Contract Management
As per recommendations of MoP, it has been observed that for implementation of Civil Works of Hydro Projects, inherent uncertainty is involved in respect of topography, geology, hydro- geology etc. Due to this, detailed design & construction methodology finalised during execution may widely vary as compared to the bidding stage design & methodology conceived in the bid leading to claims & disputes.
EPC model does not provide adequate contractual window to the Owner to intervene in the event of non-performance of the contractor.
As there are considerable number of geological surprises and uncertainties associated with the construction of Song dam, scope of work is likely to vary and thus limiting the suitability of EPC mode of contract.
Issues for Consideration in EFC:
- Administrative and Financial Approval of the project at 2023 PL (Balance CE Rs. 2520.86 cr. ) under Special Assistance to States for Capital Expenditure.
- Nominating CSMRS (Central Soil & Materials Research Station) as third party QC agency.
- Nominating CWC, New Delhi as Review Consultant for the Project.
- Release of Funds Rs. 141.75 cr. in FY-2023-24; against NPV & CAT Plan Rs. 88.52 cr. for compliance of Forest clearance And against R&R Compensation and Assistance Rs. 53.23 cr.
In view of the various issues discussed above and in consonance with Jamrani, the item rate contract seems to be more suitable for the civil works of the Song Dam.