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.