Pawas from PMGSY AMs Project Consultants views on L1 Bidding System

Quality and safety in infrastructure depend on the people enforcing standards, be it the contractor, PMC, or client, and not on whether a project is awarded to L1 or at a higher rate. The root cause of poor quality lies in corruption, which runs across both the government and private sectors.

Pawas
Senior Project Manager
AMs Project Consultants

Price Is Not the Sole Determinant of Quality

The assumption that awarding projects to the L1 bidder inevitably compromises quality and safety, and that paying 20–30% higher rates will automatically ensure better outcomes, is misleading. Price alone does not determine project quality. In reality, corruption and negligence, both in government and the private sector, are the primary culprits. For example, L&T was awarded a ₹2,000 crore water supply project in Varanasi, yet the quality of work was negligible. NCC, despite receiving contracts at higher rates, witnessed three ESRs collapse within just two years. Similarly, Ceinsys Tech, acting as the TPIA, secured projects at competitive rates, but results were equally unsatisfactory.

Accountability and Competence the Real Drivers

The deeper issues lie in weak DPR preparation, design flaws, and poor supervision, whether from the client, PMC, or contractor side. In many cases, corrupt or complacent individuals within contractor teams further undermine quality. Ultimately, the people responsible for enforcing standards, whether at the site or managerial level, play a decisive role in determining safety and workmanship.

Quality and safety have little to do with whether the project is awarded at the lowest bid or a higher rate. There are enough examples of projects awarded at higher prices still delivering poor results, and others awarded below estimates achieving excellent outcomes. Integrity, skill, and accountability, not tendered price, are what drive lasting quality in infrastructure.