GMDA: Only a few buyers, contractors blame delay in payment for GMDA projects. Gurgaon News – Times of India

Gurugram: Gurugram Metropolitan Development Authority (GMDA), since its inception in 2017, has been facing a shortage of bidders for its projects, with several contractors who recently contacted TOI and said that they would not be able to submit their bids with their third party work verification requirement. Not willing to work with authority due to issues. and delay in payment due to frequent transfers of its officers.
While GMDA has defended third-party verification and other steps, calling them essential for quality work, it acknowledged that it is issuing the same tenders multiple times. The tendering process, in turn, delays projects that benefit city residents and commuters, leaving them to grapple with issues for a long time.
Recently, the authority has floated five tenders for the second time, informed the authorities, either due to very few bidders for the first time or those that came forward did not meet the eligibility criteria. Two of these tenders involve the construction of new roads. One tender is for road strengthening project and the other is for installation of traffic control devices like solar cat eyes, metal delineators and signboards on roads under the jurisdiction of GMDA. The fifth tender calls for acquiring advertising rights and displaying advertisements in 200 buses operated by Gurugram Metropolitan City Bus Limited (GMCBL).
The contractors expressed dissatisfaction with the GMDA system of checks and balances. “GMDA’s requirements are very specific, and officials are very forgiving if work is over or underdone. Another major problem is the need for third party verification of every job before any payment can be made,” said one contractor, who did not wish to be named. Talking to TOI on the condition of publication, said.
The contractor said that GMDA officials monitor the work at every site round the clock, but the contractors get paid only when a third party agency verifies the work. “Does GMDA not have confidence in itself? Instead of GMDA officials, if a third party is in charge of supervision, the process will be expedited, allowing us to get payments on time,” the contractor said.
Small contractors face the most problems due to delay in payment, projects worth Rs 1-2 crore have only a few takers. “The payment process is very lengthy. Big contractors can still manage as they have regular business, but small contractors face serious issues,” said another contractor, who did not wish to be named.
GMDA officials also confirmed that only a few bidders come forward for smaller projects. A look at the recently re-invited tenders by GMDA also confirms this. Four out of the five projects involved an expenditure of less than Rs 1 crore.
The contractors also complained about frequent transfers of GMDA employees. “Employees change frequently; Even top officials are reshuffled every few months. New officers come, we explain everything to them, but they stay only for four-five months. Then another comes, and the cycle starts all over again, adding to the delay in payments,” said a contractor on condition of anonymity.
“We execute many tasks based on verbal understanding which will be included in the billing at the time of payment. If we wait for the papers before doing such tasks, the project will be delayed. But when the authorities change, then We have to explain and justify the demand for certain payments,” said the contractor.
Others said they have issues with the GMDA but are willing to work with the Public Works Department (PWD) or Gurgaon Municipal Corporation (MCG).
The contractors who spoke to TOI claimed that the pool of contractors willing to work for GMDA is rapidly shrinking. “Most of the contractors who are doing projects now are new, from Delhi, Hisar Or Rohtak, and they have no idea about the authority. However, after facing the same issues, they do not come back,” said a contractor.
When contacted, GMDA officials said that the situation is improving. “We are now approaching contractors to motivate them to participate in the bidding, ensuring that we get a large pool of bidders for every project. We ensure that there is good competition among the bidders and the government gets the best possible price,” said GMDA CEO Sudhir Rajpali, Presently, GMDA is seeking bids in the e-tender route. “It allows anyone from the country to bid for a project at any time. Now, new bidders are coming in, which is a healthy trend,” Rajpali added.
The CEO also stressed that third-party verification should be “appreciated”. “We do not make any payment without verification. We have some reputable third-party agencies to check whether the work meets our requirements and whether it is quality work. Those who are reluctant to get their work verified can work with other agencies, but we need to ensure our standards,” Rajpal said.

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