JAMMU, AUGUST 17: National Highways & Infrastructure Development Corporation Limited has put M/s Tarmat Ltd., (“EPC Contractor”) in negative list of Authority for failing to meet the agreed targets and poor progress of work on Jammu-Akhnoor Road project.
“In view of non-professional attitude of the EPC Contractor towards its obligations as per the provisions of the Contract Agreement and failure to meet the agreed targets and continued painful slow progress of work, NHIDCL is hereby placing M/s Tarmat Ltd., in the ‘Negative List’ of the Authority for a period of 01 (one) year from the date of issuance of this order or till it achieves the Milestone-III, whichever is earlier”, an order issued by the Corporation stated.
Divisional Commissioner Jammu, Dr Raghav Langer, who is closely monitoring the pace of work on the project, has warned the contractor company of further action if it fails to achieve the desired results. He said that as per the Directions of office of the Lieutenant Governor all the development projects need to be expedited and lackadaisical approach will not be tolerated.
An order issued in this regard stated that the M/s Tarmat Ltd Signed an EPC Agreement on 07.06.2019 for the work of “Up-gradation to 4-lane with paved Shoulder of Jammu-Akhnoor Road section of NH-144A from Ganesh Vihar (Km 6.000) to Khati Chowk (Km 26.350) of 20.350 Km length in the UT of Jammu & Kashmir to be executed on EPC basis (Package-Ill)” at the contract price of Rs.193.99Cr., with construction period of 24 months commencing from the Appointed Date i.e.12.07.2019 on the terms, conditions and covenants contained in the Contract Agreement which are in force and remain effective.
Authority, in fulfilment of its obligations has handed over the required stretches of the Project Highway to the EPC Contractor as per the essential Terms and Conditions of the Contract Agreement, the EPC Contractor was obliged to undertake the Survey, Investigation, Design, Engineering, Procurement, Construction and Maintenance of the Project and observe, fulfill and comply with and perform its obligations set out under this Contract Agreement and moreover to follow the Contract Agreement and the obligations stipulated therein with full adherence, diligence and sincerity.
The date of achieving the Milestones of the Project as per Contract Agreement (Schedule-J) are 23.03.2020 (MS-I i.e. 10%), 22.09.2020 (MS-II, i.e. 35%), 23.03.2021 (MS-Ill, i.e.70%) and 11.07.2021 (Scheduled Completion Date, i.e. 100%). However, EPC Contractor in complete disregard to the contractual stipulations has achieved only 30.73% financial progress as on 27.07.2021 and has failed to achieve the Scheduled Completion due to the entire reasons, defaults and breaches which are solely attributable to the EPC Contractor.
The EPC Contractor has failed in mobilizing the adequate resources, Manpower, Materials, Machinery and Plant & Equipment etc. to meet the desired progress as per Milestones fixed as per Schedule-J of Contract Agreement. The EPC contractor has failed to maintain the quality of work in accordance with prescribed standards/ specifications.
Pertinently, on the directions of the office of the Lieutenant Governor, Divisional Commissioner Jammu Dr Raghav Langer reviewed regularly the progress of work and also conducted site visit on June 6, 2021 to inspect the progress of work. He expressed his dissatisfaction over the progress and issued strict directions to the contractor to expedite the pace of work and achieve the agreed targets of work. The Div Com also took strong note of the poor condition of the existing road and the contractor was instructed to maintain the existing road so that commuters do not face any inconvenience.
The Div Com was also informed that the land of the stretch was free of encumbrances and with the regular intervention of the district administrations Jammu all the bottlenecks like issuance of Short Term Permits for providing minor minerals were being resolved.
The Div Com directed the contractor to expedite the work progress and NHIDCL was asked to take appropriate actions on the contractors in case of poor performance.
“The EPC Contractor’s act is totally unethical and shows total disregard to its commitment made during the Review/Conciliation Meetings, moreover, the EPC Contractor has also proved that it is not at all bothered about the public discomfort that is being faced by the people of Jammu & Kashmir due to slow execution of the project” the order stated.
Moreover, keeping in view the slow progress and poor quality works the NHIDCL had also issued several show case notices to the EPC for placing in the Negative list of the Authority. The replies of the contractor were rejected due to reasons that the EPC Contractor has failed to maintain the quality of work in accordance with the prescribed standards and specifications. The EPC Contractor has failed to take up all the safety measures as required and is executing the project in question in a negligent manner. The EPC Contractor has failed to mobilize the adequate Resources, Manpower, Materials, Machinery and Plant & Equipment etc., despite repeated communications from the Authority.
In response to alleged delay in utility shifting work, it is stated that the EPC Contractor has to execute all the utility shifting work as per Contract Agreement and delay in this regard is totally attributable to the EPC Contractor. In view of the above, it is clearly evident that M/s Tarmat Ltd., has failed in meeting the obligations as per the Contract Agreement and also failed in mobilizing the requisite resources for the project which has already caused detrimental effect in respect of time and economy for the project of national importance.
“In light of the aforesaid facts and circumstances, considering the non responsive, non-professional attitude of the EPC Contractor towards their obligations as per the provisions of the Contract Agreement and failure to meet the agreed targets and continued painful slow progress of work, NHIDCL is hereby placing M/s Tarmat Ltd., in the ‘Negative List’ of the Authority in terms of Office Order No. 227/2020 dated 15.12.2020 for a period of 01 (one) year from the date of issuance of this order or till it achieves the Milestone-III, whichever is earlier”, order stated.
