Dear All,
Hello!
As we all know, everybody in business is to earn a profit, and so is the contractor. What I mean to say is if we expect the contractor to fulfill all statutory compliances and pay wages to laborers as per the minimum wages fixed by the government, then don't you think the principal employer should ensure that a contractor should make a profit?
Now, what is happening in most government establishments is that due to cut-throat competition, the contractor is quoting very minimal profit (up to Rs 1/- only) as the contract is awarded to the lowest bidder, i.e., the L-1 bidder. Because of this policy of awarding tenders to the L-1 bidder, the contractor is not quoting a profit. Consequently, a contractor starts earning by paying lower wages to laborers and not fully meeting statutory liabilities.
Are there any guidelines or directives from the Central Vigilance Commission or any government authorities that govern tendering and authorize the principal employer (a government organization, defen
From India, Mumbai
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8Hello!
As we all know, everybody in business is to earn a profit, and so is the contractor. What I mean to say is if we expect the contractor to fulfill all statutory compliances and pay wages to laborers as per the minimum wages fixed by the government, then don't you think the principal employer should ensure that a contractor should make a profit?
Now, what is happening in most government establishments is that due to cut-throat competition, the contractor is quoting very minimal profit (up to Rs 1/- only) as the contract is awarded to the lowest bidder, i.e., the L-1 bidder. Because of this policy of awarding tenders to the L-1 bidder, the contractor is not quoting a profit. Consequently, a contractor starts earning by paying lower wages to laborers and not fully meeting statutory liabilities.
Are there any guidelines or directives from the Central Vigilance Commission or any government authorities that govern tendering and authorize the principal employer (a government organization, defen
From India, Mumbai
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Dear all,
As I was short on space, I am continuing. Are there any guidelines or directives from the CVC or any government authority that govern tendering? Do these guidelines give authority to government organizations like defense to prepare a benchmark rate (reasonable rate) by analyzing the market and include it in the tender conditions? This would mean that a bidder quoting below that benchmark rate would be disqualified, and a bidder quoting a reasonable rate would be awarded. This may help in preventing the exploitation of laborers, ensuring that contractors are forced to pay minimum wages and fulfill all compliances.
Thanks.
Regards,
Farukh
From India, Mumbai
Acknowledge(0)Amend(0)
As I was short on space, I am continuing. Are there any guidelines or directives from the CVC or any government authority that govern tendering? Do these guidelines give authority to government organizations like defense to prepare a benchmark rate (reasonable rate) by analyzing the market and include it in the tender conditions? This would mean that a bidder quoting below that benchmark rate would be disqualified, and a bidder quoting a reasonable rate would be awarded. This may help in preventing the exploitation of laborers, ensuring that contractors are forced to pay minimum wages and fulfill all compliances.
Thanks.
Regards,
Farukh
From India, Mumbai
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