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This is an archive article published on February 18, 2016

Contractors placed bids higher than BMC’s estimate

While there was virtually no response for minor nullahs, the contractors who responded for 20 out of 26 tenders for the major nullahs quoted 14-70% above the given estimate

make in india week, BMC, tenders, BMC tenders, mumbai news BMC

Desilting work has been hit yet again in the city as contractors bidding high have managed to derail the tendering process for the second time. While 21 of 45 tenders did not receive any response, for the remaining 24, contractors placed bids substantially higher than BMC’s estimate leading to a likely third round of re-tendering.

While there was virtually no response for minor nullahs, the contractors who responded for 20 out of 26 tenders for the major nullahs quoted 14-70% above the given estimate. In minor nullahs, where rates were 60-90% above the estimate, there were no takers in the western and city zones. Of the five that did get a response, one was disqualified due to lack of experience.

Civic officials stated that such high rates will not be accepted and the contractors will have to either quote a price closer to the estimate or participate in a fresh round of tendering. Storm water drainage officials attributed the poor response to the punitive action against contractors arrested in the de-silting scam.

With the given pace of tendering, the city will not be able to complete de-silting of storm-water drains before monsoon due in four months, they said.

After the poor response this time, the BMC will further ease qualifications in the next round. “According to revised terms in the fresh tenders, contractors with excavation experience will now be allowed to participate,” said Deputy Municipal Commissioner Laxman Vhatkar.

Earlier, experience with de-silting work was mandatory. He added that a decision on the contractors who have quoted rates above the estimate will be taken in the next tender committee meeting held on February 23.

In the last tendering process, contractors had quoted rates between 40 per cent to 300 per cent above the estimate which led to the BMC relaxing terms of required work experience dealing with 30% of the amount of silt required to be removed down to 20%. BMC had also relaxed experience of having handled a financial turnover of 90% in three years to a turnover of 60% in five years.

 

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