CAG slams planning and execution of work at CWG stadia

August 5th, 2011 - 10:08 pm ICT by IANS  

New Delhi, Aug 5 (IANS) The Comptroller and Auditor General (CAG) Friday slammed all government agencies involved in the construction of the various venues for the 2010 Commonwealth Games, questioning the planning, execution and equipping of the facilities.

The report pointed out discrepancies between various agencies while delegating major construction work.

“Different implementation agencies followed different processes for award of major construction works. CPWD awarded most of the venue development contracts on item-rate basis, which is the preferred method according to the CPWD Manual since it is best suited to deviations from the original scope of work,” the report said.

“PWD, GNCTD awarded most of its works on percentage rate tenders. This method of tendering is recommended/suitable only when the major portion of work is on account of items included in the Delhi Schedule of Rates (DSR), which was not the case in most of the venue development works.

“Deficiencies in the process for award of major works related mainly to pre-qualification and eligibility. The pre-qualification of bidders separately for each venue not only introduced arbitrariness and inconsistencies in eligibility criteria, but also delayed the process of award and execution. Considering the similar nature of works for sports venues, a common pre-qualification process should have been conducted.”

The report observed delays in the preparedness of various venues for which “adequate penal action” was not taken.

“There were delays relating to venue development at all stages — planning delays on account of late preparation/approval of venue briefs, return briefs, and concept designs; delays in tendering and contract award; and delays in works execution and handover.

“We found numerous instances of delays in achieving the milestones listed in the contract, for which adequate penal action was not taken, and Extensions of Time (EOTs) were not managed properly,” the report said.

The report found the appointment of Consulting Engineering Services (CES) as the main design consultant for the renovation of five main stadia being “seriously flawed”.

“CPWD was engaged by the Sports Authority of India (SAI) for upgradation/renovation of five competition venues — Jawaharlal Nehru Stadium, Dr. S.P. Mukherjee Stadium, Major Dhyan Chand National Stadium, Indira Gandhi Indoor Stadium, and Dr. Karni Singh Shooting Range, as well as one training venue — DPS, RK Puram. In addition, CPWD renovated the Kadarpur Shooting Range on behalf of CRPF,” it said.

“We found that the appointment of Consulting Engineering Services (CES) as the main design consultant for the five main stadia was seriously flawed. CES was favoured at the evaluation stage by award of marks on ‘concept design’ (which were largely outputs of a previous set of consultancy contracts for ‘condition survey’ awarded to CES).”

The report also found deficiencies in the work carried out at Jawaharlal Nehru Stadium, Shyama Prasad Mukherjee Stadium and Indira Gandhi Stadium.

“In Jawaharlal Nehru Stadium, we found instances of non-adjustment for work not executed, extra payments for work already covered by the scope of the lumpsum contract, and non-levy of compensation for delayed completion of the work of the membrane roof. We found deficiencies in execution of work in the construction of the weightlifting auditorium at JNS, and common areas.

“In Dr. Shyama Prasad Mukherjee Swimming Pool Complex, we found a number of concessions to the contractor, in deviation from the spirit of the lumpsum contract. There were also instances of poor quality of work execution.

“Work at the Indira Gandhi Stadium Complex involved upgradation/construction of venues for cycling, gymnastics and wrestling. We found that a firm, otherwise ineligible for the composite work of the indoor cycling velodrome, was irregularly qualified.”

In the case of the Major Dhyan Chand Stadium, audit revealed dilution of pre-qualification criteria benefiting a particular contractor besides inexplicable delays.

“We also found that the ‘justified’ rates calculated by the CPWD did not truly reflect the market, as there was evidence of much lower rates for components of the main work from outsourced agencies.

“Also, despite additional costs for reduced time period for completion factored into the “justification” process, the project took 37 months, against the stipulated 18 months. There were inexplicable delays, with re-tendering twice along with dilution of bid criteria, in award of the work of the PA system to a firm, which was found ineligible in the first and second rounds of tendering.”

The CAG pointed out that deficiencies in the work at Dr. Karni Singh range and Kadarpur Shooting Range continue even after the completion of the Games.

“There were deficiencies in the quality of works executed, which persisted even after the Games. We also found certain deficiencies in the execution of works at the Kadarpur Shooting Range. The training facilities to be constructed at the CRPF campus, Jharoda Kalan for police sportspersons for participation in CWG-2010, had not been completed,” it said.

The CAG found that consultant for the upgradation of the R.K. Khanna Stadium was irregularly selected.

“The R.K. Khanna Tennis Complex, under the All India Tennis Association, was designated as the competition venue for tennis. We found that the consultant for this upgradation project was irregularly selected on nomination basis.

“However, AITA’s concept of deleting the steel portion from the original contract (on account of volatility in steel prices in 2008) and procuring it directly had its advantages, especially since it did not include any ‘escalation/de-escalation’ clause in the contract.”

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