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The project for Earth Work Excavation and Construction of C D works for the Kamasamudra Branch Canal was approved with an estimated cost of ₹81.00 crore, and awarded to a contractor in June 2015. Due to land acquisition issues, the project faced delays, leading to multiple extensions and a total cost increase to ₹84.09 crore. The contractor has requested additional claims and the project remains incomplete, with a balance of ₹12.93 crore yet to be executed and payments pending.

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8 views3 pages

Document

The project for Earth Work Excavation and Construction of C D works for the Kamasamudra Branch Canal was approved with an estimated cost of ₹81.00 crore, and awarded to a contractor in June 2015. Due to land acquisition issues, the project faced delays, leading to multiple extensions and a total cost increase to ₹84.09 crore. The contractor has requested additional claims and the project remains incomplete, with a balance of ₹12.93 crore yet to be executed and payments pending.

Uploaded by

mohalhg9
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The work of “Earth Work Excavation, Construction of C D works and Providing

C.C.Lining

From Ch:5.00 Km to 35.00 Km of Kamasamudra Branch Canal of Yagachi Left


Branch Canal”

Was approved in the 5th” Estimate Review Committee mecting (20.02.2014)


at an cstimated cost

Of ₹81.00 crore. Technical sanction was accorded by the Chief Engineer on


12.09.2014. After

Issuing a corrigendum, the tender was re-notified on 18.11.2014, and the


technical bid opening

Was s scheduled for 18.12.2014. Out oftwo bidders, the lowest bid of ₹71.08
crore, (9.95% above

Updated estimatc of ₹64.64 crore) was accepted, and the work was awarded
to Sri P.

Dasaratharamareddy in joint venture with M/s Amrutha Construction Pvt Ltd.


Agreement was

Executed, and the work order was issued on 08.06.2015 stipulating the work
to bc completed by

18 months, ending on 07.12.2016

The contractor commenced work on 08.06.2015 but due to land acquisition


issues, the work

Could not be completed on tine. The Chief Engineer had approved three
EOT’s ‘ from 08.12.2016

To 07.12.2019. During execntion, variations in quantities had led to the


approval of an EFI

(19,06.2018) & ERIL (01.06.2019) proposal of ₹13.01 crore by MD, CNNL,


bringing the total

Cost of work to ₹84.09 crore2. Accordingly, supplementary agreements were


executed. The

Contractor had been paid an un-to-date payment of ₹71.16 crore (37h & part
RA Bill) leaving a

Balance of ₹12.93 crore* for the remaining work


Meanwhile, the contractor had requested for settlement of claims under
Clause 29, including

GST, idle charges, equitable rates during the cxtended period, ovcrhcad
charges, bank guarantee

Sharges, loss of profit, hire charges, land compensation, and 18% interest
(08.12.2020). Based on

He recommendations of CNNL’s Legal Advisor, claims for GST, equitable


rates, bank guarantee

Charges, and 18% interest on delayed payments were accepled, while the
rest were rejected

Audit noticed that consequent to delay in land acquisition, the contractor had
requested for

Foreclosure of the contract on 14.06.2021. Further , the contractor while


citing the outdated

Lender rates, ata later date on 18.10.2021 had sought payment a the current
Schedule of Rates

(CSR) plus tcnder premium along with GST. The department agreed to pay
for quantities

Executed up to 2018-19 at the tender rates and for quantities beyond 2018-
19 at the 202 1-22 SR

Acordingly, the balance work amounting to ₹12.93 crore as per tender rates
(valued at ₹23.78

Crore` as per CSR 2021-22) needed to be executed. To address the


differential amount of ₹10.85

Crore arising due to the adoption of CSR rates in lieu of tender rates, a
supplementary agreement

Was executed on 20.02.2023. The work was stillin progress, the entire
payment of ₹23.78 crore

Was yet to be made.

In view of the above fact, the following observations are made

(a) Non-Compliance of Codal provisions of KPWD

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