DELAY ANALYSIS REPORT
CENTRAL COMPRESSED AIR
STATION (PKG NO.-077)
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Delay Analysis Report
Name of the Contract: CENTRAL COMPRESSED AIR STATION (PKG NO.-077)
Contract Agreement No.:P4/292(77)/99001-R/258/11049243 Dated 27TH July 2011
Contract Value : Rs 18,33,01,727/-(Rupees Eighteen Crore Thirty Three Lakh One Thousand
Seven Hundred Twenty Seven Only)
Name of the Agency : Consortium Comprising M/s Bluestar Limited, Kolkata
&
M/s CICB-Chemicon Private Limited, Bangalore
Type of Contract: Turnkey
Brief Description of the project:
The scope of work of the contractor shall cover engineering/ design, manufacturing, shop testing, painting,
supply, transportation to site, handling at site, erection, testing at manufacturer’s works as well as at site of all
the plant & equipment and connected utilities of compressed air plant, complete civil & structural work on
turnkey basis, actual commissioning, demonstration of performance tests and final handing over of all plant
and equipment with connected accessories.
The compressed air station shall comprise of two nos. (both working) multi stages, integral geared,
horizontally/ vertically split packaged type centrifugal air compressors each of 220 Nm3/ min at 8.0 kg/cm2g
complete with electric drive motor of suitable matching capacity and all its accessories & auxiliaries.
Milestones Dates:
Effective Date of Contract : 27.07.2011
Contractual Schedule Completion : 26.07.2012 (12 Months)
Actual Completion : 14.01.2017
Total Delay :
1. M/s BSL vide their Letters Ref No. SM/BSL/RSP/CCAS/17-18/01 dated 27 th Nov 2017 has submitted
delay analysis report for the above package (Enclosure- I). They have cited many reasons for overall
delay in the part of RSP/MECON. They have claimed a total delay of 1802 days by RSP/MECON.
2. The delays analysis submitted by M/s BSL was referred to MECON vide ref. letter No. Proj/DGM
(P)SS/077/3691 dated 02.12.17. MECON’s reply was received on 17.01.2018, which is placed in the
file.
3. A committee was constituted with approval of Competent Authority to carry out the delay analysis &
to submit recommendations. The Committee Members are as under :-
i) Shri G.Mishra, DGM(MM-Projects)
ii) Shri S.Kumar, Sr.Mgr(F&A-Project)
iii) Shri B.Mallik, DGM(Oxygen Plant)
iv) Shri S.Sahu, DGM(Projects)- Convener
v) Shri S.N.Bhoi, MECON
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3. The scheduled completion of the project was 26.07.2012. Time Extensions were granted to the agency
on many occasions reserving our rights to impose LD on a later date. Commissioning certificate was
issued on 07.03.2017 with effective date as 14.01.2017.
4. The committee met on --.02.17 and had gone through the documents provided by M/s BSL, MECON
and executing department (Project) and observed the followings.
A. Delay due to change in scope from Oxy-II to Oxy-I:
M/s BSL has indicated that initially there was a delay due to change in scope from OXY-II to OXY-I vide
RSP letter No. DGM I/c(P)/MKD/077/2894 dtd. 10th Sep’2011. So there is a delay of 44 days (i.e; from 27 th
Jul’2011 to 10th Sep’2011) which is attributable to RSP.
B. Delay in Transformer Approval:
Delay in finalization of SLD drawing was due to delay in submission of SLD drawing by M/s BSL
It is the responsibility of M/s BSL to supply all the materials as per approved make list. In case, any
item is not featuring in the list of approved make in TS/GTS, it is also the responsibility of M/s BSL
to obtain prior approval from purchaser for additional vendor after submitting credential and other
documents as required by the purchaser.
M/s BSL have requested for approval of additional make for transformer on 20.10.2011. Final
approval of additional make of transformer was given by RSP on 29.11.2011.
It is clear from the above fact that delay in approval of transformer was due to delay in taking prior approval
for additional vendor by M/s BSL which is attributable to M/s BSL only.
C. Delay in HT panel approval due to change in relay features:
Delay in finalization of SLD drawing was due to delay in submission of SLD drawing by M/s BSL.
As per L-2 network start and end date for detail engineering drawing submission by M/s BSL was
28.09.2011 and 25.03.2012 respectively. Actual start and end date for SLD drawing submission by
M/s BSL was 10.09.2011 and 07.12.2011 respectively. Revision 00 of SLD was submitted by M/s
BSL on 10.09.2011 and the same was commented on 23.09.2011. Revision 01 of SLD was submitted
by M/s BSL on 22.01.2011 after lapse of 29 days and the same was again commented on 21.11.2011.
Revision 02 of SLD was submitted by M/s BSL on 07.12.2011 and the same was approved on
13.12.2011.
As per L2 network, start nad end date for detail engineering drawing submitted by M/s BSL was
28.09.2011 and 25.03.2012 respectively. Actual start and end date for knee point voltage and
magnetizing current calculation drawing submission by M/s BSL was 27.01.2012 and 06.08.2012
respectively. Revision 00 of knee point voltage and magnetizing current calculation was submitted by
M/s BSL on 27.01.2012 and the same was commented on 23.02.2012. Revision 01 of knee point
voltage and magnetizing current calculation was submitted by M/s BSL on 02.05.2012 after lapse of
69 days and the same was again commented on 24.05.2012. Revision 02 of knee point voltage and
magnetizing current calculation was submitted by M/s BSL on 06.08.2012 and the same was cleared
on 07.08.2012.
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It is clear from the above fact that delay in finalization of SLD and knee point voltage and magnetizing
current calculation drawing were due to delay in submission of SLD and knee point voltage and
magnetizing current calculation drawing by M/s BSL, which is attributable to M/s BSL.
D. Delay in Billing Schedule Approval:
Delay in finalization of billing schedule was due to delay in submission of billing schedule by M/s BSL.
As per L-2 network start and end date for detail engineering drawing submission by M/s BSL was
28.09.2011 and 25.03.2012 respectively. Actual start and end date for billing schedule submission by M/s
BSL was 02.08.2012 and 12.10.2012 respectively. Initial billing schedule was submitted by M/s BSL on
02.08.2012 and views / observations on the same were forwarded to M/s BSL on 27.08.212. Revised
billing schedule was submitted by M/s BSL on 19.09.2012 after lapse of 23 days. Billing schedule was
again revised by M/s BSL due to their internal reason and submitted on 12.10.2012 after lapse of 46 days
directly to RSP and the same was approved on 23.10.2012.
It is clear from that above fact that delay in finalization of billing schedule was due to delay in submission
of billing schedule by M/s BSL which is attributable to M/s BSL only.
E. Delay in approval of valve make:
Due to non availability/ regret of vendors as per RSP approved vendor list, M/s has requested RSP vide letter
no. SM/SAIL-RSP-CCAS/12-13 dated 07.01.2013 and letter no. SM/SAIL-RSP-CCAS/12-13 dated
20.02.2013 for approval of alternate make of valve. Accordingly RSP has given the approval vide letter no.
DGM I/c (MM) Proj/Vendor Regn./13/807 dated 12.04.2013. The said contract was awarded to Blue Star
Limited on 27.07.2011 and they have applied for vendor approval on 20.02.2013 which is a long gap of
approximately one year and seven months. As the supply of said valve for the package is in the knowledge of
M/s BSL since the signing of contract, such a long delay in applying to RSP for vendor approval is attributable
to M/s BSL.
F. Delay in civil construction of LT transformer cum electrical building due to delayed approval of
foundation drawing and rock breaking during excavation
Delay in civil construction of LT transformer cum electrical building was due to delay in submission of
foundation drawing by M/s BSL.
As per L-2 network start and end date for detail engineering drawing submission by M/s BSL was
28.09.2011 and 25.03.2012 respectively. Actual start and end date for foundation drawing submission by
M/s BSL was 11.04.2012 and 07.11.2012 respectively. Revision 00 of foundation drawing was submitted
by M/s BSL on 11.04.2012 and the same was commented on 14.05.2012. Revision 01 of foundation
drawing was submitted by M/s BSL on 23.07.2012 after lapse of 70 days and the same was again
commented on 16.08.2012. Revision 02 of foundation drawing was submitted by M/s BSL on 30.08.2012
and the same was again commented on 07.09.2012. Revision 02 of foundation drawing was again
submitted by M/s BSL on 26.09.2012 and the same was approved on 08.10.2012. Further, as per MOM
dated 07.11.2012, M/s BSL was agreed to resubmit the drawing for re-approval due to hard rock observed
during excavation. Accordingly, revision 03 of foundation drawing was submitted by M/s BSL on
07.11.2012 and the same was approved and handed over to M/s BSL on 21.11.2012.
It is clear from that above fact that delay in civil construction of LT transformer cum electrical building was due
to delay in submission of foundation drawing by M/s BSL which is attributable to M/s BSL only.
G. Delay in shutdown:
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Delay in shutdown is not attributable to change in scope from Oxy-II to Oxy-I substation as there
would be the same procedure of shutdown in Oxy-II side switchboard as done in Oxy-I side of
substation. The said shutdown was in the scope of M/s BSL. Stage-1 and Stage-2 shutdown were
given after several discussions with the owner department as the existing panels were to be
replaced with new ones in a running plant with important feeders catering mainly to SMS-I and
Oxygen plant. Moreover there was a risk of running the plant with no standby system during
shutdown. Any disturbance in the system would have resulted production loss in these plants. Due
to the same, the shutdown was accorded after several discussions with owner department of RSP.
H. Delay due to non availability of 8kg/cm 2 air header to connect the outlet of compressed
air:
I. Delay in getting of commissioning certificate
J. Design & Engineering
(A) Basic Engineering
As per contract,
As per approved L-2 network, commencement of basic engineering was to start on 10.08.11 and to
complete by 11.12.11.
As per actual, the approval of basic engineering completed on 03.08.2013
So the delay in basic engineering is 598 days ( i.e from 11.12.11 to 03.08.13), which is attributed to
M/s BSL. Considering this delay as initial delay, this will affect all other activities of the project
subsequently.
(B) Detail Engineering
As per approved L-2 network, start date of submission of detailed engineering was on 28.09.11 & to
complete by 09.04.12.
As per actual, the approval of detail engineering completed on 25.09.13.
So the delay in detail engineering is 531 days ( i.e from 09.04.12 to 25.09.13), which is attributed to
M/s BSL. Considering this delay as initial delay, this will affect all other activities of the project
subsequently.
So the overall delay in Design Engineering (Basic + Detail) is 531 days (i.e. from 09.04.12 to
25.09.13)
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Procurement & Supply of materials
M/s JUSCO vide their Letters JUSCO/RSP-084/16-17/153 dated 4 th May 2016 have indicated that an overall
initial delay of 7 months by client for inspection of plant & equipments. (Ref. annexure-2A & 2B)
As per L-2 network, the procurement & supply of plant & equipments for the whole package was to
be completed in between 27.12.10 to 22.07.11. Considering the initial delay of 180 days of
RSP/MECON, the supply should have been completed by 22.01.12.
MECON has indicated vide their letter no vide their letter No 11.Q2.9103.084.01.304 dated
15.10.2016 indicated that their observation on delay in inspection activities will be forwarded shortly.
Subsequently MECON vide email dated Wed, January 18, 2017 4:04 pm that, the delay analysis
provided by them, vide their letter No 11.Q2.9103.084.01.304 dated 15.10.2016 is final. In this letter
they have not considered any delay due to the Inspection of the material. Hence no delay is
considered because of RSP/MECON.
Civil, Structural & allied works
M/s JUSCO Ltd vide their above referred letters have mentioned that an overall delay of 14 months by the
client for delay in design & Engg, disruption of work at OHT & ban of winch machine at site. Also they have
claimed 5 months delay due to nature for execution of Civil, Structural & allied works (Ref. annexure-3)
(a) As per L-2 network, Civil, Structural & allied works for MPH & OHT was to be completed in
between 30.11.10 to 13.12.11. Excavation of foundation for OHT was started on 13.12.10 as per Fax
message from GM (UKP) dated 05.01.11 (Page -11). Water ingress from unknown source was
started from 17.12.10 and arrested on 31.01.11(Page-12 to 15). The unknown source of ingress
water was neither shown in the contractual drawing nor in the safety protocol. Hence the delay of 46
day is attributed to RSP.
In this project, the critical path was the Over Head Tank. For OHT there was a delay in basic
engineering (i.e. P&I, PFD) for 42 days. Further there was a delay in detail engineering (i.e. GA of
OHT) for 22 days. Besides this, there was also a delay of 46 days for disruption of foundation work
due to ingress water from unknown source which was not mentioned in safety protocol. Considering
above, there was a delay of total 110 days in critical path, which is attributable to RSP/MECON.
With this 110 days delay in the critical path, the MPH & OHT should have been completed by
01.04.12.
(b) As per L-2 network, Civil, Structural & allied works for BPH was to be completed in between
14.02.11 to 16.11.11. Considering the start date of detail engg as 16.05.11, the BPH civil activities
should have been started by 19.08.11 & completed by 30.05.12. As the site was handed over on
19.08.11 (Page-25) for civil work .So there was no delay in execution of civil jobs due to RSP.
Considering above, the completion date of overall civil work of ( i.e for BPH & MPH) should have
been completed by 30.05.12 . There is no delay attributable to RSP specifically in civil work.
Mechanical Erection work
M/s JUSCO Ltd vide their above referred letters have indicated an overall initial delay of 7 months by
client/consultant for delay in design & ngg, & finalization location Booster pump house. (Ref. annexure-5)
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The committee observed that as per approved L-2 mechanical erection work job was to start on
22.07.11 and complete by 30.12.11. Considering overall delay of 180 in basic engg, the
mechanical erection should have been completed by 30.06.12 .
Electrical Erection work
M/s JUSCO Ltd vide their above referred letters have indicated an overall initial delay of 15 months by
client/consultant in finalization of feeder for MPH & OBBP BPH. (Ref. annexure-6)
The committee observed that as per approved L-2 electrical erection work job was to start on
15.08.11 and complete by 17.12.11. Considering overall delay of 180 in basic engg, , the electrical
erection should have been completed by 17.06.12.
Trial run & commissioning
M/s BSL vide their above referred letters have pointed out the delay in PAC/commissioning/ completion of
central compressed air station as 326 days. The commissioning test was not carried out due to the followings
as per MOM dated 11th Jan’2016:
1. Leakage of oil in both the compressors
2. Parameters available in Micom/ multifunction meter of HT switchboard are to be shown in HMI of
control room
3. Calibration of flow meter and availabllity of flow parameter in HMI
4. Extrapolated pressure vs flow curve was to be submitted
The time taken by M/s BSL to complete/ comply the above points was pretty long. Subsequently point no.
1,3,4 were complied and Point no. 2 was compiled by M/s BSL just before PG test i.e; on 7 th Feb’18; but the
commissioning certificate was issued on 14 th Jan’17. As per approved L2 network, the finish date of
commissioning was 25.07.2012. The committee observed that as per approved L-2 trial run & commissioning
of the package was to start on 17.07.12 and complete by 25.07.12.
So the above delay of 1630days (i.e. from 25.07.12 to 14.01.17) is attributable to M/s BSL as far as
commissioning of both the compressors is concerned.
Considering overall delay of 180 in basic engg, the trial run & commissioning should have been
completed by 17.08.12.
Note: Moreover, as per contract the following jobs were to be carried by M/s BSL which were subsequently
excluded from their scope due to change in scope as enumerated in A. Delay due to change in scope from
Oxy-II to Oxy-I
1. Supply, replacement, wiring, erection & commissioning of CTs (3 nos. each) for both the feeders
in the existing 33 KV board at CPP-I to facilitate charging of 2 nos. of 16 MVA transformer at
Oxygen sub-station.
2. Supply, laying & commissioning of two runs (2.5 Km each run)of control cables from 33 KV
feeder at CPP-I to Oxygen sub-station in TOP-I. Run 1- 1RX7CX2.5 sq mm and Run 2-
1RX19CX2.5 sq mm.
3. Construction of a new RCC building for housing 2 nos. of NGR
Also due to point no. A. Delay due to change in scope from Oxy-II to Oxy-I, M/s BSL had supplied, erected
& commissioned the connecting bus ducts (2 nos.) between 16 MVA HT transformer to 6.6 KV HT
switchboard of Oxy-I sub-station in place of cable as the connecting media as per contract.
TIME SCHEDULE AS PER APPENDIX-2
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Sl Name of work Commencement Completion (No of Date of Date of
No (No of months months from Start Finish
from effective date effective date
1 Basic Engineering 1 4 27.07.11 26.11.11
2 Detail Engineering 3 9 26.10.11 26.04.12
3 Civil work 4 9 26.11.11 26.04.12
4 (i) Supply/ Delivery Building Steel 5 8 26.12.11 26.03.12
Structures & Sheeting
(ii) Supply / Delivery of Mech. Plant & 7 10 26.02.12 26.05.12
equipments including technological
structures b) Indigenous
(iii) Supply / Delivery of Elect. Plant & 7 10 26.02.12 26.05.12
equipments b0 Indigenous
5 (i)Erection of Mech. Plant & equipments 5 11 26.12.11 26.06.12
(ii) Erection of Elect Plant & equipments 8 11 26.03.12 26.06.12
6 Preliminary Acceptance 11 11 26.06.12 26.06.12
7 Commissioning 12 12 26.07.12 26.07.12
Summary of the project:
Sl Name of work As per approved L-2 Network As per delay analysis
N
o Start Finish Days Finish Total Delay attributed Delay
Date Date Date delay RSP attributed to
M/s BSL
1 Basic Engineering 10.08.11 11.12.11 121 29.02.12 456 180 276
2 Detail 28.09.11 09.04.12 191 25.02.14 1048 180 (Carry forward) 868
Engineering
3 Procurement & 09.09.11 26.05.12 257 30.06.14 1074 180 (Carry forward) 894
Supply
4 Dismantling & 25.08.11 12.06.12 287 14.05.15 1248 180 (Carry forward) 1068
Civil job
6 Mechanical 31.05.12 26.06.12 27 10.12.14 1076 180 (Carry forward) 896
Erection of
equipments
7 Power distribution 02.06.12 26.06.12 25 30.06.14 926 180 (Carry forward) 746
&Electrical
erection
8 Preliminary 29.06.12 26.07.12 28 15.05.15 1183 180 (Carry forward) 1003
acceptance, Trial
run,
Commissioning &
handing over
Observation:
M/s BSL had cited many reasons for overall delay in the part of RSP/MECON. They have
claimed an overall delay of 19 months by RSP/MECON; delay due to nature is 5 months and
rest 15 months are delayed by them.
The contractual completion date i.e 20.02.2012 is after 3 days of trial run w.r.t the approved
L-2 network i.e 17.02.1012. accordingly considering the delay due to RSP/MECON , the
project should have been completed on 20.08.2012 ( 3 days from trial run i.e 17.08.2012)
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Recommendations:
Considering overall delay in all activities, project should have been completed latest by 20.08.2012.
Effective date of Contract: 21.08.2010
Contractual Completion: 20.02.2012 (18 Months)
Actual Completion: 15.05.2015
Total Delay: 1180 days
Delay due to RSP: 180 days -26 weeks- this to be considered as initial delay
Delay due to BSL: 1000 days = 143 weeks
1. Extension of time up to 20.08.12 without LD.
2. Extension of time from 21.08.12 to 15.05.15 with imposition of LD for delay which is 5% of
the Contract Value plus escalation, if any (excluding taxes and duties). (140 weeks @ 0.50%
per week, limited to maximum 5% as per Article 8.1 and GCC 29.2 of the contract)
3. Price Variation is admissible up to 20.08.12.
(G.Mishra) (S.K.Mundra) (D.Rabha)
DGM (MM-Proj) Sr.Mgr (F&A-Proj) DGM (WMD)
(S.Sahu) (S.N.Bhoi)
DGM (Projects) AGM, MECON-Rourkela
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