The difference of opinion between the Finance Department and the PWD Department on the acceptance of tender has led to a crisis in the construction sector, according to the Kerala Government Contractors’ Association (KGCA).
The recent government order regarding the acceptance of tender was against the PWD manual, KGCA president Varghese Kannampally told reporters here. He alleged that the government, through the order, has made it clear that the acceptance of tender has become political.
He said that as per the new order, Cabinet approval was needed even for minor works. “This was against the PWD manual that insists that a decision on the tenders should be taken within two months,” he said. Kannampally said that this move would have a negative impact on small contractors.
According to the new order, the Government Tender Committee will have the power to sanction tender excess up to 15 per cent of the Schedule of Rates (SoR). And the tender excess will be scrutinised by a Committee of Secretaries with the Chief Secretary as the Chairman. The recommendation of the committee will be placed before the Council of Ministers for final approval.
However, Kannampally said that the PWD Manual said that the the Committee headed by the Chief Engineer could give the approval for tenders. It also specifies that the lowest tender shall be accepted. The manual also states that the tender shall be approved if the quoted rates is within the rate justification estimate. Fresh tender shall be called if this was not followed. He said that the manual notes that the Schedule of Rates should be updated every year with effect from April 1 and published in the website by March 15. However, he alleged that the SoR for each department was with the Finance Department and has not been published yet.
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