Combining the engineering, procurement, and construction (EPC) and operation and maintenance (O&M) into one package may yield more efficient and cost-effective outputs. On this project, this would have given all the parties a clear understanding of the requirements from the beginning, and risk-mitigation measures could have been built into the contract appropriately. The contractor would also have been particularly vigilant in ensuring the best quality of works during construction. In addition, the bidder would have had an opportunity to come up with more innovative ways of implementation and might have offered a more cost-effective bid. This combination could also minimize any additional due diligence required during the O&M contracting and would result in time savings. However, the concentration and performance risks would need to be mitigated through performance standards and deterrent contractual provisions.
Hairatan to Mazar-e-Sharif Railway Project