Breach of Road Maintenance Obligations

The Concessionaire,

Subject: Breach of road maintenance obligations and non-compliance with maintenance requirements (Reg.

Dear Sir,

This refers to the concessionaire’s failure to fulfill its obligations. According to CA, in particular to Project Highway’s O&M requirements during the O&M phase,.

About IE (the brief about the scope and history is optional):. The authority has appointed us as IE for the “operation and maintenance” work mentioned above. According to the 01.1.202x consulting contract executed between IE and the authority, As a result, we started our activities on the project highway as per the terms of reference.

The concessionaire must comply with the contract provisions of highway maintenance requirements.

1. 1. According to the provisions of Article XVIII of the CA, the concessionaire is required to operate and maintain the project.
   2. Schedule-L of the CA and the Operation and Maintenance Manual provide detailed information.
   3. According to Article XVIII, Clause 18.1, the concessionaire’s obligation is to operate and maintain the project highway. operate and maintain it by itself or through O&M contractors.
   4. If necessary, modify, repair, and improve the project highway to comply with the specifications, standards, and other requirements outlined in the CA, as well as good industry practices, applicable laws, and applicable permits.
   5. Under Clause 18.1(v), the concessionaire must undertake major maintenance such as pavement resurfacing, structural repairs, hardware, and other equipment.
   6. Also, under Clause 18.1(vi), the concessionaire has to carry out periodic preventive maintenance on the project highway.
   7. Furthermore, we refer to Section 2.6 of Schedule L of the Concession Agreement. This section outlines the concessionaire’s responsibilities during the O&M stages.
   • The concession agreement’s Sub-Section 2.6.1(a) stipulates that the road pavement should undergo renewal once every five years.
   • The concessionaire had obligations under the aforementioned CA provisions. The concessionaire must carry out significant maintenance tasks, including resurfacing pavements and making repairs to structures, hardware, and other equipment.
   • We expected to fulfill this obligation by completing these works by the end of the 5th year of operation, on or before XX-XX-2024.

Road maintenance obligations breached: Independent Engineer Acts and Deeds

• In this regard, the IE informed the concessionaire via letter no. XX on XX-XX-2024 titled Request for Submission of the Periodic or Major Maintenance Work Program.
• And I asked you to submit the detailed planning w.r.t. BC mix design, collection of materials, plant, and machinery.
• Additionally, they need to organize both skilled and unskilled labor and set up a comprehensive bituminous laboratory.
• Moreover, it is crucial to promptly submit detailed proposals for periodic or major maintenance works.
• Proactive actions from the concessionaire were not taken to fulfill its obligation.
• The concessionaire failed to complete the periodic renewal work within the stipulated contractual timeframe.
• The Independent Engineer had consistently reminded the Concessionaire, via letters Ref-XX, XX, and XX, to act fast in the matter.
• However, the concessionaire did not begin, start, or complete the renewal coat of bituminous concrete.
• The contract requires completion of the bituminous concrete renewal coat within 5 years.
• This is specifically between after the 4th year and before the end of the 5th year following the initial construction (COD).
• There is no provision in the CA whereby periodic repair work or major maintenance can spill over or carry over beyond the 5th year.
• The independent engineer follows up on this issue as per the obligations and scope of the independent engineer’s stipulations in the contract agreement between the authority and the independent engineer.
• Although the independent engineer has been consistently reminding you, as mentioned in Paragraph 8 above, to ensure compliance pursuant to the requirements of the concession agreement,.
• However, you did not fulfill your O&M obligations fully within the specified time and did not comply with the requirements of the provisions contained in Clause 18.1 (v), 18.1 (vi), Section 2.6, and Section 4.3 of the Schedule-L of the CA.

Conclusion

The IE letters substantiate your failure to fulfill your O&M obligations in accordance with the CA’s provisions. As a result, you have become liable for further action due to your non-compliance with O&M requirements.

Breach of road maintenance obligations: Seeking an explanation from the concessionaire

In light of the above facts, please explain why there was such a breach. That means that the renewal coat of bituminous concrete was not finished by the due date. Also, the terms of the agreement say that it could be very hard to keep up with the renewal coat of bituminous concrete by the due date listed in clauses 18.1(v), 18.1(vi), Section 2.6, and Section 4.3 of Schedule-L. This must happen within 5 years, on or before XX-XX-2024, after the initial construction.

Breach of road maintenance obligations: Decision of authority to exercise discretion

If the reasons are invalid, you have the right to take appropriate action for the default in accordance with the contract provisions. Hence, the authority may, without prejudice to any of its rights under this agreement, by notice require the contractor to take reasonable measures immediately for rectifying or removing such hardship or danger, as the case may be.

Thank you while ensuring our best services.