Corporators slam 60-40 payment plan for road repair contractors

After the Brihanmumbai Municipal Corporation (BMC) introduced its 60-40 payment plan for road contractors, corporators in the standing committee on Wednesday slammed

After the Brihanmumbai Municipal Corporation (BMC) introduced its 60-40 payment plan for road contractors, corporators in the standing committee on Wednesday slammed the civic administration, saying that this has led to higher bids by the contractors and a delay in the road repair works.

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The BMC had decided to pay 60% of the payment to the contractors after they complete construction of road and the remaining 40% in phases during the defect liability period.

Corporators alleged that due to this move, contractors have started bidding 30%-40% higher than the estimated cost of the construction wherein prior to this, biddings were roughly 30%-40% lower than the estimated cost. The 60-40 clause was introduced after revoking the existing tenders which has led to a delay.

Prabhakar Shinde, BJP corporator, said, “The contracts should have been finalised by September. Due to a procedural delay by the administration, the entire city will have to suffer.” The civic body starts road repair work by the month of October.

Rais Shaikh, Samajwadi Party corporator, said, “The civic chief is introducing a change in the road contracts at a time when the road repair works should have already been started. The administration should have thought this through.”