Punjab contractors boycott govt tenders

The Punjab Contractors' Association has decided to boycott tenders for any new job over a steep hike in raw material prices. This may disrupt the state government's plans for massive development work.

"In the recent past there has been a steep and abnormal rise in bitumen and steel prices, because of which the contractors are facing heavy losses and it is quite difficult for them to continue work," association General Secretary A K Garg told reporters here today.

He added that the contractors have been called upon to boycott tenders for any fresh work unless the state government updated common schedule rates.

Garg said bitumen should be either arranged and supplied by the department as per earlier practice, or if the bitumen was to be arranged by the contractor, the rate of purchase should not result in a loss to the contractor.

"We have already submitted our memorandum to PWD Minister Pratap Singh Bajwa, who assured that steps will be taken to tackle the problem," he said.

He further said there should be a clause in the contract agreement that escalation in the cost of raw materials would be payable from the day of the tenders.

While justifying the association's demand, Garg said after the steep rise in steel price, the Maharashtra government is considering compensating the contractors for the abnormal price rise.

Even the director-general of works, CPWD, New Delhi, has already asked its all zonal chief engineers to assess the loss to the contractors to compensate the latter accordingly, he added.