Politicos, contractors await decision on who will helm the ministry as new circular sparks debate over transparency versus quality
MARGAO
As Chief Minister Pramod Sawant prepares to announce the long-awaited allocation of portfolios to the newly inducted ministers following the recent Cabinet reshuffle tentatively on Monday, all eyes are on one key department — the Public Works Department (PWD).
The PWD portfolio has become the centre of political speculation and public interest. Within the political circles, there is heightened curiosity over whether the Chief Minister will retain the department or hand it over to any of his Cabinet colleagues. Contractors across Goa, on the other hand, are closely watching developments to assess how the leadership change may impact future work opportunities.
Adding to the intrigue is a recent government circular that has reshaped how PWD contracts are awarded. A government circular issued on May 26, 2025, by Principal Chief Engineer U P Parsekar — with official approval dated May 9 — effectively overturns a previous circular from 2021. The earlier directive had mandated automatic rejection of bids quoting more than 20 per cent below the estimated cost for PWD works, regardless of whether the estimate was based on GSR (Goa Schedule of Rates) or otherwise.
The new circular, which came into effect on June 1, 2025, eliminates that cap, allowing contractors to quote any amount below the estimated cost. This shift opens the door for more aggressive bidding, but it has triggered a heated debate within the construction and political fraternity.
While some contractors from South Goa and politicos alike have raised concerns that the removal of the cap could compromise work quality and invite outside players into the State, others see it as a welcome move towards transparency and fair competition.
“With the new circular in force, a contractor no longer needs to lobby with the PWD Minister or his close associates to secure work,” a source familiar with the matter said. “Since most tenders are floated online, bids will now be evaluated based on quoted amounts, making the process less susceptible to favouritism. In the event of a tie in the quoted amount, the engineers have been directed to break the deadlock by going for draw of lots,” sources said.
Sources added: “In the past, with all contractors restricted to quoting only up to 20 per cent below the estimated cost, decision-makers within the PWD reportedly had significant leeway in choosing preferred contractors. The new system, in theory, reduces this discretion.”
As the portfolio distribution unfolds on Monday, stakeholders — from politicians to contractors — will be watching closely to see who takes the helm of the powerful PWD Ministry and how the department’s functioning evolves in the coming days.
New shift not entirely free of bureaucratic influence
Sources have cautioned that the shift may not be entirely free from bureaucratic influence. Even if a contractor wins a tender based on a low bid, they must still secure financial sanction from the Finance Department before work can commence — a process that could still involve pulling the right strings behind the scenes.
That’s not all. Sources in the know say that no contractor can ill afford to antagonise a PWD Minister even assuming he may bag the tender purely based on his quote as per the new circular.
Can new PWD minister roll back circular on bid cap?
Questions are being asked in PWD and political circles whether the new PWD Minister will be able to restore the old circular capping the 20 per cent below cap for contractors to quote the amount for works.
Take note, the new circular was issued by the Principal Chief Engineer U Parsekar when both the Finance and PWD portfolios are held by Chief Minister Pramod Sawant. Many say the PWD Principal Chief Engineer must have issued the circular by keeping the Chief Minister in the loop since Sawant is holding additional charge of the PWD.
A glance at the circular shows that it has been issued with the approval of the Government vide U.O No.334/F dated 09.05.2025.
Old circular dated Aug 30, 2021
Whereas Vide Circular No. 1-8-05/SSW-PWD/Vol-1/2021-22/180 dated 30.08.2021, it was mandated that all the tenders invited by Public Works Department including the tenders pertaining to Roads, Buildings, Electrical/Mechanical, Water Supply and Sewerage works quoted more than 20% below the estimated cost put to tender regardless of whether the estimate is based on GSR on Non GSR or including GSR and Non GSR items shall be rejected
Whereas the above cited Circular was required to be mentioned as condition in the detailed e-tender/open tender/quotation invited by the Works Division
What the new Circular dated May 26, 2025 says
