Hearing the delegation and after reading the concerns and solutions, R.K.Pandey said that NHAI would think and discuss these suggestions and revert.
In the letter, CERA has asked NHAI to add certain clauses in tendering process and eligibility qualification for bidders so as to safeguard the interests of construction equipment rental companies.
- NHAI should take NOC (No objection Certificate) or Affidavit from infrastructure/construction company-contractors/subcontractors before awarding them the contract, that the principal contractor and sub-contractor has cleared dues of vendors in previous projects. Make this a factor in credit rating of infra companies.
- NHAI should fix stipulated time for contractors/subcontractors for payment to their vendors from the date of invoice.
- NHAI should create a software wherein the contractors/subcontractors and all vendors including the equipment rental companies are registered so that the amount released by NHAI to contractors can be tracked whether the contractor/subcontractor is clearing the invoices of vendors also. NHAI can charge a fees for this tracking facility. In today’s time, a foolproof sourcing technology can be created based on digital signature whereby all interested parties' payments can be protected and secured through various technology platforms.
- NHAI should not issue a completion certificate to any contractor/sub-contractor unless they have cleared the payment of all their vendors. Such a mechanism is in place in Singapore and is highly effective.
- NHAI should add a clause in their tender eligibility that the contractor/sub-contractor should hire construction machinery/equipment from a CERA member only as CERA’s members are certified for skilled operators/technical staff and latest technology construction equipment.
During the meeting, CERA also said that NHAI Chairman in his speech at EXCON 2019 urged to reduce the cost of construction which is possible if equipment are taken on rental basis, thus reducing the burden of cost of equipment on that particular project.
CERA delegation members who attended the meeting were Satin Sachdeva, Aman Khattar, Rohit Sachdeva, Inderjeet Singh, and Jannat Wadhwa.