Contractors shut out rivals, bid high

The recent bid for an Ambattur road project was in stark contrast to the way most contractors in the city, with political connections, bid for civic work, quoting at least 15% more than the estimated cost. On January 19, the bid that won the contract for the `1.73 crore project was 18% lower than the estimated cost.
However, winning the project was not easy , insiders said.A group of contractors, who were not allowed to bid, forced their way in after protesting against the highhandedness of officials who allegedly favoured `well connected' contractors. “We were able to submit online copies of the tender schedule, earnest money deposit (EMD) and qualification certificates through e-tender but a tender is valid only if the EMD is submitted to the tender opening authority by 3pm,“ said a contractor on condition of anonymity .
He alleged that officials refused to accept EMD cheques of all contractors except one, a proxy of an `influential' politician, despite the person quoting much higher than the estimated cost. “But at last they were forced to accept EMDs of 15 contractors because of protests and the bidding became competitive,“ he said. The proxy of the `influential' politi cian was now trying to get the tender cancelled, he alleged.
Most of the time, say insiders, contractors close to an `influential person' bag civic projects through `compro mise' tenders, defeating the purpose of bidding -to get the best contractor at the best price.
A senior corpo ration official refuted the allegations and declared that there was no interference in the tender process. “We give the work order to those quoting a price higher than the estimated cost to ensure quality ,“ he said.
Experts say the corporation loses crores because of selective bidding. “If there are competitive tenders, the civic body can complete the work for a lesser amount. The higher amount quoted by contractors could be to bribe politicians,“ said former bureaucrat M G Devasahayam.
TOI had earlier reported how contractors `worked' to win and apportion contracts among themselves, taking competition out of the bidding and giving quality the go-by during the execution. “In most cases, a dummy bidder quotes a higher amount than the one with influence, allowing the latter to win the contract,“ said a source.
These days, a corporation engineer admitted, only one or two contractors bid for a project. “Earlier, more than five contractors would bid and quote 15%-20% less than the estimated cost because of the competition.“
On February 13, the civic body is to open the tender for the `466 crore project to lay 176 bus route roads but some contractors allege that the bid will be won by those with `influence'.