PWD (B&R) scraps agreements of 3 projects worth crores in Ambala

Agreements of three projects, including a major Civil Hospital extension building project in Ambala Cantonment, have been terminated by the PWD (B&R) following continuous delay in the work and disputes with the construction agency.

While the hospital extension building and residential quarters for doctors were under construction in Ambala Sadar, a government women's college building was under construction in Ambala City. The projects have already missed deadlines.

As per information, while the agreement amount of the extension building project was Rs 22.81 crore, it was Rs 11.76 crore and Rs 24.98 crore for women's college and doctors’ residential quarters, respectively. The women's college was to be completed in 2022, and the other two projects were scheduled to be completed by 2021.

However, due to litigation, the projects have been lying incomplete.

Sources said the department had imposed penalties (10 per cent of agreement amount) on the firm for the delay in work. All these projects were being handled by one firm, and due to poor performance and delay in the work, the agreements had been terminated.

After terminating the agreements, the department has decided to terminate the agreement of the Mini Secretariat project in Ambala City, too. The agency had nine projects, of which three have been terminated, and another one (Mini Secretariat) is set to be terminated. The remaining five are in litigation.

Executive Engineer PWD (B&R) Ritesh Aggarwal said, “Following continuous delay in the projects, the agency was repeatedly asked to expedite the work, and penalties were also imposed, but to no avail. The agency had challenged the penalties and went for arbitration. Due to litigation, the projects got further delayed. However, the arbitrator upheld the penalties and the matter was decided in the favour of the department.”

“The agreements with the firm have been terminated and a committee has been formed for the measurement of the work done so that tenders for the balance work could be floated. The committee will submit its report for all three projects by November 29, and the tenders will be floated by December 15. All efforts are being made to get the projects completed at the earliest,” he said.

Meanwhile, Chitra Sarwara, who contested the Assembly election unsuccessfully from Ambala Cantonment, said, “Corrupt practices in the execution of projects led to the delay and termination of the projects. Termination of agreements is not the solution and the government should order a high-level inquiry, as excess payments were made without the work and action should be taken against those responsible for the delay.”

Terminated projects

* Rs 22.81-cr Civil Hospital extension building project in Ambala Cantt

* Rs 11.76-cr government women's college building in Ambala City

* Rs 24.98-cr doctors’ residential quarters