PROPOSAL FOR ASSESSMENT OF TECHNICAL ASPECTS,

PROJECT COST, CONTRACT AGREEMENT & LENDERS

INDEPENDENT ENGINEER (LIE) ON EXPANSION OF
EDUCATIONAL INSTITUTIONS OF
“SILVER OAK GROUP”

PROJECT LOCATION - S.G. Highway, Ahmedabad

BANK - M/s.CENTRAL BANK OF INDIA, AHMEDABAD

January 2020

PREPARED FOR – M/s. Silver Oaks Group, Ahmedabad

ITCOT Consultancy and Services Ltd

(Formerly Industrial and Technical Consultancy Organization of Tamilnadu Limited)
Joint Venture of IFCI, SIPCOT, TIIC, SIDCO & BANKS
Ahmedabad Office: Vejalpur, Ahmedabad-380 051
Contact Person: Dr. R D Vasudevan, Chief Consultant Mobile: 97890 22906
Registerd office: 50-A, Greams Road, Chennai – 600 006
1.0 INTRODUCTION www.itcot.com
 M/s. Silver Oak Group is expanding their educational institutions at 352/353 A, Near Bharik
Publications, Opp. Bhagwat Vidyapith, S.G. Highway, Ahmedabad – 382 481. The project is
coming up in the existing campus of an area of around 7 acres with G+7 storied building with built
up area of about 2.60 Lakh Sq.ft.

As informed by the Group, the commercial operations of the proposed expansion project is
expected during July 2020 (for next academic session). The Group has already constructed 3
floors and waiting for funds for further construction.

M/s. Central Bank of India had requested ITCOT to submit a proposal for Assessment of

Technical Aspects, Project cost, Contract agreements & Lenders Independent Engineer (LIE )
for establishing expansion project at S.G. Highway, Ahmedabad.

2.0 SCOPE OF THIS PROPOSAL

The broad objective of the study is listed below:
The activities of the study shall be spread across two phases as described below,
 The LIE shall submit a report on the Project (including infrastructure created, vetting the
project cost, evaluating the contract agreements for construction, status of statutory
approvals, present status of the project vs implementation schedule in terms of cost &
time, etc.) on “ AS IS WHERE IS BASIS”

 After Zero date of commissioning the LIE study, ITCOT shall monitor the Project
implementation on behalf of the Lenders and evaluate the investment made at every
stage as submitted by the Group/ Contractors;

Phase I shall commence from the date of appointment of the LIE and shall continue till
submission of required report.

Phase II shall commence from present status of construction and shall continue till completion of
the project.

Phase I – On Commencement of Service till achievement of Financial Close

a) Assess the status of various clearances, statutory approvals and licenses to be obtained by the
Group for commissioning of the project.
b) Vetting of the estimated project cost with BOQ and other related documents.
c) Assess fund utilization to the expenditure actually incurred vis-à-vis the amount certified by
statutory auditors.
d) Source & Utilisation of funds towards the project implementation.
e) Report on the physical progress, funds invested vis-à-vis Implementation Schedule
 f) Assess the status of contract entered by the Group for implementation of the project
g) Any other specific inputs required by the banks.
h) Specific Problems or issues faced and resaons thereof

Phase II – From financial Closure till completion of construction

a) The LIE shall review the projected construction programme, expenditure schedule and adequacy
of the arrangements made at the site to achieve the projected construction schedule on a
quarterly basis.
b) The LIE shall certify the capital cost incurred. The LIE shall carryout spot verification of the
quality of the construction work vis-à-vis approved specifications, if required.
c) The LIE shall carryout assessment of variation in orders;
d) The LIE shall review the status of necessary approvals, permits, licenses, notifications, Project
completion certificates, etc. as may be required by the Group for completion and handing over.
e) Identification and certification of cost overruns, if any. Comments on time over runs, if any.
In addition to the aforesaid, the scope of services of the LIE would include advising the Lender on
all technical matters in order to protect the Lender’s interest under the financing documents,
Project development agreement and all other Project documents.

3.0 Assessment of Technical Aspects of the Project, Project cost, EPC contract
ITCOT will submit the assessment report on the technical aspects of the project and evaluate the
project cost of the Education Project (under expansion). The Report would typically consist:
 Technical aspects of the Project –Description of salient features of the Education Project.
 Description of Infrastructure of the project ( Land, Civil works & Utilties etc)
 Estimate the cost of the project by evaluating the contracts/documents submitted.
 Statutory approvals which will establish the Clearances / Approvals for the project.
 Summary of Bank sanction tickets, with regard to
 Pre disbursement conditions
 Draw Down Schedule.
 Project COD
 Security
 Implementation Schedule

Assessment of Contract Agreement

General List of tasks included under this review study is as follows:
Project Execution Strategy.
Review of contracts entered
Design review and review of key documents prepared by contractors. Sample list is
shown below
 Project Specifications

Structure
Plastering
Painting/Polishing
Flooring/Cladding
Toilets
Doors & Windows
Electrical
Plumbing
Firefighting
Lifts
Back-up Generator & Rain water harvesting
Telephone with Intercom Facility
Amenties, if any

 Advising the Group on possible problems and delays that may arise in future, to ensure
timely action to prevent the problem;
 Reviewing quality control procedures and reports;
 Reviewing change orders to the Contract and informing client of the amount of change
order(s) and its status.
Conclusions and Recommendations

4.0 PREREQUISITES
The following information and documents have to be made available by the Lenders and project
promoters wherever appropriate.

Project Appraisal report from Bank

Term loan sanction ticket(s) together with other details
Promoter of project shall submit all legal documents pertaining to the Title deed and clear
from encumbrances with legal opinion
Planning permission by Planning Authority
Plot plan indicating the project approval by Planning Authority
Approved Building plan from Planning Authority and status of the same if pending with
authorities.
Promoter of project shall submit all statutory approval obtained so far including the details
of pending approvals if any.
Status of environment clearances / EIA study
Water resources-availability / augmentation plan / Rainwater harvesting
Waste water treatment and disposal
Buildings plan/Architectural/Structural / plumbing/ Electrical drawings
 Geo Technical report / Topographical plan
Details of site grading / site development scheme etc.,
Fire Suppression systems as per National Building code / insurance cover documents
Power requirement/ Emergency power-DG-requirement
Project Schedule with resources planned, mile stones activities identified, activities in
CPM
Green building norms compliance- Solar heat utilization
Quantitative Building cost estimate- detailed one
Construction progress made so far with milestone achievement, detailed schedules of
main items status as on date.
If there is PMC engaged by promoter, details of the same.
Work order issued to sub vendors, contractors-Status of the same.
Details of cost incurred so far and balance required vis-a-vis estimate made by PMC,
Cash flow requirement, Project funding methodology
Details of equipments purchased with the list of items, supported by documents

This is only an indicative and detailed one shall be made available to Lenders / project promoters
upon receipt of the work order / letter of appointment.

5.0 KEY PERSONNEL

Dr. R.D. Vasudevan, Chief Consultant, Mr. M G Kesavan, Vice President and S Thyagaraj, Dy.
Vice President will be the key personnel handling this project.
6.0 PROFESSIONAL FEE
6.1 FEE
Our professional fee to conduct the Study will be as follows.
Sl.No Study Professional Fees ( in Rs)

Preparation of Assessment Report covering

1. Technical Aspects of the Project, Project Cost & 2,00,000/- + applicable tax
Contract Agreements
2. Visit Report and Evaluation of the investment made 90,000/- per visit + applicable tax
in the Project

All professional fees are payable to ‘ITCOT Consultancy and Services Limited’ by Cheque /DD
and is payable at Chennai.

6.2 TERMS OF PAYMENT

75% advance along with your work order and balance on submission of report.

6.3 PROPOSAL VALIDITY

This proposal is valid for 30 days from the date of proposal sent to you.
6.4 DELIVERABLES
Sl.No Study Time Frame

Preparation of Assessment Report of Technical

1. 3-4 weeks from submission of
Aspects of the Project, Project cost & EPC
documents to LIE
contract
2 weeks from date of visit & documents
2. Monthly Visit Report and Evaluation of the
submitted towards the investment
investment made in the Project
made in the Project

7.0 ITCOT CONSULTANCY AND SERVICES LIMITED

7.1 ABOUT ITCOT
7.1.1 Industrial and Technical Consultancy Organisation of Tamilnadu Limited (ITCOT), was
incorporated as a company under the Companies Act, 1956, on 17 th July 1979 as a joint venture
of leading financial institutions, State Development Corporations, and Commercial Banks. The
name of the company was changed to ITCOT Consultancy and Services Limited with effect from
4th October 2004 to offer services as an adjunct to consultancy. The company still continues to be
known by its popular name, ITCOT.

7.1.2 The Registered Office of the company is located at 50-A, Greams Road, Chennai, 600 006.
ITCOT has branch offices in Delhi, Mumbai, Kolkata, Ahmedabad, Hyderabad and Bangalore.

7.2 PROMOTERS OF ITCOT

7.3 BOUQUET OF SERVICES
7.3.1 We offer a wide range of consultancy services such as techno-economic feasibility/ viability
studies, Strategic Plans, detailed project reports, market survey and research, project
management, project appraisals, project evaluation restructuring, skill up gradation programmes.
We organize seminars, training programs and industry meets on current topics of interest to
disseminate knowledge to enterprises and entrepreneurs. Our services are offered to corporate,
small and medium enterprises, individual entrepreneurs, public sector undertakings, banks,
financial institutions, cooperatives and governments.
7.3.2 ITCOT has carried out over 4000 assignments on behalf of institutions, entrepreneurs; and large,
medium, and small enterprises in and outside Tamil Nadu. The assignments undertaken by us
include market surveys, feasibility/ viability studies, detailed project reports, asset valuation,
technology sourcing, project appraisals, opinion reports, Lenders Engineers, energy audits;
implementation of solar, wind mill and power projects, entrepreneur training programmes, and so
on.
7.3.3 The organization has a team of competent professionals from various disciplines with experience
in a wide range of functional areas and industries. ITCOT maintains a panel of experts in specific
fields of activity whose services are sought as and when required.
7.3.4 With an in-house team of more than 50 consultants, we have the expertise to handle all major
sectors Viz. Aviation, Agro, Manufacturing, Infrastructure, Services, Education, Healthcare,
Hospitality, Power and Renewable energy etc. With offices at Chennai, Mumbai & New Delhi and
with highly committed team of consultants, we will provide competent and timely service.

7.4 APPROVALS / EMPANELMENT

We are also in the panel of major banks for conducting TEV study, Lenders Engineers, Valuation
and NPA resolution etc.
Several Banks / GOI Ministries
Bureau of Energy Efficiency
Technology Development Board-Asset Manager
Power Finance Corporation -Business Development Associates
ARCIL (constituted Attorney)/Facilitator
Modular employment Skill Programme, DGET, GOI
“Üdyami Mitra” under Rajiv Gandhi Udyami Mitra Yogana
Receiver / Valuers for High Courts / DRT / Banks / FI
Lender Engineers for Bank /FI
UNDP Sectoral programmes
Kfw – Carbon Credit Programme