Contractors’ association to approach court as govt clubs multiple tenders

“Traditionally, works under the CM Gram Sadak Yojana ranged between Rs 1 crore and Rs 1.5 crore, allowing small contractors and unemployed engineers to participate. However, the new tenders combine multiple projects, increasing the total cost to Rs 50 to 70 crore. This makes it nearly impossible for smaller players to compete, effectively sidelining them,” Milind Bhosle, president of the Maharashtra State Contractors Association said.

Bhosle also alleged that the consolidation of tenders is intended to simplify the management of a single large contractor at the district level. “The government’s goal is to manage the incoming funds more easily through the clubbing of tenders. We oppose this move and will take legal action,” he added.

On September 19, 2017, the Maharashtra government issued a clarification regarding the Goods and Services Act, 2017, and contractors’ concerns about contract processes and conditions. It stated, “Work should be clubbed only if it involves a continuous length of road. Clubbing should not occur if the works are distinctly apart or on different roads. For maintaining good quality, the minimum road length should be 10 km, and for building maintenance, a single estimate should cover the entire building.”

Following this, the Bombay High Court on September 21, 2018, directed the state government to consult with contractors and ordered the Public Works Department not to combine road tenders. The contractors’ association plans to approach the Bombay High Court, arguing that the state government has disregarded this order.

An official from the Rural Development Department defended the move, stating, “The clubbing of tenders is aimed at ensuring better quality of road work by avoiding fragmented projects. We are not opposed to small contractors, but quality can be better maintained when a single contractor is awarded the work.”