Mumbai-Nagpur expressway: Maharashtra offers 5% bonus to beat deadline
A bonus of up to 5 per cent of total contract cost will be offered to firms that will complete the construction of 701-km-long Mumbai-Nagpur Super Expressway before deadline.
A bonus of up to 5 per cent of total contract cost will be offered to firms that will complete the construction of 701-km-long Mumbai-Nagpur Super Expressway before deadline. Maharashtra State Road Development Corporation (MSRDC) executing the project has decided to incentivise early completion of the Expressway, also known as Samruddhi Mahamarg.
MSRDC expects that such bonuses are required and help avoid rise in construction cost due to delay in construction of the project. Radheshyam Mopalwar, MD, MSRDC, said, “Early completion is also beneficial for people who are going to use it and it is necessary to incentive for avoiding time and cost overruns. Such type of bonuses are also given by the National Highway Authority of India (NHAI).”
NHAI had in the past announced, the bonus up to 10 per cent for completing the civil construction before the deadline. Infact, the National Highways and Infrastructure Development Corporation (NHIDCL), has also made provisions to give special bonus of up to 10 per cent to the company that will construct 14-km-long Zojila tunnel between Kashmir and Ladakh, in case the construction is completed in six years instead of the anticipation of seven years.
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Similarly, the MMRDA is offering incentives in form of maximum five per cent bonus for contractors who will complete civil construction of proposed Metro corridors in Mumbai Metropolitan Region before deadline.
In case of Mumbai-Nagpur Expressway, MSRDC has said that in the event that the project completion date occurs prior to the scheduled date, the contractor shall be entitled to receive a payment of bonus but subject to a maximum of 5 per cent of the contract price.
By Mehul R Thakkar, DNA