CHALLANGES RISK

& DISPUTES IN EPC

CONTRACTS

I K Pandey
Former DG(RD)&SS
MoRTH, GoI
 PARTIES TO CONTRACT
Authority- Contractor Authority
Client Engineer

ROW Land- Forest & Environment

administratio Utilities & user
n

GAD - Design Proof

Railways consultant consultant
03/12/2023 IK PANDEY 2
9/3/20XX 3

PRESUPPOSITION OF EPC
CONTRACT
EPC CONTRACTS

• Parties to act as part of the contract

• Fulfilling condition precedent before calling tender
• Un-ambiguous provisions in the contract
• Clarity in Scope of work and Specifications
• Payment Schedule H is practically implementable
• Timely decision by AE/Authority
• Contractor is well experienced and equipped with requisite
skills and has done due diligence before bidding
CHALLANGES
• Client’s proposal- scope (DPR) & CP fulfillment
• Contractor ( expertise, resources)
• AE ( Roles and responsibility)
• Other regulatory Authority
• Traffic Safety during construction
• Environmental safe-guard
• Error of Interpretations
CLIENT’S OBLIGATION EPC CONTRACT

• Correctness of Scope, project facility, specification standard

• Ensure conditions precedent: ROW, GAD, Environment
clearance
• Provide support to the contractor
• Maintenance obligation prior to appointed date
• Status of environmental clearance, utilities and ROW in
Schedule A

9/3/20XX 5
SCOPE OF THE PROJECT
• 2.1 Scope of the Project
• Article 2
2 Scope of the Project
• Under this Agreement, the scope of the Project (the “Scope of the Project”)
shall mean and include:
• (a) construction of the Project Highway on the Site set forth in Schedule- A
and as specified in Schedule-B together with provision of Project Facilities as
specified in Schedule-C, and in conformity with the Specifications and
Standards set forth in Schedule-D;
• (b) maintenance of the Project Highway in accordance with the provisions of
this Agreement and in conformity with the requirements set forth in
Schedule-E; and
• (c) performance and fulfilment of all other obligations of the Contractor in
accordance with the provisions of this Agreement and matters incidental
thereto or necessary for the performance of any or all of the obligations of the
Contractor under this Agreement.
9/3/20XX 6
SCOPE OF WORK PRESENTATION TITLE

• No clarity
• Some provision of general nature- spcl safety, slope
protection, ground improvement and maintenance work
• Some are very specific-
• Descrepancy in DPR and schedule B, C, D, & H
• CoS- early decision in writing well before 180 days and in
any case before 50% time of completion

9/3/20XX 7
ARTICLE 13. CHANGE OF SCOPE PRESENTATION TITLE

• 13.1 Change of Scope

• (i) The Authority may, notwithstanding anything to the contrary contained in this Agreement, require the
Contractor to make modifications/ alterations to the Works (“Change of Scope”) within a period of six months
counted from the Appointed Date.
• (ii) Provided that any such Change of Scope, excluding major structures (e.g. Major Bridge/ ROB/ RUB/ Flyover/
elevated road of more than 50 m length) may be required and agreed to be executed between the parties beyond
the period of six months of the Appointed Date but before expiry of 50% of the original Scheduled Construction
Period of the Project Highway, subject to the condition that it shall not entail any claims (e.g. Extension of Time/
Prolongation r
• 13.2 Procedure for Change of Scope
• (i) In the event of the Authority determining that a Change of Scope is necessary, it may direct the Authority’s
Engineer to issue to the Contractor a notice specifying in reasonable detail the Works and services contemplated
thereunder (the “Change of Scope Notice”). The Contractor shall submit a detailed proposal as per Clause 13.2 (iii)
within 15 days from the receipt of Change of Scope Notice.
• (ii) If the Contractor determines, not later than 90 days from the Appointed Date, that a Change of Scope to the
Works is required, it shall prepare a proposal with relevant details as per Clause 13.2 (iii) at its own cost and shall
submit to the Authority to consider such Change of Scope (the “Change of Scope Request”).

9/3/20XX 8
CHALLENGES WRT CP-3.1 (III) PRESENTATION TITLE

• (a) No less than 90% (ninety per cent)-…. within a

period of 30 (thirty) days …date of agreement …in
contiguous stretches of length not less than 5 (five)
kilometre.
• (b) approval of the general arrangement drawings
(the “GAD”) from railway ….., within a period of 60
(sixty) days from the Appointed Date,
• (c) all environmental clearances

9/3/20XX 9
CHALLENGES WRT - ROW PRESENTATION TITLE

• To be fulfilled before award of workdelay –time/cost overrun

• - 90% within 30 days & remaining before expiry of 180 days
• Failing which allow completion of work in handed over
continuous 5km stretch

9/3/20XX 10
FAILURE TO ISSUE APPOINTED
DATE WITHIN 90 DAYS OF PRESENTATION TITLE

SIGNING
• Deemed Termination upon delay Without prejudice to the
provisions of Clauses 8.3, and subject to the provisions of
Clause 7.3, the Parties expressly agree that in the event the
Appointed Date does not occur, for any reason whatsoever,
within 90 days of signing of the Agreement and submission
of the full Performance Security by the Contractor, the
Agreement shall be deemed to have been terminated. The
Authority shall pay damages to the Contractor equivalent to
1% of the Contract Price (3% in case of standalone bridge
projects).

9/3/20XX 11
DELAY DAMAGE ART 3.1 PRESENTATION TITLE

• Sum as calculated as per Art 8.3 and EoT as per 10.5

• Max limited to 1% of contract
• Both the parties agree that payment of such Damages shall
be full and final settlement of all claims of the Contractor and
such compensation shall be the sole remedy against delays
of the Authority and both parties further agree that the
payment of Damages shall be the final cure for the
Contractor against delays of the Authority, without recourse
to any other payments.

9/3/20XX 12
HANDING OVER SITE PRESENTATION TITLE

MEMORUNDUM ART 8.2

• within 10 (ten) days of the date of this Agreement, inspect the Site
and prepare a detailed memorandum
• If the contractor fails to join for site inspection or disputes the
parts of the site available for work, the Authority’s Engineer shall
decide the parts of the site where work can be executed and notify
to both the parties within 3 days of the proposed date of
inspection.
• Parties expressly agree that the Appendix shall in no event
contain sections of the Project Highway the cumulative length of
which exceeds 10% (ten percent) of the total length of the Project
Highway
Art8.3 Damages for delay in handing over the Site
•9/3/20XX 13
ART 8.3 (III)- WITHDRAWAL, PRESENTATION TITLE

DEEMED DESCOPE
• (a) Notwithstanding anything to the contrary contained in this Agreement,
unless covered under the deemed de-scoping in terms of sub-clause 8.3 (iii)
(b), the Authority may at any time withdraw any Works forming part of this
Agreement, subject to such Works not exceeding an aggregate value, such
value to be determined in accordance with Schedule-H, equal to 10 (ten)
percent of the Contract Price.

• (b) Provided that if any Works cannot be undertaken within the municipal
limits of a town or within any area falling in a reserved forest or wildlife
sanctuary or the stretches where vacant access and Right of Way could not be
handed over, as the case may be, because the requisite clearances or
approvals or affected land parcels for commencing construction of Works
therein have not been given within 180 (one hundred and eighty) days of the
Appointed date, the affected Works shall be deemed to be withdrawn under
the provisions of this Clause 8.3.3. Such Works shall not be computed for the
purposes of the aforesaid ceiling of 10% (ten per cent) hereunder.

9/3/20XX 14
-DELAY IN ROW-STAGE PAYMENT PRESENTATION TITLE

MILESTONE MODIFICATION
• The Parties agree that for determining achievement or delays in
completion of the Project Milestones or the Project on the due
date, the works affected due to delay in providing the site for
which time extension has been granted beyond the Scheduled
Completion Date will be excluded. For example on the due date to
achieve the Project Milestone-I (i.e., Stage Payments of 10% (ten
percent) of Contract Price on 180th (one hundred and eighty) day
from the Appointed Date), if 5% (five percent) of the project length
corresponding to the Project Milestone-I is not handed over or
lately handed over resulting in the extension of completion of this
5% (five percent) length beyond Scheduled Completion Date,
Stage Payment of 10% X 0.95 = 9.5% only is to be achieved by
180th (one hundred and eighty) day.

9/3/20XX 15
COMPLETION IN HANDED OVER PRESENTATION TITLE

ROW
• If work is completed within scheduled completion date, in
the handed over stretch within 180 days of appointed date
completion certificate need to be issued.

9/3/20XX 16
DAMAGES AS PER 8.3 AND EOT
AS PER 10.5 PRESENTATION TITLE

• Parties expressly agree that the aggregate Damages payable

under Clauses 3.1 (iv), 8.3 and 9.5 shall not exceed 1% (one
per cent) of the Contract Price.
• Both the parties agree that payment of such Damages shall
be full and final settlement of all claims of the Contractor and
such compensation shall be the sole remedy against delays
of the Authority and both parties further agree that the
payment of Damages shall be the final cure for the
Contractor against delays of the Authority, without recourse
to any other payments.

9/3/20XX 17
SUPPORT TO THE CONTRACTOR PRESENTATION TITLE

• The Authority agrees to provide support to the Contractor

and undertakes to observe, comply with and perform,
subject to and in accordance with the provisions of this
Agreement and the Applicable Laws, the following: eg
Quarry
• The Authority shall, prior to the Appointed Date, maintain the
Project Highway, at its own cost and expense, so that its
traffic worthiness and safety are at no time materially inferior
as compared to its condition 10 (ten) days prior to the last
date for submission of the Bid, -----provision for repair before
appointed date?

9/3/20XX 18
GOOD INDUSTRY PRACTICE PRESENTATION TITLE

• The Contractor shall carry out such work incidental and

contingent to the original Scope of the Project to comply with
Good Industry Practices.
• “Good Industry Practice” means the practices, methods,
techniques, designs, standards, skills, diligence, efficiency,
reliability and prudence which are generally and reasonably
expected from a reasonably skilled and experienced contractor
engaged in the same type of undertaking as envisaged under this
Agreement and which would be expected to result in the
performance of its obligations by the Contractor in accordance
with this Agreement, Applicable Laws and Applicable Permits in
reliable, safe, economical and efficient manner;

9/3/20XX 19
10.6 INCOMPLETE WORKS BEYOND
SCHEDULE COMPLETION DATE
• In the event the Contractor fails to complete the Works in
accordance with the Project Completion Schedule, including
any Time Extension granted under this Agreement, the
Contractor shall endeavour to complete the balance work
expeditiously and shall pay Damages to the Authority in
accordance with the provisions of Clause 10.3 (ii) for delay of
each day until the Works are completed in accordance with
the provisions of this Agreement. Recovery of Damages
under this Clause shall be without prejudice to the rights of
the Authority under this Agreement including the right to
termination under Clause 23.1.
9/3/20XX 20
CHALLENGES – PRESENTATION TITLE

•Action Contractor

9/3/20XX 21
CONTRACTOR’S OBLIGATION EPC CONTRACT

❖All Surveys, design, procurement & construction

❖Obtain all permits, environment
❖Remedy all loss/damage
❖Maintain bank acct, detailed utilisation
❖Incidentals to works- safety
❖Good industry practice
❖Subcontract
❖Site data examination
❖Sufficiency of contract price

9/3/20XX 22
COMMON REASONS OF DISPUTE PRESENTATION TITLE

• Scope changes
• Schedule delays
• Cost overruns
• Quality and performance issues
• Payment dispute
• Contract Interpretation
• Force Majeure
• Regulatory compliances
• Termination issues

9/3/20XX 23
4.8 UNFORESEEABLE PRESENTATION TITLE

DIFFICULTIES
Except as otherwise stated in the Agreement: Like
underground services
• (a) the Contractor accepts complete responsibility for having
foreseen all difficulties and costs of successfully completing the
Works;
• (b) the Contract Price shall not be adjusted to take account of any
unforeseen difficulties or costs; and
• (c) the Scheduled Completion Date shall not be adjusted to
take account of any unforeseen difficulties or costs

9/3/20XX 24
5.2 REPRESENTATIONS AND
WARRANTIES OF THE AUTHORITY PRESENTATION TITLE

• (a) it has full power and authority to execute, deliver and

perform its obligations under this Agreement and to carry
out the transactions contemplated herein and that it has
taken all actions necessary to execute this Agreement,
exercise its rights and perform its obligations, under this
Agreement; (b) it has taken all necessary actions under the
Applicable Laws to authorise the execution, delivery and
performance of this Agreement; (d) this Agreement
constitutes a legal, valid and binding obligation enforceable
against it in accordance with the terms hereof;
• -if CP not done you frustate the contract

9/3/20XX 25
ARTICLE 6 DISCLAIMER PRESENTATION TITLE

• (i) The Contractor acknowledges that prior to the execution of this Agreement, the Contractor
has, after a complete and careful examination, made an independent evaluation of the Request
for Proposal, Scope of the Project, Specifications and Standards of design, construction and
maintenance, Site, local conditions, physical qualities of ground, subsoil and geology, traffic
volumes, suitability and availability of access routes to the Site and all information provided by
the Authority or obtained, procured or gathered otherwise, and has determined to its
satisfaction the accuracy or otherwise thereof and the nature and extent of difficulties, risks and
hazards as are likely to arise or may be faced by it in the course of performance of its
obligations hereunder. Save as provided in Clause 3.1 and Clause 5.2, the Authority makes no
representation whatsoever, express, implicit or otherwise, regarding the accuracy, adequacy,
correctness, reliability and/or completeness of any assessment, assumptions, statement or
information provided by it and the Contractor confirms that it shall have no claim whatsoever
against the Authority in this regard.
• (ii) The Contractor acknowledges and hereby accepts to have satisfied itself as to the
correctness and sufficiency of the Contract Price. (iii) The Contractor acknowledges and
hereby accepts the risk of inadequacy, mistake or error in or relating to any of the matters set
forth in Clause 6.1 (i) above and hereby acknowledges and agrees that the Authority shall not
be liable for the same in any manner whatsoever to the Contractor, or any person claiming
through or under any of them, and shall not lead to any adjustment of Contract Price or
Scheduled Completion Date.

9/3/20XX 26
8.6 SPECIAL/ TEMPORARY RIGHT PRESENTATION TITLE

OF WAY
• The Contractor shall bear all costs and charges for any
special or temporary right of way required by it in connection
with access to the Site. The Contractor shall obtain at its cost
such facilities on or outside the Site as may be required by it
for the purposes of the Project Highway and the performance
of its obligations under this Agreement.
• ( this is unworkable in case of diversions)

9/3/20XX 27
9.2 SHIFTING OF OBSTRUCTING PRESENTATION TITLE

UTILITIES
• The Contractor shall, in accordance with Applicable Laws and
with assistance of the Authority, undertake the work of shifting of
any utility (including electric lines, water pipes, gas pipelines and
telephone cables) to an appropriate location or alignment, if such
utility or obstruction adversely affects the execution of Works or
Maintenance of the Project Highway in accordance with this
Agreement. The cost of such shifting, as per estimates prepared
by the entity owning the utility and approved by the Authority,
shall be reimbursed by the Authority to the Contractor. The scope
of work of such shifting of Utilities shall be as indicated in
Schedule-B-1. In the event of any delay of such shifting on the
part of the contractor, no extension of time for completion of the
project and no claims, in any manner, shall be admissible on this
account against the Authority.

9/3/20XX 28
9.5 DISMANTLING OF STRUCTURES – PRESENTATION TITLE

AT CONTRACTOR’S COST
• The Contractor shall at its own cost dismantle the structures
in the acquired lands including those on patta lands, abadi
lands, assigned lands, etc. the compensation for which, was
paid by the Authority to the land owners and the lands were
handed over to the Contractor as per Schedule B-I. The
Contractor shall, at its own cost, dispose of the dismantled
material in its sole discretion as deemed appropriate, while
complying with all environmental guidelines and regulations
and clear the Site for undertaking construction.

9/3/20XX 29
11.2 QUALITY CONTROL SYSTEM
PRESENTATION TITLE

• (i) The Contractor shall establish a quality control

mechanism to ensure compliance with the provisions of this
Agreement (the “Quality Assurance Plan” or “QAP”). –
mostly deficient

9/3/20XX 30
11.16 VIDEO RECORDING PRESENTATION TITLE

• 11.16 Video recording During the Construction Period, the

Contractor shall provide to the Authority for every calendar
quarter, a video recording, which will be compiled into a 3
(three)- hour compact disc or digital video disc, as the case
may be, covering the status and progress of Works in that
quarter. The video recording shall be provided to the
Authority no later than 15 (fifteen) days after the close of
each quarter after the Appointed Date. ( seldom done )

9/3/20XX 31
11.17 SUSPENSION OF UNSAFE
CONSTRUCTION WORKS – NO PERIOD
PRESENTATION TITLE

LIMIT
• 11.17 Suspension of unsafe Construction Works
• (i) Upon recommendation of the Authority’s Engineer to this
effect, the Authority may by notice require the Contractor to
suspend forthwith the whole or any part of the Works if, in
the reasonable opinion of the Authority’s Engineer, such
work threatens the safety of the Users and pedestrians

9/3/20XX 32
17.4 CONTRACTOR’S FAILURE TO PRESENTATION TITLE

RECTIFY DEFECTS
• If the Contractor fails to repair or rectify such Defect or deficiency
within the period specified in Clause 17.2, the Authority shall be
entitled to get the same repaired, rectified or remedied at the
Contractor’s cost to make the Project Highway conform to the
Specifications and Standards and the provisions of this
Agreement. All costs consequent thereon shall, after due
consultation with the Authority and the Contractor, be determined
by the Authority’s Engineer. The cost so determined and an
amount equal to 20% (twenty percent) of the cost as Damages
shall be recoverable by the Authority from the Contractor and
may be deducted by the Authority from any monies due to the
Contractor.

9/3/20XX 33
ART. 22 SUSPENSION OF CONTRACTOR’S
RIGHTS-LIMIT 90D
• 22.1 Suspension upon Contractor Default
• Upon occurrence of a Contractor Default, the Authority shall be
entitled, without prejudice to its other rights and remedies under
this Agreement including its rights of Termination hereunder, to
(i) suspend carrying out of the Works or Maintenance or any part
thereof, and (ii) carry out such Works or Maintenance itself or
authorise any other person to exercise or perform the same on its
behalf during such suspension (the “Suspension”). Suspension
hereunder shall be effective forthwith upon issue of notice by the
Authority to the Contractor and may extend up to a period not
exceeding 90 (ninety) days from the date of issue of such notice.
• 22.2 Authority to act on behalf of Contractor

9/3/20XX 34
PRESENTATION TITLE
SUSPENSION OF CONTRACTOR’S
RIGHTS
• 22.3 Revocation of Suspension
• (i) within a period not exceeding 60 (sixty) days from the date of Suspension, it shall revoke the
Suspension forthwith and restore all rights of the Contractor under this Agreement.
• revoke the Suspension at any time, whether or not the cause of Suspension has been rectified
or removed hereunder.
• (ii) Upon the Contractor having cured the Contractor Default within a period not exceeding 60
(sixty) days from the date of Suspension, the Authority shall revoke the Suspension
• 22.4 Termination
• (i) At any time during the period of Suspension under this Article 22, the Contractor may by
notice require the Authority to revoke the Suspension and issue a Termination Notice. The
Authority shall, within 15 (fifteen) days of receipt of such notice, terminate this Agreement
under and in accordance with Article 23.
• (ii) Notwithstanding anything to the contrary contained in this Agreement, in the event that
Suspension is not revoked within 90 (ninety) days from the date of Suspension hereunder, the
Agreement shall, upon expiry of the aforesaid period, be deemed to have been terminated by
mutual agreement of the Parties and all the provisions of this Agreement shall apply, mutatis
mutandis, to such Termination as if a Termination Notice had been issued by the Authority
upon occurrence of a Contractor Default.

9/3/20XX 35
ARTICLE 23 TERMINATION PRESENTATION TITLE

• 23.1 Termination for Contractor Default

• (i) in the event that any of the defaults specified below shall have occurred,
and the Contractor fails to cure the default within the Cure Period set forth
below, or where no Cure Period is specified, then within a Cure Period of 60
(sixty) days, the Contractor shall be deemed to be in default of this Agreement
(the “Contractor Default”), unless the default has occurred solely as a result of
any breach of this Agreement by the Authority or due to Force Majeure .
• (g) the Contractor fails to rectify any Defect, the non-rectification of which
shall have a Material Adverse Effect on the Project, within the time specified
in this Agreement or as directed by the Authority’s Engineer;

• (iv) After termination of this Agreement for Contractor Default, the Authority
may complete the Works and/or arrange for any other entities to do so. The
Authority and these entities may then use any Materials, Plant and
equipment, Contractor’s documents and other design documents made by or
on behalf of the Contractor.
9/3/20XX 36
23.2 TERMINATION ON PRESENTATION TITLE

AUTHORITY’S DEFAULT
• (b) the Authority has failed to make payment of any amount
due and payable to the Contractor within the period specified
in this Agreement;
• (c) the Authority has failed to provide, within a period of 180
(one hundred and eighty) days from the Appointed Date, the
environmental clearances required for construction of the
Project Highway;

9/3/20XX 37
23.3 TERMINATION FOR AUTHORITY’S
CONVENIENCE PRESENTATION TITLE

• Notwithstanding anything stated hereinabove, the Authority

may terminate this Agreement for convenience. The
termination shall take effect 30 (thirty) days from the date of
notice provided to the Contractor.

9/3/20XX 38
23.5 VALUATION OF UNPAID
WORKS PRESENTATION TITLE

• (i) Within a period of 45 (forty-five) days after Termination under

Clause 23.1, 23.2 or 23.3, as the case may be, has taken effect, the
Authority’s Engineer shall proceed in accordance with Clause 18.5
to determine as follows the valuation of unpaid Works (the
“Valuation of Unpaid Works”):
• (a) value of the completed stage of the Works, less payments already
made;
• (b) reasonable value of the partially completed stages of works as on the
date of Termination, only if such works conform with the Specifications
and Standards; and
• (c) value of Maintenance, if any, for completed months, less payments
already made, and shall adjust from the sum thereof (i) any other amounts
payable or recoverable, as the case may be, in accordance with the
provisions of this Agreement; and (ii) all taxes due to be deducted at
source.
9/3/20XX 39
23.6 TERMINATION PAYMENT
• (i) Upon Termination on account of Contractor’s Default under Clause 23.1, the Authority shall:
• (a) encash and appropriate the Performance Security, Additional Performance Security if any and Retention
Money, claim the amount stipulated in Clause 7.1
• (b) encash and appropriate the Bank Guarantee
• (c) pay to the Contractor, Valuation of Unpaid Works

• (ii) Upon Termination on account of an Authority Default under Clause 23.2 or for Authority’s
convenience under Clause 23.3, the Authority shall:
• (a) return the Performance Security, Additional Performance Security and Retention Money
forthwith;
• (b) encash and appropriate the bank guarantee, if any, for and in respect of the outstanding
Advance Payment; and
• (c) pay to the Contractor, by way of Termination Payment, an amount equal to:
• Valuation of Unpaid Works;
• the reasonable cost of temporary works, as determined by the Authority’s Engineer; and
• 10% (ten per cent) of the cost of the Works and Maintenance that are not commenced or not completed,

9/3/20XX 40
ART. 26 DISPUTE RESOLUTION PRESENTATION TITLE

• 26.1 dispute resolution- amicably

• 26.2 Concilliation
• 26.3 Arbitration
• 26.4 Adjudication by Regulatory Authority, Tribunal or
Commission

9/3/20XX 41
16.1 TRAFFIC REGULATION BY THE
CONTRACTOR PRESENTATION TITLE

• (i) The Contractor shall take all the required measures and
make arrangements for the safety of Users during the
Construction and Maintenance of the Project Highw

9/3/20XX 42
19.20 BONUS FOR EARLY PRESENTATION TITLE

COMPLETION
• In the event that the Project Completion Date occurs prior to
the Scheduled Completion Date, the Contractor shall be
entitled to receive a payment of bonus equivalent to 0.03%
(zero point zero three per cent) of the Contract Price for each
day by which the Project Completion Date precedes the
Scheduled Completion Date, but subject to a maximum of 5%
(five per cent) of the Contract Price. Completion Date:
• Required- report of all tests
• Video of completed site work

9/3/20XX 43
COMPLETION OF PROJECT PRESENTATION TITLE

• 12.1 Completion Certificate

• (i) At least 30 (thirty) days prior to the likely completion of the Project Highway, or a Section thereof, the
Contractor shall notify the Authority’s Engineer
• (ii) All Tests shall be conducted in accordance with Schedule-K.
• 12.2 Completion Certificate
• (i) Upon completion of all Works forming part of the Project Highway, and the Authority’s Engineer
determining the Tests to be successful and after the receipt of notarized true copies of the certificate(s) of
insurance, copies of insurance policies and premium payment receipts in respect of the insurance defined
in Article 20 and Schedule P of this Agreement, it shall, at the request of the Contractor forthwith issue to
the Contractor and the Authority a certificate substantially in the form set forth in Schedule-L (the
“Completion Certificate”).
• 12.3 Rescheduling of Tests
• If the Authority’s Engineer certifies to the Authority and the Contractor that it is unable to issue the
Completion Certificate, as the case may be, because of events or circumstances on account of which the
Tests could not be held or had to be suspended, the Contractor shall be entitled to re-schedule the Tests
and hold the same as soon as reasonably practicable.

9/3/20XX 44
ARTICLE 20 INSURANCE- RISK OF DOING
UNSAFE, UNAUTHORISED WORK
• (iv) Notwithstanding anything stated above in Clause 20.1 (iii), the Authority
shall fully indemnify the Contractor from and against any and all losses,
damages, costs, charges, proceedings and/or claims arising out of or with
respect to:
• (a) the use or occupation of land or any part thereof by the Authority;
• (b) the right of the Authority to execute the Works, or any part thereof, on,
over, under, in or through any land;
• (c) the damage to property which is the unavoidable result of the execution
and completion of the Works, or the remedying of any Defects therein, in
accordance with this Agreement; and
• (d) the death of or injury to persons or loss of or damage to property
resulting from any act or neglect of the Authority,

PRESENTATION TITLE

9/3/20XX 45
20.4 REMEDY FOR FAILURE TO
INSURE PRESENTATION TITLE

• If the Contractor shall fail to effect and keep in force all

insurances for which it is responsible pursuant hereto, the
Authority shall have the option to either keep in force any
such insurances, and pay such premia and recover the costs
thereof from the Contractor, or in the event of computation
of a Termination Payment, treat an amount equal to the
Insurance Cover as deemed to have been received by the
Contractor.

9/3/20XX 46
OVERHEAD COST OF DELAY PRESENTATION TITLE

• Labor cost
• Equipment
• Administrative
• PMC
• Site office cost
• Financing cost
• Legal and insurances
• Material storage
• Lost productivity
• Penalties & LD
• Opportunity cost

9/3/20XX 47
AUTHORITY ENGINEERS’ ROLE PRESENTATION TITLE

• Keep track of compliance by contractor and clear

reporting
• Timely review of work programm, designs and
methodology
• Keep the Authority informed of all development at
site
• Prompt decision
• Facilitate dispute resolution
9/3/20XX 48
AUTHORITY TO ACTIVELY INVOLVE
• In preparation of contract document- CP and Schedules
• Payment schedule to be practical and executable- allow
changes as per construction schedule
• Hold business meeting to resolve dispute and facilitate
timely execution
• For specialised works ie tunnel, bridges >200m length and
span>30m 100% quality assurance/ control by AE
• Designer and proof check consultant should sholder 100%
responsibilty for any failure.
IK PANDEY
03/12/2023 49
INSTITUTIONAL STRENGTHENING
• Enhanced Understanding of Contract Terms
• Improved Communication Skills:
• Project Management Skills:
• Legal and Regulatory Knowledge:
• Conflict Resolution Training:
• Risk Management
• Contract Compliance:
• Cultural Sensitivity and Collaboration Skills
• Ongoing Updates
I K PANDEY
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9/3/20XX PRESENTATION TITLE 51