SRINAGAR: The Jammu and Kashmir government follows a transparent and rule-based mechanism for awarding contracts, including works where the accepted bid is lower than the departmental estimate, Deputy Chief Minister Surinder Choudhary informed the Legislative Assembly on Monday.
Replying to a question by MLA Mehraj Malik during Question Hour, the Deputy Chief Minister said departmental estimates are prepared in accordance with the applicable Schedule of Rates, site conditions, approved technical specifications and quantities, while prevailing market rates are also considered wherever required.
He said all estimates undergo technical scrutiny and are approved by the competent authority as per prescribed rules and procedures.
Choudhary told the House that works are allotted through a competitive e-tendering process to the lowest responsive and eligible bidder in accordance with applicable tendering provisions.
He clarified that bids substantially lower than departmental estimates are not accepted automatically. Instead, their reasonableness, financial viability and the bidder’s capacity to execute the work are examined under the applicable rules and Standard Bidding Documents before any award is made.
The Deputy Chief Minister said a mechanism exists for scrutiny of abnormally low bids, under which a bidder’s eligibility, technical and financial capacity, past experience, available resources and the viability of quoted rates are assessed before finalisation of the contract.
He added that where required under tender conditions, Additional Performance Security is obtained from the successful bidder to safeguard government interests.
Choudhary said awarding a contract below the estimated cost does not compromise quality standards. Compliance with approved specifications, quantities and quality parameters is ensured through inspections, testing and established quality-control mechanisms during execution.
He informed the House that defect liability and maintenance clauses are incorporated in contracts wherever applicable, while field officers are responsible for monitoring completed works and maintaining inspection records.
If defects attributable to a contractor are found, the contractor is required to rectify them within the stipulated period. Failure to comply can invite action, including withholding or recovery of payments and invocation of performance securities, he added.
Referring to PMGSY projects, the Deputy Chief Minister said maintenance and performance of completed roads are monitored through the e-MARG portal, which facilitates tracking of road conditions, maintenance obligations and rectification of deficiencies.
He reiterated that every bid, whether above, at or below the departmental estimate, is evaluated strictly on the basis of prescribed rules, eligibility criteria, technical and financial viability and contractual safeguards.
