Assignment:

Contract administration and monitoring is the most important area of construction management. Contract administration process should start right from the day work is assigned to the company. Discuss any project contract currently in progress with your company and how administration and monitoring is being done. Draw the organization chart for this activity and explain all the functions carried out. Do you think the system is achieving results? Discuss.

Name of the project:

CHENNAI METRO RAIL LIMITED.

Scope of the project:

Chennai is the fourth largest metropolitan city in India. In recent years, the population has risen rapidly and thus required the need for reliable and safe transportation. Currently, the city already has multiple modes of transportation including an extensive bus system run by the Chennai MTC. The transportation network is augmented by the Chennai suburban railway network run by the Southern Railway. Furthermore, the Southern Railway runs the Chennai Mass Rapid Transit system; an elevated metropolitan railway system was sanctioned in 1984 to relieve congestion in central Chennai. Despite the improvement measures that were made, traffic congestion has continued to be an issue for both the residents and the city government.

Project profile:
This project aims at providing the people of Chennai with a fast, reliable, convenient, efficient, modern and economical mode of public transport, which is properly integrated with other forms of public and private transport including buses, sub-urban trains and MRTS. A Detailed Project Report (DPR) relating to the Chennai Metro Rail Project was prepared and submitted by the Delhi Metro Rail Corporation Limited (DMRC) who have successfully designed and implemented the Delhi Metro Rail Project. The alignment and stations given above are tentative and subject to change during detailed design and execution. The DPR envisages the creation of 2 initial corridors under the proposed phase1 of the Chennai Metro Rail Project as shown below: Corridor Washermanpet to Airport Chennai Central to St.Thomas Mount Total Length 23.1 kms. 22.0 kms. 45.1 kms.

Cost of the project:

The Financial Internal Rate of Return (FIRR), the completion cost without taxes and with central taxes has been calculated by taking escalation factor @ 5% PA. It has been assumed that Government of Tamilnadu will exempt or reimburse local taxes. The total completion costs duly escalated and shown below:
Financial Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total Without Taxes & Duties With Central Taxes only

(in crore )
533.00 2971.00 3080.00 2705.00 1544.00 1621.00 613.00

(in crore )
570.00 3279.00 3484.00 3096.00 1767.00 1853.00 701.00

13067.00

14750.00

Planning:
The Chennai Metro Rail is an upcoming rapid transit system in Chennai, Tamil Nadu, India. The Phase I of the project consisting of two corridors covering a length of 45.1 km is under construction. The elevated section of the project is scheduled to be operational by 2013 and the entire project is scheduled to be completed by the financial year 2014-2015. About 55% of the corridors in Phase I is underground and the remaining is elevated. After the success of the Delhi Metro, a similar system has been planned for the city of Chennai by DMRC to the then government of Tamil Nadu. The plan was later dropped in favors of a highly ambitious monorail network, spread over the whole city. Then the government revived the metro rail project to life once again by including it in the 2007-08 State Government's budget, and an amount of 50 crores had been sanctioned for preliminary works which included a Detailed Project Report (DPR) to be prepared by the DMRC Rail Project.

Construction history:
The construction started on 10 June 2009 with the piling work for the elevated viaduct between Koyambedu and Ashok Nagar stretch. Construction is expected to be fully completed by February 2015. The first section to be opened will be on Line 2 between Koyambedu and St. Thomas Mount and this stretch is likely to be in operation by 2013. The construction work on the project was suspended on 9 August 2012, following an accident that killed a worker and injured six others, a day earlier. The work resumed after safety audit across its 32 stations was completed. The project is estimated to cost around 14,600 crore (US$ 2.76 billion) for the two corridors totaling 45 km. However, the previous estimate in 2007 was 9,565 crore (US$1.81 billion). But it is likely to increase by 23% to 18,000 crore (US$ 3.4 billion). The underground tunneling will cost about 300 crores per km, whereas Elevated track will cost about 100 crores per km. The estimated construction cost of Underground and Elevated Station will be 100 crores and 300 crores respectively.

2008:

16 April: Planning commission gives in-principle approval for the project 21 November: Deal signed with Japan Banking Corporation for procuring 59% loan at Tokyo.

2009:

20 January: Tenders floated for Phase I of the Metro project; winning bidder yet to be announced, work to commence in the end of February or beginning of March. 29 January: Chennai Metro becomes one of the fastest projects to get approval from the Economic Ministry, signed for commencement by officiating Finance Minister. 13 February: The Hyderabad-based Soma Enterprise Ltd has been awarded a INR 199.2-crore (INR 1.99 billion) contract in the Chennai Metro Rail Project, marking the start of the work on the project. It has begun construction on the 4.5 km stretch elevated viaduct along the IRR (Inner Ring Road) between Koyambedu and Ashok Nagar. It does not include stations as it would be tendered separately. 10 March: A Five-member consortium led by Egis Rail S.A, France has been awarded the USD 30 million general consultancy contract by CMRL. The other
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members of the consortium are Egis India Consulting Engineers Private Ltd., India, Maunsell Consultants Asia Ltd., Hong Kong. Balaji Rail Road Systems Ltd., India and Yachiyo Engineering Co. Ltd., Japan. 20 May: CMRL started to evaluate the integration of Metro corridor with the planned grade separator at the junction of Arcot Road and Jawaharlal Nehru Road. 27 May: Trial Pile Load Tests are being conducted at three locations in Inner Ring Road (IRR) At Ashok Nagar opposite. 10 June: Deputy Chief Minister of Tamil Nadu Thiru. M.K.Stalin inaugurated the piling work for the construction of elevated viaduct from Koyambedu to Ashok Nagar. 23 July: Pre-qualification tenders invited by EMBYE consultant for the rolling stock. 30 July: Soil tests conducted by DMRC at Wimco Nagar, Periyar Nagar and Neydhal Nagar in Tiruvottiyur for Chennai Metro Extension. 26 August: Tenders invited for the elevated viaducts for the Corridor 1 from Saidapet including station viaducts until OTA and for Corridor 2 from Ashok Nagar including station viaducts until Alandur. 4 September: Pre-qualification tenders invited for underground stations and tunnels. Invite for bids are expected around January 2010. 31 December: Pre-qualification tenders invited for track works (design and build). Invite for bids are expected around May 2010.

2010:

11 January: Pre-qualification tenders invited for power supply system and overhead equipment (design and build). Invite for bids are expected around May 2010. 28 January: Larsen and Toubro (L&T) bags the contract for 9.73 elevated viaducts from Corridor 1 from Saidapet until OTA (5.17 km @ INR 173.30 crores) and for Corridor 2 from Ashok Nagar until St. Thomas Mount (4.56 km @ INR 141.13 crores) valued together at INR 314.43 crores. 12 February: Tenders invited for 10 elevated stations and an integrated viaduct-flyover. 12 March: Tender invited for Koyambedu Depot pre-filling and two PQs invited for Telecom, Platform Screen Doors & Signalling and Lifts & Escalators. 29 March: Chennai Metro Project Phase II receives 2,932.6 Crores loan agreement from Japan. Finance Ministry of India signs agreement with Japanese Ambassador to India Hideaki Domichi.
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19 April: Tender for pre-filling of Koyambedu depot has been awarded to Tantia Construction Limited for 20.52 crores. 22 June: Tenders for 10 elevated stations have been awarded. 5 stations in Koyambedu, CMBT, Arumbakkam, Vadapalani and Ashok Nagar/K.K Nagar as 1 package at a cost of 139.54 crores and another 5 in Little Mount, Guindy, Alandur, O.T.A., and SIDCO as another package at a cost of 94.99 crores have been awarded to Consolidated Construction Consortium Limited. 29 June: Works on Underground sections, underground stations, signaling and telecom, tracks, OHE, etc. would begin before the end of 2010-2011 financial year. 2 August: Rolling stock tenders have been awarded to Alstom Transport S.A & Alstom Projects India Ltd consortium at a cost of INR 1471.3 crores. 42 train-sets of 4-car configuration (168 coaches) is to be procured. The first delivery of cars is expected to reach by end of 2012. The train sets will be equipped with air-conditioned interiors, electrically operated automatic sliding doors, regenerative braking system. 19 August: Phase-I extension will have 2.3 km underground and 6.6 km elevated with 7 stations. 30 October: Metro rail extension to Tambaram would be considered. 2 November: Depot work for Phase I has been awarded to L&T.

2011:

21 January: Rs 449.22-crore contract for design and construction of track works was awarded to a joint venture of L&T and Alstom. Rs.198 crore contract for supply of lifts and escalators was awarded to a joint venture of Johnson Lifts Pvt. Limited and SJEC Corporation (China). 1 February: Transtonnelstroy-AFCONS JV bags two contracts for underground sections with value of Rs 1,567 crore and Rs 1,031 crore respectively. A joint venture of city-based Metro Tunnelling and L&T SUCG bagged the Rs 705.75-crore contract to design and build three underground stations and associated tunnels from Nehru Park to Pachaiyappa's College. 2 February: OJSC Mosmetrostroy-Gammon India JV has been awarded two underground packages for a value of INR 932.88 crore and INR 1,047.42 crore. 22 February: Contract for power supply and overhead electrification (OHE) was awarded to Siemens AG of Germany and Siemens Ltd India Consortium for Rs 305 crore. 3 March: Automatic Fare Collection (AFC) system design-and-build contract to Nippon Signal Co Ltd for 109.88 crores.

7 March: The contract for tunnel ventilation system (design and build) was awarded to Emirates Trading Agency LLC, Dubai and ETA Engineering Private Limited, India consortium for Rs. 241.83 crore. Underground stations air conditioning system contract was awarded to Voltas ltd for Rs. 196.20 crores. 10 August: Contract for Construction of Elevated Station at Meenambakkam, Viaduct and Cut - Cover Tunnel between OTA Station and Chennai Airport Station was awarded to LANCO Infra-tech Limited for 178.94 Cr. 12 September: Work on double-decker structure at Arcot Road100-ft Road at Vadapalani begins. The 4-lane flyover below the Metro will be 700-m long and 18.6-m wide, with 7.5-m wide service roads and 2.5-m wide drainage-cumfootpath on either side.

2012:

22 March: The complex engineering of the Chennai Metro Rail construction.

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7 April: The Madras High Court dismisses a petition filed by the Indian National Trust for Art and Cultural Heritage challenging the demolition of the rear section of the P. Orr and Sons building on Anna Salai. 10 September: The erection of electrical masts on elevated viaduct between Vadapalani and Koyambedu was started. 30 Masts were erected at the site and further erection is going on. In the elevated viaduct, flexible overhead catenary system is adopted. 24 September: The track works for about 3.5 kms between Vadapalani and CMBT stations have been completed. About 2.6 km has been handed over for other system works such as OHE Erection etc. 4 October: Walls are being built below the surface at all underground station sites, including Mannadi, near the high court and Chennai Central, in Egmore, at Government Estate, near LIC, in Thousand Lights, near Gemini Flyover, Teynampet, Chamiers Road, Kilpauk Medical College & Hospital, Pachaiyappas College, Anna Nagar Tower, in Anna Nagar East and Thirumangalam. 6 October: A total of 11 TBMs have been commissioned to bore tunnels along the underground stretch. The first TBM, launched in July, has readied a nearly 100 metre-long tunnel and the second machine will be launched within a fortnight. A total of three TBMs are currently stationed at the May Day Park, Chintadripet. Two Tunnel Boring Machines (TBMs) just arrived from China, will soon begin boring an underground path from Saidapet to Gemini.

18 October: Eight cars shells required for the first two trains is completed and further fitment of cables, pipes, panels and equipments are progressing well in Alstom factory located in Sao polo, Brazil. Mock up model of the passenger saloon and cab is completed in Brazil. The saloon mockup is shipped from Brazil and is expected to reach Chennai by the end of October 2012.

Organizational Chart:

Lines and routes:

As part of the first phase, two metro lines are currently under construction. Line 1 is intended to cover the Anna Salai stretch and corridor 2 is intended to cover Poonamalle High Road and Inner Ring Road.

Line 1 is being extended from Washermapet to Thiruvottiyur as it was originally planned. A detailed investigation is being undertaken by the announcement of Governor of Tamil Nadu.

Line 1:
Underground stations (12): Sathiyamoorthy Nagar, Tiruvottiyur, Washermanpet, Mannadi, High Court, Chennai Central, Tamil Nadu Legislative Assembly, LIC, Thousand Lights, Gemini, Teynampet, and Saidapet Elevated stations (6): Little Mount, Guindy, Alandur, Officer's Training Academy, Meenambakkam and Chennai International Airport.

Line 2:
Underground stations (9): Chennai Central (Interchange), Egmore, Nehru Park, Kilpauk Medical College, Pachaiyappa's College, Shenoy Nagar, Anna Nagar East, Anna Nagar Tower and Tirumangalam. Elevated stations (8): Koyambedu, CMBT, Arumbakkam, Vadapalani, Ashok NagarKK Nagar, SIDCO, Alandur (Interchange) and St. Thomas Mount (Parangimalai)

Stations:
A total of 32 stations have been planned along the two lines. As many as 19 stations are underground and 12 are elevated. Of these, the Chennai Central (Underground) and Alandur (Elevated) are common for both the corridors and serve as interchange stations.

Future expansion: Phase II:

Three lines covering a distance of 63 kilometres have been proposed in the second phase of the network. A detailed project report is to be prepared in a year regarding feasibility of the proposed lines.

Line 3:
Line 3 is envisioned to be a 19 kilometer route with 15 stations from Moolakadai to Thiruvanmiyur. Stations are currently planned at: Moolakadai, Madhavaram, Retteri Junction, Villivakkam Railway Station, Periyar Nagar Bus Terminus, Venus, Perambur, Aynavaram Bus Terminus, Kellys, Purasaiwalkam, KMC Hospital, Egmore, Thousand Lights, Mylapore and Thiruvanmiyur.

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Line 4:
Line 4 is envisioned to be a 22 kilometer route with 8 stations from Moolakadai to Thirumangalam Junction. Stations are currently planned at: Moolakadai, Vinayagapuram/Teachers Colony, Surapet, Redhills, Ambattur OT, Maduravoyil Junction, MMM Hospital and Thirumangalam Junction

Line 5:
Line 5 is also envisioned to be a 22 kilometer route with 8 stations from Mylapore to Poonamallee. Stations are currently planned at: Mylapore, Luz, Teynampet, T Nagar, Vadapalani, Saligramam, Iyyapanthangal and Poonamallee

Takeover of MRTS:
The MRTS, operated by Southern Railway, is proposed to be taken over by the CMRL thereby bringing all the elevated tracks and underground tracks inside the city under one organization. The Chennai MRTS is a well-executed project and is a fully public service oriented enterprise at present. After the merger, it is proposed to replace the current EMUs in the MRTS with air-conditioned coaches with automatic doors.

Programme of completion:
Tentatively, Phase-1 of the project is programmed for completion in the financial year 2014-2015. The physical works are in progress.

Approval of government of India:

The Government of Tamil Nadu has approved in principle the two initial corridors on 7-11-2007. The Government of India has approved the Chennai Metro Rail project on 28-1-2009.

Signing of loan agreement with government of Japan:

The estimated base cost of this project is about Rs.14000 crores, of this, the Central and State Governments together are expected to contribute about 41%. The balance will be met by a loan granted by the Japan International Cooperation Agency (JICA). JICA has since agreed to finance the project and the loan agreement between the Government of India and the Government of Japan was signed on 21-11-2008 at Tokyo.

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Appointment of general consultants:

Chennai Metro Rail Limited has appointed the "General Consultants" (GC) for Phase-1 of the project on 24.02.2009. A five member consortium led by Egis Rail S.A., France has been appointed as General Consultants. The other members of the consortium are (a) Egis India Consulting Engineers Private Ltd., India, (b) Maunsell Consultants Asia Ltd., Hong Kong, (c) Balaji Rail Road Systems Ltd., India & (d) Yachiyo Engineering Co. Ltd., Japan. The General Consultants will assist Chennai Metro Rail Limited in design, supervision, quality control, safety and contract management for the project.

Prime consultant:
Chennai Metro Rail Limited (CMRL) has appointed Delhi Metro Rail Corporation (DMRC) as the Prime Consultant (PC) for Phase-1 of the project. The Prime Consultant will assist CMRL in an advisory role in the execution of the project.

Project Engineer:
Project Engineer is the Key Coordinator between the Client and the Management of the Company. He coordinates regularly with the Project Engineer from the Department (Employer / Client) for all the activities pertaining to the progress of the Project. He is the person who communicates all the matters to the client on behalf of the Contractor through their Project Engineer. He is the sole responsible person for the progress and quality of construction of the Project. He has to make periodical schedules and plan for the resources like material and man-power. Site Engineer: Site Engineer is the person deputed at Site for having a close monitoring of overall activities of the Project and take all the precautionary measures for avoiding delay or hindrance to the work. He does monitor the progress of the Project to proceed as per the schedule with committed Quality. Safety Engineer: Safety Engineer is responsible for the safe progress of the construction as per the guidelines of OHSAS 18001. He has to monitor day to day activities to go in compliance with safety norms. He has to educate the Construction labor and all others concerned in this aspect and should exercise the precautionary measures to avoid the accidents. He should monitor the usage of Personal Protective Equipment by the construction personnel and should make the first-aid kit available at site all the time. He should also make the arrangements for the exit in case of the emergency.
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Supervisors: Supervisor receives the instructions from the Site Engineer and implements the same in the site execution through the construction labor. He controls the construction labor and checks the progress of the work directly and makes note of the daily progress and deviations and brings to the notice of Site Engineer. He helps the Site Engineer in recording the measurements for the preparation of the bills of quantities. He works as a communicator between the Site Engineer and the labor.

Conclusion and suggestion:

The present form of contract agreement has developed in Delhi Metro Rail Corporation over a period of time and it is successful. It is evident from the fact that the projects taken up by DMRC are completed on/before time. This in my opinion is partially because of the clauses added in the SCC for the better quality and the SHE (safety, Health and Environment clauses). But it is sometimes felt by the people administrating the contract that the contact in itself is too time consuming if things start to go wrong. At many occasion a need is felt to bypass the contract to shorten the time. On analysis of the contract agreement it is found that it is lacking a key area i.e. incentive clauses. Incentive clauses are important because pressure and fear (negative forms of motivations) are not always effective. Although the Indian form of contract has achieved a no lose situation but at the same time it is also a no win situation in many cases. We need to include the positive motivation factor to shorten the project time. These clauses can be made in a manner in which they will also reduce the project cost due to shortening of the project time.

References:
- NICMAR publication lesson books on Construction Contract Management - Contract Management in Civil Works Projects V.A. Prakash, NICMAR Publications - Contract BC44, (procured strictly for academic purposes only) from Chennai Metro Rail Ltd.

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