The delay in the release of payment by BBMP is being quoted as the reason why the contractor is in no hurry to submit an offer for the development work of at least 6 lakes in the city
Not many contractors express interest to participate in the development and rejuvenation of at least six lakes in the city.
Bengaluru Mahanagara Paleike has issued a tender again and again, but no one wants to do it.
This reluctance is associated with the delay in the release of payment by BBMP because these projects are funded by the Civic Agency.
Conversely, contractors are quite interested in projects taken under government grants because of timely payments.
In the past year, the BBMP has invited offers from contractors almost every second month to develop Lake Kempombudi with an estimated cost of almost Rs 1 Crore.
It has no answer.
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The same applies to lakes such as Arekere, Hulimavu, Gangashetty in Kr Puram, Horamavu and Vengaiiah.
Officials have repeatedly floated fresh tenders only to find abuse.
The contractor said that they finally waited for two to three years for BBMP to release payment.
“Because the cost of material has risen, it is not feasible to participate in the tender unless payment is made on time,” said a contractor.
BBMP, he said, did not improve premium or tweaking conditions to encourage more bidders.
“There is no manufacturer who is willing to provide material based on credit.
This makes many contractors stay away from participating in the offer.”
Senior officials admit that several lakes did not receive responses from the contractor.
“It’s not no participating contractor.
We have applied for a development of around 25 lakes,” BBMP officials said.
Because the cost of material has risen, it is not feasible to participate in the tender unless payment is made on time by BBMP- a contractor
“There are not many responses to the tender Hulimavu and Arekere Lake because the procurement of large pipes constitutes 90 percent of the cost of the project.
Labor costs are only 10 percent.
Contractors feel that it is not worth waiting for 2-3 years for payment when they have to invest a lot of money to buy pipes , “he said.
Lack of responses to Lake Kempombudi, he said, also related to material costs.
It was thought that the development of the lake funded by the Nava Nagarothana Minister and Shubra Bengaleuru scheme had received a good response from the contractor.
V Ramprasad, Conveler of Lakes, said that BBMP must stop calling the tender if they cannot ensure that payments are made on time.
“If the contractor does not have the trust to get payment immediately after providing work, the quality of work suffers,” he said.
BBMP, he suggested, had to create an escrow account so that all funds work would not starve funds.
He urged officials to put brakes on projects that add value or make assets for the corporation.