Thiruvananthapuram: Considering the reluctance of contractors in taking up road construction works due to skyrocketing price of raw materials, the finance department has decided to pay the increased amount of bitumen to contractors. The department has issued a government order in this regard recently.A section of contractors had abstained from participating in tender process due to the price rise that did not reflect on the estimate prepared by the PWD. There was a 33% hike in the price of bitumen in the past six months. Following protest by contractors, PWD minister G Sudhakaran sent a letter to finance department last month. The decision by the finance department to allot the additional amount to contractors was made at a meeting held in October-end.“The price difference of bitumen as on the date of closing tender and the date of invoice (invoice date on or after November 1, 2018) will be paid to the contractor on the production of original invoice for the actual quantity consumed for the works within original term of completion. Price difference will also be allowed to all works with extended term of completion,’ said the order.The finance department has also asked PWD to publish the changes in the bitumen rate of petroleum corporation for the previous years for identifying the rate on closing date of tender.Government contractors’ association president Varghese Kannampally said that not just bitumen, price rise of other raw materials such as cement, steel and quarrying products should be considered. “A 5% variation of quoted amount will be compensated for big budget projects. This must be applicable to all projects,” he said.Recently, Sreedhanya constructions had backtracked from the second phase of Karamana-Kaliyikkavila road widening project even though the firm was given the contract quoting 8% excess of the estimated amount. However, the firm said they could not execute the work even at the 8% excess due to price rise. This forced PWD to retender the project. All the three bidders who participated in the latest tender too quoted excess amounts – 15%, 25% and 46%. The tender is now under the review of PWD secretary.

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