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Tamil Nadu

Tamil Nadu rolls out new norms for rural work contracts

Applicants must possess at least two years of experience in the construction sector and demonstrate financial capacity. Experience gained in the private sector will also be recognised.

Express News Service

CHENNAI: The state government on Wednesday released a comprehensive set of guidelines governing the registration of contractors executing works under the Rural Development and Panchayat Raj (RD&PR) department. As per the Guidelines for Registration of Contractors, contractors already registered with other government departments will no longer be required to obtain a separate RD&PR registration. They will automatically become eligible to participate in tenders after remitting a deposit.

Applicants must possess at least two years of experience in the construction sector and demonstrate financial capacity. Experience gained in the private sector will also be recognised. New entrants without prior experience can also register for works up to Rs 10 lakh by furnishing a deposit of Rs 20,000.

Works valued above Rs 2 crore will not require prior registration, provided bidders satisfy the conditions prescribed in individual tenders. Several categories including SCs, STs, SHGs, panchayat level federations, unemployed civil engineering graduates and diploma holders who completed their studies within the previous five years, and women contractors registering as sole proprietors are exempted from paying registration fees.

Registrations will remain valid for three years, and contractors who execute at least one work during this period will be granted an automatic renewal for another three years. Applications will be processed within 15 days. The guideline permits unregistered contractors to participate in tenders. Those selected for works will be required to furnish a non-refundable bank guarantee as a failsafe deposit.

Contractors may face temporary suspension for repeated tender irregularities, while blacklisting may be imposed for poor-quality work, delays, corruption, bid rigging, submission of false documents or other serious violations. Blacklisting can lead to cancellation of registration for 12 to 36 months, termination of ongoing contracts and recovery of financial losses from the contractor.

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