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Rahul Wadke

Mumbai, Dec. 2 The Maharashtra Government will consider a new system for awarding contracts especially for infrastructure projects.

The system involves computing the ‘mean value’ of submitted bids and awarding the contract to that contractor whose bid is closest to the mean value.

The mean value is arrived by adding all the bids and dividing it by the number of bidders.

Mr R.C. Sinha, Additional Chief Secretary of Maharashtra, ardent advocate of the system, said that the matter would soon come up before the Cabinet. “Awarding contracts to the L1 (lowest) bidder is a problem, as the bidder with the lowest bid does not necessary mean the best for the project,” he said.

Mr Sinha has been architect of a number of mega infrastructure projects, including the Mumbai-Pune expressway.

Mr Sinha said that Indian experience in awarding contract has shown that the current rule of awarding contract to the lowest bidder is fraught with many problems.

Very often contractor quote non-workable rates and prices merely to grab work and then delay execution of the project.

More Stories on : Infrastructure | Policy | Maharashtra

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