Consulting engineers'' apex body CEAI on Tuesday urged the Centre to do away with the conventional L1 tendering and procurement system.
The Least Cost Selection method or L1, which is the award of work to the lowest financial offer, has been a prevalent procurement strategy for procurement of works by contractors, consultants and purchase of goods since long in the country.
In the post coronavirus situation and as a necessary first step towards ''Aatmanirbhar Bharat'', the CEAI said, it has urged the government to revisit and say goodbye to the age-old conventional L1 tendering and procurement system in the country.
"This has often resulted in poor quality of works and goods. This necessitates an urgent need to change the selection mechanism and move towards the concept of ''Workable Rates'' Procurement Mechanism," the Consulting Engineers Association of India (CEAI) said in a statement.
The changed procurement system, which offers various alternatives to derive workable rates in a transparent manner, will give opportunities to competent firms to plan a project or a bid on workable rates, thereby facilitating better management and execution which will reflect on quality and timelines, said K K Kapila, Chairman, Infrastructure Committee of CEAI.
The L1 system is plagued with delays of time and cost overruns, Kapila said and added that it will ultimately lead to time consuming arbitrations and higher costs.
“The change from L1 needs to be brought about as a matter of great urgency in the country. How can we buy bullet proof jackets at L1? How can we buy PPE kits on L1? Do we need to secure our forward line or kill them because we refuse to bring the requisite change in the system. Let us wake up to the immediate requirement of this essential change post haste and move forward if we have to achieve the mission of ''Aatmanirbhar Bharat," Kapila added.
CEAI president Amitabha Ghoshal opined that the heart of this change lies in creating awareness in the minds of the general public that the focus on ''Least Cost Factor'' has resulted in compromises in achieving world class infrastructure or purchase of quality goods as well as services.
The country needs a public procurement mechanism which focuses on quality and cost in all activities in public domain, he said.
The CEAI, which has 300 members, represents the Indian Engineering Consultancy professionals at the International Federation of Consulting Engineers.
The Least Cost Selection method or L1, which is the award of work to the lowest financial offer, has been a prevalent procurement strategy for procurement of works by contractors, consultants and purchase of goods since long in the country.
In the post coronavirus situation and as a necessary first step towards ''Aatmanirbhar Bharat'', the CEAI said, it has urged the government to revisit and say goodbye to the age-old conventional L1 tendering and procurement system in the country.
"This has often resulted in poor quality of works and goods. This necessitates an urgent need to change the selection mechanism and move towards the concept of ''Workable Rates'' Procurement Mechanism," the Consulting Engineers Association of India (CEAI) said in a statement.
The changed procurement system, which offers various alternatives to derive workable rates in a transparent manner, will give opportunities to competent firms to plan a project or a bid on workable rates, thereby facilitating better management and execution which will reflect on quality and timelines, said K K Kapila, Chairman, Infrastructure Committee of CEAI.
The L1 system is plagued with delays of time and cost overruns, Kapila said and added that it will ultimately lead to time consuming arbitrations and higher costs.
“The change from L1 needs to be brought about as a matter of great urgency in the country. How can we buy bullet proof jackets at L1? How can we buy PPE kits on L1? Do we need to secure our forward line or kill them because we refuse to bring the requisite change in the system. Let us wake up to the immediate requirement of this essential change post haste and move forward if we have to achieve the mission of ''Aatmanirbhar Bharat," Kapila added.
CEAI president Amitabha Ghoshal opined that the heart of this change lies in creating awareness in the minds of the general public that the focus on ''Least Cost Factor'' has resulted in compromises in achieving world class infrastructure or purchase of quality goods as well as services.
The country needs a public procurement mechanism which focuses on quality and cost in all activities in public domain, he said.
The CEAI, which has 300 members, represents the Indian Engineering Consultancy professionals at the International Federation of Consulting Engineers.