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BMC frames rules on subletting contracts to improve work quality

The BMC circular says the reason behind the haphazard work is the lack of details on subletting conditions, because of which works used to be given away in an ad hoc manner.

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The Brihanmumbai Municipal Corporation ((BMC) has taken a major step to rein in haphazard execution of the ongoing civic works by contractors appointed by them. It has issued a circular underscoring the rules and regulations on subletting of contracts as that has led to compromising on the quality of civic works.

How subletting affects the quality of work? Suppose a road contract worth Rs20 crore is given to a particular contractor. To lessen his own burden, this contractor sublets a major portion of the work to another, who may not have the requisite qualifications for the work. In such cases, the quality of work gets compromised.

The BMC circular says the reason behind the haphazard work is the lack of details on subletting conditions, because of which works used to be given away in an ad hoc manner.

“Contracts can be sublet only up to 15% of the value of the contract,” the circular states, adding that subcontractors must be adequately qualified as per tender requirements and have equivalent and relevant experience for the work delegated to them. Additionally, in cases where more than two contractors are performing the work together (consortium), subletting will not be allowed.

The directions will come into force with immediate effect and shall be a component of all future tender documents. The circular has been issued to major BMC departments such as roads, gardens and storm water drains.

The directions in the circular have been framed by additional municipal commissioner SVR Srinivas, who said, “Subletting of contracts is a routine thing, but the absence of fixed rules on this has been creating issues like haphazard execution of work. In a lot of cases, contractors have sublet work to experience-lacking smaller contractors, leading to a compromise on the quality of work.”

Another official said most contractors were unhappy with the decision.

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