Pune: PMC Civic Works Quality Under Scanner as Contractors Quote Up to 50% Lower in Tenders
Reported by Mubarak Ansari
Pune, 6th March 2026: The Pune Municipal Corporation (PMC) is planning to introduce restrictions on abnormally low bids submitted by contractors after concerns were raised about the quality of civic works being affected due to heavy undercutting in tenders. The issue was discussed during the PMC Standing Committee meeting held on Thursday.
According to civic officials, contractors competing for municipal works are increasingly submitting bids that are 40 to 50 percent lower than the estimated project cost prepared by the civic administration. Officials say such aggressive bidding often leads to poor quality work and wastage of public funds.
Every year, the PMC floats thousands of tenders for maintenance, repair, and new capital projects. While around ₹2,750 crore is spent annually on maintenance and repair works, new projects worth more than ₹5,500 crore are proposed. The civic administration prepares cost estimates for these projects based on market rates and government-approved schedules before inviting tenders.
However, in the past year, bids ranging from 1 percent to as much as 50–55 percent below the estimated cost have been received. Despite the unusually low quotes, these tenders have often been approved and payments released after the works were executed.
During Thursday’s Standing Committee meeting, corporators from different parties questioned how contractors could undertake projects at rates far below prevailing market prices. Several examples were cited from the day’s agenda where tenders were significantly lower than the estimated cost.
These included a tender for laying a sewer line in Kalyaninagar and Yerawada at 33 percent below the estimate, construction of a shed near the Ghole Road ramp at 24.99 percent lower, construction of a culvert in newly merged villages at 33.78 percent below the estimate, and a project in Wagholi at 23.78 percent lower. Nine other tenders with similarly reduced rates were also approved during the meeting.
PMC Commissioner Naval Kishore Ram acknowledged that extremely low bids could affect the quality of civic works. He stated that the civic administration’s cost estimates are prepared correctly based on prevailing market rates, but contractors are quoting 30 to 50 percent lower rates to secure projects.
The commissioner informed the Standing Committee that the administration will prepare a policy to regulate such bids. Under the proposed system, tenders quoted below a certain limit may be rejected. The policy will be presented before the Standing Committee for approval.
Standing Committee Chairman Shrinath Bhimale said the civic body wants to ensure that municipal works are executed with proper quality. “Very low bids affect the quality of work. A strict policy will be introduced from the new financial year to address this issue, and the commissioner is already working on it,” he said.
Meanwhile, officials noted that the sewerage and road departments have seen the highest number of low-bid tenders. In the sewerage department, it was alleged that a group of contractors often dominates the bidding process, sometimes quoting rates more than 30 percent lower than estimates. Tenders for drain cleaning and monsoon-related works have reportedly been approved at rates more than 50 percent below estimates.
Similar practices have also been observed in departments such as roads, buildings, water supply, stores, solid waste management, and regional offices.
Bhimale added that the civic body is also considering steps to break contractor monopolies in departments such as solid waste management and sewerage. A policy may be introduced to ensure that a single contractor does not receive multiple projects, allowing wider participation in municipal tenders.
