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The BMC (Brihanmumbai Municipal Corporation) has proposed a massive upheaval of existing roads across key points of Mumbai at a cost of Rs 118 crores. This project will see the improvement of concrete roads as well as side strips in areas like Borivali, Gorai, Magathane, Goregaon, Malad, Malwani, and others.

However, as per the proposals, this project will take 16 months to complete, which (without any delays) means motorists can expect improved roads by monsoon 2021. While road repair works were proposed last year, BMC’s decision to change to a 60:40 payment system with its contractors led to significant delays. As per this deal, 60% of the cost will be paid upfront while 40% will be paid during the defect liability period or DLP. 

While renegotiations with the contractors meant further delays, they are now expected to possess a softer stance to reach an amicable agreement. It is worth mentioning that contractors increased their estimates significantly following the 60:40 system put in place by the BMC.

More recently, the BMC rolled back on its 20% bonus plan for the contractors owing to the fact that it would cause losses to the agency. The plan suggested that the BMC would pay an additional 20% of the proposed cost so that the contractors can agree to the 60:40 method. Municipal Commissioner Praveen Pardeshi has mentioned that contracts won’t be awarded if the bids are too high or exorbitant. He also hinted that the BMC may change back to a 90:10 or 80:20 model in the future.

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