Infrastructure development company Shapoorji Pallonji Group has started mobilising labour and material required for the construction of the new integrated secretariat complex.
The company has entered into an agreement with the Roads and Buildings department late on Monday evening after completing formalities like furnishing bank guarantees (performance security) for undertaking the works. The agreement, according to the R&B officials, runs into around 2,000 pages incorporating in detail all the provisions mentioned in the tender document, including the one year timeline set for the completion of works in all respects.
“It is like any other building contract agreement. There are no special features,” was how a senior official responded when asked about the salient features of the 2,000-page agreement. The one-year timeline for completion of the construction of the integrated complex in all respects started immediately and the company has to handover the complex to the government on November 16 next year.
As the government has completed land levelling and other civic works before handing over the site to the contracting firm, Shapoorji Pallonji Group has started works on mobilisation of labour and material to the site to begin with. The company, as part of the agreement, has to establish concrete batching plant and put up labour camps while simultaneously mobilise construction material like cement, steel and sand in required quantities.
Shapoorji Pallonji group bagged the contract outbidding another infrastructure major L&T quoting 4 % excess over the estimated value of works. The government has invited the contract for works worth an estimated ₹500 crore but has sanctioned ₹ 617 crore for the new complex.
“The difference is on account of the Goods and Services Tax, statutory payments that should be made to different government departments, fee to be paid to consultants and other overheads,” the official explained adding the total contract amount would not be released at one go. The releases would be based on the quantum of works done, recorded and certified by the department from time to time.