The Hindu              12.07.2013

Corpn. cancels contract over UGD works delay

Finally, the city residents who faced a lot of hardship
due to poor execution of the underground drainage work may heave a sign
of relief as the Corporation has terminated the agreement with the
contractor for failing to complete the works on time and fulfil the
agreement terms.

The joint venture company,
PSVCPL-BBIPL, Hyderabad was awarded the contract for laying collection
pipelines, constructing manholes and providing house connections for a
total distance of 86.17 km under Package I and 184.82 km under Package
II. The contract was awarded in March 18, 2010 and was asked to be
completed in 30 months and 36 months respectively. The date of
completion of work expired and no works were carried out from December
2012.

Though the corporation issued a final warning on May 15, 2013, only 30 per cent of the total works were completed.

Hence,
with complaints pouring in from people across the city, the civic body
decided to terminate the contract and placed it before the emergency
council meeting held here on Thursday.

The resolution
also said that the loss to the corporation due to cancellation of the
contract could be adjusted by retaining the security deposit of Rs. 2.64
crore provided by the company and also the retention money of Rs. 1.51
crore that the corporation had to pay the contractor. A resolution was
passed to terminate the contract and look for a new contractor to
complete the rest of the work.

Engineers said that a
revised estimate for completing the pending works would be prepared,
placed before the council for getting approval, would be sent to the
government for getting administrative sanction and a government order
would be issued. After that the estimate would be sent to the technical
committee for sanctioning and tender process would be initiated. “It
would take a minimum of six months to resume the work,” engineers added.