To get the much delayed Santacruz-Chembur Link Road project back on track,the citys development agency has tentatively agreed to hike the contract values of the two companies,awarded the construction contracts,by 30 to 35 per cent.
Following the hike,contractor Patel Engineering,which had stopped work earlier this year due to differences over price re-negotiation,is expected to resume work on the construction of the road in January,said SVR Srinivas,additional metropolitan commissioner at the Mumbai Metropolitan Region Development Authority (MMRDA),the nodal agency for the project.
We are now in advanced stages of negotiation with the contractors. The executive committee is expected to clear the rate hike in its next meeting on January 4, Srinivas said,adding Gammon has nearly 75 per cent of the total civil work on the Santacruz-Chembur Link Road,part of the World Bank-funded Mumbai Urban Transport Project.
The original value of the contract signed with Patel Engineering was Rs 35 crore,while the contract with Gammon India was worth Rs 79.9 crore. The MMRDA had in the past doled out a 15 per cent hike to both these contractors due to the delays and rising cost. Gammon had already spent Rs 113.1 crore as of April,data obtained from the MMRDA shows.
The most recent hike will increase Patels Engineering contract to between Rs 52.26 crore and Rs 54.27 crore,while Gammons contract will go up to Rs 119.47 crore to Rs 124 crore.
The contract value is to be revised as some column designs have changed since the last revision leading to increase in quantities of construction materials and the cost of mobilising machinery and manpower has also shot up. The delay caused by the various issues of rehabilitation of project-affected people is another reason for the rate hike.
We had appointed a committee to look into the cost escalation and they gave us a report providing various options, Srinivas said. We negotiated with the contractors to work out the best possible solution.
The MMRDA is now aiming to complete the Santacruz-Chembur Link Road by December 2012.