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EXECUTION RISK REVIEW

Project Name & Location: Six Laning of Km.192 - Km.198


between Vadodara Surat section of NH-8 including construction of
fourlane Extra Dosed Bridge across river Narmada in the State of
Gujarat state on EPC mode
1

Review Background
Project Reviews

Date

Project LOI Date

07-02-2014

Project Award Date/Appointed Date

03-03-2014

1st Execution Review

14-02-2015

2nd Execution Review

30-05-2016

INDEX PLAN

Towards Ahmedabad

DELHI

NH-8
Proposed Bridge Location
(100m away from existing
bridge)

AHMEDABAD
VADODARA
BHARUCH
SURAT

8LANE
FLYOVER

EXISTING BRIDGES

Toll Plaza

SERVICE ROAD/
WIDENING

8LANE
FLYOVER

TO
VADODARA
EXTRADOSE
BRIDGE

PROJECT
OFFICE
NARMADA
RIVER

8LANE
FLYOVER

TO
SURAT

EXTRADOSED
BRIDGE

HIGHWAY

END OF CONTRACT
CH:198+745

START OF
CONTRACT
CH:192+000

MUMBA

Piling work in water front

Pile Work in Land Front

Pile Cap Work


6

Pylon Work

Segment Casting and PCY


8

Road Work

Quarry & Crusher

10

Diaphragm

11

Flyover

12

Segment Erection

13

Water-front Locations

14

Cost Saving Practices at Site


Reuse of bentonite for piling works
Usage of Flyash in embankment work for
flyovers as per latest revision of MoRTH.

15

Project Profile
Client

National Highway Authority of India, NHAI

Bid by ( L&T / S&A)

Larsen & Toubro Limited, HCIC

Consortium Partner, if any


(% break up of SOW)

Type of Contract

EPC - Lumpsum

Brief Scope of Work

Six Laning of Km.192 - Km.198 between Vadodara Surat section of NH-8;


construction of four lane Extra Dosed Bridge across river Narmada; Two Flyover;
Two Box Culvert, 3 Pipe Culvert & Toll Plaza in the above mentioned Chainage

Original Contract Value

379 Cr

Revised Contract Value

381.64 (Escalation approved is Rs.2.64ZCr)

FEED/PMC

Aarvee Associates in JV with NICE Pvt. Ltd

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Project Profile
Contractual Project Schedule
In months

30

Contractual Zero/ End date

03-03-2014/29-08-2016

Likely completion date

30-11-2016

LD - Completion delay

0.05% of CP of each day ie 18.95 lacs to a limit of 10% of CP

LD - Performance

LD sharing with Consortium


Partner if any

Bank Guarantee

7.5% of 379 Cr as PBG & 110% of 10% Mobilization Advance

Any Other

Bonus of 0.03% of CP per day to a limit of 3% of CP on Early


completion of Project
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Staff Strength
126 Nos

Organisation Chart

18

Detailed Scope of Works


Project Scope Chainage:
192.000 Km to 198.000 Km in NH-8 between Surat & Vadodara
Section in Bharuch, Gujarat

Main Item of Works:


Six Laning of existing four lane in above chainage, including
culverts & approaches to main bridge
Construction of Cable Stayed Extradosed Bridge Structure of length
1.344 Km
Flyover of 2 Nos. ( Zadeshwar Junction & Zagadia Junction)
Other Works: Service Roads, Toll Plaza, Road Side Drains, Road
Signs, Marking, Km stones, Safety devices, Guide Bunds

19

Awards & Achievements


10 Million Safe Work man Hour Achieved
Quality trophy for achieving excellence in
quality at site.

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Important changes while Execution


Quantity / Scope of Pile Initially considered during
bid stage was 132 Nos. which was reduced to 120
Nos. in Construction Stage
Quantity of Segment considered during Bid stage
was 440 Nos. which was reduced to 342 Nos. in
Construction Stage
Depth of Pile Cap initially considered was varying;
but during execution stage pile cap was considered
in same level
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Project Progress
PHYSICAL
PROGRESS %
as on 14.05.16

COST %
as on 30.04.16

DESCRIPTION

Construction

SCH

ACT

SCH

ACT

86%

71%

78%

78%

Note: The difference between cost and physical progress is due to


upfront payments to Stay cable works and Road works

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Project Milestones
03-Mar-14

07-Apr-15

30-Aug-14
180

400

13-Dec-15
650

Zero Date:
Notice of Award

29-Aug-16

29-Aug-21

910

Commissioning
th day:
180th
10% of CP
th day:
400th
35% of CP
th day:
650th
70% of CP
th day:
910th
100% of CP

Defect
Defect Liability
Liability Period
Period

5 Years

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Scope of Work - Delays & Catch up plan


Activity

Delay

Catch up Plan

Engineering

6 Months

The Initial Buffer in Construction Program

Precast Segment Erection

3 Months

Extra Erection Tackle was deployed to expedite


the erection work.

Fabrication

3 Months

The Initial Buffer in Construction Program


compensate the completion of Project in Time

Construction (Land
unavailability, delay in
shifting of electrical utilities
and tree cutting etc.)

6 Months

Extension of Time application has been


submitted to the client on 18-03-2016 vide letter
L&T-HCIC-Narmada-16-01-85.

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compensate the completion of Project in Time

Cost Variance - Due to change in unit cost


Exec.
Sl.No

Major Work Items

UOM

Total Revised Scope

Qty %
till 30.04.16

Cost Var. (ACE


Rate
Act
Rate) *
Exec. Qty
in INR Lacs
(A)

Bal.
Qty %

Cost Var. (ACE Rate


Cost Var. for
Exp Rate) *
Revised Scope
Bal.
In INR Lacs
Qty
in INR
(A + B)
Lacs
(B)

GEOTECHNICAL INVESTIGATIONS & SURVEY


WORKS

Nos

38

100%

1.54

0%

REINFORCEMENT

MT

9016

86%

465.22

14%

75.73

540.95

STRUCTURAL WORKS

MT

3391

2%

GUIDE BUND WORKS

675

98%
0%

100%

CABLE STAY

MT

500

63%

37%

ROAD WORKS

Cum

776076

50%

(160)

50%

(160)

(320)

25

Cost Variance -Summary (Price & Qty)


Sl.
No

1
2
3
4
5
6

Major Work Items

GEOTECHNICAL
INVESTIGATIONS & SURVEY
WORKS
REINFORCEMENT
STRUCTURAL WORKS
GUIDE BUND WORKS
CABLE STAY
ROAD WORKS

Total

Total Cost
(ACE)
(A)

Total Cost
(Revised)
(B)

Total Cost
Variance
( A B )

Price
Variance

Qty Variance

Rs in Lacs

Rs in Lacs

Rs in Lacs

Rs in Lacs

Rs in Lacs

22.91

24.45

1.54

3758.4

3257.28

501.12

0.06

664

1672.94

103.61

5139

7598

7918

(320)

18294.86

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Material Price Variance & Escalation Payable For Major


Items
Planned
Total Qty

Revised
Total Qty
(A)

ACE rate
per unit
(B)
INR Lacs

Material

Rev. rate
per unit
(C)
INR Lacs

Rate Var.
per unit
(D)
(B C)

Mat Price
Variance
(D * A)
In Lacs

Escalation
Payable
by Client
In Lacs

Steel (MT)

8,352

9016

0.45

0.39

0.06

540.96

(88.35)

Cement (MT)

35,600

35,600

0.05

0.05

159.93

Diesel (KL)

1,329

1,329

0.63

0.52

0.11

146.19

(162.10)

HT Strands-MT

1,210

1,210

0.58

0.61

(0.03)

(36.3)

650.85

410.38

Others

Total

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Key Manpower status


Key Positions

Requirement

Available

Gap

Project Manager

Project Controls Manager

Planning Engineer

Cost Controller

Quantity Controller

Document Controller

Contracts Manager

Engineering Manager

Procurement Manager

Construction Manager

Safety Manager

QA&I Manager

P&M Manager

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Remarks

Labour Requirement
Labour Requirement

1600

1400

1200

1000

No. of Labour
Planned (as per
baseline schedule)

800
Labour strength

600

No. of Labour
Execution stage

400

No. of Labour
Forecasted

200

0
0

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Months

29

Safety Standards / Measures


Safety Standards required to be
maintained
ISO 14001:2004
EHS Policy of Heavy Civil Infrastructure

Safety concerns, if any


HT Line Near Bridge Construction location, which was
avoided by aligning the bridge 60m away from HT line

Safety record
10 Million Safe Man hour has been achieved
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Client obligations and status


Sl
No.

Client Obligation

Land availability

As per Contract

100 %

31

Current status

Mitigation measures,
if applicable

98%

Activities are Planned on the


available Land until the
remaining land are received

Billing Status

Unit INR Cr

Retention
Amount

Outstanding
excluding
retention

Outstanding
(No. of days)

Particulars

Contract
value

Target
billing
(Base
Schedule)

Construction

379.00

325.94

247.04

243.85*

14.62

3.28

11

Variations

2.64

Total

381.64

325.94

247.04

243.85

14.62

3.28

11

Actual
billing

Amount
Collected

* Incl. Mobilisation advance

32

Cash Flow Chart with advance


45,000

40,000

35,000

30,000

25,000
Outflow
Inflow

20,000

15,000

10,000

5,000

33

Risk Analysis
Risk No

C1

Risk Category

Client Risk

Risk Description

Extension of project

Root Cause & Effect

Delay due to Land unavailability, Utility shifting


project completion may extend

Risk
Assessment

Probability

Impact

Risk Rating

Time
Line

Risk
Provision
ln Lacs

At Bid Stage

At Execution
Stage

Possible

Minor

Medium

Present Stage

Possible

Minor

Medium

Primary Owner

Secondary Owner

Risk Ownership
(By Position)

L&T Project Manager

Risk Mitigation Plan

Regular follow-up with Client and Consultant. All


delays has been mentioned in project reports and
communication.

Present Status / Action


steps on the Risk
Mitigation

EOT has been sent to the client on 18-03-2016 vide


letter L&T-HCIC-Narmada-16-01-85.
Awaiting for approval.

L&T Planning Manager

34

Risk Analysis
Risk No

E1

Risk Category

Execution Risk

Risk Description

Monsoon Effect

Root Cause & Effect

Heavy Monsoon and flood in river Narmada affects the


work progress in bridge site

Risk
Assessment

Probability

Impact

Risk Rating

Risk Provision
ln Lacs

At Bid Stage

Possible

Moderate

High

At Execution
Stage

Possible

Moderate

High

Risk Ownership
Risk Mitigation Plan
Present Status / Action
steps on the Risk
Mitigation

Primary Owner
L&T Project Manager

Secondary Owner
L&T Planning Manager

Down time of 2 months considered in schedule and to


complete the Upper pylon in river front before 3 rd
monsoon in project
Upper Pylon works in river front will be executed before
the monsoon.

35

Risk Analysis
Risk No

Risk Category

Execution Risk

Risk Description

Barrow Area Road works embankment

Root Cause & Effect

Non-availability of Barrow area nearby

Risk
Assessment

E2

Probability

Impact

Risk Rating

Time
Line

Risk
Provision
ln Lacs

At Bid Stage

At Execution
Stage

Possible

Minor

Medium

Present Stage

Possible

Minor

Medium

Risk Ownership
(By Position)
Risk Mitigation Plan
Present Status / Action
steps on the Risk
Mitigation

Primary Owner
L&T Project Manager

Secondary Owner
Road Contractor

Barrow area located at higher lead has been sought.

Embankment material is being brought at site from


higher lead locations upto 20-25 Kms.

36

Risk Analysis
Risk No

E3

Risk Category

Execution Risk

Risk Description

Heavy traffic jam in Scope Chainage of the Project

Root Cause & Effect

Since the existing old bridge takes only light vehicles,


Heavy vehicles are diverted on the new bridge in both
directions, which became bottleneck for traffic flow, any
issue in traffic flow causes haphazard in traffic

Risk
Assessment

Probability

Impact

Risk Rating

Risk Provision
ln Lacs

At Bid Stage

Possible

Minor

Medium

NA

At Execution
Stage

Possible

Minor

Medium

100 Lacs

Risk Ownership
Risk Mitigation Plan
Present Status / Action
steps on the Risk
Mitigation

Primary Owner

Secondary Owner

L&T Project Manager

L&T Planning Manager

To complete Service Road before taking up flyover and


Managing traffic diversion in the existing road in Bridge
approaches
The construction of Service Road and Traffic diversion in
the Main Bridge approach is in Practice

37

Risk Analysis
Risk No

E4

Risk Category

Execution Risk

Risk Description

Land acquisition is still pending in project

Root Cause & Effect

Land procurement by client (NHAI) is still not completed

Risk
Assessment

Probability

Impact

Risk Rating

Risk Provision
ln Lacs

At Bid Stage

At Execution
Stage

Possible

Minor

Medium

Risk Ownership
Risk Mitigation Plan
Present Status / Action
steps on the Risk
Mitigation

Primary Owner

Secondary Owner

L&T Project Manager

L&T Resource Manager

Regular follow-up with NHAI. Mobilize resources in other


stretches to avoid delays
After 26 months from LOA, we have not got permission to
take up works in few stretches. In the meantime
resources are diverted to other stretches where ROW is
available

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Risk Analysis
Risk No

L1

Risk Category

Design & Engineering


Risk

Risk Description

Change in Enabling Design Quantity

Root Cause & Effect

The quantity of structural steel estimated for enabling work


has been increased in design phase

Risk
Assessment

Probability

Impact

Risk Rating

Risk Provision
ln Lacs

At Bid Stage

At Execution
Stage

Rare

Moderate

Low

Risk Ownership

Primary Owner
L&T Project Manager

Secondary Owner
L&T Planning Manager

Risk Mitigation Plan

Effective quantity determination and the reuse of St. Steel to


the maximum extend

Present Status / Action


steps on the Risk
Mitigation

The structural steel quantification is done effectively and


steel from temporary liners are reused in other works to
eliminate the scrap

39

Risk Analysis
Risk Category

F1

Structure of Interim Payment increases WIP(Cost over Invoice)

Risk Description

Payment are done on completion of stages in Major items,


which causes the payment to be delayed on the incomplete
stages on the time of Payment claim.

Root Cause & Effect


Risk
Assessment

Risk No

Commercial / Financial
Risk

Probability

At Bid Stage
At Execution Stage

Risk Ownership
Risk Mitigation Plan

Impact

Risk Rating

Risk Provision
ln Lacs

Possible

Minor

Medium

Primary Owner

Secondary Owner

L&T Project Manager

L&T Planning Manager

Scheduling of Activity in a way to get maximum through put

Activity are planned and executed in accordance with the


Present Status / Action
steps on the Risk Mitigation Payment Schedule to get the maximum billing

40

Risk Assessment
Matrix
Probability

Most Likely
Likely
Possible

C1, E2,
E3, E4,
F1

E1

Unlikely
L1

Rare
Insignificant Minor
Risk Rating

Low

Major ExtremeImpact

Moderate
Medium

High
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Critical

Risk Provision
Risks Description

Present Risk
Rating

Risk Provision
at Bid Stage
( In Lacs )

Risk Provision
at Execution
( In Lacs )

Execution Risk
High

100 (Temp
Approach,
raincoats and
repairs)

Monsoon Effect

Barrow area

Medium

Land Acquisition

Medium

Heavy Traffic in Project Scope

Medium

Client Risk
Extension of Project

Medium

Commercial / Financial Risk


Structure of Interim Payment Increases WIP

Medium

Design & Engineering Risk


Change in Enabling Design Quantity

Total

Low
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100

Incurred till
date
(In Lacs)

Project Performance
Parameters

Unit

Original

Revised

Contract Value

INR Crs

379

381.64

Total cost

INR Crs

341.10

343.47

Project duration

Months

33

33

Margin

(%)

10

10

43

Thank you
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