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Consultant Defends 30% Bid Hike for Ahmedabad Road Project

by TLAteam December 5, 2024December 5, 2024
written by TLAteam December 5, 2024December 5, 2024
Consultant Defends 30% Bid Hike for Ahmedabad Road Project

The Ahmedabad Municipal Corporation (AMC) has encountered a significant challenge in its road construction project, which aims to connect Visat Circle to Zundal Circle in Chandkheda. The estimated cost for constructing the 3.65 km stretch was pegged at Rs 61.14 crore, but the lowest bid received has raised the total project cost to Rs 79.78 crore, a 30% increase over the original estimate. The reasons behind this substantial escalation have been attributed to a combination of theft, labour charges, and complications arising from heavy traffic in the area, as explained by the consultant.

Business News

After two formal requests from the city engineer seeking clarification on the overrun, the consultant provided an in-depth justification for the revised bid. These included previously unaccounted-for costs such as labour cess, income tax, and carting, as well as unexpected damages caused by site conditions and the theft of materials. The consultant also highlighted additional labour costs due to delays caused by the heavy flow of traffic in the area, which necessitated further workforce mobilisation. Notably, a 30% price hike across 60 individual project items contributed significantly to the overall increase in cost.

The proposed project is part of AMC’s initiative to improve city entry points and urban infrastructure. The plan for the 3.65 km stretch includes a 60-meter wide road with a dedicated BRTS corridor, service roads, footpaths, vending zones, recreational spaces, and parking facilities, making it a vital component of the city’s evolving urban landscape. Despite the rising costs, the upgrade promises to enhance city connectivity and support the growing demands of Ahmedabad’s expanding urban population.

From a sustainability perspective, the inclusion of green buffer zones and landscaping is expected to improve the overall environmental footprint of the project, mitigating the impact of urbanisation. However, the unforeseen cost escalations highlight the challenges of executing large-scale urban projects in cities grappling with congestion, theft, and site-related issues. As the proposal awaits final approval from the standing committee, it is clear that both the AMC and its consultants face mounting pressure to balance costs, delays, and sustainability objectives in the city’s ambitious infrastructure overhaul.

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