The 10 per cent price preference accorded to the Kerala State Construction Corporation while bidding for works has been withdrawn.
According to an official statement by Minister for Public Works V. K. Ebarhim Kunju, the Corporation would still get preference in works which are directly executed by it and it could participate in competitive bids.
The price preference system allowed awarding a work to the lowest bidder at 10 per cent extra rate if the lowest bidder is on the Corporation’s panel of contractors.
The Corporation was conferred price preference nearly four decades ago. Besides the Construction Corporation, Ooralungal Labour Contract Cooperative Society too enjoyed price preference.
The High Court of Kerala, in cases filed by some contractors, had ruled in favour of price preference for the Construction Corporation.
