Their fixed fee contract places minimal responsibility to adequately manage costs, project quality and project management suffer. Indian Railways takes all responsibility for managing the project and their supervisors and engineers are responsible for all risks of the project. RVNL projects use PMC for project management purposes. This is also a problem since the responsibility is shared with a shareholder with minimal stake in the project. The contract value of the PMC will be approximately 3% of the entire project with an even lower security deposit (approximately 10%) if something goes wrong. PMCs are the least likely to lose if something goes wrong in the project. They may lack determination and may not live up to standards. The contractor who has a very high stake in the project is not responsible for problems in managing the project. Conclusion: The DMRC model where the risk is divided equally between the contractor who holds a high stake in the project. The PMC is also capable of correcting contactor execution and making and analyzing project progress
tags