New Delhi: The recent trend of increased competition among companies for securing highway projects and citing lower prices is due to the end of the era when some of the big boys in the sector formed cartels and had a monopoly, Central Road Transport Minister Nitin Gadkari Said.
Allaying fears of poor quality construction by highway builders who bagged projects at low rates, he said the change in technical and financial position due to the government’s decision has brought more players to the sector.
“You have to compete and survive and survival of the fittest is the mantra. I understood the game of fixing technical and financial parameters in a bid to qualify contractors. The big players ensured that many companies participated. That era is over. When only 5-7 companies were forming a cartel to get projects,” the minister said at an infrastructure summit.
Gadkari said that now many more players are bidding for highway projects and they are giving better competition. “I want more competition, cut-throat competitions. Only those who reduce the cost of construction and do not compromise on quality will survive. I want to see 200 contractors in road construction and another 100 specializing in tunnel construction I am,” he added. .
The issue of bidding for highway contracts at low cost was raised in the recent meeting of the Standing Committee on Road Transport. chewing CSIR has also decided to closely monitor those projects which are being bid for less than 10% of the benchmark cost.
NHAI and other wings Ministry of Highways Particularly those wholly government-funded projects are getting “abnormally low bids” that need . is referred to as EPC Contracts where construction companies exit projects after construction is completed. They are only accountable for a certain number of years under the “defective liability” clause.
The problem is major in consultancy functions such as preparation of Detailed Project Reports (DPRs) and third party monitoring.
Allaying fears of poor quality construction by highway builders who bagged projects at low rates, he said the change in technical and financial position due to the government’s decision has brought more players to the sector.
“You have to compete and survive and survival of the fittest is the mantra. I understood the game of fixing technical and financial parameters in a bid to qualify contractors. The big players ensured that many companies participated. That era is over. When only 5-7 companies were forming a cartel to get projects,” the minister said at an infrastructure summit.
Gadkari said that now many more players are bidding for highway projects and they are giving better competition. “I want more competition, cut-throat competitions. Only those who reduce the cost of construction and do not compromise on quality will survive. I want to see 200 contractors in road construction and another 100 specializing in tunnel construction I am,” he added. .
The issue of bidding for highway contracts at low cost was raised in the recent meeting of the Standing Committee on Road Transport. chewing CSIR has also decided to closely monitor those projects which are being bid for less than 10% of the benchmark cost.
NHAI and other wings Ministry of Highways Particularly those wholly government-funded projects are getting “abnormally low bids” that need . is referred to as EPC Contracts where construction companies exit projects after construction is completed. They are only accountable for a certain number of years under the “defective liability” clause.
The problem is major in consultancy functions such as preparation of Detailed Project Reports (DPRs) and third party monitoring.
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