BMC mulling 80:20 roads formula for all works?

Roads dept sources say civic body is exploring if it can implement formula for other departments like bridges, stormwater drains, too

The Roads Department formula of 80:20 may now be followed by major departments like SWD and Bridges. The Roads Department’s idea of holding back 20 per cent of contractors’ payments till Defect Liability Period (DLP) comes to an end, which is about 5 to 10 years post completion of work, is now to be implemented across departments to ensure quality of work.

Additional Municipal Commissioner P Velrasu had raised a stink after contractors showed willingness to work at a lower rate of 30 per cent from the estimated amount towards road tenders that were put in public domain a few months ago. He had sent a letter to the Roads Department and had directed to clarify the bids as the quality of work was suspected to be below standard since the contractors were ready to work at a less amount. Former Chief Minister Devendra Fadnavis had also written to the civic body over the bids quoted below 30 per cent, which was reported by mid-day on Tuesday.

The BMC has put out fresh tenders for road repairs worth Rs 1,126 crore. Representation pic/Anurag Ahire

Speculations that the tenders will be scrapped began following the letters written to the BMC by Velrasu and Fadnavis had begun over the scrapping of tenders. The BMC then did scrap tenders worth almost Rs 1,100 crore. It put out fresh tenders for road repairs on Thursday in various newspapers worth Rs 1,126 crore. At least 29 roads in the city will be under repair, if all goes well before the end of this year.

‘More quality assurance’

The tender conditions, however, include the 80:20 payment method where 80 per cent of the contract cost is paid phase wise till the completion of work and a payment of 20 per cent is released only after the DLP is completed. The officials said that this will bring in more quality assurance and also the contractors will be responsible even after the work is completed.

Before the pandemic hit the city, the BMC had plans for the controversial 60:40 formula for road works which was not yielding fruitful results and it was changed to the 80:20 payment method. However this was put on hold for the tenders issued during the pandemic as per the instructions of the government, to ensure that the businesses are not affected. But the BMC has brought back the payment method in the new road works that they have issued.

‘A good model’

Despite opposition, BMC officials said that it is a way to keep checks and balances and there are plans for implementing it across all the major infrastructure departments. Deputy Municipal Commissioner, Infrastructure R Talkar said, “It is a good model where the errant contractors will be kept in check and will also be responsible to ensure quality services after the completion of work and thus the authorities have taken the details from us to try the 80:20 model in other departments as well.”

29
No. of roads that could be  under repair this year

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