The Hindu      31.07.2011

New schedule of rates for civic works adopted

The Chennai Corporation Council on Friday passed a resolution adopting the new schedule of rates, announced by the Public Works Department, for its works. The schedule, which came into effect on July 1, prescribes the rates for construction material and wages for labourers.

As per the new schedule, the contractors would be paid Rs.39,600 for a tonne of steel and Rs.4,900 for a tonne of cement. Sources in the construction industry said unless the rates are revised it would affect the schedule and quality of the projects being implemented by the Corporation, including the stormwater drains.

However, various associations of the civil contractors, including the Chennai Corporation Contractors Association, Builders Association of India (Southern Centre) and Tamil Nadu PWD Engineering Contractors Association have expressed disappointment at the quantum of increase. The associations said that the difference between the schedule and the market rates is as much as 40 – 50 per cent.

Honorary president of the Chennai Corporation Contractors Association R.Rama Rao said the members would be appealing to the civic body for a higher increase. “We will represent once again. In the past, the Corporation had revised the rates after the announcement taking into account the market rates and the Council had also ratified the decision.” Members of the Association had not participated in the tender called for road works earlier this month citing the low rates offered.

Sources in BAI said the schedule fixed the reimbursement of the daily wages for all skilled categories, including masons, carpenters, and painters at Rs.243, whereas it is Rs.450 – Rs.500. While helpers were being paid Rs.350 a day now, the government rates have been fixed at nearly Rs.160. With regard to sand, which costs Rs.20 a cubic feet, the payment to be made to the contractors has been fixed at Rs.13. BAI sources said they had been asking that steel rates be fixed based on the rates of Steel Authority of India Limited, but the PWD had not responded positively.

One contractor pointed out that while Chief Minister Jayalalithaa had spoken with manufacturers of blue metal and bricks and brought down the rates of these materials, the PWD had not incorporated those rates in the schedule. “After her intervention, one brick costs Rs.6, but the schedule has given it as Rs.3.50. Similarly one cu.ft. of blue metal which was Rs.22 was brought down to Rs.20. However, the rate fixed by the PWD is Rs.12 per cu.ft.”

Contractors also pointed out that overheads and profits had not been included in the schedule of rates. “Overheads include Excise Duty, Sales Tax, Income Tax and EPF for labourers. Our profits too have not been considered in this. The CPWD gives 15 per cent for overheads and profits and the National Highways Authority of India gives 15 - 25 per cent for overheads and over that 10 per cent profit,” said a contractor.

P. Krishnamurthy, vice president of the Tamil Nadu PWD Engineering Contractors Association hoped that the PWD will again revise the rates. “We are preparing a memorandum by comparing rates of CPWD, Highways and NHAI. We had sought a 30 per cent increase from last year's rates but it has gone up only by around 10 per cent. We hope the government will consider our requests,” he said.