MUMBAI: The Brihanmumbai Municipal Corporation ( BMC) will conduct a 'viability test' of low rates bid by civil work contract contractors. All the 31 contractors have been instructed to carry out petty civil works at rates quoted by them. The work will be monitored by an external agency-to be finalized in few days-and the civic vigilance department. The two monitoring agencies will submit their reports by August-end.

Municipal commissioner Sitaram Kunte told TOI, "The contractors will be told to complete few works from the civil work contract items; they will be given Rs 5 cr. But they claim that they can finish the work with Rs 2 cr. Let them prove that they can do the work at their rates and I will then take a decision." Contractors must provide supporting documents, with authentic invoices of materials procured. "We will check supporting documents," Kunte added.

Additional municipal commissioner Manisha Mhaiskar told TOI, "We will decide whether to hand over the work to the new contractors after the viability test." The new contractors are expected to begin work in October as the existing batch was given an extension till September. The old contract expired on March 31, but was given two extensions by the civic standing committee. "We will have adequate time for mobilization before the new contractors begin work," added Mhaiskar.

TOI had reported (May 17) that the contractors, known to submit inflated bills for the smallest of projects, had bid abnormally low-40-60%-for petty civil works in 24 wards and at four hospitals. Nearly 116 contractors had bid for the ward-level contracts (2012-14). The maximum low bids were from the eastern and western suburbs (50-60%). In the island city, the bids were a shade better (40-50%).

A note by BMC's chief accountant (finance) Ram Dhas earlier this year to the director (engineering services), additional commissioners and commissioner stated how contractors carrying out petty/minor work were, in connivance with ward staff and corporators, getting budgetary provisions made for unnecessary works.

Former civic chief Subodh Kumar had appointed a two-member panel to overhaul the system, and after this, a slew of measures were introduced. After reducing civil work contracts from 110 to 31, the civic body told contractors to submit bills within 15 days of completion of the work or face a 5% deduction in payment; no payment will be made if he fails to submit them within 45 days.