Contractors waiting for revision in rates

The proposed new main office building for the City Municipal Corporation at an estimated cost of Rs. 7 crore has hit a roadblock as there has been no response to the tender that was closed last week.

Sources said that the major reason could be the financial year end, as the Public Works Department would announce the new schedule of rate for 2013-14 next month for contractors for construction and other related works.

“The new rate would be implemented from April 1 as contractors expect it to be 10 per cent higher than the existing rate fixed for 2012-13. Hence contractors would wait for the new rates to be announced before taking up projects,” added the source.


Other reasons that could have discouraged bidders include escalating cost of construction materials like sand, steel and cement and non-availability of labours.

Corporation Commissioner M. Ashokan told The Hindu that owing to the poor response, a second tender was again floated asking the prospective bidders to submit documents by March 7.

He also ruled out price revision at the initial stage.

The project is to construct a three storeyed administrative building at 1,25,150 sq ft with stilt floor for vehicle parking, ground floor and three floors housing all major departments and offices and work is expected to be completed in 600 days.

The estimated cost of the project is Rs. 7 crore, with contribution of Rs. 5 crore from Infrastructure Gap Filling Fund and Rs. 2 crore from Urban Local Body (ULB).

The existing structure would be demolished soon and offices would be functioning in Thongum Poonga.