Visakhapatnam: MES Builders Assn urges interim relief for ongoing projects
The list includes grants to be paid for the difference between actual price escalation and escalation as per formulae to the contractors
Visakhapatnam: Given the unprecedented rise in construction material cost, MES Builders Association of India demanded an interim relief for the ongoing projects.
The list includes grants to be paid for the difference between actual price escalation and escalation as per formulae to the contractors. The contractors who opt for the same should furnish bank guarantee for an equivalent amount in favour of the project implementing authority for suitable periods, among others.
From post pandemic repercussions to the impact of the Russia-Ukraine war, the association members pointed out various factors that led to the increase in the cost of the construction material.
Chairman of the association C Bala Satish said most migrant workers left the work sites to their hometowns ever since the pandemic had broken following subsequent lockdowns.
The impact of Covid-19 on the infrastructure and construction work being carried out by MES contractors all over the country, the association workers said, has been extensive and damaging. Several restrictions were imposed by both Central and state governments to control the spread and impact of the virus. This had consumed time and cost overrun of work on projects, and adversely impacted supply chains, plant, equipment, materials and manpower, they pointed out.
In connection with this, the association representatives submitted a memorandum to Visakhapatnam MP MVV Satyanarayana with a request to forward the same to the PMO, Finance and Defence departments.