For Projects being
executed under National Highways Development Project (NHDP),
subcontracting upto fifty percent is permissible under Contract
Agreement, which is based upon FIDIC Document. However, the
contractor has to seek prior approval of the National Highways
Authority of India (NHAI) before subcontracting any part of
work assigned to them. Many contractors including foreign contractors
subcontract the work under the above provisions.
In case of
BOT projects, the concessionaire may undertake construction
work by himself or through a contractor.
The following
steps have been taken to ensure reduction of the cost of highway
construction :
- NHAI is engaging reputed Design
Consultants for preparation of Detailed Project Report.
- The size of contract package
is decided based on techno-economic considerations. Substantial
use of latest construction equipment, such as hot mix plant,
crushers, pavers etc., also has helped in overall cost reduction.
- Mobilization and equipment
advances are given to contractors for better mobilization
and to reduce cash flow problems for timely completion of
projects.
- Locally available material
and manpower are used to the extent feasible.
(v) NHAI
has adopted modern construction management techniques
for project implementation, which also leads to reduction
in cost.
This information
was given by the Minister of State (Independent Charge) for
Road Transport and Highways, Maj. Gen. (Retd.) B.C. Khanduri
in a written reply to a question of Prof. Ummareddy Venkateswarlu
in Lok Sabha today.
