The Times of India   22.08.2012

Panel to reject proposal on contracts

The standing committee is all set to reject the civic administration proposal to award contracts for petty civic works to 31 contractors.

The present contract of 110 petty civic work contractors will expire in September, after which the administration had planned to allow the recently finalised 31 contractors for ward-level petty civic works. It had also planned a ‘viability study’ — aimed at verifying whether the contractors would be able to complete the work with their estimates — of the low rates quoted by contractors for petty civic works contracts in 24 wards and at four hospitals in the city.

Standing committee chairman and Shiv Sena corporator Rahul Shewale said, “There is a majority opinion in the committee that the viability test is not the correct way to determine the capability of these 31 contractors. They had bid at about 60 per cent low, which will be difficult to execute. Also, only 31 contractors to work in 227 wards is a very difficult task. The older norm of 110 contractors was appropriate; it should be brought back.” He said each contractor would have to overlook works in eight-nine wards now.

Leader of Opposition and committee member Dnyanraj Nikam said, “It is not practically possible for 31 contractors to handle all 227 corporator wards. This would result in a burden for them. Also, the quality of work and time taken to finish the work will suffer.”

The renewed civic works contracts were put on hold in June this year as BMC officials were unsatisfied with the justifications presented by the 31 shortlisted contractors for the abnormally low bids in the recently floated tenders. Despite cutting down the number of contractors from 110 to 31 to curb malpractices at ward-level, the contractors bid nearly 60 per cent lower than the market rate, raising concerns about the quality of work.

An internal note circulated by chief accountant (finance) Ram Dhas, in April this year, had accused the ward-level contractors of siphoning off BMC money by getting work orders for works not required and doing shoddy work.