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EPC
EPC Agreement
The revised standard Engineering, Procurement and Construction Agreement for National Highway and centrally sponsored road works. March 2019.
27Articles
200Clauses
18Schedules
111Terms
- Lump sum Contract Price with stage payments against Schedule-H
- Authority’s Engineer — appointment, duties and the five matters needing prior approval
- Price adjustment weightages and the maintenance payment table
- Defects Liability of 5 or 10 years by pavement type
HAM
HAM Concession Agreement
The Model Concession Agreement for Hybrid Annuity Projects — public private partnership in highway development. November 2020.
42Articles
212Clauses
19Schedules
141Terms
- 40% paid across ten milestones, the balance as 30 biannual annuities
- The full annuity schedule and the interest that runs on the reducing balance
- Termination payment matrices by milestone, before and after COD
- Independent Engineer, Escrow Account and the lenders’ substitution right
Side by side
| EPC Agreement | HAM Concession Agreement | |
|---|---|---|
| Parties | Authority and Contractor | Authority and Concessionaire |
| Supervision | Authority’s Engineer | Independent Engineer |
| Who finances | The Authority pays for the works as built | Concessionaire finances 60%, recovered as annuities |
| Payment basis | Lump sum Contract Price, stage payments per Schedule-H | 40% in ten milestone instalments of 4%, 60% as 30 biannual annuities over 15 years |
| Interest to Contractor | None on the price; 9% p.a. on delayed security release | MCLR of top 5 banks + 1.25% on the reducing Completion Cost |
| Performance Security | 5% of Bid Price | 5% of Bid Project Cost |
| Additional security | 20% or 30% of the shortfall for a low bid | 10% of the gap where the bid is over 10% below the estimate |
| Retention | 6% of each payment, capped at 5% of Contract Price | No retention — an Escrow Account governs all flows |
| Scheduled Completion | 650th day from the Appointed Date | 550th day from the Appointed Date |
| Milestone damages | 0.05% of Contract Price per day, after a 30-day grace | 0.1% of Performance Security per day, after a 90-day grace |
| Completion delay | 0.05% of Contract Price per day | 0.2% of Performance Security per day, from the 91st day |
| Early bonus | 0.03% per day, capped at 5% of Contract Price | 0.5% of 60% of Bid Project Cost for the first 30 days |
| Mobilization advance | 10%, at Bank Rate + 3% | 10%, at MCLR + 1.25%, compounded annually |
| After completion | Maintenance Period of 5 or 10 years, paid as a yearly percentage | Operation Period of 15 years, O&M Payments with the annuities |
| Defects liability | 5 or 10 years by pavement type, 3 years for BC renewal | 120 days after Termination, with 15% of the last annuity retained |
| Change of Scope | Capped at 10% of Contract Price | No stated cap; 2% of the bid to match a competing bidder |
| Price adjustment | Component weightages on WPI, CPI, bitumen and HSD | A single Price Index Multiple applied to every invoice |
| Force Majeure exit | 60 days within a continuous 120 | 180 days within a continuous 365 |
| Disputes | Conciliation, then arbitration under the A&C Act | Independent Engineer, Dispute Resolution Board, Conciliation Committees, then arbitration |
| Delayed payment | Base Rate + 2%, at quarterly rests | Bank Rate + 4% |
Figures shown are those printed in the standard forms. Several — the 650th and 550th day, the 15-year Operation Period, the number of annuity instalments and the security amounts — appear in brackets in the originals and are fixed project by project in the executed agreement. Each navigator flags these where they arise.