NHAI Clarifies Payment Adjustments and Delay Provisions for HAM Projects

The National Highways Authority of India (NHAI) has issued clarifications on the payment of Bid Project Cost (BPC) installments, preceding the Payment Milestone, in cases where Project Milestones are delayed during the construction period.

• • Clause 23.4 – Payments During Construction Period: Payments for milestones are independent of Project Milestones listed in Schedule-G and are instead based on the physical progress achieved and are adjusted for the Price Index Multiple (PIM). The clause is independent of Clause 12.3.2.
  • Clause 12.3.2 – Damages for Delay: If a Concessionaire fails to achieve a Project Milestone within 90 days of the scheduled timeline, it becomes liable to pay damages as specified under Clause 12.3.2.

Hence, as clarified, the physical progress may not align with the Project Milestones defined in Schedule-G. This clarification is not applicable to projects where the Scheduled Completion Date is delayed beyond the stipulated timeline.