Assn seeks 2.5% bank guarantee for tribal contractors, control on ‘commission’

ITANAGAR, Oct 15: The All Arunachal Contractor’s Welfare Association (AACWA) on Thursday submitted a memorandum to Chief Minister Pema Khandu, reiterating its suggestion that the state government adopt in the next cabinet meeting 2.5 percent bank guarantee (BG) or performance guarantee (PG) for tribal contractors on all works executed under the state government.

It explained that the departments in the neighbouring state of Assam have adopted 2.5 percent BG/PG amount of the total tender values after getting work order for ST/SC contractors, but the departments here have 5 percent BG/PG as security deposit.

The association also pointed out that “unseen expenditure” for getting work and related payment affects the quality of work and its progress.

“Many contractors are facing the problem of collection or deduction of 15 to 20 percent from each bill in the form of commission. When we discuss the same with the officers concerned, they tell us that it happens due to expectations from top to bottom,” the association said, and sought control on such unseen expenditures.

The AACWA also sought enhancement of the tender limits for Class 5 to Class 3 categories under the state PWD, and proposed that the tender limit be increased for Class 3, 4 and 5 contractors, as it felt that “the work order upto an amount of Rs 50 lakhs would victimize contractors registered under these three classes as their tender limits are only Rs 50 lakhs and Rs 20 lakhs.”

Saying that the Arunachal Pradesh District Based Entrepreneurs and Profession (Incentive Development and Promotion) Act, 2015 creates a “huge gap among contractors’ fraternity and the common public due to restriction of doing business in other districts,” the association also suggested modifying the act.