Revert to demand draft system to check low bid tenders: Contractors urge NMC Nagpur: City contractors have raised concerns about the increasing trend of bidders quoting abnormally low rates for civic projects, urging the Nagpur Municipal Corporation to revert to the demand draft system for performance security instead of bank guarantees. The NMC Contractors Welfare Association, led by president C Vijay Nayudu, submitted a representation to standing committee chairperson Shivani Dani Wakhare, highlighting that contractors are quoting 30% to 40% below estimated rates, which compromises work quality and creates unfair competition. The association warned that such practices harm legitimate contractors and encourage risky bids, leading to potential project failures and delays. The contractors argued that the current system allows unscrupulous bidders to secure contracts at artificially low prices, often without the financial capacity to complete projects. They proposed making demand drafts mandatory for performance security, requiring bidders to submit the draft physically within three working days of tender submission. This, they claimed, would deter unrealistic bidding, prevent contractors from withdrawing after winning bids, and ensure only financially viable bidders participate. The association also emphasized that genuine contractors are being sidelined by aggressive underbidding, while others take on excessive financial risks to secure work. The representation further suggested additional reforms, including mandatory upload of location sketches and detailed drawings before tendering, random site inspections prior to finalizing estimates, and a streamlined process for revising estimates if errors are identified.#nagpur_municipal_corporation #nmc #shivani_dani_wakhare #nmc_contractors_welfare_association #c_vijay_nayudu
