BMC is now preparing guidelines to handle under-bidding. (Source: File Photo)Written by Sanjana Bhalerao
IN AN attempt to crack down on contractors who bid as low as 50 per cent below the estimated cost of a project, the BMC is now preparing guidelines to handle under-bidding. With no cap on how low contractors can bid, some bid as low as 50 per cent below the estimated cost and end up producing poor quality and shoddy work.
“After repeated low bidding by contractors for minor work, we are preparing guidelines to stop the repeated low bidding. It will include details on deposits to forfeit and when to re-tender the contract among other things,” Sanjay Sethi, the additional municipal commissioner, projects, said.
Over the years, there have been several instances when contractors have bid below the estimated cost and tenders have been recalled. The move to frame guidelines came after five projects related to laying of water pipelines across the city, worth at least Rs 10 crore, got bids 35 per cent below the estimated cost. The BMC has recalled tenders for all five projects.
Low bidding has been particularly seen in water works, storm water drain projects, like drain cleaning and widening, and projects by the gardens department. Low bids have left officials wondering how contractors afford to work at such rates and they fear that the work will be below the standard with bad quality construction material.
In 2015, the BMC had introduced dynamic deposit, which deterred contractors from bidding extremely low for big ticket projects. But smaller projects are still facing the problem of low bidding, said a civic official.
In the e-tendering process, a contractor bid for a civic project in Sion Koliwada, worth Rs 4 crore, at 55 per cent less than BMC’s estimate of Rs 1.8 crore. Under dynamic deposit, contractors will have to submit an additional security deposit depending on how low they bid.
