New Delhi: Recent Trends from increasing competition among companies to use highway projects and quote low prices caused by the end of the era when some big boys in this sector created a cartel and have a monopoly, said Minister of Transportation Jalan Nitin Gadkari , Stopping fear of poor quality construction by road builders that bagged low-speed projects, he said the government’s decision to change the technical and financial conditions in the offer had brought more players to this sector.
“You have to compete and survive and survive from the strongest is a mantra.
I understand the game of improving technical and financial norms in offers for contractors to qualify.
The big players ensure participating conditions.
The era ends when only 5-7 Companies that make cartels to get the project, “Minister said on the infrastructure summit.
Gadkari said now many more players bid for highway projects and they provide better competition.
“I want more competition, cut the throat competition.
Only those who will survive that reduce construction costs and do not compromise with quality.
I want to see 200 contractors in road construction and 100 others specialize in the construction of tunnels,” he added.
The project contract issue offered at low prices was marked at a recent meeting of the committee remained in road transportation.
Nhai has also decided to monitor intense projects offered below 10% of the cost of benchmarks.
Nhai and other wings from the Highways Ministry have received “abnormal low bids” especially in projects that are fully funded by the government, known as EPC contracts where construction companies come out of the project after construction is complete.
They are only responsible for several years under the “defective obligation” clause.
The problem is bigger in consultation works such as preparation for detailed project reports (DPRs) and third-party monitoring.