Nagpur: The controversy over ultra-low bids in Nagpur Municipal Corporation (NMC) projects is intensifying, with civic activists, a former senior engineer, and now contractors warning that the trend could lead to serious compromise in construction quality and long-term damage to public infrastructure.On Wednesday, the NMC standing committee cleared two civic works worth over Rs57 lakh, both awarded below the estimated cost. Retired NMC chief engineer Rajeev Gaikwad said such drastic reductions do not make technical sense. According to him, the numbers themselves indicate that something is fundamentally wrong.“Contractors normally don’t quote beyond 10%-12% below the estimate because that itself is the profit margin in most public works contracts. If bids are going 30%-40% below, it means the contractor can’t make profit and also cannot execute the work properly,” Gaikwad told TOI.He explained that govt estimates are based on the District Schedule of Rates (DSR), which is prepared after a detailed market survey. “The DSR includes the cost of material, labour, transport and a fixed profit margin of around 10%. If someone is quoting 40% below that, then either the work quality will be compromised or the entire work will not be executed as per specifications,” he said.Gaikwad also dismissed the argument that market prices may have fallen drastically. “If market rates had dropped so much, the DSR too would have come down. On the contrary, prices of cement, steel, bitumen and labour are increasing every year,” he added, warning that what was once an occasional practice is now turning into a dangerous trend.Traffic activist Ashok Karandikar also raised similar concerns earlier, calling 30%-40% underbidding “impossible without cutting quality”. He questioned whether the reduction in bid is leading to use of low-quality material, reduced road thickness, or incomplete execution of work.Even contractors have now admitted that the trend is not healthy. NMC Contractors Welfare Association president Vijay Nayudu said the practice of quoting extremely low rates began after Covid, when contractors were struggling with idle machinery, equipment and manpower. “Many contractors started quoting below rates just to keep their machines and staff running. But it has now become a trend, and it is harming everyone apart from affecting the quality of the works,” he said.The controversy erupted 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. Several other works, including cement roads, a retaining wall and a kids’ library project, were also approved at significantly lower-than-estimated rates.Experts say such aggressive underbidding does not just affect quality but also increases the long-term financial burden on the civic body. With repeated complaints already surfacing over the quality of civic works in several parts of the city, the latest round of approvals has triggered fears that ultra-low bidding could soon turn into a major civic liability.
