Letter No 008 Reply by Authority Engineer
Letter No 008 Reply by Authority Engineer
Letter No 008 Reply by Authority Engineer
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
2. The subject cited work was awarded to All the physical progress, LOA, extended of time (EOT)
Madhucon Projects Limited (MPL) vide mentioned in the letter after perusal found true but the point of
LOA dated 23.03.2018 The EPC Contract contention is the available of ROW (68% Land available on
Agreement between NHIDCL and EPC the appointed date
contractor , M/s Madhucon Projects Ac Availability of ROW:
Limited was entered into on 11.05.2018. As per office order vide letter no :NHIDCL/Nagaland/Civil
The Appointed date was declared as Works/CZ (95-115)/2018/793 Dated 22 January 2019,
20.12.2018. The scheduled date of (copy enclosed) and referring to
completion was 19.12.2021. The contract DC letter NO.LR/LAND/SARDP/NHIDCL-95/2018-
Price is Rs.188.10 Cr(including GST) .The 19/973 Dated 20/11/2018 (copy enclosed) there is 100 %
1st Extended Completion Date per work front has been available to the EPC Contractor.
approved EOT-1 was accorded on
15.08.2022 .The 2nd extended Completion Joint memorandum was signed between authorized
date as recommended in EOT -2 by IE vide representatives of EPC contractors in accordance with clause
letter dated 15.08.2022 is 21.01.2023 for 8.2. Sh. Alok Kumar Srivastava, Project Manager MPL and
Project completion. The physical progress NHIDCL on 29.11.2018 and 30.11. 2018. In this regard it is
as on December 2022 is 81.78% and the clearly mention that joint inventory has been prepared for the
Financial progress as on Dec 2022 is 79%. design km 95.000 to 109.000 i.e., length of 14 km excluding
The Project, however , got delayed due to town portion of 6.534 km length and wherever possible, it has
various reasons entirely beyond the control been decided to construct the road only in available width.
of EPC contractor and mostly attributable Drains to be constructed where feasible.
to NHIDCL such as Delay in providing Removing of standing assets (building and properties
Right of Way, Delay in Quarrying & etc.) will be difficult in this stretch, which means that the width
crushing activities by hindrances of Local of road is restricted and widening cannot be carried out as
students union, Removal of Obstructions, envisaged in the contract. Therefore, the construction width of
occurrence of Force Majeure events etc. road pavement as per clause 5.3 Schedule-B of Contract
Agreement in town portion of 6.534 Km is restricting to
available Width/ROW.
Quarrying & crushing activities :
Quarrying and crushing operations and other approval is the
part of EPC Contractor which is done as per the Schedule-F.
3. The Project has suffered right from day on Regarding Land allocation discussed above in Para 2
due to delay in handing over of land and
subsequent possession. Only 14 Km Incessant Rainfall: Geological condition is not tenable as such
(68.18%) land out of 20.534 Km as on issues is inevitable in (North-East Region) and the same would
20.12.2018 i.e. the Appointed Date was have been considered before bidding for the project, keeping in
given against 18.48 km (90%) of land as view to the adverse weather and geological condition the
per the provisions of Annexure –II of Project has already been given 03 years to achieve the
Schedule –A of Contract Agreement . Not milestone. Subsequently, rainfall is considered for EOT.
only the minimum required contractual
land was not handed over on the Protests:
Appointed date, whatever land was handed According to the report available with us there was no strike
over was also fragmented in nature and during C.A.B movement as per the GM Mokokchung vide
that too infested with numerous letter NHIDCL/BO-MKG/C-Z/PKG-V/2019-20/06 dated
Encumbrances and obstructions , 05.03.2020(copy enclosed) denied the work hampered due to
Hindrances due to locals, unseasonal heavy strike (bandh) in North East region and the reasons therein
rainfall, Landslides. COVID-19 , indicated.
Pandemic, Quarrying and crushing
problems ,etc. Occurrence of force Majeure event:
The Central Government had also announced certain
relaxations in Schedule-H through letter vide
(COVID19/Roadmap/JS (H)/2020) dated 31 Dec2020 in
terms of extending construction time for road project.
It is to intimated that amidst the on-going turmoil of COVID 19
the Government of Nagaland circulate notice through vide letter
NO.CAB-I/COM/GEN-I/2022
date 10/4/2020 (copy enclosed) in Kohima wherein has issued
the permission for the commencement of all the construction
activities in the state of Nagaland and accordingly all
contractors are advised by the competent Authority to expedited
the progress of work.
Fu furthermore, we have also taken into an account for
considerations in the EOT
M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
4. Notwithstanding above difficulties faced in As per EOT I, Contractor achieved Milestone (MS-I)
the execution of work at site, MPL was after delay of 115 days, Milestone MS -II was achieved on
still able to achieve the 2nd milestone in time, Milestone (MS-III) is still in progress and revised date of
time. As regards the 3rd Milestone, we MS-III was falls on 16.02.2022. Even after delay of 359 days
have already achieved till December 2022 (16.02.2022-07.02.2023) as per the EOT-I, EPC contractor has
a physical progress of 81.78% and a not achieved the project milestone-III which is solely
financial progress of 79% (and not 72.76% attributable to the EPC contractor. Further, as per the proposed
as mentioned in NHIDCL‘s letter dated EOT-II the Project MS-III was falls on 25.07.2022 which was
10.01.2023) against the corresponding also not achieved by EPC contractor.
target of 80%. MPL are one of the very
few contractors, who have already The physical and financial progress achieved by MPL in the
successfully complete two Packages in this last quarterly months is enclosed in Annexure –A
area of North East
As on date physical progress (13.02.2023 is 85.80% and
financial progress is 78.90%)
6. The MoRT&H Circular no. RW/NH- At the outset, we repudiate your claims that Authority Engineer
33044/76/2021-S&R (P&B) dated failed to provide any notice or to follow the procedure for
06.10.2021 provides for a laid down declaring non-performer to the EPC Contractor. Vide letter was
procedure for declaring the EPC contractor issued to the EPC Contractor for Show Cause Notice for declaring
as a Non Performer which has not been non-performer due to slow progress of work . As per reference
letter is given below:
followed. As per Para 5 ( reproduced
AGICL-MA/CZ/Gen/2022-23/1041 , dated 31.08.2022.
hereunder) of this circular before the
Contractor is declared as Non Performer a
15 days’ Notice is required to be given to
the Contractor to furnish its written reply
and to also allow a personal hearing if so
required by the contractor .In the instant
case neither the 15 days’ notice" was given
nor was the Contractor allowed a personal
hearing
“Para 5 Before deciding a contractor
/concessionaire as Non-performer or
debarring /penalizing it, the concerned
authority shall issue a notice to the
Contractor /concessionaire by giving 15
days’ time to furnish its written reply and
allow personal hearing, if so desired by the
contractor/ concessionaire, before the
competent authority or any person
designated for the purpose. Such a notice
shall not be issued without the approval of
an officer below the rank of chief Engineer
/CGM/ED. In case of projects where
public safety is endangered but the
behavior /conduct/action of the
consultant/contractor/concessionaire, the
authority may temporarily suspended the
consultant/contractor/concessionaire, from
participating in ongoing/future bidding up
to 1 month period during which the
regular process of debarment shall be
concluded,”
M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
7. Be that as it may, it may be seen that while All the physical progress, LOA, extended of time (EOT)
the Govt. of India has been taking various mentioned in the letter after perusal found true but the point of
measures to support and promote the contention is the available of ROW (68% Land available on
Infrastructure Construction Industry, the appointed date
NHIDCL has been in a very haste to Ac Availability of ROW:
declare Madhucon Projects Limited a Non As per office order vide letter no :NHIDCL/Nagaland/Civil
Performer by their letter dated 10.01.2023 . Works/CZ (95-115)/2018/793 Dated 22 January 2019,
Rather , NHIDCL has not been able to (copy enclosed) and referring to
provide the land of 90% as per the DC letter NO.LR/LAND/SARDP/NHIDCL-95/2018-
Contract Provisions on the Appointed date 19/973 Dated 20/11/2018 (copy enclosed) there is 100 %
and there were several work front has been available to the EPC Contractor.
hindrance/impediments as cited in the
various correspondence resting on the Joint memorandum was signed between authorized
subject which are still subsisting representatives of EPC contractors in accordance with clause
8.2. Sh. Alok Kumar Srivastava, Project Manager MPL and
NHIDCL on 29.11.2018 and 30.11. 2018. In this regard it is
clearly mention that joint inventory has been prepared for the
design km 95.000 to 109.000 i.e., length of 14 km excluding
town portion of 6.534 km length and wherever possible, it has
been decided to construct the road only in available width.
Drains to be constructed where feasible.
Removing of standing assets (building and properties
etc.) will be difficult in this stretch, which means that the width
of road is restricted and widening cannot be carried out as
envisaged in the contract. Therefore, the construction width of
road pavement as per clause 5.3 Schedule-B of Contract
Agreement in town portion of 6.534 Km is restricting to
available Width/ROW.
Quarrying & crushing activities :
Quarrying and crushing operations and other approval is the
part of EPC Contractor which is done as per the Schedule-F.
Protests:
According to the report available with us there was no strike
during C.A.B movement as per the GM Mokokchung vide
letter NHIDCL/BO-MKG/C-Z/PKG-V/2019-20/06 dated
05.03.2020(copy enclosed) denied the work hampered due to
strike (bandh) in North East region and the reasons therein
indicated.
M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
In view instant quarter EPC Contractor performance is satisfactory as on date EPC contractor is
doing the work in speedy manner with all resources. Keeping in view of the present physical
progress the EPC contractor will be able to complete project up to the end of March 2023. In view
of above status, it is recommended to consider the request of EPC Contractor to withdraw as Non
– performer.
Sanjay Kumar
(Team Leader)
Almondz Global Infra-Consultant Ltd.
(JV)
Manglam Associates.
Chakabama-Zunheboto Road Project.
.
Copy to
1. The MD, Almondz- Manglam Associates(JV)
2. SO Zunheboto
3. Office copy.