A report

On

NHAI Contract.

submitted to

Prof. Manaswee K. Samal

In partial fulfillment of the requirements of the course

Business Law

On
4th Feb 2022

By

- BM 20056
Soham Chakraborty
Sayantika Bera - BM 20048
NAME OF PROJECT: COLLECTION OF USER FEE THROUGH FEE COLLECTING
AGENCY ON THE BASIS OF COMPETITIVE BIDDING ON E-TENDER BASIS AT
Pathoroundi Fee Plaza at km 221.570 at two laning with paved shoulder Shahdol- Anuppur at
Madhya Pradesh/Chhattisgarh Border section from design chainage km 188.200 to km 234.000
of NH-78 (New NH No. 43) in the state of Madhya Pradesh.
Date Of Publication - 31.01.2022

Risk and Risk Mitigation:

Risks in execution, financial and legal authorities:

Rejection of Bids: The Authority reserves the right to reject any or all Bids and to annul the
Bidding Process at any time. In the event the Authority rejects or annuls all the Bids, it may
invite all eligible Bidders to submit fresh Bids hereunder.

Cost of Bidding: The Bidders shall be responsible for all of the costs associated with the
preparation of their Bids and their participation in the Bidding Process. The Authority shall not
be responsible or in any way liable for such costs, regardless of the conduct or outcome of the
Bidding Process.

Correction error: Bids determined to be substantially responsive will be checked and corrected
by the Authority for any discrepancy. If the Bidder does not accept the corrected amount, the Bid
will be rejected and the Bid Security will be forfeited. The amount stated in the Bid shall be
assessed and relegated in accordance with the above procedure.

Selection of bidders: After Selection, a Letter of Award shall be issued, in duplicate, by the
Authority to the Selected Bidder. In the event the duplicate copy of the LOA duly signed by the
Selected Bidders is not received by the stipulated date, the Authority may appropriate the Bid
Security of such Bidder as Damages.

Period of Contract for User Fee Collection Rights: The Contract for User Fee Collection rights
will normally be for 1 (one) year. However, in certain stretches going for BOT/OMT/TOT/Four
Year Tolling Contractor Projects, the Authority reserves the right to reduce the period of
Contract without any compensation.

Milestone:
Annual Potential Collection = Rs 2.92 CRORE Period of Collection = 1 year
Termination:

1) The Authority shall be entitled to terminate this Contract once the decision is taken to transfer
the road section to BOT/OMT/TOT/Four Year Tolling Contractor Projects/ concessionaire
(reference clause 2 of the contract) at any time after giving notice to the Contractor as under in
writing and in that event, the Contractor shall not be entitled to any claim, or any compensation
whatsoever on account of such termination.
(2) The Authority shall be entitled to terminate this Contract at any time without assigning any
reason(s) after giving notice to the Contractor as under in writing and in that event, the
Contractor shall not be entitled to any claim, or any compensation whatsoever on account of such
termination.
By giving seven (7) days prior notice in writing
(3) Notwithstanding anything contained in clause (1) above, the Authority may terminate the
Contract forthwith for breach or non-observance of any of the terms and conditions of this
Contract or for any misconduct on the part of Contractor or his employee/staff/personnel or for
overcharging of User Fee from a user, or for harassment of any user.
(4) The Authority shall be entitled to terminate this Contract for any type of non- compliances
under provisions of this contract if not rectified within a given time frame.
(5) Pre-mature termination of the contract at the request of the Contractor:

● Within 30 days of taking over the fee plaza, if the Contactor feels that he has committed
an error in assessing the realizable user fee at the fee plaza, he may in writing request the
Authority for pre-mature termination of the contract. Such request of the Contractor is
irreversible by the Contractor under any circumstances.
● The Contractor, even after making such request, shall continue to collect user fee at the
fee plaza, remit the agreed remittances timely to the Authority and comply with all other
terms and conditions in accordance with this contract, till handing over of the fee plaza to
the new agency.
● The Authority shall appropriate 25% of the performance security as mutually agreed on
genuine pre-estimated compensation and damages payable to the Authority for interalia
time, cost, and effort of the Authority. The balance performance security shall be released
by the Authority within 30 days of handing over of the fee plaza to the new agency.
● Within 60 days of receipt of such request, the Authority may complete the bidding
process for selection of a new agency, select the new agency and hand over the fee plaza
to the new agency. For the avoidance of doubt, NHAI would finalize the new agency as
early as possible, irrespective of the quotes of the Contractor and the new agency. This
Agreement stands terminated automatically on the date of handing over of the fee plaza
to the new agency.
● The existing Contractor is also eligible to bid at the time of selection of new agency by
NHAI, but if he does not takeover or leaves in between or abandons the user fee
collection work a second time, he will be debarred from participating in further bidding
for user fee collection at the same Fee Plaza, either directly in his own name or as a
 consortium or as an associate or in the name of any firm owned by him, for a period of
two years.

Tariff:

Bidder with shall keep the Collected fees after paying the amount (in monthly installments)
promised while placing the bid.

Incompleteness:
In case of non-compliance of any of the obligations , the Authority shall levy a penalty @ Rs.1.0
lakh per default per month except for emergency like death or natural calamity for which the
penalty shall be @ Rs.10,000/-per default per month, without prejudice to any other rights of the
Authority under this Contract. However, in case of non-compliance of obligations specified , the
Authority shall levy a penalty @ Rs.10,00,000/- per instance or termination of Contract
Agreement or both, without prejudice to any other rights of the Authority under this Contract.
The date of default will be the date of reporting to the contractor by the Authority concerned or
his authorized representative. In addition to levy of penalty as above, more than three defaults in
a month under this clause may attract termination of this contract. Before levy of penalty under
this clause the contractor shall be given a reasonable opportunity to rectify the default. The
decision of the Authority concerned or his authorized representative to levy the penalty under
this clauseshall be final and binding. The penalty so levied shall be recovered from the
performance guarantee which shall be replenished by the contractor within 10 days from the date
of such recovery failing which the contract is liable to be terminated.