Independent Engineer (IE)

Introduction :

While preparing the draft Concession Agreement for any project, the Procuring Entity shall specifically consider the need to appoint an Independent Engineer for the project and if considered necessary, include necessary provisions in the Agreement.

Description:

1. Role and Functions of the IE:

  • (a) Review of the Drawings and Documents;
  • (b) Review, inspection and monitoring of Construction Works;
  • (c) Review, inspection and testing of Civil Works, Plant and Machinery;
  • (d) Conducting Tests on completion of construction and issuing Completion / Provisional Certificate;
  • (e) Review, inspection and monitoring of Operation and Maintenance (O&M);
  • (f) Determining the costs of any works or services and / or their reasonableness;
  • (h) Determining the period or any extension thereof, for performing any duty or obligation; and
  • (i) Assisting the Parties in resolution of disputes.

Relevant Clauses:

TNTIT(PPP) Rules, 2012
Rule 46
Appointment and Role of Independent Engineer.

(1) While preparing the draft Concession Agreement for any project, the Procuring Entity shall specifically consider the need to appoint an Independent Engineer for the project and if considered necessary, include necessary provisions in the Agreement.

(2) The Independent Engineer’s scope of work shall be specified in the Concession Agreement and shall inter-alia include:

(a) Review, inspection and monitoring of construction works, examination of the designs / drawings and conduct of tests;

(b) Issue of progress reports and completion certificates during and after completion of the construction period;

(c) Review and inspection of the operations and maintenance arrangements and monitoring compliance with the performance and maintenance standards, during the operations period;

(d) Identifying delays and lapses that require action on part of the Procuring Entity for enforcing the agreement terms;

(e) Determining the reasonableness of costs for any works or services, as required under the Concession Agreement;

(f) Determining the period or extension thereof, for performing any duty or obligations, as required under the Concession Agreement;

(g) Carrying out such responsibilities as are assigned by the Procuring Entity

(3) The Independent Engineer shall prepare and submit to the Procuring Entity a monthly progress report.

(4) An indicative scope of work for the Independent Engineer is provided for guidance in Schedule-III of the rules.

(5) The Independent Engineer shall, at the close of the Concession Agreement, take stock of the asset to be reverted to the Procuring Entity and submit a report on the same in comparison to the asset handed over for operation at commercial operations date and the value addition made thereon.

Rule 60
Monitoring of Concession Agreement.

(1) Procuring Entity that enters into a Concession Agreement shall make adequate institutional arrangements to monitor the performance of the Concessionaire under such agreement.

(2) Such arrangements shall include the receipt, study and corrective action based on the reports of the Independent Engineer and Independent Auditor.