casita wort yd savivart faore Per fefties sage oft othe arora state, Tt ae drat firs, Aha FAfea, a—eiere re, af Reeft—110001 National Highways & Infrastructure Development Corporation Limited AULONG nERASTRUCTURE- BLILOWIG THE RATION Ministry of Road Transport & Highways Govt of Inia BHARATMALA {3d Flac PT Busing 4-Pariament Steet, New Dei-1 10001, +31 11 29451600, wmwunhidc.com rox Temosrte CIN: Uasqo00L.2014G01269062 CIC) (A Government of India Enterprise) NHIDCL/Assam/NH-53/SGCCL/201 onrannsy i015 Date:22.07.2021 OFFICE ORDER Sub: Placing of M/s Shree Gautam Construction Co. Ltd., in the Negative List of the NHIDCL. National Highways & Infrastructure Development Corporation Limited (hereinafter referred as “NHIDCL or Authority”) and M/s Shree Gautam Construction Co. Ltd (hereinafter referred as “EPC Contractor”) signed an EPC Agreement on 08.04.2015 for the work of “Two laning with paved shoulder of NH-53 from Silchar to Badarpur section frok km 6.25 to km 10.40 (Total Length 4.77 km) in the state of ‘Assam on EPC basis under SARDP-NE” at the contract price of Rs.53.21 Crore, excluding GST, with construction period of 803 days commencing from the Appointed Date i.e. 01.10.2015 on the terms, conditions and covenants contained in the Contract Agreement which are in force and remain effective. 2. Authority, in fulfillment of its obligations has handed over the required stretches of the Project Highway to the EPC Contractor as per the essential Terms and Conditions of the Contract Agreement, the EPC Contractor was obliged to undertake the Survey, Investigation, Design, Engineering, Procurement, Construction and Maintenance of the Project and observe, fulfill and comply with and perform its obligations set out under this Contract Agreement and moreover follow the Contract ‘Agreement and the obligations cast thereon with full adherence, diligence and sincerity. 3. As per Clause 10.3.1 of EPC Contract Agreement, the Contractor shall construct the Project Highway as specified in Schedule-B and Schedule-C, and in conformity with the Specifications and Standards set forth in Schedule-D. The 803" (Eight Hundred Three) day from the Appointed Date (i.e. 11 December 2017) shall be the scheduled completion date (the “Scheduled Completion Date”) and accordingly the JMilestones date & scheduled Completion date falls on along with targeted financial progress (%) under the governance of Schedule-J are furnished below: SI. [Project Milestones [Stipulated daysScheduled Targeted INo. {for completion|Completion —_ Financial lof —_milestone|Date offProgress rom AppointedMilestone from) Date lAppointed Date i Milestone-1 200 17.04.2016 70% if Milestone-Tr 440 13.12.2016 30% ii Milestone-Iil 585 07.05.2017 60% Ww | Scheduled Completion 803 T1.1Z.2017 100% 4, Subsequently, the Authority and the EPC Contractor mutually agreed to enter into 3" Supplementary Agreement which was executed on 07" December, 2017, in order to resolve the dispute on Extension of Time amicably and mutually agreed to extend the date of Milestones (i.e. the revised completion schedule of milestones as given in Schedule-J of EPC Contract Agreement) other than the date of milestones falls as per Scheduled Completion Date of Milestone from Appointed Date and the revised date of milestones as given in the Supplementary Agreement are as follows: SI. Project Milestones Revised daysRevised [Targeted INo. for completionCompletion —_ Financial f —milestoneDate offProgress rom AppointedMilestone from| [Date |Appointed Date fi Milestone-1 623 75.06.2017 10% fi Milestone-Tr 863 10.02.2018 30% i Nilestone-IIt 7009 05.07.2018 60% iv Scheduled Completion TT 08.02.2019 700% 5. It is to mention that EPC Contractor has achieved the Milestone-I & II in line with the 3° Supplementary Agreement (i.e. as per revised/extended schedule) and the status of achievement of milestones are represented below: )1. Project Milestones Revised Date offfargeted No. Completion [Milestones Financial [Date ofachieved —_byProgress ilestone from|Contractor Appointed Date ‘Milestone-T 15.06.2017 15.06.2017 10% fi ‘Milestone-I 10.02.2018 10.02.2018 30% fit Milestone-IIT 05.07.2018 (06.11.2018 60% liv Scheduled Completion | 08.02.2019 Not yet 100% achieved 6. _ That Authority had granted further Extension of time of 693 days i.e. upto 31.12.2020 for final completion considering the delay events on account of delay in approval of revised electrical estimate, encumbrance free ROW and RE wall design & drawing issues and accordingly final completion for 31.12.2020. 7, The EPC Contractor has failed in mobilizing the adequate resources, Manpower, ‘Materials, Machinery and Plant & Equipment etc. to meet the desired progress as per Milestones fixed as per Schedule-J of Contract Agreement/Supplementary Agreements. 8, The EPC Contractor could not achieve the desired progress due to (a) abnormal delay in approving of design & drawings of railway span of ROB, (b) the EPC Contractor took much time to initiate to arrange all necessary statutory approvals from Railway Authorities which is another setback for poor progress, and (c) EPC Contractor is very much reluctant towards performance and fulfillment of all obligations in accordance with the provisions of Contract Agreement and matters incidental thereto as well as to work with good industry practice and, therefore, it severely affects the progress of work within time for completion of assigned task. 9. The noted monthly slow rate of progress achieved by the EPC Contractor from April, 2020 onward is readily reckoned as under: Sl. No./Month lYear Physical |Cumulative Physical rogress Progress Achieved (%) chieved during ‘he month (%) f1 Apri 2020 0.00 85.14 SSI. No.|Month ear proves poset Physical progress Progress Achieved (%) chieved durin: the month (%) iz May 2020 0.56 85.70 B June 2020 0.84 86.54 i July 2020 52 88.06 5 August 2020 0.18 88.24 6 September 2020 0.07 88.31 i7 ‘October 2020 0.22 88.53 B November 2020 0.86 89.39 fe December 2020 14 90.63 Fo January 2021 2.82 93.25 Hii February 2021 2.55 95.80 Hz March 2021 0.60 96.40 HS Aprit 2021 0.08 96.46 fia May 2021 0.00 96.46 10. The monthly average rate of physical progress from April 2020 to March 2021 for a period of 12 months is only 0.94% while the Contractor was supposed to complete the project by March 2021 as per Authority’s Directive. The EPC Contractor could not perform in the peak working season, hence, the delay in completion of the project is solely attributable to the EPC Contractor which is self evident from the monthly average progress. 11, In order to hide the poor performance from April 2020 to June 2021, the EPC Contractor has been coming up with unjustifiable excuses through various letter to hide its performance. The same had been suitably replied by the Authority Engineer from time to time. Even though the Contractor has been repeatedly promising in various progress review meeting chaired by MD, NHIDCL,, fortnightly since June 2020 that the final completion would be within 31.12.2020. During the Review Meeting held on 16.12.2020, the Contractor agreed to complete the work upto March 2021 but till date the Contractor has miserably failed to honour its commitment. ul12. Despite the Authority’s various directions issued in the Review Meetings dated 23.02.2021,16.03.2021, 06.04.2021, 27.04.2021, 18.05.2021, the EPC Contractor could not achieve the completion of the Project. 13. NHIDCL has extended its full cooperation, all the facilities and advances to the EPC Contractor as liberally as possible which included maintaining liquidity, liberalizing Schedule ‘H’, Extension of Time etc. However, the EPC Contractor has not yet shown any indication to put its house in order and live upto the commitment, made while signing the Contract Agreement and the Review Meetings. 14. The progress of various core activities were observed to be the poorest, which clearly indicates that the EPC Contractor has failed to comply with the directions of the Authority and resorted to false assurances, which is not acceptable. 15. Time and again the EPC Contractor has been advised to increase resources in various meetings conducted by the NHIDCL so that targeted milestone can be achieved. The EPC Contractor has failed to mobilize the adequate Resources, Manpower, Materials, Machinery and Plant & Equipment etc. The assurances with regard to the target given in the Review Meetings have not been met by the EPC Contractor for the reasons solely attributable to the EPC Contractor. 16. That inspite of repeated notice/warnings issued to the EPC Contractor with regard to the slow progress of work, the same have proved to be a futile exercise and could not yield desired results from M/s Shree Gautam Construction Co. Ltd. 17. The EPC Contractor has failed to understand the criticality of the Project keeping in view the fact that various stakeholders (viz State/Central Govt.) are reviewing the project on regular basis, yet the progress of works turned out to be unsatisfactory due to inadequate engagement of resources by the EPC Contractor. It has literally ignored the inconvenience, wastage of time and money to public and State economy. 18. The EPC Contractor’s act is totally unethical and shows total disregard to its commitment made during the Review Meetings, moreover, the EPC Contractor has also proved that it is not at all bothered about the public discomfort that is being faced by the people of Assam due to slow execution of the project. 19. That considering the current speed of work, M/s Shree Gautam Construction Co. Ltd., will not be able to complete the project by 31.10.2021.20. That be the case, it is clear and certain that in the above mentioned circumstances that: i, EPC Contractor has failed to achieve milestones. ii, EPC Contractor has failed to achieve targets/interim targets duly communicated by the Authority and its officers. ili. EPC Contractor has failed to mobilize machinery/ manpower as per the direction of the Authority or its officers. iv. EPC Contractor has shown total lack of ability to execute project of such size. v. EPC Contractor has failed to abide by any lawful directions of the Authority or its officers. vi. EPC Contractor has not improved performance in spite of numerous letters/notices as well as review meetings with the Authority, vii. EPC Contractor has violated the Contract Agreement signed with the Authority. viii, EPC Contractor has not followed the Good Industry Practice which is inherent in the Contract Agreement. 21, That NHIDCL Regional Office-Guwahati, vide letter no. RO/SIL/S- B/Civil/Corres/2/7088 dated 04.07.2021 issued show cause notice to the EPC Contractor for placing it in the Negative List of the Authority in terms of Office Order No. 227/2020 dated 15.12.2020. By way of the Show Cause Notice, the EPC Contractor was called upon to explain in writing within 15 days as to why the EPC Contractor should not be placed in the Negative List of NHIDCL. 22. The EPC Contractor vide letter dated 16.07.2021 replied to the Show Cause Notice dated 04.07.2021. By way of the reply, the EPC Contractor has alleged some issues for delay e.g. (1) Post Covid Pandemic conditions (ii) Force Majeure events (iii) Final revision in GAD, etc. 23. The reply dated 16.07.2021 of the EPC Contractor has been examined and is being rejected on the following grounds: yw(i) During the site visit of Special Project Monitor (SPM) on 04" & 05" January, 2021, the EPC Contractor has committed to the SPM that the trial assembly would be ready by 06.02.2021. However, the trial assembly inspection could only commence on 01.07.2021 after a lapse of almost 5 months, especially due to the inability of the EPC Contractor to carry out prerequisite activities timely, necessary before trial assembly inspection and lackadaisical attitude for ground liaison with RDSO/NF Railway Officials. (ii) The EPC Contractor was issued notifications for delay in construction as per Clause 10.3.2 of the Contract Agreement on various occasions for submission of reasonable details about the steps it proposes to take for expediting the progress of the work and the period within which they will achieve the project completion, but the EPC Contractor has failed to submit the same, (iii) The details of phase wise land handing over are given below: a. Till September 2015, total unencumbered handed over land= 3.752 Km. b. Till March 2019, total unencumbered handed over land= 0.659 Km ie. 100% unencumbered land was handed over to EPC Contractor by March 2019. (iv) Due to non launching of Railway span, the ROB structure has become safety hazard for road users especially during the night time. 24, The subject stretch of road is having national connectivity of Silchar City with Guwahati, Meghalaya, Tripura, hence, completion of the project in question in a time bound manner is of utmost priority. Keeping in view the interest of the project & repeated communications from Authority & various review meetings held with MD, NHIDCL, it was repeatedly advised to the EPC Contractor to complete the project, but in vain, 25. In view of the above, it is clearly evident that M/s Shree Gautam Construction Co. Ltd., has failed in meeting the obligations as per the Contract Agreement and also failed in mobilizing the requisite resources for the project which has already caused vydetrimental effect in respect of time and economy for the project of national importance. 26. In light of the aforesaid facts and circumstances, considering the non- responsive, non-professional attitude of the EPC Contractor towards their obligations as per the provisions of the Contract Agreement and failure to meet the agreed targets and continued painful slow progress of work, NHIDCL is hereby placing M/s Shree Gautam Construction Co. Ltd, in the ‘Negative List’ of the Authority in terms of Office Order No. 227/2020 dated 15.12.2020 for a period of 01 (one) year from the date of issuance of this order or till satisfactory completion of the Project, whichever is earlier. 27. This issues with the approval of the Competent Authority. wu (W. Blah) Executive Director (Tech.) To, ‘M/s Shree Gautam Construction Co. Ltd, Singhi Hyundai (1* Floor), Sonai Road, Opp. Holly Cross School, P.O, Silchar-788 006 Distt. Cachar Assam Copy to information to: 1, Director (Tech.), NHIDCL Hqr. 2, ED(T/Ps), NHIDCL 3. Sr. Manager (IT), NHIDCL Har.- to put the notice on the website and also give wide publicity.