Road contractors warned to lower bid prices

Road contractors were yesterday advised not to continue tendering for road works at extremely high prices for otherwise their bids would not be accepted.

"The work has to be carried out and it is our wish that you do it. But we will not be paying exaggerated rates for it and the work will still be done. It is your choice," Roads Minister Jesmond Mugliett told a meeting for contractors yesterday. The minister said the meeting was held because he believed that if the two sides understood one another, it would be easier to make progress.

According to a ministry spokesman, contractors have been bidding at substantially higher rates than the estimates prepared for the Public Transport Authority's roads directorate even after the directorate revised its rates upwards by 25 per cent.

A total of Lm42 million worth of road works are planned over the next three years, using money budgeted for the purpose by the government as well as funds from the Italian financial protocol and EU structural and cohesion funds. This was besides other works related to the Viset, Tigné, Cottonera and local council capital projects, he said.

Mr Mugliett said the government had no intention of damaging contractors but it did not want to pay high amounts just because this was a time of opportunity. The volume of work and the assurance of contracts for the long term should lead to better prices, not higher ones, he said.

A lot of interest was being shown by foreign contractors, he reported.

Tenders at exaggerated prices would not be accepted. So if the pattern persisted, alternative ways to carry out the works would be found - more international tenders would be issued for residential roads and new road building techniques would be introduced to enable different contractors to tender for such works.

Mr Mugliett said there were contractors who wanted to increase their profits without increasing the amount of work they did.

His interest was to implement the planned programme of road works while giving the people value for money through quality work completed on time at a good price.

While contractors had to earn a good profit, the work done had to last throughout the stipulated time.