ERA imposes Rs 2 cr penalty on contractor for missing deadline

Excelsior Correspondent

SRINAGAR, Jan 31: Jammu and Kashmir Economic Reconstruction Agency (ERA) has imposed a penalty of Rs 2 crore on the contractor, M/S Simplex Infrastructure Limited (SIL), executing work on the Jehangir Chowk-Rambagh Flyover for missing deadline.
In a statement, ERA said M/s SIL has been penalized for its failure to complete the Phase II of Rambagh-Alochibagh stretch of the flyover.
ERA Chief Executive Officer, Dr Raghav Langer said that as per the revised time schedule submitted by executing agency it had to complete the structural portion of 2nd phase of the flyover by 31 December 2018.
“However, the same has now got delayed till end of February 2019 due to sub-optimal manpower, material and machinery deployed by the contractor,” he said.
According to him the strict monitoring of milestones for the mega project is being done on a continuous basis and the contractor shall be penalized under relevant sections of contract agreement for delaying the work.
Last year in October, the contractor has already been penalized with a penalty of Rs. 1.25 crore.
CEO J&K ERA has also directed the project staff to impose employer’s claims under relevant clauses on the contractor for delays in the project and additional burden being put on the State exchequer on account of salaries of employees and extension of tenure of the Design and Supervision Consultants deployed on the project by Government.
It said that it is constantly engaged with the contractor to ensure that the remaining structural works that include erection of girders, laying of deck slabs, retaining walls, etc. on 3rd phase of the flyover from Alochibagh to Jehangir chowk gets completed as per agreed timelines.
“It has been reiterated to the contractor to professionally execute the contract agreement or face the brunt of action in future as well,” it said and added the contractor is supposed to make the complete stretch of flyover motorable by June 2019 as per the submitted work plan.