No work in layouts named in agreement, but work done in those not included

Staff Reporter
Strange are the ways of Nagpur Improvement Trust (NIT) in monitoring the execution of works in various layouts. The lack of proper planning and monitoring of execution of works on part of NIT in layouts in Mouza Dabha and Mouza Borgaon in 2011-12 has attracted strictures in a audit report. In the audit, NIT has been indicted also for ‘irregular’ payment of price escalation to contractor concerned.
Under Phase-II of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), works of laying of water pipeline for west division in Mouza Dabha and Mouza Borgaon were awarded to a contractor. The works in Mouza Dabha were awarded at the contract amount of Rs 5,65,16,016 at 0.14 per cent below the estimated cost of Rs 5,65,95,249.75 with stipulated period of completion in 10 months from the date of issue of work order. Similarly, the works in Mouza Borgaon were awarded at the contract amount of Rs 3,23,56,970 at 0.12 per cent below the estimated cost of Rs 2,32,95,845 with stipulated period of completion in eight months from the date of issue of work order.
The audit report has pointed out though the works in Mouza Dabha were awarded at the contract amount of Rs 5,65,16,016, the total payment made to the contractor was Rs 6,57,32,643. In case of work in Mouza Borgaon, the total payment made to the contractor was Rs 3,68,88,156 as against the contract amount of Rs 3,23,56,970. However, the audit report reveals that the contractor actually executed works in layouts not included in the original agreement, and did not execute works in layouts that were named in the agreement.
“The contractor has not executed the work in some layouts though included in the agreement and executed work in layouts not included in the agreement,” the audit report has pointed out. As per the scrutiny of records, the audit officials observed that in Mouza Dabha, the contractor did not lay pipeline of total length of 8,432 Running Metre (Rmt) amounting to Rs 1,23,08,390 beside allied works, on one hand. On the other, the contractor incurred expenditure of Rs 1,67,11,133 on other layouts not included in the original agreement. Despite this, the contractor executed the quantity of work ‘in excess of 125 per cent amounting to Rs 29,74,293 of the agreement’, observed the audit team in its report.
In Mouza Borgaon, the contractor did not execute the work for total length of 2,027 Rmt amounting to Rs 29,16,210 beside allied works. Still, the expenditure incurred was Rs 61,30,979 and there was price escalation in case of works done in other layouts not included in the original agreement. Here too, the audit team observed in its report, the contractor executed the quantity ‘in excess of 125 per cent amounting to Rs 20,82,253 of the agreement’.
Thus, the audit report states, due to non-execution of pipeline work amounting to Rs 1,52,24,600 in the layout included in the tender agreement, and incurring expenditure on attachment of work without calling tender for the work amounting to Rs 2,28,42,112 beside payment of price escalation (in other layouts included in the agreement) was ‘irregular’.
Thus, works of pipelines worth Rs 43,39,390 including those worth Rs 32,68,630 in Mouza Dabha and worth Rs 10,70,760 in Mouza Borgaon were ‘not at all executed’. Besides, there was ‘non-coordination with NMC’ in respect of works worth Rs 1,08,85,210 included ‘irregularly’ in the tender already executed by NMC. The audit has dubbed attachment of work without calling fresh tender as ‘improper planning’.


‘NIT reply not acceptable’
When the audit team brought the matter to the notice of Nagpur Improvement Trust (NIT), NIT replied that some works in Mouza Dabha and Mouza Borgaon were not executed due to ‘non-demarcation of the site’.
Further, some other works in Mouza Dabha and Mouza Borgaon were not executed as there were existing pipeline laid either by NMC or housing society concerned at the time of execution of work, and those layouts were included ‘wrongly’ in the estimate ‘by oversight’. NIT also stated that payment for excess quantities beyond 25 per cent of original quantities was made at tender premium ‘at the interest of NIT’. NIT further stated that every fresh layout adjoining other layout were included in the contract for facilitating charging of water pipelines.
Interestingly, NIT did not furnish reply in respect of non-execution of some works in Mouza Dabha and Mouza Borgaon, and also reply regarding taking up of works subsequently that were not covered in original agreement. The audit team termed reply received from NIT as ‘not acceptable’ stating that planning was made taking into consideration of all aspects while sanctioning the estimate.
Further, the audit team has sought details of work done by NMC as also expenditure on work in Mouza Dabha and Mouza Borgaon. 

(10-10-15)