Common use of Technical parameters Clause in Contracts

Technical parameters. The Standard EPC Agreement specifies the required design standards and allows the Contractor to design & construct the project using design engineering and global best practices to achieve quality, speed, efficiency & economy as compared to the item rate contract that relies on a fixed design provided by the Authority. Only the core requirements of design and construction of the Railway project that have a bearing on the quality and safety of assets are to be specified and enough room would be left for the contractor to add value. This would provide the requisite flexibility to the contractor in evolving & adopting the efficient designs without compromising on the quality and safety. Contract period: The contract period is determined on a project-specific basis depending on the volume of construction work involved. The Contractor shall be liable to pay Damages at the specified ratefor each day of delay beyond the specified date of completion, subject to the total amount of Damages not exceeding 10 per cent of the contract price. However, the Contractor shall be entitled to time extension arising out of delays on account of change of scope and force majeureor delays caused by or attributable to the Authority. Selection of Contractor: Selection of the contractor will be based on open competitive bidding. All project parameters such as the contract period, price adjustments & technical parameters are to be clearly stated upfront along with lumpsum price for the Railway Project. Risk allocation: Projects risks such as soil conditions and weather or commercial & technical risks relating to design & construction have been assigned to the Contractor. The Authority accepts its liability to pay damages to the Contractor for any delays in handing over the land, approvals from road authorities for road over- bridges/under-bridges at level crossings, environment clearances, shifting of utilities & approvals in respect of engineering scale plan & signalling interlocking plan. Design & Construction: It defines the scope of the Railway project with precision & predictability to enable the Contractor to determine its costs & obligations. It also lays down a ceiling of 25 per cent of contract price to cater for any changes in the scope of project, the cost of which the Authority will bear. The Contractor shall carry out survey and investigations and also develop designs & drawings in conformity with the specifications & standards laid down in the Agreement. Authority Engineer shall review the design & drawings to ensure that these conform to the scope of the project, designstandards & specifications. The EPC agreement also stipulates provisions for quality control & quality assurance. Monitoring & Supervision: Monitoring & supervision of construction are proposed to be undertaken through an engineer to be designated as ‘Authority Engineer’, who would be assisted by requisite organizational support for day-to- day interaction between the Authority and the Contractor. Typical organizational structure proposed to be followed for Authority Engineer shall be in line with the organizational set up being followed by DMRC for monitoring and supervision of their EPC contracts. The Authority Engineer will act as a single window for coordination with the contractor. The Agreement provides for the schedule indicating the timeline within which Authority will ensure the clearances of design proposals submitted by the contractor. Any comment by the Authorityon the design proposals submitted by the contractor will be communicated in totality once in a time-bound manner as indicated in the schedule. The contractor will be free to proceed with construction after the expiry of specified period in case no remarks/clearances are given by the Authority. Milestone based payments: A simple & rational method for estimating interim payments to the Contractor has been provided in the Agreement. It ensures that payments are made for works conforming to the Agreement and commensurate with the stages of completion of works. Works have been broadly divided into three categories, namely, civil & track works, telecommunication works and electrification works, which could be taken together under a single project or separately under different projects. Each item of work has been further sub-divided into stages and payment will be made for each completed stage of work. A provision has been made for damages which the Contractor shall pay to Authority for not achieving the prescribed milestones. Authority will pay bonus to the Contractor for completion of the project before the scheduled completion date.

Technical parameters. The Standard EPC Agreement specifies the required design standards and allows the Contractor to design & construct the project using design engineering and global best practices to achieve quality, speed, efficiency & economy as compared to the item rate contract that relies on a fixed design provided by the Authority. Only the core requirements of design and construction of the Railway project that have a bearing on the quality and safety of assets are to be specified and enough room would be left for the contractor to add value. This would provide the requisite flexibility to the contractor in evolving & adopting the efficient designs without compromising on the quality and safety. Contract period: The contract period is determined on a project-specific basis depending on the volume of construction work involved. The Contractor shall be liable to pay Damages at the specified ratefor rate for each day of delay beyond the specified date of completion, subject to the total amount of Damages not exceeding 10 per cent of the contract price. However, the Contractor shall be entitled to time extension arising out of delays on account of change of scope and force majeureor majeure or delays caused by or attributable to the Authority. Selection of Contractor: Selection of the contractor will be based on open competitive bidding. All project parameters such as the contract period, price adjustments & technical parameters are to be clearly stated upfront along with lumpsum price for the Railway Project. Risk allocation: Projects risks such as soil conditions and weather or commercial & technical risks relating to design & construction have been assigned to the Contractor. The Authority accepts its liability to pay damages to the Contractor for any delays in handing over the land, approvals from road authorities for road over- over-bridges/under-bridges at level crossings, environment clearances, shifting of utilities & approvals in respect of engineering scale plan & signalling interlocking plan. Design & Construction: It defines the scope of the Railway project with precision & predictability to enable the Contractor to determine its costs & obligations. It also lays down a ceiling of 25 per cent of contract price to cater for any changes in the scope of project, the cost of which the Authority will bear. The Contractor shall carry out survey and investigations and also develop designs & drawings in conformity with the specifications & standards laid down in the Agreement. Authority Authority’s Engineer shall review the design & drawings to ensure that these conform to the scope of the project, designstandards design standards & specifications. The EPC agreement also stipulates provisions for quality control & quality assurance. Monitoring & Supervision: Monitoring & supervision of construction are proposed to be undertaken through an engineer to be designated as ‘Authority Authority’s Engineer’, who would be assisted by requisite organizational support for day-to- to-day interaction between the Authority and the Contractor. Typical organizational structure proposed to be followed for Authority Authority’s Engineer shall be in line with the organizational set up being followed by DMRC for monitoring and supervision of their EPC contracts. The Authority Authority’s Engineer will act as a single window for coordination with the contractor. The Agreement provides for the schedule indicating the timeline within which Authority will ensure the clearances of design proposals submitted by the contractor. Any comment by the Authorityon Authority on the design proposals submitted by the contractor will be communicated in totality once in a time-bound manner as indicated in the schedule. The contractor will be free to proceed with construction after the expiry of specified period in case no remarks/clearances are given by the Authority. Milestone based payments: A simple & rational method for estimating interim payments to the Contractor has been provided in the Agreement. It ensures that payments are made for works conforming to the Agreement and commensurate with the stages of completion of works. Works have been broadly divided into three categories, namely, civil & track works, telecommunication works and electrification works, which could be taken together under a single project or separately under different projects. Each item of work has been further sub-divided into stages and payment will be made for each completed stage of work. A provision has been made for damages which the Contractor shall pay to Authority for not achieving the prescribed milestones. Authority will pay bonus to the Contractor for completion of the project before the scheduled completion date.