The Hindu : Andhra Pradesh / Hyderabad News : Contractor's suicide brings work to a nought

Online edition of India's National Newspaper
Thursday, Sep 09, 2004

Andhra Pradesh

Andhra Pradesh - Hyderabad

Contractor's suicide brings work to a nought

By M. L. Melly Maitreyi

HYDERABAD, SEPT. 8. The jinxed Telugu Talli flyover that has been in the making for the last six years and the butt of sardonic humour and ire of Domalguda residents added a tragic twist to its saga with the suicide of the contractor executing the project.

Hurdles aplenty

The flyover has made none happy. The project apparently sanctioned in haste had evoked criticism from many quarters right from its inception. Work had to be stalled and re-commissioned time and again as a series of changes had to be made in the plan, alignments and design due to objections and hurdles coming up from various quarters. Then there were problems with land acquisition.

The Telugu Talli flyover contract was bagged by Soham Constructions, which had executed the Basheerbagh flyover well in time.

The Rs. 15.47-crore flyover connecting the major link road Liberty towards Secunderabad was awarded to the contractor in October 1996, with a contract period of 18 months.

Now a question mark hangs regarding its completion with the contractor's suicide.

Government blamed

The Builders Association of India, Andhra Pradesh Centre, squarely blames the Government for the unfortunate death and says the inordinate delay was due to indecisiveness of various Government departments.

The association wants the Government to reimburse the loss of about Rs. 15 crores suffered by the contractor in the process.

Cost escalation

When the work was awarded to the contractor in 1996, the price of cement was Rs. 75 per bag, while now it is Rs. 150. A tonne of steel cost Rs. 14,000 then as against Rs. 29,000 now. With steel and cement being major components, the project costs have almost doubled, they argue.

Though there was a provision in the agreement between HUDA and the contractor that the latter should complete the project first irrespective of cost escalation, the contractor pleaded that since the delay was not due to execution but factors not under his purview, he be sanctioned the price variation in the material cost which was beyond his means.

HUDA instead offered to make third party payment so that work could progress without further delay.

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