CHENNAI: In the wake of allegations of corruption in the municipal administration and water supply department worth crores of rupees, contractors who regularly participate in tenders floated by the Greater Chennai Corporation have flagged a loophole in the e-tendering process that, they claim, leave scope for manipulation.
According to sources, one of the primary steps in the process where manipulation occurs is during the issuance of “site visit certificate”, which is to be issued by the zonal executive engineer (EE). As per the checklist in the bid documents accessed by TNIE, the site visit certificate is one of the mandatory documents that needs to be uploaded by bidders. The format for the certificate, according to the checklist, has to be obtained from the superintending engineer of the concerned department and is not available as part of the tender documents.
“The site visit certificate has no real purpose in the list of mandatory documents. It is not issued uniformly to all bidders. Officials ensure that it is only issued to those who have taken care of the kickbacks. If it is not issued, you cannot participate in the bid,” alleged a contractor executing multiple projects for the city corporation.
On paper, the EE and a representative from the bidding firm is to be present at the site and take stock of the ground situation, following which the EE issues the certificate in order to ensure that the bidding firm is prepared to take on the work in terms of machinery and other resources.
Sources said contractors are required to upload the site visit certificate even at the technical bid stage, the first stage in the two-cover system followed by the corporation which precedes the opening of the financial bid. Under the two-cover system, only bidders who are found technically responsive and eligible are qualified for the opening of their financial bids.
“Practically, this means the outcome is decided even before the technical bids are evaluated, since only firms cleared by officials are able to submit a complete technical bid and move forward in the process,” another contractor alleged.
If a contractor is unable to obtain the certificate format or the corporation officials postpone the site visit, especially with the tender deadline fast approaching, the bidder will have no other option than to move court to secure the certificate to participate in the bidding.
Sources further contended that if the intention was to verify the bidder’s eligibility, such verification could be undertaken during the technical evaluation stage, before the financial bids are opened, without making the site visit certificate a mandatory precondition for bid submission. Moreover, this may not directly impact the civic body since the successful bidder is alone deemed responsible for any additional work required at the site, even after the contract is awarded, contractors said.
Even if the certificate is required, at a time when the government is encouraging self-certification in building construction approvals, the site visit requirement, too, could be treated as a self-certified document, they said.
Sources said that the certificate was made mandatory in the last two years before which there existed a requirement for a machinery clearance certificate for similar reasons, which was put an end to in 2021.
“During the two to three years between 2021, when the machinery certificate was stopped, and around 2024, when the practice of issuing site visit certificates started, the tender processes were much fairer and firms frequently bid lower than the corporation’s estimated contract value. Now, they usually quote 3-7% higher in order to make up for the kickbacks,” a contractor said.
According to tender documents of stormwater drain constructions accessed by TNIE, on a random check, in 2023, among the five tenders, three were awarded at amounts lower than the GCC’s estimates. However, in 2024, the amounts quoted by the successful bidders who were awarded the projects were 7% to 12.51% higher than the GCC estimates. Similarly, in 2025, TNIE reviewed around 10 tender documents related to stormwater drain construction and found that all the bid amounts were higher than GCC estimates.
The contractors blame the tender-inviting authorities and the chairman of the tender committee for facilitating predetermination of tenders as this could have been avoided if such a loophole had not been created.
Speaking to TNIE, Jayaram Venkatesan, convener of Arappor Iyakkam said, “Earlier, the Chennai Corporation had been asking for a machinery certificate. This was stopped after a circular was issued in 2021 stating that such certificates need not be sought from contractors, following concerns raised over their need and fairness. Now, instead, a site visit certificate is being asked.”
“The purpose of introducing the e-tender process was to prevent manipulation of tenders that often occurred through physical contact. Even after moving the process online, attempts are being made to retain elements of physical interaction to prevent fair participation in tenders, thereby allowing room for manipulation in the tendering process. Any requirement mandating physical contact in tender procedures must be eliminated,” he said.
GCC deputy commissioner (works) and tender committee chairman V Sivakrishnamurthy was unavailable for comment.
Verified by TNIE
Sources said that the certificate was made mandatory in the last two years before which there existed a requirement for a machinery clearance certificate, which was put an end to in 2021. On random check of tender documents of stormwater drain construction works, it was found that bids awarded were consistently higher than the corporation estimates
2023 - Bids below corporation estimates
Out of five tenders checked, three were awarded at amounts lower than the GCC’s estimates, ranging from 1.9% to 14.99% below the estimated contract value, which ranged from Rs 8 lakh to Rs 7 crore
From 2024 - Bids above corporation estimates
In 2024, successful bids were 7%-12.5% higher than GCC estimates. In 2025, review of around 10 tenders found that all the bids were higher by 1% to 7% than GCC estimates
What contractors say
If the intention was to verify the bidder’s eligibility, such verification could be undertaken during the technical evaluation stage
It may not directly impact the civic body since the successful bidder is deemed responsible for any additional work required at the site
The site visit requirement could be treated as a self-certified document
Contractors blame tender-inviting authorities and chairman of the tender committee for the loophole
Tender process flow
Tender preparation
Tender notice (advertisement)
Tender invite (https://tntenders.gov.in/nicgep/app)
Bid submission - It is in this step that bidders are required to submit the mandated “site visit certificate”
Technical bid opening
Technical evaluation - Technically qualified bidders are shortlisted in this stage
Financial bid opening - Technically qualified bidders’ financial bids opened
Financial evaluation - Identification of lowest bidders
Award of Contract - Work order will be issued to the successful bidder, following formal procedures