PWD's new formula for quality: Higher deposit for 'very low' bids
LUCKNOW, Jan. 5 -- In an attempt to ensure quality is not compromised for cost, the Uttar Pradesh Public Works Department (PWD) is planning changes in its tender process by introducing a provision for higher earnest money deposit (EMD) for bidders who quote a very low price.
According to officials, the department will add a clause in road tenders requiring companies that submit bids quoting an unexpectedly low price to deposit a significantly higher EMD.
If the quality of work is affected, the deposit will be forfeited. The lowest margin in each tender will be decided separately.
"The idea is to check companies that submit bids for tenders just to grab it, but in their attempt to do so, they quote such a low price that it compromises quality of work," said a senior official of the department.
The draft proposal has been prepared. The department plans to send it for the state cabinet's approval.
The PWD maintains 10,214 km of state highways, 6395 km of major district roads, 56,858 kms of other district roads, 1,93,581 km of village roads.
Every year, the road network is expanded according to the needs of the people and recommendations from public representatives.
"New roads are built to last and they are made with a five-year maintenance contract to be ensured by the contractor only. In such a situation it is necessary that the quality of work is high," said the official.
The new clause in UP PWD tenders will be introduced once the cabinet approval is given.
This will categorise the contractors submitting the tender bid according to the price quoted....
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