As part of the new tender conditions for road works across the city, the Brihanmumbai Municipal Corporation (BMC) will release 20 per cent of the total cost (in the 80:20 ratio) to contractors in parts from the sixth year onwards and not after 10 years. The civic body believes that this will ensure the contractors bid at par with the estimates because they won’t have much at stake.

This is for the road works that have a defect liability period (DLP) of 10 years. A year-and-a-half back when the former civic commissioner first introduced the 60:40 payment method, the civic body received high bids for road contracts, which were later negotiated and brought down. Following that, they decided on an 80:20 payment ratio, where 80 per cent of the money was paid after completion of road work and 20 per cent released 10 years later.