Study on Different Types of Tenders, Tender Qualification/Processing, Quantitative Techniques for Tendering, Planning and Monitoring
Abstract
Indian construction industry has played a vital role in the process of economic transformation and furtherance for over five decades and is the primary input for the socio-economic development of the country. Increasing complexity in design and involvement of numerous stakeholders in modern construction projects are huge challenge for both clients and contractors to meet criterion of skills and capabilities required to successfully deliver a project at bidding stage. Implementation of HAM (Hybrid- Annuity Model) to revive investments in road infrastructure projects, HAM has seen good initial success. About 30 highway projects have been awarded under HAM by the National Authority of India (NHAI) at a total cost of about 28,000crore. Half the projects awarded in HAM. This paper summaries the key changes and features which are brought under the new arrangement and provides a comparison with pat models.
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Introduction
In India, road projects are awarded via one of the three models: Build-operate-transfer (BOT)- Annuity, BOT-Toll, EPC(Engineering, procurement and construction) contracts. After the BOT model of public private partnership (PPP) an advanced version of Model Concession Agreement (MCA), presently called as Hybrid Annuity Model is paving way for road projects. The Hybrid Model is supposed to be win-win situation for the Government and Developers. The government is expected to fund up to 40% of the project cost while remaining 60% to be funded by the private player, and thus easing the financial burden on the exchequer as well. This comes as a welcome step in the situation of dismal performance of highway construction projects awarded under MCA.
Conclusion
On collecting data from all aspects of contracts along with their merits and demerits from past years. Among all type of contracts HAM [Hybrid Annuity Model] is the best one to get competitive in present up growing world economy. Is a mix of both EPC (Engineering Procurement and Construction) and BOT (Build Operate Transfer) models? Under EPC model, NHAI pays private players to lay roads. The private player has no role in the road’s ownership, toll collection or maintenance (it will be taken by the Government). Under BOT model, private players have an active role they build operate and maintain the road for specified number of year’s say10-15 years. Before transferring asset back to the Government.
Now HAM combines EPC (40 per cent) and BOT (60 per cent). On behalf of the government NHAI releases 40%- 70%of total project cost. All kinds of loan clearance will be taken up by the government. According to different states they were giving % as say in Tamil Nadu is giving 50% as well Karnataka giving 75% (KESHIP) of the total project cost. As per the scope of emergency they were releasing the high percentages. Material escalation will also paid by the government.
From my regarding the HAM method is useful and efficient to attract all competitors in construction industry.