Errant civil works contractors to get back annual security deposits

Going soft on errant civil works contractors, BMC will release Rs 100 crore desposited as annual security.

The decision was taken at a meeting called by muncipal commissioner Sitaram Kunte late last week where the contractors are believed to have raised problems related to the new e-tendering system.

"The contractors were asked to meet the commissioner to discuss the issue of fines. We are returning annual security deposits but will hold back earnest money deposits for not completing works in time. The contracts will now be given to unemployed civil engineers," said standing committee chairman Rahul Shewale, who was present at the meeting.

He said stringent guidelines will be drafted to help contractors bill works more accurately and reduce inflated amounts charged to the corporation.

"The commissioner has said a new framework for billing works will be created to help clear excess amounts billed to us," said Shewale.

He said the scheduled rate based on which civil works contracts were drafted would also be updated from 2008.

"This will help rationalise the cost of work according to present market rates."

In December 2012, BMC had announced it would also withhold earnest money deposits amounting to Rs 9.3 crore (Rs 30 lakh each) of 31 contractors who did not begin works allotted in May.

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