MoWHS Minister does not agree to limit tenders to two works per contractor

Tashicholing MP, Dil Maya Rai, questioned the Minister for Works and Human Settlement, Dorji Tshering, in the National Assembly, if Ministry of Works and Human Settlement can start a system of not awarding more than 2 projects at a time to one single contractor. She emphasized that it is obvious that a class ‘A’ contractor with ample money and resources tend to get many projects at a time. She also said that the prevailing practice may deprive other contractors of securing a project and corruption can become a common practice.

Lyonpo Dorji Tshering responded to the question saying, “It is more important to see the capacity, good record and capability of the contractors, in order to assign the work, than to distribute the work equally among all the contractors. From the contractors, two main things are expected; a good work quality and completion of work on time.”

He added, “In the past, the contractors were categorized as category A, B and C, while today, it is classified as large, medium and small categories of contractors.”

Contractors in the large category can take a project worth of Nu 1.5 billion (bn) and above, while an amount between Nu 0.5 million (mn) to 1.5 bn are assigned to medium category. Amount worth Nu 0.5 mn and below are assigned to the small category.

Lyonpo said, “Today small category contractors are allowed to take two projects at times, however, the amount should not exceed Nu 0.5 mn. Likewise, as per the rules and regulation, medium contractors are allowed to take up three projects at a time, and large contractors can take up 5 projects at a time.”

Meanwhile, he said that the ministry has implemented a new procurement procedure. In the next financial year, they will they will review the new procurement procedure.

Lyonpo informed the House that the contractors were evaluated by their BID capacity where they were awarded 10 marks in the past, while as per the new Procurement Procedure Rule 2019, the rating marks has been increased to 25 marks.

To get a project the contractors will have to get the pass mark that has been increased to 70 from 65 in the past, he added. “When the mark is increased, contractor would definitely work to get the pass mark. We will, therefore, study everything consulting all the relevant stakeholders including Finance Ministry, CDB and construction association.”

The ministry is confident that the new procurement rules and regulation will bring out the best work from the contractors in a systematic manner. “And this is our formula and this would make everything better and fair,” Lyonpo added.

He said no matter how much money or budget the government has, at the end of the day, the money is spent on every individual by constructing motorable roads, bridges, irrigation and drinking water supply and more.

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