of Agreement
➢ Contractor shall notify the Authority’s Engineer with a copy to the Authority no later than
15 (fifteen) business days from the occurrence of an event or circumstance specified in
Clause 10.5 (i), which the Contractor became aware, or should have become aware for
entitlement of extension of time for the works already effected and that will be effected in
due course.
➢ Contractor’s failure to issue notice to the Authority’s Engineer within the time period of 15
(fifteen) business days from the occurrence of an event or circumstance specified in
 Clause 10.5 (i), will forfeit his claim for entitlement of any Time Extension and the
Authority shall be discharged from all liability in connection with the claim
➢ Authority shall review the Contractor’s claim of EOT submitted within the 15 (fifteen)
business days from the occurrence of an event or circumstance specified in Clause 10.5
(i) and may by writing forward to the Contractor his decision to grant EOT within the time
frame as aforesaid.
➢ In the event the Authority’s Engineer requires any clarifications to examine the claim, the
Authority’s Engineer shall seek the same within 15 (fifteen) days from the date of receiving
claim from Contractor.
➢ The Contractor shall, on receipt of the communication of the Authority’s Engineer
requesting for clarification, furnish the same to the Authority’s Engineer within 10 (ten)
days thereof.
➢ The Authority’s Engineer shall, within a period of 30 (thirty) days from the date of receipt
of such clarifications, forward in writing to the Contractor its determination of Time
Extension.
➢ In case of determining EOT for any interim claim by Authority’s Engineer, previous
determination for EOT(s) already issued may be reviewed and total (cumulative)
Time Extension may be increased but shall not be decreased.
➢ In case of persistence/continuing effect of any event or circumstance specified in Clause
10.5 (i),
▪ Previous determination of EOT by Authority’s Engineer will be considered as
interim.
▪ further interim claims specifying the accumulated delay, the extension of time
claimed, and such further particulars as the Authority’s Engineer may reasonably
require shall be submitted by the Contractor no later than 10 (ten) days after the
close of each month and
▪ the Contractor shall send a final claim within 30 (thirty) days after the effect of the
event or the circumstance ceases.
▪ The Authority’s Engineer shall, within a period of 30 (thirty) days from the date of
receipt of final claim and any clarification forward in writing to the Contractor its
determination of Time Extension.
 EOT CLAIM AND DETERMINATION PROCESS

Claim Notice Notice by within 15 business days of

Contractor occurrence of any event as per
Cl. 10.5(i)

Examination of claim and within 15 business days of

seeking clarification (if any) by submission of claim by
AE Contractor

Furnishing of clarification by within 10 business days from

Contrcator the date of receipt of notice
requesting clarification

Determination of EOT by AE within 30 business days from

(Interim/final) the date of receipt clarification
from Contractor

Incase of continuing of effect Previous EOT determination (if

Event(s) any issued) will be considered
as Interim

Contractor shall submit furhtur no later than 10 (ten) days after

periodic claims specifying the the close of each month.
accumulated EOT claimed.

On cessation of effect
of the event

within 30 days of cessation of

Submission fianl EOT claim
event

within 30 business days from

Determination of EOT by AE the date of receipt of final
(Interim/final) claim/clarification from
Contractor

❖ Determination of EOT for all claims (interim and final) submitted by the Contractor
within the time frame mentioned in the Clause 10.5 may be determined at the end of
the expiry of the successive scheduled milestone specified for construction of the
project.
 ARTICLE-11
Quality Assurance, Monitoring and
Supervision
“QUALITY ASSURANCE PLAN” OR “QAP” [Cl.11.2]

➢ For assurance of Quality of Materials and workmanship, Contractor Shall submit

Project’s ‘QAP’ within 30 (thirty) days of the Appointed Date along with ‘WP
➢ QAP shall furnish the following-
a) Organization, duties and responsibilities, procedures, inspections and
documentation;
b) quality control mechanism including sampling and testing of Materials, test
frequencies, standards, acceptance criteria, testing facilities, reporting, recording
and interpretation of test results, approvals, check list for site activities, and
proforma for testing and calibration in accordance with the Specifications for
Road and Bridge Works issued by MORTH, relevant IRC specifications and Good
Industry Practice; and
c) Internal quality audit system
➢ The Authority’s Engineer shall convey its approval to the Contractor within a period
of 21 (twenty-one) days of receipt of the QAP
➢ The Contractor shall bear all cost and procure all resources required for checking of
quality and workmanship as per ‘QAP’

QAP

Organisation QC mechanism as per Internal quality audit

MoRTH & IRC system
Detail specification

FOR DEATIL KNOW HOW, NHAI’S QUALITY ASSURANCE MANUAL MAY BE

REFERRED.

METHODOLOGY [Cl.11.3]
➢ The Contractor shall, at least 15 (fifteen) days prior to the commencement of the
construction, submit to the Authority’s Engineer for review and consent the methodology
proposed to be adopted for executing the Works, giving details of equipment to be
deployed, traffic management and measures for ensuring safety.
➢ The Authority’s Engineer shall complete the review and convey its consent to the
Contractor within a period of 10 (ten) days from the date of receipt of the proposed
methodology from the Contractor.
QUALITY AUDIT- EXTERNAL AND INTERNAL [Cl.11.4, 11.5]

Quality Audits (QA) are required for detecting whether the procedures adopted ensuring the
quality of works are at variance with those required by the contract and/or as set out in the
contract administration procedure and/or the Quality Assurance Plan.

QUALITY AUDIT

By External Technical
By Contractor (Internal) By Authority
Auditor

❑ Contractor shall undertake Internal Quality Audit as per Internal Quality Audit Plan as
indicated in his ‘Quality Assurance Plan’ and as approved by th Authority’s Engineer.
❑ The Authority or its Authorized Representative by themselves or by appointing External
Technical Auditor may Conduct periodical Audit for the quality of the works by giving
prior notice to the notice to the Contractor and the Authority’s Engineer. [Cl.11.5]
❑ Contractor shall assist in auditing and take remedial measure for compliance of findings
of Audit at his own cost and expenses.
❑ The Authority’s Engineer and its authorized representative have full access and rights
for inspection, testing and measurement etc., at all parts of construction site and at the
places of production, manufacturing and quarrying of construction material.
❑ The Contractor shall give the Authority’s Engineer and its authorised agents access,
facilities and safety equipment for carrying out their obligations under this Agreement.
❑ The Contractor shall give the Authority’s Engineer manufacturer's test reports and
standard samples of manufactured Materials and others as and when asked for
conducting pre-construction review. [Cl.11.9]
❑ Contractor shall issue notice for request for inspection (the “RFI), testing and
measurement of work by the “Authority’s Engineer” while a work is in progress and
before it is covered up by giving at least 3 (three) business days’ time. [Cl.11.11]
Authority’s Engineer shall act within a period of 3 (three) business days from the date of
issue of notice by the Contractor, else, the Contractor shall be entitled to assume that
the Authority’s Engineer would not undertake the said inspection. [Cl.11.11]
❑ The Authority’s Engineer may reject any defective or non-conforming Plant, Materials,
design or workmanship and issue instructions for retesting by giving notice to the
Contractor. Contractor shall take action promptly for remedial measure at his own cost.
(Rejection-Cl. 11.12)
❑ Notwithstanding any previous test or certification, Authority’s Engineer may instruct the
Contractor to remove and replace any defective Plants & M/c, remove and execute any
non-conforming work, execute any urgent work for safety other than Force-majeure
events within a certain period by giving notice. (Remedial Work-Cl.11.13. i.)
❑ If the Contractor fails to comply with the instructions issued by the Authority’s Engineer
for remedial work under Clause 11.13 (i), within the time specified in the Authority’s
Engineer’s notice or as mutually agreed, the Authority will undertake such at the cost of
the Contractor by any monies due to be paid to the Contractor.
❑ The Authority’s Engineer shall test at least 50% (fifty percent) of the quantity or
number of tests prescribed for each category or type of test for quality control by
the Contractor. (Test Checking) [Cl.11.10]
❑ The Authority’s Engineer shall submit a monthly inspection report (the “Inspection
Report”) to the Authority and the Contractor bringing out the results of inspections and
the remedial action taken by the Contractor in respect of Defects or deficiencies.
[Cl.11.8 (iii)]

CONTRACTOR’S PERSONNEL, STAFFS & LABOUR [Cl.11.18]

➢ Contractor and or its Sub-Contractor(s) shall all time maintain qualified, experienced
Key-staff and laborer as per its obligation and in conformity with the provision of the
Agreement.
➢ Contractor including its Sub-Contractor(s) is solely responsible for payment (salary),
wages, gratuity, PF and ESIC as per applicable laws, accommodation, feeding and
transport, health and safety, verification of identity and address, discipline and conduct
of the employees and labour engaged by it.
➢ The Contractor shall deliver ‘Return of Labour’ to the Authority when asked as per the
format and time interval as prescribed and permit the Authority to witness labour
payments for the Contractors direct labour, or the Subcontractors labour [Cl.11.18 (ii)
(a)]
➢ In case Contractor defaults in making any payment to the staff and labour,
Authority will make such payment from Contractor’s running account bill for the
works. Any unrecoverable amount in case of payment by employer will attract
interest @ 18% per annum. [Cl.11.18 (ii) (b)]
➢ The Contractor shall not recruit, or attempt to recruit from amongst persons in
the service of the Authority.
SUSPENSION OF UNSAFE CONSTRUCTION WORKS [CL. 11.17]
➢ Authority may by issue of notice instruct the Contractor to suspend forthwith the works
that threatens the safety of the Users and pedestrians as per recommendation of the
Authority’s Engineer.
➢ Contractor shall suspend immediately the works in conformity with the suspension
notice issued by the Authority and thereupon carry out remedial measures to secure the
safety of suspended works, the Users and pedestrian.
➢ Upon completion of remedial measure to the suspended work, the Contractor by a notice
request the Authority Engineer to inspect such remedial measures forthwith.
➢ Authority Engineer upon inspection shall make a report the Authority recommending
whether or not the suspension hereunder may be revoked.
➢ Upon receiving the recommendations of the Authority’s Engineer, the Authority shall
either revoke such suspension or instruct the Contractor to carry out such other and
further remedial measures as may be necessary until the suspension hereunder is
revoked.
➢ Subject to the provisions of Clause 21.6 (the “Force Majeure costs”), all reasonable
costs incurred for maintaining and protecting the Works or part thereof during the period
of suspension (the “Preservation Costs”), shall be borne by the Contractor; provided
that if the suspension has occurred as a result of any breach of this Agreement by the
Authority, the Preservation Costs shall be borne by the Authority.
➢ If suspension of Works is for reasons not attributable to the Contractor, the Authority’s
Engineer shall determine any Time Extension to which the Contractor is reasonably
entitled.

MONTHLY PROGRESS REPORTS [Cl.11.7]

During the Construction Period, the Contractor shall, no later than 10 (ten) days after the
close of each month, furnish to the Authority and the Authority’s Engineer a monthly report
on progress of the Works and shall promptly give such other relevant information as may be
required by the Authority’s Engineer.
Each report shall include:
1) an executive summary;
2) charts showing the status of Contractor's documents, construction and manufacturing
and environmental works;
3) details of work subcontracted and the performance of Sub-contractors;
4) for the construction of each main part of the Works, the extent of progress (both
quantity and percentage of the whole), the actual or expected dates of
commencement, anticipated completion date of the activity, Contractor's inspections
and tests;
5) records of manpower and Contractor's equipment on the Site;
6) copies for that month of quality assurance documents, test results and certificates;
7) safety statistics, accident data collection including details of any hazardous incidents
and activities relating to environmental aspects and public relations;
8) comparisons of actual and planned progress, with details of any aspects which may
jeopardise the completion in accordance with the Agreement, and the measures being
(or to be) adopted to overcome such aspects;
9) details of any unresolved disputes or claims, in relation to the Project;
10) details of any revision to the cash flow estimate, together with a copy of the revised
cash flow estimate;
11) status of various Applicable Permits and compliance of conditions therein;
12) details of various royalty payment and insurances required to be taken by the
Contractor; and
13) such other reports as may be required by the Authority for enabling the Authority to
comply with its obligations under the other Project contracts.
14) details of defects by the Authority;
15) change in emission of any sewage or effluent of any nature whatsoever, whether
qualitatively or quantitatively;
16) any Material Adverse Effect;
17) declaration towards compliance with Applicable Laws including but not limited to
environmental and labour legislations;
18) declaration specifying compliance with all Manuals provided to the Contractor; and
19) any change in the flow of traffic in the existing Project Highway.

Contractor may compile the above information for Monthly Progress in the Authority’s
Engineer Monthly Progress Reporting Format prescribed by the MoRT&H/NHAI together
with such other information as sought in the reporting format for transmission to the
Authority’s Engineer no later than 10 (ten) days after the close of each month. Authority’s
Engineer upon receiving the report from the contractor and after due to inspection shall send
the same immediately to the Authority for further necessary action. A Screen shot of the
Cover page AE’s Monthly Progress Report format is enclosed herewith, which available in
MoRTH/NHAI website.
VIDEO RECORDING: [Cl.11.16]

➢ During the Construction Period, the Contractor shall provide to the Authority, quarterly
video recording for 03 (three) hour duration in CD or DVD disk format, covering the
status and progress of works of each quarter from the Appointed Date, within the
close of the next quarter.

Review & approval of QAP & methodology of

work submitted by Contractor

Take action for compliance of Audit Report of

the Authorirty/External Auditor

Submit Monthly Progress report as per the

prescribed format

Examine, inspect, measure work and test the

Materials and workmanship, and to check the
progress of work at all levels (production,
manufacture and construction)

Submit monthly inspection report to the

Inspection, Monitoring Authorirty
and Supervision by the
Authority's Engineer
Conduct Preconstruction review

Test Check at least 50% of the qty. or no. of

test prescribed for each category of work

Issue notice to Contractor for rejection,

removal of unspecfied/non-confroming work
and remedial measure by the Contractor

Recommend the Authorty to suspended

unsafe work by the Contractor and for
reovcation on remedial measures by the
contractor

perform all other works as specified in the

Agreement relating to inspection, montiroing
and suepervision
 ARTICLE-13
“CHANGE OF SCOPE”
➢ According to Agreement “Change of Scope’’ means:

a) Change in specifications of any item of works

b) Omissions or withdrawal of any work other than “deemed descoping” and
withdrawal of any work for ceiling up to 10% of Contract Price as per
Cl.8.3(iii)
c) Any Additional work, Plant, Materials or services and associated test on completion
not included in the (Original) Scope of the Project.

➢ Agency requiring “Change of Scope’’ and timing:

Both Authority and Contractor may require change of scope however such
proposal/request for change of scope shall made to the within the time frame as
mentioned in the flow chart below:

By the Authority not later than 06 months from the

[Cl.13.1(i)] Appointed Date

By the
Contractor not later than 90 days from the
Appointed Date
[Cl.13.2(ii)]
"CHANGE OF
SCOPE"
Beyond the period of 06 months of
the Appointed Date but before
expiry of 50% of the original
Scheduled Construction Period of
On mutual
the Project Highway, however,
agreement excluding major structures (e.g.
between
Major Bridge /ROB/RUB/ Flyover/
parties elevated road of more than 50 m
[Cl.13.1(ii)] length) subject to no any claims
(e.g. Extension of Time/
Prolongation related claims),
against the Authority.

➢ Procedure for Change of Scope: [Cl.13.2]

Procedure for Change of Scope proposed by the above entities within the time period
as mentioned above is illustrated below with flow chart.
➢ Change of Scope within a period of Six month from Appointed Date

Authority Authority’s
Representative Engineer (A.E)

Decision by the
‘Authority’

Issue of “Change of Scope Notice”

by A.E as per the direction of the Authority.

Proposal Submission by the Contractor within 15 days

form the receipt of “Change of Scope Notice”

Intimation by the Authority of acceptance/ rejection of

proposal or modification sought within 15 days of receipt
of the proposal.

Issue of “Change of Scope Order” in case acceptance

of proposal by the Authority within 15 days of receipt of
the proposal.

In case of modification sought, modified proposal to be

submitted by Contractor within 15 days of receipt of
notice from the Authority.

Issue of “Change of Scope Order” by the Authority

within 15 days of receipt of modified proposal

In case of rejection of the proposal, same should be

conveyed to the Contractor within 15 days of receipt of
Change of Scope Request
➢ Change of Scope within 90 days from the Appointed Date

Change of Scope Request by Contractor within 90

days from the Appointed date with proposal submission

Decision by the Authority within 15 days of receipt of the

Change of Scope Request.
(Acceptance/Rejection/modification)

Issue of “Change of Scope Order” by the Authority in

case acceptance.

In case of modification sought, modified proposal to be

submitted by Contractor within 15 days of receipt of
notice

Issue of “Change of Scope Order” by the Authority

within 15 days of receipt of modified proposal

In case of rejection of the proposal, same should be

conveyed to the Contractor within 15 days of receipt of
Change of Scope Request
➢ Change of Scope beyond the period of 06 month from
Appointed Date but before expiry of 50% of the original
Scheduled Construction.

Contractor Authority

No EOT & no Except major

prolongation Mutual agreement structures
related claim (span>50m)

Change of Scope Notice

by the Authority’s Engineer on direction of the Authority
subject to agreement of the Contractor

Proposal Submission by the Contractor within 15 days

from the receipt of “Change of Scope Notice”

Acceptance/modification
of the proposal by the Authority within 15 days of receipt
of the proposal

Issue of “Change of Scope Order” by the Authority in

case of acceptance within 15 days of receipt of the
proposal

In case of modification sought, modified proposal to be

submitted by Contractor within 15 days of receipt of
notice

Issue of “Change of Scope Order” by the Authority

within 15 days of receipt of modified proposal
➢ Restrictions on Change of Scope [Cl.13.4]
i. No Change of Scope shall be executed unless the Authority has issued the
Change of Scope Order save and except any works necessary for meeting any
Emergency, that too with verbal approval of the Authority which shall be
confirmed in writing in next 3 (three) days.
ii. The total value of all Change of Scope Orders shall not exceed 10% (ten
per cent) of the Contract Price.
iii. Notwithstanding anything to the contrary in the Article-13 relating to Change of
Scope, if any change is necessitated because of any default of the Contractor
in the performance of its obligations under this Agreement, the same shall not
be deemed to be Change of Scope, and shall not result in any adjustment of the
Contract Price or the Project Completion Schedule.
➢ Payment for Change of Scope [Cl.13.3]
Payment for Change of Scope shall be made in accordance with the payment
schedule specified in the Change of Scope Order.

➢ Power of the Authority to undertake Works [Cl.13.5]

i. In case of no mutual agreement between the Contractor and the Authority
occurs for a proposed Change of Scope Orders, Authority in such event, may,
after giving notice to the Contractor and considering its reply thereto, award
such Works or services to any person or agency on the basis of open
competitive bidding.
ii. It is also agreed that the Contractor shall provide assistance and cooperation to
the person or agency who undertakes the works or services hereunder.
iii. The Contractor shall not be responsible for rectification of any defects for works
awarded to the other agency due to scope change, but the Contractor shall carry
out maintenance of such works after completion of Defect Liability Period of
such work with other agency, during the remaining period of agreement of
Original scope of works, without any extra payment.

➢ Specifications and Standards for works and tests under scope change order
The provisions of the Agreement of the original scope of works insofar as they relate
to Works and Tests, shall apply mutatis mutandis to the works carried out in
accordance with the Article-13 for Change of Scope, either awarded to Original
Contractor or awarded to any other agency or Contractor.
➢ Proposal submission by the Contractor for Scope Change
Upon receipt of a Change of Scope Notice, the Contractor shall within 15 days submit
to the Authority and the Authority’s Engineer with due diligence, detailed proposal
furnishing the following information notwithstanding any other information as sought
in the Change of Scope Notice:
A. Different options for carrying out the proposed change of works, if any, with
the following details for each of the option:
i. break-up of the quantities, unit rates and cost for different items of work; and
ii. proposed design for the Change of Scope;
iii. proposed modifications, if any, to the Project Completion Schedule of the
Project Highway.
B. the impact, if any, which the Change of Scope is likely to have on the Project
Completion Schedule if the works or services are required to be carried out
during the Construction Period.

➢ Procedure for determination of the costs and time for the Change of Scope:
A. Determination of Cost
1) As per the Schedule of Rates (SOR) of concerned Circle of State’s Public Works
Department applicable for works and rates are also available at the base date.
2) As per the updated Schedule of Rates (SOR) of concerned Circle of State’s
Public Works Department applicable for works, updated based on WPI, where
rate at the base date is not available.
3) As per the rate derived on the basis of MORTH Standard Data Book for the items
not available in the Schedule of Rates (SOR). In such case, Authority’s Engineer
shall determine the prevailing market rates and discount the same considering
WPI to achieve the prevailing rate at the Base Date.
4) As per the rate determined by the Authority’s Engineer in accordance with Good
Industry Practice where rates for the items are not available in the SOR and
requisite information/rate analysis is also not available in the MORTH Standard
Data Book
Note: In case of the rate determination as per above procedure,
• If the Contract Price is lower/ higher than the Estimated Project Cost as per
RFP, then the SOR rates in above cases 1) & 2) shall be reduced/ increased
in the same proportion accordingly.
 • If the cost as determined by the Contractor and the Authority reveals a
difference of more than 10% (ten per cent), the cost as determined by the
Authority shall be considered as final and binding on the Contractor.
5) The design charges shall be considered only for new works or items (i.e. the
Works or items not similar to the works or items in the original scope) @ 1% (one
per cent) of cost of such new works or items.
6) The costs of existing works or items, which are being changed/ omitted shall also
be valued as per above procedure and only net cost shall be considered.
B. Determination of Time
The reasonable time for completion of works to be taken under Change of Scope
shall be determined by the Authority’s Engineer on the basis of Good Industry
Practice and if such time exceeds the Scheduled Completion Date, the issue of
Completion Certificate shall not be affected or delayed on account of construction
of Change of Scope items/ works remaining incomplete on the date of Tests.

➢ Payment for Change of Scope shall be made in accordance with the payment
schedule specified in the Change of Scope Order.
 ARTICLE 12
COMPLETION CERTIFICATE
➢ Completion Certificate will be issued by the Authority Engineer in the form set forth
in Schedule-L (the “Completion Certificate”) at the request of the Contractor
subject to the fulfilling of the followings:

a) Upon successful completion of all Works forming part of the Project Highway at
par with the provision of the Agreement
b) Upon successful completion of all Tests as specified in Schedule-K (Tests on
Completion) of the Agreement.
c) After the receipt of the notarized true copies of the certificate(s) of insurance,
copies of insurance policies and premium payment receipts in respect of the
insurance defined in Article 20 and Schedule P of this Agreement

Furnishing of certified
Completion of all Completion of all test copies of insurances/
works as per scope as per Schedule-K on policies/ premium
of agreement completion of work payment etc. as per
Article 20 and Sch- P

Issue of Completion
Certificate

➢ TESTS ON COMPLETION (As per Clause-2, Schedule-K)

Following are the test to be carried out on completion of all works at the date and time
mutually agreed by the Authority’s Engineer and the Contractor.

1. Visual and Physical Test of the Project Highway by the A.E

2. Riding quality test of each lane of the carriageway with the help of a Network Survey
Vehicle (NSV).
3. Rebound Hammer and Ultrasonic pulse velocity test for all bridges (major and minor
bridges)
4. Load testing for bridges with a span of 15(fifteen) meters or more.
5. Additional Tests as determined by the A.E including measuring the reflectivity of road
markings and road signs; and measuring the illumination level (lux) of lighting using
requisite testing equipment.
6. Environmental Audit (for the project requiring EC)
7. Safety Audit of the Project Highway
➢ SCHEDULE FOR CONDUCTING TESTS ON COMPLETION (AS PER CLAUSE-2,
SCHEDULE-K)
i. Contractor shall issue notice for his intention to subject the project highway to test as
specified in Schedule-K, no later than 30 (thirty) days prior to the likely date of
completion of construction.
ii. On issue of notice by the Contractor, Authority’s Engineer in consultation with the
Contractor, determine the date and time for each Test and notify the same to the
Authority who may designate its representative to witness the Tests.
iii. The Schedule of test shall be determined by giving at least 10 (ten) days to the
Contractor for furnishing to the Authority’s Engineer and the Authority detailed
inventory and particulars of all works and equipment forming part of Works.
iv. In the event of the Contractor and the Authority’s Engineer failing to mutually agree
on the dates for conducting the Tests, the Contractor shall fix the dates by giving not
less than 10 (ten) days’ notice to the Authority’s Engineer.

➢ TESTS ON AND AFTER COMPLETION OF PROJECT (As per Clause-5, Sch.-K)

The Authority Engineer will carry out tests with following equipment at his own cost in
the presence of contractor’s representative.

The first testing with the help of NSV shall be conducted at the time of issue of
Completion Certificate.
➢ AGENCY FOR CONDUCTING TESTS
• All Tests as mentioned in Clause-2 and Clause-5 of the Schedule-K excepts any
additional test as may require by the Authority’s Engineer for determining the
compliance of the Project Highway with Specifications and Standard shall be
conducted by the Authority’s Engineer himself or by engaging such other agency or
person as it may specify in consultation with the Authority.
• Additional test, where required shall be specified by the Authority’s Engineer and
the Contractor shall carry out such tests in accordance with Good Industry Practice,
for determining the compliance of the Project Highway with Specifications and
Standards.
➢ REVIEWING AND RESCHEDULING TESTS
• Authority Engineer shall observe, monitor and review all Tests to be conducted,
either by himself a or by the Contractor, on completion of the Project and it shall
have the right to suspend or delay such Test and require the Contractor to remedy
and rectify the Defect or deficiencies.
• If the Authority’s Engineer certifies to the Authority and the Contractor that it is
unable to issue the Completion Certificate, as the case may be, because of events
or circumstances on account of which the Tests could not be held or had to be
suspended, the Contractor shall be entitled to re-schedule the Tests and hold the
same as soon as reasonably practicable.
• Upon completion of each Test, the Authority’s Engineer shall provide to the
Contractor and the Authority copies of all Test data including detailed Test results.
 ARTICLE 14 & 15
MAINTENANCE, SUPERVISION &
MONITORING, TEST, TAKING OVER OF
PROJECT ETC.
➢ MAINTENANCE OF THE PROJECT HIGHWAY
Upon issue of completion certificate, the Contractor shall, corresponding to the Defects
Liability Period, commence the maintenance of the Project Highway as per
maintenance obligation as set forth in the Agreement including repair and rectifications
of defects and deficiencies as specified in Annexure-I of the Schedule-E on lump-
sum maintenance charges, to be paid by the Authority for the maintenance period
specified in the agreement. Maintenance charges shall be fixed as per the following:

Ref: Cl.14.1(i)
➢ Above amount for performance of maintenance obligation by the Contractor is
inclusive of all taxes, however, subject to price adjustment to be determined as per
the formula specified in agreement.
➢ Maintenance charges shall be calculated w.r.t the Original Contract Price, subject to
adjustment to the extent of change of scope and the works withdrawn as per Cl.
8.3(iii) but shall not include any price adjustment value for the stages.

Maintenance charges per annum inclusive of all taxes = [ x% of (Original

Contract Price ± value of any scope change order – deduction to the amount due
to any works withdrawn and descoped)]

Where, ‘x’ is the stipulated percentage of maintenance charges to be paid per

annum for the type of pavement including structures or stand-alone bridge project.
MAINTENANCE OBLIGATION OF THE CONTRACTOR Ref: Cl.14.1(ii)
a) Permitting safe, smooth and uninterrupted flow of traffic on the Project
Highway;
b) Repair and rectifications of the defects and deficiencies as specified in the
Annex-I of Schedule-E (Maintenance Requirement) as per maintenance
criteria as set out therein for project components like
i. Flexible/Rigid pavement of MCW and of approach/service/slip roads,
lay-byes etc.,
ii. Embankments/Slope,
iii. All Road safety signs and Appurtenances,
iv. Lighting System of Highway, Toll Plaza and others
v. Rest areas
vi. Tree plantations
vii. All Project facilities
viii. Pipe/box/slab culverts
ix. Superstructure/Substructure/Foundation/other services components of
Bridges/ROB/RUB/ VUP/VOP/FLYOVER etc.
c) Repair and rectifications of any other defects and deficiencies not specified in
Schedule-E as per the Good Industry Practice and as determined by the
Authority’s Engineer.
d) Emergency repairs/restoration due to any defect, deficiency or deterioration in
the project highway posing hazard to road safety or risk of damage to property.
e) Repair of damages caused due to any Force Majure Event and others for
which Contractor is not liable at the cost of Authority.
f) Remove promptly all obstruction and debris, damaged vehicles etc., that may
have caused due to any vehicle breakdowns and accidents, lane closures,
diversions etc. and shall report all accidents to the police forthwith including
reporting of all unusual occurrence as specified in the agreement.
g) Maintain and operate a round-the-clock vehicle rescue post with 1 (one)
Mobile crane of 30 (thirty) Ton capacity.
h) Informing the Authority of any unauthorized use/encroachments on the Project
Highway
i) Operate and maintain all communication, patrolling, and administrative
systems necessary for the efficient maintenance of the Project Highway.
➢ MAINTENANCE MANUAL
• At least 60 (sixty) days prior to the Project Completion Date, the Contractor shall
prepare in consultation with the Authority’s Engineer a Maintenance Manual and
submit 5 (five) copies thereof to the Authority’s Engineer.
• The Authority’s Engineer shall review the Maintenance Manual within 15 (fifteen)
days of its receipt and communicate its comments to the Contractor for necessary
modifications, if any.

➢ MONTHLY MAINTENANCE PROGARAMME: Cl. 14.3

For maintenance of the Project Highway, Contractor shall undertake monthly joint
inspection along with the Authority’s Engineer at least 10 (ten) days prior to the month
in which Maintenance is to be carried out.

Monthly Maintenance Programme shall contain the following:

a) Pavement Condition survey as per the format prescribed by the A.E
b) Proposed Maintenance work to be carried out
c) Deployment of resources for the proposed maintenance Works.

➢ DAILY INSPECTION BY THE CONTRACTOR

a) Contractor shall undertake a daily visual inspection of the project highway and
maintain the record thereof in a “Daily Inspection Register” as per the format
specified by the Authority’s Engineer.
b) Daily Inspection Register shall be made open to inspection by the Authority and the
Authority’s Engineer at any time during office hours

➢ PRE-MONSOON INSPECTION / POST-MONSOON INSPECTION

a) The Contractor shall carry out a detailed pre-monsoon inspection of all bridges,
culverts and drainage system before [1st June] every year in accordance with the
guidelines contained in IRC: SP: 35.
b) Report of Pre-monsoon Inspection together with details of maintenance works
proposed to be carried out shall be sent to the Authority’s Engineer before the [10th
June] every year.
c) The Contractor shall complete the required repairs before the onset of the monsoon
and send to the Authority’s Engineer a compliance report
d) Post monsoon inspection shall be done by the [30th September] and the
inspection report together with details of any damages observed and proposed
action to remedy the same shall be sent to the Authority’s Engineer.
➢ REPORTS OF UNUSUAL OCCURRENCE [Cl.15.4]
The Contractor shall report any accidents and unusual occurrences on the Project
Highway daily by facsimile or e- mail and summary of daily reports on monthly basis
within 3 (three) business days of the closing of month to the Authority and the Authority’s
Engineer. The Report shall include the following:
a) accident, death or severe injury to any person;
b) damaged or dislodged fixed equipment;
c) flooding of Project Highway; and
d) any other unusual occurrence.

Repair or rectify any Defect or deficiency as per

Annex-I of Schedule-E & other defects, not listed, as
as per Good Industry Practice.

Emergency repairs/restoration, repairs on account

of natural calamities etc.
Maintenance requirements/obligation of

Daily inspection of the Project and maintemnnace of

record therefof.

Pre-monsoon inspection & Post-monsoon

Contractor

inspection

Informing Authorirty of any unathorised use &

encroachment of Project highway

maintain and operate a round-the-clock vehicle

rescue post with 1 (one) mobile crane (30 MT
Capacity)

Removing waste/hazardous material/all debris/

accident debris etc. for keeping Project Highway
clean & tidy all time

Operate and maintain all necessary communication,

patrolling, and administrative systems.
➢ INSPECTION BY THE AUTHORITY’S ENGINEER [Cl. 15.2]
a) The Authority’s Engineer may inspect the Project Highway at any time, but at least
once every month, to ensure compliance with the Maintenance Requirements.
b) The Authority’s Engineer shall submit its report of inspection (“Maintenance
Inspection Report”) to the Authority and the Contractor within 10 (ten) days of such
inspection.
➢ MONTHLY MAINTENANCE STATEMENT [Cl. 15.2]
a) The Contractor shall submit its “Monthly Maintenance Statement” for performance of
its all maintenance obligations as set forth in the Agreement and maintenance work
done as per the “Monthly Maintenance Programme” in the prescribed format as
indicated in the Schedule-O.
b) Upon submission of “Monthly Maintenance Statement” by the Contractor, the
Authority Engineer shall carry out an inspection within 10 (ten) days to certify the
amount payable to the Contractor by giving a notice to the Contractor at least 3 (three)
business days in advance of such inspection.
c) For each case of non-compliance of Maintenance Requirements as specified in the
inspection report of the Authority’s Engineer, the Authority’s Engineer shall calculate
the amount of reduction in payment in accordance with the formula specified in
Schedule-M.
d) Any deduction made on account of non-compliance will not be paid subsequently
even after establishing the compliance thereof. Such deductions will continue to be
made every month until the compliance is ensured.

➢ AUTHORITY’S RIGHT TO TAKE REMEDIAL MEASURES [Cl.14.7]

In the event the Contractor does not maintain and/or repair the Project Highway or any
part thereof in conformity with the Maintenance Requirements, the Maintenance Manual
or the Maintenance Programme, as the case may be, and fails to commence remedial
works within 15 (fifteen) days of receipt of the Maintenance Inspection Report under
Clause 15.2 or a notice in this behalf from the Authority or the Authority’s Engineer, as
the case may be, the Authority shall, without prejudice to its rights under this Agreement
including Termination thereof, be entitled to undertake such remedial measures at the
cost of the Contractor, and to recover its cost from the Contractor. In addition to recovery
of the aforesaid cost, a sum equal to 20% (twenty per cent) of such cost shall be paid by
the Contractor to the Authority as Damages.
➢ OVERRIDING POWERS OF THE AUTHORITY [Cl.14.9]
a) In the event Contractor fails to cure any material breach caused by it, of its obligations
under this Agreement and, in particular, the Maintenance Requirements, within the
curing period of the notice served, the Authority in such circumstances, including
Termination thereof, may exercise overriding powers under the Clause 14.9 (ii) and
undertake required rectification at the cost and expenses of the Contractor. The
Authority shall be entitled to deduct any such costs and expenses incurred from the
payments due to the Contractor under Clause 19.7 for the performance of its
Maintenance obligations.
b) In the event of a national emergency, civil commotion or any other circumstances
specified in Clause 21.3, the Authority may take over the performance of any or all the
obligations of the Contractor to the extent deemed necessary by it, and exercise such
control over the Project Highway or give such directions to the Contractor as may be
deemed necessary.

➢ TESTS DURING MAINTENANC PERIOD [Cl.15.3]

For determining that the Project Highway conforms to the Maintenance Requirements,
the Authority’s Engineer may-
a) Instruct the Contractor to carry out carry out or cause to be carried out all such Tests
as specified by it in accordance with Good Industry Practice. The Contractor shall
furnish the results of such Tests forthwith to the Authority’ Engineer.
b) may appoint an External Technical Auditor to conduct an audit of the quality of the
Works at any time during Maintenance Period as per the prefixed timing and pre-
determined testing equipment and sample size by the Authority’s Engineer.

➢ TESTS ON COMPLETION OF MAINTENANCE PERIOD (AS PER SCHEDULE-Q)

1. Riding Quality test:
Riding quality of each lane of the carriageway shall be checked with the help of a
calibrated bump integrator and the maximum permissible roughness for purposes of
this Test shall be [2,200 (two thousand and two hundred only)] mm for each kilometre.
2. Visual and physical test:
The Authority’s Engineer shall conduct a visual and physical check of construction to
determine that all works and equipment forming part thereof conform to the provisions
of this Agreement. The physical tests shall include measurement of cracking, rutting,
 stripping and potholes and shall be as per the requirement of maintenance mentioned
in Schedule-E.
➢ TAKING OVER CERTIFICATE [Cl.14.10]
The Maintenance Requirements set forth in Schedule-E having been duly carried out,
Maintenance Period as set forth in Clause 14.1 (i) having been expired and Authority’s
Engineer determining the Tests on Completion of Maintenance to be successful in
accordance with Schedule-Q, the Authority will issue Taking Over Certificate to the
Contractor substantially in the format set forth in Schedule-R.
 ARTICLE 18
AUTHORITY’S ENGINEER
➢ Authority’s Engineer, may be a firm of Consulting Engineer or a PMC, or a Government
owned Corporate body having one of its primary function is the consulting, advisory and
supervisory services for engineering projects, independent of the Authority, engaged to
act as an ‘Engineer’ on behalf of the Authority for implementation of a EPC Project.

As per Ministry’s extant Circular No. RW-NH-34048/7/2013-S&R(B), dated: 29/10/2018

State PWD/NHAI/NHIDCL/BRO shall act as ‘Authority Engineer’ for Projects costing
up to Rs. 300 Crore w.e.f 01.01.2019. However, for project involving specialized nature
of structure/work and or difficult site conditions, Authority’s Engineer may be appointed
with approval of DGRD & SS, MoRTH/Chairman NHAI/MD NHIDCL as the case may
be. Accordingly, necessary modification in the EPC Agreement shall be carried out.

➢ Authority’s Engineer shall be appointed at least 10 days prior to the signing of Agreement
or before the declaration of Appointed date, whichever is earlier. And as such, RFP shall
be invited simultaneously or before the tender for civil work are invited.
➢ Authority’s Engineer shall perform the duties and exercise the authority as per agreement
and substantially as per the TOR as indicated in Schedule-N of the Agreement.
➢ Authority’s Engineer shall obtain prior written approval of the Authority in the following
circumstances-
▪ Any Time Extension;
▪ Any additional cost and payment for any Change of Scope Order.
▪ Termination Payment; or
▪ Issuance of Completion Certificate or
▪ Any other matter which creates a financial liability on either Party.
➢ DUTIES OF THE AUTHORITY’S ENGINEER
1. PRIOR TO APPOINTED DATE
▪ Authority's Engineer shall assist Authority in handing over of the site by preparing and
signing the “Handover Memorandum” as one of the parties.
▪ The Authority Engineer shall on behalf of the Authority, assists the Contractor in
obtaining all applicable permits required for utility shifting, Tree felling and procuring of
Construction etc.
▪ The Authority Engineer shall take all due steps for conformity by the Contractor in
dismantling structures and cleaning the site in acquired lands of the authority and shall
oversee all the works assigned to the contractor during development period including
pre-construction activities.

2. DURING CONSTRCUTION PERIOD

▪ Authority's Engineer shall review and approve all design & drawings, any revised
drawings, work-programme (with prior approval of Authority), QAP, Methodology of
works as submitted by the Contractor within the time-frame as mentioned in the
Agreement.
▪ Authority's Engineer shall grant written approval for diversion of traffic for maintenance
of existing pavement during construction period.
▪ The Authority’s Engineer shall review the monthly progress report furnished by the
Contractor and send its comments thereon to the Authority and the Contractor within
7 (seven) days of receipt of such report.
▪ The Authority’s Engineer shall submit a monthly Inspection Report for works to the
Authority.
▪ The Authority’s Engineer shall conduct the pre-construction review of manufacturer’s
test reports and standard samples of manufactured Materials and others as submitted
by the Contractor.
▪ The Authority's Engineer shall instruct the Contractor to carry out all test as per the
requirement of the agreement, as per the procedure laid down in the relevant IRC and
MoRT& H and as per the Good Industry Practice.
▪ The Authority’s Engineer shall test check at least 50 (fifty) percent of the quantity or
number of tests prescribed for each category or type of test for quality control by the
Contractor.
 ▪ The Authority’s Engineer shall instruct the Contractor to execute forthwith any urgent
road safety related work caused by any accident, unforeseeable event or otherwise at
the cost of the Contractor, other than that caused by Force Majeure Event.
▪ In case of milestone failure by the Contractor and in the event of project completion
could not be achieved by the Contractor within the Scheduled DOC, due to the delays
attributable to the Contractor, the Authority Engineer shall instruct the Contractor to
submit his proposed strategy for acceleration of project progress and probable DOC
within 15 (fifteen) days. The Authority’s Engineer shall review the report and send its
comments to the Authority and the Contractor forthwith.
▪ The Authority’s Engineer shall obtain from the Contractor a copy of all the Contractor’s
quality control records and documents before the Completion Certificate is issued
▪ Authority’s Engineer shall recommend to the Authority suspension of the whole or part
of the Works if the work threatens the safety of the Users and pedestrians.
▪ In the event that the Contractor carries out any remedial measures to secure the safety
of suspended works and Users, the Authority’s Engineer shall inspect such works
within 3 (three) days of receiving such notice, and make a report to the Authority
forthwith, recommending whether or not such suspension may be revoked by the
Authority.
▪ The Authority’s Engineer shall carry out, or cause to be carried out, all the Tests
specified in Schedule-K and issue a Completion Certificate, as the case may be.

3. DURING MAINTENANCE PERIOD

▪ The Authority’s Engineer shall carry out a joint monthly inspection with the Contractor
in the preparation of a Contractor’s “Monthly Maintenance Programme”.
▪ The Authority’s Engineer shall undertake regular inspections and submit monthly
‘Maintenance Inspection Report’ to the Authority and the Contractor.
▪ The Authority’s Engineer shall monitor and review the results of tests and remedial
measures undertaken by the Contractor as per the Maintenance Manual”
▪ The Authority’s Engineer shall in conformity with Good Industry Practice, specify the
permissible limit of deviation or deterioration with reference to the Specifications and
Standard; and time limit for any defects or deficiency that are not specified in Schedule-
E to be carried out by the Contractor.
▪ The Authority’s Engineer shall grant the permission for any lane(s) closure within
5(five) days of receiving a request from the Contractor for undertaking maintenance
and repair.
4. MISCELLANEOUS
▪ The Authority’s Engineer shall submit copy or copies of all communications,
comments, instructions, Drawings or Documents sent to the Contractor pursuant to
this TOR and copy of all the test results with comments of the Authority’s Engineer
thereon to the Authority immediately on their execution and occurrence, retaining in
his safe custody at least one copy each of all Drawings and Documents received by it,
including ‘as-built’ Drawings and ‘as-built’ survey layout.
▪ The Authority’s Engineer, if called upon by the Authority or the Contractor or both, shall
mediate and assist the Parties in arriving at an amicable settlement of any Dispute
between the Parties.
▪ The Authority’s Engineer shall inform the Authority and the Contractor of any event of
Contractor’s Default within one week of its occurrence.

➢ PAYMENTS BY AUTHORITY’S ENGINEER

▪ The Authority’s Engineer shall determine and review the amount of damage to be paid
to the Contractor or to be paid by the Contractor, as the case may be, for the defaults
caused by the parties at the rate and manner for the events as specified in the
Agreement and convey its determination.
▪ The Authority’s Engineer shall withhold payments for the affected works for which the
Contractor fails to revise and resubmit the Drawings to the Authority’s Engineer in
accordance with the provision specified in the Agreement.
▪ The Authority’s Engineer shall issue Interim Payment Certificate (IPC) and final
payment Certificate, as the case may be, against the Stage Payment Statement and
Monthly Maintenance Statement and their corresponding final payment statements as
submitted by the Contractor within time frame and in the manner as specified in the
agreement for discharging such acts.
ARTICLE 19
PAYMENTS
• CONTRACT PRICE
1) The Authority shall make payments to the Contractor on the basis of ‘Contract Price’
specified in the Agreement which covers all the Contractor’s obligations for the Works
under this Agreement and all things necessary for the Construction and the remedying
of any Defects in the Project Highway.
2) The Contract Price includes all duties, taxes, royalty, cess, charges, and fees that may
be levied in accordance with the laws and regulations in force as on the Base Date on
the Contractor's equipment, Plant, Materials and supplies acquired for the purpose of
this Agreement and on the services performed under this Agreement. (Applicable taxes
and charges)
3) The Contract Price shall not be adjusted for any change in cost in the above applicable
taxes and charges, except due to any Price Adjustment, as stated in Clauses 19.10,
and any addition or reduction to the Contract Price, as the case may be, due to the
Change in Law, as stated in Clauses 19.17.
4) Contract Price shall not include the cost of Maintenance, which shall be paid separately
in accordance with the provisions of Clause 19.7.(Payments due to Maintenance)
5) The Contract Price shall not be adjusted to take account of any unforeseen difficulties
or costs, unless otherwise provided for in this Agreement.

Due to variation in rate and prices of

basic commmodities of work.
Adjustment to Contract Price

any addition or reduction to the

Contract Price due to change of law

Due to Change of Scope

Due to deemed descoping of works as

per Cl.8.3

Work withdrawn as per Cl.8.3

 ADVANCE PAYMENTS

STAGE-PAYMENTS & FINAL PAYMENT FOR

WORKS DONE

PAYMENT DUE TO MAINTENANCE

VARIOUS PAYMENTS TO

PAYMENTS DUE TO SCOPE CHANGE ORDER

CONTRACTOR

IF ANY

PAYMENTS DUE TO PRICE ADJUSTMENT FOR

WORKS & MAINTENANCE IF ANY.

PAYMENTS DUE TO DAMAGE CLAIM IF ANY

BONUS FOR EARLY COMPLETION

PAYMENTS DUE TO ADJUSTMENT IN THE

CONTRCAT PRICE (ADDITION) DUE TO ANY
REASON AS STATED AND PERMITTED IN THE
AGREEMNT.

1. ADVANCE PAYMENT: (Cl.19.2)

TYPE OF ADVANCE a) Mobilisation Advance b) against newly purchased
key Construction
equipment
Permissible Amount Up to 10% of Contract Price Up to 5% of Contract Price
Payment mode In 02 (two) equal instalment. In a single or multiple
Time of application 1st. instalment: instalment depending on the
at any time after the Appointed value of equipment (new)
Date. brought to the site subject to a
2nd instalment: ceiling amount as stated
at any time, after 60 (sixty) days above.
from the Appointed Date subject to
release of payment on submission
of utilization certificate of 1st.
instalment of advance.
Bank Guarantee 110% of each install amount. 110% of each install amount.
amount.
Interest payable @ “Bank Rate + 3%” @ “Bank Rate + 3%”
Repayment of @ 15% (fifteen percent) deduction same
advance + interest from each stage-payment
including recovery of interest @
“Bank Rate + 3%” subject full
recovery before expiry of the 80%
(eighty percent) Schedule
Construction Period
Cases of recovery Case-I: Same
of outstanding when gross certified stage
advance by payment is less than 20% of
encashment of the Contract Price (excluding
Bank Guarantee of Advance amount, deduction and
the advance. repayment of retention money)
within 50% of the Scheduled
Construction Period from the
Appointed Date.
Case-I:
In the event of Termination for
Contractor Default.
The outstanding amount of
advance to be recovered will
attract payment of interest @
Bankrate +5% per annum from the
date of Advance Payment to the
date of recovery
Form of BG As per Annexure-III of Schedule-G Same
Option of part BG Part BG allowable subject to each same
against an advance part not less than 2.75% (two point
seven five per cent) of the
Contract Price.
Release of BG/part within 30 (thirty) days of the Same
BG recovery of advance
corresponding to the BG amount.
Payment of Within 15 (fifteen) days of the Same
Advance by the receipt of its respective requests (subject to new equipment is a
Authority subject to fulfilment of all the terms key-equipment as per agreed
and conditions as said in the Construction programme and
Agreement Clause 19.2 is brought to site.
New equipment is purchased
in the name of Contractor only
and is verified by Authority’s
Engineer to have been
brought to site.
2. STAGE PAYMENT FOR WORKS: (Cl.19.3, 19.4 & 19.5)
• Stage Payment is the interim payment to be made by the Authority to the Contractor
on issue of ‘Interim Payment Certificate (IPC)’ by the Authority’s Engineer based
on the payment claim made by the Contractor on submission of “Stage Payment
Statement (SPS)”.
• Stage payment Statement furnishes the various stages of work completed by the
Contractor in a length, number or area as specified and valued in accordance with
the proportion of the Contract Price assigned to each item and its stage as furnished
in Schedule-H.
• Schedule-H specifies the various Items of works and their associated stages to be
executed as per the scope of the Agreement.
• It also specifies the weightage of each Item in percentage of the Contract price as
well as weightage of associated stages in terms of the allocated weightage of the
particular Item.
• Payment procedure pertaining to each stage i.e., unit of measurement, procedure for
determining the cost per unit and minimum quantities to be executed to be admissible
for payment etc. are also indicated in the Schedule-H.
• Weightages and payment procedure for Stage “Widening and strengthening of
existing road” and “Other works” of the Item “Road Works” is illustrated as below
at par with Schedule-H. For all other stages, reference shall be made to the Schedule-
H of the Agreement

Detail procedure for payment claim by the Contractor (Stage Payment

Statement), Certification of payment by the Authority’s Engineer (Interim Pay
Certificate) and Payment disbursal by the Authority is discussed in the
subsequent sections.
TABLE-A: Item of Works, Stages for payment, weightages, procedure for estimating cost per unit, payment procedure for
Item-1 & 4 of the Schedule-H
Sl. Item Weightage Stages of the Item Weightage Unit of # Total Cost per unit Min.
No. of Item in of the measurement Quantity (In Rupees) quantity
terms of stage in of the to be
Contract terms of stages to 𝐏×𝐖𝐢 ×𝐰𝐢 executed
Price Item’s be Ci = for
𝐐𝐢
‘Wi’ (%) weightage executed payment
(%) ‘Qi’ P = Contract
‘wi’ (%) Price
1. Road W1 A. Widening and
works strengthening of
including existing road
culverts, (1) Earthwork up to Linear length 10% of the
widening top of the sub-grade w1 Q1 C1
(km.) total length
and
repair (2) Sub-Base Linear length 10% of the
w2 Q2 C2
of culverts Course (km.) total length
(3) Non-Bituminous Linear length 10% of the
w3 Q3 C3
Base Course (km.) total length
(4) Bituminous Linear length 10% of the
w4 Q4 C4
Base Course (km.) total length
(5) Wearing Coat Linear length 10% of the
w5 Q5 C5
(km.) total length
(6) Widening and
repair of culverts w6 Nos. Q6 C6 05 Nos.

4. Other W4 (i) Toll Plaza each

works w7 each Q7 C7 completed
toll plaza
(ii) Road side drains 10% of the
w8 km. Q8 C8
total length
 Sl. Item Weightage Stages of the Item Weightage Unit of # Total Cost per unit Min.
No. of Item in of the measurement Quantity (In Rupees) quantity
terms of stage in of the to be
Contract terms of stages to 𝐏×𝐖𝐢 ×𝐰𝐢 executed
Price Item’s be Ci = for
𝐐𝐢
‘Wi’ (%) weightage executed payment
(%) ‘Qi’ P = Contract
‘wi’ (%) Price
(iii) Road signs,
10% of the
markings, km stones, w9 km. Q9 C9
total length
safety devices, ….
(iv) Project facilities
(a) Bus Bays w10 each Q10 C10
on
(b) Truck lay-byes w11 each Q11 C11 completion
(c) Rest areas w12 each Q12 C12 of the all
facilities
(d) others w13 each Q13 C13
(v) Road side plantation on full
w14 linear length Q14 C14
completion
(vi) Repair of protection
works other than
approaches to the
bridges, 10% of the
w15 linear length Q15 C15
elevated sections/ total length
flyovers/grade
separators
and ROBs/RUBs.
(vii) Safety and traffic pro-rata
management during w16 each Q16 C16 basis every
construction six months
# Quantity of Stages for the Items as per the Scope of the Agreement shall be computed as per the approved design and drawing and in units as
specified in the Schedule-H.
STAGE PAYMENT STATEMENT FOR WORKS [CL.19.4]
• Contractor shall submit monthly ‘Stage Payment Statement’ for interim payment to the
completed stages of the items as indicated in the Schedule-H up to the end of the month
by the 7th (seventh) day of the next month subject to the completion of the minimum
quantities for the stages as indicated in the Schedule-H.
• It shall be in the form set forth in the Schedule-O and submitted in 3 (three) copies to
the Authority’s Engineer, specifying each completed stages in a length, number or area
as specified and valued in accordance with the proportion of the Contract Price assigned
to each item and its stage in Schedule-H.
• Progress Report (Progress Strip Chart) and other supporting documents like copy of
Request for Proposal (RFI), reports of field test undertaken, statement of quantity of
stages executed, material utilisation etc. for every stage for which payment claimed shall
be accompanied with the Stage Payment Statement.

Part payment against Stage Payment Statement: [Cl.19.5 (i)]

Part Payment • Within 10 (ten) days of receipt of the Stage

(pending issue of the Interim
Payment Certificate)
• Within 10 (ten) days of the receipt of
Payment Statement from the Contractor, the
Authority’s Engineer shall broadly determine
the amount due to the Contractor and
recommend the release of 90 (ninety) percent
of the amount so determined as part payment
against the Stage Payment Statement,
pending issue of the Interim Payment
Certificate by the Authority’s Engineer.
recommendation of the Authority’s Engineer,
the Authority shall make electronic payment
directly to the Contractor’s bank account.
Issue of Interim Pay Certificate (IPC) for the amount due against Stage payment
Statement: [Cl.19.5 (i)]

Interim Pay Certificate (IPC) • Within 15 (fifteen) days of the receipt of the
for any amount due against stage Stage Payment Statement, the Authority’s
payment statement Engineer shall determine and shall deliver to
the Authority and the Contractor an IPC
certifying the amount due and payable to the
Contractor, after adjusting the payments
already released to the Contractor against the
said statement. (e.g., adjusting already issued
90 (ninety) percent part payment as stated in
Cl.19.5 (i))
Withholding payment from Interim Payment for non-compliance if any [Cl.19.5 (iv)]
The Authority’s Engineer may withhold from payment:
• The estimated value of work or obligation that the Contractor has failed to perform in
accordance with this Agreement. Provided that Authority’s Engineer had already
notified the Contractor for such non-compliance.
• The estimated cost of rectification of work done being not in accordance with this
Agreement.
• Reasons for withholding payment shall be recorded.

Correction of Interim Payment Certificates [Cl.19.18]

The Authority’s Engineer may by an Interim Payment Certificate make any correction or
modification in any previous Interim Payment Certificate issued by the Authority’s Engineer.

Release of Payment by the Authority against stage payment statement and on issue
of Interim Pay Certificate (IPC): [Cl.19.9)]
• Authority shall make payment to the Contractor no later than 30 (thirty) days from the
date of submission of the Stage Payment Statement to the Authority’s Engineer.
[Cl.19.9 (i) (a)]
• IPC is to be issued by the Authority’s Engineer to the Contractor and to the Authority
within 15 (fifteen) days of the receipt of the Stage Payment Statement as per Cl.19.5(i).
In the event IPC is not issued by the Authority’s Engineer within the aforesaid period
of 15 (fifteen) days, then within the period of 30 (thirty) days from the submission of
 Stage Payment Statement, the Authority shall pay the amount shown in the
Contractor’s Stage Payment Statement and any discrepancy therein shall be added
to, or deducted from, the next payment certificate issued to the Contractor. [Cl.19.9 (i)
(b)]

Payment of Interest to the Contractor due to delayed payment by the Authority:

[Cl.19.9 (ii)]
In the event of the failure of the Authority to make payment to the Contractor within 30
(thirty) days from the date of submission of the Stage Payment Statement to the
Authority’s Engineer, the Authority shall be liable to pay to the Contractor interest @ 9%
(nine per cent) per annum, on all sums remaining unpaid from the date on which the
same should have been paid, calculated in accordance with the provisions of sub-Clauses
(a) and (b) of Clause 19.9 (i) and till the date of actual payment.

Payment of Damages [Cl.19.8]

i. The Contractor may claim Damages due and payable to it in accordance with the
provisions of this Agreement.
ii. The Authority’s Engineer shall issue the IPC within 15 (fifteen) days of the receipt
of the claim under Clause 19.8.i above, after making adjustments in accordance
with the provisions of this Agreement.
The Authority shall pay to the Contractor the amount due under any IPC within a
period of 30 (thirty) days from the date of the submission of the claim under this
Clause 19.8.
In the event of the failure of the Authority to make payment to the Contractor within
the specified time, the Authority shall be liable to pay to the Contractor interest
thereon and the provisions of Clause 19.9 [Cl.19.9 (ii)] shall apply mutatis
mutandis thereto.

FINAL PAYMENT STATEMENT FOR WORK DONE [CL.19.13]

i. Within 60 (sixty) days after receiving the Completion Certificate under Clause 12.2,
the Contractor shall submit to the Authority’s Engineer for consideration 6 (six) copies
of a Final Payment Statement (the “Final Payment Statement”) for Works, with
supporting documents showing in detail, in the form prescribed by the Authority’s
Engineer:
 a) the summary of Contractor’s Stage Payment claims for Works as submitted in
accordance with Clause 19.4;
b) the amounts received from the Authority against each claim; and
c) any further sums which the Contractor considers due to it from the Authority.

[If the Authority’s Engineer disagrees with or cannot verify any part of the Final
Payment Statement, the Contractor shall submit such further information as the
Authority’s Engineer may reasonably require.]

ii. If the Authority’s Engineer does not prescribe the form referred to in Clause 19.13 (i)
within 15 (fifteen) of the date of issue of the Completion Certificate, the Contractor
shall submit the statement in such form as it deems fit.

Interim Pay Certificate/Final Payment Certificate against Final Payment Statement:

[Cl.19.13]
The Authority’s Engineer shall deliver to the Authority:
i. an IPC for those parts of the Final Payment Statement which are not in dispute,
along with a list of disputed items which shall then be settled in accordance with
the provisions of Article 26; or
ii. a Final Payment Certificate in accordance with Clause 19.15 if there are no
disputed items.

Stage Payement for work done

Submission of Stage Payment

Statement (SPS) by the Contractor

Issue of Interim Payment

Certificate (IPC) by the Authority's
Engineer within 15 days

Interim Payment against IPC by

the Authority within 30 days of
submission of SPS