'Finalise uniform contract document between govt, contractors'

Noting that many of the procedures related to contracts between government and contractors were archaic, Urban Development minister Kamal Nath today asked Central Public Works Department (CPWD) to prepare a uniform standard contract document within three months.
"You will need to ensure...In three months time, please finalise a contract document and put up to the ministry that this is a model contract document. There must be consensus... We can consult the CVC," Nath told CPWD DG V K Gupta at a workshop on 'Unified Standard Contract Document' jointly organised by his ministry and Builders' Association of India.
He said a mindset change is required for preparing a policy framework.

Nath said the contract document has to be a fair document with the provision of 'completion bonus' along with the penalty clause. He said delay in payment amounts to financing of projects by the contractor which should be dealt with. The cost escalation factor should also be considered in the new document.
He said the contract documents of NHAI, Delhi Metro and other organisations had good features which could be emulated.