Common Contracts
1 similar Engineering, Procurement and Construction contracts
ENGINEERING, PROCUREMENT AND CONSTRUCTION (EPC)Engineering, Procurement and Construction • January 20th, 2023
Railways had hitherto been undertaking construction projects through the conventional item rate contracts where the Authority provides the detailed design as well as the estimates of quantities for different items of work (Bill of Quantities). Payments to the contractor are made on the basis of measurements of the work done in respect of each item. Experience in railway projects shows that item rate contracts are prone to excessive time and cost overruns due to delays in design and drawing, variation in items and quantities and inadequate fund provisions as allocation of construction risks are largely to the Authority. Considerable time of Project Engineers is consumed in dealing with variations in quantities, introduction of Non-Schedule Items and variation in contract price.
