Patiala MC cancels bids for 72 road works worth Rs 9 crore | punjab$patiala | Hindustan Times
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Patiala MC cancels bids for 72 road works worth Rs 9 crore

The Patiala municipal corporation (MC) on Monday cancelled the financial bids received last month against 72 road construction works after failing to get competitive rates from the bidders. The estimated cost of these works is nearly Rs 9 crore.

punjab Updated: Apr 15, 2016 22:22 IST
Vivek Gupta
Mayor Amarinder Singh Bajaj addressing the finance and contract committee meeting at the MC Office in Patiala on Monday.
Mayor Amarinder Singh Bajaj addressing the finance and contract committee meeting at the MC Office in Patiala on Monday.(Bharat Bhushan/HT)

The Patiala municipal corporation (MC) on Monday cancelled the financial bids received last month against 72 road construction works after failing to get competitive rates from the bidders. The estimated cost of these works is nearly Rs 9 crore.

The decision was taken in the finance and contract committee (F&CC) meeting after superintending engineer (SE) Harkiran Pal Singh tabled a report during its proceedings that price quoted by contractors against these cancelled works were on higher side and hence needed to be looked into.

While informing that fresh e-tendering for these works would be floated next week, MC commissioner PS Gill said the MC was forced to junk these bids after the engineering branch’s report suspected that the contractors had ganged up and deliberately quoted higher bids which, if accepted, could have led to huge financial loss to the civic body.

What’s the matter?

The MC floated two set of tenders, including the first on March 1 for 75 road works whose estimated cost was fixed for Rs 20 crore and then another tender on March 15 for 72 road works whose estimated cost was worth Rs 9 crore.

Gill explained that generally during bidding, any government agency expected bids lower than its estimated cost due to competition among the contractors.

“While the actual price quoted in the bids received against March 1 works was 15 to 20 per cent less against estimated cost, the difference between bidding price and MC’s projected cost in bids received for March 15 works was just 3 to 4 per cent less than the estimated price,” said Gill, adding that therefore these works were rejected. “Thereafter, a decision has been taken to recall the bids again with a hope of competitive rates this time,” he said.

Development agenda not to be derailed: Mayor

Mayor Amarinder Singh Bajaj, who chaired the F&CC meeting that junked these works, said the development agenda would not be derailed with today’s cancellation since nearly 60 road works out of 75 tendered on March 1 has been allotted as the bids were competitive in those cases. “Most of these works are related to re-carpeting of city’s internal roads, construction of which will begin soon,” he informed.

Rest of the 15 works from March 1 tender would be allotted on Tuesday since these were left pending today after required documentation of few contractors was missing with their bids. He said the decision to cancel the work orders of `9 crore was unanimously taken during the meeting.