In view of the exorbitant fee paid to project consultants for civic infrastructure projects, the state government has set guidelines regarding payments made by civic bodies. In a government resolution (GR), the state Urban Development Department stated that civic bodies seek services of private project consultants for preparing detailed project reports (DPR) and their execution for civic infrastructure projects.
“The private project consultants were being paid exorbitant charges for the services. Thus, the state government has decided to prepare guidelines that would be mandatory for civic bodies while deciding consultants’ fee and its distribution in slabs,” the GR stated.
As per the guidelines, the civic body cannot give a fees more than three per cent of the cost of the proposed infrastructure project. The payment should be made in six slabs, starting from the administrative approval for the implementation of DPR for the infrastructure project.
The practice has been to pay 0.50 per cent of the project cost for preparing DPR, and 0.25 per cent after the administrative approval of DPR, stated the GR. It added that there was a possibility that the project consultant leaves the work after preparing DPR without seeking administrative approval and implementation. “Thus, the first installment should be of 0.75 per cent of the project cost only after the DPR is prepared and has received administrative approval,” it stated.
The second installment of 0.25 per cent would be after the work order for the project implementation is given, while 0.40 per cent each will be paid after completion of 25 per cent and 50 per cent work and 0.60 per cent each will be paid after completion of 75 per cent and 100 per cent of the work.
The responsibility of implementing the government guidelines for payment of fees to project management consultants would be with the municipal commissioner of the concerned civic body. Meanwhile, Guardian Minister Girish Bapat has directed the Pune Municipal Corporation to submit details of the project consultants, and the fees paid to them, for projects taken up in the last five years.