Nagpur Civic Works Face Quality Crisis Over Ultra-Low Bidding Trend
The controversy surrounding ultra-low bids in Nagpur Municipal Corporation (NMC) projects is escalating, with civic activists, a former senior engineer, and contractors issuing stark warnings that this trend could severely compromise construction quality and inflict long-term damage on public infrastructure. On Wednesday, the NMC standing committee approved two civic works valued at over Rs57 lakh, both awarded significantly below the estimated cost, intensifying concerns over the sustainability and safety of such practices.
Technical and Financial Implications of Drastic Underbidding
Retired NMC chief engineer Rajeev Gaikwad emphasized that such drastic reductions in bids lack technical justification. He explained that government estimates are based on the District Schedule of Rates (DSR), which incorporates costs for materials, labor, transport, and a fixed profit margin of approximately 10%. Gaikwad stated, "Contractors typically do not quote beyond 10%-12% below the estimate, as that represents the standard profit margin in most public works contracts. When bids drop 30%-40% below, it indicates that contractors cannot achieve a profit and are likely unable to execute the work properly." He dismissed arguments about falling market prices, noting that costs for cement, steel, bitumen, and labor have been rising annually, and if rates had decreased substantially, the DSR would have been adjusted accordingly.
Warnings from Activists and Contractors on Quality Compromises
Traffic activist Ashok Karandikar echoed these concerns, labeling 30%-40% underbidding as "impossible without cutting quality." He questioned whether such reductions lead to the use of inferior materials, reduced road thickness, or incomplete work execution. Contractors have also acknowledged the unhealthy nature of this trend. Vijay Nayudu, president of the NMC Contractors Welfare Association, revealed that the practice of quoting extremely low rates began post-Covid, as contractors struggled with idle machinery and manpower. "Many contractors started bidding below rates merely to keep their operations running, but this has now evolved into a harmful trend that affects everyone and degrades work quality," he explained.
Specific Projects and Broader Civic Impact
The controversy gained momentum after the standing committee, chaired by Shivani Dani Wakhare, approved two key tenders at sharply reduced rates: a cement concrete road project in Dharampeth zone awarded 38.90% below estimate and a box cell bridge project in Laxmi Nagar zone cleared 37.18% below the projected cost. Additionally, several other works, including cement roads, a retaining wall, and a kids' library project, were approved at significantly lower-than-estimated rates. Experts warn that such aggressive underbidding not only jeopardizes quality but also increases the long-term financial burden on the civic body. With existing complaints about the quality of civic works in various parts of Nagpur, these approvals have raised fears that ultra-low bidding could become a major civic liability, undermining public trust and infrastructure integrity.
