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Mumbai: BMC haggles with contractors over road work bid amounts

Contractors to consider reducing amounts; had bid 30 to 40 per cent overestimated cost after BMC changed actual road tender conditions, and added a new 60:40 ratio for payment

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Corporators had claimed there is no standard percentage that will be reduced, and every contractor is reducing the amounts according to his whims and fancies. Representation pic

Corporators had claimed there is no standard percentage that will be reduced, and every contractor is reducing the amounts according to his whims and fancies. Representation pic

It seems bargaining does not take place just in the markets of the city, but also in one of the richest municipal corporations of the country, the Brihanmumbai Municipal Corporation (BMC). The civic authorities are convincing road contractors to reduce their bid amounts as corporators had cried foul over the inflated tender cost. Corporators have also alleged that as the BMC doesn't have a standard procedure for the same, the cost reduction is being done as per the whims of the contractors. Contractors are likely to present the new reduced bids by Thursday to the BMC.

After Bharatiya Janata Party (BJP) corporators recently walked out of the Standing Committee meeting over the importance given to contractors and consultants, and the cost of road repair tenders shooting up by about Rs 200 crore, the BMC administration called all concerned contractors to negotiate their bid amounts. Due to various changes to the actual road tender conditions, and a new clause of 60:40 ratio (40% payment would be held back and released partly in a period of 10 years), the contractors have bid 30 to 40 per cent over estimated cost.

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