Zero Point: Construction work ‘to start in fifteen days’

[LRE]

Construction work ‘to start in fifteen days’



Wednesday, July 23, 2008
Muhammad Anis

Islamabad

The Capital Development Authority (CDA) finally gave a go-ahead signal to a Karachi-based construction firm to start work on the Zero Point interchange project in fifteen days.

The decision to award the contract to the M/s Maqbool & Company was taken by the civic body’s management during a meeting chaired by CDA Chairman Kamran Lashari here on Tuesday. Members of the special committee, which was constituted to negotiate with the lowest bidder, attended the meeting.

“We have completed negotiations with the lowest bidder and it has been decided to award the contract of the mega development project to it,” CDA Member Engineering Mian Moinuddin Kakakhel told ‘The News’ after the meeting. Other members of the committee comprise Member Finance Kamran Qureshi, Member Planning Raja Nowsherwan, Director General Works Abdul Jabbar Malano and the project director.

The official said that the construction company has sought 15 days to mobilise its machinery, engineers and workers to start physical work on the project. “The lowest bidder did not agree to further reduce its bid in view increase in prices of petroleum products, particularly diesel, and cost of construction material in the open market,” he said.

The official said that the CDA management cancelled all other engagements to hold a meeting for finalisation of details of contract with the lowest bidder.

He said that the company had agreed to reduce its bid from 77 to 72 per cent above estimated cost of the project, saying that it would envisage Rs80 to Rs100 million of the total bid offer. The lowest among four bids was Rs1 billion above the estimated cost of Rs1.41 billion. “We have decided to award the contract of the project despite the fact it would be 72 per cent above the cost as it was estimated according to the 2006 schedule,” sources said.

Sources said that the committee accepted the bid after thorough consultation and negotiations with the firm in view of increase in prices of construction material and petroleum prices during last one year. The CDA Engineering Wing officials also visited Karachi to evaluate capacity and potential of the company to execute mega projects like the Zero Point interchange. “Now all obstacles in the way of the mega project have been removed,” the CDA member engineering said.

The construction firm would be given two years to complete work on the project, while progress of development work would be monitored regularly. Under terms and conditions reached between the two sides, the CDA would impose 10 per cent penalty on the contractor for the delay and financial incentive would be given on completion of the project before time.

A CDA official said that there would be no hurdle in smooth flow of traffic during first few months of the project. However, a plan has been prepared to divert traffic to Garden Avenue and Murree Road when development work on the project would be in progress.

The construction firm would also put in place all measures for safety of its construction workers and vehicles moving on nearby roads.

Sources said that the bid seems to be high according to the 2006 schedule, but had they decided to restart tender process the cost of project could have increased further due to various factors. “We would issue a letter to the company to start work on the project in a few days following which mobilisation advance would be released,” he said.

http://www.thenews.com.pk/daily_detail.asp?id=125764