The Times of India                08.10.2013

E-tendering: Submitting earnest money now must for contractors

GURGAON: After coming across loopholes in the e-tendering system, the municipal corporation has taken certain preventive measures to plug them. It has now made it mandatory for all the contractors participating in the bid process to submit earnest money along with the tender document for any given project. Not only was MCG losing revenue but it also lead to lot of corruption among MCG officials and contractors.

Earnest money is two percent of the total cost of the project and all contractors are supposed to submit this amount. However, recently it was brought to the knowledge of the municipal commissioner that not everyone was paying this amount. Only those contractors who were sure about bagging the contract used to pay this amount while the rest did not bother to do so. Moreover in some cases, when the bidding process was underway and if a contractor sensed that he might probably get the contract, it was then that he would pay the earnest money.

Recently TOI had report about how a road project in Rajendra Park got embroiled in a controversy after a contractor complained to the municipal commissioner PC Meena, that how despite being the lowest bidder he still failed to get the contract. It was in the light of this compliant that the review of the e-tendering process was conducted and the necessary changes have been brought in.

Talking to TOI, the commissioner said that the monitoring of the e-tendering system needs to be strengthened further. "During the review of the entire process it emerged that certain officials were partially trying to manage the show and we have plugged all the loopholes we have come across. Action will be taken against those guilty. It was now been made mandatory for all contractors participating in the bid process to pay the earnest money right at the time of submitting the tender document. The receipt of this amount that can be submitted online or at the citizen facilitation center (CFC) needs to be attached with the document," he said.

The cornered contractors are up in arms against this move and also held a meeting with the commissioner to withdraw this new move. However, their argument was thrashed at the meeting. "They claimed that they are illiterate and do not understand the implications and therefore it should be withdrawn. However, the commissioner did not budge from his position," said a source.