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Naidu Defends 16.9 percent Bonus for Contractor

Justifying claims of favouring contractor, Naidu says 5 percent excess within guidelines and remaining percentage is bonus.

Published: 19th March 2015 06:00 AM  |   Last Updated: 19th March 2015 09:27 AM   |  A+A-

Chandrababu Naidu1PTI

HYDERABAD:Andhra Pradesh Chief Minister N Chandrababu Naidu justified his government’s decision to award contract of the Pattiseema Lift Irrigation Scheme to a contractor with excess estimation.

When Leader of the Opposition YS Jaganmohan Reddy alleged that Naidu’s government had allotted the tenders to his favoured companies though they have quoted 21.9 per cent excess estimation for the construction of the project, Naidu said the 5 per cent excess was within the guidelines, “while the remaining 16.9 per cent is a bonus given to the company for completing the project in one year.”

Taking part in a debate on the Pattiseema issue in the State Assembly on Wednesday, Naidu quoting the tender notice said that the notice stated that tenders with premium above 5 per cent excess over IBM would also be accepted subject to the condition that payments would be restricted up to 5 per cent excess for the work done till its completion and the payment of excess premium over and above 5 per cent would be payable only if the work is completed as per agreed milestones and within the original agreement period without any EOT.

He further stated that if the contractor failed to complete the work as per schedule, the payment would be restricted to 5 per cent excess and he would not be entitled to payment of excess premium quoted over and above 5 per cent.

Tenders for the Rs 1,300 crore Pattiseema project had been finalised in a transparent manner, Naidu said.

What the Tender Notice Says

Tenders with premium above 5 per cent excess over IBM also would be accepted subject to the condition that payments would be restricted up to 5 per cent excess for the work done till its completion and the payment of excess premium over and above 5 per cent would be payable only if the work is completed as per agreed milestones and within the original agreement period without any EOT. In case of failure to complete the work on the above lines, then the payment would be restricted to 5 per cent excess over IBM only and the tenderer will not be entitled for payment of excess premium quoted by him over and above 5 per cent.

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