ee oredr ater usta rfarncer eee uteri, ast et) National Highways Authority of India {ary of Roa Tsp aH ales wt 6 Tree t0, aEH, aw er 110.075, NHAV/Policy Guidelines/PPP (OBFOT) No. 8.3.36/2020 dated 10" July, 2020 {Pecision taken by the Executive Gomunitte on file na 'NHAW/CND/2019/Cliceiar /COSURIS (CAN. 1783)] Sub: Guidelines for determination of Cost of Change of Scope (COS)/ Reduction Iteration (Change/omission in existing in Scope (RIS)/Withdrawal of works/A\ item) in Works in DBFOT Projects- Applicable Schedule of Rates, Design Charges and Maintenance Charges-Regarding National Highways Authority of India (NHAI) has adopted Model documents issued by Ministry of Road Transport & Highways (MoRTH) for procurements of Civil Contractors, and. Concessionaires. Based on its procurement and operator experience the implementation of these documents needs more clarity and lesser susceptibility to litigations/conflicts. 2) These guidelines are being issued in this reference for clarifications on applicable Schedule of Rates, Design Charges and Maintensrte Charges for atermination of Cost of Change of Scope (COS) Reduction in ‘Scope {RIS)/Withdrawal of works/ Alteration (Change/omission in existing ‘tem) in Works in DBFOT Projects. 3) In cases where any specific provisions on COS/RIS are prescribed in the Concession Agreement, the same shall prevail. 4) These Poticy Guidetines willbe implemented strictly from the date of issue of this Poliey Circular for unappraved COS/RIS. In.case of COS/RIS already decided, the approved cost of COS/RIS shall not be reopened on the basis of these guidelines. 5) No Change of Scope shall be executed unless the Authority has issued the Change of Scope Order. Instructions given during inspections/meetings shall not be treated as approval to go ahead with execution of COS until formal approval of Competent authority is obtained. Concerned Independent Engineer and Project Director shall be held responsible for any failure on this account. 6) Applicable Schedule of Rate: i) Schedule of Rates (SOR) for Change in scope shall be as per relevant clause 16.2.2 of the Concession Agreement, cost of Altered component (Change/omission in fi) For determination of the A specifications/dimensions of existing tem), SOR shall be ‘adopted as above. see of altered component of work shall be determined as difference (net) Eten the cost for Altered Work and existing Work as per concession agreement. , L Contd, -Pg 2 ng stuns west-nvatonen aaili) -ve COS/RIS: a) The Concession Agreement (CA) provides a clear cut timeline. for compliance of Conditions precedents, which also includes providing ROW for the Project. The land, which were not provided as per the terms of CA, if de-scoped, the ve COS for such de-scoped ROW stretch should be valued on the SOR applicable on the date of PCOD. (1" PCOD in case of multiple PCODs; the concession agreement does not provide for multiple PCODs and nultiple PCODs remains only a matter of convenience between the parties.) bb) tnease of ROW for the strctches provided with in the defined timeline of the CA, (-ve) COS should be valued on the basis of the SOR applicable on the date of issue of written ngtice for de-scoping. iv) ave COS: SOR for COS.executed:as per due procedures of concession agreement shall be as on the date‘of communication of the approval 7) Determination of Cost of COS works 7.1) DBFOT-Toll projects: In case of the DBFOT-Tolt projects the Investments 2° made by the concessionaires, which are recovered through collection of Toll. Ouring the project implementation, there may be scenarios when complete site could 70% be handed over and PCOD granted for completion of work on the handed over tand/ ROW, Depending upon the condition of road, tolling is allowed either for ful project length or for the fully compteted project length only: 1) tn cases tolling allowed for full tength on construction of main carriages’ss but work as per full scope for items’other than main carriageway is not Constructed, the collected toll is'to be compensated by concessionaire By way of investment through payments to Authority for-ve COS/RIS iy In cases toting i allowed for fully completed part length of project Mshw3y- thca'the -ve €OS/RIS cost, for the remaining length not completed and to be Ge scoped, shall be recovered from the concessionaire and loss of expected ea revenue for that un-tolled length be paid by Authority to concessionaire. 7.2) DBFOT-Annuity projects: In case of the DBFOT-Annuity projects the seestments are made by the concessionaires, which are recovered through receipts vrgamuities, During the project implementation. there may Be scenes when Complete site could not be handed over and PCOD granted for completion of work ‘on the handed over land/ROW. Depending upon the condition of road Annuity payment is allowed either in full or proportionate to the tully completed project, length only: i) In cases full Annuity allowed but work as pes full scope is not constructed, the annuity receipts are to be compensated by concessionaire by way of investment through payments to Authority for ve COS/RIS. ii) in cases proportionate Annuity is allowed for fully completed park length of Paes erty then the -ve COS/RIS cost, forthe works nat dane and to He Ge-scoped. shal be recovered from the concessionaire and loss of Annuities shall be paid by Authority to concessionaire, Contd. -Pg 3Js an the recoverable amount of ve COS: 7.3) Interest shall be chargeable from the date of ve COS 1) it approval for ve COS Is given before PCOD : approval till recovery date, 1) if approval tor ve COS ts given after PCOD: Jolling/Annuity payment for the section Ull recovery date, {ii Rate of Interest on the recovery amount against ve COS shall be same as p concessionaire’s Loan Agreement 7.4) Recovery for -ve COS/RIS shall be made agreement. from the date of alloying, 4h specified in concession 7.5) Delayed Payment : For delayed payment of #ve COS amounts, Interest shall be paid as per concession agreement, In case Ml Is not defined In Concession agreement, then interest may be charged @ SBI 1 year MCLR +2%, 7.6) Escalation is allowed where completion period Is more than 18 month. Under CoS. it is not expected to take up any item, which require more than 18 months. As such No price escalation shall be provisioned during construction period of COS/Altered component of Work. 7.7) Design Charges for COS Works: No design charges are normally allowed. However, in cases involving complex structures and work proposed fs not similar to the work in the original scope, the design charges may be permitted with an upper cap @1% of cost of such new works as decided by Independent Engineer. 7.8) Maintenance Charges for COS Works after construction and during Operation & Maintenance Perlod: Maintenance Charges for +ve COS works shall not be paid by Authority to Concessionaire, or shall be recovered by Authority from concessonalre for - Se COS/RIS unless the change of scope affects the project in terms of Increase/decrease in length of project highway and/or service roads. ii) In case the Change of scope proposal for Flexible pavement Is arrived due to increase/decrease in length of project highway and/or Slip/Service roads, then Maintenance Charge (against ordinary repairs and periodic renewals) @ 1% per annum of the cost of +ve COS/-ve COS/RIS shall be paid (In case of +ve COS) or recovered (in case of -ve COS/RIS) iit In case, the change of scope proposal Is for a Major Bridge/lyover/Any major structure (excluding VUP/PUP/LVUP), Maintenance Charges @ 0.5% of bridge proper cost per annum to be paid (in case of COS) or recovered (in case of ve COS/RIS) on yearly basis at the end of each accounting year. } Contd. -Pg 4, “4 iv) In case of Rigid Pavements, for change of scope proposals, till 10 years from the date of Project completion no maintenance charges shall be paid. After 10 years, 5% of COS cost shal! be paid (in case of +ve COS) or recovered (in case of -ve COS/RIS) against panel replacement and major repairs if any. wn. (Amirendra Kumar) CGM (Coord) All Officers of HQ/RO/PIU/CMU Copy to: All Members/CVO PS to Chairman