M/s Almondz Global Infra-Consultant Limited

(JV)
M/s Manglam Associates C/o Mr. Inaghi H Achumi, (Near Gogoi Service
Centre), R/o. House no. 127, south Point Colony East,
Hospital Junction, Nagaland-798620

Letter No. AGICL-MA/CZ/Gen/2022-23/1041 Date: 31.08.2022

To,
The General Manager (Projects)
PMU- Pfutsero, NHIDCL
HouseNo.167, Menyitseda Ward
Near Pfutsero Glory Peak
Pfutsero Town, Peak District
Nagaland-797107
Email: pmu.pfutsero@nhidcl.com

Subject: Consultancy Services for Authority Engineer for Supervision of “Two-lane with hard
shoulders of Chakabama-Zunheboto Road from: Design Km 95.000 to Km 115.534 (Existing Km
100.345 to Km 122.250) in state of Nagaland under SARDP-NE on EPC mode: Reg.
“Recommendation to declare the EPC Contractor as Non-Performer due to failure in
achievement of target.”
Ref.: a. AGICL-MA/CZ/Con/2022-23/842, dated 22.08.2022 : Notice to declare as Non-performer in case
of failure to improve work-progress
b. Letters released for improving project work conditions; (as tabled below)
Letter No. - AGICL-MA/CZ/Con/2022-23/(Column no. 3)
Date of
S.N.
letter
Letter No. & Subject summary of the letter (Reg.-)
1 20-08-2022 840 Maintenance & Safety report no. 04--August
2 17-08-2022 834 Reminder-Rectification of damaged DBM surface
3 17-08-2022 832 EOT submission & Levy penalty
4 17-08-2022 831 Work stopped
5 08-08-2022 822 MoM of the meeting held on 05-08-2022 at AE site office, Chaired by TL
6 01-08-2022 811 Reminder: Maintaining sufficient Buffer stock of essential materials on site.
7 29-07-2022 749 Reminder-EOT submission
8 28-07-2022 797 Reminder-Plantation
9 28-07-2022 796 Reminder-3: Non-submission of Quarterly Video Recordings of site
10 21-07-2022 785 MoM of the meeting held on 14-07-2022 at AE site office, Chaired by MD, Mangalam
11 20-07-2022 781 Slope protection in town area
Reminder: Reg. Keeping adequate stock of fuel, other construction materials and
12 19-07-2022 776
lagging in progress of work
13 12-07-2022 761 MoM of the meeting held on 08-08-2022 at AE site office, Chaired by TL
14 11-07-2022 755 Maintenance & Safety report no. 03--July
15 06-07-2022 737 Slow progress of work
16 02-07-2022 719 Reminder: To start hydro seeding & mulching work
17 01-07-2022 715 Rectification required of defective DBM at various locations
18 29-06-2022 707 Reminder-2: Non-submission of Quarterly Video Recordings of site
19 27-06-2022 691 For completing the rectification required for damaged Structure in landslide locations
Reminder: Reg. Keeping adequate stock of fuel, other construction materials and
20 25-06-2022 686
lagging in progress of work
21 23-06-2022 684 Reg. – Maintenance of road for safety purpose

Regd. Office: F-33/3, Okhla industrial Area. Phase-II, New Delhi-110020

Tel: 011-43500700. Fax: 011-43500734/5, E-mail: aecznagaland@gmail.com
22 23-06-2022 683 Improper shuttering material being used at site
23 22-06-2022 680 Rectification required of the damaged Breast wall at Ch. 108+440
24 18-06-2022 668 Notice of slow progress of work
25 16-06-2022 663 Reg. – Instruction for starting Hydro-seeding, mulching with Jute net
26 15-06-2022 659 Advance action plan for flood/landslide etc. on road & emergency response
27 14-06-2022 655 Reg. – Starting plantation in your PKG-5
28 14-06-2022 653 Reminder-1: Non-submission of Quarterly Video Recordings of site
29 13-06-2022 646 Sought explanation regarding idle of Plant
30 10-06-2022 642 Not using weep holes
31 09-06-2022 639 Poor workmanship in construction of RCC / PCC drains
32 09-06-2022 637 EOT for shifting of project milestones
33 08-06-2022 635 Reg. – Maintaining sufficient material and manpower on site
34 04-06-2022 630 To start and finish slope protection work
35 03-06-2022 627 Work stopped
36 01-06-2022 620 DBM layer/surface rectification required in Town Area
37 31-05-2022 618 Slow progress
38 31-05-2022 617 Suggestion for pre-monsoon maintenance of road during construction period of project
39 23-05-2022 608 Producing & submission of monsoon action plan as per Clause 15.1.2
40 18-05-2022 600 (5600): Maintenance & safety of road
41 13-05-2022 593 To start seeding & Mulching with Jute net and Hydro-seeding works
42 26-04-2022 568 Non-submission of Quarterly Video Recordings of site
43 23-04-2022 562 Reminder-1: Rectification required of damaged DBM in PKG-5
44 22-04-2022 556 Slow progress of work
45 19-04-2022 539 Reminder-Poor workmanship during Str. & Highway work
46 18-04-2022 535 Not following standard procedure & Tools while execution of construction work
47 05-04-2022 507 Explain reason why work is stopped in PKG-5
48 04-04-2022 505 Producing Monsoon Action Plan as Cl. 15.1.2
49 31-03-2022 498 Reminder-To follow standard procedure & Tools while execution of construction work
50 31-03-2022 494 Rectification required of Breast wall @ Ch. 113+430
51 28-03-2022 488 Start all type of slope protection work in Assam Rifles area
52 28-03-2022 487 Pending Drawing & Design for various works as per S.O.W. for PKG-5
53 25-03-2022 481 Drain cover to be provided on priority basis
54 23-03-2022 473 Reminder- For substandard quality of work
55 22-03-2022 470 Appointment of PM/DPM
56 17-03-2022 461 Follow standard procedure & tools while execution of project work
57 16-03-2022 458 Maintaining sufficient Buffer stock of essential materials on site.
58 05-03-2022 430 Rectification of deformities found in Parapet wall
59 04-03-2022 425 Execute works strictly as per instructions given in MoM dated 23.02.2022
60 04-03-2022 422 Poor work-man ship found during site visit
61 02-03-2022 418 Reminder-1: Rectification of civil work required in all packages.
62 24-02-2022 404 Safety arrangement to Culvert @ Ch. 95+740
63 23-02-2022 403 Slope protection work in Assam Rifles area
64 22-02-2022 400 Improper shuttering materials are being used at site
65 22-02-2022 397 Reminder-1-Slow progress of work
66 22-02-2022 396 Maintenance of existing road is required in all packages.
 67 22-02-2022 395 Safety measures to be deployed in all packages
68 16-02-2022 388 Speedup various types of work in Zunheboto town area
69 11-02-2022 378 Deployment of adequate amount of manpower - pkg-5
70 11-02-2022 377 Slow progress of work
Rectification of civil construction work and slope protection work required in all
71 11-02-2022 376
packages.

Dear Sir,
With reference to the above cited subject and the letter referenced above, we would like to mention
that, LOA for the work of Construction of “Two-lane with hard Shoulders of Chakabama-Zunheboto
Road from: Design Km 95.000 to Km 115.534 (Existing Km 100.345 to Km 122.250) in state of
Nagaland under SARDP-NE Phase A (Package-V) on EPC mode” (herein after referred as Project) was
issued to M/s. Madhucon Projects Limited (herein referred as ‘Contractor’) vide letter no.
NHIDCL/Nagaland/Civil works/CZ (95-115.534)/2017/233 dated 28.03.2018 by National Highway and
Infrastructure Development Corporation Limited (herein referred as ‘NHIDCL’ or ‘Authority’)
amounting to Rupees 188.1 Crore (Rupees One Hundred Eighty-Eight Crore and Ten Lakh only
including GST), with construction period of 1095 days i.e. 36 Months commencing from appointment
date i.e. 20.12.2018 on terms, condition and covenants contained in Contract Agreement.

2. Whereas, 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, in conformity with the Specifications and
Standards set forth in Schedule-D, within 1095 days from the Appointed date (i.e. 20.12.2018) shall
be the scheduled completion date, but after the Approval of Extension of Time, the Completion date
of the project has been shifted to 15.08.2022.

3. Whereas, now in fulfilment of its obligation the Authority had handed over 100% hindrance free
length of the required stretch from design Km 95.000 to Km 115.534 of the project highway to the
Contractor.

4. Whereas, as per the essential Terms and Conditions of the Contractor Agreement, the Contractor was
obliged to undertake the Survey, Investigation, Design, Engineering, Procurement, Construction and
Maintenance of the Project Highway and observe, fulfil and comply with and perform its obligation
and follow the Contract Agreement and the obligation cast thereon with full adherence, diligence and
sincerity.

5. Whereas, after approval of Extension of time, the Project Milestones w.r.t. actual achievements of
Milestones & targeted Financial Progress (%) are as follows:

Description
Scheduled Date Delay
Project (Days from Financial Physical Financial Revised
(AS per (No of Current Status
Milestone appointed Date - Progress Progress Progress Date
Schedule –I) Months)
20.12.2018)
Achieved on
Milestone-I 180 10% 18.06.2019 14.02% 11.45% NA 5
18.01.2020
Milestone-II 550 40% 22.06.2020 41.26% 40.76% 27.11.2020 - 27.11.2020
Milestone-III 915 80% 22.06.2021 76.51% 72.26% 16.02.2022 6+ Not completed
Scheduled
1095 100% 20.12.2021 15.08.2022 Not Achieved
Completion

6. However, Milestone III (80%) and Schedule of Completion (100%) could not be achieved within the
stipulated date i.e. 16.02.2022 and 15.08.2022 respectively due to various reasons of defaults and
breaches on the part of the Contractor in spite of RoW handed over to Contractor.
7. Whereas, the EPC Contractor has failed to achieve required progress for the reasons solely
attributable to EPC Contractor majority due to insufficient funding to project site resulting in lack of
construction material, lack of meticulous planning and failed to mobilize key construction
equipment/manpower etc. with proper timing.

8. Whereas, as per Clause 11.10 of the Contractor Agreement it is the obligation of Contractor to ensure
that the Construction materials and workmanship are in accordance with the requirement specified in
the Contract Agreement, specifications, standard and Good Industry Practice.

9. We, the Authority’s Engineer have already given so many reminders delivered previously regarding
keep continue the construction activities which is frequently hampered without assigning any proper
explanation or prior information. Several reminding instructions with details were delivered as
mentioned in the reference above for the progress of work, such as increasing resources, manpower,
machinery, materials in stock etc.

10. While, the EPC contractor has not complied with the instructions given in several meetings and
correspondence held at various levels, to present extension of time (EOT-2) with the balance work
program as well as citing justified reasons for shifting the milestones, but they never took this
important matter in serious manner.

11. A matter was also discussed in the meeting held on 14-07-2022 at Authority’s Engineer site office
to always avoid the shortage of materials and fuel in monsoon season. But, still in this monsoon
season, frequent water loggings are there in very dangerous tranches remained un-rectified. Safety
work arrangement work in culvert position Ch. 95+740 and so many other places required but no
fruitful outcome can be produced.

12. The Contractor has stopped the work in Town Area while they were instructed so many times to
focus on this specified places, regarding this the Administration, local two lane road committee and
Authority have organized meetings many times to resolve the issues.

13. The Contractor has repeatedly failed to achieve the target after all the promises/assurance they were
shown during the progress meetings held in time to time; whether it was called by HQ NHIDCL,
Local Administration (DC/ADC Zunheboto) or by Team Leader & MD (Authority’s Engineers).

14. The structure work is also un-finished/partially done at so many places like as in Town Area drain,
pending clearance of the blockage of drains, retaining walls to be completed at various places, means
a complete failure in timely completion.

15. The maintenance work in Highway part, they are failure in doing proper duties because of pot
holes, raveling effects are still there and creating scope of miss-happening with road users. Also, the
rectification work in partly DBM surface is also not done properly; cracks are developed at so many
places.

16. Whereas, we have issued several notices/letters/instructions regarding below mentioned matters
mainly and the vide letters as cited at ref. Sl. No. :

On maintenance of Notices on safety of Poor work man ship & Work stopped & slow
existing road work & project substandard quality of work progress of work

1, 2, 14, 17, 19, 21, 11, 34, 40, 51, 53, 22, 30, 31, 45, 46, 49, 54, 4, 15, 24, 29, 35, 37,
23, 36, 43, 50, 61, 66, 58, 62, 63 & 67 56, 60 & 64 44, 47, 65, 68 & 70
67 & 71
 Maintaining Buffer stock of key Road preparedness & Non submission of EOT & Levy
materials and deployment of advance planning for the quarterly video penalty
manpower & key personal project in view of monsoon recording of site

6, 12, 20, 33, 55, 57 & 69 8, 16, 25, 26, 27, 38, 39, 41 9, 18, 28 & 42 3, 7 & 32
& 48
Minutes of meetings held for progress review or Others / Documentation regarding
issuing essential instructions

5, 10, 13 & 59 52

17. Worth mentioning, that since last two weeks no RFIs could be raised by the EPC Contractor and
work in construction activities is nil, which affects serious issues in view of Administration and
Authority’s Engineer also depicting as careless. However, keeping in view the progress of the work,
several meetings were held with the contractor and various points were discussed to improve the pace
of work progress.

18. Also, there is no pending payment on the part of Authority side and this failure is solely
attributable to the EPC Contractor only majorly due to insufficient funding to project site resulting in
lack of construction materials, lack of meticulous planning, failing to mobilize key construction
equipment/manpower and substandard quality of work etc..

19. Despite of the several efforts we have put to get back on track the progress of project work, but the
contractor has shown insufficient intention to execute the project as per the Contract Agreement and
they failed to achieve the Project – Completion by the Scheduled date of completion.

20. Hence, we want to recommend the EPC Contractor to declare as ‘Non-Performer’ due to failure of
‘Achieving the targets’, without prejudice to any other rights or contention or available to the
Authority under the Contract Agreement and applicable law.

Thanking you and assuring our best services all time.

With regards

Yours Sincerely,

Sanjay Kumar
(Team Leader)
Almondz Global Infra-Consultant Ltd.
(JV) Manglam Associates.
Chakabama-Zunheboto Road Project

Encl.: As stated above.

Copy to:
1. S.O, NHIDCL, Zunheboto
2. The MD, Almondz-Manglam Associates (JV)
3. Project Manager Madhucon Projects limited
4. Office copy.