Dubious firms line up for EPC works
Source: The Sangai Express
Imphal, December 17 2020:
With many dubious or nondescript firms lining up for projects taken up in the State under Engineering Procurement Construction (EPC) mode, certain quarters have questioned the effectiveness and benefits of adopting the EPC mode.
One top official of a construction company told The Sangai Express that a number of firms which are hitherto unknown have been lining up for tenders floated for execution of projects under EPC mode in the State.
Earlier, 2 per cent of the tender amount was charged from all companies/firms which took part in any tender.
But for projects/works to be implemented under EPC mode, firms/companies are no longer required to pay this 2 per cent as per, a new regulation of the Government of India.
As such, even firms and companies which do not have any money can apply for tenders held for projects works to be taken up under EPC mode, said the official.
Earlier, the lowest bidder was supposed to deposit 5 per cent of the tender amount as bank guarantee but the bank guarantee has now been reduced to 3 per cent.
If the firm which won the tender has no money to deposit bank guarantee, the firm would invite a second party which can produce the bank guarantee.
In return, the second party would get portion of the contract work in the form of sub-contract.
But projects/works executed in the form of sub-contract often compromise the quality of work, said the construction company official.
One very dangerous trend is submission of tender forms at minus rate quota tions.
When tender forms are submitted with minus rate quotations, one cannot expect the contractor or the firm to maintain properly quality of the work allotted to them, said the official.
Another trend seen in the State is distribution of projects/works among multiple second parties after the contract is won by a first party which does not have resources to execute the project on its own.
This is another reason for compromising quality of work.
As a rule, there must not be any room for compromising the quality of works taken up under EPC mode.
On the contrary, dubious and nondescript firms have been lining for tenders floated for execution of projects under EPC mode in the State, the official remarked.