Restrictions on bills; Contractors not taking tenders: Construction works worth Rs 524 crores yet to be completed

ALAPPUZHA: With only five weeks left for the end of the financial year, half of the construction works worth Rs 524 crore to be implemented in the district through local bodies have not been completed. No one is taking tenders due to non-payment of bills on time, treasury restrictions, an increase in the price of construction materials and unaffordable wages.

Although the village and block panchayats had invited tenders several times for the works that need to be completed before March 31, no one has come forward. Only accredited agencies are allowed to take contracts for major works. There is no one to take up any work costing more than Rs 5 lakh, such as retarring of roads, metalling, construction of drains, and maintenance of Anganwadi buildings and health centres. Since it will take days to complete the retendering process, there is also a possibility of loss of funds.

Price hike and arrears setback

1. Considering the price hike in the last five years for metal, M sand, P sand and steel, it is not possible to work at the government rate
2. The restriction on bills above Rs. 5 lakh, the loss of about 10 percent when discounting large bills, and the non-receipt of the last installment of the plan fund have been setbacks
3. With the restriction on bills above Rs. 10 lakh at the panchayat level, in addition to the 6-month restriction on bills above Rs. 5 lakh, even the bills for completed works have not passed
4. Although the deadline for works as part of disaster management works has been extended by another six months in view of the crisis, no one is sure how they will survive the shortage of raw materials and price hike

Market Price

Cement: 320

Stone: 21,000 (400 cubic feet)

Metal: 60-65 (cubic feet)

Msand: 70-75 (cubic feet)

P.Sand: 80-85 (cubic feet)

Steel: 70-75 (10mm)

Most of the contractors in local institutions are small-scale. The practice is to take a job worth a maximum of 20-25 lakhs and take on the next job once that amount is passed. Most of them do not take on work anymore due to huge arrears

- Raghu, Contractor, Local Self-Government Department