Ahmedabad Municipal Corporation’s Road Committee has held back a proposal seeking both an extension and construction-cost compensation for a delayed fire brigade headquarters and multi-level parking project in Danapith, after chairman Jainik Vakil demanded an explanation for the 26-month delay.
The project, being constructed by Satyam Construction, is nearing completion after multiple delays, according to a report by Ahmedabad Mirror. The proposal placed before the committee sought a revised deadline as well as compensation for increases in the prices of steel and cement.
Vakil questioned why the project had been delayed, what had caused the delay and who was responsible for it. After examining the proposal during the Road Committee meeting, he kept it pending and directed municipal officials to submit a detailed explanation before the request could be considered further.
The project combines a new fire brigade headquarters with a multi-level car park in the Danapith area. The report did not specify the original project cost, the initial completion deadline, the revised completion date or the amount of compensation sought by the contractor.
The committee’s action places the focus on how municipal construction contracts deal with delays and changes in input prices. In this case, the request for additional payment came after a project delay of 26 months, making the explanation for the delay central to the committee’s decision on whether to approve the proposal.
The Road Committee also returned a separate proposal for a new minor bridge on the Pirana–Piplaj Road. The plan involves demolishing an existing minor bridge over a drain and replacing it with a three-lane bridge.
Committee members identified shortcomings in the tender process for the bridge project. Vakil said a project scheduled for completion within one year should not contain a provision allowing additional payments because of increases in construction costs.
He directed officials to withdraw the proposal and issue a fresh short-term tender without a provision for additional payments linked to construction-cost increases. The report did not provide details of the tender deficiencies or disclose the estimated cost of the bridge replacement.
The two decisions place municipal project administration and procurement procedures under scrutiny. One proposal has been held back pending an explanation for a prolonged delay, while the other has been sent back for a fresh tender after concerns over its escalation clause.
The next steps are for Ahmedabad Municipal Corporation officials to submit a detailed explanation for the fire brigade headquarters project delay and to withdraw and reissue the tender for the Pirana–Piplaj Road bridge without the disputed cost-escalation provision.
