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CEAI urges PM to revisit existing tendering system of least cost selection method

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Representative image.Consulting engineers’ lobby group CEAI has urged Prime Minister Narendra Modi to revisit the age-old existing tendering system based on the least cost selection method or L1 in the country, a statement said. Consulting Engineers Association of India (CEAI) also stressed on awarding contracts based on global tendering process to make the country truly self reliant.

“CEAI…has urged him to revisit the age old existing tendering system in the country based on the least cost selection method or L1 needed to be changed post haste for consultancy works as well as construction works and procurement of goods,” it said in a statement.

“For complex projects like expressways, tunnels, power plants which require specialised state-of-art-technology, these should be awarded on quality and cost-based selection (QCBS) 90:10 basis,” it said.

For highly complex projects, like nuclear power plants, space technology, state-of-art military hardware, quality-based-selection should be adopted.

“No works, goods or consultancy services should be procured on least cost basis. For all such projects, the standard deviation method should be applied to remove abnormally low rates – which is the ill of all problems,” CEAI President Ajay Pradhan said.

To successfully launch the ‘Atmanirbhar Bharat’ vision, no work, however, should be awarded to an international company. The work should be awarded to a joint venture of an Indian company and an international company, with the Indian firm bringing the local knowledge and financial strength to the consortium, and the international firm, the technical knowhow, K K Kapila, Chairman, Diamond Jubilee Committee of the CEAI said.

In all consultancy assignments requiring an international company, minimum 40 per cent key staff must be provided by the Indian company besides all logistics like office facilities, operations, vehicles and local administration, Kapila said.


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