The contractor, Sarjan Infracon Pvt. Ltd., requests an extension of time for the NH-752 K project due to delays caused by non-availability of land and other hindrances not attributable to them. The project, valued at Rs. 189.99 crores, has only seen 1.76% of work completed by March 2019, far below the required milestones due to various issues including land acquisition and utility presence. The contractor seeks to extend the completion dates by 299 days and claims additional costs incurred due to these delays.
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1st EOT Proposal
The contractor, Sarjan Infracon Pvt. Ltd., requests an extension of time for the NH-752 K project due to delays caused by non-availability of land and other hindrances not attributable to them. The project, valued at Rs. 189.99 crores, has only seen 1.76% of work completed by March 2019, far below the required milestones due to various issues including land acquisition and utility presence. The contractor seeks to extend the completion dates by 299 days and claims additional costs incurred due to these delays.
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pets SEPL/ HAZ | pesnant 2018 -19/5 ~ 66
“Date: Bee 04m BNF
To,
The Team Leader,
EDMAC Engineer Consultant ( India),Pvt. Ltd.
G-1/L.G.F., South Extension — II,
New Delhi — 110049.
Sub.: “Up-gradation of Parbhani to Gangakhed Section of NH-752 K from Existing Chainage from km. 46+620 to
km. 824505 of NH 752 K ( Design Ch. 0+000 to 35+885) to two lane with paved Shoulde
the State of
Maharashtra on EPC Mode” on EPC Mode. Reg.: Request for additional time to achieve desired
progress owing to presence of continual hindrances.
Ref:
1. LOA: Chief Engineer's letter no, CE/NH/D-1/Tender/ LOA/935/2018 dated 28.03.2018.
2. Appointed Date: Chief Engineer's letter no. CE/NH/D-1/2032/2018 dated 30.06.2018. *
3. LAQ: Our letter no. SIPL/PRBN-GNKD/NH (PW)/ 375 dated 30.07.2018,
4. Electric Pole: Executive Engineer NH division letter no. EENHD/Latur/PB/1834 dated
03.10.18.
. Electric Pole: Executive Engineer NH division letter no. EENHD/Latur/PB/1835 dated
03.10.18.
6. Water Pipe Line Shifting : Executive Engineer NH division letter no.
EENHD/Latur/PB/1831 dated 03.10.18.
7. Water Pipe Line Shifting : Executive Engineer NH division letter no.
EENHD/Latur/PB/1832 dated 03.10.18.
8. Water Pipe Line Shifting : Executive Engineer NH division letter no.
EENHD)/Latur/PB/1833 dated 03.10.18.
9. Water Pipe Line Shifting : Executive Engineer NH division letter no.
EENHD)/Latur/PB/1830 dated 03.10.18.~ Dear Sir,
The above captioned project has been awarded to the contractor vide LOA dated 28.03.2018 cited
at (1) for a value of Rs.189.99 crores and the Appointed Date was declared on 30.06.2018 and
subsequently executed the Agreement with the Authority on 11.04.2018. The details of the project
are as under —
Table 1:-
Sr. No. Description Details “|
1 Project Length 35.885 km
2 Contract Value 189.99 Crores
3 Mode of Execution EPC
\4 ‘Contractor a Mis SARJAN INFRACON
PVT.LTD.
3 Date of LOA 28.03.2018
6 Date of Agreement 11.04.2018
[7 ‘Appointed Date 30.06.2018
8 Milestone - 1 27.11.2018
9 Milestone — IT 26.04.2019
10 Milestone — TIT 28.09.2019
i ‘Schedule Completion Date 22.12.2019 “|
12 Present Status of Progress 3.73 Crores of work has been |
completed till 31.03.2019 ie. 1.76
% of the total project scope.
The Contractor herewith requests to grant extension of time for 2" project milestone and
subsequent milestones along with Scheduled Completion Date on account of non- availability of
work front due to various unavoidable reasons not attributable to the Contractor.
We would like to apprise that, the Agreement has been executed on 11.04.2019 between
CENH(PW) Navi Mumbai M/s SARJAN INFRACON PVT. LTD. subsequently joint
memorandum as per Article 8.2.1 is carried out in which the contractor has taken objection that
land is available only 47.62% i.e. only 17.072 km out of total project length of 35.885 km and
52.38% land is not made available due to various reasons.“We would like to state the reasons due to which the contractor was unable to carry out the
execution of the works as planned in accordance with the work Schedule “H” of the agreement.
i
of the works -
The following table shows the affected chainage and the reasons that affected the progress
Table2: -
Sk ~ Chainage ‘Affected Reasons. Delay
No. length | Days
_ (km) -
1. [Various chainages as| 6.15 | Land not available due to issues| 299
Annexure II pertaining to Land Acquisition
2. [Various Chainages as| 6.56 | Presence of utilities like electric) 299
Annexure IV pole& electric pole crossing
3. | Various Chainages 1.07 | Presence of Encroachment (House, | 299
compound wall, fencing, Bus stand
& shelter, Shop, Temple Etc.)
‘Various Chainages 0.78 |Presence of Encroachment in| 299
structure
The delay days as mentioned above are calculated assuming that 100% work front shall be made
available by 15.05.2019.
ii) Other reasons —
Sr. Event ~ Description Delay
No
1 Impact of Appointment |The Approval process has been delayed for late | 243
of Authority Engineer on | appointment of Authority Engineer.
28.02.2019
2 Honorable ‘As per Honorable High Court direction on 13.08.2018 | 44
order for for writ petition no. 5103 of 2018 that “State not to issue
Land any such permissions anywhere in the state without
formulating such policy or then until further order or the
court in the matter.”
3 Impact of non-issue of | The work delayed for not obtaining labour license as | 150
Form-IIl to obtain | Form-III not issued by authority (50% time delays of |
labour license 30.06.2018 to 25.04.2019) ( Our request letter |
| SIPL/Parbhani/327 dated 30.04.2018)
4 | Tree cutting work in| Tree cutting works in non-forest area could be started | 93
non-forest area only on 01.10.2018 upon receipt your letter no. dated |
01.10.2018 from Authority.
5 of | There is BSNL/ OFC Cable along the project. Delayed | 150
BSNLIOFC Cable the work by 50% of 30.06.2018 to 25.04.2019The status of month wise availability of site and the work front in terms of work value to the
contractor is detailed in the table below: -
Table 3: -
Sr. [Month Available | Cumulative | % Value of | % value
No. land Availability | Availability | work of work
(Km) (Km) (Cumulative) | available | available
1 | June"l8 -
aa 17.072 17.072 47.62 90.48 47.62%
| 30.06.2018)
2 | July’18 17.072 17.072 47.62 90.48 | 47.62%
3 | Aug's 17.072 | 17.072 47.62 9048 | 47.62%
4 | Sept ls 17.072 | 17.072 47.62 90.48 | 47.62%
5 Oct’ 18 17.072 17.072 47.62 90.48 47.62%
6 [Novis 17.072 17.072 4762 90.48 | 47.62%
7 [Decl8 17.072 | 17.072 47.62 90.48 | 47.62%
j8 | Jan°19 17.072 17.072 47.62 90.48 | 47.62%
9 | Feb19 17.072 17.072 47.62 90.48 | 47.62%
10 | March’19 17.072 17.072 47.62 O48 | 47,600
| |Totat |
Avaitape | 17272 | 17072 41.62 90.48 | 47.62%
Balance | 18813 | 18.813 52.38 99.52 | 52.38%
It is evident from the above tables that only the value of work of Rs. 99.52 crores out of a
contract value of 189.99crores was available with the Contractor as on 30.06.2018 i.e. Appointed
Date. According to the Schedule-J of the Contract Agreement, financial progress of 10% (i.e. 19.00
crores) shall be achieved for successful completion of Milestone-I i.e. 27.11.2018.However, it is an admitted fact that, the only 47.62% of ROW has been handed over as on
Appointed Date with a Contract Value of Rs.189.99 crores w.t.t to available scope of work.
Considering the available scope of work, the contractor was required to achieve a financial
progress of 10% of the available scope of work which comes out to Rs.19.00 crores (i.e. 10% of
189.99 crores) for completion of Milestone-I. The contractor is not able to achieve Mile Stone -1
as the Authority Engineer was appointed on 28.02.2019. Moreover the The Borrow area in Govt.
Land was not available due to direction of Honorable High Court of Maharastra.
It is evident from the above fact that Mile stone -1 and Mile Stone -II is not achieved for the
reasons not attributable to the contractor.
In accordance to the provisions of the Cl. 7.1.1, the EPC Contractor submitted the Performance
Security. Subsequently, upon submission of the Performance Security, the Authority pursuant to
Cl. 4.1.3 was under an obligation to provide the Right of Way (ROW) in accordance to the
Provisions laid down under Cl. 8.2 and 8.3 within a period of 30 days from the date of this
‘Agreement, on no less than 90% of the Total length of the Project Highway.
Itis regret to note that, Authority has not fulfilled their contractual obligation as per the provisions
of the Contract Agreement and even as on date the Authority is not able to provide us more than
17.072 km (ie.47.62 % of the total project length) encumbrance-free land of the total project
length of 35.885 km. The same is detailed in the hindrance register annexed herewith as Annexure
-F,
In view of the above, the contractor was unable to complete the works in line with the provision of
Schedule J of the contract Agreement and the project got delayed by 299 days and the same has
been explained in the table below -
Table 4: -
Sr.No. Description [As per Contract|As per Actual] Remarks
HTotal Scope Available as on 30.06.2028 (in
1 r y
crores) 1939) 90.48 las per table 3
2 Appointed Date 30.06.2018 | 30.06.2018 |
3 [Days between Appointed date till 35062019] 299 299 As per table 2[Financial progress to be achieved on
4 72.748 73
125.04.2019 (As per Formula) (in crores) :
5 ctual Works Completed till 25.04.2019 (in . =
crores) .
6 Shortfall in progress due to delays (in crores) = 69.02 |(72.748-3.73)
[Delay due to Non Handing over of ROW and
7 [assuming the handover of entire ROW till : 29 |
'25.04.2019
am ees cete 26.04.2019 | 26.02.2020 ~|
We would like to state that, the contractor should have completed works to the tune of Rs.72.748
crores up to 26.04.2019 w.rt the available scope of work which can be explained in the Sr. No. 4,
Table 4 above. The contractor has completed works of Rs.3.73 crores till 25.04.2019 and hence. it
proves that the contractor's progress is in line with the available scope of work, subject to
hindrance from beginning of appointed date as mentioned below.
Hence, at this juncture considering the delays due to default of the various agencies to make the
work front available to the contractor, the EPC Contractor once again requests to extend the Fad
milestone completion up to 26.02.2020 and subsequent milestone along with the Scheduled
Completion Dateby 299 days in accordance with Clause 10.5 of the Contract Agreement with all
the provisions of the Contract Agreement stated in the table 5 as under—
Table 5:-
S| Project ‘Completion date | As per | Delay days
No. | Milestones | as per Schedule | Contractor’s
J (Appointed | request
Date: -
12.05.2018)
pee eae 27.11.2018 Not Achieved 150
2 1 26.04.2019 Not Achieved 149
3 Mi 28.09.2019 28.07.2020 299
4 Iv 22.12.2019 | 22.10.2020 299 |
The Contractor herewith submits his request for extension of time with price variation for Project
Milestone-II to subsequent milestones considering 100% ROW shall be made available to the
contractor, approval of GAD pertaining to ROW and clearance of all other issues stated abovein
Table 2 by 15.05.2019Please note that, the above mentioned delays are completely attributable to the Authority and hence
the extension shall be granted without stipulation of any penalty. Further, the contractor shall incur
additional costs such as idling of resources, overheads, etc. due to prolongation of the contract and
hence, reserves the right to claim such additional costs incurred by him and the same shall be
submitted to you in due course of time.
‘Thanking you and assuring you of best services always,
Yours Faithful)
For Sarjan Infracon Pvt. Ltd.
(Authorized Signatory)
Enclosures: -
‘Annexure -I — Hindrances pertaining to Bus-bay & Toll Plaza.
Annexure ~ II - Hindrances pertaining to Land Acquisition
‘Annexure - III - Hindrances pertaining to Built-up Area.
Annexure — IV - Hindrances pertaining to Electrical Utilities.
‘Annexure ~ V - Hindrances pertaining to Water Pipe Line Shifting
‘Annexure —VI ~ Hindrances pertaining to Encroachment due to compound wall, fencing,
bus stop & shelter, shops, temple.
7. Annexure- VII — Hindrances Register as on 25.04.2019
aveepyr