REVISED SOP FOR EXTENSION OF

TIME

October,2022

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REVTSED SOP FOR PROCESSING OF EXTENSION OF TIME (EOT)
CASES IN NTDC CONTRACTS (2022)

1. PREFACE

1.1 NTDC is dealing with multiple conhacts. Claims of EOT from tlte contractors
/ consultants are quite common. The existing SoP does not address the issue
and also in conflict with different contract provisions. Resultanfly, the cases are
piled up for years making it stagnant to close the contracts/ projects.

1.2 Guidelines mentioned in this SoP shall be followed to deal with claims of the
contractors / consultants.

1.3 This SOP shall supersede the existing SoP issued vide Company Secretary
NTDC Notification No. C.S./NTDC/1279-83 dated 13-10-2010 approved by
Board of Directors of NTDCL in its 50ft meeting held on 30-09-2010 for
handling the cases for extension of time for contractors/ supplier.

t.4 Wherever any provision of this SOP shall be in conllict with provisions of any
applicable guidelines of Intemational Financial Institutions (IFIs), or any other
applicable Statute / Law or Rule, the provisions of such applicable guidelines,
laws or rules shall prevail.

1.5 This SOP shall become a part of the future Bidding Documents or its provisions
may be incorporated in the Bidding Documents.

t.6 The procedures in this SoP are categorized for different tlpes of Contracts i.e.,
Supply Contracts, Construction/EPC Contracts and Consultancy Services.

1..7 This SoP does not in any way impact the rights/obligations of the parties
defined in the contract agreements unless amended with mutua1 consent of the
parties. Accordingly, the contract provisions dealing with the claims
management will hold prevalence over this SoP in case of any contradictions.

1.8 The glossary of terms is attached as Annexure-A for reference: -

A) FOR SUPP LY CONTRACTS

1. In case of an event due to any act of prevention by the Purchaser or any

other causes specified in the Contract, the Contractor shall submit a Notice
describing the complete details of such act alongwith documentary
evidence and reference to the provisions of the Contract Documents. Such

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 Notice shall be submitted within 28 days or any other time agreed between
the parties, of occurrence of each event.

2. The final request for Extension of Time (EOT) with detailed particulars will
be submitted by the Contractor within 42 days from the date of delayed
event attributable to the Purchaser as per Contract, afterwards, the case will
be considered as barred by time. Only those reasons of delay will be
considered for which timely Notice was served by the Contractor.

3. The request of the supplier / Contractor for EOT shall be forwarded to

Design Engineer, CFO NmC and/or any other concemed formation, by
the Purchaser for their comments / recommendations within 07 days from
receipt of the claim by the supplier. The formations shall finalize their
comments within 21 days of receipt of such request.

4. Afterwards, the Purchaser shall prepare a consolidated case along with

detailed assessment of the view taken by stakeholders and its
recommendations within 21 days and put up the same for approval of the
Competent Authority of Procuring Agenry in line with powers identified
in Table-1.

5. The Competent Authority of Procuring Agenry so defined by the Table No.

01 wiII decide the case within 07 days of its submission.

6. L: case MD (NTDC) is the competent authority, case will be referred to

Scrutiny Committee within 7 days of receipt of the case / recommendations
from the Purchaser which shall be decided by the Committee within 21 days
and will be approved by MD (NTDC) within 07 days of the receipt of report
by the Committee.

7. If the Purchaser does not conclude the case within 3 months from the date
of receipt of Claim from the Supplier or as otherwise agreed between the
parties, the claim of the Supplier shall be deemed as approved

Table 1: Powers to ant EoT in S I terial Procurement Contracts

Extension of Time (EOT) under Supply Contracts (Awarded by BOD)

Sr, Nature of Power Competent Days

No. authority
(') In case, the EoT Managing Director Full Power
(ii) does not involve Dy. Managing Equal to scheduled delivery period
additional Dtector mentioned in the Contuact upto
cost except non- maximum of 365 days for each
recovery of Contract.
(ni) Liquidated General Manager or Equal to 1/2 of scheduled delivery
Damages. equivalent period mentioned in the Conhact
upto maximum of 90 days for each
Contract.

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 (i") Chief Engineer or Equal to 1/4 of scheduled delivery
equivalent period mentioned in the Contract
upto maximum of 45 days for each
Contract.
(") In case of EoT Managing Director EOT upto limits specfied above and
involves additional cost of up to 15% of
additional cost Contract Price.
Board of Directors In all other cases.

Grant of Extension of Time (EOT) beyond scheduled completion of contracts (In

case of Conkact is not awarded by BOD)

Sr. Nature of Power Competent Days

No. authority
tlt In case of EOT The same officers Full Powers
does not involve who sanctioned the
any additional tender for award of
cost except non contract.
recovery of
liquidated
damages
(ii) Lr case of EOT Managing Director Upto 15% of original Contract price
involves
additional cost

Note: - Sarne procedure as delineated above shall be applicable in case of

multiple claims for EOT, however, competency shall be determined on
aggregate basis.

B) FORCONSTRUCION/EPCCONTRACTS

1. The Contractor shall give a Notice to the Engineer with a copy to the
Employer, describing the event or circumstance (specified in the contract as
Employer's risk or exceptional event or otherwise defined) giving rise to the
delay for which the Claim is made as soon as practicable, and no later than
28 days after the Contractor became aware, or should have become aware,
of the event or circurnstance.

2. If the Contractor fails to give a Notice of Clain within this period of 28 days,
the Contractor shall not be entitled to any EoT, and the Employer shall be
discharged from any liability in connection with the event or circumstance
giving rise to the Claim.

3. Within either: (i) 84 days after the Contractor became aware, or should have
become aware, of the event or circunutance giving rise to the Claim, or (ii)
such other period (if any) as may be proposed by the Contractor and agreed
by the Engineer the Contractor shall submit to the Engineer a fully detailed
Claim.

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4. If within this time limit the Contractor
fails to submit the detailed statement,
the Notice of Claim shall be deemed to have lapsed, it shall no longer be
considered as a valid Notice.

5. If the event or circumstance giving rise to a Claim has a continuing effect:

(a) the fully detailed Claim submiued shall be considered as interim; (b) in
respect of this fust interim fully detailed Claim, the Engineer shall give
hisr/her resporse on the contractual or other legal basis of the Claim, by
giving a Notice to the Contractor within the time limit described below; (c)
after submitting the fust interim fully detailed Claim the Contractor shall
submit further interirn fully detailed Claims at monthly intervals, giving the
accumulated extension of time claimed; and (d) the Contractor shall submit
a final fully detailed Claim vrith a copy to the Employer within 28 days
after the end of the effects resulting from the event or circumstance, or
within such other period as may be proposed by the Contractor and agreed
by the Engineer.

6. This final fully detailed Claim shall give the total amount extension of time
claimed.

7. lVhen determining each EOT, the Engineer shall review previous

determinations and may increase, but shall not decrease, the total EOT.

8. If a delay caused by a matter which is the Employer's responsibfity is

concurrent with delay caused by a matter which is the Contractor's
responsibility, the Contractor/s entitlement to EOT shall be assessed in
accordance with the rules and procedures stated in the Special Provisions
(if not stated, as appropriate taking due regard of all relevant
circumstances) .

9. The Engineer shall give the Notice of his/her determination within 90 days
or within such other time linit as may be proposed by the Engineer and
agreed by both Parties. \4rhi1e reaching at fair determinatioru the Engineer
may seek the comments of Design office, CFO, Supervision Consultant or
the Employer about the relevant events related to their offices.

10. The Engineer shall seek corrments from the relevant offices, if required,
within 7 days of receipt of Claim of the contractor. The concemed
formations will reply within 21 days of receipt of request from the Engineer.
The Engineer shall make its determination and seek consent of the
Employer if required within 21 days. Accordingly, approval of the
competent authority as mentioned in Table-2 below/ notification of
determination shall be made within 7 days with a copy to MD G\I[DC).

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11. Cases falling under comPetency of MD (NTDC) and BoD (NTDC) shall be
forwarded by the Engineer for approval of MD (NTDC) which shall be
referred to Scrutiny Committee within 7 days of its receiPt. The Committee
shall decide within 21 days and will be approved by MD (NTDC) within 07
days of the receipt of report by the Committee.

12. If case is not approved /

reiected within above said time or as otherwise
specified / agreed between the parties, the clain of the Contractor shall be
considered as deemed approved except where approval of BoD (NTDC)
would be required. The case will then be decided within a reasonable time.

13. The following aspects shall be observed while making determinations of

EOT:-

a) The Contractor shall keep contemporary records as may be

necessary to substantiate the Claim.

b) Reasons for extension with proper justificatiory apportioning

responsibility and all necessary documents should be attached
with every proposal while seeking EoT.

c) For extension due to obstruction on account of Right of Ways

(ROW) and or delay in removal of encroachments, necessary
jusffication with utilities location/extent of obstruction vis-)-vis
work program of Contractor will be required. Separate
information will be required for each item/company.

d) Field formations will keep an up to date chart which must

indicate that when ROW has started on any location and when it
was resolved in order to avoid any confusion/conflict. Such
charts must be signed by both NTDC and the Contracto/s
persorurel.

e) For extension against delay due to revision in scope, detailed

information conceming original and revised scope will be
required.

f) Reasons for delay will also include information concerning

skilled manpower, machinery & equipment, etc' deployed by the
Contractor at site. ln case of non-deployment of the required
/
resources as per Contract, the Engineer Project Manager may
tum down the request of the Contractor.

g) Engineer can allow extension of upto 60 days for each event

(either interim or final), however if cumulative of such multiple
events exceeds 60 days' time, then report of such approval shall

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 be communicated to next higher authority with proper
justifications for reporting and control purposes'

h) The Engineer shall make distinction between excusable, non-

excusable, critical and non-critical delays (events delaying the
excusable delays
Progress of subsequent activities). OnIy critical
give an entitlement to an extension of Time without imposition of
Liquidated Damages.

i) The Engineer shall approve baseline schedule and shall ensure

timely iubmission and updates of the progress schedules- /
provisions of the
Program by the Contractor as Per relevant
Conbact.

L4. After approval of extension of time in pursuance of below mentioned

po*"rt, ihe Engineer shall notify the extension of time (both Interim and
Fmug to the Contractor, Employer and other concerned offices along with
reasons.

15. The Engineer shall make his deternrination after due consultation with the
Employer and the Contractor and shall notify the Contractor of the
determination, with a copy to the Employer.

16. The Engineer will maintain a log/register for EoT determinations made
during currency of the Contract alongwith Proper reasons/iusffi91ti1n1
-substantiated
dully by documentary evidence' The detail of all EoT
submittals/ determinations and subsequent changes to the schedule shall be
made part of Project Completion report.

The followings shall be competent to grant approval of time extension cases:

Table 2 Powers to Grant Extension of Time in civil wotks/EPQffurneky Contracts

Extension of Time (EOT) under Civil Wor ty'ffC/oesig+ Supply and Installation
Contracts (Contract is Awarded by BOD)
Sr. Nature of Power Competent authority "Days per event/cause
No.
(i) Managing Directot Upto 365 days
Power to Grant Extension
l1 of Time and/ or for Director U 180 s

111
interim determination of General Mana U to 720
(i") Extension of Time in cases Chief Engineer/ Project Upto 60 days
of events Engineer
If extension of time does
not involve any
additional cost excePt
non recovery of
liquidated damages

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(v) In case of EoT involves Managing Director EOT upto 355 days and
additional cost excePt non additional cost of up to
recovery of liquidated 15% of Conhact Price.
damages and price Board of Diectors ln all other cases.
adjustment
Grant of Extension of Time (EOT) beyond sche duled completion of contracts (In
case of Contract is not awarded by BOD)

Sr. Nature of Power Competent authoritY Days

No,
(,) In case of EOT does not The same officers who Full Powers
involve any additional sanctioned the tender for
cost except non recovery award of contract
of liquidated damages
(ii) Managing Director Upto 15% of original
In case of EOT involves
contract
additional cost
Note Aforementioned powers con be exercised by'The Enginee/', "Project Manogef', "EmPloYer" or onY
other person designoted fot the purpose in the Controct ond in occordqnce with the Procedures
mentioned in the Controcts.

* powets specilied in above toble con be exercised Jor interim os well os finol determinqtion oI
The
extension of time cose, However, in cose some event hos continuing effect, competency will be
determined on oggregdte / occumulative bosis.

c) FORCONSULTANTS

1. If the services are imPeded or delayed by the Client or his Contractors so as

to increase the scope, cost or duration of the Services: -

(a) the Consultant shall inform the Client of the circumstances and
probable effects;
(b) the increase in scope and/ or costs shall be regarded as Additional
Services; and
(c) the time for completion of the Services shall be increased accordingly

2. The Consultant is bound to notify the Client of his claim giving rise to the delay
for which the Clairn is made as soon as practicable, and no later than 28 days
aJter the Consultant became aware. or should have become aware, of the event
or circumstance.

3. \ /hile submitting the case for EoT, Consultant is required to elaborate reasons
for extension, rational and acfual status of utilization of man months with
proper justificatiory apportioning responsibility and all submit all necessary
documents.

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4 lllhile determining Extension of Time for corsultanry services, the client shall
take into account the status of project and rational for any extensions glanted to
the Contractor.

5. The Client shall seek comments / recommendations from project office/ Ploject
Manager or any other relevant office within 07 days of receipt of Claim from the
Consultant. The concerned office(s) shall reply within 21 days of receipt of letter
from the Client.

6. The Client shall arrange approval from the competent authority as per Table-3
below and will make its determination within 21 days from receipt of response
/ recommendations from the stakeholders.
7. Lr case MD (NTDC) or BoD (NIDC) is the competent authority, case will be
referred to scrutiny Committee within 7 days of its receipt from the Client
which shall be decided by the Committee within 21 days and will be approved
by MD (NTDC) within 07 days of the receipt of report by the Committee'

Table 3: Powers to Grant Extension of Time in Consultancy Contracts

Sr.# Nature of Pozoer Competent Peiod

Atthoity
(i) Grant of EOT in Managing Director Full Power.
consultanry contract, Dy. Managing Up to a maximum of
where no additional cost Director 75% ot oiginally
is involved ie. (Lunp contract pedod but
sum Contracts with or not exceeding 1 (One)
without price adjustment Year
provisions). General Manager Up to a maximum of
50% of originally
contract period but
not exceeding 9
(Nine) montfu
(ii) *Grant of EoT in Managing Dtector Upto original conuact
consultanry contract period but not
where additional cost is exceeding one year.
involved. i.e. (Iime based Dy. Managing Upto 1/2 of original
Conbacts with or without Director contract period upto 9
price adjustrnent (Nine) montls.
provisions). General Manager Upto 1/4 of original
conbact period but
not exceeding six
months.
*While ansifuing comPetency, tlu EoT claim zuithout ast impliution shall
not be taken into account. GM will be competent to accotd approaal for any time
to ithout co s t impli cation.

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 Note: - Sane procedure as delineated abooe shall be applicnble in cne of maltiple claims
aggregate basis'
for EOT, hotoeoer, competuncy shall be detetmircd on

NOTES:
(0 The officer awarding EOT shall also notify its determination to the
Employer, concemed General Manager, Deputy Managing Director (Asset
Development & Management) and Managing Director for information'
Managing Director (NTDC) may, however, refer any case to Scrutiny
Comrrrittee for internal control purposes.

(ir) If totat delay in completion of project with reference to scheduled

completion date is worked to be more than 365 days, a consolidated case
-be
will submitted to EOT Scrutiny Committee (which will act as NTDCs
Change Control Board) for detail assessment of the delays, compiling
lessons leamt (if any) and fixing responsibility.

(iii) In case of any material breach, corrupt and fraudulent practices or

misrepresentation, the Contractor shall be liable for damages/penalty even
if EOT is granted according to above provisions.

(i") Each case for Extension of Time falling in the competency of MD (NTDC) /
BoD (NTDC) is to be approved after vetting by the EOT Scmtiny Committee'
(The members of the iommittee should be independent from the offices of
Employer/Engineer/Project Manager and Design Engineer)' Following
Committee is proposed for scrutiny of cases where required: -

GeneralManager(PerformanceAssessment) Convener
Chief Engineer (Reliability & Compliance) Member
Chief Engineer (Contract Management) Member
CFO or his/her authorized Representative Member
CLO or his/her authorized Representative Member

(MD (NTDC) may add any member or Committee may co-oPt the members
with tiie consent ot UO lNmC;. Chief Engineer (EHV/Project Delivery North
/ South will act as co-opted members/ departmental representative for
technical support and assistance to the Committee).

(") In such cases where case is deemed approval due to delay on part of the
purchaser/ Employer, ftrutiny Committee and / or any other office,
di".iplioury action will be taken as per E&D Rules against the person
responsible.

(".) While claiming EoT by the Contractor / Consultan! comparison between

plamed and actual progress will be presented.

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("ii) It willbe binding to provide quantification against each delay by the
contractor / consultant.

(viii) If Contract allows timelines regarding submission and approval of EOT

cases which are different from ones mentioned hereirL then the timelines
grven in the contract shall prevail. The Engineer/Project Manager shall
insure that the determination/response is finalized and conveyed within
the timelines stated in the Contract.

(ir) Realistic schedule must be given in the bidding documents. The Program/
/
schedule should be approved by the Engineer Program as baseline
schedule which shall become reference document for determination of EoT
claims. The Contractor shall at all times made his reasonable efforts to
minimize the delay in performance of his obligations under the Contract'

(r) If NTDC has to provide material from their own stores, then the timelines
for supply of material should be mentioned so that bidder / contractor
considers the same while preparing their construction schedule.

(xi) The Engineer shall keep the Employer informed about status of submission
of EOT requests by the Contractor and its determination thereof to avoid
unwarranted imposition of Liquidated Damages to the Contractor.

(xii) The Liquidated Damages once deducted shall not be reimbursed without
approval of Managing Director (NTDC) and approval of EOT.

(*iii) If any / /
case of Supplier Contractor Consultants shall be pending before
the Employer EngSneer Project Manager for determination, Liquidated
/ /
Damages shall not be deducted till its determination. Engineer/ Project
Manager shall keep the Employer informed about such cases'

(xiv) The Supplier / Contractor shall not stop the delivery of the material and /
or r.rspend / slow the Progress at site as the case may be, merely based on
their pending Claim for determination. In such cases, delay shall be
attributable towards their account. (Similarly, the Consultants shall not
suspend their work based on aforementioned grounds).

(*u) Regular reporting of the projects shall be made to the BoD (NTDC) either
through Dashboard and / or any other format desired by the BoD Of-fDq'

(xvi) Monthly progress review meetings shall be conducted by DMD (AD&M)

with concerned formations, where, status of cases for pending EoT claims
as well as new schedules (in case of EoT granted to the contractors) shall
also be discussed along with remedial and risk mitigation measures.

(xvii) This SoP shall be subject to review by the management after one year and
any changes made in the SoP shall be conveyed to BoD (NTDg.

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 Annexu:e-A

1. "Procuring Agency" stands for "National Transmission and Despatch

Company (NTDC) Ltd."

11. "Project Authority/ Engineer / Project Manager" Any office or Consultant

representing the Procuring Agency for onsite execution works and project
management in role of "Engineer", "Project Manager" or "Employels
representative etc. defined in the contract.

111. "Purchasey'Employey'Client" The office representing the "Procuring Agency"

in executing the procurements and signing of Contract Agreements.

lV. "Design Engineer" The NTDC office or independent consultant responsible

for design suppot to the project authority in respect of
reviews/ approvals/ release of drawings etc.

v "Project Supervision Consultant" Any independent consultant hired to

augment the capacity of NTDCs project authority for supervisiory repolting
review and evaluation of project's activities.

vl "Contemporary records" means records that are prepared or generated at the

same time, or inmediately after, the event or circumstance giving rise to the
Claim.

vii. "Day" means a calendar day

viii. "Month" is a calendar month (as per Georgian calendar)

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