Govt ensures transparency, fairness in allotment of works below departmental estimates: Dy CM

Srinagar, Sep 21: Deputy Chief Minister, Surinder Choudhary Monday informed the House that the government follows a well-defined, transparent and rule-based mechanism for allotment of works, including those where the accepted bid is lower than the departmental estimated cost.
Replying to a question raised by MLA Mehraj Malik regarding the allotment of works below departmental estimates, the Deputy Chief Minister said that departmental estimates are prepared strictly in accordance with the applicable Schedule of Rates, prevailing site conditions, approved technical specifications and quantities. Wherever required, prevailing market rates are also taken into consideration, he added. He said that all estimates are subjected to due technical scrutiny and are sanctioned by the competent authority in accordance with the prescribed rules and procedures.
The Deputy Chief Minister stated that works are subsequently allotted through a transparent and competitive e-tendering process to the lowest responsive and eligible bidder, strictly as per the applicable tendering provisions.
He clarified that where a bid is substantially lower than the departmental estimated cost, it is not accepted mechanically. Instead, its reasonableness, financial viability and the bidder’s capacity to execute the work are examined in accordance with the applicable rules, Standard Bidding Documents (SBDs) and prescribed procedures before a decision on award is taken.
He further informed the House that a well-defined mechanism is in place for scrutiny of substantially low or abnormally low bids. Before awarding such works, the bidder’s eligibility, technical and financial capacity, past experience, available resources and the reasonableness and viability of the quoted rates are duly assessed with reference to the tender conditions and applicable SBDs.
Wherever prescribed under the tender conditions, Additional Performance Security is also obtained from the successful bidder to safeguard the government’s financial and contractual interests, he added.
The Deputy Chief Minister emphasized that allotment of a work at a rate lower than the departmental estimate does not dilute the prescribed quality standards. During execution, compliance with the approved specifications, quantities, quality parameters and contractual conditions is ensured through regular inspections, testing and established quality-control mechanisms.
He stated that appropriate Defect Liability and Maintenance provisions are incorporated in contracts, wherever applicable. The concerned field officers remain responsible for monitoring the condition of completed works during the stipulated period and maintaining prescribed inspection and maintenance records.
“Where any defect attributable to the contractor is noticed, the contractor is directed to rectify the same in accordance with the contractual provisions and within the stipulated time,” he said.
Surinder Choudhary added that in case of failure to comply with the contractual obligations, necessary action is taken under the relevant provisions, including withholding or recovery of payments and invocation of performance securities, wherever warranted.
Referring specifically to PMGSY works, the Deputy Chief Minister said that maintenance and performance of completed road works are also monitored through the e-MARG portal, in accordance with the applicable provisions. The system facilitates systematic monitoring of road conditions, maintenance obligations and timely rectification of deficiencies, he added.
The Deputy Chief Minister maintained that every bid, whether above, at or below the departmental estimate, is considered strictly on the basis of the prescribed rules, eligibility criteria, financial and technical viability and contractual safeguards.